Online property auction

Discussion in 'Property investment and tenants' rights' started by Palerider, Apr 2, 2018.

  1. Palerider

    Palerider Frequent Poster

    Posts:
    962
    I purchased an apartment at auction a few years ago, it was unoccupied when I bought it, I have since sold it but am keen to replace it with a house, the apartment owner occupier experience in a MUD is not for me.

    There is an online auction shortly with a house listed that I am interested in bidding for, the house appears to be occupied by a family and subject to a tenancy.

    Despite the Auction date being imminent there is no legal pack available to review, no viewings are scheduled and no details of the tenancy, obviously if this is HAP related then it is likely to be a long tenancy and I would have no interest in bidding.

    It is poor that the legal pack and tenancy details are not available.

    Have you any experience of purchasing property through auction with sitting tenants and a tenancy in place, I can live with a lease of not more than 12 months remaining, my objective is to move in myself.

    Any thoughts.
     
  2. llgon

    llgon Frequent Poster

    Posts:
    236
    Best to phone or email the contact person at the agent to query it. Not unusual for legal pack to be late but viewings of a house are usually scheduled at least a couple of weeks in advance of the auction. The agent usually has a deadline by which time the legal pack needs to be available, otherwise they will withdraw the property. They should be able to advise you of this date and if viewings are likely to be organised.

    If there is a tenancy in place and you wish to move in it might be better to steer clear. Even if the tenancy is due to end soon there is no guarantee that a family will move out when requested, particularly if it is in an area where alternative accommodation is difficult to find.

    As has been mentioned here before there is nothing to stop you knocking on the door and speaking to the occupants yourself although obviously caution is advised!
     
  3. Palerider

    Palerider Frequent Poster

    Posts:
    962
    I called them last week, he had no idea if there would be viewings and said I would be notified when the legal pack was ready, all pretty shoddy when you know the Receiver and the agent had the time to get all of the Ducks in a row, the auction is at the end of next week.

    The steer clear advice is solid advice but if I could navigate through this I will try but that's my view today, I have more homework to do but already I'm not prepared to pay much over the declared reserve, that would at least give me comfort over similar house sale prices achieved with a traditional sale.

    This area is no different to many others, accommodation is in short supply, I'm not keen to doorstep the tenant at this point anyway.

    The tenancy is not registered with the RTB.
     
  4. llgon

    llgon Frequent Poster

    Posts:
    236

    Certainly seems to be a lot of issues involved
     
  5. Carnmore

    Carnmore Frequent Poster

    Posts:
    116
    I had the same query on AAM recently. If it's the same auction house (well known and recently renamed) there is an imposed deadline for the legal pack to be uploaded otherwise it'll be withdrawn. I knocked on the door of the house concerned and spoke to the tenants who were elderly and had no intention of moving. They would have been entitled to the maximum notice period (208 days) but it would not have been straightforward to get possession and it might not have been an auspicious start for a new owner occupier with the neighbours. The legal pack was not uploaded in time so it wasn't auctioned.
     
  6. llgon

    llgon Frequent Poster

    Posts:
    236
    Ive checked my emails from contacts with Allsops a few years ago and their deadline for the legal pack was 8 working days before the auction at the time.
     
  7. Andy836

    Andy836 Frequent Poster

    Posts:
    302
    I wouldn't be so sure the receiver has any ducks in a row. From experience, they are often completely useless.
     
    Annie51 likes this.
  8. Palerider

    Palerider Frequent Poster

    Posts:
    962
    My last purchase was also at auction, same firm just their previous name, the amount of personal time, my solicitors time and general grief and frustration to get it closed was unreal.

    I was also an unsuccessful bidder on a property in July 2015, again a Receiver sale, I pass that unit often and that property has yet to close, I narrowly missed that bullet but it did make me wonder 1) how many get to close soon after closing and 2) just how much inventory there is yet to come.

    Before a Receiver puts a property on the market the very least I'd expect is that they can get to closing within a couple of months.

    8 days is too tight to ensure a full professional view on the legal pack.
     
  9. llgon

    llgon Frequent Poster

    Posts:
    236
    Wouldn't agree with this. If you have a capable solicitor willing to do it and if the pack has been prepared adequately, there shouldn't be any problems. Without these, eighty days probably wouldn't be enough, as your experience seems to demonstrate.
     
  10. Palerider

    Palerider Frequent Poster

    Posts:
    962
    Fair enough, I wasn't clear, I should have said 8 days was too tight to ensure a full professional view on the legal pack, to allow adequate time for any queries to be considered, possibly raised and then responded to.

    If the property can be advertised by this agent then is it not reasonable as a best practice to buyers and best industry practice to ensure the legal pack is available at the time the property is listed, never mind about 8 days.
     
    Annie51 likes this.
  11. Palerider

    Palerider Frequent Poster

    Posts:
    962
    Just a follow up, legal pack uploaded on Thursday, auction next Friday.
    No details of tenancy.
    Bank sale
    All monies judgment from another bank also on the deed.
    No queries or comments permitted, it is what it is.
    Buyer must repay security deposit to tenant, amount unspecified.
    Buyer has no right to any contents, if they are there fine but no queries permitted, if tenant removes white goods, all contents and the wallpaper so be it.

    If a judgment is registered from date of contract to date of closing it will be a matter for the purchaser to deal with.

    I think they live in a parallel universe, who could purchase a property on this basis, not me anyway.
     
  12. cremeegg

    cremeegg Frequent Poster

    Posts:
    2,276
    I had a look at the auction you refer to.

    Its not uncommon that properties there are cheap, for obvious reasons. However this time the few I would be familiar seem full priced to me.
     
  13. llgon

    llgon Frequent Poster

    Posts:
    236
    So Palerider, did the property you were interested in generate a bidding frenzy?
     
  14. Palerider

    Palerider Frequent Poster

    Posts:
    962
    It did, made almost 20% over reserve so somebody saw value in it.
     
    llgon likes this.