More today on auctioneers selling “as-is” and “where-is” and not allowing bidders the opportunity to inspect prior. It would seem the National Auctioneers Association has a contrary view.
As you can see below, here is the definition of “as-is” and “where-is” (As is) from the National Auctioneers Association where it notes that “Buyers are solely responsible for examining and judging the property for their own protection.”
Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as “As Is, Where Is” and “In its Present Condition.”https://auctioneers.org/NAA/For-Buyers-and-Sellers/Auction-Glossary/NAA/Buyers-and-Sellers/Auction-Glossary.aspx
Of course, if there’s no opportunity to inspect, how do buyers do that? The answer to that question is “they don’t.” It would appear to me that if you are assigning me a responsibility, you can’t at the same time keep me from doing it?
What would this potentially mean? Would only members of the National Auctioneers Association be bound to this practice? Would it be considered an industry standard and/or customary practice? Would it meet with a “commercially reasonable” standard?
I’ve testified in court regarding “commercially reasonable” auctions and one tenet of such is a reasonable opportunity to inspect prior. So if a buyer is denied preview opportunities, is the auction commercially reasonable? It’s not.
NAA’s opinion here is not an outlier. There are many attorneys who hold the reasonable opportunity to inspect as material to selling anything “as-is” and “where-is.”
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at: Mike Brandly, Auctioneer, RES Auction Services and Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, an Instructor at the National Auctioneers Association’s Designation Academy and America’s Auction Academy. He is faculty at the Certified Auctioneers Institute held at Indiana University and is approved by the The Supreme Court of Ohio for attorney education.