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."
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
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
Bank Letter of
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
of sale whereby the successful high bidder wins the
right to choose an asset or assets from a grouping of
similar or like-kind assets. After the high bidder's
selection, the asset is deleted from the group, and the
second round of bidding commences, with the high bidder
in round two choosing an asset, which is then deleted
from the group and so on, until all assets are sold.
Also known as “Buyer’s Choice.”
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.
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
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
Minimum Bid Auction:
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.
A group of
properties offered through a common promotional
campaign. The properties to be auctioned may be owned by
one seller or multiple sellers.
auction conducted on the premises of the property being
and time property is available for prospective buyer
viewing and audits. Also known as “Open House” or
price that a seller is willing to accept for a property
to be sold at auction. Also known as “reserve price”.
A method of sale
where by 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
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.
When two or
more bidders bid exactly the same amount at the same
time. This must be resolved by the auctioneer.
reach the reserve price or insufficient bidding.