top of page
Writer's pictureMike Brandly, Auctioneer

Absolute … and the auctioneer can do what?

I’m registered for a real property absolute auction which means the seller has the “genuine intent to transfer to the highest bidder regardless of price.” This buyer would, of course, need to be properly registered with all other bidders bound equally to these same terms and conditions.

Yet, I read in the terms and conditions that the auctioneer has the right to accept or reject any and all bids/offers. How can that be? If I’m properly registered and my offer is the highest offer, isn’t the auctioneer bound to sell the property to me?

Apparently not, I guess, since the auctioneer has reserved the right to reject my bid. Let’s ask this … can the terms and conditions have (irreconcilable) conflicting terms and conditions? It would appear here selling to the highest [registered] bidder — but maybe not — is one such example.

Then as somewhat expected I read more of the extensive terms and conditions, and the auctioneer is disclaiming any and all representations or warranties as to the accuracy or completeness of any information contained online on the website or any other printed or announced information.

Given this additional information, maybe the auction is not really absolute? Maybe I need to register or maybe not? Maybe the auctioneer does — or doesn’t — reserve the right to accept or reject any bids? Could it be the subject property is actually some other property in another state?

Here are some of our counter-conclusions concerning the above:

I know you probably didn’t write your own terms and conditions and either are using someone else’s or your attorney wrote them. Yet, this type of irreconcilable nonsense puts you at considerable risk. For one, could your terms and conditions be so convoluted they are essentially completely unenforceable?

Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at Mike Brandly, Auctioneer, Brandly Real Estate & Auction, and formerly at Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, and an Instructor at the National Auction Association’s Designation Academy and Western College of Auctioneering. He has served as faculty at the Certified Auctioneers Institute held at Indiana University and is approved by The Supreme Court of Ohio for attorney education.

2 views0 comments

Comments


bottom of page