The simple answer to this question is no. There is no cooling of period for either buyers or sellers once a contract has been exchanged.
Welcome to Connect UK’s Auction Academy – Here to answer all your property auction questions.
So, what does ‘no cooling off period; mean for you?
When the gavel falls it means the lot has been sold to the highest bidder. This, as we know, is the point in which contracts are exchanged. This is the point when there is no ‘cooling off period’ or risk of fall throughs.
The sale from this point on is legally binding and both the buyer and seller have 28 days to complete, unless special conditions apply.
Sellers – Upon the fall of the gavel your property or land is sold. If, for any reason, the bidding doesn’t make the reserve price, set by you, the lot will remain unsold and the exchange of contracts will not take place.
Buyers – If you are the highest bidder of a lot, you have just exchanged. The sale is legally binding from the moment the gavel falls and you will be required to pay a deposit and any fees set by the auction house. The remainder of the sale price will be due upon completion, within 28 days.
So, remember – the moment the gavel falls the property or land has been sold. Neither the buyer nor seller can pull out from this point on.
Check out our other videos on completion dates and what happens when you ‘accidentally’ bid.
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