Am I legally obligated to continue with a property purchase that I bid on and won at auction?

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Am I legally obligated to continue with a property purchase that I bid on and won at auction?

I won the bid for a property at an auction and gave the owner of the property a check for 10% down. We did not sign any other documents or intent to purchase. Under IL law, are we legally bound to continue with the purchase of the property?

Asked on July 18, 2011 under Real Estate Law, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

In most States in this country when you purchase property at a trustee's sale (foreclosure sale) the winning bidder is required to either pay the entire purchase price on the spot through a cashier's check or the entire amount within a stated time period under the laws of the State that the property is in.

It would appear at first blush that under the law of the State where the property is located and where you are the winning bidder at a trustee's sale, you are required to pay the trustee for the sale of the property the entire amount of the purchase within the time period mandated by State law.

You are legally bound to go through with the transaction. if you do not, the trustee under the mortgage very well could file a lawsuit against you for not complying with the bid process that you won.


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