Do you get your money back if you lose an auction?
If you do not win the auction, the bank will refund your transaction. If you don’t receive the refund from your bank, please contact them. Typically it happens relatively quickly (two days) but depending on your bank it may take as many as 45 days in some cases. Consequences for Failing to Pay a Winning Bid If you win something at an auction, you are legally bound to pay the agreed price once the hammer falls. You’re liable for the deposit on auction day and the rest of the purchase price, plus fees, by the completion deadline (typically 28 days after the auction).You’re liable for the deposit on auction day and the rest of the purchase price, plus fees, by the completion deadline (typically 28 days after the auction). If you can’t pay the deposit, you may face legal consequences. The auction house and seller can demand that you pay the amount specified in your contract.
Can you back out after winning an auction?
As soon as you make a bid at an auction, you’re committing to buy the property for the price you bid. When the hammer goes down, the sale becomes unconditional, and you don’t have any cooling off period. This rule goes into effect 10 minutes before the auction closes to ensure that every bidder has 10 minutes to place a new bid if they are outbid on a lot. This simulates what may happen in a floor auction in which the auctioneer does not bring the final hammer down as long as there is active bidding.If a bid is placed within 5 minutes of the closing time of a lot the closing time will be extended with 5 minutes. This process will repeat itself with any bid within the last 5 minutes of the new closing time. It does not matter when the bid is placed within those 5 minutes.
What happens if you change your mind after an auction?
No Cooling-Off Period One of the most critical differences between auctions and private treaty sales is that there is no cooling-off period. Once the auctioneer declares you the highest bidder, you are legally bound to proceed. If you change your mind, you could face serious financial penalties. After winning, you might just simply regret the decision, feeling that you overpaid or made a mistake and try to back out. Unfortunately, there’s no cooling-off period and auctions don’t have a ‘change of mind’ clause attached to them.