Buying a Court Order property prior to auction?

by Readers Question

16:19 PM, 5th September 2016
About 2 years ago

Buying a Court Order property prior to auction?

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Buying a Court Order property prior to auction?

Has anyone bought a ‘court order’ property before the auction please? This property I am interested in is going to auction as per a court order. To cut the story short, the ‘claimant’ or seller (sitting tenant in this case) has been granted full authorisation by the court to sell the property by auction. I have spoken to the seller and my solicitors and both agree that I can buy it prior even if the order says ‘by auction’. I have spoken to the seller/claimant and he seems to be happy with my offer and might even accept it.legal advice

However, my problem is what if after the transaction the owner (‘defendant’) comes back saying that it is undersold because it was sold prior then it might go in all sort of legal complications for not sure how long.

There have been recent valuations done by local estate agents and the auctioneer himself and my offered price, which is same as the middle of the guide price and actual reserve price (I know it), is not not too far off from these valuations. These valuations are 100-130K and I am offering 100K. So that way it is not too far off. Property is in a derelict condition and has nothing in it. I also will have to deal with the tenant post purchase but am fine with it. Once done up it can go up quite a bit in value therefore it might go up by quite a bit in the auction which is what is tempting me to buy in advance.

I know none of you can offer legal advice here but has anyone got direct experience or knowledge of this please who can please advice me something?

Thanks

Rambo



Comments

Nick Pope

9:31 AM, 10th September 2016
About 2 years ago

If "it might go up by quite a bit in the auction" then if I was the auctioneer or seller I would be concerned that the erstwhile owner could come back after the event and claim the difference.

However I don't believe that this is your problem - it's the seller and perhaps the auctioneer who should worry as the claim would be against them in less there has been collusion/backhanders involved.


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