Real estate auctions and paying off a competing bidder?

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I believe I remember reading in a legal journal that if a person was bidding at a real estate auction that it was legally permissible to offer money to a competing bidder to stop bidding. However, would this not be considered a tortuous interference or third party interference and be an actionable complaint for damages by the auction house and seller? Thank you.

Attorney Answer

1
Haskell Willis ·
I believe you may have been reading where there could be a tortuous interference of a contract. At auctions, bidders are making offers to purchase and once the hammer or gavel hits, the high bidder and their offer is accepted and a contract comes into existence. Until that happens, there is not a contact to interfere with between the auction house and the other bidder thereby no cause of action. Bidders are free to make deals among themselves at auctions prior to and up till the hammer signals the end of the auction if they desire.
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