288 thoughts on “Dealing with property auction issues”
Hello,
I recently won a property at auction and have paid a 5% deposit. However, my lender has pulled out following the mandatory survey (completed after the auction) as the survey revealed that the property had been previously flooded (due to the non-drainage of surface water) in 2020 and 2021.
The survey states that due to this the property would not be able to get adequate insurance against flooding at reasonable rates and that the property has suffered significantly diminished saleability.
However, the survey has missed the fact that there already exists current, fully comprehensive, and affordable insurance against flooding, has also missed the fact that there has been a water pump installed in the offending drain that caused the surface water flood, and has also missed the fact that removable protective panel protections (Environment Agency endorsed and British standard kite marked) have been professionally installed around the front door (where the surface flood water had entered the property).
Therefore, due to this array of protections having been installed, the property has not flooded in the past two years, nor is it ever again likely to, as can be demonstrated on the Environment Agency (.gov) website under a search for that address.
I feel strongly that this assessment is wrong having missed these highly significant facts and documents, and this has not only left me in limbo with a looming completion date, but also as I am told could possibly condemn the property in regard to future surveys (and therefore lender decisions) which could negatively affect the property value.
I would appreciate any advice as to how I should pursue this issue. Thanks in advance.
We cannot advise on specific circumstances on our website, not least because the contractual terms agreed between you and the seller would need to be considered in detail, as would the contents of the auction pack. Likewise, the chances are that the lender provided a conditional offer of a mortgage, contingent on their final agreement in all the circumstances and being satisfied that the property represents good security for them. We would also need to consider the mortgage documentation.
You have not said whether or not you have raised these points with the proposed lender or its surveyor. We would certainly think doing this might be worthwhile, if only to mitigate the potential loss you may suffer.
I have bought a property from auction which appears to be on a mineshaft. There were no searches included in the legal pack. I have paid the deposit and now don’t know whether to proceed. What are my rights
There is no requirement of a seller of property, whether by auction or by private sale, to include searches of any other information about a property.
In any case where a contract is involved, the terms and conditions agreed, in this case when you placed the successful bid, determine the rights and obligations of the parties. If there is a mechanism for terminating the contract in the terms and conditions and the trigger for this has been met, then you can terminate the contract. If there is no such term or the trigger for terminating the contract has not been met, you may be contractually obliged to complete and normally, if you do not do so, would forfeit your deposit.
Hi, I won a property bid on an online auction. contract said buyer will pay the rent arrears. Seller owned this property only for 6 months. seller sent completion statement just 2 days before the completion date. Seller asked me to pay £16000 of rent arrears. it was shocking as how such extortionate rent arrears can occur in just 6 months. My solicitor asked seller solicitor to provide any evidence of rent arrears. Seller solicitor has refused to provide any evidence or tenancy agreement. They made the contract in such way that seller is protected in any situation of misrepresentation. This is worst form of scam which is protected in legal cover. Don’t know what to do. Don’t want to complete this very unfair deal and will loose my deposit. Seller solicitor played dirty and made the contract the way that buyer doesn’t have any protection or rights to raise their voices.
Purchasing a property at auction is rarely without risk. The basic position in any contractual situation is “buyer beware”. This means that the buyer has to decide whether or not they are prepared to take the risk of purchasing the property in circumstances where they have not obtained information about something important to them.
It may seem unfair, but there is no duty on a seller to volunteer information or indeed respond to questions or enquiries if they do not want to. Likewise, a seller is entitled to set out the terms that they are prepared to contract on and will invariably look to protect their own position. If the buyer does not like them, they can negotiate the terms (if they are given the opportunity) but ultimately it is up to the buyer to decide whether or not they are prepared to agree to the terms offered to them; the seller does not have to agree to any specific terms.
Recently submitted an offer on a plot of land a day before the Scottish property auction my offer was rejected by email as too low. Some hours later that day I was informed by email that my offer had been accepted and If I didn’t complete the purchase I would be sued by sellers solicitor. Have they the right to make me purchase this land?
We cannot provide specific advice on our website and in any event, we are only able to advise on the law of England and Wales. You would need to locate a Scottish lawyer to assist you.
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Hello,
I recently won a property at auction and have paid a 5% deposit. However, my lender has pulled out following the mandatory survey (completed after the auction) as the survey revealed that the property had been previously flooded (due to the non-drainage of surface water) in 2020 and 2021.
The survey states that due to this the property would not be able to get adequate insurance against flooding at reasonable rates and that the property has suffered significantly diminished saleability.
However, the survey has missed the fact that there already exists current, fully comprehensive, and affordable insurance against flooding, has also missed the fact that there has been a water pump installed in the offending drain that caused the surface water flood, and has also missed the fact that removable protective panel protections (Environment Agency endorsed and British standard kite marked) have been professionally installed around the front door (where the surface flood water had entered the property).
Therefore, due to this array of protections having been installed, the property has not flooded in the past two years, nor is it ever again likely to, as can be demonstrated on the Environment Agency (.gov) website under a search for that address.
I feel strongly that this assessment is wrong having missed these highly significant facts and documents, and this has not only left me in limbo with a looming completion date, but also as I am told could possibly condemn the property in regard to future surveys (and therefore lender decisions) which could negatively affect the property value.
I would appreciate any advice as to how I should pursue this issue. Thanks in advance.
Regards
A
Thank you for your comment.
We cannot advise on specific circumstances on our website, not least because the contractual terms agreed between you and the seller would need to be considered in detail, as would the contents of the auction pack. Likewise, the chances are that the lender provided a conditional offer of a mortgage, contingent on their final agreement in all the circumstances and being satisfied that the property represents good security for them. We would also need to consider the mortgage documentation.
You have not said whether or not you have raised these points with the proposed lender or its surveyor. We would certainly think doing this might be worthwhile, if only to mitigate the potential loss you may suffer.
Hi
I have bought a property from auction which appears to be on a mineshaft. There were no searches included in the legal pack. I have paid the deposit and now don’t know whether to proceed. What are my rights
Thank you for your comments.
There is no requirement of a seller of property, whether by auction or by private sale, to include searches of any other information about a property.
In any case where a contract is involved, the terms and conditions agreed, in this case when you placed the successful bid, determine the rights and obligations of the parties. If there is a mechanism for terminating the contract in the terms and conditions and the trigger for this has been met, then you can terminate the contract. If there is no such term or the trigger for terminating the contract has not been met, you may be contractually obliged to complete and normally, if you do not do so, would forfeit your deposit.
Hi, I won a property bid on an online auction. contract said buyer will pay the rent arrears. Seller owned this property only for 6 months. seller sent completion statement just 2 days before the completion date. Seller asked me to pay £16000 of rent arrears. it was shocking as how such extortionate rent arrears can occur in just 6 months. My solicitor asked seller solicitor to provide any evidence of rent arrears. Seller solicitor has refused to provide any evidence or tenancy agreement. They made the contract in such way that seller is protected in any situation of misrepresentation. This is worst form of scam which is protected in legal cover. Don’t know what to do. Don’t want to complete this very unfair deal and will loose my deposit. Seller solicitor played dirty and made the contract the way that buyer doesn’t have any protection or rights to raise their voices.
Thank you for your comment.
Purchasing a property at auction is rarely without risk. The basic position in any contractual situation is “buyer beware”. This means that the buyer has to decide whether or not they are prepared to take the risk of purchasing the property in circumstances where they have not obtained information about something important to them.
It may seem unfair, but there is no duty on a seller to volunteer information or indeed respond to questions or enquiries if they do not want to. Likewise, a seller is entitled to set out the terms that they are prepared to contract on and will invariably look to protect their own position. If the buyer does not like them, they can negotiate the terms (if they are given the opportunity) but ultimately it is up to the buyer to decide whether or not they are prepared to agree to the terms offered to them; the seller does not have to agree to any specific terms.
Recently submitted an offer on a plot of land a day before the Scottish property auction my offer was rejected by email as too low. Some hours later that day I was informed by email that my offer had been accepted and If I didn’t complete the purchase I would be sued by sellers solicitor. Have they the right to make me purchase this land?
We cannot provide specific advice on our website and in any event, we are only able to advise on the law of England and Wales. You would need to locate a Scottish lawyer to assist you.