General FAQs

A guide price refers to the price provided for all properties within an auction, serving as an indication of the potential selling price for the property in question. It can be expressed as a fixed amount or a price range, such as £100,000 to £120,000. The guide price is subject to change before the actual auction takes place. However, it is necessary to display the most up-to-date guide price on the property details page at all times.

A Legal Pack comprises a collection of legal documents associated with a property, which are prepared by the seller’s solicitor. Both physical copies (hard copies) and digital copies (soft copies) of the legal pack are available. Hard copies are typically provided on the day of the auction, while soft copies can be accessed on the relevant property details page on our website.

The contents of a legal pack may include, but are not limited to, the following:

Official Copy of Register of Title (Office Copy Entry)

Land Registry and Local Searches

Special Conditions of Sale

Property Information Form

Fixtures and Fittings Form

Management Information

Leases

Tenancy Agreements

Planning Permission Documentation

Properties Under The Hammer strongly advises prospective bidders to have their own legal advisors review all property legal packs. Essential information can often be found within the “special conditions of sale” section, which can help bidders determine the suitability of the property for their needs.

In an auction, every property must have a “reserve price,” which is a price agreed upon by the seller and the auctioneer before the auction takes place. The reserve price represents the minimum amount that must be reached on the auction day for a successful sale to occur. The reserve price should not exceed 10% of a fixed guide price. If the guide price is presented as a range (e.g., £100,000 to £120,000) rather than a specific amount, the reserve price should not surpass the higher end of that range.

An addendum or amendment sheet is a document that lists charges or modifications made to the auction catalogue after its publication. It becomes an integral part of the sales contract and is made available on the day of the auction. The auctioneer often informs bidders about any changes during the auction proceedings.

An unconditional auction, also known as a traditional auction, involves properties being auctioned and sold to the highest bidder, provided the reserve price is met when the auctioneer’s hammer falls. Once the hammer falls, the highest bidder enters into a legally binding contract and has 28 days to complete the purchase. The bidder is required to pay a non-refundable 10% deposit and sign relevant paperwork immediately after the auction concludes.

Auction finance is a financing option tailored specifically for properties purchased through auctions, taking into account the tight deadlines involved. Properties Under The Hammer collaborates with various financing providers to ensure bidders can smoothly complete their purchases. These finance companies have evolved in recent years, offering easier, more affordable, and accessible financing options to the general public. They demonstrate flexibility in financing various property types and can often provide confirmation within hours of application.

Properties that do not meet their reserve price are immediately withdrawn from the auction. However, interested parties can still submit offers that fall within the reserve price threshold to secure the property after the auction. Alternatively, interested parties can submit offers below the reserve price, and the auctioneer can present these offers to the seller for their consideration.

Auction results are typically accessible within a few days following the auction date. You can visit our Auction Results page to search for the results, or reach out to our staff members for assistance. Please note that properties that have not been sold or have been privately sold prior to the auction may not disclose their prices.

This is a misconception and is incorrect. Our auctions showcase a diverse range of properties, including both high-quality and mortgageable properties, as well as those requiring repairs or having other issues. The properties span various types, uses, and values. Bidders bear the responsibility of conducting all necessary checks, searches, and investigations before the auction day.

Properties Under The Hammer operates in the North East region, offering residential, commercial, mixed-use properties, as well as land and other development projects.

Open market value refers to an estimated amount determined by a valuer, which they consider to be a fair value. It’s important to note that such opinions may vary among valuers and may not always be entirely accurate.

An overage clause is a contractual provision that specifies an additional increment to the sale price if certain conditions are met. These conditions can take various forms. For instance, it could be triggered if planning permission is granted, resulting in an increase in the value of the property or land.

The primary difference lies in the timeframe for completing the transaction. In an auction, the exchange of contracts and payment typically occur within 28 days. Conversely, when selling through a real estate agent, although a sale agreement may be reached more quickly, there is no specific time limit, and it may take several months for contracts to be exchanged.

Another notable distinction is the pricing approach. Auctions often market properties with lower guide prices to encourage competitive bidding and allow the final price to be determined through the auction process. On the other hand, real estate agents generally start with higher prices and gradually reduce them until buyer interest is generated. The choice between these methods depends on the seller’s circumstances and preferences.

The exchange of contracts signifies the moment when the seller and buyer enter into a legally binding agreement for the sale or purchase of the property. In an auction, contracts are typically exchanged immediately after the auctioneer’s gavel falls. Completion, on the other hand, occurs when the ownership of the property is officially transferred from the seller to the buyer. This happens when the transfer has been duly submitted to and confirmed by the Land Registry.