Buying a property at auction

ATC110

How long does a solicitor need to peruse the legal documents prior to the auction date?

Is two weeks enough time?

nuac

Mod
Depends on the title and on the necessary enquiries before bidding.
At an auction the successful bidder has to sign and pay the deposit when the hammer falls. Then too late to negotiate conditions etc

ATC110

nuac wrote: »

Mod
Depends on the title and on the necessary enquiries before bidding.
At an auction the successful bidder has to sign and pay the deposit when the hammer falls. Then too late to negotiate conditions etc

Thank you. The receiver is a well-known financial services company.
I've gone through the legal pack and can't see anything untoward. The access is directly onto a public road so there's no issues there.

I realistically don't stand much chance of being the successful bidder hence I'm reluctant to incur costs..

Do you know how much I would expect to pay for the legal pack to be reviewed?

Claw Hammer

ATC110 wrote: »

Thank you. The receiver is a well-known financial services company.
I've gone through the legal pack and can't see anything untoward. The access is directly onto a public road so there's no issues there.

I realistically don't stand much chance of being the successful bidder hence I'm reluctant to incur costs..

Do you know how much I would expect to pay for the legal pack to be reviewed?

First off, will you need a mortgage?

ATC110

Claw Hammer wrote: »

First off, will you need a mortgage?

No, it’d be a cash purchase

nuac

Contracts drafted for receivers a should be approached with great caution

Bocking 14

nuac wrote: »

Contracts drafted for receivers a should be approached with great caution

Thanks. Do you know how much I would expect to pay for the legal pack to be reviewed?

Lenar3556

Depends on what level of ‘reviewed’ you are looking for. If we are talking about a house, some people in this position might ask a solicitor for an initial opinion on the title and and special conditions - they might part with €300 for same, on the basis that it be deducted from fees in the event of the sale proceeding.

Even with the above there are greater risks with receivership sales by auction - so don’t pay too much!!

How old is the property? Watch out for VAT clauses in the special conditions.

Peregrinus

Bocking 14 wrote: »

Thanks. Do you know how much I would expect to pay for the legal pack to be reviewed?

However much it is, you cannot afford not to pay it, especially this is a sale by a receiver. Do not bid on this property without having the title package professionally reviewed. Treat the cost of this as part of the cost of the transaction, just as inescapable as the stamp duty or the conveyancing costs.

Claw Hammer

What you have to factor in is that a solicitor must now complete anti-money laundering procedures before giving you an opinion. The costs for the time taken to do this will be added to the bill. You might be able to deal with a solicitor on the basis that there will be a few of them and negotiate a standard fee until you successfully bid.
You could make it more economical by printing off the legal documents before approaching the solicitor, scheduling them and siging a waiver that if there are any missing, it is because of your negligence and not that of the solicitor. If a solicitor has to print them from n a website it could cost a few hundred euro alone.

Bocking 14

[QUOTE=Lenar3556;116398370
How old is the property? Watch out for VAT clauses in the special conditions.[/QUOTE]

Thank you. It's derelict and about 200 years old. It's residential - could there be VAT payable?

Bocking 14

Lenar3556 wrote: »

Depends on what level of ‘reviewed’ you are looking for. If we are talking about a house, some people in this position might ask a solicitor for an initial opinion on the title and and special conditions - they might part with €300 for same, on the basis that it be deducted from fees in the event of the sale proceeding.

Even with the above there are greater risks with receivership sales by auction - so don’t pay too much!!

How old is the property? Watch out for VAT clauses in the special conditions.

Thank you. It's derelict and about 200 years old. It's residential - could there be VAT payable?

Lenar3556

Bocking 14 wrote: »

Thank you. It's derelict and about 200 years old. It's residential - could there be VAT payable?

Likely to be well outside of any VAT scenario so! If it was within 20 years since build or major upgrade it would be a consideration.

It’s one of the more common issues arising at auction purchases that there are VAT implications. Often If there is any question of there being VAT on the sale, the receiver exercises a mechanism called ‘joint option to tax’, and the purchaser warrants they are a taxable person and will be responsible for all costs arising if they are not.....it’s an attempt by the receiver to wash their hands of VAT histories of the property and transfer this burden to the purchaser.