MRT1 LO2: Buying property at auction
1,174 words · checked 2026-10-30 · Pro
Auctions are a fast and certain way to buy property, but they reverse the normal order of a purchase. In a private treaty sale, the buyer gets a mortgage offer, surveys and searches before exchanging contracts. At an unconditional auction, the contract is formed in the room or online, so all of that work must be done before bidding. LO2 of the CeMAP® MRT1 syllabus tests two points: why funding must be in place up front, and the two methods of auction sale.
Key terms
| Term | Meaning |
|---|---|
| Lot | A property offered for sale at the auction |
| Guide price | The auctioneer's published indication of the expected price. RICS requires guides to reflect the anticipated reserve at the time they are published. |
| Reserve | The minimum price the seller will accept; the auctioneer cannot sell below it |
| Legal pack | Documents prepared by the seller's solicitor: conditions of sale, special conditions, title, searches, replies to enquiries, EPC |
| Special conditions of sale | Terms specific to the lot, including any completion date and extra costs the buyer must pay |
| Addendum | Late changes to the particulars or legal pack, published by the auctioneer |
| Memorandum of sale | The record signed after the hammer falls: buyer, price, deposit and the buyer's solicitor |
| Common Auction Conditions (CAC) | Standard conditions published by RICS and used by most auctioneers |
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