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Absentee
Bid
A procedure which allows a bidder to participate in the bidding process without
being physically present. Generally, a bidder submits an offer on an item prior
to the auction. Absentee bids are usually handled under an established set of
guidelines by the auctioneer or his representative. The particular rules and
procedures of absentee bids are unique to each auction company.
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Absentee
Bidder
A person (or entity) who does not attend the sale but submits, in advance, a
written or oral bid that is the top price he or she will pay for a given property. |
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Absolute
Auction
An auction where the property is sold to the highest qualified bidder with no
limiting conditions or amount. The seller may not bid personally or through an
agent. Also known as an auction without reserve. |
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Accounting of Sale
A report issued to the seller by the auctioneer detailing the financial
aspects of the auction.
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Advertising
Non-personal, paid communication such as newspaper, radio, direct
mail and TV directed toward the general public or, in some
cases, specific prospective client groups to provide information
about the time, place, contents, and arrangements of an auction.
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Agent
A person who acts for or in the place of another individual or
entity by authority from them.
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Appraisal
The act or process of estimating value.
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"As
Is, With All Faults "
Selling the property without warranties as to the condition and/or
the fitness of the property for a particular use. Buyers are
solely responsible for examining and judging the property for
their own protection. Otherwise known as "As Is, Where Is" and "In
its Present Condition."
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Auction
A method of selling real estate in a public forum through open and competitive
bidding. Also referred to as: public auction, auction sale or sale. |
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Auction Block
The podium or raised platform where the auctioneer stands while
conducting the auction. "Placing (an item) on the auction
block" means to sell something at auction.
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Auction Listing Agreement
A contract executed by the auctioneer and the seller which authorizes
the auctioneer to conduct the auction and sets out the terms
of the agreement and the rights and responsibilities of each
party.
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Auction Marketer
An individual who contracts with sellers for the auction method
of marketing property. In the case of real property, he or she
may not actually conduct the sale but is directly responsible
for all aspects of marketing the property.
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Auction Marketing
The method of marketing real property utilizing the auction method
of sale.
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Auction Plan
The plan for pre-auction, auction day and post auction activities.
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Auction Price
The price of a property obtained through the auction method of
marketing.
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Auction Subject to Confirmation
See "Reserve Auction."
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Auction Value
The price which a particular property brings in open competitive
bidding at public auction.
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Auction With Reserve
An auction in which the seller or his agent reserves the right
to accept or decline any and all bids. A minimum acceptable price
may or may not be disclosed and the seller reserves the right
to accept or decline any bid within a specified time.
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Auction Without Reserve
See Absolute Auction.
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Auctioneer
The person whom the seller engages to direct, conduct, or be responsible
for a sale by auction. This person may or may not actually call
or cry the auction.
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Auctioneer Subcontractor
An auctioneer hired by the principal auctioneer.
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Ballroom Auction
An auction of one or more properties conducted in a meeting room
facility.
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Bank Letter of Credit
A letter from a bank certifying that a named person is worthy of
a given level of credit. Often requested from prospective bidders
or buyers who are not paying with currency at auctions.
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Bid
A prospective buyer's indication or offer of a price he or she
will pay to purchase property at auction. Bids are usually in
standardized increments established by the auctioneer.
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Bid Acknowledgment
A form executed by the high bidder confirming and acknowledging
the bidder's identify, the bid price and the description of the
property. Also known as Memorandum.
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Bid Assistants
Individuals who are positioned throughout the attendees at the
auction to assist the auctioneer, spot bidders and assist prospective
bidders with information to help them in their buying decision.
Also known as ringmen, bid consultants, bid spotters, or groundsmen.
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Bid Caller
The person who actually "calls," "cries or "auctions" the
property at an auction, recognizing bidders and acknowledging the
highest bidder. Commonly known as the auctioneer.
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Bid Rigging
The unlawful practice whereby two or more people agree not to bid
against one another so as to deflate value.
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Bidder Number
The number issued to each person who registers at an auction.
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Bidder Package
The package of information and instructions pertaining to the property
to be sold at an auction event obtained by prospective bidders
at an auction. Sometimes called a bidder packet or due diligence
package.
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Bidder's Choice
A method of sale whereby the successful high bidder wins the right
to choose a property or properties from a grouping of similar
or like-kind properties. After the high bidder's selection, the
property is deleted from the group, and the second round of bidding
commences, with the high bidder in round two choosing a property,
which is then deleted from the group and so on, until all properties
are sold.
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Bookkeeper or Clerk
The person who is responsible for the accounting and paperwork
at an auction sale.
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Broker Participation
An arrangement for third-party brokers to register potential bidders
for properties being sold at auction for a commission paid by
the owner of the property or the auction firm.
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Buyer's Broker
A real estate broker who represents the buyer and, as the agent
of the buyer, is normally paid for his/her services by the buyer.
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Buyer's Premium
An advertised percentage of the high bid or flat fee added to the
high bid to determine the total contract price to be paid by
the buyer.
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Caravan Auctions
A series of on site auctions advertised through a common promotional
campaign.
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Carrying Charges
The costs involved in holding a property which is intended to produce
income (either by sale or rent) but has not yet done so, i.e.,
insurance, taxes, maintenance, management.
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Catalogue or Brochure
A publication advertising and describing the property(ies) available
for sale at public auction, often including photographs, property
descriptions, and the terms and conditions of the sale.
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Caveat Emptor
A Latin term meaning "let the buyer beware." A legal
maxim stating that the buyer takes the risk regarding quality or
condition of the property purchased, unless protected by warranty.
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Clerk
The person employed by the principal auctioneer or auction firm
to record what is sold and to whom and for what price.
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Collusion
The unlawful practice whereby two or more people agree not to bid
against one another so as to deflate value or when the auctioneer
accepts a fictitious bid on behalf of the seller so as to manipulate
or inflate the price of the property.
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Commission
The fee charged to the seller by the auctioneer for providing services,
usually a percentage of the gross selling price of the property
established by contract (the listing agreement) prior to the
auction.
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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.
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Contract
An agreement between two or more persons or entities which creates
or modifies a legal relationship.
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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.
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Critical Path
Sequence of key tasks to be done by auction contractor or other
designated parties on specified dates, leading to desired goals.
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Dual Agency
The representation of opposing principals (buyers and seller) at
the same time
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Due Diligence
The process of gathering information about the condition and legal
status of assets to be sold.
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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.
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Hammer Price
The price at which the auctioneer sells a property at, also referred
to as the Bid Price, generally it does not include the buyers
premium.
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Listing
Agreement
See
Auction Listing Agreement. |
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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.
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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.
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Market Title
A title that is free and clear of objectionable liens, clouds or other
title defects. A title that enables an owner to sell his property freely
to others and that others will accept without objection.
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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.
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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.
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Minimum Opening Bid
The lowest acceptable amount at which the bidding must commence.
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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.
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Multi-Seller
Auction
Properties
owned by many sellers, offered through a common promotional campaign
are auctioned in a single event. |
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No-Sale Fee
A charge paid by the owner of property offered at a reserve auction
when the property does not sell.
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Opening
Bid
The
first bid offered by a bidder at an auction. |
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On-site Auction
An auction conducted on the premises of the property being sold.
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Participating Broker
See Cooperating Broker.
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Preview
Specified date and time property is available for prospective buyer
viewing and audits. Also known as Open House or Inspection
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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.
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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.
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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.
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Sale Manager
The person designated by the auction company who is responsible
for organizing the details of an auction. Also known as project
manager.
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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.
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Seller
Entity that has legal possession, (ownership) of any interests,
benefits or rights inherent to the real or personal property
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Subject to Confirmation
See Reserve Auction.
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Tax Sale
Public sale of property at auction by governmental authority, due
to nonpayment of property taxes.
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Terms
The period of time that an agreement is in effect.
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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.
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Tie Bids
When two or more bidders bid exactly the same amount at the same
time and must be resolved by the auctioneer.
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Trustee's Sale
A sale at auction by a trustee.
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Upset Price
Commonly known as the reserve price.
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Withdrawal
Failure to reach the reserve price or insufficient bidding.
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