Hi Kenst,
This does happen, unfortunately, and the Clerk’s inefficiency after the pandemic is usually what pulls bidders into situations like this.
In a cancelled auction, the proper and standard procedure is an immediate formal notice telling the winning bidder not to pay the balance, followed by the refund of the deposit once the cancellation is processed in the system. That used to be the normal and legally correct behavior before the pandemic. Since then, many Clerk offices have become slower and less coordinated, and situations like this have become far more common.
Once the Clerk was aware that the auction had been cancelled, they should have acted right away to stop the payment process and initiate the deposit refund. When that doesn’t happen, and you are still being instructed to pay despite the cancellation, the safest response is always to ask for that instruction in writing. Something as simple as asking them to confirm in writing that payment is still required on a cancelled sale often forces an internal double-check. If they insist and you pay, that written confirmation becomes strong evidence that helps push the refund process forward (It could be as simple as email communications).
As for timing, two months is unfortunately realistic. It can be faster, but given current court and administrative delays, two months is not excessive by today’s standards. Judicial systems move slowly, and Clerks even more so since the pandemic.
Administrative fees are usually non-refundable, and that part is true. You can try to push back, and from a fairness standpoint you are right, but according to most Clerk manuals and internal regulations, they are allowed to retain those fees even when the auction is cancelled.
I would not recommend hiring an attorney at this stage. Legal fees and the time involved will likely cost more than any benefit, especially since you should eventually receive your funds back. An attorney only starts to make sense if the Clerk becomes completely unresponsive or the refund stretches far beyond what would be considered a reasonable delay.
Disclaimer: This is not legal advice and I am not an attorney, just sharing an opinion based on experience. For anything definitive, consulting a qualified attorney is always recommended.
