Auction sale

An auction sale is a sale by which property is offered for sale to several persons through the intermediary of a third person, the auctioneer, and declared sold to the last and highest bidder. An auction sale is perfected when the auctioneer declares the property sold to the last bidder. Entry of the name and bid of the successful bidder in the auctioneer's register makes proof of the sale; failing such entry, proof by testimony is admissible.

An auction sale is either voluntary or forced; forced sales are subject to the rules contained in the Civil Code of Quebec and the Code of Civil Procedure.

The seller may fix a reserve price or any other conditions of sale. The conditions of sale may not be set up against the successful bidder unless the auctioneer communicates them to the persons present before receiving bids.

The bidder may at no time withdraw its bid, this to ensure the proper conduct of the auction.

The seller of an immovable property and the successful bidder (buyer) shall sign and execute the deed of sale within 10 days after either party so requests.

If the buyer fails to pay the price in accordance with the conditions of the sale, the auctioneer may, in addition to the ordinary remedies of a seller, resell the property for false bidding, according to usage and after sufficient notice.

A false bidder (the successful bidder in default under the first sale) may not bid again at the resale. He is bound to pay the difference between the price at which the property was sold to him and the resale price, if lesser, but is not entitled to claim any excess amount. He is also, in the case of a forced sale, liable to the seller, the person from whom the property was seized and the creditors having obtained the judgment, for all interest, costs and damages arising from his default.