The AffordaBid Property Auction Auction A–Z
Property auction terminology explained in plain English.
Property auctions shouldn't feel like learning a new language. But with terms like reserve prices, legal packs and special conditions of sale, it's easy to see why buyers and sellers can feel overwhelmed.
Whether you're buying your first home, investing in property or considering selling at auction, our jargon-free A–Z explains the terms that matter, helping you navigate the process with confidence.
A
Anti-Money Laundering (AML)
Legal checks used to verify buyers and sellers and help prevent financial crime.
Auction Conditions
The contractual rules governing an auction and the resulting property sale.
Auction Legal Pack
The collection of legal documents buyers need to review before bidding, prepared by the seller's solicitor.
Authority to Sell
Evidence that someone has the legal right to sell a property or act on behalf of its owner.
B
Binding Contract
A legally enforceable agreement. In a traditional auction, this generally arises when the auction successfully concludes.
Buyer's Premium / Buyers Fee
A fee charged to buyers.
C
Common Auction Conditions (CAC)
Standard property auction conditions published by RICS, used alongside property-specific Special Conditions of Sale.
Completion
The final legal stage when the balance of the purchase price is paid and ownership transfers to the buyer.
D
Deposit
Money payable by the successful bidder, commonly 10% of the purchase price unless the auction conditions specify otherwise.
E
Exchange of Contracts
The point at which a property sale becomes legally binding. In a traditional auction, this generally occurs when bidding successfully concludes.
F
Freehold
Ownership of a property and the land it stands on, subject to any applicable legal rights or restrictions.
G
Guide Price
The advertised price indication for an auction property. It is not necessarily the amount the property will sell for.
H
Hammer Price
The final accepted auction bid. In an online auction, this is the successful bid determined under the platform's rules.
L
Leasehold
The right to own and occupy a property for a fixed period under a lease, rather than owning the land outright. Leaseholders may be required to pay ground rent and service charges and must comply with the terms of the lease.
Letters of Administration
A legal document giving administrators authority to deal with a deceased person's estate, commonly where there is no valid will appointing an executor.
M
Material Information
Important details about a property that prospective buyers need to make an informed purchasing decision.
Mortgage in Principle
An indication of how much a lender might be prepared to lend, subject to further checks and approval.
Mortgageability
Whether a property is likely to meet a lender's requirements for mortgage finance.
N
Notice to Complete
A formal notice that may be served following a failure to complete, requiring completion within the period specified by the contract.
P
Pre-Auction Offer
An offer made before an auction concludes, which the seller may consider accepting.
Proof of Funds
Evidence that a buyer has sufficient money or finance available to fund the purchase.
Probate
The legal process of administering a deceased person's estate. A Grant of Probate confirms an executor's authority.
R
Reserve Price
The confidential minimum price at which the seller has authorised the property to be sold at auction.
S
Searches
Legal enquiries into matters such as planning, drainage, environmental risks and local authority records.
Sole Agency
An arrangement appointing one agent to market a property, with commission entitlement governed by the agency agreement.
Special Conditions of Sale
Property-specific contractual terms prepared by the seller's solicitor. These may cover deposits, completion deadlines, additional costs and other obligations.
Success Fee
The fee payable to an auctioneer in accordance with the seller's agency agreement.
T
Tenanted Property
A property sold with an existing tenant or tenancy arrangement. Buyers should investigate the tenancy terms and associated obligations.
Title
The legal ownership of a property or land, including the rights, interests and restrictions associated with it. Title documents establish who owns the property and whether there are any legal matters affecting its ownership or use.
Traditional Auction
An auction where a successful sale generally creates an immediately binding contract, subject to the auction conditions. This is the model used by AffordaBid.
V
Vacant Possession
A requirement for the property to be handed over free from occupants and other impediments to possession, as specified in the sale contract.
W
Withdrawal
Removal of a property from auction before a binding sale has occurred. For example the seller has accepted a preauction offer.
Y
Yield
The annual rental return on a property investment, usually expressed as a percentage. Gross yield is calculated before running costs, finance costs and tax.
Property auctions aren't complicated. They're just sometimes explained that way.
At AffordaBid, we're making property auctions more accessible, transparent and affordable. We believe everyone deserves to understand the process without getting lost in the jargon.
Still have questions? Just ask. We're always happy to help, whether you're ready to make your move or simply exploring your options.
AffordaBid - outbidding expectations, not your budget!
This glossary provides general guidance for property auctions in England and Wales. It does not replace professional legal or financial advice. Always review the relevant auction conditions and property legal pack before bidding.
