HEAVY BIDDING

Otago Daily Times, Issue 26416, 21 March 1947, Page 6

HEAVY BIDDING

AUCTION OF PROPERTY UNUSUAL ACTION BY CROWN P.A. AUCKLAND, Mar. 20. In a case of vital interest to property auctioneers and prospective exservicemen purchasers, ' the South Auckland Land Sales Committee has refused an application 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 .under 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 £IO.OOO by a person with nerve to bid that high and knowing he would be protected by the Land Sales Commitcee. It seemed that ex-servicemen 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, trustees were put in a difficult' position. They quite properly felt bound by trustee law. The committee would refuse consent to the transaction and the vendors would be free to come before the' committee again with a further application, based on a reasonable price.