Can I Withdraw My Offer After the Auction?
When the hammer goes down at an auction and you are the winning bidder, you are then obliged to buy that property in 99% of cases.
There’s no room for changing your mind or second thoughts when it comes to property auctions, but if there is a genuine reason why you no longer want the property there could be a way to return it.
These answers should direct you as to whether there is any way you can go back on your decision.
1) Why Do You No Longer Want The Property?
- A) I cannot sell my own home
- B) I accidentally bought it
- C) I have changed my mind
2) Do You Have A 10% Deposit Or Any Way Of Raising This?
- A) I have a 10% deposit
- B) Not at the moment
- C) No
3) Was The Property Incorrectly Advertised?
- A) A number of things were wrong about the listing such as address, condition etc B) I feel the listing didn’t tell the whole story
- C) There was nothing wrong with the listing
4) Have You Signed Anything/Registered?
- A) No, I didn’t register, I just walked into the auction
- B) Yes I did register but have not given any bank details/contact details
- C) I fully registered
Mostly A – You Can Argue Your Case
If you want to break your contract with the auctioneer you will have a fight on your hands. It is very rarely that houses that are bought at auction are returned. Once that hammer goes down you have entered into a legal binding contract and the only way you will be able to get out of that contract is to prove that there was something wrong with the property or you had been mislead when you bought it.
If there is genuinely something wrong with the way the property was sold you could have a case. The auction house needs to advertise the property correctly so you at least know what you are buying. If they list the property as being on the wrong street or the basic details about it are incorrect you could argue you were miss-sold the property, but you would have to seek legal advice on this.
If you do not have the 10% deposit to pay for the property, this will land you in hot water with the auction house and they will demand their money one way or another.
If you genuinely cannot get a mortgage for the property some auctioneers will let you get away with only paying the 10% deposit then handing the property back. You may lose a few thousand pounds, but in the long-run it will be cheaper than finding a mortgage for the property.
Mostly B – You Have A Fight On Your Hands
It may sound harsh but if you bought a property by accident and no longer want it this will not be a good enough reason to try and return it.
It will depend on your individual circumstances and you might want to consult a lawyer. It sounds like your best option would be to find the 10% deposit as quickly as possible and try and get a mortgage on the property, as a last resort you could turn to a bridging loan.
You could then put the property back up for sale and hope to sell it in again quickly. If you have not registered with the auctioneer this would pose questions such as why did the auctioneer accept your bid in the first instance and if there was a genuine fault on the auctioneer’s behalf they might deem the transaction null and void.
Mostly C – You’re Stuck With The Property
Unfortunately from your answers it seems that you have no option but to buy the property and then if you really don’t want it sell it on.
Simply changing your mind or realising you do not have enough money to buy the property will not work in your favour and if you do not pay up the auction house could issue court proceedings against you to reclaim their money. It is important that when you bid you do it seriously and you think about all the consequences before you make your bid.
Depending on what type of property you bought at auction and how much you paid for it, it is not always the end of the world if you then change your mind.
The worst case scenario would mean you putting the property back up for sale or possibly even sending it back to auction. You would lose out on solicitors and mortgage costs but it would be a relatively small sacrifice compared to writing the property off altogether.
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