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Auction rights

Discussion in 'Real Estate' started by Jacque, 13th Feb, 2006.

  1. Jacque

    Jacque Team InvestEd

    16th Jun, 2005
    Contrary to popular belief (and no doubt aided by the proliferation of programmes on TV such as "Hot Property" and "Location Location" etc) did you know that there is no automatic right at law which gives the highest bidder the first right to negotiate with the vendor when a property is passed in at auction? On some occasions this right may be offered by the auctioneer but is always subject to instructions from the vendor.

    I thought this might interest those who thought it was almost law (which it is not) and give renewed hope to those who hold fatter deposit cheques on auction day :)

    Naturally, the real estate agent chases the highest bidder as they believe that he/she is usually the party with the most money, but it doesn't hurt to ask the crowd if someone else wants to enter negotiations as well ...... :D