Conditions of
The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyer's premiums,
possession, reserves and any other limiting factors of an auction. Usually included in published advertisements or announced by the
auctioneer prior to the start of the auction.
Contract
An agreement between two or more persons or entities which creates or modifies
a legal relationship.
Cooperating Broker
A real estate broker who registers a prospective buyer with the auction company, in accordance
with the terms and conditions for that auction. The broker is paid a commission only if his prospect is the high bidder and successfully
closes on the property. Also known as a participating broker.
Dual Agency
The representation of opposing principals (buyers and
seller) at the same time.
Due Diligence
The process of gathering information about the condition and legal status of assets to
be sold.
Estate
The sale of property left by a person at his or her death. An estate auction can involve the sale of personal
and/or real property.
Hammer Price
Price established by the last bidder and acknowledged by the auctioneer before dropping the
hammer or gavel.
Listing Agreement
See Auction Listing Agreement.
Listing Broker
A real estate broker who has a listing on
a property and cooperates with the auction company by allowing the auction agreement to supersede his/her listing
agreement.
Market
Value
The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite
to a fair sale, the buyer and seller,
each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.
Memorandum
Sometimes
also referred to as a "Bidder Acknowledgment," or "Broker Acknowledgment," the memorandum is signed by those parties either on the
auction floor or in the contract room.
Minimum Bid Auction
An auction in which the auctioneer will accept bids at or above a disclosed
price. The minimum price is always stated in the brochure and advertisements and is announced at the auctions.
Minimum Opening
Bid
The lowest acceptable amount at which the bidding must commence.
Multi-Property Auction
A group of properties offered through
a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers.
Multi-Seller Auction
Properties
owned by many sellers, offered through a common promotional campaign are auctioned in a single event.
National Auctioneers Association
An
association of individual auctioneers united to promote the mutual interests of its members; formulate and maintain ethical standards
for the auction profession; promote the enactment of just and reasonable laws, ordinances and regulations affecting auction selling;
make the public more aware of the advantages of auction selling; and generally improve the business conditions affecting the auction
profession.
No-Sale Fee
A charge paid by the owner of property offered at a reserve auction when the property does not sell.
Opening
Bid
The first bid offered by a bidder at an auction.
On-site Auction
An auction conducted on the premises of the property being
sold.
Participating Broker
See Cooperating Broker.
Preview
Specified date and time property is available for prospective buyer
viewing and audits. Also known as Open House or Inspection.
Referring Broker
A real estate broker who does not have a listing
on a property, but refers the auction company to a potential seller for an auction. Usually earns a flat fee
commission for referring
product to an auction company.
Regroup
A process used in real estate auctions where a bidder has the opportunity to combine several
parcels of land previously selected by other bidders, thereby creating one larger parcel out of several smaller parcels. This process
is often used in conjunction with bidder's choice.
Reserve
The minimum price that a seller is willing to accept for a property
to be sold at auction. Also known as the reserve price.
Reserve Auction
An auction in which the seller reserves the right to establish
a reserve price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion
of the sale by the auctioneer. See also Auction With Reserve.
Sale Manager
The person designated by the auction company who is
responsible for organizing the details of an auction. Also known as project manager.
Sealed Bid
A method of sale utilized where confidential
bids are submitted to be opened at a predetermined place and time. Not a true auction in that it does not allow for reaction from
the competitive market place.
Seller
Entity that has legal possession, (ownership) of any interests, benefits or rights inherent
to the real or personal property.
Subject to Confirmation
See Reserve Auction.
Tax
Public sale of property at auction
by governmental authority, due to nonpayment of property taxes.
Terms
The period of time that an agreement is in effect.
Terms
and Conditions
The printed rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed
to potential bidders prior to an auction
sale.
Tie Bids
When two or more bidders bid exactly the same amount at the same time and
must be resolved by the auctioneer.
Trustee's
A sale at auction by a trustee.
Upset Price
Commonly known as the reserve
price.
Withdrawal
Failure to reach the reserve price or insufficient bidding.
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P.O. Box 742
Claremont, NC 28610
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