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.