Knowledge and Resource Hub

Knowledge & Resources

A Practical Guide for Sellers & Buyers

Opal Auctions provides a structured and transparent route to buying and selling property.
Below is a simple guide to help you understand the process, who you may need to engage, and the key considerations before proceeding.

For Sellers

Selling Property at Auction – How It Works

Selling through auction provides certainty and speed.

Your property is listed with a prepared legal pack. Buyers bid competitively, and when the hammer falls, the sale becomes legally binding. Completion typically takes place within 28 days.

For landlords selling with tenants in situ, auction can offer a clear and committed exit route.

Who Should Sellers Speak To Before Listing?

Conveyancing Solicitor

A solicitor prepares the legal pack and manages the transaction.
They will:

• Review title documents
• Draft special conditions of sale
• Respond to buyer enquiries
• Oversee completion

Early instruction avoids delays.

Tax Adviser

Selling a property may trigger Capital Gains Tax (CGT).

A qualified tax adviser can:

• Estimate CGT liability
• Identify allowable deductions
• Review timing of sale
• Confirm compliance obligations

Planning ahead prevents unexpected tax exposure.

Letting Agent (If Tenanted)

If your property is tenanted, your managing agent should:

• Confirm tenancy terms
• Provide rent schedule and compliance documents
• Support tenant communication
• Potentially retain management post-sale

Many professional buyers prefer properties with existing management in place.

What Is a Legal Pack?

A legal pack is prepared before the auction to give buyers confidence and reduce delays.

It typically includes:

• Title register and plan
• Special conditions of sale
• Tenancy agreement (if applicable)
• Property information forms
• Local authority searches (where ordered)

Providing documentation upfront reduces fall-through risk.

What Are Property Searches?

Searches are enquiries made with local authorities to reveal matters affecting the property, including:

• Planning permissions
• Building regulations
• Environmental factors
• Local authority notices

Ordering searches early speeds up completion.

Tax Considerations for Sellers

Sellers may need to consider:

• Capital Gains Tax
• Income tax up to completion
• Corporation tax (if held in a company)
• Mortgage redemption penalties

Independent professional advice is strongly recommended.

Professional Support

We work alongside trusted legal and tax specialists familiar with auction sales and tenanted properties.

If required, we can introduce you to:

• Specialist conveyancing solicitors
• Property tax advisers
• Transaction-focused legal teams

Our aim is to ensure sellers are informed, prepared, and supported.

For Buyers

Buying Property at Auction – What You Need to Know

Auction purchases are legally binding at the point of sale.

You must be fully prepared before bidding, including legal review and finance in place.

Before You Bid

Legal Review

A solicitor should review the legal pack before you bid.

They will:

• Identify unusual conditions
• Confirm title details
• Review tenancy documentation
• Highlight risks

Never bid without legal advice.

Finance Arranged in Advance

Completion usually takes place within 28 days.

Buyers should have:

• Mortgage agreement in principle
• Auction finance or bridging facility
• Proof of funds

Delays can result in financial penalties.

Buying Through a Limited Company (SPV)

Many investors purchase via a Special Purpose Vehicle (SPV) limited company.

An SPV may:

• Provide tax planning flexibility
• Align with lender requirements
• Ring-fence liability

Professional tax advice should be obtained before incorporation.

Tax & Regulatory Considerations for Buyers

Buyers should consider:

• Stamp Duty Land Tax (including additional property surcharge)
• Income tax or corporation tax on rental income
• Mortgage interest treatment
• Ongoing compliance obligations

Structuring correctly from the outset is essential.

Professional Introductions

We can introduce buyers to:

• Auction-experienced solicitors
• Specialist property tax advisers
• Auction and bridging finance brokers
• Company formation advisers

Our goal is to ensure buyers are properly structured and transaction-ready.

Important Disclaimer

The information provided is for general guidance only and does not constitute legal or tax advice. Buyers and sellers should seek independent professional advice based on their individual circumstances.