It often seems that buying a commercial property at auction is a quick and easy way to secure a property for your business or as an investment. This is true, but you may be put off from the idea of buying at auction due to the uncertainty of buying a property that you haven’t seen in person. No one wants to be stuck with a problem property!
The unanticipated costs related to the purchase of a problem property will have a huge effect on a smaller business's cash flow. It can have far-reaching negative effects to impede the development of new ideas, investment and growth.
You can avoid this uncertainty by taking the advice of a commercial property solicitor prior to taking the plunge!
Before an auction goes live the auction house will generally publish an Auction Pack for all properties that will be going up for sale. The Auction Pack will include everything you need to know about the property such as the EPC, any searches that have been done on the property, draft contract and transfer documents and any leases, deeds or other covenants that the property will still be subject to upon purchase. These packs can often be daunting due to their size and inclusion of lots of complex and wordy legal documents, especially if you are looking at several properties.
Once you have purchased a property at auction you will have to contact a solicitor to finalise the transfer of the property, but at that stage, it is too late to change your mind if any onerous obligations are discovered – you have already purchased! By contacting a solicitor to interpret the legal documents contained in an Auction Pack prior to the auction, you can have more certainty about what rights and obligations you will be subject to if you get the winning bid.
Get in touch with a solicitor to ensure that you get complete advice prior to purchasing a problem property at auction by contacting our commercial property department on 01302 965250.