Auction day can be an exciting event for those bidding for lots and it can be equally exciting for sellers when their properties go under the hammer. Although you are not required to attend you will almost certainly want to be present and your excitement will mount along with the bids.
Your property, or properties, will be included in the order of sale and any late changes you may have stipulated will be listed in the addendum for bidder’s attention. At the start of the auction the auctioneer will explain the procedure and invite bids for the first lot.
When your turn comes, the auctioneer will announce any last minute changes and open the bidding. Assuming the reserve price is matched or exceeded, the property will be sold the moment the gavel falls on the highest bid. This is the point at which seller and buyer enter into a binding contract and there is no going back.
Immediately following this, the successful bidder will be required to provide proof of identity and the details of his or her solicitor. This will be overseen by the auctioneer or clerk. The buyer will then pay the deposit (usually 10% of the price) and sign the memorandum of sale. Contracts will then be exchanged and the signed copy sent to your solicitor. Completion will follow within 28 days.
In the event of the reserve price not being met, the property will remain unsold. In these circumstances the auction house will speak to interested bidders and seek to secure the best price. Frequently this leads to a satisfactory conclusion within a week or two of the auction.
Completing Commercial Property Sold at Auction