Private sale

firstworldproblems

Good morning,

I have a question.
There is a house I am interested in that was up for auction, the vendor unfortunately passed away and the daughter initially took the house off the market but have now accepted my offer through the auction company although I'd assume the daughter hasn't signed a contract with the auction company herself. If I was to approach her privately could I get away with buying privately and not through the auction  company, without getting either party into trouble?

user1977

I expect the executors would step into the shoes of the deceased in relation to the auction contract. Up to the seller to sort out anyway, you don't know what they've signed up to.

gwynlas

Houses are quite often sold prior to auction having been seen advertised you could check the auction house website for terms and conditions. It is likely that you will both need to pay them something for the introduction which is only fair, though anyone knowing her and the circumstances could have made her an offer. What you do need to know is whether the deceased estate is subject to probate and if so how long this is likely to take.

housebuyer143

If they have just died they probably need to apply for probate which means a potentially long long wait before you can purchase the house.

firstworldproblems

Thank you for your responses.
Has anyone delt with a probate recently and how long does it usual take?

eddddy

firstworldproblems said:

...but have now accepted my offer through the auction company...

When you make an offer through an auction company, typically you are accepting their "buyer's terms and conditions" (even if the offer is before or after the actual/planned auction).

That could mean that you become liable for a buyer's fee.



What type of auction / auction company is it?

Do they talk about it being a 'Conditional Auction' or the 'Modern Method of Auction'? 

If so, potentially you could become liable for a very hefty 'reservation fee' when the offer is accepted - even if you don't eventually buy the property.

firstworldproblems

eddddy said:

firstworldproblems said:

...but have now accepted my offer through the auction company...

When you make an offer through an auction company, typically you are accepting their "buyer's terms and conditions" (even if the offer is before or after the actual/planned auction).

That could mean that you become liable for a buyer's fee.



What type of auction / auction company is it?

Do they talk about it being a 'Conditional Auction' or the 'Modern Method of Auction'? 

If so, potentially you could become liable for a very hefty 'reservation fee' when the offer is accepted - even if you don't eventually buy the property.

Thank you, it's a modern method of auction which like you say includes a reservation fee, that's what I was hoping to potentially cut out by offering the daughter more money than originally spoken about and cutting out the middle man but if there is still a chance of having to pay any fee if the auction finds out then it's not worth it.

housebuyer143

firstworldproblems said:

Thank you for your responses.
Has anyone delt with a probate recently and how long does it usual take?

My mum has been waiting 4 months so far and it's a really easy case. Two beneficiaries.. You are allowed to chase it up after 16 weeks 🙄 no one can really say how long it can be.

Be careful of modern method auction. You could find yourself tied in for an unlimited amount of time or risk losing your fee. There isn't always the same time period for the seller to complete as there is you.  In this case you could be trapped waiting and waiting for probate unable to withdraw without financial penalty.

eddddy

firstworldproblems said:

Thank you, it's a modern method of auction which like you say includes a reservation fee, that's what I was hoping to potentially cut out by offering the daughter more money than originally spoken about and cutting out the middle man but if there is still a chance of having to pay any fee if the auction finds out then it's not worth it.

As I mentioned, you previously said...

firstworldproblems said:

 ...but have now accepted my offer through the auction company...

Which might mean you already owe the reservation fee, as of now.

i.e. You have successfully reserved the property, so the reservation fee is due immediately.

The fee is for reserving the property - not for buying the property.




But let's assume you can negotiate / argue your way out of paying the reservation fee - given the circumstances.  Then the situation is very likely to be this:

• You were introduced to the property by the auctioneer during the auctioneer's sole selling rights contract period

• So if the seller later sells the property to you, the seller becomes liable to pay the auctioneer's reservation fee

• So that would apply if the executor sells the property to you

But if the executor transfers the property to the daughter's ownership, and then the daughter sells the property to you, then no fee should be payable to the auctioneer.

mi-key

Some probates can go through quickly, but even simple ones are taking 9 -12 months for most at the moment. Did the auction say if probate had been granted? If it has, then no problem as you can move in as soon as its yours, if not then you will have to wait until it's granted as it doesn't actually belong to the daughter until this is done. 

hazyjo

If it's modern method and they've accepted your offer, I'll be EXTREMELY surprised if you can avoid paying the fee - usually several thousand.