Will I lose £6k?

marksoton

Absolutely no chance would i be even entertaining any property on that basis.

Mfw2016

Once the time ran out, it revert to a standard house sale. The owner was then able to accept offers from the standard estate agent as they were taking them as well and the sale has "fingers crossed" gone to plan.

We only found out about this modern method when the first buyer pulled out once they found out about the 6K.

csgohan4

Walk away all day, unless you want to be taken for a ride

eddddy

Mfw2016 wrote: »

Once the time ran out, it revert to a standard house sale. The owner was then able to accept offers from the standard estate agent as they were taking them as well and the sale has "fingers crossed" gone to plan.

We only found out about this modern method when the first buyer pulled out once they found out about the 6K.

The seller may have problems.

Last time I looked at the contract this auction company use, it's terms included:

• The seller gives the Auction co sole selling rights for 8 weeks (with 21 days notice period)
  
• If somebody is introduced during the "sole selling rights" period, who eventually buys the property, the seller must pay the Auction co their full fees.

It sounds like you were introduced during the sole selling rights period.

But assuming you've now bought the property (or at least exchanged contracts), it's not your problem. If the seller wasn't aware, they may have got a nasty shock when they received the bill on completion.

(As the EA was a partner of the Auction co, I doubt they would mislead the Auction co about when you were introduced to the property.)


Edit to add...

But the good thing about doing what you did is that the seller only has to pay the Action co if the sale exchanges/completes.

e.g. If your mortgage application failed, no fees would be payable by anyone.

Mfw2016

I am only affected as its my buyer who was selling their house under these rules, so its their buyer who would be affected. Nothing to do with me. I only hate it as we have to wait for the auction to end before we could proceed.

eddddy

Mfw2016 wrote: »

I am only affected as its my buyer who was selling their house under these rules, so its their buyer who would be affected. Nothing to do with me. I only hate it as we have to wait for the auction to end before we could proceed.

OK - so your previous post was wrong - a typo perhaps?

Mfw2016 wrote: »

My seller used it when selling their house and it caused issues.

But anyway... it all highlights the problems with this type of Auction.

Mfw2016

Sorry - was a typo on my first post - meant to say buyer.

mikeopvc

I just got back home from my meeting with the mortgage broker at the estate agents office, he said he can't see a problem with it going through on time. He said getting the mortgage would be straight forward based on our joint income, albeit very small. He proposed a deal with BM Solutions and said after 6 months I could get an additional loan off them along side the BTL mortgage based on the equity in the property, this would allow me to proceed to my next purchase without having to sell.

mikeopvc

Also after my meeting with the in house broker I spoke with the estate agents in the office, they said the auction department had been on the phone while I was in the meeting and were trying to get hold of me (my mobile was turned off in the meeting) to say my offer had been accepted by the vendor, I told them about my concerns with regard to losing the £6k and they also said I'd have no problem completing within the time frame, paying the £6k would enable them to take the property off the market and secure the deal, then it's just a case of the lender and solicitor doing their thing on time, they said the searches have already been done by the auction co so that saves a lot of time. One of them even said that I needn't worry too much about the 8 weeks timescale and as long as it wasn't down to myself dragging my feet and not doing my bit then it ought to be a bit flexible as at the end of the day they want to sell the property. I said ok can I have that in writing then? He laughed and said just speak to the auction co and it'll all be fine.

mikeopvc

The auction co have emailed the property details to me with a load of documents to view:

BUYER INFORMATION PACK ADVISORY NOTICE
Last Modified: Monday 27th June 2016
Status: Document Available
VIEW DOCUMENT

BASIC INFORMATION FORM
Last Modified: Wednesday 13th July 2016
Status: Document Available
VIEW DOCUMENT

ENERGY PERFORMANCE CERTIFICATE (EPC)
Last Modified: Tuesday 12th July 2016
Status: Document Available
VIEW DOCUMENT

LOCAL AUTHORITY SEARCHES
Last Modified: Monday 18th July 2016
Status: Document Available
VIEW DOCUMENT

OFFICIAL WATER & DRAINAGE
Last Modified: Tuesday 12th July 2016
Status: Document Available
VIEW DOCUMENT

OTHER AUCTION PACK DOCUMENT
Last Modified: Thursday 7th July 2016
Status: Document Available
VIEW DOCUMENT

TITLE PLAN
Last Modified: Thursday 7th July 2016
Status: Document Available
VIEW DOCUMENT

TITLE REGISTER
Last Modified: Thursday 7th July 2016
Status: Document Available
VIEW DOCUMENT

EXTRA DOCUMENTATION
SAMPLE RESERVATION AGREEMENT
Last Modified: Monday 27th June 2016
Status: Document Available
VIEW DOCUMENT

TERMS & CONDITIONS
Last Modified: March 2016
Status: Document Available
VIEW DOCUMENT

Will having these available to me now help in speeding up the process?