Bidding on an formal tender

[ladybird49]

I am asking for a family relative here, not for myself
If the said person put in a formal tender on a propery and won the bid but didnt have the immediate funds to pay ( their own house not sold yet )
what repercussions could / would they face ?
Thanks

[Barmaid]

Potential for breach of contract, since it is normal that on an informal tender they will pay a deposit and then complete within X days. If the Standard Conditions of Sale apply, they could be looking at damages and or interest. If "Time was of the essence" (normal in informal bids) the damages could be substantial. Jenna1978 is the best person to advise since she deals with property and also Buildersmate. Probably best to repost in law.

[stokemaveric]

well thats a bit like going to tesco piling your shopping trolley up with £500.00 worth of goods and going to the checkout without any money..he/she shouldnt have put in a tender if they didnt have the funds to carry out the transaction...who knows what the repercussions will be...but i bet the seller and the legal team who is dealing with sale wont be a happy camp...

[karlyau]

Question is have they? .. or do they want to?

Actually, if it is like an auction (it may not be) they would have to pay a deposit - e.g. 10% up front, andthe remainder within a set time period - e.g. 28 days

[ladybird49]

They havent done it as yet , yes its 10% upfront and the remainder in 28 days - i said not to

[karlyau]

Have they got an offer on their house yet? How much are they borrowing? - If it is too good to miss, they could get a bridging loan - but they would need to be 100% sure of the finances. We looked into bridging loans (didnt need one in the end), they can be very good things, but could be disastrous if things went wrong.
I wouldnt recommend it, but if the opportunity is genuinely too good to miss (and very few things are), and they are certain of selling their house, it might be an avenue worth pursuing

[joggerjayne]

you have to comply with contract terms.

pay deposit by due date

pay balance by due date.

danger is ... if cant pay balance, may be served with "notice to complete"

If still fail to complete, may lose property and forfeit deposit.

[ladybird49]

Thanks all for answers , il be passing all this on x