FL Auctioneer cheat sheet

Absolute auction: no reserve exists, so the property sells to the highest bidder regardless of price and the seller cannot reject the high bid.

With-reserve auction: the seller may reject bids below a stated reserve price; the auction must be conducted and advertised as a with-reserve sale.

A bid is accepted when the auctioneer announces “sold” or closes the bidding by the fall of the hammer or equivalent clear signal.

Bid calling includes recognizing bidders, setting or accepting increments, encouraging competitive bidding, and clearly closing the sale.

Shill bidding is prohibited: the auctioneer may not accept phantom bids from the seller or the auctioneer’s agent to drive up price unless the bid is disclosed as a seller bid.

Tie bids should be resolved by a rule announced before bidding, such as reopening bidding or awarding by lot, to prevent closing disputes.

The auctioneer must clearly announce material terms before bidding: buyer’s premium, payment method, removal deadlines, taxes, and absolute or reserve status.

Bidder registration and bid-number assignment create an audit trail linking each bid to an identified bidder and the resulting invoice.

Florida auctioneer regulation is in Chapter 468, Part VI, Florida Statutes, administered by the Department of Business and Professional Regulation and the Board of Auctioneers.

An individual must hold a Florida auctioneer license to conduct auctions for compensation; an auction business must hold a separate auction business license.

Auctioneer licensure requires meeting statutory qualifications, including age, education, board-approved coursework, examination, and any required background screening.

Auctioneer licenses are renewed biennially under board rule, and renewal requires timely fees, application, and completion of required continuing education.

Unlicensed auction practice is subject to cease-and-desist orders, fines, and other penalties, and licensed auctioneers may be disciplined for aiding unlicensed activity.

The Board may discipline licensees for fraud, misrepresentation, false advertising, recordkeeping failures, escrow violations, and other statutory violations.

Statutory exemptions exist for certain government, judicial, charitable, or regulated sales; the specific exemption must be verified before relying on it.

Licensees must keep DBPR informed of required changes, such as address changes, and must comply with board rules on advertising and license identification.

A written auction contract signed by the seller and the auctioneer or auction business must be made before the auction and must state the material terms.

The auction contract should identify the seller, auction date, time, location, property, commission and fees, reserve status, payment terms, and settlement responsibilities.

Auction records must identify the seller, buyer, bid amounts, terms, and settlement details; Florida requires retention of auction records for at least two years.

Client funds such as earnest money or auction proceeds must be deposited promptly into a separate trust or escrow account and not commingled with operating funds.

Auction advertising must be truthful and must state material terms, including whether the auction is absolute or with reserve and whether a buyer’s premium is charged.

The auctioneer’s commission and fees are earned according to the written contract, and undisclosed compensation from both seller and buyer for the same service is prohibited.

A buyer’s premium must be disclosed in advertising when charged and announced before bidding so bidders can calculate the total purchase price.

Clerk sheets, bidder records, invoices, and settlement statements support accurate accounting and help resolve bid or payment disputes.

An auctioneer acting as agent owes fiduciary duties of loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care to the principal.

The agency relationship should be established in writing; absent disclosure otherwise, the auctioneer generally represents the seller, not the buyer.

An escrow agent must keep escrow funds separate from personal and business funds and must not commingle client money with operating money.

Escrow funds may be disbursed only according to the contract, written authorization, or law, and a ledger must account for each transaction.

Conflicts of interest, including any personal interest in the property or buyer, must be disclosed and managed or avoided.

Auctioneers may not engage in the unauthorized practice of law; they should use approved forms and refer legal document drafting and legal advice to an attorney.

In real estate auction closings, the auctioneer coordinates with the closing agent or title company and ensures earnest money is handled as the contract requires.

Seller and buyer financial information must remain confidential except as authorized by the principal, required by law, or necessary to complete the transaction.