Suing someone with no assets

[Blancko]

This is on behalf of my parents really.

My parents have been wanting to sell a part of their farm for a while to help their kids/grandkids out. After researching it was agreed it would be be best to use an auction house.

Last week the property went to auction and was “sold”. But the “purchasers” are now backing out due to a number of reasons. Think they only found out after the auction the plot is greenbelt.

it has come out the person who made the bid has no job and no assets.

Parents wanting to pursue a claim as it is all a major inconvenience. Its a bit pointless for them imo.

Any thoughts?

You’re correct

Why go after people with no assets? Do your parents want revenge? Or to completely impoverish them? The sale falling through is an inconvenience- no real harm occurred.

If the person has no job and no assets, what exactly are they hoping to achieve by suing, aside from burning through their own money in legal fees?

You might have a case against the auctioneer though - surely they should only accept bids from people who are solvent?

Wouldn't the auction house be chasing them for their fees?

What is their material loss? They can just resell.

Surely the auction house are at fault as aren’t you meant to have proof of funds + pay x amount at the end of the auction?

What were the terms of the auction, OP?

Did the purchaser have to put a non refundable deposit?

Did the auction house not qualify them as a buyer before they bid?

I'd look to the auction house as they do have assets.

Walk away from this one. And use a good land agent to sell in future

Blood. Stone. Good money after bad.

Not sure how these things work but could auction house not offer it to the next highest bidder

Honestly I think it would cost an absolute fortune in legal fees and likely never go anywhere. The buyer could argue that the land was not as described or any number or other things, and as you say, even if they were found to have broken contract, they don't have any assets. Also I think the contract of making a bid would be to the auction house. They made no agreement directly with your parents.

From my understanding the auction house does not check for proof of funds

other bidders no longer interested.

Totally pointless. Sounds like they were selling a dud and got rumbled.

@CantFindTheBeat the buyers are supposed to pay a non refundable deposit immediately after the auction. Have not done so.

Could you contact the Auction House and ask about their pre-bid checks under the guise that you may interested in bidding on a property?

I think it’ll be a waste of time and although inconvenient for them, they haven’t suffered any monetary or material loss ?

The case would be thrown out, surely.

What ,exactly, are they trying to achieve ?

Just because they have no liquid assets doesn't mean they didn't have access to funds to complete the sale though. They could've been bidding for someone else and didn't want to show their hand. Either way, it won't be worth the legal fees pursuing. Also, didn't anyone from the auction house advise your parents that it's really difficult to get planning permission to build on Green Belt? That's bound to put buyers off. I think you need a specialist land agent to oversee a sale.

Surely you could argue there's a loss if they don't achieve the same price at the next attempt. For example, if they now sell it for £80,000, but this contract was for £100,000, there is a loss of £20,000.

In addition, they will now need to pay council tax, energy standing charges due to the longer time to sell.

Nor would I have if I found out the land was Green Belt. Sounds like your parents are the sneaky ones here.

Potential buyers are told to do their own due diligence

The auction house should refund any fees your parents have paid.

There should be no loss?

Clearly they did after the auction.

What is it your parents think they will get from someone with no assets? The 'no assets' bit should be a clue as to what they are likely to gain. Nothing.