Expert: Lisa Webber - 10/23/2008

Question
We won a real estate auction last week in Baltimore County. We submitted an agent registration form the day before the auction and were not told if it was accepted or not. After we arrived at the auction and were allowed to bid, we won. The auctioneer then came to us and said "we may have problems getting your agent her commission". Is the fact they let us bid with our agent present at the auction enough "approval" or did we have to have something in writing? I would hate for her not to get her commission. Also can we request a final walkthrough before closing to ensure the sellers didn't trash the place or remove something that they shouldn't? (we won the auction at an incredibly low price - Absolute auction). Any advice would be greatly apprecaited! Thanks, Sam

Answer
Hi Sam,  Your agent should be paid.  Without seeing their terms, it's hard to say how it will be handled.  Some auction terms state that they must receive the agent registration 48 hours prior to the auction, which may be what happened in this case.  Part of your buyers commission should be going to the agent.  With auctions, you'll usually pay a buyers premium which pays the commission to the auctioneer as well as any commission that may be going to your agent.  Were there many people at the auction?  You would think that once you submitted your agent registration and they accepted it, then you brought your agent and bid, that your agent should be getting paid.  I would assume that but you know what happens when you assume.  I would pursue this and tell them that your agent needs to be paid and that they accepted the registration and saw her there so you expect that she be paid.  Your Realtor can be very valuable to you in the future, so it is worth pushing them to pay her and it's only fair.  An auction is a final sale so you don't get to go in and ask for anything to be done or check on the condition of the property.  Once it's sold, it's sold.  That is the intrinsic risk of auctions, but you can also get a very good deal on a piece of property that way.  It's pretty much buyer beware.  I hope this helps.  Congratulations on getting a great deal!