Forced to pay arrears on flat at auction is there anything I can do?

Smithie_2

I recently learnt a valuable lesson when I bought a flat at auction. I was told that I had 14 days to complete that I had to pay £9600k in arrears on the flat and if I didn't pay the Landord could forfeit the lease. I couldn't pull out after winning the auction as they could sue me so my hands were tied. I was forced to pay someone else's debt even though they had died the debt was 3 years old and the estate should have paid for it. Is there anything I can do to reclaim that money after completion? 

RFW

Smithie_2 said:

I recently learnt a valuable lesson when I bought a flat at auction. I was told that I had 14 days to complete that I had to pay £9600k in arrears on the flat and if I didn't pay the Landord could forfeit the lease. I couldn't pull out after winning the auction as they could sue me so my hands were tied. I was forced to pay someone else's debt even though they had died the debt was 3 years old and the estate should have paid for it. Is there anything I can do to reclaim that money after completion? 

I'm in no way an expert but isn't that something the solicitor should find out on your behalf, assuming you used one?

tacpot12

Your should have had legal advice about this at the time you were looking to purchase. If the amount wasn't declared as part of the legal pack and you only found out about it after the hammer came down, then you can probably sue either the vendor or the auction house, depending on whether the vendor (the executor) told the auction house or not. The executor should either be able too get money back from the beneficiaries, or will have to pay it themselves. 

You need professional legal advice now. If you have legal expenses insurance as part of your home insurance, talk to the legal helpline provided by your insurer. If you have the right cover, and a good case, they will do the legal work to sue the vendor/auction house. 

soolin

As above i with property auctions it all depends on what’s in the legal pack. 

cx6

Anything material like this should be disclosed prior to the bidding. If it was not then you have a valid complaint.

soolin

cx6 said:

Anything material like this should be disclosed prior to the bidding. If it was not then you have a valid complaint.

It would be a very dodgy property auctioneer who didn't have legal packs available- if only to protect themselves.If an auction house had failed to do so then I would suggest that the OP might be looking at this being the very tip of the iceberg .

Smithie_2

Hello we have just been to the flat now and the Landlord's request for rent was addressed to the late Mr......... which is ridiculous they have been requesting and accruing rent and service charges for the past 3 years for someone they knew was dead. This person clearly didn't have any family as his car is still in the parking space belonging to the flat. Our solicitor gave us no choice the pre-sales pack said that we were liable for any arrears did not give the amount. Our solicitor said we had to pay it regardless otherwise we would get late fees on top. I just want to know if it is possible to do anything to get the money back? 

MalMonroe

As a recent fan of 'Homes under the Hammer' I am now aware of the importance of the Legal Pack. If you don't request one or don't read it before a property auction, you could end up in a bit of a mess.

I recently watched an episode of HUTH where someone who had bought a derelict house ended up having to pay an additional £6k because he hadn't read the legal pack prior to purchase. Fortunately he was able to recoup that payment after he'd renovated and sold the house but it was a big shock initially. 

As others have said, discuss this with your solicitor. If there wasn't anything in the Legal Pack, you may well have a case.

soolin

MalMonroe said:

As a recent fan of 'Homes under the Hammer' I am now aware of the importance of the Legal Pack. If you don't request one or don't read it before a property auction, you could end up in a bit of a mess.

I recently watched an episode of HUTH where someone who had bought a derelict house ended up having to pay an additional £6k because he hadn't read the legal pack prior to purchase. Fortunately he was able to recoup that payment after he'd renovated and sold the house but it was a big shock initially. 

As others have said, discuss this with your solicitor. If there wasn't anything in the Legal Pack, you may well have a case.

OP says solicitor is aware of the clause in the legal pack that says purchaser is liable for any arrears.

OP- I suspect the fact that a legal pack was provided means that you have very little leeway in getting anything back unless your solicitor has any good ideas? I wouldn't expect to see exact figures in a legal pack, but the phrase ' we were liable for any arrear' is perhaps something you should have looked into before going ahead. It might after all have been a lot worse as rent arrears can mount up to huge amounts depending on where the flat is situated.

MarvinDay

Smithie_2 said:

Our solicitor gave us no choice the pre-sales pack said that we were liable for any arrears did not give the amount. Our solicitor said we had to pay it regardless otherwise we would get late fees on top. I just want to know if it is possible to do anything to get the money back? 

As the pre-sale pack stated that you would be liable for any arrears, you did have a couple of options and they were to pull out and not bid on the flat or to ask your solicitor to find out the amount owing before proceeding.

RFW

Smithie_2 said:

Hello we have just been to the flat now and the Landlord's request for rent was addressed to the late Mr......... which is ridiculous they have been requesting and accruing rent and service charges for the past 3 years for someone they knew was dead. This person clearly didn't have any family as his car is still in the parking space belonging to the flat. Our solicitor gave us no choice the pre-sales pack said that we were liable for any arrears did not give the amount. Our solicitor said we had to pay it regardless otherwise we would get late fees on top. I just want to know if it is possible to do anything to get the money back? 

It doesn't look good.
You could try another solicitor but you'll be looking at costs for that. Maybe try some of the legal advice forums or try and find a specialist solicitor. Try and find ones that offer free initial advice. I'm guessing a solicitor specialising in this may end up costing you more than the amount paid.
As you have paid it you're in a much weakened position. I may have tried making an offer rather than paying the full amount but that sounds like it may not have been possible.