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Conditions of Sale

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.


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 Sale

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



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.



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.



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.



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.


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.



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 Sale

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



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 Sale

A sale at auction by a trustee.


Upset Price

Commonly known as the reserve price.



Failure to reach the reserve price or insufficient bidding.




Copyright 2016 Yount Auction and Realty, Inc.
P.O. Box 742 Claremont, NC 28610 828-459-7335 828-459-2070 (Fax)
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Auction FAQs
Auction Terms; Page 1
Yount Auction and Realty, Inc.
P.O. Box 742
Claremont, NC 28610
NCAFL #7756