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Sullivan v. Max Spann Real Estate & Auction Co.

New Jersey Appellate Division

November 13, 2020

In Sullivan v. Max Spann Real Estate & Auction Co., (the Sullivan of Sullivan | Simon, LLC, was not a party), Sullivan hired Max Spann to auction a property. The highest bidder signed a sales contract at the auction and paid 10% of the full purchase price. When the buyer could not secure financing, the sale was terminated, and Max Spann kept the money that the buyer paid. The buyer and Sullivan sued Max Spann, alleging that the money was rightfully theirs. After a one-day trial, the trial court ordered that Sullivan and Max Spann should split the money. On appeal, the buyer argued that the sales contract was unenforceable because the contract did not contain a three-day attorney review provision. The New Jersey Appellate Division affirmed and held that the NJ Legislature did not intend for the three-day attorney review period to apply to private real estate auction sales. The sales contract was enforceable..

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