Auction property

[Riya10000]

Hello
Can anybody guide me my brother win a bid in auction house and one of the estate agent from pattisonP asking for auction fees but after win the bidding he talked to me and parents we decided its too far and there is not more job opportunities there.so we didn't respond much then to that project but we share our id proofs with them but didn't sign any documents from Pattinson company and we start hunting other houses but few days back my brother got a legal notice that he has to pay auction fees.?can anyone suggest what we should do he is a family man he is very much in stress.

He can pay the auction fees .when you register to bid and then bid on and win a property at auction you are bound by law and contract to pay the fees as set out in that contract. He'll also now have legal costs to pay.

He has to pay it OP. He’s chosen to bid and won the bid, he can’t just blank them now.

He really should have looked into all of this sooner. Once he placed that winning bid at the auction he is LEGALLY required to pay the amount he offered. This is all covered under the Sales of Goods Act 1979, it clearly stares that a contract of sale is formed at the point he is declared the winning bidder at auction, so the minute they banged the hammer he was legally bound. Can’t just ignore that, he owes the money and has to pay it.

Yikes, did you/he think it wasn't a binding thing? He's bought the property at auction. It's his. He has to pay for it and the auction fees. It's not windowshopping. That's the whole point of the process as opposed to the usual long drawn out way of buying properties.

And the solution is never to ignore such things and hope they'll go away. He needs to engage, communicate and get his head around the situation.

He has to pay. I presume he didn't understand that it's legally binding if he is looking at other properties. They will persue until he pays whether by legal enforcement (with added fees) or voluntarily. He can't get out of it.

As others have said, when you buy a property (or anything else) at auction, you enter into a legally binding contract. You can't change your mind later. The fact you didn't respond to them or sign anything is irrelevant. Your brother has to pay.

Thanks...but he didn't sign any contract.just given id proofs

Doesn’t matter, as my previous reply states this is all covered under Sale Of Good Act. Once you bid and the hammer is down on that bid with you as the winner- that is your contract. He’s bound by that. It’s the law.

By entering a bid you are agreeing to the terms. Once the gavel has fallen, you are bound by the t and c. Usually a deposit is required on the day with the rest to follow upto 6 weeks later. He's liable.

He will have to complete the purchase and pay all monies due.

He can then put it back into another auction (more fees will apply) and try and sell it.

It doesn't matter that he didn't sign a contract. Most contracts are never written down and signed. Every time you buy something from a shop, you enter into a contract but you don't sign anything. For an auction, the contract is formed when the hammer falls (Sale of Goods Act 1979 Section 57(b). At that point the successful bidder has accepted the terms and has entered into a contract to buy.

You seem to think an auction is some kind of competition and the winner can then decide whether they want to buy. That is not true. When the hammer falls, the highest bidder has entered into a legally binding contract to buy whatever was being sold. The fact your brother has changed his mind is irrelevant. He has bought this house and he must pay. If he does not do so, the seller can take legal action against him.

If your brother really does not want this house, he is going to have to complete the purchase then sell it himself, either by auction or through an estate agent. He may end up losing money, but I'm afraid there is nothing that can be done about that.

As part of the registration to bid he would have had to agree to the terms and conditions of the sale process before the auctioneer would have approved him, and he should have then received an email confirming he had accepted them. He would have also had to register a bank card for the 10% deposit & other applicable fees due on the day. He may well be able to extract himself from completing the purchase but he is liable for the monies due on the fall of the hammer, and the seller could possibly decide to sue him for breach of contract.

I've bought at auction and have had to show I had 10% of the guide price in case I won the bid. On the hammer falling that is you exchanging, plus any fees. The balance is usually due within 28 days.
Did he show he had the money? Did he give and bank details?
At the very least he will need to pay the fees.
I'm amazed they haven't chased him for the 10% - are you sure that hasn't been paid? Ignoring communication from the auction company s the worst thing he could do. There may have been an under bidder who could step in and buy it.
He really needs to call them and sort this out. It won't be the first time someone has made a mistake or changed their mind, but the fact remains it is clear on the Pattison website that you are legally bound to complete the sale, and you will likely need to forfeit the deposit.