Auction Terminology Quiz

Auction Terminology: Vocabulary and Definitions

• AS-IS refers to selling a property without warranties as to its condition or fitness for a particular use, and buyers are responsible for examining the property.

• An absentee bid allows a bidder to participate in an auction without physically being present.

• An absolute auction is one where property is sold to the highest bidder without limitations or reserve prices.

• An acceleration clause in a mortgage or lease states that the entire balance is due upon default of a payment.

• An appraisal is an estimate of the value, quantity, or quality of a property.

• A buyer's premium is an additional fee added to the high bid to determine the total contract price.

• Bid assistants, also known as ringmen or bid spotters, help the auctioneer by spotting bidders and providing information.

• Bid rigging is the unlawful practice of two or more people agreeing not to bid against each other to deflate the value of merchandise.

• A deed is a written document that transfers land or hereditaments from a grantor to a grantee.

• A life estate is an estate held during the lifetime of a certain person.

• A market value is the highest price in a competitive and open market.

• A listing agreement authorizes an auctioneer to conduct an auction and sets out the agreement's terms and the parties' rights and responsibilities.Real Estate Auction Terminology

• Real estate auction is a process of selling a property to the highest bidder in an open and competitive market.

• The market value of a property is the highest price a buyer would pay and the lowest price a seller would accept.

• A bidder acknowledgement form is executed by the high bidder confirming the bid price and the property's description.

• Mortgage is a conditional transfer of real property as security for the payment of a debt or obligation.

• Option is the right to purchase or lease a property at a certain price for a designated period.

• Principal note is the promissory note secured by the mortgage or trust deed.

• A reserve auction is an auction in which the seller reserves the right to accept or decline any or all bids.

• Subdivision is a tract of land divided into lots suitable for homebuilding purposes.

• Tax sale is a public sale of property at auction by governmental authority due to non-payment of taxes by the owner.

• Trustee's sale is a sale at auction by a trustee.

• Upset price or reserve price is the minimum acceptable price set by the seller in a reserve auction.

• Withdrawal is the failure to reach the reserve price or insufficient bidding in a reserve auction.