Q&As

On a sale by auction of commercial property using RICS Common Auction Condition 3rd Edition, a special condition requires the buyer to reimburse the seller for the cost of pre-exchange searches undertaken in respect of the property. However, the buyer's solicitor has refused to pay these costs on the ground that the amount of the cost incurred was not included on the front page of the auction. Are there grounds for the buyer to not pay?

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Last updated on 15/10/2021

The following Property Q&A provides comprehensive and up to date legal information covering:

  • On a sale by auction of commercial property using RICS Common Auction Condition 3rd Edition, a special condition requires the buyer to reimburse the seller for the cost of pre-exchange searches undertaken in respect of the property. However, the buyer's solicitor has refused to pay these costs on the ground that the amount of the cost incurred was not included on the front page of the auction. Are there grounds for the buyer to not pay?

On a sale by auction of commercial property using RICS Common Auction Condition 3rd Edition, a special condition requires the buyer to reimburse the seller for the cost of pre-exchange searches undertaken in respect of the property. However, the buyer's solicitor has refused to pay these costs on the ground that the amount of the cost incurred was not included on the front page of the auction. Are there grounds for the buyer to not pay?

It is common for property sold at auction to be subject to the RICS Common Auction Conditions (now on the 4th Edition). These are standard contractual terms, and make clear that the general conditions apply to the contract except to the extent that it is varied by special conditions or by an addendum. By condition G1.9, the buyer buys with full knowledge of the documents, whether or not the buyer has read them. This includes the terms of sale.

It is also common that additional fees and costs in addition to the sale price may have to be paid by the successful buyer.

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Key definition:
Auction definition
What does Auction mean?

The method used by a central bank (eg Bank of England) to issue government bonds (gilts).

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