North Carolina Auction Information PDF

Buyer’s Premium is often used in auctions as In nearly all instances, an auctioneer is re- a form of payment for the person or company quired to pay over proceeds from an auction conducting the auction. A buyer’s premium is sale within 30 days of coming into receipt of an advertised percentage...

Buyer’s Premium is often used in auctions as In nearly all instances, an auctioneer is re- a form of payment for the person or company quired to pay over proceeds from an auction conducting the auction. A buyer’s premium is sale within 30 days of coming into receipt of an advertised percentage of the high bid or flat those proceeds. fee added on to the high bid to determine the total price to be paid by the buyer. At or before the time of all final settlements, the auctioneer must provide the seller or con- The existence of a buyer’s premium in an signor with a settlement statement, which in- auction (if one is to be collected), the cludes a description of all goods sold, the sell- calculation method, and a designation as to ing price of the goods sold, the net proceeds who is to receive any collected buyer’s due to the seller or consignor, the name and premium are all issues that should be address of the person receiving the disburse- addressed in the auction contract. ment, and the amount of the disbursement. Auctioneers are required to create and retain All settlement statements must be signed by consignment records and also sales records. the licensee or the licensee’s agent and also by NORTH CAROLINA AUCTION INFORMATION FOR CONSUMERS the person receiving the disbursement. NORTH CAROLNA AUCTIONEER LICENSING BOARD NORTH CAROLNA AUCTIONEER LICENSING BOARD This brochure has been created by the NC Exemption details and other specifies of North There are generally two different types of Auctioneer Licensing Board as a general Carolina auctioneering laws and rules can be auctions: guide for consumer information regarding found in NCGS 85B and 21 NCAC 4B. Reserve Auction: auctioneering in North Carolina. It is not A “reserve” auction intended to be an exhaustive source of Those laws and rules can be reviewed by visit- means that a price has been set between the information, nor should it be relied upon as ing www.NCALB.org. You can also search seller and auctioneer that must be met to legal advice. for a licensee at that website by name, license complete the sale. Reserves are often used number, or county. to provide the seller with security that they NCALB staff is eager to address any general auction questions that you may have. will receive at least a certain amount of monAn auctioneer has a fiduciary duty to the sell- ey if their property is sold. Reserve amounts er. This means the auctioneer is an agent for may or may not be disclosed to bidders. the seller and must act in the best interest of the seller while engaging legally, ethically, and in Absolute Auction: An “absolute” auction is good faith with all parties. an auction where the property is sold to the highest bidder. There is not a minimum or Every North Carolina auction must be conduct- reserve price that must be met to complete Most auction sales (whether live, online, sim- ed according to the terms and conditions the auction sale. The seller may not bid per- ulcast, etc.) of property that is located in North agreed upon between seller and auctioneer in a sonally or through an agent. Carolina require a valid and Active Auctioneer written contract. License or Auction Firm License issued by the NC Auctioneer Licensing Board (NCALB). There are a few exceptions to the licensure requirements.