Lost £6500 in "modern auction method"

[Richiegolding]

Hi

This is my first post, so hopefully in the correct section.

Just looking for some advice please.

I purchased a house through the new modern auction method. I understand it is totally set up not in the buyers favour, however we had the funds and were ready to complete within 12 days of exchanging, well in timescale to the 28 day contract.

Now more then 2 months since the completion deadline, i am still no further forward as the house is in no position to be sold as the sellers have negative equity therefore can't pay there mortgage off at the price they agreed to sell for.

Now the problem is that the auction department are claiming that i won't receive my £6500 back even though i have stuck to my side of the contract and even though the house i want to buy can't be sold to me.

My question is, surely they can't legally keep my money as that house should not of been advertised for sale to start with????

Any help will be appreciated i am very anxious and worried over this, especially with 3 kids and xmas round the corner.

Thanks Richie

[des8]

Re: Lost £6500 in "modern auction method"

Hi and welcome.
a terrible experience for you at this time of tne year.

I'm afraid however that there might not be good news for you.
The £6500 (?5% of hammer price) may not be a "deposit", but a "referral/reservation fee" charged by the estate agency.

Could you name the agency concerned, so we can check on the wording of their Terms and Conditions

[Arcadian]

Re: Lost £6500 in "modern auction method"

It sounds like a case of unfair contract terms, possibly?

Breach of contract on their side?

misrepresentation by the other party or by the auction intermediary?

I think others will agree that we need more information, specifically a copy of exactly what you signed up to...