Upon the exchange of contracts, you often gain an insurable interest in your newly acquired property. So, although you have not completed, it comes ‘on risk’, meaning that you have the responsibility to insure it immediately under the terms of the auctioneer’s conditions of sale. To cover this liability, you will need to find an insurer that can provide same day cover.
This 'Glossary of Terms' – those commonly used in the realm of property auctions, is monitored and updated regularly to remain a current reference point.
If there are any terms that you have come across which we have not included here and you are unclear about, please do get in touch and we will be happy to provide you with a clear explanation and add the new term to our list.
For more information on buying or selling at a property auction, have a read of our guide to buying at auction.