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.
An agreement between two or more persons or entities which creates or modifies a legal relationship.
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.
The representation of opposing principals (buyers and seller) at the same time.
The process of gathering information about the condition and legal status of assets to be sold.
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.
Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel.
See Auction Listing Agreement.
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
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.
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.
A group of properties offered through a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers.
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.
A charge paid by the owner of property offered at a reserve auction when the property does not sell.
The first bid offered by a bidder at an auction.
An auction conducted on the premises of the property being sold.
See Cooperating Broker.
Specified date and time property is available for prospective buyer viewing and audits. Also known as Open House or Inspection.
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.
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.
The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.
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.
The person designated by the auction company who is responsible for organizing the details of an auction. Also known as project manager.
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.
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.
Public sale of property at auction by governmental authority, due to nonpayment of property taxes.
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
When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer.
A sale at auction by a trustee.
Commonly known as the reserve price.
Failure to reach the reserve price or insufficient bidding.
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