I recently purchased a property at auction and am having problems regarding the special conditions. I am due to complete tomorrow but due to this outstanding issue, and am not sure what I should do.
My winning bid on Auction day was £30,000 and I paid a £600 buyers auction fee to the auction house.
The special conditions are:
“THAT A DEPOSIT OF £5,000 AND THAT THE AUCTION FEES ARE REIMBURSED UPON COMPLETION”
My Solicitors sent me the completion statement on Monday which included an Extra £2,160 of Sellers Auctioneers fees payable by me.
It seems that the seller intended that the buyer reimburse the seller their auction fees, however I have read this as the seller would reimburse my fees.
So far my Solicitors have not been very helpful, however as completion is tomorrow – I am unable to switch.
I don’t not want to complete as I believe there are a raft of problems that come with that, such as losing my deposit and being made liable for any shortfall if the seller tries to resell the property and subsequently gets a lower amount.
However going forward I want to know what my best option is, shall I tell me solicitors to pay the full amount minus the £2,160 and go to small claims court after for the £600 is the seller does not reimburse me? Since I would have not paid all the money could this still be taken as not completing?
In which case should I pay the full amount and go to court after to reclaim the money?
On the day of the auction when we ‘exchanged contracts’ I paid £3,000 deposit. The next day someone contacted me from the auction house and said that,
“we will be needing an extra £2000 deposit from you...
If you have a look in the special conditions you will see attached to the memorandum of sale that the vendor specifically requested a £5000 deposit plus our £600 buyers fee which will be refunded to you upon completion.
You have so far deposited £3600. Could we request an extra £2000 deposit from you.”
I paid the additional £2,000 to them, but it’s apparent that others have taken the special conditions to mean what I took them as too.
I read the Special conditions which was only the 1 sentence as above and took it as they would be reimbursing my fees. On the day at the auction I asked how much the buyers auctions fees were and was told £600. I did not have a solicitors look through before auction.
Regardless, I was under the impression you can't or it's very difficult to make any enquiries with the Vendor.
Thank you for your reply.
As the wording in the special conditions are vague and I did not prepare the contract would I have a good chance in court or am I in the wrong?
Yes thank you,
Do you have any pointers or expert tips for when I going to small claims court?
Also would you mind pointing me in the direction of how to make the claim?