A property sold following repossession or through a receiver should be assessed on its own contract, condition and funding requirements. A low asking price does not establish value or remove the need for independent checks.
Establish the sale process first
Ask who is selling, how offers are handled and what timetable is proposed. Give the sale particulars and draft contract to your solicitor. The authority to sell, the title being transferred and the seller’s obligations need legal examination rather than an assumption based on the listing.
If the sale is by auction, arrange the relevant legal review and property investigation before bidding. The Law Society warns that an auction purchase involves an immediate binding contract and deposit. Do not use the slower stages of a private treaty purchase as your auction plan.
Match the funding to the actual property
Ask the lender whether its proposed mortgage can proceed for this property and what conditions remain. Keep an independent condition report separate from a lender valuation. Limited information from a seller is a reason to investigate, not proof that an issue is absent.
Prepare separate allowances for purchase costs, essential work and a period when the home may not be ready to occupy. Obtain estimates for known work rather than treating the difference between guide price and another listing as a guaranteed saving.
Find the conditions that change your risk
| Focus | Action or question |
|---|---|
| Sale method | Establish whether this is an auction or another process and obtain its actual conditions. |
| Information gaps | Ask the solicitor and surveyor what cannot yet be established about title or condition. |
| Funding | Ask the lender how the documented property and sale timetable affect the proposed loan before committing. |
Your next step
Compare the scope of your solicitor’s work