What ends up happening when the winning bidder at an auction cannot pay or does not pay?
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As long as a contract has not been signed prior to pay(very unlikely) then the person doesn’t pay and the item goes back up for action at a new date. The person now with a damaged reputation with the action site/facility is banned/suspended. Obviously each private establishment has its own rules. There is some grounds for the establishment to sue based on a verbal contract but any good lawyer could swat that case.
Basically if you no pay, you no come back.
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I silent bid on an autographed picture. Then shit hit the fan and I couldn’t buy it. I told the auction and it went to the next highest bidder and they thanked me for being upfront, honest, timely. It depends on the auction of course.
It really depends on the auction house and who the bidder is. There is A LOT of behind the scene stuff that goes on, finagling, negotiations, etc, after the auction is over. New clients are checked out before hand and may have to put up a cc or deposit, also sign agreement to pay. Older clients who buy a lot are given far more leeway. Ultimately, if the winner doesn’t pay then the second highest bidder is offered the lot at their bid amount, sometimes days later, sometimes immediately or the lot is put up again at next auction. They track the auction process with notes during auction as well as audio and video so they know who the second bidder is.
I worked at a small, boutique auction house for many years.
Depends. Some auctions require you to pay X before participating and that fee is not refundable (but counts against your winning bid). If you sign some sort of contract then the terms of such contract apply – if it states that the winner must pay or face penalties, then you do so.
Context matters.
I am a self-storage facility manager. An unfortunate part of the job is that some folks for reasons either unfortunate or the result of their own actions do not pay for an extended period, and the contents go up for auction.
With our auctions, it goes to the next highest bidder, and keeps going down that list until either someone pays, or we run out of next highest bidders and it’s considered a no-sale. From there we have to either decide to auction again, attempt to make acceptable arrangements with the occupant, or in some states we are able to declare the contents have no commercial value and may be disposed of by any non-sale manner we deem necessary.
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