Buying a house at Auction

The Megaphone

Hi,

Im considering bidding for a house in the upcoming allsop auction in May, the property has been put in receivership so im just wondering if anyone can clarify the situation where a Purchaser takes ownership of a house but there are outstanding charges on the utilities/other services, i.e. electric bills, bin charges, etc.

Could i be liable for these charges (if any) or as the property as been put into receivership does that mean that i start off with a clean slate??

Also if anyone has any other insight - it would be greatly appreciated.

Thanks

Scortho

The Megaphone wrote: »

Hi,

Im considering bidding for a house in the upcoming allsop auction in May, the property has been put in receivership so im just wondering if anyone can clarify the situation where a Purchaser takes ownership of a house but there are outstanding charges on the utilities/other services, i.e. electric bills, bin charges, etc.

Could i be liable for these charges (if any) or as the property as been put into receivership does that mean that i start off with a clean slate??

Also if anyone has any other insight - it would be greatly appreciated.

Thanks

First and foremost get a structural done beforehand. The moment the hammer goes down, it's yours. So it'd be a bit late getting it done afterwards.
Get a solicitor to go through all the legals before bidding. Has happened at allsops where certain properties aren't in the best position legally speaking.
Make sure you have the money. No point bidding if you don't have the money already in place.

I can't see you being liable for bin and esb. You didn't run up these charges, and the bill won't be in your name.
Wicklow co. co. are trying to get purchasers of houses in a certain estate to pay the development levy on the houses, as the developer never paid them. This may not get through the courts, however check to make sure that they have been paid in case it does and sets precedent for other cases.

As far as I know you buy the house as is. Generally when you buy a new build, you can snag it. With auctions, to the best of my knowledge, this isn't available.

StillWaters

Check title carefully, as that can be an issue with auctioned property. The only charge that I can think that would be attached is NPPR which could have accumulated to a sizeable sum.

Scortho

StillWaters wrote: »

Check title carefully, as that can be an issue with auctioned property. The only charge that I can think that would be attached is NPPR which could have accumulated to a sizeable sum.

Would that not be taken by revenue from the proceeds of the sale?

valleyoftheunos

If it is being sold by a reciever you buy it as is and at Auction the contract is binding as soon as the hammer goes down so make sure you have done all your surveys and homework before the auction. In a situation like this you may well need to get your solicitor to examine the title and charges before going ahead particularly as getting a Mortgage for such a property could be difficult.

The Megaphone

Thanks everybody - Ive requested a copy of the legal documents and i have a friend who is a structural engineer so i will kidnap him someday to inspect the property.

Will keep this thread updated as to how things pan out.

engineermike

The Megaphone wrote: »

Thanks everybody - Ive requested a copy of the legal documents and i have a friend who is a structural engineer so i will kidnap him someday to inspect the property.

Will keep this thread updated as to how things pan out.

HI OP,
Lmfao @ Kidnap the structural engineer. Funny enough we have a term in the business for the alsop auctions or some other large property sales, " drive by structural surveys".
They (auctioneers / agents ) try to restrict access for a survey to a given period (normally 2 hours during a preset open viewing time - which can make it quite difficult to carry out a complete structural survey depending on the condition of the property).
My advice having danced this dance for a no. of clients for previous allsop auctions / or auctions of that type was as follows.
I instructed my engineers to go to the property 30 - 60 minutes to the arranged open access time, to carry out the external examination & boundary check before the property was opened up.
Difficulty arises with many other prospective buyers arriving down to the home when engineer was trying to carry out the survey, so I requested our client not to add to the distractions during the survey - allow the engineer to gain as much required info. during the time, and for the client to carry out their own viewing & engage with the engineer when he / she was completed & satisfied - and could discuss any queries outside afterwards when time wasn't a constraint.
Its not the same for every property in the sale depending on occupancy etc. but derelict properties and the normal structural survey process can quickly turn into a farce.
Mike F

PhilMcGee

I couldnt get into the auction thing at all. Tried it, didnt like it. I find it much better to have a few bank manager and estate agent contacts and tell them what you want. I have been able to buy properties that havent even come on the market like that.

The Megaphone

Well, the latest is that ive my solicitor in place and waiting to review the title once the legal pack is received, mortgage application is approved in principle and my buddy engineer to ready for the 'drive-by' structural survey...

As this is an auction, is it possible to use my structural survey report to influence the Vendor to lower the maximum reserve? (assuming issues are found that im willing to remediate).

Scortho

The Megaphone wrote: »

Well, the latest is that ive my solicitor in place and waiting to review the title once the legal pack is received, mortgage application is approved in principle and my buddy engineer to ready for the 'drive-by' structural survey...

As this is an auction, is it possible to use my structural survey report to influence the Vendor to lower the maximum reserve? (assuming issues are found that im willing to remediate).

I wouldnt say so. Generally at auction bids are placed and the person with the highest bid wins the auction.
If the price of the winning bid is lower than the reserve, then negotiations can take place.
Thats my understanding of it anyway. I couldnt see any reason for the seller reducing his reserve pre auction. Theres no advantage for him in it.

engineermike

The Megaphone wrote: »

Well, the latest is that ive my solicitor in place and waiting to review the title once the legal pack is received, mortgage application is approved in principle and my buddy engineer to ready for the 'drive-by' structural survey...

As this is an auction, is it possible to use my structural survey report to influence the Vendor to lower the maximum reserve? (assuming issues are found that im willing to remediate).

No is the short answer. All you can do is subtract the PC remediation cost from your auction 'bid ceiling'.
And take your chances.

0868832875

If I buy a house and find out later that the water table has been contaminated due to malicious damage before the auction do I have grounds for compensation .? If this damage took place during a burglary that was reportted to the police but not disclosed to the auctioneer.

the_syco

I doubt it; you buy the house "as is".

davo10

the_syco wrote: »

I doubt it; you buy the house "as is".

Absolutely true. As said earlier in this thread, you buy it as it is, warts and all, when the hammer drops, it's yours.

4ensic15

The Megaphone wrote: »

Well, the latest is that ive my solicitor in place and waiting to review the title once the legal pack is received, mortgage application is approved in principle and my buddy engineer to ready for the 'drive-by' structural survey...

As this is an auction, is it possible to use my structural survey report to influence the Vendor to lower the maximum reserve? (assuming issues are found that im willing to remediate).

The chances of getting a mortgage on a house sold bye are receiver are low. Most receivers don't offer marketable title. The contract is usually online for allsop auctions. Download it and read the special conditions.

davo10

4ensic15 wrote: »

The chances of getting a mortgage on a house sold bye are receiver are low. Most receivers don't offer marketable title. The contract is usually online for allsop auctions. Download it and read the special conditions.

You realise that the post you quoted is from 4 years ago.

I've bought properties in receivership and had no problem getting finance. As in all purchases, it's up to the buyer to engage an engineer to to do a survey and solicitor to do the planning/title search. The chances of getting a mortgage are exactly the same as any other purchase, at auction you just have to have your ducks in a row before you bid.

0868832875

I have been doing a bit of checking on CEPI page .It says that under the law society contract the vendor is lible for any loss or damage to the property between the date of sale and the actual completion of the sale. The same is not completed yet as the 6 weeks is not up.The house was burgled and the lines from oil tank cut so that water table is polluted now

davo10

Auction sales are not the same as standard property purchases. You need to familiarise yourself with the differences ( and what the term "water table" means, unless the burglary caused the tides to rise I suspect you are using the wrong term) In auction sales, you are buying sight as seen, it's up to you to do your research before you buy at auction. Talk to your solicitor.

https://www.ebs.ie/blog/2014/12/beginners-guide-to-buying-at-auction


http://www.stonesolicitors.ie/buying-allsops-auction/

http://allsop.blob.core.windows.net/external/e793f3ff-8021-4ffd-880d-eaabf9fe0f72.pdf

0868832875

Thanks

0868832875

There is slso asbestos concealed outside.According to an article on consumer law regarding auctions which states that what you buy must be for for purpose nd must match the description of advertsement

0868832875

There is slso asbestos concealed outside.According to an article on consumer law regarding auctions it states that what you buy must be fit for purpose and must match the description of advertsement.This house clearly doesn't and it was way overpriced also due to a very enthusiastic rival bidder who had just come into a large amount of money

Muahahaha

0868832875 wrote: »

There is slso asbestos concealed outside.According to an article on consumer law regarding auctions it states that what you buy must be fit for purpose and must match the description of advertsement.This house clearly doesn't and it was way overpriced also due to a very enthusiastic rival bidder who had just come into a large amount of money

Unless you want to spend years in a costly legal battle that relies on weak consumer laws then I would run a mile. Consumer law is one thing but the Special Conditions in auction contracts are a different ball game. At auction you buy it "as is", no comebacks. When the gavel falls you are legally bound, complaining about asbestos after you sign a contract is not a good position to be in Avoid at all costs imo

davo10

Just to clarify op, have you bought the property at auction or are you thinking of buying?

If you are thinking of buying then don't, if you have bought, then it was up to you to get the house surveyed before you bought at auction. You now need a solicitor to explain the implications of auction purchases.

Consumer law does not apply to property purchases.

http://www.workingnotes.ie/images/stories/Issue68/buying a house-is the buyer protected.pdf

0868832875

Thanks for info 😊

0868832875

This is a farmhouse / yard / and a field.The asbestos was buried on the property .Surely there must be some redress for this

4ensic15

0868832875 wrote: »

This is a farmhouse / yard / and a field.The asbestos was buried on the property .Surely there must be some redress for this

Redress from who?

davo10

103697595, have you bought the property? If you have, did you get it surveyed by an engineer prior to purchase, really you need to be asking your surveyor why the issue with the water wasn't noticed and your solicitor about your rights.

You seem to be looking to apportion blame for the condition of the property, but this is the problem with auction purchases, you can get a bargain but you have to know what you are doing and what rights you do and more importantly don't have after your bid is accepted.

I've just read back on your previous posts where you mention that the property was "overpriced" due to a rival bidder who came into money and that it "isn't fit for purpose", it would seem you do not have any understanding of how auctions work, people bid at auctions, the price goes up until only the top bidder is left, and properties don't have to be "fit for purpose", sometimes they are rubble or delapidated shacks, you should have known its condition before you bid.

0868832875

This property is the farmhouse belonging to a farm which my husband bought last year.The house came up for sale last month.He is a very cautious man normally but his heart was set on getting the house.I am not sure how well it was checked out.Familiarity breeds content in this case .Normally he's so careful but in the heat of the moment at the auction he lost the run of himself.It's not his first auction.He was unlucky that a lady who had fallen in love with the place kept bidding through a solicitor and drove the price right up .

0868832875

That should read it was NOT his first auction

davo10

If your husband didn't have the house surveyed, then unfortunately he cannot blame anyone else. Price rises are part and parcel of auctions, in fact that is the very distinct point of auctioning a property, people bid and the price goes up.

Op, you will need to contact the EPA or HSA regarding the safe disposal of the asbestos.

0868832875

He's on to that.Thanks for all your advice 😊

0868832875

The sale has not been finalised yet....the 6 weeks are up next week....does that make any difference?

davo10

0868832875 wrote: »

The sale has not been finalised yet....the 6 weeks are up next week....does that make any difference?

You need to ask your solicitor that question.

0868832875

You have been very good .I should buy you a pint thanks again 😊Oh.....what is your gut feeling re what the solicitor might say.......is there any hope at all? Maybe lower the price ....all we want is fair play.My husband has aleady paid out a substantial amount of money to the seller already for the farm .Does decency not exist any more?

sword1

Could you approach the other bidder and see if you could sell it to them at a slight loss, before the deal goes through to minimise the costs, or maybe sell to them for the full price and give some of the adjoining land so they have a bigger garden to sweeten the deal.

0868832875

So frustrating ....after putting the price up in the moon the under bidder lost all interest .It's so annoying

mugsymugsy

0868832875 wrote: »

So frustrating ....after putting the price up in the moon the under bidder lost all interest .It's so annoying

Wonder if the under bidder were ever really interested and just drove the price up. Could have been a friend of the owner and played the system.

0868832875

No we discreetly found out it was a lady from out of town who had recently win a large divorce settlement .....easy come easy go.....

0868832875

I wonder would the place have been insured ....public liability etc

0868832875

I wonder would the place have been insured ....public liability etc