If you are considering purchasing a property at an Auction and your bid is accepted, you will be requested to sign the contract immediately and give a 10% deposit. You are then bound by the contract and it is assumed that you have checked the title and taken all the necessary steps to ensure the property is in order. If you are considering making a bid on a property at an auction, it is vitally important that you follow these steps:
- You must get your Solicitor to check the title to ensure that there are no problems with the title. Your solicitor will investigate the title and ensure you are getting good and marketable title. It is assumed when you attend at an auction that you have checked the title. If problems arise with the title after your bid has been accepted, it is too late to pull of out the purchase.
- You must have the property surveyed because if any structural problems arise after you have completed the purchase you have no recourse to the Vendors.
- If you are getting a mortgage from a Bank, you must ensure that you have the loan approval in place before you make bid at in Auction before you make a bid. As mentioned earlier if your bid is accepted at auction you are bound to complete the purchase so you need to be certain you have the funds. If you cannot get a mortgage after your bid has been accepted you could be sued for loss suffered by the Vendors and they could also seek other court orders.