When buying a property at auction, the auction legal pack is one of the most important things to review before bidding. This document contains key legal information about the property and can help you avoid unexpected surprises after the hammer falls.
Understanding legal packs is crucial to making informed decisions whether you’re a seasoned investor or a first-time buyer. This guide will explain what they include, why they matter, and how to review them effectively.
What is an Auction Legal Pack?
An auction legal pack is a collection of documents prepared by the seller’s solicitor that provide essential legal details about the property. Potential buyers are given this pack before the auction to conduct due diligence.
The legal pack gives you insight into potential property issues, helping you decide whether it’s the right investment. Failing to check the legal pack properly could mean inheriting unexpected liabilities, restrictions, or costs.
What’s Included in a Legal Pack?
A standard auction legal pack typically contains the following:
1. Special Conditions of Sale
This document outlines any extra conditions the seller has added to the standard auction contract. These could include:
• A requirement to pay the seller’s legal fees
• Shortened (or extended) completion deadlines
• Additional charges beyond the purchase price
• It’s essential to read these carefully, as they can significantly impact the cost and timeline of your purchase.
2. Title Documents
This includes the Title Register and Title Plan from the Land Registry, which confirm who owns the property and any restrictions. Look out for:
• Covenants (restrictions on what you can do with the property)
• Easements (rights of way or shared access)
• Charges or mortgages registered against the property
• If the property is unregistered, additional documents will be provided to prove ownership.
3. Local Authority Searches
These reveal important details about the property, such as:
• Planning permissions and building regulations
• Environmental risks (e.g., flood zones or contaminated land)Road adoption status (whether a road is maintained by the council or privately)
4. Property Information Form (TA6) and Fixtures & Fittings Form (TA10)
The TA6 form provides general information about the property, including:
• Boundaries
• Disputes with neighbours
• Any alterations made to the property
• The TA10 form lists what’s included in the sale, such as kitchen appliances, light fixtures, and garden features.
5. Leasehold Information (if applicable)
If the property is leasehold, the pack should contain:
• The Lease Agreement (showing how many years remain)
• Details of service charges and ground rent
• Any restrictions on subletting or alterations
• Short leases can make financing difficult, so it’s crucial to check the lease terms carefully.
6. Energy Performance Certificate (EPC)
An EPC rates the property’s energy efficiency and provides recommendations for improvement. If the property has a low rating, it may need upgrades before it can be rented out.
7. Any Additional Reports
Depending on the property, there may be additional documents such as:
• Structural reports
• Drainage and water searches
• Planning consents for developments
• Why Reviewing the Legal Pack is Essential
• A legal pack helps you assess the risks before committing to a purchase. If you don’t check it thoroughly, you could end up with unexpected costs or legal issues.
For example:
• A restrictive covenant might prevent you from extending the property.
• An outstanding debt on a leasehold property could become your responsibility.
• A short lease could make it difficult to resell or remortgage.
• The golden rule? Never bid without reviewing the legal pack first!
• How to Review a Legal Pack Properly
Here are some steps to ensure you fully understand the legal pack:
✔️ Download the Pack Early – Most auctioneers make legal packs available online before the auction. The earlier you review it, the better.
✔️ Get a Solicitor to Check It – A legal expert can spot issues you might miss and explain complex terms.
✔️ Look for Additional Costs – Check the special conditions for extra fees beyond the purchase price.
✔️ Compare Leasehold Terms – If the property is leasehold, ensure the lease terms are reasonable and manageable.
✔️ Check for Planning and Restrictions – Make sure there are no legal barriers to your intended use of the property.
Final Thoughts: Be Auction-Ready!
An auction legal pack is your best tool for making an informed buying decision. By reviewing it carefully and seeking professional advice, you can bid confidently and avoid any pitfalls.
If you’re considering buying at auction, start reviewing the legal packs early, do your research, and get professional support where needed. That way, you can secure a great deal without unwelcome surprises!
Would you like help with an upcoming auction purchase? Get in touch with our team for expert guidance!
