NH Auctioneer cheat sheet

Absolute auction: no reserve, no minimum bid, no seller confirmation; property sells to the highest bidder regardless of price. Reserve auction: seller may reject the high bid below a stated reserve.

With reserve, the auctioneer may open bidding at any amount, but cannot withdraw the property after a bid is accepted unless the seller's reserve is not met.

Bid increments: the auctioneer sets the increment; a bidder may bid any higher amount, but the auctioneer may refuse a bid that is not a recognized increment.

Hammer price is the final bid amount; buyer's premium is added to the hammer price to determine the total contract price; sales tax applies to the total unless exempt.

Terms: "lot" is a single item or group sold as one unit; "choice" allows the high bidder to select from multiple identical lots; "times the money" multiplies the bid by the quantity.

Bidder number/paddle identifies a registered bidder; the auctioneer's acceptance of a bid creates a contract under the Uniform Commercial Code for goods and under real estate law for land.

Auctioneer chant/tone: the rhythmic call is a style, not a legal requirement; clarity of the bid amount and the final call ("going once, going twice, sold") is what establishes acceptance.

Ringman/groundsman: assists by spotting bids and relaying them to the auctioneer; the auctioneer is responsible for recognizing and accepting bids.

Tie bids: the auctioneer has discretion to reopen bidding or declare the first recognized bid the winner; the auctioneer's determination is final if made in good faith.

New Hampshire regulates auctioneers under RSA 311-B (Auctioneers) and the rules of the Board of Auctioneers within the Office of Professional Licensure and Certification (OPLC).

License required: no person may conduct an auction for compensation without a valid NH auctioneer license; auction businesses must hold a firm/company license and designate a licensed auctioneer.

Eligibility: applicant must be at least 18, complete board-approved education (e.g., a specified number of classroom hours), pass the examination, and submit to a criminal background check.

License renewal: NH auctioneer licenses renew on a biennial cycle; continuing education hours (board-set) are required for renewal, and late renewal may require a fee and proof of CE.

Reciprocity: the Board may license by reciprocity/endorsement from a state with substantially equivalent requirements; the applicant must still comply with NH law and pay fees.

Unlicensed practice and false representation of licensure are grounds for discipline; the Board may impose fines, suspension, revocation, or probation.

Records: licensees must keep auction records (contracts, settlement statements, bidder registrations) for the period set by statute/rule and make them available to the Board on request.

Advertising must include the licensed name of the auctioneer/firm; misleading or false advertising is a violation and may be prosecuted under consumer protection statutes (RSA 358-A).

Auction listing/consignment agreement should be in writing and state: seller identity, property description, reserve or absolute status, commission, buyer's premium, expenses, and settlement timeline.

Disclose the buyer's premium, sales tax, payment methods, removal deadlines, and any condition reports before bidding; hidden fees can violate the duty of fair dealing and RSA 358-A.

Reserve must be disclosed as "with reserve" in advertising and at the auction; if the auction is advertised as absolute, the seller cannot later impose a reserve.

Seller disclosure: known material defects must be disclosed; for real estate, NH requires a seller's property disclosure form for residential property (RSA 477:4-d) unless exempt.

Auctioneer must disclose any interest in the property (e.g., auctioneer is also an owner or agent) and any compensation from both buyer and seller.

As-is/where-is sales are permitted if clearly stated; disclaimers of warranty must be conspicuous and cannot override mandatory disclosures or unconscionable terms.

Consumer protection: RSA 358-A prohibits unfair or deceptive acts; misrepresenting an item's authenticity, condition, or the auction terms is a violation and may support a private action.

Contract formation: the bid is an offer; the fall of the hammer is acceptance; the buyer is bound to pay the full contract price (hammer plus premium plus tax) under the announced terms.

Segregate trust funds: auctioneer must deposit client/consignment proceeds and buyer deposits in a dedicated trust or escrow account, not commingled with operating funds.

Settlement statement: provide seller a written accounting showing hammer price, buyer's premium (if seller-paid), commissions, expenses, taxes, and net proceeds.

Disburse seller proceeds only after buyer funds have cleared and title/ownership is confirmed; hold funds in trust until conditions are met.

Recordkeeping: maintain bidder registration, bid records, contracts, settlement statements, and bank records for the statutory retention period; produce on Board request.

Sales tax: collect NH meals and rooms/other applicable tax on taxable auction sales; remit to the NH Department of Revenue Administration; keep exemption certificates.

Buyer default: follow the announced terms; typically the auctioneer may resell the lot and hold the defaulting bidder liable for any deficiency plus costs, or retain the deposit as liquidated damages if stated.

Cash handling: issue numbered receipts, reconcile daily, and never use trust funds for personal or business expenses; shortages are grounds for license discipline.

Online auctions: same trust and disclosure duties apply; clearly state the platform, bidding deadlines, extended bidding/soft close rules, and payment/removal terms.