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JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11125
Experience:  30 years as a practising solicitor.
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I have won a property in a Scottish auction in Glasgow. The

Resolved Question:

I have won a property in a Scottish auction in Glasgow.
The property is HMO with 5 people.
The licence appears to have expired. Could I use this as ground to cancel winning auction bid
Submitted: 1 year ago.
Category: Scots Law
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
See the property here; the latest HMO licence expired December 2015. If this is not HMO anymore, then property has been incorrectly marketed to me. Thus the transaction should be cancelled; in my opinion.
Is my case legally strong?
I already paid £11,000 in deposit at the auction yesterday. Will I be likely to get this refunded.
Expert:  JGM replied 1 year ago.
The property was advertised as having an HMO licence. Unless the actual contract for sale (called Articles of Roup) excluded liability for this, then you should be able to walk away from this.
Customer: replied 1 year ago.
What about getting my deposit back also.
Expert:  JGM replied 1 year ago.
Yes, as the property advertised isn't what is available.
Customer: replied 1 year ago.
There are 5 tenants in the flat. Is the seller in breach of hmo conditions. Because there are 5 people in there
Expert:  JGM replied 1 year ago.
Yes, I presume you are aware of HMO laws. Five different tenants means that an HMO licence is needed.
Customer: replied 1 year ago.
What is the chance of them having article of roup in there favour. Payment will be coming tonight.
Customer: replied 1 year ago.
Can I also ask that seller compensate me for the auction fee of £1.8k I had paid yesterday too.
Expert:  JGM replied 1 year ago.
I would say unlikely as the advertising is blatantly saying the property is being sold as an HMO. They know or ought to know that the buyer is wanting the property with the HMO licence. Unless the Article of Roup specifically exclude the possibility, or they produce the licence as apart of the legal documents for examination then I think there is a solid case for walking away.
All costs would have to be refunded.
JGM and other Scots Law Specialists are ready to help you
Customer: replied 1 year ago.
The tenants have yet to pay rent for January should oak then too hold on to it because Glasgow council could ask for rent suspension because of no hmo licence
Customer: replied 1 year ago.
They sold that property to me the property is terrible. Today I thought I was going to be financially ruined. I fear that they will try to trick some other unsuspecting buyer.
Customer: replied 1 year ago.
I am thinking of reporting them to Glasgow council. I nearly lost 80k today. I think the real property value is about 30k
Customer: replied 1 year ago.
Report them on their lack of licence and other documents too. Maybe building insurance and electrical and fire regulations
Expert:  JGM replied 1 year ago.
You don't really have a locus to do any of this. I would walk away and leave it up your sleeve to threaten to report them in the event that they try to hold you to the Articles of Rouo.
Customer: replied 1 year ago.
Thanks for your Cautionary advice
Customer: replied 1 year ago.
Did you get your payment
Expert:  JGM replied 1 year ago.
Yes, thank you.
Customer: replied 1 year ago.
Could you send me an invoice I'll try get that reimbursed too.***@******.***
Expert:  JGM replied 1 year ago.
Experts have no way of generating an invoice. I presume the site acknowledges your payment. Any difficulties you should email them.
Customer: replied 1 year ago.
What is your email address and contact details should I decide to hire you for conveyancing
Expert:  JGM replied 1 year ago.
Thank you for offering but it's against the JustAnswer rules for expert solicitors to take on cases privately.
Customer: replied 1 year ago.
I have found this clause 11 in the auctioneers T&C.
Does this mean I cannot break the contract11. No Warranties
The Lot is exposed for sale as it exists, tantum et tale, and not according to any advertisement thereof, nor this catalogue, nor any information of any nature whatsoever that may be communicated to the Purchaser at or before the date of the Auction. No warranty is given as to descriptions, extents, boundaries, advertisements, accommodation, rentals, rateable, value, feuduties, ground annuals or other payment, the allocation thereof, leases, burdens, servitudes, rights of way or wayleaves, whether formally constituted or not, building warrants, building warrant plans, certificates of completion, planning permissions, superior’s consents, planning or any orders, regulations or notices made by or issued by an authority, or any particulars, plans, documents or information given by the Seller or his agents. The Purchaser accepts that he has enquired and satisfied himself on all matters or otherwise he takes all risks. No warranty is given as to whether the Lot is affected by rights and interests of statutory undertakers including rights and interests relating to electricity sub-stations, generators and gas governors and that irrespective of whether such rights and interests are held under lease, title, missives or otherwise nor as to the extent to which the Lot is subject to or has the benefit of any leases and other rights of possession and occupancy or other third party interests. The Purchaser shall accept that vacant possession is given of the whole or any part of the Lot which is sold with vacant possession notwithstanding that there may be furniture, fittings or effects remaining therein and shall not be entitled to require the Seller to arrange for the removal of same, nor object to the taking of same, since the Seller gives no warranty as to the ownership of any moveable items situated within the Lot. The Purchaser is deemed to have satisfied themselves as to any lease agreement in place and accept the terms of any such agreement for the Lot. The Purchaser shall be bound to accept any exclusion or limitation of warranty on the updated or newly created (as the case may be) Title Sheet of the Lot (disclosing the Purchaser as the registered proprietor) in terms of Section 75 of the 2012 Act, and any entry, deed or diligence disclosed thereon, including any charging order under the Buildings (Recovery of Expenses) (Scotland) Act 2014 and any notice of potential liability for costs registered under the Tenements (Scotland) Act 2004 or the Title Conditions (Scotland) Act 2003). The Principal Articles of Roup, Special Conditions of Sale and the title deeds relating to the Lot and all subsidiary documentation will be available prior to the date of the Auction for inspection at the offices of the Auctioneers or within the auction rooms as specified in the Auction Catalogue at any time during normal office hours by prior appointment and the Purchaser whether inspecting the same or not shall be deemed to purchase with full knowledge of the contents thereof and the Purchaser shall raise no objection thereto or requisition thereon whatsoever. In relation to tenanted properties purchasers are expected to satisfy themselves as to any lease agreements or stated rental prices. Rent payable may be less or more than stated in catalogue. Purchasers are deemed to accept the current terms of any tenancy whether or not stated in the auction particulars.
Customer: replied 1 year ago.
Here is the full T&CThese General Conditions apply to the sale of each of these lots in the auction subject to any variation or addition referred to in the special conditions of sale relating to the relevant lot;
1. The seller reserves to itself the following rights:
(a) to withdraw any lot from the auction; (b) the right to sell by private bargain the whole or any part of any lot before the auction and that without disclosing the reserve price or giving any reason therefore; (c) to consolidate two or more lots into one and; (d) the right to bid by itself or by the auctioneer up to the reserve price. Special conditions of sale shall have precedence over these general conditions of sale, in case of any conflict.
2. Reserve price
Unless otherwise stated, there will be an undisclosed reserve price.
3. Bidding
The auctioneer retains the right to regulate the bidding and refuse any bid or bids without assigning any reason therefore in his sole and absolute discretion. All bidders are required to register their details and provide proof of identity to obtain a bidders number prior to bidding. In the event of competition each offer after the first shall exceed the immediately preceding offer by such sum as may be prescribed by the auctioneer. The auctioneer retains the right to divide and sell any lot in separate lots if the whole lot is unsold, or sell a group of individual lots as one lot. All bids are to be made clearly. The person offering the reserve price or if there be more offers than one above the reserve price, the highest bidder, shall be the purchaser. On the fall of the auctioneer’s hammer on his successful bid, the successful bidder must provide the auctioneer with their allocated bidding number and in default the auctioneer shall be entitled to re-submit the lot for sale. The successful bidder shall then immediately pay the deposit at the deposits desk. If the bidder wishes to bid on a subsequent lot then they may do so under the discretion of the auctioneers and pay the deposit once they are finished bidding. After placing the necessary deposit the successful bidder shall then immediately forthwith complete and sign the Minute of Preference and Enactment, the date of which shall be the date of the auction, and shall become bound and obliged for the sum offered by him. If the successful bidder acted as an Agent he must again give details of his Principal at the time of completing and signing the Minute of Preference and Enactment. In default the auctioneer will be entitled to re-submit the lot for sale or allocate a representative to sign the contract as offeror for the bidder & principal. A bid which does not reach the reserve price at the time of auction may be held provisionally by the auctioneer & submitted to the vendor of the property to be accepted or rejected. The bidder is held liable to their provisional bid price for 7 working days after the auction date. If the auctioneer does not return an answer to the bidder within this time then the bidder is not required to stand on their provisional bid. If the provisional bid is accepted then the bidder is required to proceed under auction terms immediately upon notification as follows. The contract for the sale of the lot shall be created upon the auctioneer accepting a bid from a purchaser, unless otherwise stated in the special conditions of sale, and the payment of a deposit shall not be a pre-condition of the contract. Where the sale of a lot is agreed pre or post auction then the payment of the deposit shall bind the purchaser to these terms and conditions of sale and the purchaser will proceed as per a regular auction sale. The auctioneers reserve the right to modify the specified date of entry in the auction contract as per any negotiation between purchaser and seller. Where a deposit payment is made by telephone or proxy form there shall be no cooling off period allowed. In default of the purchaser signing the contract the auctioneer will be entitled to allocate a representative to sign the contract as offeror for the bidder & principal.
If the purchaser is a Limited Company then:-
(a) The contract to purchase the lot shall be deemed to be entered into at the request of the successful bidder (“the Guarantor”)
(b) The Guarantor warrants that the purchaser is a properly constituted Limited Company of good standing and empowered to purchase any estate or interest in land in the United Kingdom and that the Guarantor has been duly authorised by the purchaser to bind the purchaser to purchase the lot.
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(c) The Guarantor guarantees to the seller (as witnessed by the signature of the Guarantor on the Minute of Preference and Enactment which the Guarantor shall be deemed to sign as agent for the purchaser and as the Guarantor of the purchaser) as follows...
Customer: replied 1 year ago.
I have attached here also
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
Have you been able to see clause 11
Expert:  JGM replied 1 year ago.
As advised I have answered this under another thread.