It appears that the bidder made a mistake by entering the wrong number.
An apartment in Eunpyeong-gu, Seoul, listed for real estate auction, was sold for 670 billion won. It appears that the bidder made a mistake by entering the wrong number.
On the 23rd, News1 reported that on the 19th, a property in Jingwan-dong, Eunpyeong New Town, Eunpyeong-gu, Seoul, with an exclusive area of 85㎡, was sold at a price more than 1,000 times the minimum bid price of 640 million won. This corresponds to a winning bid rate of 83,750% compared to the appraised value. On the same day, another 85㎡ property with the same conditions was sold for 680 million won.
The photo shows residential houses and apartment complexes in downtown Seoul as seen from Namsan, Jung-gu, Seoul, on the afternoon of the 18th. (This is not directly related to the article.) Photo by Yonhap News
The bidder who participated in the auction seems to have intended to bid 670 million won but mistakenly added three extra zeros. This property was previously unsold on the 15th of last month and was re-listed at 640 million won, which is about 80% of the appraised value.
If this auction participant withdraws from the auction, they will lose the bid deposit of 64 million won that they have already paid. If the winning bidder cancels the contract or fails to pay the remaining balance, the bid deposit, which is 10% of the minimum bid price, cannot be refunded.
Cases of losing the deposit due to numerical input errors occur frequently. According to Gigi Auction, there have been a total of eight auction cases in the metropolitan area this year where the winning bid rate exceeded 500%. In June, an apartment in Hwaseong-si, Gyeonggi-do, was sold at 3.16999 billion won, which is 806.6% of the appraised value. It is reported that the winning bidder at that time was unable to recover the deposit of about 30 million won paid when participating in the auction.
The court may recognize reasons for disallowing the sale of auctioned properties depending on the circumstances. However, it is known that if a bidder mistakenly writes a higher bid price than originally intended, this does not constitute grounds for disallowing the sale. There is no provision allowing the disallowance of sale simply because the highest bidder mistakenly entered a higher bid price than originally intended.
In fact, Article 121 of the Civil Execution Act (Reasons for Objection to Sale Permission) stipulates that objections to sale permission can be made if "the highest bidder does not have the ability or qualification to purchase the real estate." Article 124 (Disallowance of Sale in Case of Excessive Sale) states that "when multiple real estate properties are sold, if the sale price of one property is sufficient to repay all creditors' claims and compulsory execution costs, the sale of other properties shall not be permitted."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
