288 thoughts on “Dealing with property auction issues”
Recently purchased a property through online auction. Placed a bid at the last minute, and mistakenly put £800,000 instead of £80,000. No option on the site to rectify the mistake or to cancel bid. The auction ends, outbidding everyone at £140,000. Home report is £90,000. Reserve for the property was £140,000. Emailed FuturePropertyAuctions. No response. Received a call later, asking to make payment. Explained scenario and genuine mistake. Manager accepts this may have been a geniuine mistake, but offers no alternative. Either pay immediately, or face legal action. What rights do i have as a buyer for this obvious mistake? No one would ever bid £800,000 for a £90k property.
Thank you for your comments. While we cannot give specific advice on this, unfortunately the starting position for a sale at auction (subject to the terms of same) is that once you enter a bid, you are contracting to purchase the property at the price of your bid if it is the highest bid, and once the hammer falls, that is the definitive formation of the contract and you will be bound legally at that stage. While there are legal provisions to alter or rescind a contract due to a mistake, regardless of whether these are engaged it may be difficult to prove that the bid was a genuine mistake by yourself. If you are seeking further advice on this, I recommend that you telephone us on our office number for a discussion in complete confidence.
Hi Mark, I bought a land for 6000 in Scotland, there was 3000 deposit money I already paid to auctioneer but he does not provide legal pack. he is saying he can provide legal pack to solicitor. there was no legal pack in advertising site. I paid my deposit through the credit card, can I pull back from my contract to buy and how should be other consequence and can I get back my money which I paid through deposit. please advise.
Thank you for your comment. As the property is in Scotland it may be that Scots law applies to the transaction, so you may be better served consulting a solicitor there. Scots law is not something we have any experience in.
Asking around via agent etc I have discovered the tenant raised some maintenance issues. Likely to have been after the auction was listed. What is the situation with these. Will I simply inherirt them or does current landlord need to attend to them prior to completion
Thank you for your comment relating to the tenant raising maintenance issues during the sale of property at auction. While we are unable to give specific advice here as we have not seen the exact terms of the contract or of the auction, whether the seller would have to deal with them depends upon what exactly is in the terms and conditions as they may affect the default position, though normally a purchaser of a property that is let to someone else “steps into the shoes” of the previous freehold owner and would inherit these. Please feel free to contact us at our office number for a confidential discussion.
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Recently purchased a property through online auction. Placed a bid at the last minute, and mistakenly put £800,000 instead of £80,000. No option on the site to rectify the mistake or to cancel bid. The auction ends, outbidding everyone at £140,000. Home report is £90,000. Reserve for the property was £140,000. Emailed FuturePropertyAuctions. No response. Received a call later, asking to make payment. Explained scenario and genuine mistake. Manager accepts this may have been a geniuine mistake, but offers no alternative. Either pay immediately, or face legal action. What rights do i have as a buyer for this obvious mistake? No one would ever bid £800,000 for a £90k property.
Thank you for your comments. While we cannot give specific advice on this, unfortunately the starting position for a sale at auction (subject to the terms of same) is that once you enter a bid, you are contracting to purchase the property at the price of your bid if it is the highest bid, and once the hammer falls, that is the definitive formation of the contract and you will be bound legally at that stage. While there are legal provisions to alter or rescind a contract due to a mistake, regardless of whether these are engaged it may be difficult to prove that the bid was a genuine mistake by yourself. If you are seeking further advice on this, I recommend that you telephone us on our office number for a discussion in complete confidence.
Hi Mark,
I bought a land for 6000 in Scotland, there was 3000 deposit money I already paid to auctioneer but he does not provide legal pack. he is saying he can provide legal pack to solicitor. there was no legal pack in advertising site. I paid my deposit through the credit card, can I pull back from my contract to buy and how should be other consequence and can I get back my money which I paid through deposit. please advise.
Thank you for your comment. As the property is in Scotland it may be that Scots law applies to the transaction, so you may be better served consulting a solicitor there. Scots law is not something we have any experience in.
I recently bought at auction.. Onlineone
Asking around via agent etc I have discovered the tenant raised some maintenance issues. Likely to have been after the auction was listed. What is the situation with these. Will I simply inherirt them or does current landlord need to attend to them prior to completion
Thank you for your comment relating to the tenant raising maintenance issues during the sale of property at auction. While we are unable to give specific advice here as we have not seen the exact terms of the contract or of the auction, whether the seller would have to deal with them depends upon what exactly is in the terms and conditions as they may affect the default position, though normally a purchaser of a property that is let to someone else “steps into the shoes” of the previous freehold owner and would inherit these. Please feel free to contact us at our office number for a confidential discussion.