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).










