14:25 PM, 23rd September 2014, About 7 years ago 25
More and more sales are being conducted by what is termed “Modern Method of Auction”.
It is sold as a buyer friendly method of purchase but from what I can see, a non refundable reservation fee of 3.5% subject to a minimum of £5,000 plus VAT needs to be placed which then “secures” the transaction and takes the property off the market. Other than that it basically looks like a normal estate agent transaction. The terms go on to grant 28 days to exchange contract and then a further 28 days to complete. That is pretty standard anyway and unlike traditional auctions I assume these dates are arbitrary and unenforceable?
As far as I can see this simply looks like the estate agent fees are passed from the vendor to buyer. When looking closer at some of these deals, at best one bid is in place but for the vast majority no bids at all are in place.
Knowing a reservation fee of £5,000 needs to be paid would surely lead to a lower offer to account for this.
In that case who benefits?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|