Property auction problem....help !!

Edward70

Long story but stick with me please. I rang about an auction property that was ongoing and offered £110k to stop the auction an sell to me early. The lady said she couldn't so that verbally and emailed me a form to sign to make the offer. The vendor rejected the offer and I said I couldn't offer more so was 'that that' could I just leave it and she said yes my offer was rejected so that was that. A couple of weeks later she rang me again and said if I wanted to offer £110k again the vendor would accept that now and end the auction early . I said let me think and she messaged the next day asking if I wanted to proceed with an offer. I messaged back saying since my previous offer was rejected I was no longer in a financial position to re offer £110k and she messaged ok thankyou. About a week late I received an email from the auction house boss saying I was the winning bidder and if I didn't complete he'd support the vendor in taking legal action against me. Initially I panicked and had to beg a family member for help as at this time I didn't realise I still had the messages about the offer etc. He sent me some emails containing legal pack and how to pay a deposit etc. I was having a hard time getting in touch with my solicitor to look at all this because of the quarantine lock down and the following morning I received another email saying if I didn't exchange and pay the deposit he'd be taking legal action against me. With all this covid crisis that was an impossible deadline and the auction chap loves his threat of legal action ! My question is am I stuck ? Do the messages with the auction lady show that she considered me not to have a live bid ? Can he sue me ? How much if he can ? Have I been mislead legally by a representative of the firm ? I'm getting in a bit of a stress here. I thought I'd offered in good faith, been rejected and walked away. 

davidmcn

We don't know without seeing the correspondence you've already had, though it sounds odd that they're chasing you to "exchange" if they're also arguing that you're already in a contract (and without having paid a deposit). If your solicitor isn't working then find another one.

Doozergirl

what does this form say?  

They cannot possibly bind you to the purchase so do not pay a penny or even consider exchanging contracts because that is when the deed is done.  And the deed is not done! 

They might try and claim a fee for their service, but again, I don't think you're bound to that fee until you've signed and paid.  

It sounds like modern method of auction.  

greatcrested

Is this the so-called 'modern method auction' - as opposed to an auction in a room and everyone bidding till the gavel falls?

If so, did you receive, read, sign, and return the terms of the action? What exactly were the terms?

Edward70

It is the modern method of auction. He wants £6000 and ten percent of the auction end price. I actually deleted all the initial emails showing the online bid form ( I now realise fully that was what it was ) as I'd been told my offer was rejected and torn up as it were so I deleted the messages and forgot all about the house. The correspondence I have is the lady from the auction house asking again if I'd like to offer 110 again and me saying thanks but no.

Edward70

To be honest and it's embarrassing, when I made the verbal offer she said she'd send an email with a form to sign which I did quickly, excited at that time to see if my offer would be accepted. I didn't thoroughly read it and have since deleted it but I did ask her afterwards if, following the offer being rejected , did I need to officially do anything to which she said no.

Doozergirl

What company? 

Did you delete your deleted items box as well? What about your sent items?   

Do not send any money at all.  You're going to land yourself deeper in it by complying. 

I am quite sure that there is a form to be signed with that deposit, after being the winning bid and the is what binds you to their fee.  

You are NEVER bound to purchase a property without explicitly exchanging contracts.  There's a myth that an auction is binding upon the fall of the gavel - it isn't.  It's when you sign the sale contract  in the minutes afterwards and pay the 10% deposit. 

You're going to have to speak to a solicitor at least once, just to put your mind at rest.  

greatcrested

So you signed up to the auction terms, which you had not fully read.

You placed a bid, it was rejected, and you deleted the auction documentation - having still not fully read it.

You placed a second bid which has been accepted.

It sounds as if you may be bound by the auction terms (which you have no record of and never fully understood).

Does that sum it up?

Note: aren't these modern method auctions just the bees knees? To other buyers and sellers - don't go near them.

Edward70

They're called Pattinson 

Edward70

Not exactly.  Neither of my bids were accepted which is why she messaged me again right near the end of the auction asking me if I wanted to offer £110k again. It's only her boss who is claiming that my rejected offer is still on file as a live bid that is the issue. She told me that as my offers had both been rejected that was an end to the matter. When she messaged to ask if I wanted to offer 110 again that confirmed to me that she too considered my previous rejected bids to be torn up as it were. Why else would she be chasing me to offer that same figure again ?

Doozergirl

No T&Cs on their website. 

You need to find what you signed.  Or get them to give you a copy...