With sales of homes by auction remaining strong, Swindon law firm Lemon&Co is warning of the potential risks of buying a property this way.
Anyone planning on acquiring a home at auction must carry out all of their research on it before the event as, once the hammer comes down, there is a legal commitment between buyer and seller.
Lemon&Co partner David Halfhead said: “At auction you need to be prepared in advance, and that means getting a solicitor to not only check the terms and conditions of the auction sale contract, but also any legal anomalies or liabilities attached to the property that could impact on your plans once you have purchased.
“Imagine buying a property at auction that you plan to renovate only to find you are limited in what you can do because it is, for example, in a conservation area or subject to restrictions which prevent you turning it into your dream home.”
Attempting to back out once the hammer has gone down because subsequent investigations reveal the property was not as expected is likely to cost the buyer their deposit, he said. They could also be liable for any losses incurred by the seller as a result of having to put the property back on the market.
“You can secure a bargain at auction, but having a solicitor carry out the investigative work before the auction will give you all the information you need in advance before making this major commitment,” said David.
Lemon&Co recently secured the Law Society’s new Conveyancing Quality Scheme (CQS) accreditation – the mark of excellence in home-buying.
