If you’re considering selling or buying a property at auction, understanding the difference between unconditional and conditional auctions is essential. These two types of property auction sales have different legal and financial implications — knowing which is right for you could save time, reduce risk, and maximise value.
What is an Unconditional Auction?
An unconditional auction — sometimes referred to as a “traditional auction” — is the most common and recognised format for selling property under the hammer.
Key Features of Unconditional Auctions:
- Legally binding contract on the fall of the hammer
As soon as the auctioneer’s gavel falls, the winning bidder is legally committed to purchasing the property. - 10% deposit paid immediately
The buyer must pay a deposit (typically 10%) on the day of the auction. - Fixed completion timeline
Completion usually takes place within 28 days (or as specified in the auction legal pack), making this a fast, efficient method of sale. - Ideal for motivated sellers
Sellers benefit from speed, security, and a legally binding transaction with no risk of the buyer pulling out. - Suitable for buyers with finances in place
Buyers must be ready with funds or pre-approved finance, as the commitment is immediate.
Best For:
- Repossessions
- Probate sales
- Tenanted or investment properties
- Sellers seeking certainty and speed
What is a Conditional Auction?
A conditional auction, often referred to as a “modern method of auction,” offers more flexibility for the buyer while still providing a clear commitment to purchase.
Key Features of Conditional Auctions:
- Reservation agreement, not a binding contract
When the auction ends, the buyer enters into a reservation agreement, not a full legal contract. - Non-refundable reservation fee
The buyer typically pays a reservation fee (often 3-5% or a fixed amount) to secure the right to purchase. - Extended timescales
Buyers usually have 28 days to exchange contracts and an additional 28 days to complete, offering more time for mortgage approval or surveys. - More accessible to residential buyers
Ideal for buyers who may need extra time to arrange finance, such as home movers or first-time buyers.
Best For:
- Residential buyers
- Buyers relying on mortgage financing
- Properties requiring surveys or further investigation
Which Auction Type is Right for You?
| Feature | Unconditional Auction | Conditional Auction |
| Legally binding on fall of gavel |  |  |
| Reservation fee paid | | |
| Completion time | 28 days (approx) | Up to 56 days |
| Buyer commitment level | High | Moderate |
| Risk of sale falling through | Low | Medium |
| Ideal for | Cash-ready buyers, investors | Mortgage buyers, home movers |
Conclusion
Both unconditional and conditional auctions offer unique advantages, depending on your goals and circumstances.
- If you’re a seller looking for certainty and speed, an unconditional auction is likely the best route.
- If you’re a buyer who needs more time to arrange a mortgage or survey, a conditional auction provides flexibility without the pressure of an immediate exchange.
At Dedman Gray Auctions, we specialise in unconditional traditional auction sales and tailor to suit your needs. If you’re unsure which option is right for your property or situation, speak to our auction experts today on 01702 311010 or email auctions@dedmanauctions.com.