288 thoughts on “Dealing with property auction issues”
Hi I won a bid for land in Glasgow Scotland , I had not payed a deposit and there was very little information from Future Property auctions the advert was for an area of land when the sent through the title deeds a large area of the advertised area was not on the title I have refused to pay anything and feel duped ! Anything I can do
I put in an offer on a property which was up for sale via !I am Sold” Modern Auction, before there was an auction date. The offer was accepted. I needed to have a mortgage for the property, so was concerned about losing my reservation fee if I wasn’t able to secure a mortgage on it (it was a bit of a doer upper). The auctioneer assured me they couldn’t see any reason why I wouldn’t be able to get a mortgage on it, but suggested I put in a caveat clause. I did this and it was accepted by the vendor. The caveat stated : The Seller agrees that if the Buyer has been unable to exchange contracts for the purchase of the Property within the Reservation Period for any of the following reasons, the Reservation Fee paid under clause 1a of this Agreement is to be repaid to the Buyer within 5 working days after the Termination Date: a. Where the purchaser’s mortgagee values the property at less than the purchase price, or requires a retention from the mortgage advance and where attempts to renegotiate the purchase price are unsuccessful, the reservation fee/deposit will be refunded subject to evidence being provided in the form of the Mortgage valuation or survey.
So I signed the agreement and paid the reservation fee. I tried 2 mortgage companies the first valued it a 0 until work had been done and then 10000 less than the agreed price. The 2nd mortgage company said a complete NO. I tried to renegotiate but the seller wouldn’t budge from the original agreed price. I Am Sold are now refusing to refund me my reservation fee. Do I have a case to claim this back. It’s a huge amount of money to lose and is now preventing me from purchasing another property.
Whilst we would need to consider the contractual position as a whole, if it was agreed and understood between the parties that in the event you are not able to secure finance your reservation fee would be refunded and there is a contractual clause which reflects this, then yes, there would be a basis to claim back the reservation fee.
Presumably you have put this point to the other side already and we would be interested to know what the response to is was.
Hi please can you advise me We won a property and paid the deposit plus fees . We had the mortgage survey and was happy with the property . For some reason the mortgage company sent another surveyor on the 21st December. Where he noticed a substantial leak/ flood Today is the 4th Jan We have heard today that they work pay the mortgage until it’s been fixed and revalued due to damage. We didn’t know anything about this leak until today. No one has contacted us to even prevent any more damage to the property. We are due to complete on the 12th The house is wrecked we don’t think they will give us the mortgage due to the damage . Where do we stand at pulling out fees and costs please I Cant find anything about break of contract in my contract . If we had know when they agents new in the 20th we could have prevented so much damage to the property . Instead it’s been sat for weeks full of water
We can’t advise people on our website, primarily because we do not know the full facts of any particular circumstance. However we are able to provide general guidance.
In respect of your position, much will turn on the terms and conditions agreed and who has agreed to be liable for the property from the auction to completion.
From what you have written, it is unclear whose “fault” this situation is, but we would be interested to know why the mortgage lender felt the need to undertake a further survey.
As mentioned, much will turn on who has agreed to be liable contractually for looking after the property from the auction to completion.
If you would like to explore the position in more detail, do feel free to get in touch.
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Hi I won a bid for land in Glasgow Scotland , I had not payed a deposit and there was very little information from Future Property auctions the advert was for an area of land when the sent through the title deeds a large area of the advertised area was not on the title I have refused to pay anything and feel duped !
Anything I can do
Thank you for your comment. I am afraid we cannot advise you on Scottish law.
I put in an offer on a property which was up for sale via !I am Sold” Modern Auction, before there was an auction date. The offer was accepted. I needed to have a mortgage for the property, so was concerned about losing my reservation fee if I wasn’t able to secure a mortgage on it (it was a bit of a doer upper). The auctioneer assured me they couldn’t see any reason why I wouldn’t be able to get a mortgage on it, but suggested I put in a caveat clause. I did this and it was accepted by the vendor. The caveat stated :
The Seller agrees that if the Buyer has been unable to exchange contracts for the purchase of the Property within the Reservation
Period for any of the following reasons, the Reservation Fee paid under clause 1a of this Agreement is to be repaid to the Buyer
within 5 working days after the Termination Date:
a. Where the purchaser’s mortgagee values the property at less than the purchase price, or requires a retention from the
mortgage advance and where attempts to renegotiate the purchase price are unsuccessful, the reservation fee/deposit will
be refunded subject to evidence being provided in the form of the Mortgage valuation or survey.
So I signed the agreement and paid the reservation fee.
I tried 2 mortgage companies the first valued it a 0 until work had been done and then 10000 less than the agreed price. The 2nd mortgage company said a complete NO. I tried to renegotiate but the seller wouldn’t budge from the original agreed price.
I Am Sold are now refusing to refund me my reservation fee.
Do I have a case to claim this back. It’s a huge amount of money to lose and is now preventing me from purchasing another property.
Thank you for your comment.
Whilst we would need to consider the contractual position as a whole, if it was agreed and understood between the parties that in the event you are not able to secure finance your reservation fee would be refunded and there is a contractual clause which reflects this, then yes, there would be a basis to claim back the reservation fee.
Presumably you have put this point to the other side already and we would be interested to know what the response to is was.
Do feel free to get in touch.
Hi please can you advise me
We won a property and paid the deposit plus fees . We had the mortgage survey and was happy with the property . For some reason the mortgage company sent another surveyor on the 21st December. Where he noticed a substantial leak/ flood
Today is the 4th Jan
We have heard today that they work pay the mortgage until it’s been fixed and revalued due to damage.
We didn’t know anything about this leak until today. No one has contacted us to even prevent any more damage to the property.
We are due to complete on the 12th
The house is wrecked we don’t think they will give us the mortgage due to the damage . Where do we stand at pulling out fees and costs please
I Cant find anything about break of contract in my contract .
If we had know when they agents new in the 20th we could have prevented so much damage to the property . Instead it’s been sat for weeks full of water
Thank you for your comment.
We can’t advise people on our website, primarily because we do not know the full facts of any particular circumstance. However we are able to provide general guidance.
In respect of your position, much will turn on the terms and conditions agreed and who has agreed to be liable for the property from the auction to completion.
From what you have written, it is unclear whose “fault” this situation is, but we would be interested to know why the mortgage lender felt the need to undertake a further survey.
As mentioned, much will turn on who has agreed to be liable contractually for looking after the property from the auction to completion.
If you would like to explore the position in more detail, do feel free to get in touch.