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TODAY'S OTHER NEWS

‘Replacement for private treaty sales’ offered by online auctioneer

The Network Auctions ‘E” online property platform, used by an estimated 100 agents, has been revamped with vendors now offered three sale options.

The platform says it now offers Auction, Buy it Now or Make an Offer options, and in all cases, the seller provides a legal pack in advance of the sale. 

The only monies paid on successful purchasing are the reservation deposit, all of which is in part payment for the property, the company says.

It describes Make an Offer as “a direct replacement for private treaty” and beforehand a buyer needs to have signed online terms, provided ID and pre-authorised a credit card payment of £2,000. 

The terms confirm the ‘exclusivity period’, usually four weeks, and once the offer is accepted this period commences. According to the firm this period “gives the buyer time to sort their finances, the rest of the deposit and the legal arrangements.”

Network ‘E’ director Toby Limbrick says his firm was the fifth largest online auction company in 2018 and adds: “Our method of sale works in all markets and across all price ranges. We act for the seller and so we don’t believe in charging unnecessary fees like many of our competitors.”

He continues: “These new buying options allow people the security to buy property but they don’t have to adhere to the strict timeframes of the auction room. People are fed up with the amount of time it takes to get a sale through, plus the fall-through rate is high with industry statistics showing almost one in three deals don’t complete.

“We took the commercial decision to lower any barriers to entry and so have scrapped all buyers’ fees.”

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    At last a new entrant who is making the buyer's premium part of the purchase price for the property!

    If the FULL legal pack is available when the seller makes his/her offer, as it is with traditional auctions, then this is a great and positive step forward. If it is not a full pack, then there's not much point in the model.

    This is still a private treaty transaction by legal definition and to suggest otherwise is leaving yourself open to litigation if something goes wrong.

  • Toby Limbrick

    Richard,
    Our terms of business require all sellers to provide a full legal pack including searches in advance of the point of sale. It means buyers can undertake full due diligence before committing and once they do commit their focus is on securing finance.
    The buyers deposit goes 100% towards the purchase of the property, we don't charge the buyer a fee. Our commission is paid by the seller who remains our client throughout the process. If the buyer defaults their deposit is forfeit, if the seller defaults the deposit is returned.
    You can find out more about the process here - networkauctions.eigonlineauctions.com

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