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Absolute Auction

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station180

Junior Member
What is the name of your state (only U.S. law)? North Carolina
Over the weekend I sold a property at absolute auction. In the middle of the auction my brother annouced there was a problem with the septic tank I wasnt aware of. Myself and my brother and sister arent speaking because they are mad they didnt inherit the house. After the auctioneer found out about the problem with the septic tank he called me and asked if I was aware of it and I told him no. he said the high bidder not a family member had retracted his bid. He said this was going to hurt the sale of the property and advised we would probably be better off to cancel the auction until we resolved the septic issue. I agreed and told him to do that. He said ok. He called back 30 minutes later and said he sold it to my cousin at the retracted bidders price. He said he had to do that and the earlier phone conversation was just to fake out the bidders! Also before the auction he informed me of all the perspective buyers to look at the property and thier names except my brother and sister. He knew there were family issues. Dp I have a case? Do I have to sign the deed? I was advised by a couple local lawyers not to. Does the phone conversation over ride the original contract.
 
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FlyingRon

Senior Member
You need to get a lawyer involved.

Generally you don't get to just cancel an absolute auction just because you don't like the way it's progressing. However, you also don't have people inappropriately tampering with the auction. I'd be concerned that the brother and the cousin might have been in cahoots.

Anyhow, you'll have to decide whether to fight this or whether you'll just accept the way things ended up. I'm hoping there aren't any underbidders who are going to protest the fraud/collusion and insist their bid be honored.
 

station180

Junior Member
You need to get a lawyer involved.

Generally you don't get to just cancel an absolute auction just because you don't like the way it's progressing. However, you also don't have people inappropriately tampering with the auction. I'd be concerned that the brother and the cousin might have been in cahoots.

Anyhow, you'll have to decide whether to fight this or whether you'll just accept the way things ended up. I'm hoping there aren't any underbidders who are going to protest the fraud/collusion and insist their bid be honored.
Station180
the auctioneer just told me today that my brother and sister came to the property 3 times each and brought over people to inspect it. He never told me this until today. I find this odd because every other person who looked at the property he called me and told me the persons name where they were from and if they appeared interested. I had already informed him my brother and sister were upset because they didnt inherit the land. Why would he inform me about all these people I dont know looking but leave out the fact that my brother and sister had been 3 times each? This guy is a thief in my book.
 

Zigner

Senior Member, Non-Attorney
Station180
the auctioneer just told me today that my brother and sister came to the property 3 times each and brought over people to inspect it. He never told me this until today. I find this odd because every other person who looked at the property he called me and told me the persons name where they were from and if they appeared interested. I had already informed him my brother and sister were upset because they didnt inherit the land. Why would he inform me about all these people I dont know looking but leave out the fact that my brother and sister had been 3 times each? This guy is a thief in my book.
So, there was a high bid that the house WOULD have sold at but it got retracted. Then, cousin paid the EXACT SAME AMOUNT, right?

Where's the problem?
 

FarmerJ

Senior Member
What does the local county have the house set at for a market value for property tax purposes and how close was the high bid to that number ? If it was with in 70 to 80 % of what the county tax office set its market value to then considering how things are everywhere maybe there wouldnt have been much more to get out of it. BTW have you had the septic system inspected and a report produced that either verifys there is or isnt a problem ?
 

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