Redc

RHemmings

Their FAQ state that a binding contract is formed when the property is sold at auction, and the buyer can't back out. Surely this must bind the seller as well. I thought that contract terms that bind one party but not another were unfair terms under contract law.

http://www.auctiontoday.co.uk/faqs.php#q11

Q. What if I change my mind? Can I cancel the transaction after the fact?
Ans. No. Once the auctioneer announces "SOLD", a legal binding contract has been established. That is it why it is so important and required for you to conduct all your due-diligence prior to auction day. The buyer is responsible for the entire purchase price if they back out of the purchase.

tbs624

RHemmings wrote: »

Their FAQ state that a binding contract is formed when the property is sold at auction, and the buyer can't back out. Surely this must bind the seller as well. I thought that contract terms that bind one party but not another were unfair terms under contract law.

http://www.auctiontoday.co.uk/faqs.php#q11

Both parties *are* bound.

m_13

I see that 'Important Information for Buyers' has finally made it on to their website. Contrary to what the website previously said, it now says:

Each lot is sold subject to the Conditions of Sale. A copy of the Common Auction Conditions (Edition 2) is printed in the auction catalogue and posted on the website ( www.auctiontoday.co.uk ) and is reproduced with the consent of RICS, and in the case of Scottish lots, the Articles of Roup (please see the website of the Conditions of Sale for lots located in Northern Ireland). Any Extra Conditions of Sale, Special Conditions of Sale or any other Addendum shall be available for viewing on the website ( www.auctiontoday.co.uk ). Such documents will be posted as they become available so please check the website regularly for updates. Any Addendum and Auction Day Notes (which will be provided on the auction day) will detail any corrections, amendments and/or additions to the particulars and Conditions of Sale for any of the lots. It will be assumed that you have read the Addendum and the Auction Day Notes before bidding.

Unfortunately Common Auction Conditions (Edition 2) hasn't made it to the website but it is available on the RICS website.

Section 28 of those conditions say:

Contracts (Rights of Third Parties) Act 1999

The contract is enforceable only by the seller and the buyer and (if applicable) their successors in title and, to the extent permitted by the conditions, by the auctioneers.

It looks like REDC have not been able to use their normal technique of the buyer being bound and the seller having 14 days to decide whether to accept!

RHemmings

tbs624 wrote: »

Both parties *are* bound.

Yes, sorry, I wasn't clear enough in putting my thoughts down. I assumed that the buyer being bound implied that the seller was bound too. Thanks for clearing that up.

There was someone who made an offer on a property, but this was refused and the property sent to auction. If the property sells at auction for less than the offer, and if it were me involved, I'd find the previous owner and tell them what my offer was. So that they can claim on the bank.

I'd guess that the reserve will be set at or above the previous offer though.

Wig

m_13 wrote: »

I see that 'Important Information for Buyers' has finally made it on to their website. Contrary to what the website previously said, it now says:

Unfortunately Common Auction Conditions (Edition 2) hasn't made it to the website but it is available on the RICS website.

Section 28 of those conditions say:


It looks like REDC have not been able to use their normal technique of the buyer being bound and the seller having 14 days to decide whether to accept![/left]

Is this "normal technique" what they have used in the USA? I have never heard of them in the UK until now.

Have they got a bad reputation?

I must say I don't like a number of things,
*Their TV advert that is jingoistic I assume to attract the same sort of people attracted by jingo TV loan adverts!
*The FAQ on their website which is in the same vane as their TV advert, more of a hard sell technique than offering any useful advice.
"That's correct! There is no set starting bid, YOU start the bidding where YOU like!."
*The 10% buyers fee! Which I'm sure MANY bidders will not be aware of (their own fault I know)
*Not publishing results
*Poor viewing in advance opportunities

Is anyone here going to the Birmingham 2nd April? Perhaps you could tell me the results.

IHS88

Mortgagees in possession offering properties for sale via REDC is in my opinion, disgusting.

Is it not the lenders duty of care to be seen to try and get as much as possible from for the sale of the properties they repossess?

I feel sorry for the repossessed owners of these properties. With REDC's 10% buyers premium, 10% has just been wiped off the amount they will recieve after the sale.

I know other auctioneers are concerned that duty of care to the former owner of these properties has been compromised.