290 thoughts on “Dealing with property auction issues”
I sold my property at auction over a month ago and the completion date has now passed but the buyer still hasn’t even paid the deposit and is apparently not responding to the auctioneer’s telephone calls and e-mails. It looks like he’s trying to back out of the purchase.
Am I right in thinking it’s the responsibility of the auction house to obtain the deposit and pass this on to me if the buyer fails to complete? And if so, what should I do if the auction house doesn’t obtain the deposit?
Also, if the buyer continues to ignore calls etc from the auction house does this mean I’m unable to remarket the property because the buyer hasn’t officially confirmed that he’s not proceeding with the purchase?
Thank you for your comment. Broadly, you would expect an auctioneer to take receipt of a deposit, however, the position will depend on the terms agreed between you and the auction house as to whether or not there is a breach of duty or a breach of contract entitling you to bring a claim against the auction house.
However, it may be the case that the deposit is to be paid direct to you as a seller. It will depend on the terms of the contract between you and the buyer. The chances are, the buyer has already agreed to enter into the transaction and can be held liable for the deposit. You should consult a solicitor about serving notice to complete if you want to pursue the deposit on the basis of a breach of contract.
As for whether or not the property can be placed into auction again without considering the contractual terms agreed between you and the successful bidder, it is not possible to say. The chances are, however, that there may have been a breach of contract and provided that the contract has been brought to an end, normally through a serving a notice to complete, you would be able to put the property back into auction.
Hi all looking for some advice. We are looking at purchasing a canal side property that is freehold. The deeds have no easement of access down the lane to the canal and the house. Although the auction pack states there is a written consent of access. I am worried that if we buy that we would have no rights of access. Regards Sharon
Thank you for your comment. We think you are right to be cautious and whilst you can obviously proceed with bidding on the property, on the basis that you have been told that there is written consent, you are probably well advised to run the point past a solicitor before doing so.
The basic position with any purchase of property, including that at auction, is that it is “buyer beware”. This means that unless you are prepared to take the risk, the only other option is to not bid on the property if you are not satisfied with the information that you have been provided and the seller will not provide anything further to you.
Hi I bid and won a plot of land in online auction 2 weeks ago . The plot was advertised as plot size of 0.5 acres (2,178 sqm). Clearly labeled in the right-move advert .
As we go through the conveyancing process we release that the actual size of the plot as per the neighbours deeds is that we got hold of is 0.05 acres ( this is 210 sqm)., effectively it is 10 times smaller .
I paid the deposit and admin fee promptly on the day of auction. What are my options in light of misrepresentation at the auction . I obviously do not wish to loose the 5K deposit I payed.
Thank you for your comment. Whether or not this amounts to a misrepresentation will depend to a large degree on what was included in the auction pack. Whilst an advertisement may be misleading, it is really the contents of the auction pack which are most important, as this should state what it is that you intend to buy. If there were no measurements within the auction pack and the only thing a buyer had to rely on was the advertisement, then in all probability there has been a misrepresentation.
Please do feel free to get in touch if you would like us to look into the matter in a bit more detail.
Delayed completion: what are your options when someone in your chain of property transactions is late? With a group of strangers all working toward completing on the same date, it's a wonder it ever works out on time.
This collection of cases of property misrepresentation claims should remind all of us how important it is to tell the truth on a Property Information Form
Supporting Farleigh Hospice | Limited Places Available We’re delighted to announce that Cunningtons is once again partnering with Farleigh Hospice for the annual Make a Will charity campaign this September! What We’re Offering ✅ Completely FREE Will preparation by our qualified solicitors;✅ Professional legal advice and guidance on making your Will; and of course,✅ Support […]
I sold my property at auction over a month ago and the completion date has now passed but the buyer still hasn’t even paid the deposit and is apparently not responding to the auctioneer’s telephone calls and e-mails. It looks like he’s trying to back out of the purchase.
Am I right in thinking it’s the responsibility of the auction house to obtain the deposit and pass this on to me if the buyer fails to complete? And if so, what should I do if the auction house doesn’t obtain the deposit?
Also, if the buyer continues to ignore calls etc from the auction house does this mean I’m unable to remarket the property because the buyer hasn’t officially confirmed that he’s not proceeding with the purchase?
Thank you for your comment. Broadly, you would expect an auctioneer to take receipt of a deposit, however, the position will depend on the terms agreed between you and the auction house as to whether or not there is a breach of duty or a breach of contract entitling you to bring a claim against the auction house.
However, it may be the case that the deposit is to be paid direct to you as a seller. It will depend on the terms of the contract between you and the buyer. The chances are, the buyer has already agreed to enter into the transaction and can be held liable for the deposit. You should consult a solicitor about serving notice to complete if you want to pursue the deposit on the basis of a breach of contract.
As for whether or not the property can be placed into auction again without considering the contractual terms agreed between you and the successful bidder, it is not possible to say. The chances are, however, that there may have been a breach of contract and provided that the contract has been brought to an end, normally through a serving a notice to complete, you would be able to put the property back into auction.
Hi all looking for some advice. We are looking at purchasing a canal side property that is freehold. The deeds have no easement of access down the lane to the canal and the house. Although the auction pack states there is a written consent of access. I am worried that if we buy that we would have no rights of access. Regards Sharon
Thanks for your comment. Please bear with us and we’ll respond as fast as we can.
Thank you for your comment. We think you are right to be cautious and whilst you can obviously proceed with bidding on the property, on the basis that you have been told that there is written consent, you are probably well advised to run the point past a solicitor before doing so.
The basic position with any purchase of property, including that at auction, is that it is “buyer beware”. This means that unless you are prepared to take the risk, the only other option is to not bid on the property if you are not satisfied with the information that you have been provided and the seller will not provide anything further to you.
Hi
I bid and won a plot of land in online auction 2 weeks ago . The plot was advertised as plot size of 0.5 acres (2,178 sqm). Clearly labeled in the right-move advert .
As we go through the conveyancing process we release that the actual size of the plot as per the neighbours deeds is that we got hold of is 0.05 acres ( this is 210 sqm)., effectively it is 10 times smaller .
I paid the deposit and admin fee promptly on the day of auction. What are my options in light of misrepresentation at the auction . I obviously do not wish to loose the 5K deposit I payed.
Thank you for your comment. Whether or not this amounts to a misrepresentation will depend to a large degree on what was included in the auction pack. Whilst an advertisement may be misleading, it is really the contents of the auction pack which are most important, as this should state what it is that you intend to buy. If there were no measurements within the auction pack and the only thing a buyer had to rely on was the advertisement, then in all probability there has been a misrepresentation.
Please do feel free to get in touch if you would like us to look into the matter in a bit more detail.