Property Auctions

Yes, using an online auction service like Property Solvers is 100% safe.

We use the industry-leading Essential Information Group (EIG) auction infrastructure and you can rest assured that your personal details will be held securely. Any money transfers are administered through Stripe, global pioneers in internet payment processing.

As a company, Property Solvers is registered with the Information Commissioner’s Office (ICO), anti-money laundering and trading standards.

Auction terms and conditions are exactly the same as when attending a traditional ‘in the room’ event.

This means that if you were to successfully win a bid you make over the reserve, you are legally committed to the sale.

However, with our unconditional (56-day) auctions, you will need to pay a non-refundable reservation fee at the fall of the online hammer and then have 28 days before exchanging contracts (when there is a legal commitment to the sale).

Although technically you could pull out of the sale after paying the fee, you will lose the non-refundable deposit. This is the reason why both our conditional (28-day) and unconditional (56-day) auction sales rarely fall through.

The main difference between a conditional and unconditional property auction comes down to how quickly the sale process is concluded.

Conditional Auction (56 Day Completion)

Also known as the Modern Method of Auction, as a buyer, you’ll have a longer timeframe to complete the sale.

After marketing a property and conducting viewings/open days, we will conduct the bidding process.

The bid is won once the virtual hammer falls.

There is then an allocated 4-week (28-day) exclusivity period for you to exchange contracts on the property.

It’s during this period that most buyers organise mortgage finance (a process that’s not usually possible with traditional auctions).

At this juncture, a non-refundable deposit is also instantly paid.  You must exchange after the 28 day period or risk losing all of this deposit (plus abortive legal costs).

At the point of exchange, unless otherwise agreed in the Special Conditions of Sale, a 10% deposit is usually also paid into your conveyancer’s account (meaning that you will need to pay 90% of the price agreed upon completion).

There is then a further 4 weeks (28 days) for the sale to complete.

Unconditional Auction (28 Day Completion)

Similar to the 56-day auction, there will be a best bids process after the property has been marketed and viewed by potential bidders.

However, should you win the bid at the fall of the virtual hammer falls, you would have effectively exchanged contracts.

In addition to the non-refundable fee payable to Property Solvers, you would need to pay a minimum deposit of 10% to your conveyancer’s client account (unless otherwise agreed in the Special Conditions).  The remainder 90% will be due upon completion.

You then have 28 days to complete on the sale.  Failing to do so means that you will lose both deposits paid and incur other financial penalties set by your conveyancer.

To bid and then purchase a property at our auction, you will need to create an account. You’ll also need to register if you would like a closer look at the properties we have advertised on the platform.

This can be done via the ‘Register’ button or when you try and view some of the gated documentation pertaining to a property in question.

You can then create an account by providing your contact details and we will need to verify your email address (we will send an activation link).

You will also need to submit your information and debit / credit card details for the deposit of the non-refundable fee. Please note that this payment will only be taken if your bid is successful.

Once you have clicked on the activation link, your account will be set up and you can watch lots and view the legal pack.

Clicking on ‘Watch Lot’ also means that we will send you updates and reminder emails.

In most cases, we will actively market the property for 3 weeks (21 days) before starting the bidding process.

This provides bidders with a sufficient amount of time to view and/or attend our open days, examine legal packs as ask us any questions related to the property in question.

With the seller’s permission, Property Solvers are able to offer viewings 7 days a week.  Please call our freephone number 0800 044 3797 or email us at auctions@propertysolvers.co.uk.

Typically with auction sales, we’ll run open days where a number of potential bidders can view the property at the same time.

Should you wish to have a second viewing or book in a survey, we are more than happy to make those arrangements (with the owner’s permission).

Where the seller has provided us with a RICS-approved homebuyer’s or structural, we will include it with the legal pack.

Please note that we do not undertake any surveys ourselves and, if you wish to commission a report yourself, any costs will need to be incurred by yourself or the buying entity.

Any concerns can then be addressed with the specialist surveying the property (should that be your chosen course of action).

Although it is not compulsory, we strongly advise sellers to produce a legal pack.

Once registered, you will be able to view the legal pack directly from the listing itself.  It will typically contain the following:

• The Title Register from HM Land Registry;
• Conveyancing Searches;
• Special Conditions of Sale;
• Property Information Form (TA6);
• Fixture & Contents Form (TA10);
• Leasehold Information (TA7) and Property Enquiries (LPE1) forms;
• Tenancy Agreements and Proof of Rental Receivables (if the property being sold is a buy-to-let);
• Commercial property leases (where required);
• Planning and building regulation documentation.

You can then refer this documentation to your own conveyancer and revert back to us with any questions at auctions@propertysolvers.co.uk.

These are specific contractual terms related to the property in question that will not appear in the listing or property brochure.

Where included, we’ll include these terms in the Legal Pack.

Along with the terms and conditions, we would need you to acknowledge that you have read and understood them before allowing you to bid on any lot we advertise.

To allow you to bid on properties we market, we’ll need to undertake a couple of fairly simple checks.

First, we’ll need to verify your mobile telephone number (via text message).

Secondly, we’ll ask you to scan copies of your ID (typically your driver’s licence or passport) and proof of address – such as a utility bill or bank statement.

You will then be asked to read and accept our conditional (56-day) or unconditional (28-day) auction terms and conditions.  These are aligned with the 4th Edition Common Auction Conditions (reproduced with the consent of the Royal Institute of Chartered Surveyors).

There may also be specific documentation – such as Special Conditions of Sale – that you will need to read and accept before being able to bid.

Property Solvers will send these documents to your email for your records.

We will also require you to register a credit or debit card in your own name for the security deposit.  We use Stripe who will provide a secure, online card registration facility.  They will attempt to place a ‘hold on funds’ (sometimes known as a ‘payment shadow’).  The bidder security amount will be clearly displayed when registering your card.

Your card will be automatically debited for this amount only if you win the bid.  If you’re not successful, this payment will be released back at no cost to you (please note that this can take up to a week).

We can then run our credit and anti-money laundering checks (at our own expense).  We may need to contact you directly should we need some extra information.  Note that this process does leave a ‘soft footprint’ and will not affect your credit rating.

Once accepted we’ll send you a confirmation email and you’re ready to bid!

At any point during the auction cycle, please do not hesitate to email us at auctions@propertysolvers.co.uk should you have any questions or require any assistance.  We’re always happy to assist…

Our auctions sell everything from residential terraced / semi-detached / detached houses, flats / blocks of flats, chalet bungalow properties, cottages of all sizes right through to a range of commercial / industrial / retail opportunities, ground rents, land and everything in between.

As with any property purchase, caveat emptor (‘buyer beware’) applies.

We strongly advise that view the property and seek professional advice as to its condition and suitability.

You should also ensure that you thoroughly read and understand the legal pack and any other associated documentation that we provide, and take proper legal advice accordingly.

Please also appreciate the contract you are entering into and the financial commitment that you will be liable for should you be the successful purchaser.

Below are the costs that you will need to bear in mind when buying at auction:

Non-Refundable Reservation Fee

This is a percentage additional charge on the hammer price (winning bid at auction) of the lot that must be paid by the purchaser.

Stamp Duty Land Tax (SDLT)

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland.  This will be charged if applicable and at the current prevailing rate.

Property Insurance

In most cases, you will be liable to insure the property from exchange of contracts. Further information can be found in the legal pack for the relevant Lot.

Conveyancing and Other Professional Fees

You will require a conveyancer / conveyancing solicitor and should set aside funds to pay for any of these additional fees.

Value Added Tax (VAT)

In the UK this is currently 20% and is charged on UK goods or services if they are eligible for VAT and if provided by an entity (person or company) that is registered (or should be registered) for VAT. For information regarding this clause, please refer to the special conditions of sale and addendum (if any), in the legal pack for the relevant property.

Income Tax

If you are buying a second or investment (income-generating) property at auction, we would strongly advise you to speak with a qualified tax advisor / accountant.

If you are buying as an individual or as a company, there are extra income tax liabilities that you will need to be mindful of.

Overage (Where Applicable)

This is the term normally used in the context of a property transaction to mean a sum which the vendor may be entitled to receive after completion if a specified condition is satisfied.

The condition may be:

• The grant of new planning permission; or
• The grant of planning permission for a new (perhaps more valuable) use of the land; or
• The construction of more than a specified number of houses, or a larger than specified commercial development on the land; or
• The on-sale of the land in its present state, where the vendor fears that the purchaser may take advantage of a rapidly rising market to make a quick profit from the land. This will be particularly useful in the case of a vendor who is anxious not to be embarrassed by being seen to have sold at an undervalue, such as a local authority or charity.

Further information regarding this clause, will be found in the legal pack for the auction property listing.

We engage in detailed conversations to establish the current value of the property and, combined with our own extensive experience, provide a recommended figure.  It’s at the vendor’s discretion as to whether they wish to move forward with our suggestions.

Establishing the Reserve Price

The reserve price is the minimum figure that we are currently authorised by the vendor to sell the property for.

Please note that Reserve is liable to change throughout the course of marketing.  Property Solvers reserves the right to lower the Reserve during the auction to a level that matches the existing highest bid.

In the event that there are no further bids, the bidder who places the ‘highest bid will be declared the purchaser at the end of the auction process.

Establishing the Guide Price

The guide price is an indication as to where the reserve is currently set.

It is not necessarily what we expect to sell the property for, and should not be taken as a valuation or estimate of the sale price.

The reserve will not exceed the guide price by more than 10% if it is a single figure guide price.  If a guide price range is quoted, the reserve will fall within that range.

Yes, this is entirely possible.

We would need to undertake the relevant identification checks on the bidder and receive a written letter of authority.

Please get in touch with us in good time before the start of the auction so that we can make sure things are set up in the right way.

Yes, this is possible.  We will present the offer to the seller (along with confirmation of the buyer checks, proof of funds plus other credentials we have) and inform you of the decision.

In our experience, most wish to wait and see how things go with the bidding but some may go ahead.

When the auction opens, you can place bids in line with the pre-determined bid increment levels, using the bid increase (+) and decrease (–) buttons provided.

Having set your preferred bid amount and clicking the ‘Place Bid’ button, you will be asked to confirm your bid at which point it will be placed.

Every time you submit a bid you will be clearly shown whether your bid was successful, and a full list of all bids will be displayed on the auction list.

Maximum (Proxy) Bids

You are not restricted to placing a bid at the minimum bid amount, but can instead increase your bid and place a maximum (proxy) bid in the system.

By setting a maximum bid, the system will automatically bid on your behalf to maintain your position as the highest bidder, up to your maximum bid amount.

If you are outbid, you will be notified via email so you can opt to increase your bid if you so choose.

We go more into the proxy bidding and payment processes in our ‘Buyer’s Operations Guide’ which you will receive via email once you have registered to access the platform.

This will depend on the specific sales circumstances and the level of interest generated during the marketing period.

Typically, however, we tend to open up the bidding period for a minimum of 24 hours which will provide all interested parties with ample time to bid against the property.

We would strongly recommend that you ‘Watch’ any properties you’re interested in.  We will be able to keep you informed of what is happening.  For example, should the vendor decide to accept a ‘Bid Now’ offer you will be notified.

Yes.  Regardless of whether the auction sale is conditional (56 days) or unconditional (28 days), if you’re the highest bidder above the set reserve price for the property you will be committed to the sale.

As the winning bidder of a conditional auction, you are not bound to buy the property but will have the right to exchange contracts within 28 days and complete on the property at the agreed price within the subsequent 28 days of draft contracts arriving with your conveyancers.  You will also be committed to paying the reservation fee (of 2%) which will not be returned should you not exchange or complete on time.

As the winning bidder of an unconditional auction, you are legally required to exchange at the fall of the online gavel, pay 10% of a deposit (in most cases) + the reservation fee (2%) and complete the sale within 28 days.

Failure to comply with the auction terms and conditions could result in heavy financial losses.  For this reason, please be aware of your legal obligations prior to placing a bid.

Absolutely not.

Unlike eBay, bid sniping is impossible on our online auction platform.

All auctions will close as per their advertised ‘Auction End Date’.  However, if a bid is placed within the final 60 seconds of the auction’s scheduled end time the auction will be extended by an additional 60 seconds – known as the ‘bidding extension window’.

If a bid is placed in the bidding extension window, the countdown clock will immediately reset to 60 seconds again.  The auction will only finish when an entire 60-second bidding extension window passes without any further bids being placed – i.e. 60 seconds of ‘bidding silence’.

This ensures every bidder has a fair and equal opportunity to place another bid.

Do not leave your bid to the last few seconds.  It gives you no advantage and you risk your bid not being received by the server in time and you could lose the lot to another bidder.  Bidding is based on the server time and not your device which could be up to 2 seconds behind the server.

Once the online hammer (or gavel) falls, you will be informed if you are the winner or not via email.

The next steps will depend on whether this is a conditional (56-day) or unconditional (28-day) auction.

Fall of the Online Hammer – Conditional (56-Day) Property Auctions

As the winning bidder, you have the exclusive ‘right to exchange contracts’ on the property within the prescribed time frame – usually 28 days (20 business days).  This will be confirmed in the terms and conditions of sale and/or legal pack.

The bidder must also pay the non-refundable reservation fee.  At the point of exchange, the buyer will typically pay 10% of the agreed sales price into the conveyancer’s client account.

Once exchanged, the property sale must be completed within 28 days.

Fall of the Online Hammer – Unconditional (28-Day) Property Auctions

There is an immediate exchange of contracts and, unless otherwise agreed, you must deposit 10% of the property’s agreed sales price into your conveyancer’s client account.

The non-refundable reservation fee must also be paid to Property Solvers.

At this juncture, you will then have 28 days to complete on the sale.  Failure to do this in time could potentially mean losing the deposit and reservation fee as well as incur abortive penalties from the conveyancers handling the sale.

The team at Property Solvers will produce a Sales Memorandum the moment the auction is concluded.

This will be circulated amongst the conveyancers to proceed with the next stages of the sale.

Yes.  HM Revenue and Customs policy states that a reservation fee for a land or property transaction will be deemed as chargeable consideration.

Property Solvers operates a different pricing structure to many other auctioneers in that we charge both buyer and seller fees (many pass the fees straight on to the buyer).

This creates a more even playing field and, in addition to creating a non-conflicting bidding environment, means that your extra stamp duty liability is more reasonable.

Nonetheless, we would encourage factor this into your calculations before and during the bidding process.  We would also suggest speaking to a qualified tax advisor prior to purchasing any property.

Yes, we would encourage you to complete our Property Investor Profiling Form.

We can then forward any potential opportunities aligned to your criteria, including pre-auction opportunities.