I am the successful bidder on a house at auction and have paid a booking deposit (10%) to the estate agent. I have hired a solicitor and arranged for a survey to be carried out. However , I am now having serious doubts about proceeding with the purchase, mostly to do with the location of the property. No contract has been signed. What should I do if I decide not to buy?
Unsure Purchaser.
- Thread starter Markove
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PaddyBloggit
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Once the hammer falls, there is a binding contract, which is subject to the conditions of sale. If you're the buyer, you will be asked to sign the contracts and pay a non-refundable deposit, usually 10pc of the purchase price. It will need to be paid immediately on completion of the auction.
You'll have to talk to your solicitor but if you decide not to go through with the sale you could be sued for not completing the sale.
Auctions are usually final once the hammer falls.
You'll have to talk to your solicitor but if you decide not to go through with the sale you could be sued for not completing the sale.
Auctions are usually final once the hammer falls.
Brendan Burgess
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Hi Mark
This doesn't make much sense.
If you bid at an auction, you should have had the solicitor look at the legal documentation beforehand and you should have had the survey done beforehand. It's a waste of money getting the surveyor to look at it now.
Was it a public auction? If it was just a bidding war, then you have no legal obligation and can pull out at any time. If so, pull out now before incurring the expense of a solicitor and survey.
Brendan
PaddyBloggit
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As soon as the hammer goes down on the auction and you’ve paid the deposit, the property is yours and so are any problems it comes with – so make sure you’ve got your documents in order.
I can't see how you have any recourse to pull out after a change of mind. That's the whole point of auctions. Once the hammer goes down, it's yours.
From Bidx1 [broken link removed] (they operate in Ireland:
What makes an auction different from a private treaty sale?
Unlike the private treaty process, auction properties are not sold ‘subject to contract’, ‘subject to finance’ or ‘subject to survey’. When a lot is sold, a legal and binding contract has been formed - if you are the successful bidder, you are legally obliged to complete the sale.
We strongly advise potential purchasers to check that they have read and understood all the various legal documents and terms and conditions prior to bidding.
I can't see how you have any recourse to pull out after a change of mind. That's the whole point of auctions. Once the hammer goes down, it's yours.
From Bidx1 [broken link removed] (they operate in Ireland:
What makes an auction different from a private treaty sale?
Unlike the private treaty process, auction properties are not sold ‘subject to contract’, ‘subject to finance’ or ‘subject to survey’. When a lot is sold, a legal and binding contract has been formed - if you are the successful bidder, you are legally obliged to complete the sale.
We strongly advise potential purchasers to check that they have read and understood all the various legal documents and terms and conditions prior to bidding.
Read this from the BidX1 website and then tell us what you think!
"All bidders register in advance of the auction and provide a deposit, relative to the reserve price of the asset that they are bidding for. Every bid placed during the auction is logged and displayed on the website in real-time; the process is fully transparent.
BidX1 exchange contracts on behalf of both the buyer & the seller on auction day, and these contracts are legally binding.
Memo to OP: Don't bid at an auction unless you're sure
mf
PaddyBloggit
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but ... When a lot is sold, a legal and binding contract has been formed - if you are the successful bidder, you are legally obliged to complete the sale.
To take part in the auction you should have signed a document agreeing to the terms and usually stating specifically that the contract is binding once you are successful.
This is a rather naive post, auctions are not for the faint of heart, you bought the property, a survey now is like closing the gate after the horse has bolted.
When participating in an online auction have all your due diligence done in advance.
You own it now.
When participating in an online auction have all your due diligence done in advance.
You own it now.
In fairness, I think the majority of the general public would not realise the irreversible nature of a successful bid at auction. The OP obviously should have done his/her research and read the basic information beforehand but I am sure they are not the first to fail to do this. We regularly see people in the media who have made crazy decisions blaming others and looking to get bailed out.
I would advise Markove to confirm with their solicitor that the purchase is binding and hope that despite their current worries they will be happy with the purchase in the future.
I would advise Markove to confirm with their solicitor that the purchase is binding and hope that despite their current worries they will be happy with the purchase in the future.