10 Legal Pitfalls Buyers Face at Auction (and How to Avoid Them)
Thinking of buying a property at auction? Whether you’re a first-time buyer, a seasoned investor, or an overseas purchaser looking to break into the UK property market, auctions offer an exciting (and often fast-paced) route to owning real estate. But with that speed comes risk — especially if you’re not prepared for the legal complexities that can surface after the hammer falls.
At Versus Law, we specialise in helping clients across England navigate the auction process smoothly. In this article, we highlight 10 of the most common legal pitfalls buyers face at auction — and how you can avoid them with the right legal advice.
1. Bidding Without Reviewing the Legal Pack
Many buyers bid first and read later — a costly mistake. The auction legal pack contains crucial documents like the title register, lease (if applicable), and Special Conditions of Sale. Missing or unclear clauses could mean extra costs or liabilities after the auction.
<p”>✅ Avoid it: Always instruct a solicitor to review the legal pack before bidding. Our expert auction solicitors can help →
<h2″>2. Underestimating the Power of Special Conditions
Special Conditions of Sale can override standard auction terms. They often include hidden fees, tight deadlines, or obligations like paying the seller’s legal costs — all of which are binding once you win.
<p”>✅ Avoid it: Have a solicitor go through the special conditions line by line. These clauses can cost thousands if ignored.
3. Relying on Post-Auction Searches
Searches (like local authority, drainage, or environmental) are a key part of due diligence — but at auction, contracts are exchanged immediately. If you haven’t reviewed searches beforehand, it’s too late.
✅ Avoid it: Only bid if searches are included in the pack — or if you’re happy taking the risk. A solicitor can help interpret what’s missing.
4. Buying Leasehold Without Lease Clarity
Auction leaseholds can be minefields. Short leases, unknown ground rents, or missing LPE1 forms can make the property unmortgageable or come with significant hidden costs.
<p”>✅ Avoid it: Understand the lease terms, length, service charges, and whether a lease extension is possible. Short leases under 80 years need urgent attention.
5. Not Understanding Title Defects
<p”>From restrictive covenants and flying freeholds to possessory titles and unregistered land — any of these can affect the use, value, or resale of your auction property.
<p”>✅ Avoid it: Your solicitor should flag any title risks and advise on indemnity insurance or long-term implications.
6. Not Being Ready to Insure Immediately
Once the hammer falls, you’re legally responsible for insuring the property — even before completion.
<p”>✅ Avoid it: Arrange buildings insurance the same day. Your solicitor can confirm who carries the risk and when.
7. Mortgage Not Ready in Time
Many buyers wrongly assume a mortgage can be sorted after the auction. But completion deadlines are often just 14 or 28 days. If your funds aren’t ready, you risk losing your 10% deposit — or worse.
<p”>✅ Avoid it: Get a decision in principle in advance. Consider bridging finance if timing is tight.
8. Buying a Tenanted or Occupied Property Without Clarity
Some properties are sold subject to tenancies, regulated tenants, or even informal occupants — meaning you won’t get vacant possession.
✅ Avoid it: Read the tenancy documents and Special Conditions. If “vacant possession” isn’t guaranteed, you may face delays or legal action to evict.
9. Forgetting About Extra Fees and Taxes
You don’t just pay the winning bid. Auction fees, buyer’s premiums, Stamp Duty Land Tax (SDLT), and even seller legal costs can stack up fast.
✅ Avoid it: Ask your solicitor to provide a full financial breakdown — not just the headline sale price.
10. Assuming You Can Change Buyer Details Later
You can’t easily change the buyer name (e.g. to an SPV or company) after the auction. If the name on the memorandum of sale is wrong, you may breach the contract.
✅ Avoid it: Decide in advance how the property will be held. Always bid using the correct legal entity.
Preparation Is Everything
Buying at auction can be rewarding — but it’s not the time to “wing it.” Every year, we see buyers lose thousands through avoidable mistakes. The good news? With the right legal advice before bidding, most of these pitfalls can be prevented.
At Versus Law, our specialist auction property solicitors act for clients across England — including first-time buyers, cash buyers, overseas investors and companies.
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