John C. Sullivan v. Max Spann Real Estate & Auction Co. (085225) (Somerset County & Statewide) (A-57-20; 085225)
A residential real estate sale by absolute auction is distinct from a traditional real estate transaction in which a buyer and seller negotiate the contract price and other terms and memorialize their agreement in a contract. In an absolute auction or an auction without reserve, as is the issue here, the owner unconditionally offers the property for sale and the highest bid creates a final and enforceable contract at the auction’s conclusion, subject to applicable contract defenses. Imposing the three-day attorney review prescribed in State Bar Ass’n on residential real estate sales conducted by absolute auction would fundamentally interfere with the method by which buyers and sellers choose to conduct such sales.
