Our client considered buying a commercial property at auction, for use by their business. Review of the contacts and title revealed that there was a sitting tenant in the property. The tenant had accrued rights over the property. It was a requirement of their loan offer that my client would obtain vacant possession. This was not made clear by the estate agent in advertisements.
Our client, once fully informed of the risks, did not bid at the auction and later sourced an alternative suitable property to purchase.
When a successful bidder buys a property at auction, all terms and conditions are agreed when the hammer drops – in other words, there can be no renegotiation of contracts or terms after the auction, even if the buyer has not seen or taken advice on the legal documentation.
For that reason, if you are considering purchasing a property at auction, among other matters, it is essential, in advance to:
- have your solicitor review the auction conditions (contracts) and the title deeds;
- have a structural survey carried out;
- if you intend to borrow money to finance the purchase, ensure the full loan offer is in place.
If you are considering bidding for a property at auction contact Julie Mullan for more advice, at 01 873 5012 or info@mcgrathmullan.ie
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