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20 November 2015

Whether you’re a seasoned landlord or someone starting out to build a property portfolio, Phillip Arnold Auctions recommend that before making a bid on a property at auction both the buyer and their solicitor check the legal pack.

The legal pack does what it says on the tin – all the important legal documents that bidders need to be aware of in relation to the property or land are in one handy pack for review.

The pack is put together by the vendor’s solicitor – so if someone wants to sell at an auction this is something they will have to organise to be done in good time before the auction in which their property is going up for sale.

Typically the legal pack will contain details of:

- special conditions of sale
- leases
- tenancy agreements
- local authority searches
- details on the title
- planning permissions

By reading and understanding these documents, it will give potential buyers more confidence to bid and know what they are buying.

If the intention is to extend the property or change its use once it’s bought, the pack will help make buyers aware of any restrictive covenants that may prevent carrying out certain types of work on the property or certain uses the building is allowed to be used for, or not as the case may be.

Julie Gooding, Operations Director at Phillip Arnold Auctions, said: “Auctioneers can provide the legal packs for purchasers and usually they can be posted or downloaded from their websites. Packs are usually ready two to three weeks prior to the auction and at this time it’s worth visiting the property to get a look at the location and condition. Auctioneers often have specific dates and times for block viewings for all interested bidders, so check these dates with them for the properties on which buyers intend to bid on.

“So, in summary, remember when the gavel falls a winning bid is a binding contract that comes into force straightaway. Buyers need to make sure they do all of their research before they bid. And that includes reading the legal pack.”