When it comes to buying at auction it pays to understand the potential advantages and disadvantages of the property in question. Due diligence simply means doing your research on any property you plan to purchase and being completely aware of any pitfalls it may have. Remember, once the gavels the falls there’s no turning back.
Due Diligence includes checks on the property itself, its condition, remedial works required, location, design, and suitability. Also, due diligence refers to vetting of the legal pack including title documents, searches, special conditions of sale and other related papers. Many buyers will engage the services of a solicitor to check the legal pack and advise on their findings; also, a buyer may seek advice from surveyors, engineers, architects etc. regarding the property or land as well.
A legal pack is the set of documentation prepared by the seller’s solicitor. On each lot, you’ll be able to find access to the property legal packs currently hosted on the EIGroup. The elements of a legal pack are to provide sufficient information regarding making an accurate and informed decision regarding the purchase of a property. It’s the best way to dig deeper and find all the information you need on a property. The legal packs include such information as:
• Land Registry and Local Searches
• Special Conditions of Sale
• Property Information Form
• Fixtures and Fittings Form
• Management Information
• Tenancy Agreements
• Planning Permission Documentation
Auction teams recommend that all elements of the legal pack are inspected by those wishing to bid and their legal advisors. The Special Conditions of Sale will include pertinent information such as completion date, any additional disbursements that become payable on completion, and overage clauses.
Due diligence is a valuable and key risk management tool and we always recommend for making informed decisions and avoid surprises at the end of a transaction. At Edward Mellor, we’re here to help you every step of the way. If you need help, advice or just a friendly chat regarding any property being sold by us. We can point you in the right direction and help you with your property purchase. You can call our auction team today on 0161 443 4740 or email us at: [email protected]