Auction Bid For House Property Banned by Committee

Grey River Argus, 21 March 1947, Page 5

Auction Bid For House Property Banned by Committee

AUCKLAND, March 20.

In a case of vital interest to property auctioneers and prospective ex-servicemen purchasers, the South Auckland Land Sales Committee refused an applicataion for consent to the sale of a house property at £2550, which was the highest price bid for it at auction. The Crown submitted that its valuation did not come to half that figure. The ultimate bidder was a solicitor acting on instructions from clients, and the penultimate bidder was an ex-serviceman who bid £2500. He was immediately overbid by the solicitor. The Crown argued that unless some stand was taken bidding in auctions might well be brought to £lO,OOO by persons with the nerve to bid that high and knowing that they would be protected by the Land Sales Committee. It seemed that exservicemen at auctions started behind scratch, although the legislation was enacted in their interests. The Crown asked that the sale be granted at the price agreed at auction. There would be no right of appeal, and it would be a very salutary lesson to anyone bidding at auctions.

The committee said that because of the law the trustees were put in a difficult position. They had quite properly felt bound by trustee law. The committee would refuse consent to the transaction and vendors would be free to come before the committee again with a further application based on a reasonable price.