FL Auctioneer flashcards
FL Auctioneer · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Absolute auction
- An auction in which the property is sold to the highest bidder regardless of price, with no reserve and no seller right to reject the high bid.
- With-reserve auction
- An auction in which the seller may reject bids below a stated reserve price; the auction must be conducted and advertised as with reserve.
- Bid calling
- The auctioneer's oral process of recognizing bidders, setting or accepting increments, encouraging competitive bidding, and closing the sale by announcing sold.
- Reserve price
- The minimum price set by the seller before bidding that the seller is willing to accept; bids below it may be rejected in a with-reserve auction.
- Shill bidding
- Bids placed by the seller or the auctioneer's agent to artificially raise the price; prohibited unless clearly disclosed as a seller bid.
- Buyer's premium
- A disclosed percentage or fee added to the high bid and paid by the buyer; it must be announced before bidding and stated in advertising.
- Hammer price
- The final high bid at which the auctioneer closes the bidding; the buyer's premium and taxes may be added to determine total cost.
- Tie bid rule
- A procedure announced before bidding to resolve equal bids, such as reopening bidding or awarding by lot; it prevents disputes at closing.
- Florida Board of Auctioneers
- The board within the Department of Business and Professional Regulation that regulates auctioneers and auction businesses under Chapter 468, Part VI, Florida Statutes.
- Auctioneer license
- A Florida credential required for an individual to conduct auctions for compensation; issued by DBPR after meeting education, examination, and background requirements.
- Auction business license
- A Florida credential required for an entity operating an auction business; the business must employ or be owned by a licensed auctioneer as required.
- Unlicensed practice
- Conducting an auction for compensation without a valid Florida auctioneer or auction business license; subject to cease-and-desist orders and disciplinary penalties.
- Continuing education
- Board-approved coursework required for license renewal; Florida auctioneers must complete the required hours during each renewal cycle, including laws and rules.
- License renewal cycle
- Florida auctioneer licenses are renewed biennially under board rule; renewal requires timely application, fees, and completion of continuing education.
- Advertising rules
- Auction advertising must be truthful and include the licensed auctioneer or business name and material terms, including reserve status and buyer's premium if charged.
- Disciplinary grounds
- Fraud, misrepresentation, false advertising, unlicensed activity, recordkeeping failures, and other violations for which the Board may fine, suspend, or revoke a license.
- Written auction contract
- A signed agreement between seller and auctioneer or auction business made before the auction; it states the property, date, terms, fees, reserve status, and settlement.
- Contract disclosure items
- Material terms the auction contract must state, including commission, buyer's premium, reserve status, payment, removal deadlines, and settlement responsibilities.
- Auction record retention
- Florida requires auction businesses to keep records of each auction for at least two years, including seller, buyer, bid, and settlement information.
- Trust account
- A separate bank account for client funds such as earnest money or auction proceeds; it must not be commingled with the auctioneer's operating or personal funds.
- Buyer's premium disclosure
- The buyer's premium must be stated in advertising and announced before bidding so bidders know the total price includes the high bid plus the premium.
- Settlement statement
- A closing accounting that lists the high bid, buyer's premium, commissions, fees, taxes, and net proceeds due to the seller.
- Bidder registration
- The process of recording a bidder's identity and issuing a bid number; it creates an audit trail for bids, invoicing, and dispute resolution.
- Commission disclosure
- The auctioneer's compensation must be stated in the written contract and may not include undisclosed payments from both seller and buyer for the same service.
- Fiduciary duty
- A legal obligation of loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care owed by an agent such as an auctioneer to the principal.
- Escrow agent
- A neutral party holding funds or documents for others until contractual conditions are met; the agent must safeguard and account for the escrow.
- Commingling
- Mixing client escrow funds with the auctioneer's personal or operating funds; prohibited because it risks loss and prevents clear accounting.
- Conflict of interest
- A situation where the auctioneer's personal or financial interest could affect the principal's interest; it must be disclosed and managed or avoided.
- Confidentiality
- The fiduciary duty not to disclose the principal's financial, personal, or business information except as authorized, required by law, or necessary to perform.
- Unauthorized practice of law
- Drafting legal documents or giving legal advice without a law license; auctioneers should use approved forms and refer legal questions to attorneys.
- Earnest money
- A deposit paid by the buyer to show good faith; in auctions it should be handled under the contract and, if held in escrow, kept separate.
- Accounting duty
- The fiduciary obligation to keep accurate records of all funds received and disbursed and to provide a timely accounting to the principal or buyer.