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Agent wants 10% deposit into trust account before accepting remote auction bidding

Discussion in 'The Buying & Selling Process' started by HappyCamper, 29th Sep, 2015.

  1. HappyCamper

    HappyCamper Active Member

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    So I've bought a couple of times at auction without physically being there. Agents were happy for me to send a bank cheque / EFT on the next business day. Smooth as.

    Anyway, I'm wanting to bid remotely at the auction of a house I've seen. Established Melbourne franchise, etc etc. I've spent some money flying in to inspect, do building/pest, etc. The answer I get is that they want me to deposit 10% into their trust account before they'll let me remotely bid at the auction, to be refunded if I am unsuccessful. Long argument with the principal on the phone and they won't budge.

    Has anyone heard of such a thing? I want the house. It's the first that's tickled my fancy in this area after months of watching. At this stage, I'm thinking I'm just going to have to take a day off and fly down for the auction.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    They don't know you from Adam. What's your 10% vs theirs?

    Will they accept a taken 1%?
     
  3. HappyCamper

    HappyCamper Active Member

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    I would argue that they don't know any of the bidders either.

    Not sure I understand your question about my 10% vs theirs?
     
  4. Simon L

    Simon L Investment Property Buyers Agent Business Member

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  5. HappyCamper

    HappyCamper Active Member

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    This one isn't a bank sale. The agent just indicated it was company policy.

    I dunno, it just rang alarm bells for me.

    I'm sure the agent would tell me to piss off too if I were to ask for a $50k deposit for a 3 month exclusive listing.
     
  6. Greyghost

    Greyghost Well-Known Member

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    Well if you want to bid I guess you are going to have to cough it up..
     
  7. TMNT

    TMNT Well-Known Member

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    ive done it before too, and yeah they dont budge,

    sometimes its an agency poilicy someimtes its a bank policy,

    I usually just express post a personal cheque, and tell them to rip it up if im not successful
     
  8. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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    Not recommended. It would be reasonable to pay $1,000 beforehand, which is to be returned to you if you are unsuccessful. A gesture of good will and good faith. Far less likely that either party will do something dodgy.
     
    Esh and HappyCamper like this.
  9. S.T

    S.T Well-Known Member

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    I'm not selling anything
  10. Biz

    Biz Well-Known Member

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    Tell them to stick their auction up their bum.
     
  11. ej89

    ej89 Well-Known Member

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    Just send them a 5k cheque and get everything in writing so you can definitely get it back..
     
  12. HappyCamper

    HappyCamper Active Member

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    Thanks for the replies everyone. I wanted this one, so ended up flying down for the auction. Sure as hell wasn't going to be depositing $50k in their account. They wouldn't budge on anything less. Anyway, it turned out they had a heap of interest and the house went for over the odds. Seems like this is the way it works in Melbourne, although another agent for another house seemed ok with a token $1k. Bought in Sydney and Adelaide without the need for a pre-auction deposit.