Laws governing property auctions

gerros

Hello. Where can I read the laws and rules governing property auctions?
I am interested in this, as I made extensive and expensive plans to travel to an advertised auction on daft.ie for a property which I was interested in buying. Upon arrival, I was informed that the agent had taken the property off the market just that morning, on the grounds that there was "a lack of interest". Given that the amount of interest could not be ascertained before the arrival of interested parties to the venue of the scheduled auction, and that I arrived in advance of the registered time, I was very confused as to how they could declare that there was not enough interest to go ahead with the auction at this eleventh hour.
Even more perplexing, was that another interested party had arrived before me (which proves that an auction could have gone ahead), but - more than 2 hours in advance of the time at which the property was to go under the hammer - this other interested party approached the agency selling the property with an offer of the reserve price, which they accepted. By the time I arrived to the auction (again, in advance of the required registration time), the contracts had already been signed.
This all seems to be to be extremely suspicious, but I have not been able to find a point of law which obliges agencies offering properties at auction to hold up their end of the deal and actually allow interested parties to bid on the day. Is it possible that this area is not properly legislated and regulated? Can agencies use the lure of an auction in order to just find one interested party and talk to them off-the-record, and accept their offer as the only offer for their property, without opening the auction to the floor?

Peregrinus

Yes, sellers can advertise a property for auction as a way of testing the market. Perfectly legal. Prospective purchasers can also approach sellers and make a "close-out" offer ("I'll buy the property from you now, at this price, but if it goes to auction I won't bid.") Again, perfectly legal. And the seller can accept that offer.

It's also perfectly legal to advertise a property for auction, but then cancel the auction and not sell it at all, or sell it to somebody who was an interested enquirer while the house was being advertised for auction.

(Note that these are decisions for the owner of the property being sold, not the agency acting on his behalf.)

Basically, prospective buyers and sellers are never obliged to agree to a sale. And, until they do agree to a sale, no sale has been agreed. Until you have a contract signed by the seller, or the property has been knocked down to you at auction, you have no right to buy the property and no right to require the owner to consider selling it to you.

4ensic15

gerros wrote: »

Hello. Where can I read the laws and rules governing property auctions?
I am interested in this, as I made extensive and expensive plans to travel to an advertised auction on daft.ie for a property which I was interested in buying. Upon arrival, I was informed that the agent had taken the property off the market just that morning, on the grounds that there was "a lack of interest". Given that the amount of interest could not be ascertained before the arrival of interested parties to the venue of the scheduled auction,

Did you ask for a copy of the contract and special conditions in advance? Did you read the auctioneers terms and conditions?

Fred Swanson

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