Saturday, June 18, 2011

Auctioneer Faces Administrative Charges Over Advertising 'Absoulte' Sale Of Property Subject To $2.3M Mortgage In Foreclosure

In Rapid City, South Dakota, the South Dakota Journal reports:
  • The South Dakota Real Estate Commission is accusing auctioneer Martin Jurisch of unprofessional conduct just a year after he settled to avoid an investigation in a similar case.
  • The commission plans a formal hearing to consider a complaint lodged in February in which the Rapid City auctioneer is accused of advertising an auction as absolutewhen the property was encumbered by $2.3 million in mortgages and was the subject of a pending foreclosure.
  • In an absolute auction, the property must sell to the high bidder no matter how low the price, which in this case put the seller at risk if the sale price wasn’t high enough to pay the mortgages, according to the complaint.
  • The commission’s formal complaint against Jurisch accuses him of six violations of state real estate laws. After the hearing, the commission could issue Jurisch a letter of reprimand, revoke or suspend his license, fine him up to $2,500 or order any combination of the penalties.

For more, see Real Estate Commission accuses auctioneer, former mayor of violations.

(1) Reportedly, Jurisch agreed last year to a settlement to resolve a complaint that he refused to sell 2,909 acres in Bennett County at what was advertised as an absolute auction. A prospective buyer complained Jurisch withdrew the land from sale when the high bid fell short of the amount needed to pay off the property owner’s mortgage.