Posted by: Antoinette Greeff | 2015/10/28 18:23
Bidder bid on the day of the auction due to his pre auction offer and after it went to him as the only bidder at the reserve price on the day of the auction he defaulted on payment. No higher bidders, but he defaulted in paying the deposit and could'nt get any approved bond. Is the seller free from the agreement with this bidder and the estate agent?. Can she cancel her sole mandate and agreement with the estate agent due to non performance and default of payment? The time period lapsed in which the bidder had to come up with the payment of the deposit. He pays the estate agents commission and is the seller free to get out of the contract, as extensive marketing was done by the estate agents and there was no serious bidders above the reserve price and no boards up ahead of the auction that could be seen anywhere, it was speculated by the auctioneer and agent that the boards were stolen, which is a long shot. In this case it seems that the agreement beforehand was made with the bidder in question as a probable sale but the seller is not in the province and has no proof that there was any boards up only on the day of the auction the banners was up and directions poorly. I am the eyewitness as i stay in close proximity to the property and area. Should the seller pay for the marketing in such a case or should all the costs be legally ask from the defaulter in this case the bidder that didnt come up with the money
Posted by: Carol Reynolds | 2015/10/29 06:48
It would be best for the seller to take a copy of the sale agreement to an attorney to assess the validity and enforceability thereof. Without seeing the contract, I can only advise as follows: it would appear that the purchaser is in default and did not meet the conditions of the contract. Based on the above, if there was a deposit paid by the Purchaser, this deposit could be held by the parties as liquidated damages. These damages could be shared between the seller and the agent involved. It is also difficult to comment on the terms of the mandate between the seller and the agent without seeing a copy of same. The terms of the mandate will determine which party is liable for which costs. Thank you.
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