Can I Buy at an Overseas Auction?

Property auctions in other countries can differ vastly from those in the UK, a boom in internet users and technology means overseas auctions are also proving popular among UK buyers who are looking to buy overseas.

Before you attend an auction overseas you should be aware that when you walk into a foreign auction house it will be a very different experience from stepping into an auction house in the UK.

Spanish/European Auctions

Spain is still the most popular destination for British sunseekers and those looking to buy cheap villas or apartments. In Spain the auction houses work in a similar way to here in the UK, but just like in the UK you will need to supply them with the necessary paperwork before the auction starts.

Before you buy anything in Spain you will need a Numero de identidad de extranjero, which translates as identification number for foreigners. Without an NIE number the Spanish tax authorities are unable to process any of your tax payments, which you will be liable for once you are a property owner in Spain.

The same rules apply in Europe as they do in England and you will be expected to pay a 10% deposit no more than 14 days after winning your bid. It is wise to visit the property before hand if you can and attend the auction in person. Most auctions will normally happen in the country's language, so you might want to brush up on your language skills before you attend.

US Auctions

Attending a US auction can be quite daunting, while the UK takes a more reserved approach to selling properties, the US takes a more boisterous approach. A recent trend in the US is for auction houses to sell repossessed properties on mass. They want to attract as many people as possible and often hundreds, if not thousands can be in attendance at a mass auction. This method is however reserved for property that has previously been repossessed.

It does mean that there are bargains to be had. Most US auction houses will be open to as many people as they can cram in, and often before the event they will put the lots online. In some cases it may be possible to bid live online as the auction is taking place.

Alternatively, if you cannot attend the auction in person you can get a legal representative to act on your behalf if you give them power of attorney and set them a limit. Attending an auction in the US is a very casual affair and attendees will often not get dressed up, so don’t worry about looking smart.

Middle East Property Auctions

Surprising property auctions in the Middle East and countries like Dubai have not yet taken off. They are fairly new to the countries and have not proven very popular so far with only few attendees. If you plan to buy at an auction in the Middle East you will be in the minority.

This unfortunately does not mean that there are bargains to be had, but merely that the properties will go back to base before being reauctioned again. It is a good idea to employ an agent in the Middle East if you plan to buy there, you should let them do your bidding for you once you have set them a limit.

There is nothing stopping you from attending an auction overseas, but if you intend to buy you will need to make sure you have the correct paperwork in order. Most auction houses will employ in-house legal experts and solicitors, so if you have any queries about what you need you should contact them a few months in advance and discuss this with them.