Arbor Dgital are delighted to announce that we have been chosen as the technology partner for the Fridaysmove Solicitors Pre Auction Report (SPAR) platform.
In conjunction with Fridaysmove, SPAR is set to revolutionise the way people purchase property at auction in the UK.
Buying property at auction in the UK requires the purchaser to 'exchange' immediately - essentially entering into a contract on the spot. The purchaser must pay a 10% (of the asking price) deposit, there and then, and then complete within 28 days paying the final 90% on completion. Considering that the average property price in the UK is not far shy of £200k they must find £20k on the day they bid.
Riskier still - their chosen mortgage lender might have vetted the buyer as a prospect for a mortgage, but they might not be willing to lend on the specific property which may be defective and, as such, inadequate collateral for the loan. This deliberation normally takes weeks to carry out. Scarier still, if the buyer cannot see the purchase through they lose their deposit, other costs and face the possibility of being sued.
Buying a property through the normal route (i.e. through an agent) allows buyers to follows a 2 to 3 month Conveyancing Process where a solicitor conducts due diligence into the property before contracts are exchanged. If the buyer doesn't like what the conveyancing process reveals, they can pull out without any loss.
With an auction there is rarely enough time to properly investigate the property and, i any event, clients are reluctant to pay for this investigation on a speculative basis.
The challenge was therefore to process map the majority of the conveyancing workflow and reduce it to a solicitor driven risk management platform. The system needed to be comprehensive yet highly efficient in order to keep fees to a minimum. The platform is also designed to dovetail into the legal work required if the bidder is successful at auction. This saves the client and solicitor money and time and reduces the risk of hiccups during the 28 days race to complete.
Arbor Dgital have built similar technology platforms with Fridaysmove in the past, including risk mitigation tools specific to home buying. Fridaysmove chose Arbor Dgital as a result of a successsful history collaborating on legal technology projects.
Arbor Dgital are delighted to have had the opportunity to develop the system with Fridaysmove, a company operating on the leading edge of change in the UK property sector.
SPAR has undergone an initial pilot and a full launch is due in the next couple of weeks.
For more information on SPAR and Fridaysmove visit their website at www.fridaysmove.com