Re: Real Estate & Foreclosure
 

There may be many valid reasons for auctions being a bit iffy anywhere in the world but I am amazed at that one. As long as the contract complies with the Statute of Frauds, in that it is in writing, there is no real reason why sales by auction are iffy.

The handing over of a deposit is very thin. It is an auction, why does one need a deposit? You contract to buy, you pay, the property is yours, (the lawyer sorts out the transfer) no need for a deposit:thumbsup:

Re: Real Estate & Foreclosure
 

I would assume that if you bid successfully at auction, you have x number of days to come up with the goods or you can get sued. No idea how this works really, but I thought bidding at auction was legally binding in some way.

Re: Real Estate & Foreclosure
 

In England an auction for anything other than land is binding when the gavel hits the deck. For land deals the contract must be in writing. That is why Sold Subject to Contract is banded about by Estate Agents, it isn't legally binding until it is in writing. Any other contract is legally binding the minute an offer is unconditionally accepted for sufficient consideration with an intention to create legal relations. I'll buy your car for £20 would be binding the minute the seller says "done" providing the offerer was not a relative!

The same applies in Canada, it's the written part that's an issue. I would imagine that very shortly after the deal is done by the auctioneer, the terms would be reduced to writing and then it's binding.

Time being of the essence is something that can cause a headache with all contracts.

Re: Real Estate & Foreclosure
 

We've just had a long list of Property Tax auctions listed in the local paper - because the owners are way behind on their dues.

The auction takes place at 2pm at the City Centre forecourt at 2pm on Saturday anad no doubt the owners either are shamed into paying their taxes, interest and fines or losr their houdses on the day. There are a few really 'posh' houses too along with the usual houses and townhouses in nice areas.

I find this very unusual so I would be interested how it works and IF it works here. A question for MB-realtor perhaps (or someone who is way behind on their property taxes!)

Re: Real Estate & Foreclosure
 

In MB the auctioneer can only conduct the auction, the actual contract must be written by a Real Estate Broker or by a Lawyer, and monies to be paid on the day of auction must be dealt with by a Broker/Lawyer and paid into their Trust Account. A Real Estate Broker or a Lawyer can conduct an auction if they wish to.

Re: Real Estate & Foreclosure
 

I have no personal experience of Auctions in Canada. In Winnipeg some people in the Property department are licensed as Brokers/Agents and so tend to deal with the Cities Real Estate Sales.