Purple Bricks Auction - Buyers Premium

eddddy

SanityIsAMyth said:

The buyer is refusing to pay the Buyers Premium as the sale wasn’t through PB so PB are saying that I am liable for it. 

Yes - because unfortunately that's what the contract you agreed to says.

What I was suggesting is essentially that instead of paying now, you "make excuses" to try to delay paying. But you're saying that won't solve your money problems.

I guess some people might suggest a nuclear option like trying to delay paying the PB fee until after completion, and as soon as you complete the sale, pay your tuition fees immediately. Then try to pay PB with what you have left. If you don't have enough money left to pay PB, they might sue you. So you'd explain to the court that you have no money and hope that the court agree to a suitable payment plan.

But there would be question marks over the morality, and perhaps the legality, of a plan like that.

SanityIsAMyth

eddddy said:

SanityIsAMyth said:

The buyer is refusing to pay the Buyers Premium as the sale wasn’t through PB so PB are saying that I am liable for it. 

Yes - because unfortunately that's what the contract you agreed to says.

What I was suggesting is essentially that instead of paying now, you "make excuses" to try to delay paying. But you're saying that won't solve your money problems.

I guess some people might suggest a nuclear option like trying to delay paying the PB fee until after completion, and as soon as you complete the sale, pay your tuition fees immediately. Then try to pay PB with what you have left. If you don't have enough money left to pay PB, they might sue you. So you'd explain to the court that you have no money and hope that the court agree to a suitable payment plan.

But there would be question marks over the morality, and perhaps the legality, of a plan like that.

Thanks I’ll see where I get negotiating with them (probably not very far)

AdrianC

When did you sign up to PB's sole selling rights, and how long are they in place for?

Sole SELLING rights mean you promise them their fee when you sell. Doesn't matter how the buyer found out the property was for sale. (Did they see the PB sign outside, or PB's auction listing?) Doesn't matter whether the buyer pays or you pay.

If it helps any, think of it as selling for £20k below asking, but the buyer paid...

davidmcn

Are you actually any worse off? Surely any buyer being asked to pay a buyer's premium would be taking account of that in the price they offer, not happily paying it on top of the market value?

eddddy

davidmcn said:

Are you actually any worse off? Surely any buyer being asked to pay a buyer's premium would be taking account of that in the price they offer, not happily paying it on top of the market value?

Yes - based on the snippet of the contract that the OP posted, the OP could be much worse off.

The buyer's fee is payable when an offer is accepted - it's not dependent on a sale actually happening. So if the OP accepts an offer, then the buyer decides to walk away, the OP is £6k worse off.

And TBH, it sounds like the offer was accepted on the basis of a note through the door, perhaps with no checks on the proceedabilty of the buyer. The buyer might be a 'flaky dreamer'.

With these auctions, the normal protection against 'flaky deamers' is that they have to risk £6k of their own money up front.

 

steampowered

Have you exchanged contracts yet?

Your contract with the auctioneer says that you are liable to pay the fee if you accept an offer "in the period during which we have sole selling rights". 

If you haven't exchanged contracts, you could simply wait until their sole selling rights have expired.

chanz4

SanityIsAMyth said:

eddddy said:

Are you saying that you want to defer payment, until the purchaser completes - or are you saying you'll be unable to pay, even when the purchaser completes?

If you're prepared to pay on completion, you might be able to get away with saying something like... "The private buyer has made an offer, but I'm not accepting that offer until the private buyer exchanges contracts" - then delay paying until completion.

They're unlikely to take legal action against you in the period between now and exchange of contracts. Although, if the sale falls through, they might decide it's worth trying to sue you for the £6k.

Hi Eddddy,
I will be able to pay as I will have the equity in the bank, but it’s all ear marked for tuition fees. I won’t be able to do my final year so my whole degree would be useless. The buyer is refusing to pay the Buyers Premium as the sale wasn’t through PB so PB are saying that I am liable for it. 

cant you get a job you will have 3 years to save it

SanityIsAMyth

eddddy said:

davidmcn said:

Are you actually any worse off? Surely any buyer being asked to pay a buyer's premium would be taking account of that in the price they offer, not happily paying it on top of the market value?

Yes - based on the snippet of the contract that the OP posted, the OP could be much worse off.

The buyer's fee is payable when an offer is accepted - it's not dependent on a sale actually happening. So if the OP accepts an offer, then the buyer decides to walk away, the OP is £6k worse off.

And TBH, it sounds like the offer was accepted on the basis of a note through the door, perhaps with no checks on the proceedabilty of the buyer. The buyer might be a 'flaky dreamer'.

With these auctions, the normal protection against 'flaky deamers' is that they have to risk £6k of their own money up front.

 

I’m keeping everything crossed that he’s not flaky. He’s getting a decent house for not very much money and he’s spent money (albeit not very much) on mortgage valuations etc. If he walks away I’m totally screwed. 

SanityIsAMyth

steampowered said:

Have you exchanged contracts yet?

Your contract with the auctioneer says that you are liable to pay the fee if you accept an offer "in the period during which we have sole selling rights". 

If you haven't exchanged contracts, you could simply wait until their sole selling rights have expired.

Not yet but I don’t have time for the selling rights to expire. It’s 90 days from the end of the auction

AdrianC

SanityIsAMyth said:

steampowered said:

Have you exchanged contracts yet?

Your contract with the auctioneer says that you are liable to pay the fee if you accept an offer "in the period during which we have sole selling rights". 

If you haven't exchanged contracts, you could simply wait until their sole selling rights have expired.

Not yet but I don’t have time for the selling rights to expire. It’s 90 days from the end of the auction

Even if it did expire, they were still introduced during the period.