Legal Definitions - opening the bidding

Opening the bidding refers to the act of starting the auction process by making the first bid. This term is commonly used in auctions, including sheriff's sales of real property.

However, in some cases, opening the bidding can also refer to an unethical practice where a concluded sale is set aside to accept a better post-sale offer. This practice is also known as opening bidding.

During a sheriff's sale of a foreclosed property, the auctioneer starts the bidding process by announcing the opening bid. Interested buyers then make their bids until the highest bidder wins the property.

However, if the highest bidder fails to pay for the property or backs out of the sale, the auctioneer may set aside the sale and accept a better offer from another buyer. This practice is considered unethical and can lead to legal consequences.

Another example of opening the bidding is in a traditional auction where the auctioneer starts the bidding process by announcing the opening bid for an item, such as a painting or antique. Interested buyers then make their bids until the highest bidder wins the item.

These examples illustrate how opening the bidding is an essential part of the auction process, but it should be done ethically and without any manipulation or unfair practices.