Auction purchase - No solicitor

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    Auction purchase - No solicitor

    Was at an auction before Xmas and met a couple who regularly buy at auction. They dont use mortgages or a solicitor to complete once the hammer has fallen

    They said there was no conveyancing work only TR1 to submit to land registry.

    That got me thinking, has anyone else ever purchased with no solicitor?

    Its not a requirement to have a solicitor but will a solicitor acting for a seller accept funds from a buyer without a client account?

    Or can a buyer pay HRMC the stamp duty direct.?id always recommend a solicitor however where no mortgage or conveyancing whatsoever the benefit may be marginal.

    What experience have others had of buying at auction with no solicitor acting for them?

    #2
    I never use a solicitor now. It's easy enough if you buy at auction or privately. If you need a mortgage they usually insist on a solicitor. Obviously you need to read through things carefully and question anything you don't understand but it really isn't difficult. There's a book I bought the first time I did it. I can't remember the title but I'll have a look if you want to know.
    You can pay stamp duty directly yourself (make sure it's within the time limit). You can send the money to the seller's solicitor, I've done it by cheque and online banking. If the seller isn't using a solicitor it's harder as you need to get the paperwork at the same time they get the money.

    Comment


      #3
      It is always a risk bidding for a property at auction without legal advice. As I said in another thread:

      There are three rules if considering buying at auction:

      1. Do not bid without having had the position investigated by a conveyancer.
      2. Remember rule 1.
      3. Do not forget rule 2.

      There are many reasons why a property is sold at auction and one of them is that there is something dodgy about the property or its title which will be covered by a special condition which it is hoped a bargain hunter will miss or ignore.

      Comment


        #4
        If the seller isn't the real owner, you could become a victim of fraud.

        Comment


          #5
          The fraud point is a good one. As far as employing a conveyancer to review each legal pack this muat be an individual decision. For my part i may only get 1 lot in every 10 bid on so not realy economic to review all these at several hundred pounds each. I take advice when i dont understand the legal pack. This post is more about where no advice sought on legal pack (in my case because I understand it) on the merit /necessity of a solicitor acting for me as buyer in the completion stage. Id be interested in any book others have used - seems to me pre completion enquiries is the major issue but registration to Land Registry services is not limited to solicirors

          Comment


            #6
            Many people take risks everyday. Crossing the road is a risk but if you look left and right before stepping forward , you hope you can complete without being hit by a passing car. So looking at the legal pack before the auction starts is equivalent to "look left and right" at the road crossing.
            Land Registry have had to compensate some property owners for fraudulent transfers because the conveyancing solicitor was deceived by the rental tenant who was posing as the property owner. So now solicitors have to conduct CDD ( client due diligence ) before accepting property owner as the client.

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