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Judy Sharma, Real Estate Pro in Pismo Beach, CA

Does anyone know if one can file a grieving report/complaint against an auction company?

Asked by Judy Sharma, Pismo Beach, CA Wed Jan 12, 2011

Auction company asks the buyer to make a deposit before putting the bid. The buyer is being asked to make a commitment before anything even happens. After winning the bid (per auctioneer who is supposed to be seller's agent), buyer is asked to put earnest money in escrow, yet seller still can say no. If the auctioneer know upfront that reserve has not met, why the buyer has to put money in their bank, before they accept the offer? Why the agency law do not apply in this case? Thanks.

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Answers

7
Unfortunately, many auctions are conducted this way. Buyers sometimes may be able to negotiate on some of those terms, and other times they can't.
1 vote Thank Flag Link Wed Jan 12, 2011
Hi Judy, when you register to bid on an auction site, you agree to the terms of use that are supposed to be read prior to agreeing with them. Once you agree to them, you are subject to them. If you win a bid on a property. ( Auction.com) (REDC) and at the end of the auction you are the highest bidder and the system says SOLD you are the winner even if the reserve price was not met, the seller can wave his reserve and take the highest offer. Than you are once again subject to what you agreed to when you registered and started bidding, concerning when and how much monies are due. So when a person subjects themselves to the terms of use, and begins bidding, they better not be playing around and find themselves in an unwanted situation.
1 vote Thank Flag Link Wed Jan 12, 2011
I really like Tony's answer. A buyer should feel totally protected when it comes to using escrow. If the seller says no then monies would be released from escrow.
0 votes Thank Flag Link Thu Jan 13, 2011
It seems to be you need to see if the auction is defined as real estate activity in the state of CA. If it is, then they are required to follow real estate laws in your state unless they have some kind of exemption.
0 votes Thank Flag Link Wed Jan 12, 2011
I agree with the Attorney General response, nothing against property auctions just they way they've been angled in todays REO / Short Sale world.

We have the REO / Auction company that when you call the number a person in India is your contact, they give basic information to your questions knowing your a licensed agent but I've had clients call and they skirt the practicing real estate law without a license right up to the edge. When you finally track down the broker he understands your concerns and is/will address the problems.

That was a year ago when I called and just the other day another broker stated the same reply from this companies broker, must take awhile to address the issue due to the distance problem.

Just another REO / Short Sale issue we deal with daily!

Hope this helps,

Dave Lowe, Broker
GRI, ePRO

Community and Family Values
Web Reference: http://OrlandoHomeStore.com
0 votes Thank Flag Link Wed Jan 12, 2011
I would call the attorney General of your state and log a complaint. Then, I would go to the real estate commission board that controls them and report it.
0 votes Thank Flag Link Wed Jan 12, 2011
I meant Grievance report.
0 votes Thank Flag Link Wed Jan 12, 2011
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