Find out what happens after a property auction. Learn the legal steps, why reading the legal pack matters, and what to do if completion is delayed.
What Happens After A Property Auction
Auction day is always exciting. The bidding is fast, and the energy is high. But what happens after the hammer falls? Many people are unsure about the next steps. Here’s what you need to know after a property auction.
Immediate Steps After the Auction
When the hammer falls, the sale is legally binding. You exchange contracts right away. The buyer pays a deposit, usually 10% of the purchase price. Both buyer and seller must complete the sale by the agreed date. This is often within 28 days.
Why Reading the Legal Pack Matters
Before you bid, always read the legal pack carefully. The legal pack has all the important documents—title deeds, searches, and special conditions. It also lists any extra costs or fees. If you miss something, you could face unexpected bills after the auction. Take your time and ask your solicitor if you’re unsure.
What to Expect Before Completion
After the auction, the buyer needs to get their finances ready. Both parties work with their solicitors to handle the paperwork. Stay organised and respond quickly to any requests. Delays can cause problems for everyone involved.
What If Completion is Delayed?
If the buyer does not complete by the agreed date, there can be serious consequences. The buyer might lose their deposit. The seller can claim extra costs or even re-sell the property. If the property sells for less, the original buyer could be asked to pay the difference. It’s vital to have your funds in place and be ready for completion.
Wrapping Up
The time after a property auction moves quickly. Make sure you read every document, check for extra costs, and stay in close contact with your solicitor.
If you have questions about property auctions, I’m happy to help. Feel free to get in touch or sign up for my newsletter.
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