Auction Purchase Compliance question

Marcus3344

So we purchased a property through an auction site in July 2025.

The sale contract was extremely vague and obviously we were liable for extremely high additional costs.

Which we did factor into our decision, however……

After extensive refurbishment, we are looking to sell the property through the same auction house.

HOWEVER, since our purchase they have employed a new Compliance Manager.
We submitted our sales contract to the auction house, mirroring the contract which the house advertised the property to us.

We are now being advised that the contract does not pass their compliance check due to the vagueness of the contract re additional costs.

Has the industry had a change re legislation since July 2025 ?

Is there any action we can take in regards redress, as their change of stance has a large financial impact due to their change of process?

caprikid1

You bought a property on the terms you were happy with.

I am not sure why you think you have redress as the terms have changed ?

If you don't think you will achieve the money you want through the same auction house why are you using them.

Sorry but this feels all a bit odd, why do up a property and put it back through an auction unless there are undisclosed issues you now have to disclose ?

user1977

No, it isn't obvious to us what you mean by "extremely high additional costs", or why they would be vague. Auction contracts are generally one-sided and non-negotiable, yes, but not "vague".

What are you talking about?

And presumably you employed a solicitor at least at the time of your purchase, who advised you on the terms then?

lfc321

What is the problem with removing the vagueness by specifying the additional costs clearly in the contract you use to sell?

eddddy

You probably need to provide a lot of further info, to get useful feedback

…obviously we were liable for extremely high additional costs.

• What were those costs? (Was it a 'Modern Method of Auction' with a large reservation cost?)

• What vagueness was in your purchase contract that you want repeated in your sale contract?

• Was there a legitimate reason for the vagueness in the purchase contract? (For example, was the property being sold by executors or similar, who didn't know the property?)

• Why are you selling the property through an auction? Is there a problem with it? Is there something about the property you wand to hide?

Also, it sounds like you bought the property with the intention of refurbishing it and reselling it. (i.e. it is a business activity). And is it likely that you will sell to somebody who wants to live in the property (i.e. a consumer)?

If so, a business to consumer sale will probably be covered by consumer protection legislation. So for example, you will need to declare all material information - whether it's good or bad - even if the buyer doesn't ask.

daveyjp

The company may have been sailing close to the wind as regards compliance, an audit revealed their compliance was below standard and needed improvement. New manager installed to achieve that aim.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81897049#Comment_81897049

May not even have been an audit, could just be a change in staff and the new manager thinks things should be a brighter shade of white

MEM62

Is there any action we can take in regards redress, as their change of stance has a large financial impact due to their change of process?

As you have the choice to use another auction firm, it has had no impact whatsoever. Even if that were not the case, I am sure that you were not given any assurance that any future use of their services would be under the same T's and C's. Terms change and you are not entitled to any compensation when a business feels the need to revise them.

saajan_12

https://forums.moneysavingexpert.com/discussion/6656634/auction-purchase-compliance-question

We submitted our sales contract to the auction house, mirroring the contract which the house advertised the property to us.

..

Is there any action we can take in regards redress, as their change of stance has a large financial impact due to their change of process?

Losses: You don't have to use the same contract and auction house, you can get a new contract drafted that fits their requirements / template, or go to another auction house, or selll through an agent. As such, you have no losses since the above would still allow you to sell.

We are now being advised that the contract does not pass their compliance check due to the vagueness of the contract re additional costs.

Has the industry had a change re legislation since July 2025 ?

Liability: Lets assume there were no changes in legislature, they just felt like changing on a whim. However that's their perogative, they (likely) didn't promise to stick to the same T&Cs or even continue operating forever. They can't breach a promise they never made

So no liability and no losses means no claim here.

ExEstateAgent

Any contract should state clearly the details around any charges/fees/penalties.

What is it that is 'vague' about your contract?