Urgent ! Auction Property sold through misrepresentation.

eddddy

bxboards wrote: »

...
You have a legally binding contract, so you either pay up or forfeit your 10% deposit.

... and pay any damages (i.e. consequential losses)

The RICS common auction conditions say:

If the buyer fails to comply with a notice to complete the seller may, without affecting any other remedy the
seller has:
(a) terminate the contract;
(b) claim the deposit and any interest on it if held by a stakeholder;
(c) forfeit the deposit and any interest on it;
(d) resell the lot; and
(e) claim damages from the buyer

So if the property sells for less at the next auction, the OP will have to pay the difference, plus extra legal fees, auction fees.

Or even worse, if the seller has now exchanged contracts to buy another property with the auction proceeds, the OP's costs could start sky-rocketing.


@Auction_buy: Perhaps look for bridging finance so you can complete the purchase.

That might give you time to complete a mortgage application (or put it back in the next action, if you're unsuccessful.)

AMILLIONDOLLARS

Something similar happened to my brother. It was not as described on the Auction website or the brochure. He stopped his deposit cheque immediately, and got on to his solicitors, who were good in pointing out the discrepancy. The Auction house could not hold him to the deal. You must be quick and respond.

I believe if you did not view the property and was completely reliant on the description, as described above, which is obviously misleading, you might have a very good case.

Good luck

AMD

moneyistooshorttomention

usefulmale wrote: »

Nothing you have written suggests 3 bedrooms. It states 3 rooms. That is what you have got.

I counted that as being 2 rooms plus kitchen and bathroom in actual fact.

BUT description said 3 rooms plus kitchen and bathroom.

= 1 room short.

Fingers crossed OP that you'll find a way to have them for it...as to say a house has one more room than it has is misrepresentation in my book...but I don't know whether there is a legal way to comeback on this.

AdrianC

moneyistooshorttomention wrote: »

BUT description said 3 rooms plus kitchen and bathroom.

Did it? Where?

usefulmale

moneyistooshorttomention wrote: »

I counted that as being 2 rooms plus kitchen and bathroom in actual fact.

BUT description said 3 rooms plus kitchen and bathroom.

= 1 room short.

This word does not appear anywhere in the description given by the OP.

maninthestreet

I'm interested to know what research the OP did on buying a property at auction before going anywhere near a property auction, and what research they did on the property in question before actually bidding on it at an auction.

Marktheshark

If you bought this Blind thinking it had 3 bedrooms in a "studio" flat then I have some advice :
This is not your thing.
Sorry but its not.

Leon_W

If it is the property bxboards has linked to above then the clue is in the title "STUDIO FLAT" !!


A studio flat comprises of Bathroom, Kitchen, and Living/Sleeping room.


Now, this does raise problems for some lenders and banks as some of them will not lend on studio flats at all and some will have a minimum size requirement.

jjlandlord

AdrianC wrote: »

Did it? Where?

Well:

‘Reception/Kitchen, Three Rooms, Bathroom/WC’

In a description it is not unreasonable to interpret this as an enumeration.

However, if it was also described as a "studio flat" then it should be clear.

Jhoney_2

bxboards wrote: »

Is it this property here?

http://www.rightmove.co.uk/property-for-sale/property-48236497.html

'
key features

• For sale by auction
• Flat
• Number of Bedrooms: 0
• Number of Bathrooms: 1
• Number of Reception Rooms:'

If so , as it's London it's probably still a good price.


I have bought property at auction, and there are some really bargains to be had, but you do need to view them.


You have a legally binding contract, so you either pay up or forfeit your 10% deposit.

If this is indeed the lot, surely studio flat in the title was a clue to how many 'bedroom(?)'s you would get?

Mistake, not misrepresentation. £8K is an expensive lesson so chalk it up to experience and do more research before bidding at auction the next time.

I do hope you find a simple way out of this. If it ends up as just the 10% it may be the best result you could have hoped for.

However, if there was a lot of interest, They may agree to re-auction or you could put it straight back up for auction?.

Best of luck