RFR Right of First Refusal Auction

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    Originally posted by flyingfreehold View Post
    If the section 5b notice is invalid the seller may pull the sale to avoid the risk of a prosecution; the auctioneer will generally refuse to auction if it is shown to them that the notices is void
    Technically the prosecution would be for a criminal offence - the prosecution would be brought by the Local Authority - although I suspect as funds are very limited, and it's not a flagrant attempt to ignore the section 5 laws and as far as I am aware there have been no prosecutions under the Act it would be highly unlikely the freeholder would be prosecuted - the Act gives a remedy to assist the injured party, which rather makes the time and cost of a criminal prosecution very unlikely - which is what you may be proposing if the sale goes ahead

    So as flying freehold states the auctioneer would unless supported by a legal opinion of some standing, withdraw the property from the auction


      Quick update and a caution about RFR which is a very cumbersome procedure. We managed to serve a robust 5b with signatures from all qualifying tenants which landed on the desk of the serving solicitor with four days to spare.

      We wasted a good three to four weeks speaking to the houses who still believe they have an RFR (which they don't), an 'investor' from this forum whose offer quickly changed from a win-win to a win-lose for us. But more importantly, we faffed about chasing qualifying tenants for almost two months, who for a plethora of ridiculous reasons avoided communicating with us, only to come alive, collectively offering double the auction reserve/guide price with 7 days left to submit the section 6 acceptance notice.

      My recommendation is, forget the circulars, emails, texts, phone calls. Instead, bang on qualifying tenant's doors whether they live on or off-site and clearly and enthusiastically explain your plans, but more importantly, keep it simple so you get your most wanted response. And do it early within the two-month period to avoid unnecessary stress.

      Having saved £2k on legal costs so far we're now negotiating via a solicitor and have various contingencies mapped out should it reach auction and beyond.

      Thanks all for your input.


        Further update. Today we have received notice from the serving solicitor that their 5B was invalid and they will be severing the flats from the houses. Amount spent £13.50 on postage. Amount saved £2k plus. Result!


          Good result . Well done .


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