Author: numan
What is a TA6 form and why is it important?
The TA6 Property Information Form is a standard document used in most residential property sales. It is completed by the seller and provides key information about the property that a buyer wouldn’t easily find in the title or legal documents.
What does it include?
The TA6 form typically includes details about:
- Disputes or complaints involving neighbours or the property.
- Alterations or building works, including whether planning permission or Building Regulations approval was obtained.
- Boundaries, including who maintains fences or walls.
- Utilities and services, such as drainage, water, electricity, and gas.
- Occupants, including tenants or lodgers.
- Environmental matters, like flooding, radon gas or Japanese knotweed.
- Insurance and guarantees, including NHBC or damp proof certificates.
Why is it important?
The TA6 form provides information that may affect your decision to proceed — and could reveal issues that aren’t apparent from the title or physical inspection.
For example:
- If the property has had structural alterations, you’ll want to know if they were approved by the council.
- If there are ongoing neighbour disputes, that could impact your enjoyment of the property.
In a standard sale, your solicitor would review this form before exchange of contracts, and raise legal enquiries based on the contents.
It is a helpful document that gives the buyer a clearer picture of the property’s background, use, and condition.
Summary
The TA6 form is an important source of information about the property’s history, use, and condition — and can influence your buying decision. However, in auction sales, this form is often not included, which limits the information available before you buy.
What other fees or costs might I have to pay?
When buying a property at auction, the purchase price is only part of the total cost. Many auction properties come with additional fees and financial obligations, some of which are set out in the small print of the special conditions in the auction contract.
These extra costs are legally binding — even if you didn’t read them — and must be paid in addition to the purchase price.
Common additional costs include:
Auctioneer’s administration fee
Most auction houses charge a non-refundable admin fee, often between £500 and £1,500 plus VAT, payable on the day of the auction.
Seller’s legal fees
Some sellers pass on part or all of their legal costs to the buyer. This can include:
- Their solicitor’s fees for preparing the legal pack
- Search fees and other disbursements
- Contribution towards completion costs
Buyer’s Premium
Some auctions add a “Buyer’s Premium” on top of the hammer price — typically a fixed amount or percentage (e.g. 1.2% of the purchase price).
Apportioned sums
You may have to pay a share of:
- Ground rent or service charges (for leasehold)
- Insurance premiums
- Rent (if there is a tenancy)
VAT
Some commercial or mixed-use properties attract VAT on the sale price. If so, this will be in addition to your winning bid.
Can I change the name on the contract after the auction?
Once you have successfully bid at auction, the name given to the auctioneer and written on the memorandum of sale forms part of the legal contract. From that moment, the buyer named is personally and contractually bound to complete the purchase.
However, some buyers later wish to change the name on the contract, often to:
- Insert a limited company (SPV).
- Transfer the purchase to a family member.
- Assign it to a business partner or investor.
- Move it into a trust or pension fund (e.g. SIPP/SSAS).
This is not always permitted — and attempting to change the buyer’s name after exchange can cause serious legal problems if not handled properly.
Is it possible?
Sometimes — but it depends entirely on the terms set out in the special conditions of sale within the auction legal pack.
- Some contracts expressly prohibit assignments or changes of buyer.
- Others may allow it with the seller’s written consent and payment of their legal fees.
Even if permitted, the original buyer remains liable unless a full novation (replacement) is agreed — which is rare.
Any change must be made with the seller’s solicitor’s cooperation, and must be completed before the transfer is submitted to HM Land Registry.
What happens if you proceed without consent?
Trying to alter the name or transfer the purchase behind the seller’s back can lead to:
- A breach of contract.
- Delays in registration at Land Registry.
- Refusal to complete the sale.
- Loss of deposit and potential legal action.
Could I be taken to court if I don’t complete?
Yes — if you fail to complete your auction purchase, the seller can take you to court to recover their losses. This is because buying a property at auction creates a legally binding contract the moment the auctioneer’s hammer falls.
What you’re committing to
By placing the winning bid, you agree to:
- Pay the 10% deposit immediately.
- Complete the transaction within a set timeframe (usually 14 or 28 days).
- Comply with all the contract terms and special conditions in the auction legal pack.
If you breach any of these terms — for example, by failing to complete — you are in contractual default.
What the seller can do
If you don’t complete, the seller is entitled to:
- Keep your deposit.
- Sue you for their losses.
This may include:
- The difference in resale value (if they later sell for a lower price).
- Their legal and auction costs.
- Additional expenses, such as bridging finance or abortive purchase costs.
What happens if I cause the seller to lose money?
If you fail to complete the purchase after successfully bidding at auction, not only will you lose your deposit — you may also be liable for the seller’s financial losses.
Why?
When the auctioneer’s hammer falls, you are legally bound to buy the property under the terms set out in the auction legal pack. If you later breach that contract by not completing, the seller has the right to:
- Keep your 10% deposit
- Claim compensation for any additional losses they suffer as a result of your breach
Examples of what you may have to pay
If the seller resells the property after you default, you could be liable for:
- The difference in price if the property sells for less than your winning bid
- Legal and auction fees they incur for re-listing the property
- Interest and holding costs if they face delays in completing another transaction
- Any other direct losses, such as abortive costs for their onward purchase or mortgage arrangements
These claims can run into thousands of pounds, and there is no upper limit set by law — it depends on the actual financial loss the seller can prove.
Legal action
The seller may issue court proceedings to recover their losses. If successful, the court may:
- Order you to pay compensation
- Enter a County Court Judgment (CCJ) against you
- Add interest and legal costs to the amount you owe
A CCJ can seriously damage your credit rating, making it difficult to get a mortgage, credit card, or loan in the future.
Key warning
- You will lose your deposit
- The seller may take legal action against you, and you could face:
- A County Court Judgment (CCJ)
- Additional legal costs
- Negative impact on your credit rating or ability to borrow in the future
- You may also be liable for further losses the seller suffers, such as:
- If the property has to be re-sold at a lower price
- The seller’s additional legal or auction fees
- Administrative or holding costs
Summary
The deposit is just the beginning. If you fail to complete, you may have to pay far more than 10%. The seller can — and often will — pursue you for every penny they lose as a result of your default.
If you’re not 100% certain you can proceed with the purchase, you should not bid.
Can I get my deposit back if I pull out?
You will have paid a 10% deposit on the day of the auction. If you fail to complete the purchase, the seller is entitled to keep the full deposit.
This is standard practice in auction transactions and is fully enforceable under contract law.
It doesn’t matter whether:
- You are unable to obtain mortgage or bridging finance.
- You discover legal issues after the auction.
- You have a change in personal circumstances.
- You feel the property is no longer suitable.
Once your bid is accepted, you are contractually bound to complete the purchase.
What happens to the deposit?
Unfortunately, you cannot get your deposit back if you decide to pull out after winning a property at auction.
At auction, contracts are legally exchanged immediately when the auctioneer’s hammer falls. From that moment, you are fully committed to buy the property, on the terms set out in the auction legal pack. This is true even if you later change your mind, run into funding issues, or discover something about the property that you do not like.
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.
Can I use a company or SPV to buy the property?
Yes, you can buy an auction property using a limited company or Special Purpose Vehicle (SPV) — and this is a common approach for investors, especially in the buy-to-let or commercial market. However, it comes with additional legal, administrative, and financial requirements that you need to understand from the outset.
What is an SPV?
An SPV is a limited company set up solely to hold property assets. It is typically:
- Registered with Companies House
- Often structured as a property investment vehicle (e.g., SIC code 68209)
- Used for tax efficiency, portfolio separation, or mortgage purposes
Some lenders will only lend to SPVs with a specific trading purpose and no other activity.
What documents will you need?
If you’re buying via a company, we will need to verify:
- Certificate of Incorporation
- Articles of Association
- Latest Confirmation Statement from Companies House
- Company accounts (if available)
- Proof of identity and address for all directors and significant shareholders
- Board resolution authorising the purchase
We are also required to carry out AML checks on the company and its owners under UK money laundering regulations.
What about funding?
- Most high street lenders will not lend to new SPVs — so you may need a specialist lender or broker.
- If using bridging finance, ensure your lender is aware you are buying via a company.
- Company purchases are not eligible for first-time buyer SDLT relief, and may be subject to the 15% SDLT flat rate for high-value residential properties if you do not qualify for an exemption (e.g. buy-to-let businesses).
Key considerations
Once the auction has ended, the buyer named on the memorandum of sale is bound by the contract.
- Check the auction pack carefully — some contracts forbid buyer substitutions, especially in repossession or probate sales.
- If you’re planning to buy through a company, decide this in advance and bid in the company’s name.
You cannot switch to a company buyer after the auction unless the contract allows it (known as “nomination” or assignment).
Summary
Buying through a company or SPV can offer flexibility and tax benefits, but it comes with added complexity. You’ll need to provide extra documents, ensure your lender is aligned, and check the auction contract for any restrictions. At Versus Law, we regularly act for corporate buyers and SPVs — and can guide you through the process smoothly and legally.
What is a memorandum of sale?
A memorandum of sale is a document issued after the auction that records the basic terms of the sale — including the buyer’s and seller’s details, the agreed purchase price, and any relevant special conditions.
In an auction context, it is typically signed immediately after the hammer falls and forms part of the legally binding contract.
Is it the same as the contract?
No — but it forms part of the contract in auction sales.
In a normal sale, the contract is negotiated and exchanged later. In an auction, the contract is exchanged at the fall of the hammer, and the memorandum of sale is the written record of that exchange.
It is usually accompanied or followed by the Special Conditions of Sale and the Common Auction Conditions, which together form the full contract.
What does it include?
- The property address.
- The buyer’s and seller’s names and solicitors.
- The auction sale price.
- Confirmation of the deposit paid (usually 10%).
- The completion date (often 14 or 28 days from auction).
- Any special conditions or additional fees noted in the auction pack.
Although it may look simple, signing the memorandum is not a formality — it is confirmation that a binding contract has been entered into.
It proves that a binding sale has taken place.It is used by both solicitors to progress the legal transfer of ownership. It is sometimes required by lenders, bridging companies, or insurance providers to confirm that a purchase is underway.
If you are buying at auction, you’ll need to sign the memorandum immediately and ensure that the buyer details (individual or company) are correct and final — as you cannot change them later without risk.
Summary
The memorandum of sale is the document that confirms and records your auction purchase. It is a legally significant part of the contract and should be signed carefully. At Versus Law, we use the memorandum to begin post-auction work immediately — ensuring you meet all contractual deadlines.
What it means to be a successful bidder at auction
At a property auction, the legal process is very different from buying through an estate agent. As soon as your bid is accepted — when the auctioneer’s hammer falls — you are legally bound to buy the property.
This moment counts as exchange of contracts. There is no cooling-off period and no chance to change your mind or renegotiate terms. You are committed to completing the purchase in accordance with the contract and auction conditions.
What you’re agreeing to
When you successfully bid at auction, you are agreeing to:
- Exchange contracts immediately.
- Pay a deposit on the day – usually 10% of the purchase price.
- Complete the purchase within a fixed period, typically 14 or 28 days, as specified in the special conditions of the auction contract.
- Accept the property in its current condition and subject to all matters in the legal pack, whether you’ve reviewed them or not.
Before you bid
Before bidding at auction, it is essential that you:
- Review the auction legal pack (ideally with legal advice).
- Inspect the property or arrange a survey (where possible).
- Understand all contractual obligations, including any extra fees or search costs.
- Ensure that your finances are in place — whether you are using cash, a mortgage, or bridging finance — and that funds will be available in time for completion.
Summary
The auction contract is final. Once the hammer falls, you cannot withdraw without consequences. If you later decide not to go ahead, you risk:
- Losing your deposit.
- Being liable for the seller’s legal and resale costs.
- Facing court proceedings and a County Court Judgment (CCJ).