Can We Buy Jointly at an Auction?

Auction houses can be confusing and the atmosphere fast-paced at times, which is why auction houses will not allow for two people to bid at the same time.

Even if you intend to own the property on a joint basis, only one of you will be allowed to take part in the bidding process.

Deciding Who Bids

Once you know which auction you are attending you will need to register with the auction house either beforehand or on the day. Once you have registered you will be given a lot number, you will need to decide who will be in charge of the lot number and who will do the bidding. Just because one of you is in charge of the bidding though it does not mean they are the one that owns the property.

Signing The Paperwork

Who owns the property all boils down to whose name is on the mortgage and who pays the 10% deposit. When you arrive at the auction you will be asked to register, most auction houses will allow only one person to register but some will allow you to register jointly. You shouldn’t worry if they will not allow you to register jointly for the property, as this does not impact who owns the property, it is only the mortgage deeds that can do this.

Preparing Your Mortgage

Who owns the property will boil down to whose name is on the mortgage deeds and the mortgage. You will need to decide whether you are going to own the property jointly, so an even split or whether one of you is going to own more and you own a smaller share. If you both decide to own an equal share you will need to pay the 10% deposit for the property jointly and make sure you get a receipt to state this.

If however you are not opting for a joint mortgage and one of you is going to own more than the other it is fine for just one of you to pay the deposit and the other get their name on the mortgage. If you intend to both own the property you will need to seek a solicitor’s advice and make sure you are legally on the mortgage by getting them to check out the contract.

Bidding With A Friend Or Family Member

Whether you are looking to buy jointly with your partner of a friend or relative the process will be the same. Things might get trickier when it comes to buying a property with a friend, especially if it is being bought as an investment opportunity. You will have to agree before the auction what your joint limit is and stick to it.

If one of you decides to do the bidding you should make sure the other one is in attendance to make sure you stick to your limit. There is no reason that buying jointly at an auction should be anymore tricky than buying through the conventional methods, but it does take more organisation and trust. You will need to scope out the properties beforehand and construct your strategy together.

Buying with your family, friends or a partner at an auction can be stressful, but it can also take away some of the strain of auction day as you are sharing the experience. The same rules apply when getting a joint mortgage and you should seek the advice of a solicitor to make sure you each get your correct share.