Property auctions can look exciting.

There's the possibility of a bargain, a quicker purchase and properties that sometimes never make it onto the usual estate-agent listings.

There's also the possibility of buying yourself a surprisingly expensive problem.

The golden rule is simple:

Do your homework before you bid, not after you've won.

Once the hammer falls or an online auction reaches the point at which your successful bid becomes binding you may be legally committed to buying under the auction's terms.

That's not the ideal moment to discover the extension has questionable paperwork or the flat comes with a service charge that requires a small lie-down.

So, before bidding on a Peterborough property, here's what to check.

Start with the legal pack

The legal pack is the bundle of documents containing the important legal information about the property.

Depending on the sale, it may include ownership information, the title plan, searches, lease documents and the auction's special conditions of sale essentially, extra contractual rules and costs applying to that particular property.

Don't treat it as optional reading.

Ideally, have a conveyancer the solicitor or legal professional handling property transactions  review it before you bid.

Pay particular attention to the title register and title plan.

The title register is the official record containing information about the property's ownership and rights or restrictions affecting it.

The title plan shows the general extent of the registered property.

You might also come across terms such as:

Restrictive covenant: a legal restriction on how land or property can be used.

Easement: a legal right allowing somebody to use another person's land for a particular purpose, such as accessing a shared driveway.

Check that the paperwork matches what you think you're buying.

That innocent-looking driveway becomes considerably more interesting when you discover somebody else has legal rights over it.

View it and look beyond the photographs

Auction photographs are supposed to make properties look appealing.

Nobody has ever advertised a house with: “Here's the damp corner we thought you'd particularly enjoy.”

View the property yourself if possible.

Look at the roof, windows, damp, cracks, services, access and any obvious alterations.

Take measurements too. Wide-angle lenses have performed miracles for many a modest bedroom.

For properties needing closer investigation, consider getting a survey before bidding.

A Level 2 survey is generally aimed at conventional properties in reasonable condition.

A more detailed Level 3 survey may be more appropriate for older, unusual, heavily altered or run-down properties.

And don't confuse a survey with a valuation.

A survey looks at the property's condition. A valuation considers what the property is worth.

If you're relying on a mortgage, get your finance and valuation arrangements sorted before bidding rather than assuming everything will fall neatly into place afterwards.

Check searches, planning and building work

Property searches can reveal things you won't necessarily spot during a viewing.

In Peterborough, relevant searches can provide information about planning applications, building-control records, enforcement action, roads and other matters affecting the property.

Peterborough City Council currently publishes a residential CON29 search fee of £185 including VAT, with optional CON29O enquiries at £42 each including VAT.

A CON29 search is essentially a set of questions sent to the local authority about matters that could affect the property.

Your conveyancer can advise which searches you actually need.

And remember: planning permission and building regulations approval aren't the same thing.

Planning permission is mainly concerned with whether development is allowed.

Building regulations deal with whether construction work meets required technical and safety standards.

An extension could potentially have one without the paperwork you'd expect for the other.

That's exactly the sort of sentence you want to hear before bidding.

Buying leasehold? Look beyond the guide price

If you're buying a flat or another leasehold property, you're usually buying the right to occupy the property for the remaining length of the lease rather than owning the land outright indefinitely.

Check how many years remain on the lease.

Then look at the service charge, any ground rent, building insurance arrangements and planned major works.

A service charge is money leaseholders pay towards things such as maintaining communal areas, repairs and management of the building.

A sinking or reserve fund is money collected and held towards larger future repairs.

Those figures matter.

A tempting auction price can look considerably less tempting if there's a substantial annual service charge or a large building repair on the horizon.

Decide your real maximum before bidding

Your maximum shouldn't simply be the biggest number you're willing to bid.

Work out your total cost.

Allow for the auction deposit, solicitor, survey, searches, mortgage costs, insurance and any auction fees.

Pay particular attention to buyer's premiums and seller-imposed charges in the auction paperwork.

These are additional amounts you may have to pay on top of the winning bid.

Also check the completion deadline  the amount of time you'll have to pay the balance and complete the purchase.

Auction timetables can be much quicker than ordinary property purchases.

This is why “I'll sort the mortgage out if I win” isn't much of a strategy.

Set your maximum beforehand.

Auction rooms including virtual ones aren't famous for making people suddenly more restrained with money.

Selling at auction? Get the awkward details out early

Sellers have homework too.

Choose an auctioneer and solicitor familiar with auction sales, and understand the commission, marketing charges and other fees before signing anything.

Then give them accurate information.

If there are restrictions, tenancies, unusual access arrangements, alterations or leasehold issues, deal with them in the paperwork rather than hoping nobody asks.

A complete legal pack can give potential buyers more confidence to investigate and make an informed decision.

Mystery is excellent in an Agatha Christie novel.

Less so when you're trying to sell a house.

The Peterborough auction rule worth remembering

For buyers, the safest time to investigate a property and decide your maximum price is before bidding begins.

For sellers, the safest time to sort out paperwork and disclose relevant issues is before the property goes live.

Auctions can be fast.

Your homework shouldn't be.

Looking at a Peterborough auction property?

What's proving hardest to understand the legal pack, surveys, title documents, auction fees or something else entirely?

Leave your question in the comments below.

Don't include your address or confidential documents, but the questions people keep running into could shape our next plain-English Peterborough property articles.

Here Are Some Useful Resources

1. Property Auctions: A clear, impartial guide for buyers and sellers

2. Local land charges

3. Search for land and property information

4. RICS Home Surveys

5. Leasehold property: Service charges and other expenses

6. Flooding advice