288 thoughts on “Dealing with property auction issues”
I am looking to auction a property however we are going through a tribunal for letting the property as a holiday let – we have stopped the holiday let to stop breach of the lease. Would this need to be disclosed at the auction ? Also there the windows are needing to be changed in the property with agreement of the land lord. Does this need to be disclosed?
Thank you for your comment. The starting point is that there is no duty to volunteer information to a buyer. However, if you are asked something for instance on a Property Information Form or another document that a buyer may be entitled to rely upon, you must answer it accurately and correctly, and any information that you do volunteer must be correct.
In this circumstance I think you may wish to seek advice from the solicitor who will be acting for you on the sale as they will be best placed to assist you in preparing an auction pack and advising on what you may want to disclose in the context of your transaction.
HI. I need your advice. The buyer (bidder at the auction) deposited 10% as per the term and conditions of the auctions. Buyer agreed to complete by 25th May 2022. However, on 25th there was no completion and my solicitor send a notice to complete to buyer. Buyer came back and asked for another 6 weeks and made some excuses. I felt sorry for him and allowed another 6 weeks to complete. finally, after 6 weeks his solicitors confirmed that they were not able to complete as buyer had some issues with the gifts he was receiving! (i was surprised to learn about the gift. they ask for another 6 weeks which I refused. The property is back on the market. Now, as per the term of the contract with the auction, I should receive the deposit money. Action company told me I will get 5% and they keep 5% and that my 5% is with the solicitor who was representing me but was chosen by the auction company. I had no choice. At one point the conveyancer admitted that the 5% deposit is being held by them. Now the solicitors are neither giving me the money nor replying to my emails. I have sent multiple emails in the past few weeks but no reply. I guess i cannot for the solicitor to pay the money because my contract is with the auction company not the solicitor. I am thinking to report the solicitor to the appropriate governing bodies to seek help and get my money.
Please, what do you advise in this situation? Do I have to start a legal battle to get the money? I need that money because the process wasted 5 months of time and replying on the sale and at least the 5% deposit in the even the buyer dis not complete I have committed myself financially by purchasing few things and now I do not have the money to pay my debts.
Thank you for your comment. Auction sales can often be high risk for the buyer, but also for the seller as unless the buyer is able to purchase the property outright it is not easy to fund a purchase at auction with a mortgage and this can result in sales not going ahead due to a refusal of funding from the mortgagee.
The usual position, subject of course to the terms of the contract of sale and the terms of the auction, is that if a buyer fails to complete, the seller may either retain the deposit they have put down and seek to recover losses of and occasioned by the failure to complete, or, serve a Notice to Complete to the buyer and then force him to complete by way of order for specific performance application in Court. I can see from this that you were intending the latter but when he admitted he was unable to you went via the deposit retention method.
Whether the auctioneer is entitled to hold on to the 5% of the property price, will depend on the terms of the auction. However what is going on with that solicitor does require additional investigation. It does appear that they have retained this for no good reason from what you say, and indeed there is the possibility of both a claim against them for the monies or a complaint to the SRA or Legal Ombudsman. However we would need to see the terms of the retainer they entered into before we can properly advise on this. I am also suspicious of having no choice as to who would represent you on the sale as being dictated by the auction terms. Please feel free to call our Braintree office to discuss this further should you see fit.
My property sold at auction over four months ago but the buyer failed to buy in the end.now the auction house say I cannot remarket it with anyone else for 21 days.is this correct?
Thank you for your comment. Generally speaking, where a buyer fails to complete on a sale the usual remedy, should the seller not want to attempt to force completion, is that the buyer loses their deposit and is liable to the seller for the losses of and occasioned by the failure to complete, though this is of course subject to the provisions of the contract.
Whether you cannot remarket it for 21 days as the auctioneer is saying will depend on the terms of the auctioneer that you entered into with them. If you wish, we may be able to advise you further on your rights under that contract and also the remedies that may be open to you against the buyer. Please feel free to ring our Braintree office for a confidential discussion.
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I am looking to auction a property however we are going through a tribunal for letting the property as a holiday let – we have stopped the holiday let to stop breach of the lease. Would this need to be disclosed at the auction ? Also there the windows are needing to be changed in the property with agreement of the land lord. Does this need to be disclosed?
Thank you for your comment. The starting point is that there is no duty to volunteer information to a buyer. However, if you are asked something for instance on a Property Information Form or another document that a buyer may be entitled to rely upon, you must answer it accurately and correctly, and any information that you do volunteer must be correct.
In this circumstance I think you may wish to seek advice from the solicitor who will be acting for you on the sale as they will be best placed to assist you in preparing an auction pack and advising on what you may want to disclose in the context of your transaction.
HI. I need your advice. The buyer (bidder at the auction) deposited 10% as per the term and conditions of the auctions. Buyer agreed to complete by 25th May 2022. However, on 25th there was no completion and my solicitor send a notice to complete to buyer. Buyer came back and asked for another 6 weeks and made some excuses. I felt sorry for him and allowed another 6 weeks to complete. finally, after 6 weeks his solicitors confirmed that they were not able to complete as buyer had some issues with the gifts he was receiving! (i was surprised to learn about the gift. they ask for another 6 weeks which I refused. The property is back on the market.
Now, as per the term of the contract with the auction, I should receive the deposit money. Action company told me I will get 5% and they keep 5% and that my 5% is with the solicitor who was representing me but was chosen by the auction company. I had no choice. At one point the conveyancer admitted that the 5% deposit is being held by them. Now the solicitors are neither giving me the money nor replying to my emails. I have sent multiple emails in the past few weeks but no reply. I guess i cannot for the solicitor to pay the money because my contract is with the auction company not the solicitor. I am thinking to report the solicitor to the appropriate governing bodies to seek help and get my money.
Please, what do you advise in this situation? Do I have to start a legal battle to get the money? I need that money because the process wasted 5 months of time and replying on the sale and at least the 5% deposit in the even the buyer dis not complete I have committed myself financially by purchasing few things and now I do not have the money to pay my debts.
Thank you for your comment. Auction sales can often be high risk for the buyer, but also for the seller as unless the buyer is able to purchase the property outright it is not easy to fund a purchase at auction with a mortgage and this can result in sales not going ahead due to a refusal of funding from the mortgagee.
The usual position, subject of course to the terms of the contract of sale and the terms of the auction, is that if a buyer fails to complete, the seller may either retain the deposit they have put down and seek to recover losses of and occasioned by the failure to complete, or, serve a Notice to Complete to the buyer and then force him to complete by way of order for specific performance application in Court. I can see from this that you were intending the latter but when he admitted he was unable to you went via the deposit retention method.
Whether the auctioneer is entitled to hold on to the 5% of the property price, will depend on the terms of the auction. However what is going on with that solicitor does require additional investigation. It does appear that they have retained this for no good reason from what you say, and indeed there is the possibility of both a claim against them for the monies or a complaint to the SRA or Legal Ombudsman. However we would need to see the terms of the retainer they entered into before we can properly advise on this. I am also suspicious of having no choice as to who would represent you on the sale as being dictated by the auction terms. Please feel free to call our Braintree office to discuss this further should you see fit.
My property sold at auction over four months ago but the buyer failed to buy in the end.now the auction house say I cannot remarket it with anyone else for 21 days.is this correct?
Thank you for your comment. Generally speaking, where a buyer fails to complete on a sale the usual remedy, should the seller not want to attempt to force completion, is that the buyer loses their deposit and is liable to the seller for the losses of and occasioned by the failure to complete, though this is of course subject to the provisions of the contract.
Whether you cannot remarket it for 21 days as the auctioneer is saying will depend on the terms of the auctioneer that you entered into with them. If you wish, we may be able to advise you further on your rights under that contract and also the remedies that may be open to you against the buyer. Please feel free to ring our Braintree office for a confidential discussion.