Auction Definitions

While there are thousands of definitions for the auction field, here are the most common definitions that we found that can help you with fully understanding the terminology and auction industry in general. VOCABULARY & DEFINITIONS

• "As-is" - 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
• Absentee Bid - A procedure which allows a bidder to participate in the bidding process without being physically present.
• Absentee Bidder - A person (or entity) who does not attend the sale but submits and absentee bid
• 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.
• Acceleration Clause - clause in a mortgage, land purchase contract, or lease stating that, upon default of a payment due, the balance of the obligation should at once become due and payable."
• Accounting of Sale - A report issued to the seller by the Auctioneer detailing the financial aspects of the auction.
• Acre - a measure of land. 160 sq rods, 4,840 sq. yards. 43,560 square feet"
• Ad Valorem - a tax according to valuation
• Administrator - A person appointed by the court where no will was left
• Advance Fee - Down Payment
• Agent - A person who acts for or in the place of another individual or entity by authority from them.
• Agreement of Sale - See Contract
• Alienation - the transfer of real property by one person to another
• Amortization - paying a mortgage on an installment basis
• Annuity - a sum of money or its equivalent that constitutes one of a series of periodic payments.
• Appraisal - "(1) The act or process of estimating value (2) an estimate of quantity, quality or value."
• Apprentice Auctioneer - An Auctioneer who is in training, operating under the supervision of a licensed or experienced Auctioneer."
• Assignee - the person to whom an agreement or contract is assigned.
• Auction - A method of selling property in a public forum through open and competitive bidding. Also referred to as: public auction, auction sale or sale. "
• 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. "
• 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.
• Auction Marketer - An individual who contracts with sellers for the auction method of marketing property. In the case of real property
• Auction Marketing - The method of marketing real property utilizing the auction method of sale.
• Auction Plan - A sequence of key tasks to be done by auction contractor or other designated parties on specified dates
• Auction Price - The price of a property obtained through the auction method of marketing.
• Auction Subject to Confirmation - (See "Reserve Auction")
• Auction Value - The price which a particular property brings in open competitive bidding at public auction.
• 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.
• Auction without Reserve - (See "Absolute Auction"
• Auctioneer - The person whom the seller engages to direct, conducts, or be responsible for a sale by auction. This person may or may not actually call or cry the auction."
• Auctioneer Subcontractor - An Auctioneer hired by the principal Auctioneer.
• Ballroom Auction - An auction of one or more properties conducted in a meeting room facility.
• 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.
• Banks - mechanical and still
• 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.
• 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."
• 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 ring men, bid consultants, bid spotters, or grounds men."
• Bid Caller - See Auctioneer
• Bid Rigging - The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value.
• Bidder Number - The number issued to each person who registers at an auction.
• 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.
• 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."
• Blanket Mortgage - a single mortgage which covers more than one piece of real estate
• Bond - (1) any obligation under seal. (2) An insurance contract in which an agency guarantees payment to an employer in the event of unforeseen financial loss through the actions of an employee.
• Bookkeeper or Clerk - The person who is responsible for the accounting and paperwork at an auction sale.
• 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.
• 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."
• 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.
• Caravan Auctions - A series of on site auctions advertised through a common promotional campaign.
• 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
• Catalog or Brochure - publication advertising and describing the property(ies) available for sale at public auction
• 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"
• Chattel - personal property or removable fixtures
• Chickens - White Plymouth rocks and look the others up.
• China - Havilland, Nippon, Wedgwood, Bavaris, limoge, Chelsea, canton, bisque"
• Clerk - The person employed by the principal Auctioneer or auction firm to record what is sold and to whom and for what price.
• Clocks - Beehive, Banjo, Black, Carriage, Conn. Wall, Calendar, Conn. Shelf, Cottage and Girandole, grandmother, grandfather, looking glass, Lyre, Pillar and Scroll steeple."
• Closing Statement - an accounting of funds
• 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.
• Commingle - to mingle or mix clients funds in your own personal account.
• Commission - The fee charged to the seller by the Auctioneer for providing services
• Commission - sum due for services
• Community property - property joking of husband and wife living together
• Compound Interest - interest paid on original principal and also in the accrued and unpaid interest
• Conditions of Sale - The legal terms that govern the conduct of an auction
• Contract - An agreement between two or more persons or entities which create or modify a legal relationship.
• Cooperating Broker - A real estate broker who registers a prospective buyer with the auction company
• Cows - (beef) Brahma, Angus, Charlais, Beefalo, Hertford (Milk) Gurnesy, Jersey Holstein"
• Critical Path - leading to desired goals.
• Deed - writing by which lands and hereditaments are transferred, it is signed, sealed, and delivered by the grantor."
• 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.
• Duress - unlawful constraint exercised upon a person where he/she is forced to perform some act or sign, against his/her will"
• Earnest money - down payment
• Encumbrance - a claim, lien, charge, or liability attached to and binding upon real property, such as a judgment, unpaid taxes or right of way"
• Equity - the interest or value which and owner has in real estate over and above the mortgage against it.
• Escrow - a deed delivered to a third person to be held until the fulfillment of some act or condition.
• Estate - the degree, quantity, nature and extend of interest one has in real property"
• 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.
• Executor - a person named in a will to carry out its provisions
• Executrix - a female person named in a will to carry out its provisions
• Furniture - Period, Jacobean, Restoration, William & Mary, Queen Ann, Chippendale, Louis XC, Louis XVI, Hepplewhite, Sheraton, American Federal, Late Federal, Regency, Directoire, American Empire, French, Duncan Phyfee, Early Victorian, Late Victorian, Wicker, Ethan Allen."
• Glassware - pattern, pressed, cut, depression, carnival, milk, tiffaney, satin, mother pearl."
• Grantee - a person to whom real estate is conveyed; the buyer
• Grantor - a person who conveys real estate by deed; the seller
• Grounds man - (See "Bid Assistants")
• Hammer Price - Price established by the last bidder and acknowledged by the Auctioneer before dropping the hammer or gavel.
• Hand money - See Earnest Money
• Hereditaments - the largest classification of property; included lands, tenements, and incorporeal property, such as rights-of-way"
• Hogs - Yorkshire, Look the others up - Baby Pig is a Farrow"
• Horses - Morgan, quarter, and look the others up."
• Installment contract - purchase upon and installment basis; upon default, payments are forfeited."
• Jr Mortgage - a mortgage second in lien to a previous mortgage
• Land Contract - a contract for the purchase of real estate upon and installment basis; upon payment of last installment, deed is delivered to purchaser."
• Lessee - the person who rents under a lease
• Leaser - the person who is the landlord
• Life estate - an estate held during the terms of some certain person's life
• 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 - (1) 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 (2) the highest price a buyer would pay, and the lowest price a seller would accept."
• Memorandum - Sometimes also referred to as a ""Bidder Acknowledgment"
• Mortgage - a conditional transfer of real property as security for the payment of a debit or the fulfillment of some obligation
• Option - the right to purchase or lease a property at a certain price for a certain designated period, for which right a consideration is paid."
• Package Mortgage - one which included personal property within the lien of the mortgage
• Principal Note - the promissory note which is secured by the mortgage or trust deed.
• Prints - currier & Ives
• Property - the right or interest which and individual has in lands and chattels to the exclusion of all others.
• Purchase money mortgage - a mortgage given by a grantee to the grantor in partial payment of the purchase price.
• Quick Claim Deed - a deed given when the buyer (grantee) has complete or partial title to the premises and the seller (grantor) has a possible interest that would constitute a cloud on the title
• Section of Land - 640 acres or one (1) square mile
• Sheep - Cheviot and look the others up.
• Silver - Sheffield, solid sterling, coin, plated, Rogers."
• Standard breed - horse
• Statute of Frauds - required certain contracts relating to real estate such as agreements of sale to be in writing, to be enforceable"
• Subdivision - a tract of land divided into lots suitable for homebuilding purposes.
• Survey - the prices by which a parcel of land is measured and its area ascertained
• Tax Deed - a deed for property sold at public sale by a political subdivision for non-payment of taxes by the owner
• Tax Sale - Public sale of property at auction by governmental authority
• Terms - The period of time that an agreement is in effect.
• Terms and Condition - 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.
• Thoroughbred - horse
• Tie Bids - When two or more bidders bid exactly the same amount at the same time and must be resolved by the Auctioneer.
• Toby - Jugs - English, America, Occupied Japan
• Trustee - a person in whom an estate is vested or granted for the benefit of another person
• Trustee's Sale - A sale at auction by a trustee.
• Trustor - One who deeds his property to a trustee
• Upset Price - Commonly known as the reserve price.
• Vendee - the purchaser
• Vendor - the seller
• Withdrawal - Failure to reach the reserve price or insufficient bidding.
• Without Recourse - to denote that the endorser will not be liable to a future holder, in event of non-payment"

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