Diary of a High Street Conveyancer – A cautionary tale about modern method of auction
Summary
The article describes concerns about the Modern Method of Auction, focusing on a case where a buyer paid a reservation fee only to discover the property was unmortgageable due to severe structural issues. The author argues that estate agents and auction houses should be more transparent about known risks, including prior failed sales and reasons transactions did not complete.
Why it matters
For residential property surveyors, the piece highlights how hidden defects and mortgageability issues can emerge late in the transaction process, creating risk for buyers and lenders. It also underscores the importance of identifying and communicating structural concerns clearly, especially where auction sales may limit a buyer’s ability to withdraw without financial loss.
Key points
- Modern Method of Auction can expose buyers to reservation fee losses if finance falls through.
- Severe structural issues may not be apparent from the contract pack or searches.
- A lender’s valuation can reveal a property is unmortgageable.
- The author says estate agents knew of prior failed sales due to mortgage problems.
- Calls for greater transparency from estate agents and auction houses.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
