Auctions are becoming an increasingly popular way to buy and sell property, with the top 20 commercial and residential auctioneers seeing a 16 per cent increase in property sold at auction in 2004, at a total value of £3.38bn.

More people are turning to auctions to buy and sell property because of the simplicity and speed of the process, with deals agreed on the day. Auctions have become more open and transparent, and often an ideal place to find competitively priced properties.

"Auctioning has the advantages of certainty and transparency," notes Charles Smailes, Chair at the National Association of Estate Agents auctioneering group. "When the hammer falls, the deal is done - and this can make selling a property at auction an attractive proposition." Buyers too see the appeal of a quick conclusion.

One of the reasons for the improvement in transparency is the use of a standard set of Common Auction Conditions, introduced by the Royal Institution of Chartered Surveyors (RICS) in 2002. These have now been adopted by most auction houses and used by vendors' solicitors. Recently RICS has published a new edition of Common Auction Conditions, designed to improve the auction process for all those involved, which comes into effect this week.

The conditions have been created by buyers, sellers, solicitors and auctioneers in an effort to make the legal process of buying and selling property at auction more transparent and easier to understand.

But a standard set of conditions is no substitute for being thorough in your investigations. NAEA’s Charles Smailes, said: "[...auctions] have become more popular as consumers become increasingly aware of the benefits. However, those considering this method should be aware that the auction market is not immune from the same conditions that affect the wider housing market."

"For example, the suitability of a property for auction must be assessed and the motivation of the seller taken into account. An unusual property or an owner looking for a quick sale may do well to auction their property. However, a property owner that has not received sound advice from an expert who understands their situation entirely may be disappointed with the result."

So what are the precautions you should take when buying a property at auction? Apart from the new Conditions available at www.rics.org/cac, RICS has a very good guide on their website as a .pdf file 

 Here are some of their top tips:

• If you're thinking of buying or selling a property at auction, it may be in your interests to make sure the auctioneer is an RICS (Royal Institution of Chartered Surveyors) member.
  Using the services of RICS members offers real peace of mind because:

1. They should give you clear, impartial and expert advice
2. They have strict codes of conduct to protect you - including proper insurance
3. RICS members have to update their skills and knowledge throughout their careers
4. You are further protected by a formal complaints service.

• As a potential buyer, your first step is to get a copy of the catalogue from the auctioneer. This contains the 'lots' or properties to be auctioned.
• Always deal with the auctioneer direct – this way you can be sure you have the most accurate and up-to-date information.
  And if you're viewing online, make sure you're looking at the auctioneer's official website, not one of the many listing sites that have no connection with them.
• Read thoroughly the Important Notice to Bidders, the Memorandum of Sale and the general conditions of sale. Hopefully they are using the Common Auction Conditions mentioned above.
• Try to get hold of the specific information relating to the lot (or lots) you ’re thinking of buying and from the seller's solicitor you should obtain the legal pack, which contains documents such as title information, searches and leasehold documents and any special conditions of sale.

• The guide price, which can change throughout the marketing period. It may be called something else such as 'the seller's minimum price expectation'
• Any addendum, which you can get before or at the auction – this tells you about any additions or amendments to the catalogue that have come up and might affect the sale of the property.
• It's worth keeping in regular contact with the auctioneer so you know about any addenda or changes to the guide price, and if the lot is sold or withdrawn before the auction
• Before you decide whether or not you should bid, check the property to make sure the information you've been given is correct.
• It's worth getting professional advice and a valuation and a survey before you buy.
• You need to arrange finance – both for the exchange (normally a 10% deposit) and completion. If the auctioneer is following RICS Common Auction Conditions, completion will be 20 working days after the auction.
• Once you've decided to bid, tell the auctioneer you're interested in the property and keep in regular contact.
• Find out what the auctioneer’s procedures are for proxy, internet or telephone bidding Also ask about signing the Memorandum of Sale, and responsibility for insurance on the property from and including the auction day.
• Find out about how your ID will be checked, how the deposit is to be paid and get pre-registration.

• Make sure you arrive at the auction in time to check the addendum for any changes relating to the lot you want.
• Listen out for any announcements about the lot in the auctioneer's opening remarks.
• If the lot is not sold, make sure you leave your contact details with the auction team so you can find out about any post auction sale.

Of course auctions are not all about buying and RICS has plenty of information to help width selling too. If you want to sell a property at auction, first ask the auctioneer's advice about its saleability, and what they'd recommend as the guide and reserve prices.

Once you've checked the date and venue of the proposed auction, ask the auctioneer for details of the terms of appointment. You need to agree these before the auctioneer does anything.

Auctioneers have to follow a number of statutory regulations, including the Estate Agents Act 1979, and for chartered surveyors, the RICS rules of conduct.

The terms of appointment will include:

• Their commission if the property sells at auction, or if it's withdrawn or sold before the auction, or sold after the auction
• Any extra charges and whether you're liable for them
• The duration of the appointment
• The terms of appointment will also include the auctioneer's right to:

1. End or change the appointment
2. Instruct your solicitor to prepare the legal pack and special conditions of sale, and to attend the auction
3. Act on your behalf in the auction room, including signing the Memorandum of Sale
4. Manage things in the auction room, including the bidding increments
5. Sell the property at the reserve price or above.

You will also have to agree procedures with the auctioneer to deal with amendments to the reserve and guide price, putting up sale boards at the property, exclusive advertising, including cost, inspections by potential buyers plus a range of procedures as to how he will deal with the bidding.

The terms of appointment will include a warranty that the information you've supplied, or has been supplied on your behalf, is accurate. You also need to be aware of any disclaimers.

In most cases, the auctioneer will be your sole agent. However, if you want to take on an associate auctioneer, they'll need to agree their respective responsibilities, duties and fees with the auctioneer.

The auctioneer will also be obliged to carry out money laundering checks, including proof of identity and address.

For more detailed information check out the RICS website www.rics.org/propertyauctions.