THE TERM “SUBJECT TO APPROVAL”
Any item being sold “Subject To Approval” cannot be concluded, and is not a binding sale until the secured lender approves the sale amount. It is a legal requirement for all leasing companies as well as many other sellers to follow this simple guideline in order to be able to pursue legal action against the previous debtor for shortfalls and deficiencies. Any seized item must be exposed for public sale, advertised in a major journal, and must have a minimum of 3 bids placed on it.
Benaco Sales Ltd. follows these rules strictly, and our sell through rate for assets sold on a “Subject To Approval” basis is over 95%. Once approved, the purchaser will be notified by email and the sale can be concluded. If not approved, the high bidder will have the opportunity to increase their bid, if they wish to do so, until an agreement can reached. There will be no financial obligation by the high bidder until a sale can be concluded.