Can I pull out before completion if I change my mind?
No — once you’ve successfully bid at auction, you are legally bound to complete the purchase. The moment the auctioneer’s hammer falls, contracts are exchanged, and you are committed to buying the property on the terms set out in the auction legal pack and special conditions.
Changing your mind — even for understandable reasons — is not a legal justification for withdrawing. The consequences of doing so can be severe.
Common reasons people want to pull out — and why they don’t excuse you
- “I didn’t get my mortgage approved.” → You are still liable; auction purchases should only be made with finance pre-approved.
- “I found a problem in the legal pack or after the auction.” → Too late — due diligence must be done beforehand.
- “The survey showed the property needs more work than I thought.” → Auction sales are “as seen” — structural issues are not grounds to withdraw.
- “I’ve changed my mind or found a better deal elsewhere.” → This is not a valid reason in law. You’re still in breach of contract.
What happens if I don’t complete?
If you fail to complete, the seller can:
- Keep your 10% deposit — this is non-refundable once contracts are exchanged.
- Claim interest for any delay beyond the agreed completion date.
- Serve a Notice to Complete, giving you a final 10 working days to complete.
If you still don’t complete, they can:
- Terminate the contract.
- Resell the property — and if they receive less than your bid price, they can claim the difference from you.
- Take legal action against you for losses, costs, and damages.
In some cases, buyers who fail to complete have faced claims for tens of thousands of pounds in losses — especially if the resale is delayed or at a reduced price.
What should I do if I’m struggling?
- Contact your solicitor immediately — there may still be time to remedy the issue (e.g. secure finance, arrange bridging).
- Consider whether reselling quickly (via back-to-back completion or assignment) is an option — though this depends on the contract.
- If completion is imminent and unavoidable, speak to the seller’s solicitor — sometimes a short extension may be agreed (usually with daily interest penalties).
Summary
Pulling out of an auction purchase is not legally permitted once the hammer falls. Doing so can result in significant financial loss, legal action, and long-term credit consequences. Always be certain before bidding — and speak to Versus Law in advance if you have any doubts. We can help you avoid costly mistakes and, if necessary, minimise damage in the event of genuine difficulty.










