Property Insurance

Just in Case!

You WIN the Auction!

When the auction ends and you win, contracts are legally exchanged the moment the hammer falls or the online timer expires.

You immediately enter a legally binding obligation to purchase the property and cannot change your mind without losing your money.

The exact process immediately after winning depends on whether you bought via a traditional auction or a modern conditional auction:

1. Traditional Auction

• Pay the deposit: You must immediately pay a deposit, typically 10% of the purchase price.
• Pay fees: You are required to pay the auctioneer’s administration fee and/or buyer’s premium, if applicable.
• Sign the paperwork: You will sign the Memorandum of Sale and contract.
• Arrange insurance: You become legally liable for the property the moment the contract is exchanged, so you must arrange buildings insurance immediately
• Complete the purchase: You will have a strict deadline—usually 28 days (or about 20 working days)—to transfer the remaining 90% of the balance to the seller's solicitor.

2. Modern Method of Auction (Conditional Auction)

• Pay a reservation fee: Instead of a 10% deposit, you pay a non-refundable reservation fee (usually around 5% to 10% of the purchase price) to secure the exclusive right to buy the property.
• Sign a reservation agreement: You are bound to the agreement but are given an extended timeline to secure a mortgage.
• Exchanges and completion: You typically get 28 days to exchange contracts and another 28 days (56 days total) to complete the sale.
• Arrange insurance: You become legally liable for the property the moment the contract is exchanged, so you must arrange buildings insurance immediately

Next Steps After Winning

Immediately after the auction, you must contact your solicitor to inform them you have won and provide them with the property's legal pack. Your solicitor will handle the conveyancing process to transfer ownership within the 28-day or 56-day limit.