Property auction
A property auction is a way of buying or selling property through competitive bidding on a set date, rather than by private agreement via an estate agent. For landlords, auctions can be a route to acquire investment properties quickly, or to dispose of tenanted or problem stock in a transparent, time-bound process.
From a seller-landlord’s perspective, auction sales are usually contractually binding at the fall of the hammer. The buyer exchanges contracts immediately, pays a deposit often 10% and must complete within a fixed period for example 28 days. This can be attractive if you want certainty, including when selling with tenants in situ, but you may achieve a lower price than via the open market.
From a buyer-landlord’s perspective, auctions can offer below-market opportunities, but require careful due diligence:
Checking the legal pack, for example title, tenancies, licences, rent arrears, disputes.
Assessing compliance with rental standards and any costs needed to meet Renters’ Rights Act obligations.
Understanding whether existing tenancies will continue and on what terms.
Once you buy at auction, you inherit the legal position “warts and all”, including tenants’ rights, repair liabilities and any enforcement risk, so professional legal advice before bidding is strongly recommended.
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