The Legal Essentials of Selling Property at Auction: What You Must Know

Selling property at auction is becoming an increasingly popular way to achieve a quick and efficient sale. However, while the process may seem straightforward, there are critical legal considerations that sellers must understand before listing their property.

The modern method of auction (MMoA) offers greater flexibility than traditional auctions, allowing buyers more time to arrange finances and complete their purchase. However, while this can result in higher bids and a larger pool of buyers, it also introduces specific legal obligations that sellers need to be aware of.

Ensuring compliance with legal requirements is crucial to avoid complications and securing a smooth sale.

Sellers who fail to understand these legal aspects may face delays, withdrawn bids, or even financial losses. This guide covers everything UK home sellers need to know about the legal essentials of selling property through the modern method of auction, providing practical insights and expert advice to help you navigate the process successfully.

At The Auction Experts, we specialise in guiding sellers through every step of the auction process, ensuring your sale is legally secure and maximises the best possible price. If you are considering selling at auction, understanding the legal fundamentals is the first step to a successful and stress-free experience.

Key Legal Differences from Traditional Auctions:

• Conditional Sale: The winning bidder has a set timeframe to complete the purchase rather than exchanging contracts immediately.
• Reservation Fee: Buyers pay a non-refundable fee to secure the property, ensuring commitment to the sale.
• Extended Completion Period: Buyers typically have 56 days to finalise their purchase, reducing pressure.

Sellers should be aware of these differences, as they impact the overall timeline of the sale and the financial obligations of both parties.

Legal Packs: What Sellers Must Prepare

A legal pack is one of the most important documents when preparing your property for the auction process. It provides potential buyers with key legal information about the property, helping them make an informed decision before bidding. A well-prepared legal pack increases trust and transparency, encouraging higher bids and reducing the risk of sale fall-throughs.

What Should be Included in a Legal Pack?

1. Title Deeds

Title deeds confirm the legal ownership of the property and provide a historical record of past ownership. If the property is registered with the Land Registry, a copy of the Title Register and Title Plan will be required. If the property is unregistered, original deeds must be obtained. Missing or incomplete title documents can delay the auction process, so sellers should ensure they have these in order before listing the property.

2. Energy Performance Certificate (EPC)

An Energy Performance Certificate (EPC) is a legal requirement for selling a property in the UK. It rates the energy efficiency of a home on a scale from A (most efficient) to G (least efficient) and provides recommendations for improvements. If the EPC is missing or expired, sellers must obtain a new one before the auction. A property with a higher energy rating may attract more interest, particularly from buyers seeking lower running costs.

3. Local Authority Searches

Local authority searches provide essential information about planning permissions, restrictions, and potential developments that could impact the property. These searches will reveal whether the property is subject to conservation area restrictions, listed building status, or planned infrastructure projects that could affect its value. While these searches are typically carried out by buyers during private sales, providing them upfront in an auction setting speeds up the process and builds buyer confidence.

4. Property Information Form (TA6)

The TA6 Property Information Form is a legally required document that provides key details about the property. It covers:

• Boundaries – Who is responsible for fences, hedges, and walls.
• Disputes and Complaints – Any ongoing or past legal disputes with neighbours.
• Alterations and Building Work – Details of any modifications, extensions, or structural work.
• Utilities and Services – Information on water supply, drainage, and electricity providers.
• Insurance Claims – A history of past claims related to flooding, subsidence, or other issues.

Completing this form accurately is crucial. Any false or misleading information could lead to legal disputes post-sale.

5. Fixtures & Fittings Form (TA10)

The TA10 Fixtures and Fittings Form specifies what is included in the sale. Buyers need clarity on whether items such as white goods, built-in wardrobes, fireplaces, or garden sheds are part of the transaction. Misunderstandings about inclusions can lead to post-sale disputes, so it is best to be as detailed as possible.

6. Special Conditions of Sale

This section outlines any unique terms that apply to the property sale. These could include:

• Additional fees payable by the buyer (e.g., auction fees or service charges).
• Specific completion deadlines that differ from standard timelines.
• Rights of way, access agreements, or restrictive covenants affecting the property.

Including clear and legally binding special conditions of sale helps prevent legal issues after the auction has concluded.

Sellers should ensure their legal pack is completed and made available before the auction begins. Any missing or inaccurate information can deter potential bidders or cause delays in completing the sale.

At The Auction Experts, we work closely with experienced solicitors to help sellers compile a legally compliant and comprehensive auction pack.

Legal Pitfalls to Avoid When Selling at Auction

While auctions offer a streamlined and transparent sales process, sellers should be aware of potential legal risks.

• Failing to Disclose Property Issues – Sellers are legally required to disclose any known problems with the property. Hiding defects could lead to legal action from the buyer.
• Incomplete or Inaccurate Legal Pack – Missing documents or incorrect information can cause buyers to withdraw, delaying the sale.
• Unrealistic Reserve Price – Setting the reserve price too high may result in the property failing to sell, while setting it too low could mean selling below market value.

By ensuring transparency and working with an experienced auction house like The Auction Experts, sellers can minimise these risks and increase the likelihood of a successful sale.

Legal Essentials Recap: What Every Seller Must Know

• The legal pack must be prepared before listing the property.
• The reservation fee is a non-refundable charge paid by the buyer to secure the sale.
• Buyers have 56 days to complete the purchase, unlike traditional auctions with immediate exchange.
• All property issues must be disclosed to avoid legal disputes.
• A solicitor is required to handle the legal aspects of the transaction.

Get Expert Auction Guidance

Understanding the legal aspects of selling property at auction is crucial for a successful and stress-free sale. From preparing a comprehensive legal pack to managing completion timelines, sellers must ensure full compliance with legal requirements.

At The Auction Experts, we specialise in helping home sellers navigate the auction process, ensuring legal security and maximising sale prices. Our experienced team will guide you every step of the way to achieve the best possible outcome for your property sale.

Contact us on 0330 179 8180 or email hello@theauctionexperts.co.uk to speak with one of our experts today.

In the meantime, we’ve answered some of your common questions about auction legal essentials.

Frequently Asked Questions

Can I sell a property with outstanding legal issues at auction?

Yes, but all legal issues must be disclosed in the legal pack. Some buyers may still bid, but serious legal complications could deter interest.

What happens if the winning bidder fails to complete the purchase?

The seller keeps the reservation fee, and the property can be relisted or offered to other bidders.

Do I need a solicitor to sell a property via auction?

Yes, a solicitor is required to prepare the legal pack and handle the sale’s legal aspects.

What is the main legal difference between modern and traditional auctions?

Modern auctions allow 56 days for completion, while traditional auctions require immediate exchange of contracts.

Is the reservation fee the same as a deposit?

No. The reservation fee is separate and non-refundable, while the deposit (paid later) is part of the purchase price.

How do I get started with The Auction Experts?

Simply call us on 0330 179 8180 or email hello@theauctionexperts.co.uk - we’re happy to help!