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Modern Auction

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Just saw a house advertised on Rightmove. It needed modernising, but seemed quite cheap.It was being sold by way of a "Modern Auction". All it said in the ad was that the buyer paid a reservation fee upfront after the price had been agreed.The buyer then has 56 days to complete.After digging around, i discovered that the fee was £5k, and was non refundable. Also, it did not form part of the purchase price. Why would anyone risk this sort of money dealing with a bunch of crooks like EA`s?

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Just saw a house advertised on Rightmove. It needed modernising, but seemed quite cheap.It was being sold by way of a "Modern Auction". All it said in the ad was that the buyer paid a reservation fee upfront after the price had been agreed.The buyer then has 56 days to complete.After digging around, i discovered that the fee was £5k, and was non refundable. Also, it did not form part of the purchase price. Why would anyone risk this sort of money dealing with a bunch of crooks like EA`s?

Wow, I wouldn't and I would tell the EA to get on his bike. Seems that there are people out there who are that desperate though. Have you any figures for how many people EA's are getting to sign up for this sort of thing?

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Wow, I wouldn't and I would tell the EA to get on his bike. Seems that there are people out there who are that desperate though. Have you any figures for how many people EA's are getting to sign up for this sort of thing?

This is pretty standard for property auctions. You agree a price and pay a non-refundable deposit of 10%. You then have to complete within a set period of time, or forfeit the deposit.

In this case, it appears to be a flat fee deposit, rather than a percentage, probably to stop the fees getting unmanageably large.

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Just saw a house advertised on Rightmove. It needed modernising, but seemed quite cheap.It was being sold by way of a "Modern Auction". All it said in the ad was that the buyer paid a reservation fee upfront after the price had been agreed.The buyer then has 56 days to complete.After digging around, i discovered that the fee was £5k, and was non refundable. Also, it did not form part of the purchase price. Why would anyone risk this sort of money dealing with a bunch of crooks like EA`s?

have you got the Rightmove link for this?

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With a real auction you'd be able to get the property legal pack to your solicitor first for checking over to ensure there's nothing to delay it.

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full text. Dont think its a deposit, just a huge Estate agent fee.

http://pygottandcrone.iam-sold.co.uk/properties/8f02406af99846219cfa2e75ef73a0d7.html

This property is for sale by the Modern Method of Auction which is not to be confused with traditional auction. The Modern Method of Auction is a flexible buyer friendly method of purchase. We do not require the purchaser to exchange contracts immediately, but grant 28 days to achieve exchange of contracts from the date the buyer’s solicitor is in receipt of the draft contracts and a further 28 days thereafter to complete. Allowing the additional time to exchange on the property means interested parties can proceed with traditional residential finance. Upon close of a successful auction or if the vendor accepts an offer during the auction, the buyer will be required to put down a non-refundable reservation fee of 3.5% subject to a minimum of £5,000 plus VAT which secures the transaction and takes the property off the market. The buyer will be required to sign an Acknowledgment of Reservation form to confirm acceptance of terms prior to solicitors being instructed. Copies of the Reservation from and all terms and conditions can be found in the Legal Pack which can be downloaded for free from the auction section of our website or requested from our Auction Department. Please note this property is subject to an undisclosed reserve price. Terms and conditions apply to the Modern Method of Auction, which is operated by The Great North Property Auction powered by iam-sold Ltd

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