Conditional internet house auctions

KMK

Has anyone out there used this system of buying and selling houses online? I had never heard of it.

You bid online and if the offer is accepted, you then pay 5% of the bid as a reservation fee to secure the house. I assumed that this was deducted from the price eventually paid for the house, but it simply pays the costs of the site. The seller pays nothing.

When I challenged the hefty nature of this percentage, I was told that the low prices of the properties on the site take all this into account.

I would welcome any feedback from anyone who has bought or sold this way.

GDB2222

So, you pay 5% up-front, with no guarantee of actually getting the property? Sounds absurd to me. Do you get to survey the property before bidding?

maninthestreet

The vendor should be paying the site owner for finding a buyer for the property.

GDB2222

http://www.completeauctions.co.uk/

These people? Their website is no longer active apparently.

G_M

I've got a fantastic, immaculate 4 bedroom property in Chelsea. Gym in the basement and pool on the roof terrace.
Similar properties go for £1.7m

Forget the auction - too much trouble. First person to send me 5% of £750K can have it for that price.

PM me for bank transfer details. Act fast. This offer won't last.

KMK

Perhaps I did not explain too well. The 5% reservation charge secures the house for you but it is not deducted later from the final amount owed. It pays the admin costs?

The point made about the survey is a good one because if you have a survey done, put in a bid which is not successful, then you have wasted the survey money. However if you wait for the bid to be accepted, have a survey done which shows big problems, and decide to withdraw from the sale you lose the 5% reservation fee.

I just wondered if anyone has had a positive experience with this system. Our local estate agent is really pushing it.

GDB2222

I suspect it was someone's bright idea, and it has simply not caught on. Is that the right auction website? If so, it looks like they have sold a handful of properties, at best.

PasturesNew

Sorry ... it's a biggun:

It looks like only the successful bidder gets charged that:

1. Where a successful bid is received either at a live auction or on-line in between live auction events, the successful bidder will be required to pay a Reservation Charge. This must be paid by cleared funds to Complete Auctions who will issue an acknowledgement and obtain the appropriate details required to progress the sale. The fee will be 4% of the agreed price (plus VAT), or £4000 (plus VAT) whichever is the higher.

1. General conditions of sale
In these conditions the following terms shall bear the meanings as outlined in points 1 a-d below:

a) “The Auctioneer.” Complete Auctions staff and representatives.

b) “Information about the Auction” – information appearing on the Complete Auctions website, catalogue and any addendum supplied by Complete Auctions.

c) “The particulars” – the description of the identity of any specific property (including any plan or photograph contained on the website, in the catalogue or any addendum).

d) “The property” – The property offered for sale at a Complete Auctions sale to which the website or catalogue (including any addenda) relates. If appropriate “the property” refers to each individual lot.

e) The Auctioneer reserves the right to regulate the bidding and can, at their sole discretion, refuse to accept any bid or bids with no obligation to provide any explanation for the refusal.

f) Any property may be withdrawn at any time after its entry into the auction.

g) The highest bidder for each property shall be the deemed the Buyer of that property, and will be expected to complete the purchase within the timescales laid out within these terms and conditions.

h) Any statements made in the Particulars or otherwise save for any statements made in writing by the Seller’s solicitors relating to the property, that are the subject of the Auction are made without responsibility on the part of the Auctioneer or the Seller. No such statement may be relied upon as a representation of fact. Potential buyers must satisfy themselves by inspection or otherwise as to the accuracy of any such statement and, save as much as herein provided, neither the Seller nor the Auctioneer has any authority to make or give any representation or warranty whatsoever in relation to any property featured in the auction.

i) In the light of the nature of the sale and the information given it is to be implied from any Buyer or potential Buyer bidding at the sale that they accept that the limitations upon the responsibilities of the Auctioneer herein contained are reasonable.

j) The Auctioneer makes no representation as to passing rents, save for those contained in the Special Conditions of sale or replies to Tenancy Enquiries made available by the Seller’s solicitor at, or prior to the auction (if any).

k) Whilst every endeavour is made to provide accurate property descriptions, all Buyers are deemed to have verified such description themselves and any incorrect statement, error or omission found in the Particulars or Special Conditions of sale shall not annul the sale or entitle the Buyer to rescind the agreement. The Buyer shall have no claim, or be allowed any compensation in this respect.

l) No objection or requisition shall be raised as to the permitted user of the property for the purposes of the Town and County Planning Acts or any Acts for the time being amended or replacing the same and nothing contained in these conditions shall be deemed to constitute any warranty by any Seller or the Auctioneer that a property or any part thereof is authorised under the Town and County Planning Acts for use of any specific purpose.

m) If a property is let no representation is made or is to be implied as to the existence or otherwise of any sub-tenancy.

n) No representation or warranty is made or to be implied as to the ownership of any chattels or installations in the property but the Seller and Buyer shall jointly and severally indemnify the Auctioneer against any third party claims of whatever nature in respect thereof.

o) The Auctioneer accepts no responsibility for any claims by the Seller or Buyer arising out of this sale in respect of specific contractual obligations undertaken by the Auctioneer in writing prior to the sale.

p) Each Buyer will take the property or properties subject to, and shall be responsible for, the compliance with all notices and/or requirements relating to the same whether such notices and/or requirements shall have been made by the local authorities or any other person or body.

q) Nothing shall be incorporated in any sale either collaterally, directly or indirectly whether by way of condition, warranty or representation as to whether (in the case of property sold subject to any tenancy or tenancies) there are subsisting any sub-tenancies or similar such occupations and, whether or not any such shall be disclosed at or before the Auction, the Buyer shall be deemed to purchased with full knowledge of any sub-tenancies that there may be whether or not he shall have made enquiries of the Auctioneer or have inspected and no objection shall be taken or requisition made on account thereof.

r) Unless otherwise stated, the sale is subject to a reserve price for each of the properties. At the vendor’s discretion this reserve may or may not be disclosed in the property particulars. If undisclosed, the Seller reserves the right to bid themselves (or through their agents) during the auction. All sellers reserve the right to sell all or any part of the property before the final Auction date.

s) The tenure of the properties and the estate or interest sold, are as stated in the particulars. For the avoidance of any doubt the Auctioneer shall not be liable should the Seller be unable to show title, nor for any defect in the Seller’s title.

t) The Property shall be sold subject to the matters (if any) contained in the addendum to the Auction Catalogue which will be available in the Auction Room on the day of the sale and the Buyer shall be deemed to purchase with full knowledge of any such matters.

2. How to Bid
There are three ways to bid on the night of the Auction: - in person, by previously submitted internet bid and proxy bid.

In person – on arrival at the auction venue, all persons interested in bidding in person must register and obtain a bidders card.

Proxy bid – a purchaser who cannot attend the auction may instruct in writing a member of Complete Auctions staff to bid on their behalf under the terms and conditions of the auction. Contact us for the appropriate Proxy Bidding Form. This form must be received prior to the Auction and Complete Auctions must be in possession of cleared funds with respect to the Reservation Charge if the bidder is successful.

Internet Bid – by visiting www.completeauctions.co.uk you can bid online by following the simple instructions. It is important to note that this is simply an on-line version of a proxy bid. There will be no real time, on-line bidding taken during the auction.

All bids are to be made clearly. The Auctioneer reserves the right to regulate bidding and to refuse undesirable bids. The vendor reserves the right to bid up to the reserve price or authorise the Auctioneer to do so. In the event of any dispute in respect to the auction, the Auctioneer’s decision is final.

3) Reserve Prices, Guide Prices, and the sale of the property prior to the final auction date.
All properties are sold subject to a reserve price, unless otherwise stated. Complete Auctions will confirm with each individual vendor whether they wish this reserve price to be disclosed. If the vendor wishes the reserve to be disclosed, this will be made clear in all property particulars in the catalogue, website etc. Any properties to be sold where the reserve price is not disclosed will be advertised with an expected price range. This is intended to indicate an approximation of the expected acceptable price and to give prospective purchasers an indication of the level at which the properties have previously been on the market (if appropriate). These prices are not asking prices and are purely for guidance. Prospective purchasers are advised to contact Complete Auctions on [EMAIL="info@completeauctions.co.uk"]info@completeauctions.co.uk[/EMAIL] to check availability of each lot prior to the auction sale as some lots may be sold prior to the final auction date. Whilst every effort is made to ensure the price range quoted is not misleading, it is possible that an undisclosed reserve price set for an auction lot may exceed the lower range figure.

4) Reverse (also known as “Clock” or “Dutch”) Auctions
From time to time Complete Auctions may sell properties using the reverse auction method. Full details will be advertised at the time and all fees and charges will remain unchanged.

5) Credit Card Payments
Any payments made by a credit card will be subject to a 3% surcharge.

6) Property descriptions
To the best of our knowledge, all details are correct at the time of going to press. Complete Auctions have not inspected all properties in the catalogue and rely on information provided by our partner Estate Agents. We recommend all purchasers satisfy their own requirements prior to bidding. (See 1.k) above)

7) Identification
All buyers will be required to produce a form of identification such as a drivers licence, passport or utility bill. Please ensure appropriate documentation is brought to the Auction if you intend to bid.

8) Misrepresentation Act 1967
NOTICE: Complete Auctions for themselves and for the vendors of any property in any catalogue whose agents they are, give notice that:

(i) The particulars or property featured in any catalogue do not constitute, nor constitute any part of, an offer or a contract;

(ii) All statements contained in any catalogue relating to featured properties are made without responsibility on the part of Complete Auctions or the Vendor.

(iii) None of the statements contained in any catalogue are to be relied on as statements or representations of fact;

(iv) Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of each of the statements relating to any properties in any catalogue.

(v) The vendor does not make or give, and neither Complete Auctions nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to properties featured in any catalogue.

Complete Auctions: Terms & Conditions relating specifically to conditional auctions
The following terms and conditions apply wherever the Auctioneer receives an acceptable bid on any property entered into the auction whether this is on-line or at a live auction event:

1. Where a successful bid is received either at a live auction or on-line in between live auction events, the successful bidder will be required to pay a Reservation Charge. This must be paid by cleared funds to Complete Auctions who will issue an acknowledgement and obtain the appropriate details required to progress the sale. The fee will be 4% of the agreed price (plus VAT), or £4000 (plus VAT) whichever is the higher.

2. All parties agree to take all steps necessary to progress to a formal exchange of legal contracts within 30 days of a successful bid being accepted. This period will officially end at 5.00pm on the 30th day following acceptance of the successful bid. The Reservation Charge paid entitles the successful bidder to a 30 day period of exclusivity during which no further bids will be considered (see (iii) below).

3. During the 30 day period following a successful bid the Seller agrees to take the following actions:-

(i) To instruct their Solicitor, without delay, to issue all appropriate documentation (including the contract for sale) and provide appropriate information to, and answer all relevant enquiries as required by, the Buyer’s solicitor to allow progress to a formal exchange of contracts within the aforementioned 30 day period.

(ii) To allow access to the Property to any suitably qualified person appointed by the Buyer or their Mortgagee who may need to value or survey the property.

(iii) Not to take any steps to encourage any further potential interest in the property, including not allowing access for viewings or facilitating any other negotiations, to any other party during the aforementioned 30 day period.

4. During the 30 day period following a successful bid the Buyer agrees to take the following actions

(i) To expedite all matters pertaining to any loan or mortgage application (should they be required in connection with the purchase) at the earliest possible opportunity. This should include the arrangement of any survey or valuation in order to ensure all appropriate financial arrangements are in place to allow exchange of contracts within the aforementioned 30 day period.

(ii) To instruct their Solicitors without delay to undertake all work necessary, including obtaining and issuing all necessary documentation and information to enable contracts to be exchanged within the 30 day period.

5. Both Seller and Buyer agree:

a) If the Buyer decides not to proceed with purchase for any reason he or she shall immediately inform Complete Auctions whereupon this Agreement will lapse. In this event, any Reservation Charge paid is deemed non refundable.

b) If the Buyer is not in a position to exchange contracts within the timescale of the 30 day period then this Agreement shall immediately lapse. In this event, any Reservation Charge paid is deemed non refundable.

c) If the Seller decides not to proceed with the sale, he or she shall immediately inform Complete Auctions whereupon this Agreement will lapse. Under these circumstances any Reservation Charge paid by the Buyer will be reimbursed to the Buyer by Complete Auctions. In this instance the Seller will be charged a withdrawal fee (see note 6 below).

d) This Agreement does not bind either the Seller or the Buyer to the sale/purchase. Rather it is a firm commitment on behalf of both parties to proceed to exchange of contracts within the 30 day period.

e) The Seller and the Buyer are entering into this Agreement in good faith and relying on its terms.

6. Upon signing the Terms of Engagement supplied by Complete Auctions the seller acknowledges that the property will be sold under these auction terms and conditions. Should the seller decide to withdraw from the auction at any time after this point they should be aware that a withdrawal fee (currently £199) will be charged.

PasturesNew

Complete Auctions - 10 Scrubwood Lane Molescroft Beverley HU17 7BE - Tel: 07955 076639

mustrum_ridcully

PasturesNew wrote: »

Complete Auctions - 10 Scrubwood Lane Molescroft Beverley HU17 7BE - Tel: 07955 076639

Mobile number, never a good sign for a business (even for a tradesman it's good to see a landline number).

PasturesNew

mustrum_ridcully wrote: »

Mobile number, never a good sign for a business (even for a tradesman it's good to see a landline number).

Not everybody has landlines now, although Skype/similar might be a solution.

I couldn't even have a landline if I wanted one.