I bid on a property in an auction without doing due diligence but the bidding did not meet the reserve price. The auctioneer then contacted me to ask if I wanted to make a post auction on the property.
During the email conversation, I stated that my maximum offer would be £41,000 but did not make a formal offer. Instead, I started to ask questions about the property. The property had a tenant in situ and having made the error of bidding without doing proper due diligence, I felt I now had the opportunity to make any enquiries/ask questions before deciding whether to make a formal offer or not.
However, after emailing my first questions, the auctioneer replied within an hour as follows:
“We have sent over your questions to the vendor so we will hopefully get the answers back to you shortly 
.
In the meantime I am delighted to advise that your offer of £41,000 has been accepted. Congratulations ! “
I was bewildered and in a state of panic as I assumed I was bound by auction T&C’s and obligated to go ahead with the purchase. Foolishly, I then paid the deposit and Buyer Premium and completed 28 days later paying cash.
Three days after paying the deposit, (and prior to exchange of contracts) I did email my concerns at how it was handled to the auctioneer but was basically fobbed off. However, when I pursued this after exchange of contracts, I was then told I could have pulled out prior to exchange of contracts as it was a post auction offer.
I am now in the situation where I own the property. There is an AST in place until 21/12/2024. I do not have any keys to the property. I have contacted the agency named on the contract but they have not replied to my emails. The auctioneers gave me another agency to contact but, again, they do not respond to me. The auctioneers also gave me a number of the tenant, but this just goes to voicemail and is ignored.
I have not received any rent.
I would appreciate any advice on this matter.
Have you responded to let them know that you haven’t made a formal offer yet, but was just exploring options?
what happens if you knock on the door of the property?
The property looks to have already been bought and paid for.
Could be a bad situation to be in if during the buying process no one has raised the question of the tenant who is in occupation of the property and the relevant paperwork relating to the tenancy agreement.
I’m surprised the solicitor handling the purchase hasn’t looked into this.
This is an unusual situation indeed.
Given that you have completed on the property, I personally can’t see how you will be able to back out of the purchase. It could be that you only meant the offer to be an offer, but having gone all the way through purchasing the property including paying cash, I can’t see how you could backtrack from there.
In terms of the rent, did you write to the tenant at the address, sent by recorded delivery, to introduce yourself as their new landlord and state that all rent is to be paid directly to you? Giving payment and multiple contact details.
Finding out if there is a deposit, and where (if anywhere) the deposit is being protected is going to be another nightmare. As will be obtaining a copy of the tenancy agreement, working out the status of gas and electricity safety certificates.
It seems that it’s vital to get in contact with the tenant. And to hope they are a tenant and not a squatter. But, I think it’s better to do so in writing rather than knocking on the door. At least at first. Have you tried a drive-past at night to see if lights are on? If visible from the street.
If you have a decent tenant, then they may be equally concerned at the situation, and keen to work with you. But, I’m quite concerned at how eager the seller was to sell to you.
(Some suggestions deleted because they may work for houses, but not flats).
I think you have now stitched yourself up having paid the monies. You have to go there and keep knocking on the door
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