AL Auctioneer flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Alabama Auctioneers Commission

The state body within the Alabama Department of Agriculture and Industries that licenses auctioneers and auction companies and enforces auction law.

License requirement to auction

No person may conduct or advertise an auction in Alabama without a current license issued by the Alabama Auctioneers Commission.

Minimum age to license

An applicant for an Alabama auctioneer license must be at least eighteen years old and of good moral character.

License renewal

An Alabama auctioneer license must be renewed before expiration; practicing on an expired license is treated as unlicensed practice.

Grounds for discipline

Fraud, misrepresentation, failure to account for funds, and unprofessional conduct can lead to reprimand, suspension, or revocation of license.

Auction company license

An auction business must be licensed and must designate a licensed auctioneer responsible for the auctions it conducts.

Place of business reporting

A licensed auctioneer must keep a principal place of business on file with the Commission and report address changes promptly.

Unlicensed auctioneering penalty

Conducting an auction without a license exposes the person to administrative sanctions and criminal penalties under Alabama law.

Fall of the hammer

The auctioneer's declaration of 'sold' or fall of the hammer accepts the highest bid and forms a binding contract with that bidder.

With reserve

A sale with reserve lets the seller reject the highest bid if it falls below a stated minimum price set before the auction.

Without reserve

A no-reserve sale requires the property to be sold to the highest bidder regardless of how low the final price is.

Bid retraction

A bidder may not retract a bid once the auctioneer has accepted it; acceptance binds the bidder to the terms of sale.

Chandelier bidding

Fictitious bids called from the podium without a real bidder are prohibited; every bid must come from a real bidder or agent.

Bid increments

The auctioneer sets the increments by which bids advance and may refuse bids that do not conform to the announced increments.

Terms of sale announcement

Terms announced before bidding, including buyer's premium and payment timing, become part of the contract with participating bidders.

Absentee bid handling

Phone, online, and absentee bids must be documented and executed in the order received, with the auctioneer acting as the bidder's agent.

Auction sale record

For each lot the auctioneer records the item, buyer, sale price, and date to support settlement and resolve later disputes.

Listing agreement

The written contract between seller and auctioneer stating commission, reserve, sale date, and settlement terms for the auction.

Auctioneer as seller's agent

The auctioneer represents the seller and owes duties of loyalty, confidentiality, disclosure, and accurate accounting of sale proceeds.

Buyer's premium

A contractual charge added to the hammer price and paid by the buyer, which must be disclosed in the terms of sale.

Dual agency disclosure

An auctioneer may not represent both buyer and seller in one transaction without full written disclosure and consent of both parties.

Personal interest disclosure

An auctioneer must disclose any ownership or financial interest in property being auctioned before accepting bids on that property.

Fiduciary accounting duty

A fiduciary auctioneer must keep client funds separate from personal funds and provide an accounting of those funds on request.

Termination of agency

The agency relationship ends when the sale closes, the listing expires, the seller revokes, or either party dies or becomes incapacitated.

Seller net proceeds

Net proceeds equal hammer price minus commission, expenses, and any charges, as itemized on the settlement statement to the seller.

Trust account requirement

Client deposits and sale proceeds held for others must be kept in a separate trust or escrow account, never commingled with operating funds.

Trust account reconciliation

Trust records must show the source, date, and disposition of each deposit and disbursement and reconcile to the bank statement.

Record retention period

Auctioneers must retain contracts, settlement statements, transaction records, and trust records for the period the Commission requires.

Settlement statement contents

A settlement statement itemizes hammer price, buyer's premium, commission, expenses, and net proceeds payable to the seller.

Sales tax remittance

Sales tax collected on taxable auction sales must be accounted for separately and remitted as required by Alabama tax law.

Commission record inspection

Business and trust records must be produced for Commission inspection on request; refusal to produce them is a disciplinary ground.

Trust account overdraft

A trust account shortage, overdraft, or unauthorized transfer is a reportable event and grounds for suspension or revocation of the license.