What Legal Checks Should You Do BEFORE Auction Day?

Buying a property at auction can be an exciting opportunity – often offering quicker completion times and the chance to secure a bargain. However, auction purchases come with significant legal commitments and risks if you’re not fully prepared.

Once the hammer falls, you are legally bound to complete the purchase. There’s no cooling-off period. That’s why carrying out thorough legal checks before auction day is essential.

At Attwells Solicitors, we regularly help buyers review auction properties and avoid costly surprises. Here’s what you should always check in advance.

Review the Legal Pack Carefully

The seller’s solicitor will provide a legal pack for each auction property. This usually includes:

• Title documents (Official Copies of the Register)
• Special Conditions of Sale
• Searches (local authority, drainage, environmental, etc.)
• Lease details (if leasehold)
• Planning permissions and building regulations (if available)

This pack forms the legal basis of the sale. Any unusual terms or restrictions will usually be hidden here.

Common red flags can include:

• Short lease lengths
• High service charges or ground rent
• Onerous special conditions (such as extra fees payable by the buyer)
• Missing documents or outdated searches

Having a solicitor review this pack can help you fully understand what you’re committing to.

Check the Title for Restrictions and Issues

Title documents reveal who owns the property and any restrictions affecting it. These might include:

• Rights of way or access issues
• Restrictive covenants (for example, limits on alterations or usage)
• Charges or mortgages that need to be cleared

Some auction properties have complicated titles which could impact future resale or mortgageability. A legal professional can identify potential problems early and explain the risks.

Understand the Special Conditions of Sale

Unlike standard property purchases, auction properties often include Special Conditions of Sale which can shift extra costs onto the buyer.

These might require you to pay:

• The seller’s legal fees
• Search costs
• Management company fees
• Additional administration charges

In some cases, these can add thousands of pounds to the purchase price. Always check these carefully so there are no surprises after the auction.

Investigate Planning and Building Regulation Compliance

If the property has been altered, extended, or converted, it’s important to ensure:

• Planning permission was obtained where required
• Building regulations approval was granted and signed off
• Lack of compliance could lead to enforcement action by the local authority or costly remedial work.

Not all legal packs include full documentation, so it’s important to flag any gaps.

For Leasehold Properties – Review the Lease in Detail

If the property is leasehold, key things to check include:

• Remaining lease term
• Ground rent amount and increases
• Service charge history
• Any restrictions on subletting or alterations

Short leases or escalating ground rent clauses can seriously affect the property’s value and your ability to sell or remortgage in the future.

Consider Whether the Property is Mortgageable

Some auction properties are:

• Unmortgageable due to condition
• Subject to legal defects
• Non-standard construction

If you’re planning to use a mortgage, your lender will carry out their own checks, but often this happens too late. Getting legal advice early helps you assess whether finance is likely to be approved.

Carry Out Your Own Searches (If needed)

Sometimes auction packs contain outdated or incomplete searches or none at all.

Your solicitor may recommend:

• Updated local authority searches
• Flood risk reports
• Environmental checks

These can highlight issues such as:

• Planned developments nearby
• Road schemes
• Flood risk zones

Why Legal Advice Before Auction is So Important

Auction properties are sold on a “buyer beware” basis. Once you’ve exchanged contracts (which happens immediately at the auction), you’re committed, even if serious legal problems come to light later.

Spending a small amount on legal checks before auction day can save:

• Thousands of pounds in unexpected costs
• Stress and delays
• Risk of buying an unsellable property

How Attwells Solicitors Can Help

At Attwells Solicitors, we offer specialist auction property legal reviews, including:

• Full legal pack checks
• Clear explanation of risks and costs
• Advice on leasehold issues
• Support with fast completions after auction

We help ensure you go into auction day informed and confident – Please call our Head Office on 01473 229888 for an Auction quote or click the button below.