We would strongly recommend that you seek advice from a solicitor and pay for the legal pack to be reviewed. A solicitor will be able to consider the legal pack and provide you with professional advice and guidance.
They will consider the documents in the pack and tell you if there are any concerns in relation to those documents. Also, and maybe more importantly, they will tell you what documents are missing from the pack and what risk or risks that poses.
What are the other fees involved when buying a property at auction?
As a buyer, you should be aware that the amount you pay to the Seller may not just be the purchase price. You are likely to have to pay other costs as well. Each transaction is different:
Contribution to the Seller Costs – It is very common for a seller to seek a refund from the Buyer for some or all of the Seller’s legal costs.
Buyers Administration Fee – This is a fee payable to the auctioneers on exchange of contracts.
Searches – It is very common for Sellers to require the Buyer to refund the cost of searches. This payment is made on completion as part of the completion monies due.
VAT – If the Seller has opted to charge VAT on the property, VAT will be payable in addition to the purchase price. This is not generally relevant to houses, flats or apartments.
Rent Arrears – For properties that are subject to a tenancy agreement, or another form of agreements that permits occupants, there may be a liability for the Buyer to pay any arrears on completion.
Stamp Duty – If the purchase price of the property is above the stamp duty threshold, stamp duty land tax or welsh land tax will be payable after completion.
This is not an exhaustive list. Our experienced solicitors at AFG Law can review the documents for you prior to the auction and provide you with a specific list of costs that will be payable for your property.
Yes, you will still need a solicitor after you have exchanged contracts to buy a property at auction. You will need a solicitor to handle the completion process for you including the payment of funds for the purchase price.