Anyone explain conditional auction?

the_root_of_all_evil

here is my thread on this disgusting practice

iamsold conditional auction rip off

https://forums.moneysavingexpert.com/discussion/comment/52714507#Comment_52714507

and it really is a ripoff, and good luck completeing in 28 days

SteveK1

I'm a Developer and have bought from this type of 'Auction' locally. I refused to pay the 'fee' until after we exchanged or to sign their 'Contract' and must have had about 10-15 angry phone calls from them demanding their 'fee' and threatening to block the sale. I knew they couldn't as I was in direct contact with the Seller and I expect they'd have trouble getting this type of contract to hold up in Court anway? More importantly if you haven't signed a contract then there's nothing for them to try and enforce as you have no legal agreement with them? Of course like anyone in the 'game' I paid £5k less to the buyer to cover this scam fee so they lost out too and after the angry calls came nicely nicely 'please pay us' ones!. The only winner is the Agents. I did pay the fee as I told them I would on Completion as I'd factored this in to the price I wanted to pay anyway.
It's basically a scam and I expect a Court case will eventually lead to it being banned or changed radically; or the Law will catch up with them and ban it?
I'm not as lawyer tho' so treat the above as my personal experience only and good luck.