Bought a property at auction without details of existing tenant?

Bought a property at auction without details of existing tenant?

9:30 AM, 14th November 2024, About 3 hours ago 7

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Hello, I made a bid on a property in an auction without doing due diligence but the bidding did not meet the reserve price. The auctioneer then contacted me to ask if I wanted to make a post auction on the property.

During the email conversation, I stated that my maximum offer would be £41,000 but did not make a formal offer.

Instead, I started to ask questions about the property. The property had a tenant in situ and having made the error of bidding without doing proper due diligence, I felt I now had the opportunity to make any enquiries/ask questions before deciding whether to make a formal offer or not.

However, after emailing my first questions, the auctioneer replied within an hour as follows:
“We have sent over your questions to the vendor so we will hopefully get the answers back to you shortly 😊.
In the meantime I am delighted to advise that your offer of £41,000 has been accepted. Congratulations!”

I was bewildered and in a state of panic as I assumed I was bound by auction T&C’s and obligated to go ahead with the purchase. Foolishly, I then paid the deposit and Buyer Premium and completed 28 days later paying cash.

Three days after paying the deposit, (and prior to exchange of contracts) I did email my concerns at how it was handled to the auctioneer but was basically fobbed off.

However, when I pursued this after exchange of contracts, I was then told I could have pulled out prior to exchange of contracts as it was a post auction offer.

I am now in the situation where I own the property. There is an AST in place until 21/12/2024. I do not have any keys to the property. I have contacted the agency named on the contract but they have not replied to my emails.

The auctioneers gave me another agency to contact but, again, they do not respond to me. The auctioneers also gave me a number of the tenant, but this just goes to voicemail and is ignored.

I have not received any rent.

I would appreciate any advice on this matter.

Thank you,

Mike


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Comments

David Houghton

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10:00 AM, 14th November 2024, About 2 hours ago

Easiest way go to the property and talk to the tenant directly. It's very likely he would be happy to sign a new tenancy with you, particular if you offer to sort any problems with the property

Ross Tulloch

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10:03 AM, 14th November 2024, About 2 hours ago

Reply to the comment left by David Houghton at 14/11/2024 - 10:00
I think David is absolutely right. In the first instance I would go and talk to the tenant and see what the situation is. Quite often things can be resolved simply with consultation. You may find there is an actual huge problem but quite likely and hopefully not.

Cider Drinker

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10:24 AM, 14th November 2024, About 2 hours ago

Firstly, the tenancy doesn’t end in 21st December. It continues as either a statutory or contractual periodic tenancy when the fixed term ends.
You need to inform the tenant that you are the new landlord.
Next, check what paperwork is in place. EICR, gas safety, deposit protection, AST, EPC Rating, Right to Rent etc.,
Arrange to meet the tenant and to inspect the property.
I assume the SDLT was paid. It’s now 5% on properties over £40k so, that’s over £2k. At £40k, it would have been exempt from SDLT.

Dylan Morris

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10:39 AM, 14th November 2024, About An hour ago

Did you not use a solicitor to handle the conveyancing for you ?

Mike O'Sullivan

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11:00 AM, 14th November 2024, About An hour ago

Reply to the comment left by Dylan Morris at 14/11/2024 - 10:39
Yes but he was recommended by the auctionhouse which now concerns me.

Mike O'Sullivan

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11:13 AM, 14th November 2024, About 55 minutes ago

Reply to the comment left by Ross Tulloch at 14/11/2024 - 10:03
I failed to mention that two Letting Agencies are involved. I have emailed both explaining that I am the new LL but they fail to reply, even after promising to do so by phone.

I am unclear why two Letting Agencies are involved and can't get clarification.

fairwood789

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12:01 PM, 14th November 2024, About 7 minutes ago

Unfortunately, you were very foolish in not doing your correct due diligence.

However, I have had results from two auctions, one where an auctioneer, incorrectly sold us a property below reserve, then tried to cancel the sale. We objected and won, then the seller removed furnishings that should have been included. We challenged his solicitor who eventually paid us compensation. In another case, we discovered a year or so after completion of a Freehold that other, undeclared land had been included. This land had a large oak tree on it that was causing a nuisance to a neighbour. After failed negotiations I reported the matter to the SRA. Within three weeks the selling Solicitor contacted me and agreed to repurchase the offending part of the land and pay our costs. The part that we thought was the only part included in the original sale was sold at a profit.

It might be worth you reporting the original selling solicitor to the SRA if you feel you have grounds for complaining. Hopefully you will get a fairly quick decision.

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