Auction Terms and Guidelines
When you bid in an auction, there is no right of return, unless an item differs from its catalogue description. Bidding online is a contractual commitment to buy, just like when you’re in an auction room.
Financing Purchases at Auction
-
Use a 10% fixed deposit, which can be paid by cheque, cash, or other methods.
-
Remember auction results are public. If your item doesn’t sell, it is marked as “burned”.
-
Sell at a tag or garage sale. Display and price the item appropriately.
-
If you wait a few years, try auctioning the item again.
Consequences of Non-Payment and Unsold Items
If you win an auction and can’t pay, the unpaid items may be quietly returned to the seller, put into a future auction with a lower value, or sold privately for a significant loss. Legally, an auctioneer can seek payment for purchased items.
Recap on Unsold Items
If items remain unsold at the end of the auction, they revert to your possession. You are then free to donate, give away, or sell them to interested buyers or elsewhere.
Fair Market Value and Charity Auctions
For items purchased at a charity auction, the fair market value is typically considered to be the price an unrelated buyer would pay. If you paid more than the normal selling price, you may be able to claim a deduction up to that amount on your taxes.