land

Land Auctions


How to buy from land auctions in the UK. The land that is offered for sale at auction tends to be large agricultural properties although smaller lots do sometimes become available. Land auctions are competitively priced as they create a free and fair competition among interested bidders but it is worth remembering that the overriding principal governing any auction is one of caveat emptor – let the buyer beware! Auctions are often seen by sellers as a way to dispose of difficult pieces of land that have failed to sell through more conventional means and once the auctioneers hammer has fallen the successful bidder is deemed to have entered into a contract. They are then legally bound to pay the final sale price (usually 10% of the price on the day of the auction with the remaining 90% being payable 28 days later).



It is therefore wise to take the time to view the property and have all necessary surveys carried out well before the auction date. This is not always easy as the auction catalogue may only be published a few weeks before the auction but you should never feel pressured into bidding for a lot before you have satisfied yourself that it is suitable for your purposes.



The auctioneer’s catalogue provides a description of each property, details on how to arrange a viewing and the General Conditions of Sale. The auctioneer prepares the Conditions, stating the basis on which the auction will be carried out. The Conditions should be read thoroughly prior to the auction as they set out how and when the successful bidder will have to pay the final sale price and will also give details of any additional fees that might be payable.



The catalogue will also include a guide price for each lot. This is ostensibly an indication of the price that each property is expected obtain. In reality the guide price may be set unrealistically low in order to stimulate interest in a lot or be set too high to create the impression that the property is worth more than its true value. It is always best to arrive at your own valuation of the land well before the auction and then stick to it. May people find it all too easy to be caught up in the excitement of the auction and end up bidding more than they really think the land is worth.



As with any land purchase it is wise to consult a solicitor prior to buying land at auction. Provide your solicitor with the auction details and the auction brochure along with any additional information you have. The auctioneer (or the vendor’s solicitor) will be able to provide your solicitor with a legal pack containing documents pertinent to the lot you are interested in. There is sometimes a charge made for the provision of the pack but a thorough examination of the relevant legal documents is essential if you are going to be able to buy with confidence.



Buy wisely and you could save money, but it is not without risk.