288 thoughts on “Dealing with property auction issues”
A property was listed for an auction via I am Sold, the seller accepted our offer days before going live into the auction. The same auction rules applied, I paid a reservation fee to the auction as well as the 10% deposit, we were meant to exchange on 31/10/2022 but the seller and the auction misled the sale by saying the property came with operational CCTV and alarm covering the whole property and land. The seller started messing around making low offers, in terms of CCTV/Alarm and saying it wasn’t installed or working.
Nevertheless we wanted to complete, then go after the auction/seller for our losses, they agreed to meet on site today to do the key handover and complete at 1pm but no one turned up with the keys, called the auction they stated the keys with the seller who are in Scotland and cant complete until next Tuesday. I believe the estate agent, auction and seller are playing games, as we’ve seen people removing items from the property on a daily basis .
The property is costing us £1,000.000 and have been getting messed around, can we sue them for delaying the matter and lying around CCTV/Alarm?
What is or is not to be included in the sale is going to be a matter of what was contractually agreed. In short, if it was the case that a representation was made that the property included working CCTV, then there may be a claim for breach of contract.
As for any delays in completing, you should consider with your solicitor whether or not to seek to rescind the contract at the expiry of the period of notice given in the notice to complete or pursue a claim for specific performance, obliging the seller to complete.
Hi, I plan to bid at auction for a property that is part of a deceased estate. It is sold by the Government Legal Department with “no title guarantee”.
My understanding is that the freehold property is sold by Bona Vacantia and is part of an unclaimed estate. If I buy it, what happens if the estate is claimed? Will the Crown pay the claim? Would I be impacted in any way?
Any help you can provide will be greatly appreciated
We cannot give specific advice on our website, just general guidance, which shouldn’t be considered an alternative to properly considered legal advice.
Purchasing a property at auction is no different to purchasing a property from the open market in that checks, searches, surveys and enquires can help identify problems and assist the buyer to decide whether or not proceed.
The primary difference with auction properties is that often, the buyer is not afforded the opportunity to do this. There is no obligation on the seller to provide information, respond to enquiries or accommodate any other checks on the property. This means purchasing a property at auction is a high risk activity, particularly if relying on funding from a mortgage lender. A mortgage lender will not lend against the property unless it is satisfied that there are no problems with it. We regularly see situations where problems are discovered by the lender after the winning bid when the buyer is committed to the purchase, causing the lender to withdraw their offer of funding. The buyer is committed to the purchase and unless they can find the money elsewhere (and normally there is no time to do that, as there is a deadline for completion) they will lose their deposit because they are unable to proceed.
It is always recommended that someone considering bidding on a property at auction instruct a solicitor to consider the contents of the auctions pack and undertake as many searches as possible. Whilst there remains a risk to the buyer with any auction property, instructing a solicitor helps to minimise that risk. During that instruction, consideration can be given to the title guarantee.
No title guarantee means that the seller cannot say whether or not they are entitled to sell the property that they are in possession of. As to what happens if someone comes out of the woodwork, it would depend on the circumstances. It would also be worth considering whether or not this is an insurable risk, which in many cases it may be. This is something to consider with your conveyancing solicitor and we would always recommend doing so before bidding on a property.
Could I please get some advice . My building plot has been sold on I Am Sold auction. Auction pack clearly indicated that there is a council CIL demand notice issued for this property which is unpaid. When the conveyancing process started my solicitor has informed me that I am, as a seller ,responsible for paying this fee. This was not discussed with me before the auction. I understood that the buyer will pay these charges as he had a chance to adjust his bid accordingly. Are there any legal documents or regulations related to my problem? I will appreciate your advice.
We cannot give specific advice on our website, not least for the fact that we do not know all of the relevant information and haven’t seen the documentation involved.
Community Infrastructure Levies (or CILs) attach to the land, in that it is the “landowner” liable to pay this charge. Who is therefore liable for the charge will depend a great deal on the contractual position between the parties.
If it is the case that the landowner is liable for the charge, and the contractual terms are such that this liability passes to the successful bidder, then your assertion that the buyer is liable for the charge is probably correct.
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A property was listed for an auction via I am Sold, the seller accepted our offer days before going live into the auction. The same auction rules applied, I paid a reservation fee to the auction as well as the 10% deposit, we were meant to exchange on 31/10/2022 but the seller and the auction misled the sale by saying the property came with operational CCTV and alarm covering the whole property and land. The seller started messing around making low offers, in terms of CCTV/Alarm and saying it wasn’t installed or working.
Nevertheless we wanted to complete, then go after the auction/seller for our losses, they agreed to meet on site today to do the key handover and complete at 1pm but no one turned up with the keys, called the auction they stated the keys with the seller who are in Scotland and cant complete until next Tuesday. I believe the estate agent, auction and seller are playing games, as we’ve seen people removing items from the property on a daily basis .
The property is costing us £1,000.000 and have been getting messed around, can we sue them for delaying the matter and lying around CCTV/Alarm?
Thank you for your comment.
What is or is not to be included in the sale is going to be a matter of what was contractually agreed. In short, if it was the case that a representation was made that the property included working CCTV, then there may be a claim for breach of contract.
As for any delays in completing, you should consider with your solicitor whether or not to seek to rescind the contract at the expiry of the period of notice given in the notice to complete or pursue a claim for specific performance, obliging the seller to complete.
Hi, I plan to bid at auction for a property that is part of a deceased estate. It is sold by the Government Legal Department with “no title guarantee”.
My understanding is that the freehold property is sold by Bona Vacantia and is part of an unclaimed estate. If I buy it, what happens if the estate is claimed? Will the Crown pay the claim? Would I be impacted in any way?
Any help you can provide will be greatly appreciated
Thank you for your comment.
We cannot give specific advice on our website, just general guidance, which shouldn’t be considered an alternative to properly considered legal advice.
Purchasing a property at auction is no different to purchasing a property from the open market in that checks, searches, surveys and enquires can help identify problems and assist the buyer to decide whether or not proceed.
The primary difference with auction properties is that often, the buyer is not afforded the opportunity to do this. There is no obligation on the seller to provide information, respond to enquiries or accommodate any other checks on the property. This means purchasing a property at auction is a high risk activity, particularly if relying on funding from a mortgage lender. A mortgage lender will not lend against the property unless it is satisfied that there are no problems with it. We regularly see situations where problems are discovered by the lender after the winning bid when the buyer is committed to the purchase, causing the lender to withdraw their offer of funding. The buyer is committed to the purchase and unless they can find the money elsewhere (and normally there is no time to do that, as there is a deadline for completion) they will lose their deposit because they are unable to proceed.
It is always recommended that someone considering bidding on a property at auction instruct a solicitor to consider the contents of the auctions pack and undertake as many searches as possible. Whilst there remains a risk to the buyer with any auction property, instructing a solicitor helps to minimise that risk. During that instruction, consideration can be given to the title guarantee.
No title guarantee means that the seller cannot say whether or not they are entitled to sell the property that they are in possession of. As to what happens if someone comes out of the woodwork, it would depend on the circumstances. It would also be worth considering whether or not this is an insurable risk, which in many cases it may be. This is something to consider with your conveyancing solicitor and we would always recommend doing so before bidding on a property.
Could I please get some advice .
My building plot has been sold on I Am Sold auction.
Auction pack clearly indicated that there is a council CIL demand notice issued for this property which is unpaid.
When the conveyancing process started my solicitor has informed me that I am, as a seller ,responsible for paying this fee.
This was not discussed with me before the auction.
I understood that the buyer will pay these charges as he had a chance to adjust his bid accordingly.
Are there any legal documents or regulations related to my problem?
I will appreciate your advice.
Thank you for your comment.
We cannot give specific advice on our website, not least for the fact that we do not know all of the relevant information and haven’t seen the documentation involved.
Community Infrastructure Levies (or CILs) attach to the land, in that it is the “landowner” liable to pay this charge. Who is therefore liable for the charge will depend a great deal on the contractual position between the parties.
If it is the case that the landowner is liable for the charge, and the contractual terms are such that this liability passes to the successful bidder, then your assertion that the buyer is liable for the charge is probably correct.