Perhaps the greatest advantage of buying commercial property at auction is the speed of the transaction in comparison with private treaty sales. Following a short marketing period, and auction day itself, the process rapidly heads towards completion.
Unless otherwise stated this will follow within 28 days (20 working days) of the exchange of contracts in accordance with the Royal Institution of Chartered Surveyors (RICS) Common Auction Conditions.
This will usually occur at the offices of the seller’s representative and must take place on a normal working day between 9.30 am and 5pm. In order for this to happen, the balance of the price of the property must have been deposited and cleared. Providing this has taken place, the transaction will now be completed and the keys to the commercial property you bought at auction will be yours.
Once again, if you fail to comply in any way, you will forfeit your deposit and the seller will be free to resell the lot and claim damages for breach of contract. Furthermore, if the property fails to reach the same price at a subsequent auction, you could also be liable to compensate the seller, so it’s in your interest to ensure you are able to meet your financial obligations.
Exchanging Contracts at Commercial Property Auction
Commercial Property Guides