Buying at Auction

The most important point to understand about auction purchases in Ireland is that the usual order of events is reversed. On the open market, a buyer typically makes an offer, has a survey carried out, negotiates, and only then signs a binding contract. At auction, all of the legal work, financial arrangements, and surveys must be completed before you bid. The moment the hammer falls (or an online auction times out, and you are the highest bidder), you are bound by the contract. For that reason, it is essential to have an experienced conveyancing solicitor engaged well in advance of auction day.

At McCarthy + Co Solicitors LLP, our conveyancing team is led by Joseph McCarthy, who has supported many individuals and investors through the auction process. Our services include the following.

Reviewing the legal pack

Before you bid, it is essential to obtain and review the legal pack for the property. The pack is prepared by the seller’s solicitor and contains the Contract for Sale, title documents, folio and map, planning searches, the BER certificate, and any special conditions. Our solicitors will examine these documents closely for any issues that could affect the value of the property, your ability to complete the purchase, or your use of the property after completion. Common issues include rights of way, boundary discrepancies, unauthorised extensions, planning conditions that have not been complied with, management company charges, and unusual special conditions that shift risk onto the buyer.

Raising pre-auction enquiries

If the legal pack raises questions or leaves matters unclear, we will raise pre-auction enquiries with the seller’s solicitor. Sellers are not obliged to answer, but most will provide clarification rather than see potential bidders drop out. Where a seller refuses to amend a problematic special condition, we will advise you on the risk and whether the property is still worth bidding on.

Providing guidance before you bid

We will explain the auction process, the binding nature of the Contract for Sale, and any property-specific risks we have identified. If you are bidding through an online auction platform such as BidX1, Offr, or iamsold, we will also explain the registration requirements and any non-refundable administration fees charged by the platform.

Supporting you on auction day

Although it is not always necessary, we can be available on auction day to provide immediate advice, particularly if the auctioneer announces late amendments to the conditions of sale. This is more common than many buyers expect, and a short exchange before the hammer falls can save you from signing up to a materially worse deal than you reviewed in advance.

Completing the purchase after the auction

Once you are the successful bidder, you will usually pay a deposit of 10% of the purchase price on the day and sign the Contract for Sale. The balance is usually due within 28 days, although the contract may specify a different closing period. During that window, we will finalise the conveyancing, liaise with the seller’s solicitor, arrange for your mortgage funds to be drawn down, and attend to the transfer of ownership and registration of your title with Tailte Éireann.

Why preparation matters

Auction purchases carry higher risk than open-market purchases because the standard buyer protections do not apply. Properties at auction are sold on an “as is” basis. There is no “subject to survey” or “subject to finance” clause, and no cooling-off period. Once you are the highest bidder, you are legally committed, and the 10% deposit is forfeited if you fail to complete. For that reason, you should always:

• Commission an independent survey by a qualified surveyor, engineer, or architect before auction day. A structural survey is strongly recommended, and where the property is older or appears to have been extended, a planning search should also be carried out.

• Speak with us as early in the process as possible. We will need sufficient time to acquire and review the auction contract and title documentation, raise pre-contract enquiries, carry out searches, and prepare a letter of advice to you.  If you contact us within a few days of the auction, it may be too short notice for us to carry out the checks we would recommend before bidding.

• Have your mortgage approval in place in writing, not merely in principle. Your lender must be aware that the property is being bought at auction, and the loan offer must be capable of being drawn down within the contractual completion period.
• Set a maximum bid in advance and stick to it. Overbidding in the heat of an auction is one of the most common ways buyers get into difficulty after the hammer falls.

If you hope to purchase at auction using a mortgage, it is essential that you contact us ahead of the auction and there is sufficient time for us to communicate with your bank to ensure they are happy with the terms of the auction contract.  In most cases, the contracts offered at auction will contain conditions that your lender will need to approve before they release funds.  It is very risky to bid at auction if you will be relying on a mortgage to fund the purchase unless your bank has confirmed to your solicitor that the terms of the contract are acceptable. Usually, the process of having a bank confirm that it will accept the auction contract takes several weeks to complete.

For further assistance with purchasing a property at auction, please complete our confidential Property Consultation Request, and we will come back to you as soon as we can. Alternatively, call our office to arrange a time to speak with a solicitor.