Urgent ! Auction Property sold through misrepresentation.

A question about : Urgent ! Auction Property sold through misrepresentation.

The Property sold to me was as advertised ‘Reception/Kitchen, Three Rooms, Bathroom/WC’ however it has transpired it is only one room/Bedroom property i.e. 1 Reception, 1 Bed, Kitchen, Bathroom/WC and the sale was completed through possible misrepresentation.

Additionally I have been asked to pay 2% pf property value towards legal pack and seller solictor free but the Legal pack / searches document which were out of dates (more than 3 months) and were not acceptable to bank.

I don’t know what to do as I already paid the 10% deposit and actionier fee via cheque ...What options I have got? ….How can I get my self out of deal? If I stop the cheque what is going to happen? It is a big auction house and I have to complete buying by 13 March ( 2 weeks left).

Best answers:

• I doubt you can do much as it probably states measurements etc are as a guide only and it is up to the purchaser to check.
  Have you checked the terms and conditions of what you have signed?
  If you stop the cheque I guess you will be in breach of contract.
  Best to get some legal advice asap.
• Maybe I'm missing something, but didn't you see the property before you bought it?
• Any auction house will have a clause in their contract, advising purchasers to satisfy themselves as to the extent and condition of the property before bidding, rather than relying on the sales particulars, which may be open to different interpretations.
  That's the bottom line.
• Nothing you have written suggests 3 bedrooms. It states 3 rooms. That is what you have got.
• Nothing you've said sounds like misrepresentation to me. The documents said it had three rooms, and it does.
  My opinion is worth what you've paid me for it - i.e. nothing - so you might want to check with your solicitor (fast!) that that really is the case.
  I'm assuming this is England and Wales, in which case it's your responsibility as buyer to do whatever searches you need. Again, get onto your solicitor fast to see if you can get searches acceptable to your lender done in time. It's probably also worth seeing (and paying for) a mortgage broker, to see if they can get you a deal with a different lender more quickly.
• Presumably, you thought you getting a bargain (3-bedroom property for the price of a 1-bedroom property). Where is the property located, and how much did you bid for it?
• Did you not go and view before you went to auction to check for yourself?
  Sounds like you got 'auction fever' like my ex OH did and got carried away with the bidding.
• Sounds like it has four rooms, not three, so you get a Brucie Bonus room.
  Did you not count the rooms thrice when you visited? I mean, you did visit, didn't you?
  Auctions can be a brilliant way to buy property, for the well-informed. Me, I'm not brave enough, and I've bought plenty of property in my time.
  I don't see any misrepresentation here, not even an attempt to mildly deceive.
• Buying a property at auction when you don't the funds available as liquid cash sitting in a bank account is always risky - you are contractually obliged to purchase the property by a specified date as soon as the hammer falls.
• Tangentially to this thread, it's interesting that in France (and I presume many other countries) stating the number of rooms is pretty standard, rather than bedrooms. Plus they include an area figure too.
  Funny how these conventions become so embedded.
• Surely
  Quote:
• Posters have been helpful. They have pointed out the facts
  * 3 rooms were advertised and the property hs 3 rooms
  * auction houses always have caveats telling buyers to satisfy themselves before bidding
  This asists the OP by making clear there is no misrepresentation and he has a binding contract.
  Yes, OP has been critisized for
  * (apparantly) not viewing before bidding and
  * not having the funds sorted out before bidding
  but that is useful advice for other people thinking of auctions (although too late for the OP).
  As for advice: pay the 10% as penalty for not Completing. You will be in breach of contract by not Completing so the 10% is forfeit. If you stop the cheque you will dig a bigger hole, legal action will follow, as well as mounting legal costs.
  As for the legal pack being unacceptable to the bank, this should have come to light before the auction when either
  * OP checked the pack
  * OP's solicitor checked the pack and/or
  * OP applied for mortgage and lender's solicitor checked the pack
  Since it seems OP failed to apply for mortgage till after bidding (and commiting to buy), there is little he can do other than learn th lesson:
  Never bid till
  * you've checked the property is what you want
  * you've checked the property's condition (survey etc)
  * you've checked the legals
  * you've got the cash, and/or mortgage confimed
  Sorry - but there is no "get out of jail free" card that can be played here.
• Have you never watched "Homes Under The Hammer" ...... Rule No1, Never buy without viewing and reading the legal pack !
• How much did you buy it for and how much is it worth?
  If you will make a small loss or break even if you go ahead, is less than the 10% deposit you could forfeit, then personally I would go ahead and wait for prices to go up.
• I am assuming OP needs the mortgage to complete so raise the funds elsewhere, complete, sort out problems and get mortgage.
• Is it this property here?
  https://www.rightmove.co.uk/property-...-48236497.html
  '
  key features
• For sale by auction
• Flat
• Number of Bedrooms: 0
• Number of Bathrooms: 1
• Number of Reception Rooms:'

If so , as it's London it's probably still a good price.
I have bought property at auction, and there are some really bargains to be had, but you do need to view them.
You have a legally binding contract, so you either pay up or forfeit your 10% deposit.