Our partners, Auction House UK, provide both Non-Conditional and Conditional auction sales service. It is important that sellers and buyers understand the difference and relevance of these two methods of auction sale:
Non-Conditional Auction – This is the 'Traditional' approach to auction whereby properties are offered alongside auction legal packs allowing prospective buyers to undertake purchasing due diligence ahead of bidding on a fixed auction venue in an open public auction. Successful bidders are legally bound to purchase 'under the hammer' paying 10% of the purchase price as deposit before they leave the auction and being typically required to complete 28 days after the event. Non Conditional auctioneering delivers greater speed and sales certainty over the Conditional method of auction, however the buyer pool is reduced in the approach as buyer profile is restricted to cash or auction finance purchasers who are not dependent on the sale of an existing property.
Conditional Auction – This is commonly known as the 'Modern Method of Auction'. It is a solos auction approach to selling whereby buyers bid for and option to buy the property, the winning bidder has purchase exclusivity to exchange contracts for a period of 28 days after which contract completion is set for 28 days later or sooner by agreement. The buyer pool is potentially greater in conditional auctioneering than the traditional approach as it enables buyers to purchase using conventional mortgage finance and can work for purchasers who have dependent sales or an onward purchase. The buyer is required to pay a reservation deposit upon winning the auction, should the buyers withdraw pre-exchange of contracts the purchaser forfeits their reservation deposit, however should the seller withdraw pre-contract the deposit is refunded in full.