Buying an Auction Property

troyalit

I decided to purchase a property through auction as wanted less hassle, I read through the legal pack, I visited the property, I had my mortgage offer, I had the winning bid and we exchanged contracts so deposit and auctioneer fees were paid.
The contract allowed for 56 days before completion which was due on 22/9, however about 2-3 weeks ago I received notification that the SELLER wanted to pull out... yes the Seller.
The auctioneers notified me that they could no longer speak to me as they were acting on behalf of the client.
All the necessary documents have been signed and I had all the money deposited into the solicitors ready for completion. At the end of the completion day, completion did not take place.
I am now following this through a litigation solicitor but I think the seller is abroad, what are my changes of either securing the property or getting my money and any interest back on the Property?
Please advise if anyone has had any experience of this situation.

davidmcn

Your chances seem very poor until you've found the seller. How much money have you actually lost anyway?

HampshireH

Sorry this isn't a helpful question but have they given any indication as to why?

konark

Once contracts have been exchanged the contract is made. Imagine what grief you'd have got if you had failed to come up with the money in the 56 days! You'd have been liable for all sorts of costs. You have to decide if you just want your money back, which you will certainly get and maybe any losses arising too. Whether you can 'force' the sale is another matter; technically yes but it may be a difficult and expensive mission if the seller really doesn't want to sell.

As for the reason, maybe the hammer price was less than the seller expected?.

G_M

I believe you can force the sale to Complete, but it will involve court action. I imagine any justified legal and court costs could be deducted from the sale price.

However you need specialist legal advice, so see what your soliitor says.

As for the seller being abroad, I imagine court papers could be sent to the property address, and asssumed to be 'served'. If the seller fails to turn up to a court hearing, or enter a defence, that will make your life easier.

davidmcn

G_M wrote: »

I believe you can force the sale to Complete, but it will involve court action. I imagine any justified legal and court costs could be deducted from the sale price.

However you need specialist legal advice, so see what your soliitor says.

As for the seller being abroad, I imagine court papers could be sent to the property address, and asssumed to be 'served'. If the seller fails to turn up to a court hearing, or enter a defence, that will make your life easier.

The court isn't going to make the transaction complete, though. At best the OP would be able to claim their losses (as provided for in the auction contract) - which leaves you with the usual problems of trying to extract money from someone you can't find.

Nub

davidmcn wrote: »

The court isn't going to make the transaction complete, though. At best the OP would be able to claim their losses (as provided for in the auction contract) - which leaves you with the usual problems of trying to extract money from someone you can't find.

Sorry, but if you've exchanged contracts the court will absolutely force completion if it gets that far.
You'll also be able to claim all reasonable costs, can someone please help me post a link to this thread? showthread.php?t=1806123

This thread is a great example of the strong position you're in now. The OP settled out of court for a significant sum as they felt the house was tainted, but if you skip to the end there are a couple more links to other similar situations with slightly less convoluted resolutions, where indeed completion was forced.

Car1980

Yes, the court can issue an injunction (an injunction can also be an order to make a party act)

agrinnall

Nub wrote: »

can someone please help me post a link to this thread? showthread.php?t=1806123

https://forums.moneysavingexpert.com/discussion/1806123

I've only skimmed the first page, but note lincroft's comments in post #14.

eddddy

davidmcn wrote: »

The court isn't going to make the transaction complete, though. At best the OP would be able to claim their losses (as provided for in the auction contract) - which leaves you with the usual problems of trying to extract money from someone you can't find.

I thought that the buyer could apply to a court for 'Specific Performance' of the contract.

And if the seller can't be traced (or still won't compete) the court can order the execution of the transfer deed.

Or are you saying that there is something different about a standard auction contract, which makes it different from a standard sale contract?

davidmcn

eddddy wrote: »

I thought that the buyer could apply to a court for 'Specific Performance' of the contract.

And if the seller can't be traced (or still won't compete) the court can order the execution of the transfer deed.

Or are you saying that there is something different about a standard auction contract, which makes it different from a standard sale contract?

Perhaps - I haven't come across it in situations where the vendor has disappeared. There may also be reasons why the sale can't be completed (or at least not on a basis which the buyer would want) rather than the vendor simply refusing to proceed.