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Purchasing a residential property at auction? Familiarise yourself with the legal pack

Buying a residential property at auction can be an exciting opportunity to secure a new home at a competitive price.

However, it also comes with risks, particularly if you are unfamiliar with the process.

One of the most important aspects to consider before auction day is the legal pack.

Understanding what is included in the legal pack and what might be missing will help you make that next step towards purchasing.

What is a legal pack?

A legal pack is a collection of documents provided by the auction house or the seller’s solicitor before the auction.

It contains vital information about the property that could affect your decision to bid.

Reviewing the legal pack thoroughly before auction day can reveal potential issues that might not be apparent during a property viewing.

Key documents in a legal pack

Here are some of the most important documents you’re likely to find in a legal pack:

Title documents

Title documents show the legal ownership of the property. These documents will confirm that the seller has the right to sell the property and whether there are any restrictions or title defects that could affect your ownership.

Special conditions of sale

These are additional terms set by the seller that go beyond the standard auction conditions.

They might include requirements for a quicker completion or obligations for the buyer to cover certain costs. Failing to understand these could lead to unexpected expenses.

Searches

Local authority searches and other relevant searches (such as environmental or drainage searches) provide information about issues like planning permissions, potential future developments, or flood risks.

They help assess any external factors that could affect the property’s value or your ability to use it as intended.

Leasehold information (if applicable)

If the property is leasehold, the legal pack should include the lease agreement.

You will need to review the lease terms carefully, including the length of the lease, ground rent, service charges, and any restrictions on property use or alterations.

Planning permissions and building regulations certificates

If the property has been extended or altered, the legal pack should include documentation confirming that these works were carried out with the necessary permissions and comply with building regulations.

Without this, you could be liable for rectifying any non-compliant work.

Energy Performance Certificate (EPC)

This document rates the property’s energy efficiency.

It is a legal requirement and can also give you an idea of potential future energy costs or necessary improvements.

Tenancy agreements (if applicable)

If the property is currently tenanted, the legal pack should include details of the tenancy agreement, including rent, tenant rights, and the terms of the lease.

Why professional advice is needed

While it is possible to review the legal pack yourself, it is easy to overlook details that could have financial or legal implications.

This is where seeking professional advice becomes invaluable. As solicitors experienced in property law, we can:

Identify potential red flags and title defects

Explain complex terms and the process

Raise enquiries on your behalf

Provide peace of mind

Ready to bid? We’re here to help

Contact our team of experienced property solicitors today to discuss your auction property plans and how we can assist you in making a confident purchase.

Elizabeth Jennings

Director - Commercial Property & Charities

I joined Mander Hadley in 2004, qualified as a solicitor in 2006 and have focussed on commercial law throughout. I am also a member of Coventry and Warwickshire First and Warwickshire Law Society.

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