In a conditional auction if the highest bidder is at or above reserve at the close of the auction, the buyer must place a non-refundable reservation fee to secure an option to exchange contracts on the property. The buyer is then given 28 days to exchange contracts and a further 28 days to complete the purchase. Failure to exchange contracts within the prescribed time frame may lead to the purchaser losing their deposit.
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.