There are 2, types of auction – conditional and unconditional.
UNCONDITIONAL PROPERTY AUCTION
In an unconditional auction, contracts are exchanged to the winning bidder immediately. Through unconditional auction, properties are actively promoted, prior to the public auction date, viewings are undertaken, and legal packs are made available. Bids can be made prior to the public auction and the vendor can accept the buyer’s offer. In such a case when the vendor agrees a price with the buyer, a 5% deposit of the sale price is paid immediately, along with the (Buyers Premium), which is usually £5000 + VAT. The property is then taken off auction. The buyer has then 28-days to pay the remaining money and the sale is complete.
Conditional auction is within the auction room under a bidding process. The winning bidder will pay a reservation fee, and during a 28-day exclusivity period, the buyer will organise the payment/funding and set a completion date, which would usually fall within 8-weeks of placing the winning bid.