290 thoughts on “Dealing with property auction issues”
Hello,
I have encountered some issues and would appreciate guidance on the following points:
1. Misrepresentation in Property Auctions:
a) If an auction house provides assurances about the completeness of a legal pack, but significant issues are later discovered, could this amount to misrepresentation?
b) What remedies might be available to a buyer in such a situation?
2. Post-Auction Changes to Documentation:
a) What are the legal implications if an auctioneer alters documentation after an auction has concluded?
b) Could such alterations be considered a separate misrepresentation or breach of duty?
3. Auctioneer’s Disclosure Obligations:
a) What obligations do auctioneers have to disclose issues with a property before an auction?
b) Are there specific regulations governing auctioneers in property transactions?
4. Verbal Assurances from Auction Staff:
a) If an auction house staff member provides verbal assurances that are later disputed by the company, what recourse might a buyer have?
b) How does the concept of authority apply in such situations?
5. Completion Deadlines and Extensions:
a) If legal issues prevent meeting a completion deadline, what options are available to a buyer?
b) How can a buyer protect themselves from penalties due to delays beyond their control?
6. Right to Withdraw:
a) Under what circumstances might a buyer have the right to withdraw from an auction purchase?
b) What are the potential consequences of withdrawing?
7. Potential Damages:
a) What types of damages might a buyer be entitled to claim if issues arise after an auction purchase?
b) What evidence would typically be required to support such claims?
I would appreciate general guidance on these issues as they relate to property auction transactions.
Thank you for this comment and apologies for the delay in responding. There are too many questions to answer on this forum but we can give the following general advice.
Firstly, auction contracts often are very much locked down in that they often contain entire agreement clauses and non-reliance clauses. These state that the buyer is only entitled to rely upon the contents of the contract itself and therefore is not able to bring any action further to what may have been said outside the contract. It is also often the case that the contract contains a clause that you agree that the seller is not forced to reply to any enquiries you make.
Secondly, the auction house will almost certainly be protected from any claims by its terms and conditions.
Thirdly, if you fail to complete on the purchase, you will likely lose the deposit and also potentially, subject to the contract’s provisions, be liable for the losses of and occasioned by the seller. However if you do complete you will still potentially be able to bring a claim against the seller in misrepresentation but it will be for damages only.
First of all thank you for the article and responses to comments.
I has purchased a flat on same road I live at auction for my elderly parents, and dad is also being treated for cancer.
The auction listing specifically mentioned 62 years lease and auctioneer told me the flat would be vacant on possession. This information was in addition to what was contained in the legal pack and on which basis a successful bid placed and deposit paid.
The sellers solicitors are not responding to any enquiries and in the absence of lease pack, that only 37 years lease remaining. We have also been told no keys will be given on completion.
I have paid £9.4k deposit and do not know whether to complete based on misleading information from the auctioneer – do I have valid grounds not to complete or pursue a claim against the auctioneer?
Thank you for this comment and apologies for the delay in responding. We are unfortunately unable to give specific legal advice over this medium as we have not full information as to what is going on here and have not had sight of any relevant documents, however, based on what you have said in your comment, we would mention the following.
Firstly, auction contracts often are very much locked down in that they often contain entire agreement clauses and non-reliance clauses. These state that the buyer is only entitled to rely upon the contents of the contract itself and therefore is not able to bring any action further to what may have been said outwith the contract. Therefore we would need to circumvent any such clauses in the contract. It is also often the case that the contract contains a clause that you agree that the seller is not forced to reply to any enquiries you make.
Secondly, it would not be a claim against the auctioneer necessarily as they are not party to the contract but against the seller.
Thirdly, if you fail to complete on the purchase, you will likely lose the deposit and also potentially, subject to the contract’s provisions, be liable for the losses of and occasioned by the seller. However if you do complete you will still potentially be able to bring a claim against the seller in misrepresentation but it will be for damages only.
If you are still seeking advice in respect of this please feel free to contact us.
Hi, I purchased a property at auction last week and now I have decided that I made a mistake and no longer want it. Can exit out without any fees and if there are fees what is the vendor entitled to in terms of fees that I will need to pay. I have payed £19,000.00 deposit aswel, will I be able to get this back.
Unless the contract provides for a mechanism or trigger to bring it to an end, which would not make much sense, then you have probably committed to purchase the property.
You would need to check the contract that you agreed to before placing the winning bid in order to establish what you have contractually agreed to pay in the event that you do not proceed to completion.
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Hello,
I have encountered some issues and would appreciate guidance on the following points:
1. Misrepresentation in Property Auctions:
a) If an auction house provides assurances about the completeness of a legal pack, but significant issues are later discovered, could this amount to misrepresentation?
b) What remedies might be available to a buyer in such a situation?
2. Post-Auction Changes to Documentation:
a) What are the legal implications if an auctioneer alters documentation after an auction has concluded?
b) Could such alterations be considered a separate misrepresentation or breach of duty?
3. Auctioneer’s Disclosure Obligations:
a) What obligations do auctioneers have to disclose issues with a property before an auction?
b) Are there specific regulations governing auctioneers in property transactions?
4. Verbal Assurances from Auction Staff:
a) If an auction house staff member provides verbal assurances that are later disputed by the company, what recourse might a buyer have?
b) How does the concept of authority apply in such situations?
5. Completion Deadlines and Extensions:
a) If legal issues prevent meeting a completion deadline, what options are available to a buyer?
b) How can a buyer protect themselves from penalties due to delays beyond their control?
6. Right to Withdraw:
a) Under what circumstances might a buyer have the right to withdraw from an auction purchase?
b) What are the potential consequences of withdrawing?
7. Potential Damages:
a) What types of damages might a buyer be entitled to claim if issues arise after an auction purchase?
b) What evidence would typically be required to support such claims?
I would appreciate general guidance on these issues as they relate to property auction transactions.
Thank you for your time.
Thank you for this comment and apologies for the delay in responding. There are too many questions to answer on this forum but we can give the following general advice.
Firstly, auction contracts often are very much locked down in that they often contain entire agreement clauses and non-reliance clauses. These state that the buyer is only entitled to rely upon the contents of the contract itself and therefore is not able to bring any action further to what may have been said outside the contract. It is also often the case that the contract contains a clause that you agree that the seller is not forced to reply to any enquiries you make.
Secondly, the auction house will almost certainly be protected from any claims by its terms and conditions.
Thirdly, if you fail to complete on the purchase, you will likely lose the deposit and also potentially, subject to the contract’s provisions, be liable for the losses of and occasioned by the seller. However if you do complete you will still potentially be able to bring a claim against the seller in misrepresentation but it will be for damages only.
If you are still seeking advice, you might be interested in our Fixed Fee Misrepresentation Assessments.
Hi,
First of all thank you for the article and responses to comments.
I has purchased a flat on same road I live at auction for my elderly parents, and dad is also being treated for cancer.
The auction listing specifically mentioned 62 years lease and auctioneer told me the flat would be vacant on possession. This information was in addition to what was contained in the legal pack and on which basis a successful bid placed and deposit paid.
The sellers solicitors are not responding to any enquiries and in the absence of lease pack, that only 37 years lease remaining. We have also been told no keys will be given on completion.
I have paid £9.4k deposit and do not know whether to complete based on misleading information from the auctioneer – do I have valid grounds not to complete or pursue a claim against the auctioneer?
Any advice would be gratefully received.
Thank you
Thank you for this comment and apologies for the delay in responding. We are unfortunately unable to give specific legal advice over this medium as we have not full information as to what is going on here and have not had sight of any relevant documents, however, based on what you have said in your comment, we would mention the following.
Firstly, auction contracts often are very much locked down in that they often contain entire agreement clauses and non-reliance clauses. These state that the buyer is only entitled to rely upon the contents of the contract itself and therefore is not able to bring any action further to what may have been said outwith the contract. Therefore we would need to circumvent any such clauses in the contract. It is also often the case that the contract contains a clause that you agree that the seller is not forced to reply to any enquiries you make.
Secondly, it would not be a claim against the auctioneer necessarily as they are not party to the contract but against the seller.
Thirdly, if you fail to complete on the purchase, you will likely lose the deposit and also potentially, subject to the contract’s provisions, be liable for the losses of and occasioned by the seller. However if you do complete you will still potentially be able to bring a claim against the seller in misrepresentation but it will be for damages only.
If you are still seeking advice in respect of this please feel free to contact us.
Hi, I purchased a property at auction last week and now I have decided that I made a mistake and no longer want it. Can exit out without any fees and if there are fees what is the vendor entitled to in terms of fees that I will need to pay. I have payed £19,000.00 deposit aswel, will I be able to get this back.
Thank you
Thank you for your comment.
Unless the contract provides for a mechanism or trigger to bring it to an end, which would not make much sense, then you have probably committed to purchase the property.
You would need to check the contract that you agreed to before placing the winning bid in order to establish what you have contractually agreed to pay in the event that you do not proceed to completion.