We act for a number of clients buying properties at auction each year and for the most part these transactions proceed without nasty surprises.
However, before you turn up to the auction room with grand designs on hunting for a bargain there are a number of differences between buying a house at auction and buying one in a private sale. These include the following:
Below is a picture of a property bought in Babbacombe in a stunning location.
The locals knew that the cliff had been slowly washed away for years and that the builder who owned it had been refused permission to develop because it was too dangerously situated near the edge of the cliff.
However a retired police officer bought it at auction in February 2010 successfully bidding £154,500 over the telephone without having a survey and 6 days later it looked like this:
As you can see, half of it fell down the cliff in a landslide and was washed away in the sea.
After a legal battle the seller was granted a legal charge over the buyer’s home by the Court to secure payment for the auction property together with interest at 8%.
This case serves to highlight the need to properly carry out all prudent investigations before committing yourself to the purchase of a property.
The above information is for general guidance and in part forms the opinion of the author. It is based on the law as at the date this article was written. It should not be relied upon in part or in whole as a substitute for independent legal advice.
If you are considering purchasing a property at auction then please contact the writer, Adam Corcoran, who will be pleased to advise you in light of your personal circumstances. We cannot accept any liability to third parties for the incorrect interpretation or application of the information contained in this document. If you require further advice please contact Adam Corcoran above who will be able to assist you.
|cookielawinfo-checkbox-advertisement||1 year||Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .|
|cookielawinfo-checkbox-analytics||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".|
|cookielawinfo-checkbox-functional||11 months||The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".|
|cookielawinfo-checkbox-necessary||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".|
|cookielawinfo-checkbox-others||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.|
|cookielawinfo-checkbox-performance||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".|
|_ga||2 years||The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.|
|_ga_X54Z5K1MMY||2 years||This cookie is installed by Google Analytics.|
|_gat_gtag_UA_162537196_1||1 minute||Set by Google to distinguish users.|
|_gid||1 day||Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.|
|_fbp||3 months||This cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.|
|fr||3 months||Facebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.|