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?

But the auction is a legally binding contract. The buyers surely have no defence in the eyes of the law?

But how can they pay the deposit if they don’t have it

I agree. You should pursue.

Are you sure they have no assets?

How is the Auction House responding to the contract breach? Could you join forces to pursue?

Do your parents have legal cover on any insurance or credit card products? You may be able to get proper legal advice through that route.

Not having a defence doesn't give them anything to pay with.

Again: blood. Stone. You can't get out what isn't in there in the first place.

Was the green belt land mentioned in the legal pack that your parents / their solicitor prepared for the property?

Was the green belt land mentioned in the legal pack that your parents / their solicitor prepared for the property?

No. But it’s made clear that if the land is to be developed independent checks need to be conducted

Are you sure they have no assets?

Yes, the buyer’s lawyers has provided compelling evidence they have no assets to their name.

Then as my previous advice, look to the auction house if they failed in their duty to do due diligence on bidders.

Carrying out their checks is reasonable, withholding information like that was dishonest.

So they deliberately withheld the information?

There is absolutely zero point in suing someone with no money. Unless your parents have too much money and are looking to spend some?

I'm a litigation lawyer, but obviously don't know all the facts, but first rule of litigation is don't pursue a defendant who can't pay

Bit pointless withholding a key piece of information like that. If they hadn’t then the buyer probably wouldn’t have bid and this issue probably wouldn’t have arisen. I would not bother suing for this.

Surely, it would be a case of throwing good money away.

Sorry I don't really know about Auction but I don't really understand how your parents have a case. Surely this is similar if someone placed a bid on a house, the bid was accepted and then they pulled out the day of contract signing and the auctioneer had not taken a deposit.

I am guessing that your parents got a very good price because the buyer wanted to develop and now all the interested parties know that isn’t possible, if they were to put it back into an auction they wouldn’t get anywhere near as much?

If they pursued the buyer and tried to force him into bankruptcy what good would that do anyone? Your parents would just end up with legal bills for nothing.

Seems like a waste of time and energy

It costs money to hold an auction doesn't it?

Exactly what came to my mind!

@Blancko if anything the auction house, but it's probably still a complete waste of time as they'll have the legals on this well tied up!!

My dad is VERY pissed off.

I think he may just be hoping to settle (ADR)

There’s breach.

but then there’s what are your actual losses?

you get damages for the loss, not just the breach

@purplecorkheart - no buying at auction is different. Normally you are contractually bound to buy the property at the fall of the hammer and have to pay a non refundable deposit there and then. you are meant to do all the checks before the auction.

Problem here is that even though their parents probably could sue what’s the point? Not sure how the buyer intended to pay in the first place however assume they’ve hidden away assets or something but it will be more money and hassle than it’s worth to enforce the contract.

How can you get money out of someone who doesn’t have it though ?

@AnneValentine
Carrying out their checks is reasonable, withholding information like that was dishonest.

How is it dishonest. There was no withholding information ffs. They offered a price if land for sale. They didn't offer development potential land for sale. You are being quite ridiculous.

Surely the very first thing that a potential buyer of a rural property/land that appears ripe for development would do would be to check the greenbelt/conservation area/national park etc status?!

Sorry, I may be missing something, but these people with no assets put on a bid in some land. How were they going to pay for it?