Whilst the current housing market means that there are potentially good deals at auction a recent High Court ruling has highlighted the dangers in purchasing property at auction without first taking proper legal advice. The facts of the case were that the buyer made a successful bid for a property without first obtaining any legal advice or a survey or viewing the property.
Having entered into a contract to purchase she discovered the property, due to a landslide, was teetering on a cliff edge and worth significantly less than she had contracted to pay for it.
After a lengthy legal case the court ruled that the contract was created when the auctioneers hammer fell and was, in the absence of any misrepresentation, valid. The buyer was forced to complete despite arguing that the property was now uninhabitable and worth only £3500.
Whilst this is an extreme case it serves to emphasise the dangers of buying at auction without first taking proper legal and survey advice. Having the appropriate advice can potentially can save buyers thousands of pounds and a great deal of stress for a relatively small amount of money. Anybody considering to purchase through an auction should contact Paul Miller to first discuss the implications and obtain a free no obligation quote for a review of the auction pack.