If you purchase a house from an estate agent on the open market, then there is no need for a legal pack. This is a specific feature of buying and selling by auction and that means it may not be immediately familiar if you are not experienced with the auction world. It is not something you can ignore, however, as it should contain much of the essential information you need to know.
What is an auction legal pack?
People who buy at auction need all relevant information before they make an offer because after they bid, they are bound by the reservation agreement or contract and cannot walk away. An auction legal pack collects all the documents and information relevant to a house sale in one place so the buyer is fully informed. It is similar to assembling the contract papers for a property being sold privately, but private sales in England allow both sides to walk away at any time before contracts are exchanged.
Possible content of an auction legal pack includes:
. Terms and conditions of auction.
. Reservation contract or agreement.
. Any special conditions.
. Title register, title plan and supplementary documents.
. Property information form (TA6).
. Fittings and contents form (TA10). This isn’t necessary if sold as seen.
. Energy performance certificate (EPC).
. Building control and planning permission documentation where applicable.
. Lease and leasehold information form for leasehold properties.
. Assured shorthold tenancy (AST) agreement for tenanted properties.
. Commercial properties standard enquiries (CPSE) forms for commercial properties.
This is not the same as post-auction conveyancing, which involves meeting all of the conditions of auction before the property is actually transferred on an agreed completion date.
Who is responsible for the auction legal pack?
Responsibility for compiling an auction legal pack falls to the seller, who must fill in all the relative forms for inclusion. As this can be a lengthy and complex process, most sellers will utilise the assistance of solicitors such as those at https://www.parachutelaw.co.uk/ Parachute Law, but the solicitor will not be able to work effectively unless the seller provides timely and accurate information. Ascot solicitors can be hard to find and you need to ensure that you have competent and trustworthy representation. Not all solicitors, even if they specialise in conveyancing, will be fully-informed on the rapidly changing processes and obligations at property auctions.
The overall costs of putting your auction legal pack together will depend not just upon your choice of solicitor, but also the type of property to be sold. Standard residential homes will be cheaper than commercial property. Remember to include VAT in your calculations.
Benefits of an auction legal pack
Auction legal packs serve a simple yet important role, as they allow everything you need to be collected together. Buyers can be fully informed about a prospective property before they make a commitment by bidding at auction. As the auction legal pack includes all conditions of sale, including expected timelines, it allows both buyer and seller to move quickly and easily once the offer has been accepted. It sets realistic expectations and can give both sides confidence in the overall process.
Familiarising yourself with the requirements of an auction legal pack is essential if you want to buy or sell a house at auction. If you are a seller, then it is your responsibility to ensure it is completed with all the information and documents that the buyer could need. If you are a buyer, then you can become fully informed and set realistic expectations before you make your offer and enter into a legal commitment. Auction legal packs simplify things for everyone involved.