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288 thoughts on “Dealing with property auction issues”

  1. Your post emphasizes the importance of proper planning and preparation for business liquidation auctions. This is crucial to ensure a smooth and successful process.

  2. Hello

    Is it legal for auction/ seller list property on open market if property have Compulsory Purchase Order case confirmed and completed by government.
    I won a property then I discovered CPO has confirmed for the property and the seller was hiding this information. The auction told me they will pass my information to seller lawyer to take legal action against me if I don’t completed the purchase I refuse to do because I think there is a fundamental issue and auction must not advertise this property from the beginning.

    Any Advice, Thanks

    1. Thank you for your comment. This is a very interesting question.

      The basic position is that no seller has to disclose anything in particular in relation to a property. They can simply put it on the market, say “buyer beware” and “undertake your own enquiries”.

      We do not immediately know the legal effect of a compulsory purchase order. We do not believe that it divests the owner of the property of their legal or equitable title i.e. the owner still owns it, just might be forced to sell it in the future. If this is the case, and the seller had the right to sell the property, we suspect that, subject to the information you were provided with and the terms of the contract, the risk was on you to take the risk in proceeding.

  3. Hi, we’ve just bid on a property in a post auction bid, had our offer formally accepted and paid the 10% plus auction fees and now they have told us they have sold to someone else.
    Is this legal?
    Thank you,
    Chris.

    1. Thank you for your comment.

      It would depend on the terms of the contract. The basic position is that when a winning bid is accepted, there is an equivalent of an exchange of contracts, committing the parties to the transaction; the buyer must buy and the seller must sell. However, the terms of the contract you entered into may say something different, for example, giving the seller the opportunity to make the final decision to sell. Certainly we would expect that you to be refunded the deposit you have paid, if the transaction was not proceeding. It sounds remarkably unfair if this has not happened and there may have been a failure of consideration entitling you to a claim.

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