Auction Special Conditions Explained

What Are Special Conditions of Sale?

Every UK property auction operates under two sets of contract terms: the standard conditions (a set of pre-agreed baseline terms, either the Standard Conditions of Sale or the Common Auction Conditions) and the special conditions. The special conditions are unique to each individual lot and are drafted by the seller's solicitor specifically for that sale.

Where the standard conditions and special conditions conflict, the special conditions take precedence. This means a seller can, and frequently does, override defaults that a buyer might assume apply — extending their liability exclusions, shortening deadlines, adding costs, or changing how the completion process works.

When the hammer falls at auction, you are contractually bound to every word of the special conditions. There is no grace period, no ability to renegotiate, and no right to rescind because you didn't read them. This is why experienced investors always read the special conditions before anything else in the pack.

The Structure of Special Conditions

Special conditions typically follow a standard opening — specifying the property, the parties, the purchase price, the deposit amount and how it is held, and the completion date. But the real substance comes in the individual numbered conditions that follow, and the quality and fairness of those conditions varies enormously between sellers and their solicitors.

On a straightforward owner-occupier sale, special conditions are often brief — a few clauses covering the completion date, any chattels included, and perhaps a retention. On a repossession or estate sale, they can run to ten pages of exclusions, liability limitations, and buyer obligations that significantly shift the risk allocation away from the seller.

Seller's Legal Costs Clauses

One of the most common — and most financially significant — special conditions is the seller's legal costs clause. This requires the successful buyer to pay the seller's solicitor's fees as part of the purchase, in addition to their own legal costs.

The amount is usually stated within the special conditions, typically as a fixed sum. Common figures are £750 + VAT, £1,000 + VAT, £1,200 + VAT, or occasionally "the seller's reasonable legal costs" with no cap stated. At higher lot values this sum can reach £2,000–£3,000.

This cost is real and immediate — it is deducted from the deposit or collected at completion — but it is never reflected in the guide price. A lot with a £150,000 guide price and a £1,200 seller's costs clause has a true cost of at least £151,200 before your own solicitor's fees, SDLT, and any other purchase costs are added.

Short Completion Periods

Standard auction completion is typically 20 working days from the date of exchange (which is the auction date itself). Many sellers attempt to accelerate this through a special condition specifying a shorter completion period — commonly 14 working days, and occasionally as few as 10.

A shortened completion period creates significant practical problems for buyers who need mortgage finance. Most mainstream lenders cannot formally complete a mortgage offer and release funds in 14 working days, particularly where a valuation survey is required. Even bridging lenders — who are specifically designed for speed — can struggle if there are any title complications.

If you are buying with a mortgage, a 14-day completion condition effectively means you need to have your mortgage offer in place and your solicitor instructed before the auction date, not after winning. If completion fails through your inability to fund, you lose your deposit and may face additional damages.

Deposit Amount and Non-Standard Deposit Terms

The standard auction deposit is 10% of the purchase price, paid on the fall of the hammer. Some special conditions alter this — requiring a higher percentage deposit (15% or 20%), specifying a minimum deposit amount (e.g. "the higher of 10% and £5,000"), or changing how the deposit is held.

Where the deposit is held as agent rather than stakeholder, the seller can access it before completion. This is more common on corporate-seller auction lots and means your deposit is at risk if the seller becomes insolvent between exchange and completion.

Exclusion of Liability Clauses

Repossession sellers, estate sellers, and other sellers who have no direct personal knowledge of the property routinely include broad exclusion of liability clauses in their special conditions. These clauses typically state that the seller makes no representations or warranties about the condition, planning status, occupancy, or history of the property, and that the buyer purchases "as seen" with full knowledge that no searches, surveys, or investigations have been carried out on their behalf.

Such clauses mean you cannot sue the seller for non-disclosure — even if a significant defect is discovered after completion that they knew about or should have known about. In practical terms, what is not in the legal pack and not raised before auction is your problem after auction.

Buyer's Premium

Some auctioneers — particularly those using online or hybrid auction formats — charge a buyer's premium in addition to the purchase price. This is typically 1.5–3% of the purchase price plus VAT and is payable immediately on winning the lot. It is separate from the deposit.

Buyer's premiums are sometimes charged by the auctioneer, sometimes by the seller, and sometimes by both. They are almost always stated in the special conditions, though they may also appear in the auctioneer's terms and conditions rather than (or in addition to) the legal pack. Always check both sources before bidding.

Non-Merger and "As Is" Conditions

A non-merger clause states that the warranties and representations in the contract (if any) do not merge into the title on completion. This protects the buyer's ability to claim post-completion for pre-completion misrepresentations. However, some special conditions attempt to limit or remove this protection.

"As is" or "sold with full knowledge" conditions are standard on repossessions and estates but occasionally appear on owner-occupier lots too. Always read these clauses carefully — they define what you are agreeing to accept at completion, regardless of what you discover afterwards.

Overage and Clawback Provisions

Some special conditions include an overage clause — a provision giving the seller a right to share in any future increase in value arising from development, planning permission, or change of use. Overage provisions can attach to a title for 25 years or more and significantly affect the property's development potential and mortgageability. If an overage clause appears in the special conditions, read it extremely carefully and take solicitor advice before bidding.

What PackCheck Flags in Special Conditions

PackCheck specifically analyses the special conditions document for every pack uploaded. The review identifies: seller's legal costs amounts; non-standard completion periods (under 20 working days); non-standard deposit amounts or holding arrangements; buyer's premiums; broad liability exclusion clauses; overage and clawback provisions; unusual title covenants or restrictions; and any condition that PackCheck's analysis identifies as materially different from auction market norms.

Every flagged condition is explained in plain English with the specific clause text highlighted — so you know exactly what you are agreeing to before you bid.

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