Buying at auction is faster than a typical high-street purchase — and less forgiving. The important difference is when the contract becomes binding, and that depends on the type of auction.
This is general information for England and Wales, last reviewed on 30 August 2026. Auction conditions vary by house and by lot. It is not legal advice. The solicitor who reviews the legal pack explains what that contract actually does.
How we work. Ethical Conveyancing is an introducer, not a regulated law firm. Panel solicitors regulated by the SRA do the legal work. Auction timetables are tight, so buyers who want a solicitor in place typically get a purchase quote before auction day, not after the hammer.
Get a purchase quote before auction day — fixed fees from £400 with no hidden extras. Tell us it is an auction purchase so the solicitor knows the timetable.
Two formats that are easy to mix up
A lot of confusion comes from treating every “auction” as the same process. They are not.
Traditional (unconditional) auction
This is the classic room, online or timed sale under conditions such as the RICS Common Auction Conditions.
- The catalogue and legal pack are issued before the sale.
- When the hammer falls on the winning bid, that is typically exchange of contracts. A memorandum of sale is signed and a deposit (often 10% of the hammer price, plus any buyer’s premium the catalogue specifies) is paid that day.
- The period after the hammer is not for deciding whether to buy. It is for completing. Many traditional lots complete in around 20–28 days (28 days is a common catalogue period).
- Pulling out after the hammer can have serious financial consequences under the auction contract.
Live, online and timed formats can all still be traditional/unconditional. “Online” does not automatically mean a slower, reservation-based sale.
Modern Method of Auction (MMOA)
Estate agents often use this for residential stock. It looks like an auction on the listing, but the legal moment is different.
- The winning bidder typically pays a reservation fee (sometimes instead of a traditional buyer’s premium).
- The property is then reserved. Exchange usually happens later, once the buyer’s solicitor has done the usual pre-contract work, often on a timetable of around 28–56 days (56 days is commonly advertised).
- Completion follows exchange on whatever date the contract then sets.
- The buyer is not in the same position as someone who has just bought under a traditional hammer. The reservation agreement and the later sale contract both need reading.
The lot listing and the auctioneer’s terms are the source for which model applies. The solicitor reviews those documents; this page does not classify a particular sale.
| Traditional / unconditional | Modern Method of Auction | |
|---|---|---|
| When the sale typically becomes binding | At the hammer (exchange) | Later, at exchange after the reservation period |
| What is paid on the day | Often a deposit (commonly ~10%) plus any buyer’s premium | Often a reservation fee |
| Time to complete after winning | Often ~28 days from the hammer | Reservation window often ~28–56 days to exchange, then completion |
| Legal pack | Reviewed before bidding | Still reviewed early; there is usually more time before exchange |
| Searches | Buyers who want them typically order before bidding | More room to order a standard pack before exchange |
What happens before bidding — the legal pack
On a traditional auction, due diligence belongs before anyone bids, not in the 28 days after.
A legal pack commonly includes the register, the lease (if leasehold), searches the seller has already obtained, special conditions, and replies to standard enquiries. Packs are sometimes incomplete or out of date. The solicitor’s job is to say what is in the pack, what is missing, and what that means for the contract sitting behind the lot.
Buyers who intend to use a mortgage also typically need a valuation and an offer that can complete on the auction timetable. Many lenders will not treat a traditional hammer as a moment they can still “think about it”.
Related reading: property searches and what exchange and completion mean.
A traditional auction timeline (indicative)
| Stage | Typical timing | What is happening |
|---|---|---|
| Catalogue and legal pack | 2–4 weeks before the sale (sometimes less) | Lot advertised; pack available; viewings |
| Solicitor instructed | Before auction day | Pack reviewed; finance lined up; questions raised while there is still time not to bid |
| Auction | The sale date or timed window | Highest bid at or above reserve wins |
| Hammer | That moment is typically exchange | Memorandum signed; deposit paid |
| Completion | Often ~28 days after the hammer | Funds, keys, SDLT return, Land Registry application |
Compare that with a standard sale, where offer-to-exchange can take months and GB averages run far longer. Auction speed is the point — and the risk.
After the hammer (traditional)
Because exchange has usually already happened:
- There is no “days 1–2: exchange of contracts” after the sale. That sentence on many guides (including our previous version of this page) is the wrong way round.
- Searches ordered after the hammer cannot unwind a traditional contract. They may still be needed for a lender, or to decide on insurance, but they are not a cooling-off exercise.
- Missing the completion date in the auction contract can have serious financial consequences. The solicitor working to that date will say what the contract requires.
Costs to budget for (market, not our quote)
Our legal fee comes from the purchase quote. Fixed fees start from £400 with no hidden extras. Auction speed and extra reading of the pack often mean a supplement on the legal fee — the quote engine shows that once the purchase is flagged as an auction.
Separately, auction houses and the market typically add:
| Item | Typical market position (not an Ethical figure) |
|---|---|
| Buyer’s premium | Commonly advertised around 2–3% of the hammer price on traditional sales; VAT treatment varies by catalogue |
| Reservation fee | More common on MMOA lots, sometimes instead of a premium |
| Deposit | Often ~10% at a traditional hammer |
| SDLT | Calculated on the price / consideration — see SDLT rates 2026 |
| Searches | Same families of search as a normal purchase; timing is the issue |
| Indemnity policies | Sometimes used where the pack shows a defect that cannot be fixed in time |
Comparison-site fee ranges for “auction conveyancing” are third-party averages. They are not our quote.
Why people use auctions anyway
- Speed and a fixed completion date on traditional lots.
- Certainty, once the hammer has fallen, that the seller cannot accept a higher offer the next day.
- Access to repossessions, probate and unusual titles that never reach the high street.
The trade-off is less time, a pack that may be thin, and a contract written for the auctioneer’s process rather than a negotiated chain.
Why people instruct through Ethical
Ethical Conveyancing is an introducer, not a regulated law firm. Panel solicitors do the legal work. What you get with us:
- Fixed legal fees — from £400 on a sale or purchase, from £230 on a remortgage. The legal fee we quote is the legal fee you pay. Disbursements (searches, Land Registry, and the like) sit on top.
- No Move, No Legal Fee — if the transaction does not complete, you do not pay our legal fee. Disbursements already incurred are still payable.
- A highly rated solicitor on our panel — not a call-centre file. Rated 4.9/5 or higher on review sites.
- A dedicated support manager and an online portal so you can track the file without chasing.
- A clear quote in under 60 seconds. We are not always the cheapest headline on a five-quote shop. We sell a fixed, itemised legal fee and a file you can actually follow.
Bidding soon? Get a purchase quote and send the legal pack to the solicitor before auction day.
Frequently asked questions
Is the hammer really exchange?
On a traditional / unconditional auction, yes — that is the usual position under conditions such as the RICS Common Auction Conditions: the hammer is exchange, with completion later (often about 28 days). On a Modern Method of Auction, the winning bid typically starts a reservation period and exchange comes afterwards. The catalogue for that lot is the authority.
Can I do searches after I win?
On a traditional lot, searches after the hammer do not undo the contract. Buyers who want a full search pack typically order it (or rely on a solicitor’s review of searches already in the pack) before bidding. Many lenders still expect searches before they will release funds.
How much deposit is paid on the day?
Traditional catalogues often specify around 10% of the hammer price, plus any buyer’s premium. MMOA sales more often take a reservation fee. Amounts differ by auction house.
Do I need a solicitor before auction day?
For a traditional auction, the legal pack is the document that tells a bidder what they are buying. Solicitors who take these on typically want the pack in time to read it. That is why the quote CTA on this page is before auction day.
What if my mortgage offer is not through yet?
Traditional completion dates are short. Lenders and solicitors often want the offer in place before anyone bids, because the hammer does not wait for underwriting. MMOA reservation windows are usually longer. Either way, the lender’s conditions apply.
Are auction legal fees higher?
The work is front-loaded and time-critical, so many firms charge a supplement. Our figure is the one on the purchase quote once the purchase is marked as an auction — we do not publish a separate auction tariff here.
Is this the same in Scotland?
No. Scottish auctions and missives work on a different legal system. See Scotland conveyancing.
Bidding soon? Get a purchase quote and send the legal pack to the solicitor before auction day.
Also useful: searches · exchange and completion · timelines · FAQs