At an auction, the process of buying or selling a property is condensed into a matter of minutes rather than months. For both buyer and seller this speed can prove to be extremely advantageous; however, it should not diminish the significance of the transaction – there are many considerations for both parties
Peter Brown & Co have built a solid reputation in acting in this specialist market. Whether you are a first time buyer looking for your initial purchase, a professional landlord managing a portfolio, or a limited company acquiring assets, the experienced staff at Peter Brown & Co will tailor the service to your requirements.
Our property auction lawyers and solicitors have extensive experience of acting for clients both buying and selling commercial and residential properties at auction.
There can be some real bargains, but with high reward also comes higher risk and it is vital, whether buying or selling at property auction, that you have the backup of an experienced property lawyer with genuine experience of property auction transactions.
We offer a very flexible service. We can provide you with either a written or oral report on the legal documents available prior to the auction. Please remember that we must peruse all the documents available. If we do not and you are successful at the auction and there is subsequently a problem with the paperwork, we could be liable. Clearly if the legal pack is substantial we may have to send many hours doing this. Costs can therefore escalate quite rapidly. We charge at £250 per hour plus VAT and on average we estimate that a simple freehold property would take us at least an hour to go through. If the property is leasehold, commercial and subject to numerous leases this could easily amount to 6 – 10 hours or more. We therefore cannot give a fixed quote as each individual case will vary. We will of course discuss the likely costs with you before starting work.
We are aware that paying substantial costs when you have not been successful is extremely irritating. On the other hand, it is difficult for us to carry or write off/write down the cost of repeated requests to “drop everything” in order to review and report on auction packs . To assist, however, we are prepared to defer our costs on an unsuccessful bid provided that we are instructed on a successful purchase is achieved within 3 months.
If you are successful at Auction our standard fees are 0.5% plus VAT of the purchase price for commercial property and 0.25% plus VAT for residential property. Again this is subject to variation on a case by case basis.
We can prepare a full auction pack and draft the necessary special conditions of sale for the auction. This pack would include a full range of appropriate searches, replies to standard inquires and copies of all relevant papers in respect of the property. It is vital that the pack contains as much information as possible if you are to attract multiple potential buyers and maximise your chances of obtaining a sale/high price for your property.
In respect of our costs our standard fee again is based on 0.25% of the sale price bid plus VAT for residential property and 0.5% plus VAT for commercial property. We suggest a clause in the special conditions obliging the successful purchaser to pay these costs and related disbursements eg. the cost or searches. We will of course agree these before hand. Buyers contributions are based on a percentage of the eventual sale price or a fixed amount.