Selling Your Property at Auction: A Guide for Sellers

Key Takeaways

• Selling through auction is generally quicker than using a traditional estate agent.
   
• Sellers typically pay a commission of around 2–2.5% of the final sale price, plus any reservation fee.
   
• Auctions—especially online—give you access to a wider pool of serious, ready-to-buy bidders.

Selling a property at auction can be an excellent way to secure a fast sale, especially if your property is unique, requires renovation, or has struggled on the open market. However, it’s vital to understand the auction process and legal requirements before committing. Working with experienced auction conveyancing solicitors ensures you're fully prepared and protected throughout the sale.

Why Use Auction to Sell Your Property?

Auction sales are legally binding the moment the hammer falls. This can be a major benefit, especially if you’re dealing with:

• A tight timeline
   
• A property with structural or legal complexities
   
• Unreliable buyers in a collapsing property chain
   

The process removes the risk of buyer withdrawal, gazundering, or drawn-out negotiations.

The Role of Your Solicitor

It’s essential to instruct an experienced auction solicitor early—ideally before you’ve even listed the property. This allows enough time to:

• Investigate title and ownership issues
   
• Prepare your Auction Legal Pack
   
• Resolve legal matters such as easements, access rights, or restrictive covenants
   

If your property is freehold with leasehold units, the legal preparation becomes even more complex—specialist legal support is non-negotiable.

What Are the Pros and Cons of Selling at Auction?

Pros:

Fast, fixed timeline—completion usually takes place within 28 days of the auction
 Certainty—contract is binding when the gavel falls
 Competitive bidding may drive up the sale price
 Attracts cash buyers, investors, and developers
 Less chance of the sale falling through
 Great option for hard-to-sell or unmortgageable properties
 You can set a reserve price to avoid underselling

Cons:

Auctioneer’s fees and seller commission (often around 2.5%)
Smaller buyer pool than traditional estate listings
No guarantee of sale—if unsold, you still owe fees
Potential for a lower sale price compared to open market
Risk of inexperienced legal support delaying the auction or costing you the sale
You may incur additional costs if you re-list the property or retain your solicitor

Costs of Selling at Auction

The typical costs to budget for include:

• Auction listing fees (a few hundred pounds)
   
• Seller’s commission (approx. 2%–2.5% + VAT)
   
• Reservation fees (if applicable)
   
• Conveyancing solicitor’s fees for legal pack preparation and post-auction completion

Who Pays the Auction Fees?

• The buyer usually covers the auction house's buyer’s fee.
   
• The seller is responsible for the auction house’s commission and their own legal costs.
   

What’s the Auction Selling Process?

1. Choose an Auction House

Pick an auctioneer with experience in your property type and location. You’ll pay upfront for marketing, catalogue inclusion, and may agree on a guide price and reserve price.

Note: The guide price is public; the reserve price is confidential.

You'll also need to provide an up-to-date Energy Performance Certificate (EPC).

2. Instruct an Auction Conveyancing Solicitor

Your solicitor will:

• Review the legal title and prepare the auction legal pack
   
• Address any issues that could discourage buyers (e.g. title defects, rights of way)
   
• Order searches and liaise with the auction house to meet listing deadlines
   

The legal pack typically includes:

• Official title documents
   
• Local authority and environmental searches
   
• Contract of sale and special conditions
   
• TA6, TA10, and (if leasehold) TA7 forms
   
• Lease documents and management pack (if leasehold)
   
• Tenancy agreements (if let)
   
• Planning permissions, building regulations certificates
   
• Special conditions such as:
   
  • Search fee reimbursement
     
  • Seller’s legal cost contribution
     
  • Overage or clawback clauses
     

Be cautious with special conditions—they may deter bidders if perceived as excessive.

3. Auction Day

A. Property Is Sold

• Buyer signs the contract and pays a 10% deposit immediately.
   
• Buyer has 28 days (typically) to complete.
   
• You pay the auction house their commission from your sale proceeds.
   
• Your solicitor handles post-auction formalities and completion.
   

B. Property Is Unsold

If your reserve isn’t met:

• The auction house may approach interested bidders for post-auction offers.
   
• If relisting, you may pay additional marketing and solicitor fees.

Why Choose Parachute Law?

We offer:

• Transparent pricing with no hidden fees
   
• Fast turnaround for legal pack preparation
   
• Qualified, experienced auction solicitors
   
• Legal insight to resolve title issues and increase buyer confidence
   

Ready to Sell at Auction?

Speak to our auction specialists today to get started. We’ll help you meet tight deadlines, avoid legal pitfalls, and maximise your property's potential.

Contact us now or call us directly — local call rates apply.

Important Notice
This guide is provided for general information purposes only and is not intended to be relied upon as legal advice. While we’ve taken care to ensure the information is accurate and up to date as of the time of writing, it does not take into account your personal circumstances and should not be used as a substitute for tailored legal advice. Reading this guide does not create a solicitor-client relationship between you and Parachute Law. We accept no liability for any loss or damage arising from reliance on this guide. If you need legal advice about your specific situation, we encourage you to get in touch with us for a confidential consultation. We're here to help you understand your options and take the next step with confidence. Contact us at: thelegalteam@parachutelaw.co.uk