We’ve bought a property via a modern method of auction. A condition of the sale was vacant possession at completion but tenants were still in situ after the 56 days. The seller then refused to communicate further with the auction house and has refused to exchange even after we said we were prepared to buy with tenants in situ.
The seller won’t withdraw from the sale and won’t exchange leaving us with having paid the reservation fee to the auction house but no property to show for it. Legal and mortgage fees have also been paid out.
Are we able to sue the seller for specific performance, breach of contract etc?
Thank you for this and apologies for the delay in responding.
Assuming that a modern method of auction is the variety where you do not enter into a contract to purchase the property on the fall of the hammer but instead enter into a reservation agreement, there may be redress you have against the seller but it will depend on the content of the contract you did enter into and also the terms of the auction. The contents of these documents will determine what that redress, if any, is.
This will not likely be a claim in misrepresentation but potentially a claim in breach of contract, which is also something we can assist with.
Please feel free to contact us for a confidential discussion.
I have literally just sold my property via traditional auction. The buyer has just emailed to say it’s a mistake and he is mentally unwell. Part of the deposit was taken once the hammer fell with remainder of deposit to be paid within1 working day ( by Monday). He seemed perfectly coherent prior to this disclosure and I suspect is just using this as a means to try and wiggle put of being liable for the contract he entered into at auction.
Really can’t believe this! Any advice gratefully received – can he use mental health as valid reason to wiggle out of the contract?
Thank you for your comment. Without seeing the full paperwork relating to this situation I am not able to advise definitively but I will strive to give some pointers here.
Normally the situation is that the buyer must complete on the completion date or you will have redress against them pursuant to the terms of the contract. Mental health, however, is not something that I can say definitively one way or another. It sounds like he might be claiming that at the time he entered into the contract (i.e. he bid) he did not have mental capacity. Are you able to assist us with what exactly the mental health reasons he has cited are, as if he did not have capacity then the contract cannot have been said to have been properly formed, but that is a very high bar to surmount.
You also need to consider what exactly you want to do here and whether you want to force the sale to go ahead or try to recover the loss and damage you’ve undergone from him. Please feel free to contact us for a confidential discussion.
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Very well-written and informative. I learned a lot from this and will definitely be applying some of these ideas.
Dear Cunningtons,
We’ve bought a property via a modern method of auction. A condition of the sale was vacant possession at completion but tenants were still in situ after the 56 days. The seller then refused to communicate further with the auction house and has refused to exchange even after we said we were prepared to buy with tenants in situ.
The seller won’t withdraw from the sale and won’t exchange leaving us with having paid the reservation fee to the auction house but no property to show for it. Legal and mortgage fees have also been paid out.
Are we able to sue the seller for specific performance, breach of contract etc?
Best regards
Ben
Thank you for this and apologies for the delay in responding.
Assuming that a modern method of auction is the variety where you do not enter into a contract to purchase the property on the fall of the hammer but instead enter into a reservation agreement, there may be redress you have against the seller but it will depend on the content of the contract you did enter into and also the terms of the auction. The contents of these documents will determine what that redress, if any, is.
This will not likely be a claim in misrepresentation but potentially a claim in breach of contract, which is also something we can assist with.
Please feel free to contact us for a confidential discussion.
I have literally just sold my property via traditional auction. The buyer has just emailed to say it’s a mistake and he is mentally unwell. Part of the deposit was taken once the hammer fell with remainder of deposit to be paid within1 working day ( by Monday). He seemed perfectly coherent prior to this disclosure and I suspect is just using this as a means to try and wiggle put of being liable for the contract he entered into at auction.
Really can’t believe this! Any advice gratefully received – can he use mental health as valid reason to wiggle out of the contract?
Thank you for your comment. Without seeing the full paperwork relating to this situation I am not able to advise definitively but I will strive to give some pointers here.
Normally the situation is that the buyer must complete on the completion date or you will have redress against them pursuant to the terms of the contract. Mental health, however, is not something that I can say definitively one way or another. It sounds like he might be claiming that at the time he entered into the contract (i.e. he bid) he did not have mental capacity. Are you able to assist us with what exactly the mental health reasons he has cited are, as if he did not have capacity then the contract cannot have been said to have been properly formed, but that is a very high bar to surmount.
You also need to consider what exactly you want to do here and whether you want to force the sale to go ahead or try to recover the loss and damage you’ve undergone from him. Please feel free to contact us for a confidential discussion.