Auction property nightmare

user1977

Geoff9999 said:

the auction was through pattinsons and we have paid their £6000 fee and £2000 deposit.
Our solicitor is generally rubbish but did say that the auction legal pack said that there was a tenant in situ but it hasn’t (which we never thought it had) but could that technicality be a reason to say it wasn’t accurate and get our deposit back?

Maybe find a less rubbish solicitor to advise you, if £8000 is at stake. Did you get any legal advice before you handed over your money?

theartfullodger

What in the paperwork / web guidance you were provided with prior to your bid did NOT outline that what has happened might, please??

Tricky, sorry. (I've bought at auction - but understood I had to complete purchase rather quickly. )

Good luck

Geoff9999

user1977 said:

Geoff9999 said:

the auction was through pattinsons and we have paid their £6000 fee and £2000 deposit.
Our solicitor is generally rubbish but did say that the auction legal pack said that there was a tenant in situ but it hasn’t (which we never thought it had) but could that technicality be a reason to say it wasn’t accurate and get our deposit back?

Maybe find a less rubbish solicitor to advise you, if £8000 is at stake. Did you get any legal advice before you handed over your money?

The auction was brought forward and was a very last minute thing so didn’t get legal advice beforehand no

eddddy

The Auctioneer you mention has 2 different types of auctions:

1. Conditional
2. Unconditional

In simple terms, the situation is probably as follows:

• If you bought through a conditional auction - you can probably back out, but you're likely to lose the fees you've paid

• If you bought through an unconditional auction - you probably cannot legally back out. If you do, you will be in breach of contract. You would lose the fees you've paid so far, plus the seller might sue you for further losses.

FWIW, here are some terms taken from their website (with some interesting use of apostrophes)...

Conditional Lot’s

Upon the fall of the hammer, the buyer shall...

Exchange contracts within 28 days
Complete the purchase within an additional 28 days of the exchange
A non-refundable £3,600 Deposit
Pay an administration fee of £780 (inc VAT)

​Unconditional

Upon the fall of the hammer, the buyer shall...

Exchange contracts. (Special conditions may apply)
The sale must complete within 28 days
A 10% deposit must be paid to a minimum of £3,600
Pay an administration fee of £780 (inc VAT)
 

Auction Lots - a Reservation Fee* is applicable

Conditional Lot’s Reservation Fee*

Upon the fall of the hammer, the buyer shall...

Pay a non-refundable Reservation Fee of up to 5% plus VAT (to a minimum of £5,000 plus VAT)
Exchange contracts within 28 days and pay a 5% non refundable deposit (unless the Legal Pack indicates differently)
Complete the purchase within an additional 28 days of the exchange

 

Unconditional Lots Reservation Fee*

Upon the fall of the hammer, the buyer shall...

Pay a 5% non-refundable Deposit and a Reservation Fee of up to 5% plus VAT (to a minimum of £5,000 plus VAT)
Be legally bound to buy the property/lot and the vendor is legally bound to sell
The sale must complete within 28 days

Link: https://www.pattinson.co.uk/auction/auction-guide/buying-through-auction

Geoff9999

I’ve gone ahead with the property as just receiving so much pressure to do so and was stung with an extra load of fees at the end including a notice of enforcement one for £1800 which my solicitor had never even told me had been served. The whole thing is just a nightmare from start to finish

eddddy

Geoff9999 said:

.... and was stung with an extra load of fees at the end including a notice of enforcement one for £1800 which my solicitor had never even told me had been served.

Is that a fee from the freeholder?

If so, it sounds like the previous owner was breaching the lease - so the freeholder was taking enforcement action, which could include going to court to get the lease forfeited (i.e. The freeholder repossess the flat.)

It might be worth finding out what the breach was, whether it has been remedied, and whether any court case for forfeiture (repossession)  is still going ahead.

Even though ownership of the flat has changed, the lease can still be forfeited if a breach of lease isn't put right.


Examples of breaches of lease might include:

• Not paying service charges
• Not paying ground rent
• Making alterations to the flat
• Sub-letting the flat
• Keeping a pet

So for example, if there are unpaid service charges or ground rent, you'd probably need to pay them. If the flat has been altered in breach of the lease, you'll have to undo the alterations.



Hopefully, it's all sorted - but it might be best to check, given the potential outcome, if it's not.