What Happens If a Buyer Fails to Complete After an Auction?

Buying a property at auction is legally binding. Once the hammer falls, the buyer is committed to completing the purchase, usually within 20 to 28 business days.

If the buyer does not complete on time, the seller’s solicitor can take a formal legal step called serving a Notice to Complete.

What is a Notice to Complete?

A Notice to Complete is a legal notice served on the buyer when they fail to finalise the purchase by the agreed completion date.

It gives the buyer a strict additional period of 10 business days to complete the transaction. During this time, completion becomes urgent and legally enforceable.

Key points to understand

When it can be served

The notice can be issued on or after the agreed completion date, as long as the seller is ready and able to complete the sale.

The 10 day completion period

The buyer then has 10 business days to complete the purchase. The day the notice is served does not count.

If the buyer still does not complete

The seller can usually cancel the contract and take further action, which may include

• Keeping the 10% deposit

• Charging interest on the outstanding balance

• Re selling the property

• Pursuing the buyer for additional financial losses

Legal costs

The buyer is often responsible for the seller’s legal fees and costs related to the Notice to Complete, depending on the contract terms.

Takeaway

At auction, completion deadlines are strict. If a buyer cannot complete on time, the financial consequences can be significant, which is why preparation before bidding is essential.