Auctioneer vs. Realtor

[BTA]

What is the name of your state? VA
I am a licensed auctioneer and was contracted to sell a condo at auction.
A realtor showed up for the auction and during the pre-auction annoucements/questions she stated to the bidders that they may not be able to occupy the condo or legally purchase it unless approved by the condo board of directors.
All "house rules" including board approval had been made available to the bidders prior to the auction at two open houses. Further, she stated directly to me that "you have no right to auction this property".
This statement caused two of the six bidders to leave and had a chilling effect on the sale.
As it turns out, she is a resident of the complex and was upset that she wasn't asked to list the property for sale.
Lawsuit or board complaint? Seller (on his own behalf) is headed to court.

 

[Zigner]

Was the condo sold?

 

[BTA]

No.
We got a bid just below the reserve price but the seller wouldn't take it.

 

[Zigner]

I honestly don't see any damages. You don't have any way to prove that anyone would have made a bid that would have been acceptable to the seller.

 

[nextwife]

I honestly don't see any damages. You don't have any way to prove that anyone would have made a bid that would have been acceptable to the seller.

You mean acceptable to the board?

If the condo rules/declaration requires board approval BEFORE a party can BUY a unit, then the board must approve the buyer PRIOR to the conveyance occurring. Was this the case? Was the sale process done in compliance with the condo regs?

 

[Zigner]

You mean acceptable to the board?

If the condo rules/declaration requires board approval BEFORE a party can BUY a unit, then the board must approve the buyer PRIOR to the conveyance occurring. Was this the case? Was the sale process done in compliance with the condo regs?

The OP seems to be trying to find a way to sue over this situation. My statement is that (IMO) he has no provable damages...

 

[FlyingRon]

I'd certainly complain to the NAR (cerntainly a violation of their code) and potentially the local board.

 

[lcannister]

I'd certainly complain to the NAR (cerntainly a violation of their code) and potentially the local board.

What for, for informing others of the potential risk of going further with the auction without benefit of full knowledge of what the board might or might not accept or require?

Was the agent working in her capacity as an agent at this auction or just an interested party?

 

[FlyingRon]

What for, for informing others of the potential risk of going further with the auction without benefit of full knowledge of what the board might or might not accept or require?

Was the agent working in her capacity as an agent at this auction or just an interested party?

If she represented herself as a Realtor, she should behave according to their code of ethics which would include disclosing that they had a pecuniary interest in the property sale that the were interfering with. Probably some more issues as well.

It was clear that she wasn't acting in anybodies interest but her own, yet she made it appear as if she was.

 

[nextwife]

If she represented herself as a Realtor, she should behave according to their code of ethics which would include disclosing that they had a pecuniary interest in the property sale that the were interfering with. Probably some more issues as well.

It was clear that she wasn't acting in anybodies interest but her own, yet she made it appear as if she was.

And has it been established that the sale was, in fact, being done in accordance with association regs?


What financial ownership or mortgage holder interest in the property did she not disclose she had?

 

[BTA]

Auctioneer vs. Realtor

Here are the answers to the questions asked.
The realtor told other residents prior to the sale several things regarding the auction; that she would "take care" of the transaction; that we (the auction company) had agreed on a minimum price (which is not accurate); that she would not allow us to advertise the sale.
Regarding board approval, all prospective bidders were shown the application process. The condo board has never turned down an owner/buyer in it's 24 year history.
No one that I spoke with had a problem with the board process and understood the process prior to the sale; we make sure such items are well covered.
Was the agent working as an agent? Yes she was. She had two units listed at the time of the auction and, according to the minutes of the owners meeting was going to try to prevent an auction from taking place because of the "stigma" that would follow. Her broker has called to apologize after he received calls from other owners.
Also, as a final twist, during the auction, she sent her husband out to remove our lead in signs as well as that of an ERA agent who was conducting an open house. The ERA agent has also filed a complaint.
I don't want to get into a battle with realtors, I just want them to not interfear with my auctions.

 

[BTA]

Auctioneer vs Realtor

Forgot two responses.
The condo rules do not address when the buyer must be approved. In checking the last two sales, the other units closed prior to board approval.
The condo association rules and the house rules do not address auction sales. Prior to taking this contract, I called the association president and told her that we had been retained to conduct the sale. She didn't raise any concerns.