Case Studies
These case studies are taken from events that have actually happened.
The first case involves a couple that wanted to buy a property at auction in Bristol under the current house buying and selling procedure.
The second case involves the sale of a property at auction in Shropshire using the Spring system.
Case Study 1
Existing Process
Mr and Mrs T contacted their solicitor to advise him that they wanted to buy a property at auction in Bristol.
The solicitor arranged for the auction pack to be forwarded to him and advised Mr & Mrs T that before they should proceed to bid at auction that they should have a full building survey undertaken on the property in view of its age nature and character.
Mr & Mrs T had a survey of the property carried out. The results proved positive and they paid the surveyors bill of £750.00 plus vat.
The solicitor reported on the auction papers and advised that the property was 'good and marketable' and that it was safe to proceed to bid at the auction.
The auction took place Mr & Mrs T were 1 of 10 bidders on the night. They were unsuccessful.
It transpired that of the 10 bidders that 10 of them had instructed separate solicitors to prepare reports on the papers and 9 of them had arranged their own independent surveys.
Only the successful bidder benefited from the reports that he had received the other 9 bidders had to pay for something they did not receive.
The 'wasted' costs to these 9 parties ranged from £1,000.00 to £1500.00. In total some £11,000.00
Case Study 2
Spring Process
Mrs G, the executrix of her late mothers estate, approached her solicitor to sell the family home at auction.
The solicitors approached Spring to prepare a Spring Property Information Pack (SPIP) on the property.
Instructions were given to Independent surveyors and solicitors to report on the property in readiness for the auction.
The survey report (which included a valuation of the property) and the solicitors report was provided confirming the property was 'good and marketable'.
The SPIP, which was made available to all prospective buyers, comprised:
- 1. The survey report (including valuation)
- 2. The solicitors report
- 3. All relevant searches applicable to the property
- 4. Replies to all enquires which were appropriate to the age nature location and condition of the property
- 5. Guarantees and certificates
No surveys were undertaken by prospective bidders.
One bidder asked his solicitor to look at the SPIP. The solicitor telephoned us to compliment us on the SPIP and to tell us that she had sent the client away, without charge, as there was nothing that she could reasonably be expected to advise the client upon, as all possible information was contained in the SPIP.
At the auction there were a number of bidders. Mr Reynolds was successful in the purchase.
He paid more than the valuation ascribed by the surveyor and paid for the preparation of the pack.
The other bidders, whilst disappointed that they had not been successful, were nonetheless pleased that they had not incurred any costs in the process.