What happens when things go wrong
Our aim at Barnard Marcus Auctions is to make every effort to ensure things go right. However to avoid obvious pitfalls, both buyers and sellers at auction should understand the key differences of transacting by auction when compared to dealing with High Street Estate Agents.
If you are buying at auction it is essential to understand that upon the fall of the auctioneer’s hammer a legally binding exchange of contracts takes place. You are required to pay the purchase deposit together with our Contract Documentation Charge there and then. Indeed if you are bidding by telephone or proxy we will need these funds in advance of the auction. You will also need to be 100% sure that you will have access to all the funds required to complete the purchase on the agreed completion date as set out in the contract conditions.
This differs from buying through an estate agent where an offer made and accepted is then referred to solicitors who may take many weeks to effect exchange of contract and before such point either party can withdraw with impunity. Accordingly to consider buying at auction, bidders should complete all their enquiries and checks (due diligence) prior to bidding. As a minimum this should include inspecting all the documents in the legal pack and taking advice upon the contents where appropriate or unsure of understanding, inspecting the property, completing any survey which may be required and ensuring funds are in place for all costs required to complete the purchase.
Sellers too, need to understand that entering a property to auction is a commitment which may involve costs that may not be recoverable if there was to be a change of heart. Abortive transactions may involve the loss of entry fees, legal costs and withdrawal charges, so again if you are selling make sure you are prepared to see things through before deciding.
Whether buying or selling if you are unsure about anything ask us before committing. We are backed up by one of the largest property services groups in the UK and have the expertise to help. We have a prescribed complaints procedure and subscribe to a Code of Practice agreed with Trading Standards and The Property Ombudsman, who provide the ultimate arbiter for the resolution of any complaints.
