Why Do Auction Properties Need A Legal Pack?
Whether you’re buying or selling a property at auction, the key to making the sale is having the legal pack in order. Why is this set of documentation so important to a sale like this one, though? How do you even begin to put one together? This quick guide will answer all of your questions.
Where You See a Legal Pack
For almost every auction you have, you’ll see an online option to download the legal pack. Given that this kind of thing isn’t a choice when you’re just looking at houses on the market today or through an estate agent, you may be a bit confused about what it even means. Rest assured, though, that every home and property auction you find throughout the UK has a legal pack attached to the sale.
What’s in a Legal Pack?
Inside every legal pack, you download or otherwise obtain a copy of, you’ll find lots of information for a purchaser. You’ll want to read through all of it very carefully too, because once the gavel falls, a home purchased at auction becomes a legally binding sale. In most cases, you should read it carefully, and you’ll want your auction conveyancing solicitor to read it fairly carefully too. How much do solicitors charge to read a legal pack? It varies significantly, but typically it’s less than £200. There are auction property solicitors who specialise in this business, though, so you may be able to get a good deal.
Inside each one, you’ll find the auction terms and conditions. You’ll also find the contract itself. In addition to that, you should find any special conditions of the sale listed. You should also see the fairly common property paperwork you might get when you buy a home traditionally. This could include something like the Energy Performance Certificate, the documentation that is related to the title, any search information, form TA6, the TA10 form, and copies of the lease if it’s a leasehold property. Tenanted properties will also have the Assured Shorthold Tenancy form inside. Commercial properties may also include Commercial Property Standard Enquiry (or CPSE) forms.
Where Does the Legal Pack Come From?
In every auction situation, the legal pack is provided by the seller, but it’s usually compiled from the documentation that is created by the seller’s conveyancing solicitor. In the event that the property has been let to a tenant, the seller will also usually include the tenancy agreement they prepared initially. It’s important to note, though, that the legal pack is not the responsibility of a conveyancing solicitor, so if you find something amiss, you’ll certainly want to talk to the auction house to learn more about what you feel is missing or incorrect.
Why Are Legal Packs Important?
Legal packs are required for all auction properties in the UK. In fact, they’re only required for auction properties, not a private treaty sale, meaning you won’t find them in a traditional sale. This comes down to the difference in the way auctions are handled versus the way other property sales are handled. When the auction ends, the buyer is bound by a legal contract to purchase the property. As a result, that same buyer has to have all of the necessary information about a property far ahead of time so they know whether they want to make that commitment.
What If I Need to Create an Auction Legal Pack?
If you’re auctioning off one of your own properties, the best first step toward creating a legal pack is to talk to your conveyancing solicitor. In most cases, it just takes two or three weeks to come up with comprehensive legal packs for auction, but that’s not always true. Often it depends on how fast the local authority can move forward with their searches, and that may vary depending on the council you’re working with.
In most cases, you can expect a legal pack to cost you around £350, but that can vary quite a bit depending on your conveyancing solicitor and what they offer. That may also depend significantly on the property itself. A legal pack for a commercial property could cost you quite a bit more.
The single most important thing you can remember if you’re responsible for compiling a legal pack for a property you’re working to sell is to choose the right help. Your conveyancing solicitor is there to guide you through the process, so you must stay in close contact with the because ultimately, you’re responsible for the documentation.