Property investors are no strangers to the frustrations that can arise from conventional property transactions. Delays and complications often occur, even when both buyer and seller are eager to complete the transaction. In this article, we’ll explore a real-life case study involving the sale of a small piece of land and discuss how the auction process can be a more efficient and satisfying experience for all parties involved.

The Frustrations of a Conventional Land Sale
A small piece of land, currently used for car parking spaces, became the centre of a property dispute when the neighbour next door claimed they had been using it for years as their company’s car parking spaces. The current owners, who had recently acquired the property without any disclosed knowledge of discrepancies between physical and title boundaries, decided to offer the neighbour the chance to buy the land and resolve the situation.

Both parties agreed on a price, and solicitors were instructed to handle the transaction. However, over two months have passed, and there has been little progress. The solicitors haven’t even spoken on the phone once, and there is little redress for the frustrated buyer and seller. Changing solicitors mid-transaction is a possible option, but only one side can change their legal representative, which may not improve the situation.

The Auction Alternative: Speed, Efficiency, and Commitment
Imagine if this situation had been handled through an auction instead. The process would have been significantly faster and more efficient. Firstly, the seller would instruct their solicitor to prepare a legal pack, with a strict deadline of 2 to 3 weeks. This would ensure that the solicitor is under pressure to complete their tasks promptly.

Once the legal pack is ready, it would be uploaded for the buyer to review. The buyer’s solicitor may raise some enquiries, but the seller’s solicitor would have anticipated these questions and provided the necessary information in the legal pack. The buyer would then place their bid in the auction. Even if it were a one-person auction, the winning bid would automatically result in an exchange of contracts. The buyer would then have 20 working days to complete the transaction, or they would risk losing their deposit and face further consequences.