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  • Auction Tribe

    Selling a lot prior to auction

    we understand that if a vendor was to accept a post auction offer for an unsold lot the sale will be under auction terms.

    where a vendor sells a property before the auction, is the sale governed by the auction contract?

    i.e. would we still have to pay the additonal costs in the contract e.g.search fees, admin fees, buyers premium etc.

    these amount to approx £8k.

    does the vendor pay a financial penalty for withdrwawing the lot from the auction?

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    The type of auction I opted for is what they call a 'modern auction method' with 'I Am Sold'. In this one, the buyer pays the auction fees (reservation fees)  but I wanted to pull out and checked the contract which advises, while they have sole selling rights I would be liable for the reservation fees if I sold it outside of the auction  and also if I sell outside of the auction but to a buyer who they introduced.  I would also be liable if I did not proceed with the sale for whatever reason when a 'ready, willing and able' purchaser has come through the auction.

    As in my case the buyer pays the reservation fee, I can give 21 days notice to come out of the process and it will cost me £360.  My property did not sell at the first auction so they put it through again in June.  I don't think it will sell then so I am just going to let it run then put it on the traditional market as I will be free to move on. I was told at the outset that I have to pay £250 for the auction pack but they have not taken this money from me as yet.

    The auction method I am using might be slightly different to yours but I expect you would have the same liabilities.  It would be set out in the agreement you signed.

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