Non-binding bid policy overview
Certain types of items cannot be sold through the auction or fixed price format on our site. Therefore, we have a separate policy for those types of items where placing a bid neither constitutes a legally binding contract or obligates the seller to sell the item. The high bidder is not obligated to purchase the item either. If you list these types of items on eBay, the listing cannot result in a binding contract to buy and sell the item, but is merely a means of introducing interested potential sellers to interested potential buyers. Furthermore, insincere bidding is not permitted.
Activity on eBay is required to follow this policy, the eBay User Agreement and all applicable laws, as well as respect the rights of third parties. If it doesn't, eBay may take action consistent with applicable laws and the eBay User Agreement, and may even be legally required to do so. Such actions may include, as an example only: Removing the listing or other content, issuing a warning, restricting activity or account suspension.
Some examples
The following types of items must be listed in the appropriate "non-binding bid" category (if such category exists), and may only be listed to solicit indications of interest for the item:
- Real Estate (e.g., homes, real property)
- Businesses (e.g., stock sale of businesses)
Mary is selling her house and has received many bids on the property. The listing closes with a high bidder and Mary is ready to close the sale. Unfortunately, the high bidder decides not to complete the transaction. Upset with this buyer, Mary tries to file for Final Value Fee credit through the Unpaid Item process. Mary, the seller, is in violation of the non-binding bid policy because bids on real estate are not contracts.
Example of a binding bid: Steve is bidding on a new rug for his living room and he wins the online auction. Later, he finds out that the rug is not big enough to cover his floor and he wishes to back out of the transaction, claiming the bid was non-binding. Steve, the buyer, is in violation of the Unpaid Item policy because the rug he was bidding on is not covered under the non-binding bid policy.
Additional information
In addition, we recommend that when you list any of the types of items outlined above you seek legal advice and the aid of an appropriate licensed professional. The purchase and sale of these types of items is complicated, and subject to a wide variety of laws, including those of the local jurisdiction and the country in which the item is located. If you list any of these types of items to solicit indications of interest you may, but are not obligated to, contact anyone who responds to your listing to discuss the sale of the item, subject to the terms of the Privacy Policy.
Tip
Visit Seller Help to find details of any policy issues with your account or listings, and get the information you need to quickly resolve them.
Why does eBay have this policy?
In most cases, a bid on eBay is a legally binding contract between the buyer and the seller. Due to state laws and complexities in certain real estate transactions, bids on some categories of Real Estate on eBay are non-binding.
