The Challenge
We recently acted for a client purchasing a residential property at auction. Auction purchases often come with tight deadlines and additional costs, so preparation is key. As we approached completion, the seller’s solicitor requested that our client pay the seller’s legal fees and auction costs – something that is often typical in auction transactions.
Our Approach
Before completion, we carefully reviewed the auction pack and the Conditions of Sale. Surprisingly, we noticed that the Special Conditions did not include any obligation for the buyer to pay the seller’s legal fees or auction costs. This was unusual, as these costs are commonly included in auction purchases.
The Outcome
We challenged the seller’s solicitor, pointing out that these fees were not payable under the agreed terms. As a result, our client avoided paying more than £5,800 in unnecessary costs – a significant saving that highlights the importance of thorough legal review.
Top Tips for Auction Buyers
- Get a Solicitor to Review the Auction Pack Before You Bid
This ensures you understand all obligations and avoid unexpected costs. - Make Enquiries Early
Ensure your preferred solicitor has time and capacity to review documents ahead of the auction date - Check the Special Conditions of Sale Carefully
These often contain additional obligations, such as paying the seller’s legal fees or other expenses.
