sealed Bid

rigram

I am interested in purchasing a house in my area and as there is alot of interest it is going to sealed bids.
Can anyone tell me if a sealed bid is legally binding.
I only viewed the property today and the bids have to be in by Monday so I won't have time for a survey etc so I am concerned that if I make an offer which is accepted and then find there is a problem with the property I will be in trouble

I have been told by a friend that you should write "subject to contract and without prejudice" at the top of the letter.
Has anyone had any experience of sealed bids.

Thanks

alanobrien

In england nothing is legally binding until you exchange contracts, scottish law is different.

your friend is correct, uses those phrases in any communication, its standard legalise and provides you with get out options.

dippy

As long as you haven't exchanged contracts which is the last stage in the sale process nor have you signed any agreements, anything goes in England. At the last moment, you can ask to bring the price down, stop the whole process, etc. Even though you've already spent time and money on the sollicitors, surveys, etc.

A seller tried to shaft one of my mates. In a falling market, the seller tried to ask for a 1% increase on the agreed price prior to exchanging contracts (after 4 months of proceedings). Another party did the right thing and he didn't have to fork out the extra money in the end.

rigram

Thanks for the replies.

Very much apreciated

Debsie

I think these are used when the agents are either having difficulty feeling the price level or are fed up with applicants coming back with a little bit extra. It can also be a ploy to establish best price for a vendors personal motives (eg divorce settlements) when the vendor is not actually going to sell.

You can get formal tenders which form a contract (similar to a bid at auction)but these are usually used for commercial property. If it is one of these it will be run by a solicitor and you will have signed a contact when you make the bid.

Writing your best price & terms will not bind you in normal circumstances in England if you use the caveats advised in earlier posts.