Buying a House at Auction - A Question on Fees.

[Glassman]

Two 'special conditions' stand out:

"The Buyer shall pay to the Seller a contribution towards the Seller’s legal costs in the sum of £1,000 plus VAT".

"The buyer shall pay the seller a fee of six thousand plus value added tax of the purchase price on completion as a contribution towards the sellers costs and administration. No invoice will be provided."

Is this normal when buying a house at an auction? Seems a bit odd that no invoice will be provided. Someone has to be VAT registered, so what's the position here?

[EW109]

Glassman said:

Two 'special conditions' stand out:

"The Buyer shall pay to the Seller a contribution towards the Seller s legal costs in the sum of £1,000 plus VAT".

"The buyer shall pay the seller a fee of six thousand plus value added tax of the purchase price on completion as a contribution towards the sellers costs and administration. No invoice will be provided."

Is this normal when buying a house at an auction? Seems a bit odd that no invoice will be provided. Someone has to be VAT registered, so what's the position here?

The provision that "No invoice will be provided" in the case of a fee subject to VAT seems very odd given the general obligation to provide a VAT invoice.

[LooneyTunes]

EW109 said:

The provision that "No invoice will be provided" in the case of a fee subject to VAT seems very odd given the general obligation to provide a VAT invoice.

Indeed. https://www.gov.uk/hmrc-internal-manuals/vat-trade...

Is this a regular auction or one of the "Modern Method of Auction" jobbies. If the latter, it's not really a proper auction... just a fee stitch up.

[Glassman]

The opening salvo on the legal firm's About Us page:

<legal firm's name> was built to change the way people experience legal services.

[Megaflow]

It seemed a little rich putting those conditions on the sale, but at least they are up front about it, until I got to the part about not providing an invoice, that is a dodgy as...

[Jeremy-75qq8]

I buy at commercial auctions.

About 10% of listings have this sort of " contribution ".

It is usually straightforward. £x towards fees.

I don't see the point of having 2 such payments and. It providing an invoice is odd.

[JoshSm]

Looking at

"The buyer shall pay the seller a fee of six thousand plus value added tax of the purchase price on completion as a contribution towards the sellers costs and administration. No invoice will be provided."

that's been hacked around from something else - the 'of the purchase price' bit makes no sense.

And no invoice? Why?

All looks iffy.

[Countdown]

Glassman said:

Two 'special conditions' stand out:

"The Buyer shall pay to the Seller a contribution towards the Seller s legal costs in the sum of £1,000 plus VAT".

"The buyer shall pay the seller a fee of six thousand plus value added tax of the purchase price on completion as a contribution towards the sellers costs and administration. No invoice will be provided."

Is this normal when buying a house at an auction? Seems a bit odd that no invoice will be provided. Someone has to be VAT registered, so what's the position here?

That is odd.

The seller has to be VAT registered in order to charge VAT in the first place? And (assuming they are) there is literally no cost to them in providing a VAT invoice.

To put it another way - if you ARE VAT registered then provide a VAT invoice, if you're not VAT registered just charge £7,200.