MS Auctioneer flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Absolute Auction
- An auction without a reserve where the property sells to the highest bidder regardless of price; the seller cannot reject the high bid or withdraw after bidding begins.
- Reserve Auction
- An auction in which the seller may reject the highest bid if it falls below a stated minimum reserve price; the reserve must be disclosed in the terms of sale.
- Buyer's Premium
- A percentage added to the hammer price and charged to the buyer; it must be disclosed in advertising and the terms of sale before bidding begins.
- Hammer Price
- The final bid amount at which the auctioneer declares the lot sold, before any buyer's premium or applicable taxes are added.
- With Reserve Default
- Under the UCC, an auction sale of goods is presumed to be with reserve unless the goods are expressly put up without reserve.
- No-Reserve Withdrawal Rule
- In a no-reserve auction, goods cannot be withdrawn after the auctioneer calls for bids unless no bid is made within a reasonable time.
- Seller Bidding at Auction
- At a with-reserve auction the seller may bid only if notice is given; at a no-reserve auction the seller may not bid at all.
- Shill Bidding
- Bidding by the seller, auctioneer, or their agents to artificially inflate the price; it is prohibited and may void the sale.
- Auctioneer as Agent
- The auctioneer generally acts as the seller's agent, owing fiduciary duties of loyalty, disclosure, obedience, confidentiality, and accounting.
- Dual Agency Disclosure
- Acting for both buyer and seller requires full written disclosure and the informed consent of both parties; otherwise a prohibited conflict exists.
- Bid as Offer
- Each bid is an offer to buy; the auctioneer's acceptance, by hammer fall or declaration of sold, creates a contract between seller and buyer.
- Auction Listing Agreement
- The written contract between seller and auctioneer stating commission, reserve, advertising, expenses, and the seller's warranties of title.
- Trust Account Commingling
- Mixing client earnest money or deposits with the auctioneer's business funds; prohibited and grounds for license discipline.
- Settlement Statement
- A written accounting to the seller itemizing hammer price, buyer's premium, commission, expenses, and the net proceeds payable.
- Escrow Disbursement Authorization
- Release of escrowed funds requires proper written authorization, such as a signed closing statement, court order, or mutual release.
- Record Retention
- Auctioneers must keep trust, sale, and settlement records for the period set by the Commission and make them available for audit.
- Fiduciary Duty of Loyalty
- The auctioneer must act in the principal's best interest, avoid self-dealing, and disclose any personal interest in the property being sold.
- Material Misrepresentation
- A false statement about property, value, or terms that induces a bidder to act; it is prohibited, unlike tolerated sales puffery.
- Confidential Reserve Information
- The seller's reserve or bottom-line price is confidential and must not be disclosed to bidders by the auctioneer or staff.
- Unfair Trade Practice
- Deceptive advertising, bid rigging, shill bidding, or undisclosed fees that harm consumers and violate Mississippi consumer protection law.
- Absolute Advertising Rule
- Advertising a sale as absolute when a reserve exists is deceptive, may void the sale, and exposes the auctioneer to discipline.
- Online Auction Disclosure
- Online auctions must clearly state bidding rules, closing times, extension policies, payment terms, and buyer's premium before bidding.
- UETA Electronic Signatures
- Mississippi's adoption of the Uniform Electronic Transactions Act makes electronic records and signatures generally valid for auction transactions.
- Mississippi Auctioneer License
- A credential issued by the Mississippi Auctioneer Commission required before calling bids for compensation in the state.
- Continuing Education Requirement
- License renewal requires completion of approved continuing education hours and payment of fees before the license expiration date.
- License Discipline
- The Commission may investigate complaints, hold hearings, and impose fines, suspension, or revocation for violations of auction law.
- General Warranty Deed
- A deed in which the grantor warrants title against all claims; auction terms for real estate should specify which deed will be delivered.
- Quitclaim Deed
- A deed conveying only whatever interest the grantor may have, with no warranty; common in foreclosure or tax sale auctions.
- Earnest Money Deposit
- Funds paid by the successful bidder to bind a real estate auction contract, held in escrow and applied to the purchase price at closing.
- Errors and Omissions Insurance
- Professional liability coverage protecting the auctioneer against claims of negligence or mistakes in conducting auctions and handling funds.
- Surety Bond
- A bond that may be required by the Commission to protect clients against trust account defaults or fiduciary breaches by the licensee.
- Risk Management Plan
- Documented procedures covering contracts, bidder registration, inspections, insurance, and contingencies for weather, technology, and disputes.