Paid deposit @ auction for apt. Solr cant certify the title, required for the bank!

[Brendan Burgess]

Hi Bronte

That is interesting. I don't remember that post. If you could find it, I would put a link into the Guide to Buying a House at Auction.

Brendan

 

[Bronte]

it took ages to find it and actually it was the inspiration for the key thread.

Vince on 22 March : Bidding at auction w/o mortgage approval

And have a look at Decko on the 8th May vendor reneging on signed contract who bought at auction but there was a problem as both vendor's did not sign.

 

[Brendan Burgess]

Thanks Bronte

Pity getogo didn't ask here beforehand.

I don't think that Decko did anything wrong. he checked out everything and he signed the contract. The only thing he could have done differently was to bring his solicitor to the auction with him which would not be practical, as one probably bids on 10 houses before being successful.

I could add it to the Key Post - "make sure that the other side signs the contract" but I think that would be so rare, it's not worth putting in.

Brendan

 

[cremeegg]

Cremeegg, could you elaborate on what was said/written about the Galway apartments.

The Allsop web site no longer has details of the properties from the previous auction. From memory and filtered through my possibly faulty understanding, there was a warning that The Bank of Scotland charge on the property would be released on sale but there was no assurance that some other charge did not exist.

 

[Bronte]

That's a very good point there Creemeg about other charges particular in the times we are living in with people having debt here there and everywhere. Anyone buying at auction should ensure their solicitor does searches on the day of the auction.

 

[Marita]

People who have to borrow should be very wary of signing a binding contract until they actually have the money's drawn down from the bank.at the moment I would not rely on any loan offer because the banks keep changing their criteria and looking for further valuations and documentation before they release loan cheque.make sure you are not bound to buy unless you are sure of the money.

 

[serotoninsid]

People who have to borrow should be very wary of signing a binding contract until they actually have the money's drawn down from the bank.at the moment I would not rely on any loan offer because the banks keep changing their criteria and looking for further valuations and documentation before they release loan cheque.make sure you are not bound to buy unless you are sure of the money.

Which reinforces the point I made on another 'auction' thread i.e. auctions simply don't those who have to rely on lenders for partial finance. Of course, you may say that all the 'homework' can be done beforehand - but apart from all the hassle, there are costs involved. Also, I'm not sure it's so smart that an auctioneer sees just how committed you are to bidding on the property...

 

[roberthoban]

For those interested in bidding at one of our auctions, or in the auction process in general, please read in full our Guide to Buying at Auction in Ireland.



Regards
Robert Hoban, Director of Auctions, Allsop Sace

 

[Bronte]

Hi Robert and welcome to AAM. If is very good of you to post up that link and I think a welcome development that we are finally having these auctions to clear the market.

Could you clarify please if your firm consulted solicitors in Ireland before your firm wrote those guidelines?

We've been having a couple of interesting debates on AAM about the legalaties of the bidding process which is not at all as clear cut as one might have thought.

 

[Brendan Burgess]

Hi Bronte

I looked at those guidelines and they seem spot on to me. Is there something in there which you think is not correct or open to debate?

Brendan

 

[Bronte]

They had guidelines before are those one's a more updated version? Seem to remember via the UK website on Irish auctions that it was not so comprehensive. Guidelines are excellent very clear and precise.

What is still not clear to me is if your bid is accepted is that the contract or is it when you sign the Memorandium and the sale can only be enforced based on that. As per another poster that property transactions can only happen in writing.

I guess the Memorandium from the way the guidelines are worded is signed by the vendors in advance. In the last auction in April my understanding was that all the properties belonged to the BOSI bank, they had title and that was very clear and would have been sorted out in advance. But for the future, based on one poster on AAM, one would want to make sure that all vendor's have signed the Memorandium.

There is also something interesting in Irish law, the family home protection act. Not sure how but potentially could cause problems.

In relation to searches, Allsop are providing them but one would really need them on the day of sale, presumably one's solicitor will do that. Never know when a judgment could be slapped on properties these days.

In relation to finance, one has 5 weeks to close, not really a problem, but it's no good having the bank saying yes (and having done a valuation etc) you'd want a guarantee that the bank will loan the money and we have heard of people who had loan offers that were withdrawn on the day of sale/transfer. Not sure what a solicitor would have to do to get a guarantee from the bank that the money is in order. It's difficult in a normal sale currently to get that check is my understanding. Hence no doubt the reason the last auction was mostly cash buyers. It would be interesting to know if there were buyers with mortgages and how that went.

Just a few thoughts. In relation to the guidelines, was just wondering if Allsops had taken legal advice from an Irish legal firm.

People purchasing should ask the solicitor how much it costs for initial checking of title etc, and how much if the sale goes through.

Also would love to hear from Gottogo and how he got on.

 

[Brendan Burgess]

But for the future, based on one poster on AAM, one would want to make sure that all vendor's have signed the Memorandium.

That was not an Allsop's auction. In fact, it was not even an auction. The property was withdrawn at auction and sold by private treaty afterwards.

What is still not clear to me is if your bid is accepted is that the contract or is it when you sign the Memorandium and the sale can only be enforced based on that.

MF1 has clarified that when the hammer comes down, the auctioneer is entitled to bind both vendor and purchaser. There really is no issue here. If you bid at an auction and Mr Allsop announces sold, you are obliged to buy and the seller is obliged to sell.

There is also something interesting in Irish law, the family home protection act

There are many interesting things in Irish law which may affect the sale of a house. But that is where your solicitor comes in. If your solicitor feels that there is a risk that someone else may have a claim to the house, then she will advise you not to buy it. Where there is a dispute over ownership, the vendor's solicitor would presumably not sell the property until the dispute was resolved.

In relation to searches, Allsop are providing them but one would really need them on the day of sale, presumably one's solicitor will do that. Never know when a judgment could be slapped on properties these days.

That is a good question.