The property auction day

Buying auction property

You should arrive early with the required forms of ID and complete any registration requirements. Your solicitor or surveyor may be allowed to attend on your behalf.

Things to bring with you:

• Cheque book with at least one cheque for each lot you are bidding on or banker’s draft. You will need to verify which method of payment is acceptable, with the auction house. Please note neither cash nor credit or debit cards are accepted.
• Identification – either your driving licence or passport (photo ID) and a recent utility bill or bank statement (proof of address).
• Your solicitor's details.

On arrival

Pick up an addendum sheet, which lists any late alterations, guide price changes, withdrawals or prior sales. It is important that you read this document before bidding to see if there is any significant new information. The addendum forms part of the contract of sale. Then just take a seat.

Start of auction

The auction will start promptly at the time printed in the catalogue. The auctioneer will make a number of announcements about the auction procedure. The auctioneer's pre-sale announcements are summarised at the beginning of their catalogue. They will also announce withdrawn and pre-sold lots. Lots are almost always offered in the order in which they appear in the catalogue.

Prior sales and unsold lots

It is quite acceptable to place an offer on a property prior to the auction date itself but only if you are in a position to complete the sale. The vendor is under no obligation to withdraw the property from the auction until contracts have been exchanged.

Vendors may also have placed a reserve price on their property. The auctioneer will announce whether this has been reached at the end of the bidding. Again, the vendor may be willing to accept a bid after the auction, in which case you should leave your details with the auctioneer who will discuss them with the vendor.

Bidding

• The auctioneer will announce each lot and refer to any last minute changes.
• The current lot number is usually displayed on a screen next to the auctioneer
• The auctioneer will invite bids at a particular level and when bidding, make yourself clearly visible to the auctioneer and indicate your bid with a nod of the head or raised hand. Subtle twitches and winks will not be picked up!
• The auctioneer will regulate the bidding increments until all the bidding is finished. He will give everyone a few moments warning before bringing down his gavel at which point the property is sold to the highest bidder. As soon as the gavel comes down a legal and binding contract is formed between the vendor and the winning bidder.
• If you are the successful bidder at the fall of the gavel, a member of the auctioneer team will approach you to complete the paperwork. Remember a deposit of 10% will be due immediately, and standard procedure is for the remaining 90% to be submitted within four weeks.
• Remember that before the auction, you should decide on your budget and stick to it. If the bidding goes above your limit, stop bidding and start investigating the next auction opportunity.

If you buy a property you will be asked to:

• Fill out a purchaser's slip and provide identification – in the case of individuals, the auctioneer will need to verify both your name (i.e. passport or driving licence) and address (i.e. recent utility bill or bank statement).
• Provide the name, address and telephone number of the person or company if you are bidding on behalf of somebody else.
• Supply the name and address of your solicitor.
• Provide a cheque, drawn on a UK clearing bank to cover the deposit (normally 10% of the purchase price and subject to the stipulated minimum amount). Cheques will be banked the same or next day so you should ensure that there are sufficient funds available. It is part of your legal obligation to pay the deposit on the day of the auction if a lot is knocked down to you.
• Pay a buyer's fee for each lot purchased in addition to the deposit. Details are printed in the catalogue or available on the auctioneer’s website.

You will be given your part of the contract and attached to the contract will be a copy of the "notices" and "general conditions of sale" which contain the auctioneer’s standard terms of sale, which are also printed in their catalogue. The special conditions of sale are contractual terms that are specific to each lot offered. These are not printed in the catalogue but will also be attached to the contract. Your part of the contract should be passed to your solicitor. The auctioneer will retain the part which you have signed to send to the vendor's solicitor. Completion will usually take place 20 working days later (or as varied by the special conditions of sale) under the supervision of your solicitor. Please do not leave the auction room without taking your signed contract. As soon as the hammer falls there is a binding contract of sale. The property is at your insurable risk from this point. Please ensure that you arrange your building insurance immediately after the sale.

Please note: Properties are not sold "subject to contract", "subject to finance" or "subject to survey" when bought at auction. They are sold unconditionally. As a successful bidder, you are legally obliged to complete the sale.

Remember, after purchasing a property, contact an insurance broker to arrange insurance cover. You usually have up to 28 days after the auction date to complete the purchase. However it can be as little as 10 days.

TOP TIP... New to auctions? Sit in on one first before you join in - bidding isn't for the fainthearted!