Auction - must exchange within 28 days

cs0rpc

Hi there,

I'm hoping to buy a property at auction on Tuesday night. The terms and conditions state that there must be exchange of contracts within 28 days and completion within a further 28 days.

My solicitor has flagged that searches may take up to 4 weeks to return, whilst my mortgage adviser has stated that mortgage products can take around a month. The estate agent has verbally assured me that there won't be a problem if either the searches or mortgage take a little longer to come through, but are refusing to commit this in writing.

What are people's view on this? Should I still press ahead at auction? What is the worst-case scenario? Could the seller pull the plug and walk off with my deposit if I'm not ready to exchange until day 29?


Thanks,

Rob.

ViolaLass

Of course they could, that's the point of a contract.

maninthestreet

Buying at an auction if you don't have the cash in the bank to buy the property is extremely risky.

davidmcn

If you're paying a deposit on the night, then you must be entering into some sort of contract. Have you checked what it says?

AdrianC

cs0rpc wrote: »

I'm hoping to buy a property at auction on Tuesday night. The terms and conditions state that there must be exchange of contracts within 28 days and completion within a further 28 days.

That's unusual - it's normally exchange at hammerfall, and completion within 28 days from the auction.

G_M

Very unusual auction. Please check!

Normally you are commited (contract in place and exchanged) when the hammer falls, and you then have 28 days to Complete. In which case, do NOT BID UNLESS

1) you have enough cash in the bank to Complete or
2) you already have a confirmed mortgage offer

Also do not bid unless

3) you/your solicitor have already done all legal checks (it's too late after the hammer falls - you can't back out)
4) and you have done whatever survey you need, either DIY or paying a surveyor

However, if you are right that you can bid at this (very unusual) auction and then have 28 days to change your mind before Exchange, then you have more flexibility as you can always back out.

I suggest you

a) read up on how auctions generally work and

b) read up on exactly how this auction works.

alchemist.1

Estate Agent seems to be lying to you, if he wont commit in writing.

If the contract period is 28 days then technically he could walk away with your deposit.

Marktheshark

The clue is in the word "BUYING"
If you are lending or borrowing money you are not buying.
The people lending you the money are buying.

This is why you need hard cash and expertise in building construction.
This is no place for trying to get a bargain, you will get taken for a ride and bidded up by the sellers, they will spot you out.

If you dont have hard cash to pay, you lose your deposit and the auction house charges for failed sale in the small print PLUS VAT on the lot !

AdrianC

Marktheshark wrote: »

The clue is in the word "BUYING"
If you are lending or borrowing money you are not buying.
The people lending you the money are buying.

Don't be ridiculous.

G_M

Marktheshark wrote: »

The clue is in the word "BUYING"
If you are lending or borrowing money you are not buying.
The people lending you the money are buying.

The clues are in the words 'BUYING', 'LENDING' and 'BORROWING'.


If you are 'BUYING', then you are buying.
If you are 'LENDING', then you are lending.
If you are 'BORROWING', then you are borrowing.

But quite what any of this has to do with the OP's question, or his intentions, I am at loss to understand!

skivenov

Exactly this. It is an auction, not a retail sale.

If you want searches done, do them up front.
If you're borrowing money, make sure it's in place up front.
If you want a look round, do it up front.
If you want a survey, do it up front.
If you want to talk to the neighbours, do it upfront.

Never trust anything told to you by:
a) an estate agent
b) a politician
c) a used car salesman

It's an auction, if you're in front when the hammer falls, you've bought it. If you don't go through with the sale within the timespan, it will be one of the most expensive mistakes of your life.

Does seem a strange auction though giving you 56 days to complete, 56 hours is a lot at some of them.