oMZ Under the Hammer - Episode Ten - Due Diligence on Auction Legal Packs скачать в хорошем качестве

oMZ Under the Hammer - Episode Ten - Due Diligence on Auction Legal Packs

Due Diligence with Auction Legal Packs Share this video:    • oMZ Under the Hammer - Episode Ten - Due D...   🗣️FOLLOW ME ON INSTAGRAM:   / omzunderthehammer   🔔 Subscribe for weekly content:    / @omermehmet7380   🏠 Property Entrepreneur 📄 Mortgage Broker & Mentor 👨‍👩‍👧 Father and Husband 🔨 Latest Auction Purchase 👇🏽 Follow my Journey When considering purchasing a property at an auction, you will have heard the term ‘legal pack’ mentioned or seen reference to this online. Legal packs might seem confusing, however, as they contain a lot of legal jargon so it’s helpful if you know what they include and the points you should check. A legal pack is provided by the seller and it contains the legal information that you’d normally receive if you were dealing directly with an estate agent. This information can include searches, office copies, special conditions and any other legal requirements for the property. You may have looked through it and think everything’s fine but you also need to think about anything that might be missing from it. A good place to start is the special conditions, which determine the terms of the sale. What are special conditions? The special conditions are specific to that particular property and are extra to the auction’s general conditions. The seller may, for example, try to make you liable for any arrears on the property. He/she would include this in the special conditions and it’s too late to argue against this once the hammer has fallen. At that point, the contracts have exchanged so it’s essential that you do your due diligence first and scrutinize the details of the legal pack. What else should be noted? The seller might try to pass the auction cost onto you or you may be responsible for the cost of the searches. Check the completion date because you’re normally given 28 days at an auction but some sellers may reduce this to a week or two. This gives you a much shorter timescale when arranging finance. On the other hand, some sellers may extend the date. At Christmas auctions, for example, the completion time might be extended to 6 weeks. The completion might also be dependent upon something, such as getting a landlord’s consent when purchasing a tenanted property, or there may be restrictions as to what you can use the property for so it’s vital to check the special conditions. As well as the special conditions, check the title to ensure that the seller is actually the property owner. The legal pack should contain details of any disputes with neighbours, issues that aren’t obvious from the title, and details of any costs that the seller may be trying to pass onto you that you wouldn’t necessarily be aware of. If a local search isn’t in the legal pack, get one done. Don’t expect the auctioneer to have done due diligence on these points. It’s your responsibility to check the legal pack thoroughly and to make sure the details are correct. Is there a difference between freehold and leasehold properties? The Land Registry titles for freehold properties tend to be clean without the need to look out for much. One thing I would advise you to check is the freehold title. Make sure the seller is the true title owner on paper rather than merely having a possessory title with squatter’s rights. Be a bit more careful with leasehold properties, though. Check the lease is long enough for a mortgage term and check for any arrears or notices of major works so that you’re fully aware of any costs you may be liable for later on that the seller has passed onto you because he or she couldn’t pay them. As well as checking the actual property, you need to thoroughly check the paperwork when buying at an auction. Aside from looking through the auction pack yourself, I’d recommend you ask a solicitor to look over it for you. A solicitor will be able to do this very quickly for you and will quickly spot anything unusual that you should be aware of before proceeding with the purchase or getting finance.