TX 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 in which property is sold to the highest bidder regardless of price, with no reserve and no seller right to reject the top bid.
- Reserve auction
- A sale in which the seller sets a minimum price; if bidding does not reach the reserve, the seller may withdraw the property without selling.
- Hammer price
- The amount of the final accepted bid at which the auctioneer closes the sale, before any buyer's premium or taxes are added.
- Buyer's premium
- A percentage added to the hammer price and charged to the winning bidder, typically disclosed in the terms announced before bidding opens.
- Bid calling chant
- The rhythmic, rapid vocal pattern auctioneers use to solicit and acknowledge bids while keeping the pace of bidding steady and clear.
- Jump bid
- A bid higher than the minimum increment the auctioneer requested; the auctioneer acknowledges it as the current highest valid bid.
- Seller's net proceeds
- The amount the seller receives, calculated as hammer price minus seller commission and seller-paid expenses, before any adjustments.
- Auction with reserve
- A sale where the seller reserves the right to accept or reject the final bid, usually tied to a confidential or disclosed minimum price.
- TDLR
- The Texas Department of Licensing and Regulation, the state agency that administers the Auctioneers License Act and adopts rules for licensees.
- Auctioneers License Act
- Texas statute requiring persons who conduct auctions for compensation to be licensed and authorizing TDLR to regulate and discipline licensees.
- License renewal cycle
- The recurring period set by TDLR rule within which a licensee must renew and complete required continuing education to keep the license active.
- Continuing education requirement
- A set number of approved education hours a licensee must complete each renewal cycle, as established by TDLR rule.
- Unlicensed practice
- Conducting auctions for compensation without a current Texas license; it is a violation subject to investigation and disciplinary action by TDLR.
- TDLR complaint process
- TDLR receives and investigates complaints against licensees and may impose sanctions such as reprimand, suspension, revocation, or administrative penalties.
- Bid assistant or clerk
- An unlicensed helper who spots bids or records sales under the supervision of the licensed auctioneer, who remains responsible for the auction.
- License nontransferable
- A Texas auctioneer license belongs to the named individual and cannot be sold, assigned, or used by another person to conduct auctions.
- Consignment agreement
- A written contract listing property for auction that states commission, reserve status, expenses, sale date, and settlement terms.
- Reserve disclosure
- The requirement that an auction be accurately described as reserve or absolute; advertising an absolute sale when a reserve exists misrepresents the terms.
- Buyer's total cost
- The amount a buyer pays, calculated as hammer price plus buyer's premium plus applicable sales tax and any disclosed fees.
- Dual agency disclosure
- Disclosure that the auctioneer represents or receives compensation from both seller and buyer, or has an ownership interest in the property.
- Deceptive Trade Practices Act
- Texas consumer protection law that prohibits false, misleading, or deceptive acts, including misrepresenting goods or auction terms.
- Material terms announcement
- Terms announced before bidding, such as payment methods, deposits, removal deadlines, buyer's premium, and reserve status, which bind the sale.
- Condition disclosure
- The duty to accurately describe property and disclose known material defects so buyers are not misled about what they are bidding on.
- Written listing agreement
- A contract identifying the property, sale date, commission, reserve, and settlement timeline, signed by the seller before the auction.
- Trust funds
- Money held for others, such as buyer deposits and proceeds owed to sellers, which must be kept separate from the licensee's operating funds.
- Commingling prohibited
- Mixing trust money with personal or business operating funds is not allowed; trust accounts must be separately maintained and reconciled.
- Settlement statement
- A written accounting given to the seller showing hammer prices, commissions, fees, expenses, and the net amount disbursed.
- Record retention period
- The length of time set by TDLR rule that a licensee must keep contracts, transaction records, and trust account records available for inspection.
- Bidder registration number
- A numbered card or credential issued to each registered bidder so clerks can record bids and tie each sale to a specific buyer.
- Cash reconciliation
- The close-of-auction process of matching cash and receipts collected against recorded sales and deposits to detect discrepancies.
- Deposit as trust money
- Buyer deposits and premiums collected before settlement are held in trust until earned or disbursed according to the contract terms.
- Registered business address
- The current address a licensee keeps on file with TDLR, where records are maintained and official notices are sent.