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If you are considering purchasing or selling a commercial property at auction, you should instruct a specialist solicitor who will ensure the transaction is in your best interests and you are legally protected.
Our commercial property auction solicitors in Orpington, Dartford and Bexleyheath can guide you throughout the auction process, advising you on your options and making the process as efficient as possible.
We will spend time understanding your commercial aims to help you achieve the best result at auction with a property that meets your needs.
The team at T G Baynes can assist with a range of commercial auction needs, including:
- Reviewing commercial property auction packs and negotiating terms
- Advising on due diligence, inspections and surveys
- Overseeing the exchange of funds and property title
- Completion following an auction purchase
Contact our commercial property auction solicitors in Orpington, Dartford, and Bexleyheath
To speak to one of our commercial property solicitors in Orpington, Dartford and Bexleyheath, please fill in our simple enquiry form or call 020 8301 7777.
Our commercial property auction fees
Our commercial property solicitors want to help you get the outcome you’re hoping for and can explain your fees and any other expected costs from the start.
Our fees are reasonable and competitive, and we will be transparent about how we charge, allowing you to make the most sensible financial decision for you and your company.
Please use the contact details above to request a commercial conveyancing costs estimate for your matter.
Our commercial property auction services
Reviewing commercial property auction packs and negotiating terms
Before bidding, you must take the time to fully understand the legal implications of the property you are considering and whether it can fully accommodate your commercial needs.
Our solicitors will thoroughly review the auction pack with your needs in mind, identifying any potential risks or restrictions and negotiating on specific terms where necessary so that you can bid with confidence.
Advising on due diligence, inspections and surveys
Successful commercial property purchases start with due diligence. Our solicitors regularly guide clients through essential pre-auction checks, advising on the effect of planning restrictions, environmental liabilities or structural concerns that may affect the use and value of the property.
Overseeing the exchange of funds and property title
As soon as the property is sold at auction, strict deadlines will come into effect. Our team can liaise with your lender and the seller’s solicitor to ensure that funds are exchanged in good time and without delays. We’ll handle all of the legal paperwork and make sure that the title is transferred correctly.
Completion following an auction purchase
There are several arrangements to make when completing an auction process, which can be time-consuming for busy commercial ventures.
Our solicitors will manage all aspects of the final transaction within 28 days, including the verification of payments, registering the property with the Land Registry, and ensuring all the conditions of the sale are met.
Commercial property auction FAQs
What are the risks of buying commercial property at auction?
Buying commercial property at auction can be a big business opportunity, but it carries some significant risks. Most importantly, you must understand that once the hammer falls, you are legally bound to the purchase, regardless of any issues that may arise later.
Potential risks include:
- Inability to secure financing in time, leading to you losing your deposit.
- Hidden legal or structural problems.
- Overpaying due to competitive bidding driving process over the market value.
- Other unforeseen liabilities such as planning issues or restrictive covenants.
The best way to avoid problems like these from impacting your business is to work with property auction solicitors who can guide you through the process and anticipate these issues ahead of time.
What is the timeframe for completing a property purchase after the auction?
Typically, completion of a property purchase is required within 28 days of the auction date, although the auctioneer may set a shorter deadline.
Once you win the bid, you must pay a 10% deposit and sign the contract. This balance must be paid within the agreed-upon timeframe.
You are advised to organise your finances beforehand in order to make sure you can keep up with the fast-paced auction process.
What happens if I fail to complete after winning an auction?
If you fail to complete the purchase after winning an auction, then you will lose your deposit and are potentially liable for additional costs, such as the seller’s legal fees and any potential losses if the property is later resold for a lower price.
You should also be aware that the seller might take legal action to enforce the contract, which is why you’re advised to seek legal advice before bidding in order to make sure you’re able to meet your obligations and protect your business.
Can I sell commercial property with outstanding issues at auction?
You can sell commercial property with outstanding issues at auction, but you must disclose any unresolved structural, planning, or legal issues in the legal pack so that buyers are fully informed.
This may lead to your property selling at a lower price or reduced interest, but you must make sure buyers are fully informed. Failure to disclose this information can open you up to legal action from the other party.
Why do I need a solicitor for a commercial property auction?
A solicitor plays an important role in commercial property auctions by:
- Reviewing the legal pack to identify potential risks, including outstanding charges or restrictive covenants.
- Handling completion by organising fund transfers and registering ownership with the Land Registry.
- Negotiating on contract terms to make sure they are fair and favourable.
Speaking to a solicitor before you auction commercial property for sale can prevent legal issues and ensure you’re free to focus on your commercial goals.
How early should I instruct a solicitor before an auction?
It is best to instruct a solicitor once you start considering bidding on a property. This allows your solicitor enough time to thoroughly review the legal pack and organise any additional due diligence, such as property surveys.
Are there any additional costs beyond legal fees?
Yes, in addition to legal fees, you will need to budget for the following:
- Auction house fees (often a buyer’s premium or reservation fee).
- Stamp Duty Land Tax (SDLT), which depends on the purchase price.
- Search fees and due diligence costs in order to check for planning restrictions, title issues, and environmental risks.
- Surveyor fees if you choose to carry out a property survey before bidding.
How long does the legal process take before the auction?
Reviewing the legal pack and carrying out due diligence can take between one and three weeks. However, if any issues need to be negotiated, then it may take longer.
Contact our commercial property auction solicitors in Orpington, Dartford, and Bexleyheath
To speak to one of our commercial property solicitors in Orpington, Dartford and Bexleyheath, please fill in our simple enquiry form or call 020 8301 7777.