In what circumstance can auction funds be disbursed immediately?

Disbursing auction funds immediately is generally permissible only upon an accounting and full settlement. This means that all financial aspects of the auction have been fully resolved, including the complete tally of all bids, payments, commissions, and any other financial obligations. Once this accounting process is finalized, it establishes that all parties involved have received their due amounts, and there are no outstanding discrepancies or pending claims regarding the funds.

This practice is important to maintain transparency and fairness in the auction process, ensuring that sellers and buyers are treated equitably after the conclusion of the auction. Additionally, it helps to prevent potential disputes by clarifying the financial transactions involved.

Other options, like disbursing funds simply upon bidder request or based on a verbal agreement, lack the necessary legal and procedural backing, which could lead to complications or disputes later on. Disbursing funds after a month of waiting does not align with standard practices focused on transparency and efficiency in auction settlements. Thus, the requirement for a complete accounting and settlement is key to ensuring that all transactions are properly documented and legally valid.