Auction Fliping ?

[thepeoplesagent]

Should have signed the buyer up, took their deposit and if they didn't get FIRB approval then tough titties to them.

Funny… I was talking about this on another thread, more specifically the other side of the story.

I would love to see everyone’s reaction if the agent was to willingly take 10% from a buyer when they knew they couldn’t settle. Imagine if you were the buyer. I wonder how you would react if the agent told you “tough titties”.

I think I speak on behalf of all agents when I say we would prefer a settlement then a risky exchange. The vendor gets the deposit not the agent, so there is nothing to gain besides from months of litigation and negative speculation, such, which has already happened on this thread.

If this story is true, and at this point I have no good reason to believe its not; The agent has done the right thing. He has saved an apparent confused buyer $39,000 and dodged months and months of the property being stuck in limbo through litigation. And at the end of the day he achieved a higher price.

The only negative aspect I can say is that the agent didn’t qualify the buyer prior to auction. But, I don’t know the full story. The buyer could have shown up on the day and never contacted the agent directly. The buyer could have lied and there are probably another 10 scenarios in which the agent could not know about the required FIRB approval.

 

[Peterw]

I should not be surprised by the negative comments to Jeff's offer to provide additional information. He only did so, because I brought this thread to his attention. In my mind, people dont usually offer a fib, as an explanation, but I do know that I cannot control what people then choose to think.

I am so sorry, as I thought that giving more information/explanation would assist.

 

[Scott No Mates]

Thanks for clarifying Peter. Technically, the auctioneer was correct in pulling the contract from the purchaser as they would have breached their duty by binding the vendor into an unenforceable contract (to the extent that the purchaser would not be able to complete in accordance with FIRB requirements).

The only negative aspect I can say is that the agent didn’t qualify the buyer prior to auction. But, I don’t know the full story. The buyer could have shown up on the day and never contacted the agent directly. The buyer could have lied and there are probably another 10 scenarios in which the agent could not know about the required FIRB approval.

That was the point that I was going to make - but I am surprised that the vendor's solicitor wouldn't have held the buyer as liable for their 'loss' should the property sell for less than that at the fall of the hammer.

Link to FIRB