Auction Sale

Explore auction sales in Canadian real estate — what they are, how they work, and why they’re used for certain properties.

Auction Sale

July 27, 2025


What is an Auction Sale?

An auction sale in real estate is a public sale where a property is sold to the highest bidder, often used for distressed properties or unique assets.

Why Auction Sales Matter in Real Estate

In Canadian real estate, auction sales provide an alternative way to sell or acquire property, often with quicker timelines and transparent pricing.



Key aspects:
  • Can be voluntary or court-ordered (e.g., foreclosure)
  • Typically sold as-is, where-is
  • Requires due diligence before bidding



Understanding auction sales helps buyers and sellers navigate risk, pricing, and process requirements.

Example of an Auction Sale in Action

The bank held an auction sale to recover funds after foreclosing on a commercial property.

Key Takeaways

  • Property sold to highest bidder
  • Used for distressed or unique properties
  • Transparent and competitive process
  • Buyer accepts property as-is
  • Requires thorough pre-sale research

Related Terms

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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