Glossary of Auction Terms
       The following is a glossary of auction terms developed by the
National Auctioneers Association and the Auction Marketing Institute.

                      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.

                      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.

                      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.

                                           A person who acts for or in the place of
                                           another individual or entity by authority from

                                           The act or process of estimating value.

                      Apprentice Auctioneer
                                           An auctioneer who is in training, operating
                                           under the supervision of a licensed or
                                           experienced auctioneer.

                      "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, Where Is" and
                                           "In its Present Condition."

                                           A method of selling property in a public forum
                                           through open and competitive bidding. Also
                                           referred to as: public auction, auction sale or

                      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.
                                           actually conduct the sale but is directly
                                           responsible for all aspects of marketing the

                      Auction Plan
                                           The plan for pre-auction, auction day and
                                           post auction activities.

                      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.

                                           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.

                      Auctioneer Subcontractor
                                           An auctioneer hired by the principal

                      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

                                           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
                                           identity, 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
                                           ringmen, bid consultants, bid spotters, or                                                   groundsmen.

                      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

                      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.

                      Bookkeeper or Clerk
                                           The person who is responsible for the
                                           accounting and paperwork at an auction sale.

                      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
                      Catalog 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.

                      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

                                           The person employed by the principal
                                           auctioneer or auction firm to record what is
                                           sold and to whom and for what price.

                                           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

                                           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.

                      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

                                           An agreement between two or more persons
                                           or entities which creates or modifies a legal

                      Critical Path
                                           Sequence of key tasks to be done by auction
                                           contractor or other designated parties on
                                           specified dates, leading to desired goals.

                      Due Diligence
                                           The process of gathering information about
                                           the condition and legal status of assets to be

                      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.

                      Graduate, Personal Property Appraiser (GPPA)
                                           The professional designation awarded by the
                                           Auction Marketing Institute to qualified
                                           property appraisers who meet the
                                           educational and experiential requirements of
                                           the Institute and who adhere to a strict code
                                           of ethics and standards of practice.

                                           See Bid Assistants.

                      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.

                      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.
                      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

                                           Specified date and time property is available
                                           for prospective buyer viewing and audits.
                                           Also known as Inspection.

                                           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

                      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.
                      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.

                      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.



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