Property Auction Glossary
The legal pack is something you will hear about, and this is the set of documents that contains copies of the legal papers that will be required by you and your solicitor to evaluate efficiently and fairly whether the lot is something you are interested in or not. The legal pack is prepared by the solicitor of the seller, and it will contain documents such as title deeds, leases, search information and also if there are any information such as special conditions attached to sale.
It is essential to read the legal pack and small print on a property to avoid nasty surprises and so you understand the whole process; it could be for instance that at the auction the purchaser will have to pay the seller's legal costs, so if you don't want a surprise bill then make sure you have read the legal pack carefully to understand what will be entailed with the purchase other than the sum for the property itself.
A lot simply refers to each of the items that are up for sale. Of course in a property auction most will be abodes or dwellings of some kind, but also the lots can include things like pieces of land or even a private forest and so on, so not always just bricks and mortar! Some nice empty land with good access and planning permission in place can be hot property at auction as people see potential pound signs in front of their eyes through developing the land!
A viewing, or exhibition, is simply the process where the property can be viewed beforehand. Particularly with auction lots it is not uncommon for there to be other people going around a property at the same time, in the way that would not be the case when you buy a property through the 'more ordinary' estate agent route.
The reserve refers to the price that is the lowest threshold at which the seller will be willing to part with the property.
More property related articles:
- Finding out about building regulations
- Non marketed properties and HIPs
- Getting a better deal without remortgaging
- What to do at auction
- Loan To Value
