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Buying at Munrolock Auctions
Never bid for a property unless you have;
1. Viewed it
2. Surveyed it (if appropriate)
3. Ensured that your solicitors examine the legal documents
4. Full mortgage offer on the property (if funding is required)
Although buying a property at auction can be a nerve-racking experience, it is a very easy and quick method of purchase. Fall of the hammer at the auction denotes exchange of contracts, which is legally binding. There cannot be any gazumping, breakdown in chains, delays, last minute renegotiation of the sale price or just plain human nature with your vendor changing their minds.
- Viewing. We normally try to group viewings with
a dedicated member of staff present who
is familiar with the property and should
be able to give you as much information
as you require.
- Legal Documents. Legal packs are generally available and
should contain the special conditions,
title deeds, office copy entries, leases
(where applicable) and searches. Legal packs will also be available for
inspection in the auction room. You
should make sure that you have read,
understood or given the legal pack to a
solicitor before the auction. When you
bid you will be buying subject to all
documents and terms of contract whether
or not you have read them.
- Finances. If you need to raise a mortgage, it is important that you obtain approval in principal
before the auction day. Most building societies and banks will wish to instruct a
surveyor to prepare a valuation report before making a mortgage offer, so you
need to make your mortgage application as early as possible.
On a successful bid you will need to make a deposit (usually ten percent) or a
minimum amount as specified in the auction catalogue. You will need to pay the
deposit immediately upon successful bid. You will usually need to complete your
purchase up to 28 working days after the
day of the auction so you should make
sure that your lenders are aware of this.
-
Offers. You can make an offer, which should be
in writing by fax or email, for a property
at any time up to the date of the auction
but you should discuss this with us before doing so. If your offer is accepted, you will have
to be a position to exchange contracts
and pay your deposit immediately. The
lot will not be withdrawn from the
auction until you have exchanged
contracts.
- Proxy telephone bidding . If you cannot attend the auction, it may be possible to bid by proxy. We will ask you to complete a proxy
bidding form and a cheque large enough to cover the sale deposit amount; based
upon the largest figure you intend to bid.
- Auction Day.
If you have not attended an auction before be sure to arrive at the venue early to listen to the announcements regarding the conduct of the sale and any changes or alterations to the standard conditions which may affect the purchase of the property. Make sure you bring with you:
- The catalogue
- Cheque book (No cash, credit or debit cards accepted)
- Identification (Driving license/ Passport and utility bill with residential address)
- Your solicitor details
When the hammer falls, you have bought
the lot (a legal and binding contract is
formed at that time). If you are a successful bidder, you will
be asked to complete a purchase form
and attend the solicitor present who will
have a memorandum of sale which you
will be requested to sign. You will pay a
10% deposit by cheque or bankers draft
and provide details of your solicitor.
You will be asked to provide proof of
your identity and address. Upon signing the contract you will be responsible for insuring the
property. The date on which you will be required to pay the balance of the price to complete
the purchase will be stipulated in the contract document and is usually within
twenty-eight days of the sale.
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