Assignment / instrument of mandate
So you would think that either the one making the opening bid or the bidder at a Dutch auction becomes the new owner of the object to be auctioned. However, this does not have to be the case.
In the first place, the one who has given instructions for the auction (the owner or the mortgagee) is authorized to consider the matter until the first business day after the auction until 5:00 p.m. and possibly not to assign. Does the client find the purchase price too low, he can decide to keep the object himself after all, in order to sell it in another way, if possible. So who has made a successful bid in a Dutch auction is not immediately certain that he also becomes the owner! The assignment is recorded by the notary in a so-called instrument of assignment. But the bidder at the Dutch auction can also notify the notary that he has bought for himself or a principal whose name will be given in due time. This possibility is mainly used by professional traders who intend to sell the property bought to a third party. Should they succeed, the notary prepares a so-called instrument of mandate establishing for whom the bidder at the Dutch auction has bought. The advantage hereof is found in the saving of additional transfer costs.