Below is a comprehensive glossary that explains key terms used in UK property auctions. This guide is designed to help you understand the vocabulary and processes involved, so you can approach an auction with confidence.

Auction
The auction is the event where properties are sold to the highest bidder. In the UK, auctions can take place in person, online, or via a hybrid model. The process culminates with the fall of the hammer, which signifies that the property has been sold to the winning bidder.

Reserve Price
The reserve price is the minimum amount that the seller is willing to accept for the property. This figure is kept confidential and may not be disclosed to potential buyers. If bidding does not reach the reserve, the property will not be sold at auction.

Guide Price
The guide price is an indicative figure provided in the auction catalogue to give bidders an idea of the property’s value. Unlike the reserve price, the guide price is published and can sometimes be lower than the final sale price, as it is designed to attract interest and encourage competitive bidding.

Legal Pack
The legal pack is a set of documents prepared by the seller’s solicitor that contains crucial legal information about the property. It typically includes the title register, title plan, local authority searches, special conditions of sale, and, if applicable, details about leases or tenancy agreements. Reviewing this pack is essential before placing a bid.

Exchange
Exchange refers to the formal process where contracts are exchanged between the buyer and the seller after a successful bid. At auction, this occurs immediately upon the fall of the hammer, making the sale legally binding, with the buyer typically required to pay a deposit at this stage.

Completion
Completion is the final stage of the property transaction when the remaining balance is paid and the property ownership is transferred from the seller to the buyer. In UK auctions, completion usually occurs within 28 days of the sale, though this period can vary.

Deposit
The deposit is usually 10% of the final bid price, paid by the buyer on the day of the auction. It serves as a commitment to the purchase. Failing to complete the sale after paying the deposit can lead to the loss of that deposit and potentially further legal consequences.

Auctioneer
The auctioneer is the professional who conducts the bidding process at the auction. They manage the flow of the auction, call for bids, and ensure that the terms of sale are followed. Auctioneers play a key role in maintaining transparency and discipline throughout the event.

Freehold vs. Leasehold

• Freehold: When a property is freehold, the buyer owns both the property and the land on which it stands outright.
• Leasehold: With leasehold properties, the buyer purchases the right to live in the property for a set number of years, but the land remains owned by a separate freeholder. Details of lease terms are normally included in the legal pack.

Proxy Bid
A proxy bid is a system where a bidder authorises the auctioneer to bid on their behalf up to a pre-specified maximum amount. This can be useful for buyers who cannot attend the auction in person or who prefer not to actively bid in real time.

Tenancy Agreements (if applicable)
For properties that are tenanted, the legal pack may include copies of tenancy agreements. These documents outline the terms under which the tenants occupy the property, including rent details and tenancy duration. Understanding these terms is important, especially for investors or buyers planning to take over existing tenancies.

This glossary provides an overview of the essential terms you will encounter in UK property auctions. Being familiar with these will help you navigate the auction process more effectively and make informed decisions when bidding.