Legal Definitions - buying-in

Buying-in refers to the act where an individual or entity who previously owned a property, or has a significant connection or interest in it, purchases that property when it is sold at a public auction or a foreclosure sale. This often occurs when the property is being sold due to financial difficulties or a legal process, and the original owner or an interested party wishes to regain ownership or prevent it from falling into external hands.

• Example 1: Reclaiming a Foreclosed Home

  After facing unexpected medical bills, Maria falls behind on her mortgage payments, and her house is scheduled for a foreclosure auction. With the help of a family loan, Maria attends the auction herself and successfully bids on her own home, buying it back before it can be sold to a new owner.

  This illustrates buying-in because Maria, the original owner, purchases her property at a foreclosure sale.

• Example 2: Preserving a Family Heirloom at an Estate Sale

  When an elderly relative passes away, their extensive antique collection is put up for auction as part of the estate liquidation. A specific vintage desk, which has been in the family for generations, is among the items. A younger family member, wanting to keep the desk within the family, attends the auction and successfully bids on it.

  Here, the family member is an "interested party" who purchases a specific piece of property at an auction of the estate, demonstrating buying-in.

• Example 3: A Business Owner Repurchasing Key Assets

  A small printing company, "PrintWorks," declares bankruptcy, and its assets, including specialized printing presses, are put up for public auction by the creditors. The company's founder, Mr. Davies, who hopes to eventually start a smaller, niche printing operation, attends the auction and successfully bids on one of the unique presses he originally purchased for PrintWorks.

  This is an example of buying-in because Mr. Davies, an original owner (founder) of the company that owned the asset, repurchases a specific piece of property (the printing press) at an auction of his former business's assets.