Buying a Court Order property prior to the auction.

ding_dong

Hello Experts,:money:

Has anyone bought a 'court order' property before the auction please? This property I am interested in is going to auction as per a court order. To cut the story short, the 'claimant' or seller (sitting tenant in this case) has been granted full authorisation by the court to sell the property by auction. I have spoken to the seller and my solicitors and both agree that I can buy it prior even if the order says 'by auction'. I have spoken to the seller/claimant and he seems to be happy with my offer and might even accept it.

However, my problem is what if after the transaction the owner ('defendant') comes back saying that it is undersold because it was sold prior then it might go in all sort of legal complications for not sure how long. There have been recent valuations done by local estate agents and the auctioneer himself and my offered price, which is same as the middle of the guide price and actual reserve price (I know it), is not not too far off from these valuations. These valuations are 100-130K and I am offering 100K. So that way it is not too far off. Property is in a derelict condition and has nothing in it. I also will have to deal with the tenant post purchase but am fine with it. Once done up it can go up in value therefore it might go up by quite a bit in the auction which is what is tempting me to buy in advance.

I know none of you can offer legal advice here but has anyone got direct experience or knowledge of this please who can please advice me something?

Thanks.

AdrianC

ding_dong wrote: »

However, my problem is what if after the transaction the owner ('defendant') comes back saying that it is undersold

Not your problem.

The previous owner's claim would be against the vendor and their solicitors, not against you.

Caz3121

are you a cash buyer?
I expect a derelict property with a sitting tenant would make a mortgage a challenge

G_M

Is the 'court order' registered on the Title? If so, it can only be sold with consent of the court. and since they have specified auction, consent might be witheld.

The reason an auction was specified is probobly so that there can be no subsequent claim by anyone that it did not go for market value. Even if you pay an amount valued by multiple surveyors, auctioneers, estate agents etc, those have less weight than an actual aucion which proves that no one was willing to pay more.

ding_dong

AdrianC wrote: »

Not your problem.

The previous owner's claim would be against the vendor and their solicitors, not against you.

Thanks - this is what I think.

But I guess I'll be in a dilemma whether to start works on it immediately or not because if the previous owner files a case(and wins - highly unlikely though) then all my time, money n effort will go to the dogs. But I guess that's a chance I'll have to take - I guess I'll wait for a couple of months to see what happens - not sure.

The court order however states a reserved price in it and that is based on the current property condition and the market valuations done at that time - judge did take all that into the account before passing his judgement. That's why I am kind of confident that previous owner probably won't have much weight in his case. I will have copy of all the 4 valuations too for my records to support along with property's dated photographic/video evidence.

What do you think - I am on the right train of thoughts here!?

Thanks.

ding_dong

Caz3121 wrote: »

are you a cash buyer?
I expect a derelict property with a sitting tenant would make a mortgage a challenge

Yes - Cash. Thanks .

AdrianC

ding_dong wrote: »

But I guess I'll be in a dilemma whether to start works on it immediately or not because if the previous owner files a case(and wins - highly unlikely though) then all my time, money n effort will go to the dogs.

No, they'll never reverse the sale.