Friday June 16, 2023
An auction legal pack is a set of documents that contain information that a potential buyer will want to know about a property before bidding.
Failing to both examine and understand the contents of a legal pack is a risk for buyers at auction and may result in substantial financial losses. Keep reading to find out what’s included in an auction legal pack and why you need to review it.
While auction legal packs can be extremely beneficial to any potential bidders, there is no legal requirement for the vendor to produce a comprehensive legal pack. There will always be a legal pack for a property in auction, but the contents of it will vary for each and every property. There is no legal requirement that the auction legal pack contain specific documents.
A Seller should provide a comprehensive auction legal pack as they will give more comfort and confidence to a buyer the more information that is disclosed. That said, a Seller is unlikely to include in an auction pack a document which discloses negative issues affecting a property.
A Buyer should always be wary of an auction legal pack that contains very few documents.
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Yes, theoretically a property can be sold at auction without a comprehensive legal pack – the property can be “sold as seen”, but this is unlikely.
An auction legal pack will contain something called “Special Conditions”. These are specific conditions drafted by the Seller’s solicitor in relation to the property to be sold. A property in auction will always need a set of Special Conditions, so there should always be an auction legal pack which at the very least contains these conditions.
The Special Conditions form part of the contract between the Buyer and the Seller and set out the terms upon which the Property will be sold.
The auction legal pack is usually prepared by a Seller’s solicitor.
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The auction legal pack is a compilation of important documents relating to the property being sold, and it will usually include some or all of the following:
The appropriate business property forms are Commercial Property Standard Enquiries:
Tenancy Information:
An auction legal pack should contain copies of any leases or tenancy agreements for occupiers of the property. In addition, if there are any other documents (such as a Licence to Assign or Sublet) these documents should also be included.
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Usually, auction legal packs will be available to all prospective buyers through the auctioneers website.
Usually, each Lot is listed separately. You can access the auction legal pack by clicking on the Lot Number, and that will take you to the pack. Some auctions will allow you to register for updates. This is worthwhile doing as they will generally notify you as and when an auction pack or an additional document is uploaded.
Do be prepared as some auctioneers require you to make a payment before they will release an auction legal pack. This is usually a nominal fee, but does mean it can take longer to obtain a copy of the auction legal pack.
At AFG Law, we are specialists at reviewing and creating auction legal packs. If you wish to sell your property or land at auction, or you wish to buy a property at auction, get in touch with our experienced team of solicitors to see how we can help you.
We offer a full range of legal services for individuals and businesses alike.
Many of our services are provided UK-wide, with our physical offices located in Bolton and Bury.