Auctions - Rights And Liabilities Of Buyer And Seller

In an unconditional sale, title passes to the bidder when the auctioneer's hammer falls. If conditions exist, title passes upon their fulfillment or through their waiver, the intentional relinquishment of a known right. The bidder is ordinarily entitled to possession when he or she pays the amount bid.

A person who bids on behalf of another is personally liable for the bid unless the person discloses this relationship to the auctioneer.

Fraud, or a MISREPRESENTATION of a material fact on which the buyer detrimentally relied, or the seller's failure to provide good title furnishes a basis for setting aside the sale.

The seller has a lien, a security interest, on the property until the price is paid. If the purchaser fails to comply with the conditions of a sale, the seller can regard the sale as abandoned and sue for damages. Where a resale occurs, and the price is lower than the contract price, the defaulting buyer in some jurisdictions is liable to the seller for the difference between what he or she had agreed to pay and what the seller received on the resale. In general, whether a deposit or a partial payment must be repaid depends upon which party was responsible for the uncompleted sale. If the buyer is responsible, he or she cannot recover either the deposit or partial payment.