Is it legal to hold an auction on a property you sold three days before the scheduled auction date?

Question

My husband and I are buying a home. The estimated closing date was September 1st, but it has been moved up to the 28th of August. We have been driving by the house and noticed that there is still a ton of stuff in it. Then I got a call from a friend of mine telling me that she saw a flyer advertising an auction that is being held at the house we are buying, on August 31st!! How can that be since we are moving into it on the 29th and 30th?! Is it legal? Can I stop the previous owner from doing this? When we go in to "close" the house will be OURS, right? It's not like she can keep the keys and not give them to us until the 1st right? She agreed to the earlier closing date so I am really confused as to why she planned it like this. Please help!!

Answer 1

Check your contract.   Is there a paragraph that states when POSSESSION of the property happens?  It's typically upon funding in Texas, but sometimes it is on a specific date - what does your contract say?  If the original wording was for "possession on September 1st" but it wasn't changed after the closing date got moved up, then possession is on September 1st.  They can have their estate sale. (the stuff, not the house)

Answer 2

Legal?  I don't know.

However, if you settle on August 28, the home is your property, 100%.  You will receive the keys at settlement. So NO! they can't hold an auction.

Why was settlement moved up to Aug 28 vs Sept 1?  Maybe the flyer was sent out before the move up date.

BEFORE you settle, you SHOULD!!!!!!! make sure that EVERYTHING is removed from the property and you should inspect the property to make sure that everything is removed and that everything you believed was going to be there is still there.  

DO NOT SETTLE UNTIL THEY MOVE OUT.  Otherwise, you then have to go to court to get them out.

Answer 3

do you have a contract? did you put any money down ? if so check the contract,there might be a clause in there saying subject to a higher bid,but there can be no auction after you close.people should really buy from a realtor there are too many variables to go off on your own......tom

Answer 4

Ok...if the house closes ont he 28th, it's yours, and that's it.

You need to call your Realtor and get to the bottom of the flyer...I would also make sure the person you have contracted with ACTUALLY OWNS the property to start with, as it could be an earnest money scam.

If you don't have a Realtor, call your closing attorney.

Answer 5

Contact a real estate attorney quick because what they are doing is not legal. The property is yours and if anyone comes onto your property for the auction and gets hurt you could be liable for big damages.

Answer 6

Contact your lawyer ASAP  and give him/her a copy of the flyer.    

Good Luck.

Answer 7

The house is essentially YOURS when you have a fully ratified contract with no contingencies.   They can't sell it to someone else when there's a contract on it.  What does your real estate agent say about it?  So yes, you can stop the previous owner from doing this.  Start by contacting a lawyer asap.