Can I back out of an auction sale if terms weren't adhered to fully?

[venusasboyo]

Last week I spotted a house for sale post-auction. I was told that I needed to provide a valid AIP. I only had an out of date one and my offer was accepted on the basis that one would be found. To speed up the process, the admin side of things was completed on the Friday and I was expecting to get an AIP on the Monday before the transaction was executed.
On the Monday, it was made clear that there was no chance of getting an AIP but, after trying to pull out, I was told I'd lose my deposit (�4,000) which had been taken from my account that same day. I'm now formulating a complaint but legally I don't know where I stand. I was given no contract at the time, just made to sign, no terms of business, no letter telling me of the complaints procedure and I'm being treated like a complete child despite being assured that a valid AIP was absolutely essential for the offer to be accepted.

Any ideas would be greatly appreciated.

[horseshoes]

What's an AIP?

[sandyRoe]

If you don't complete the sale, for whatever reason, you lose the deposit.

[bushbaby_de]

it's an agreement in principle, which is an indication of how much a mortgage lender may be willing to loan to you.

What I'm confused about is how a house can be for sale 'post auction' and how you say you weren't given a contract but you were made to sign something.

[EvianBaby]

I think that's the whole point of a deposit in most cases.

[The Builder]

Agreement in Principle, Horsey.........

Whenever I've bought post-auction, the auction is OVER. There should surely be no sign of a deposit until contracts are out.
Are you sure this was post auction?

[venusasboyo]

Sorry for not making it clear.... I was told to rush the admin side of things and signed the contract but was given no receipt, no confirmation, nothing. My understanding was that the money would be taken and the whole process kicked into process when I gave the Mortgage Agreement in Principle.

[horseshoes]

Thanks Bushbaby;-)

[horseshoes]

.....and Builder:-)

[The Builder]

Your lawyer would have a heart attack Venus :o(
Contracts need to be exchanged

[venusasboyo]

(p.s. I appreciate anyone's help & I'm kicking myself for being so stupid.)

[The Builder]

OK Venus .......... as they say in the movies........ "lawyer up now"

It all hangs on what you signed up for. What the piece of paper actually said. Whatever, you must get legal advice. At the very least go and see the CAB.
If you are committed to it legally, then at least you'll buy time to get finance sorted.
It does rather sound as though you've signed with a non-refundable deposit.
You must find out.

[venusasboyo]

yeah, 100% post-auction. I was told that they'd hang on until I got the AIP and wait to execute the payment :(

[Eve]

Was going to say the same as my lovely friend The Builder, it depends what you have signed, it hangs on what it said and any terms which attach to it. It could be a conditional contract, conditional on the AIP, in which case it depends what was conditional. It could still mean losing your deposit though depending on the terms.

Get a lawyer urgently in case there is some way out.

[venusasboyo]

Thanks Builder - yeah, all confirmation of what I've read online but the CAB, trading standards etc just seem to give numbers and the advice I get is 'go to a solicitor' which is a nice idea but I'm completely skint. Cheers for your help though.

[The Builder]

There you are Venus .......... Jenna knows about these things ;o)
Please take her advice.
Good luck :o)

[venusasboyo]

Cheers Jenna - really appreciated. I guess I'll just make a case myself and build it up around their contract and hopefully if I end up filing a claim then they'll lose on not following their own procedures. ho hum!

[Eve]

Have you got any legal expenses insurance with your home insurance or similar? Worth checking if you are covered.

See if you can find a lawyer with a free half hour or legal surgery or similar and try and get someone who has contract litigation experience, preferably with property auction experience to see if you can get an idea on your chances of challening it successfully.

Have you got a copy of what you signed? If not it is difficult to advise properly without. Get as much information as you get - everything you signed, additional terms and conditions, copy correspondence, AIP docs, the more you have, the better they can advice. Make a note of all communications, who said what when how etc...

A good lawyer could be key in this - make sure you have a good chance of getting money back before agreeing fees - and although you say you are broke, if they could get your deposit (or even part of it) back then it'd be worth it in the longrun.

[venusasboyo]

Jenna - I seriously appreciate your time spent answering this. I've been through an industrial tribunal before so I'm all up on my record keeping. I've created a complaint letter with 24 points (my request for all documentation to be sent and getting only some of it being one more point - I have the page I've signed and the preceding page, a letter and a copy of their complaints procedure and that's it).
I'll check the home insurance tomorrow, that's excellent.
I feel like such a fool and I've been walking around like a zombie all week but I sincerely got told that the AIP was vital for anything to happen (it even states it on their site!!!)
Again, thanks everyone.