Consignment, Seller Representation, and Listing Practices
Consignment, Seller Representation, and Listing Practices tests the auctioneer agency relationship with the seller and the accuracy of the listing. The consignment agreement is the foundation: it should identify the property, commission, buyer premium, reserve or absolute status, withdrawal and unsold fees, insurance, settlement timing, and the seller authority to sell.
Seller duties and auctioneer duties
- The seller warrants clear title and must disclose known liens, encumbrances, defects, and restrictions. The auctioneer must not list property in a way that overstates condition, provenance, or rights.
- If the sale is absolute, advertising and the contract must say so; a reserve cannot be introduced later. If a reserve exists, the auctioneer should explain that bids below it may not buy the property.
- Listing claims should be supportable: signed, attributed to, working, original, and complete have different meanings. Material exclusions and inspection limits belong in the terms, not in fine print after the bid.
Worked example
A seller says a tractor runs great but privately tells the auctioneer the transmission slips. The auctioneer lists it as runs great without qualification. The private knowledge creates a misrepresentation risk; the listing should state the known transmission issue or avoid the affirmative claim. An as-is clause does not license a known false statement.
Traps
Relying on an oral consignment; treating the seller description as verified fact; advertising absolute when the seller intends to protect a reserve; hiding a withdrawal fee or commission in the terms.