Raworths LLP is warning home buyers of the potential risks of buying at auction as numbers of homes sold at auction continues to increase.
Raworths, Harrogate’s largest law firm, which recently secured the Law Society’s new Conveyancing Quality Scheme (CQS) accreditation – the mark of excellence in home-buying, is urging anyone planning on buying their dream home at auction to carry out all of their research on the property before the auction because once the hammer goes down there is a legal commitment between buyer and seller.
Recent figures from the Essential Information Group show that residential property auctions have remained a strong feature in 2011. In March, more than 70 per cent of residential property lots were sold.
Mike Sheldon, head of residential property says: “At auction, you need to be prepared in advance, and that means getting a solicitor not only to check the terms and conditions of the auction sale contract, but also any legal anomalies or liabilities attached to the property that could impact on your plans once you have purchased.
“Imagine buying a property at auction that you plan to renovate only to find you are limited in what you can do to the property because it is, for example, in a conservation area or is subject to restrictions which prevent you turning it into your dream home.
“Once that hammer goes down, attempting to back out because subsequent investigations reveal the property is not what you expected is likely to cost you your deposit and you could be liable for any losses the seller incurs as a result of having to re-sell.
“Having a solicitor carry out the investigative work before the auction will give you all the information you need in advance before making this major commitment. You can secure a bargain at auction, and a CQS accredited law firm, can help you do that safely.”
Raworths LLP was one of the first law firms in the UK to undergo the rigorous application and assessment by the national Law Society to become part of CQS initiative, which recognises high quality in residential conveyancing. CQS has the support of the Council of Mortgage Lenders, the Building Societies Association, Legal Ombudsman and the Association of British Insurers.
