The Royal Institution of Chartered Surveyors has published updated conditions to make the legality of house auctioning less confusing.
The Common Auction Conditions have been created by buyers, sellers, solicitors and auctioneers in an effort to make the legal process of buying and selling property at auction more transparent and easier to understand and comes into effect this week.
Adopted by most auction houses and used by vendors’ solicitors, RICS’ Common Auction Conditions, originally published in 2002, have been produced for real estate auctions in England and Wales to be used by all auctioneers and set a common standard across the industry.
Auctions are becoming an increasingly popular way to buy and sell property, with the top 20 commercial and residential auctioneers seeing a 16% increase in property sold at auction in 2004, at a total value of 3.38bn.
It is the simplicity and speed of the process that makes auctioning such an attractive option. Auctions have become more open and transparent, and often an ideal place to find competitively priced properties.
Richard Auterac, chairman of RICS’ Real Estate Auction Group, says: RICS have ensured that the conditions have evolved to meet the current needs of the marketplace and stem from the belief that professionals active in the auction market should act as innovators and examples of best practice for the entire real estate transactional market.