Purchased property at auction - want to pull out

stevenbeck1

Hi,

I purchased a property via auction mid-week. I read the legal and accompanied addendum and all seemed fine. However, after I paid my deposit (cheque) and signed paperwork I was approached by someone at the auction who told me the current owner was not legally entitled to sell the property as it was part of a disputed inheritance. They were very intimidating and wanted me to back out of the purchase.

There was no mention of the claims this person was telling me in the legals. Next day I immediately asked my solicitor to raise enquiry with the sellers solicitor. The sellers solicitors told my solicitor there was no dispute regarding inheritance and that there client had owned the property since 2014. There are no notices on the title register or with the land reg.

My solicitor thinks it might be a family dispute at the buyers end.

I am really nervous about continuing with the purchase.

I called the auction company to back out and they told me if I back out I will be in breach of contract.

I am now thinking of cancelling my cheque and taking some time out to investigate further.

Some urgent advice would be appreciated.

Regards

Ste

G_M

You can back out and lose the (10%?) you paid.

When the hammer falls there is a legally binding contract.

Auctions are not for amateurs.

Did your solicitor review the legal pack before the auction?

theartfullodger

Aye, you can pull out, easy:

It will cost you: Probably your deposit plus....

Take legal advice from a solicitor expert in auctions and property (ie not any old solicitor)

stevenbeck1

I paid £30,000 deposit.

The cheque has not cashed yet. So if I cancel is the contract still valid?

I thought it was clear funds with auctions.

G_M

stevenbeck1 wrote: »

I paid £30,000 deposit.

The cheque has not cashed yet. So if I cancel is the contract still valid?

I thought it was clear funds with auctions.

Of course the contract is still valid! The contract is formed by
1) you offering to buy (bidding) and
2) the auctioneer accepting your offer (fall of the hammer)

By cancelling the cheque you'll immediately be in breach of contract.

Not only will you still owe the 10%, but you can be sued for any other costs resulting from your breach, including all legal costs involved in suing you........

Davesnave

stevenbeck1 wrote: »

Some urgent advice would be appreciated.

Do not cancel your cheque or breach any part of the contract.

You need follow-though where legal matters are concerned, not react emotionally. Regardless of any other matters, there will be strong penalties if you don't.

Contract law is there to protect both parties and it is not to be taken lightly. Being 'really nervous' isn't a reason that will release you from your obligations.

stevenbeck1

Davesnave wrote: »

Do not cancel your cheque or breach any part of the contract.

You need follow-though where legal matters are concerned, not react emotionally. Regardless of any other matters, there will be strong penalties if you don't.

Contract law is there to protect both parties and it is not to be taken lightly. Being 'really nervous' isn't a reason that will release you from your obligations.

I get where you are coming from. But I will happily reinstate the payment if everything is okay. I just need some time. I don't want the cheque to clear and then cannot get my money back because it goes into a lengthy dispute.

PasturesNew

As you bought at auction, I'd suggest you go ahead and complete with the purchase and then take stock of where you're at and have any discussions to see if there's anything you wish you'd known about sooner.....

In short: you can't pull out without taking a severe financial hit.

Auctions are straight forward. Hammer came down, YOU are buying it.

Yes, technically, you can pull out - but you'll lose at LEAST the value of your deposit. You will continue to have a linked financial responsibility to the property and when it's resold, if it's sold for less than you were going to pay, they could then come after you for that AND the auctioneer's fees....

Just buy the d4mned thing, then you've got the time to discover if there's anything to "worry" about or not.

It could've just been an auction loser, puffing himself up....

Buy it. Complete. Do it.

stevenbeck1

PasturesNew wrote: »

As you bought at auction, I'd suggest you go ahead and complete with the purchase and then take stock of where you're at and have any discussions to see if there's anything you wish you'd known about sooner.....

In short: you can't pull out without taking a severe financial hit.

Auctions are straight forward. Hammer came down, YOU are buying it.

Yes, technically, you can pull out - but you'll lose at LEAST the value of your deposit. You will continue to have a linked financial responsibility to the property and when it's resold, if it's sold for less than you were going to pay, they could then come after you for that AND the auctioneer's fees....

Just buy the d4mned thing, then you've got the time to discover if there's anything to "worry" about or not.

It could've just been an auction loser, puffing himself up....

Buy it. Complete. Do it.

Yes, but £30k is better than losing £300k.

Or would I face further costs? Could the seller take me to the cleaners for other costs?

G_M

stevenbeck1 wrote: »

Yes, but £30k is better than losing £300k.

Or would I face further costs? Could the seller take me to the cleaners for other costs?

Yes.

Some of these have already been explained to you.

stevenbeck1

G_M wrote: »

Yes.

Some of these have already been explained to you.

Okay, lets assume my deposit clears. I then raise enquiries into this so called disputed inheritance claim and something comes to light. Can I then get my money back and claim for mis-representation?

Sorry to keep asking questions and giving scenarios - but I am losing sleep and need to know what my options are.