At auction, title
passes from the seller to the buyer at the time the auctioneer declares the lot
sold to the highest bidder. Nevertheless, many auction houses have
contractually postponed in their conditions of sale the title transfer until
payment of the price by the purchaser in full and cleared funds. In a decision
made on 28 March 2024, the Supreme Administrative Court ruled that those title
retention clauses were incompatible with the provisions of the French
Commercial Code, according to which title passes at the moment the auctioneer
declares the lot sold, a principle that is not subject to any exception.