An introduction to the Solicitors Pre Auction Report (SPAR)
Buying at auction is a fundamentally different process to the conventional way of buying a property.
Buyers at auction must exchange contracts and pay a deposit on the day of the auction. They are then bound to complete on the purchase within 28 days or lose their deposit.
Buyers are often reluctant to bid at auction as they are uncertain about the property's legal state.
SPAR gives buyers the confidence to bid by:
- providing insight into the legal state, mortgagability and registrability of the property
- offering practical and cost effective legal and indemnity insurance based solutions
Bid with confidence
SPAR is a thorough report carried out by an auction specialist solicitor that gives buyers:
- awareness of certain* legal issues that could impact the value of the property and pre-auction advice about the options and costs of remedying these issues
- an understanding of the quality of the legal title
- reassurance that the property will be registrable at the Land Registry in the buyer's name
- reassurance that the property meets the mortgage lender's criteria (where relevant)
- an understanding of the contract that the buyer will enter into
*A full description of what is and is not reported on as part of the SPAR is included at the back of this report.
What are the limitations of the report?
SPAR is not as exhaustive as a full 'Report on Title' due to the limited information available in the typically short timeframe ahead of the auction. To provide the prospective buyer with a more comprehensive picture, the SPAR may recommend that further enquiries are made of the seller's solicitor ahead of the auction.
Who is the Report compiled by?
This report has been produced by a qualified Solicitor specialising in the conveyancing of properties bought and sold at auction. Solicitors are regulated by the Solicitors Regulation Authority.
What should you do if you win at auction?
If your bid is successful, you will need to move very quickly in order to complete the transaction within 28 days.
Having carried out the SPAR, your solicitor will already be familiar with the property, and this will help to ensure that the 28 day completion deadline is met.
For more information or to order a SPAR, please Contact our Property Auction team, or call 0800 038 6446.