Below is an incomplete glossary of real estate auction terms developed by NAR`s Real Estate Auction Committee, the National Auctioneers Association and the Auction Marketing Institute. Although it is a real estate glossary, most of the terms apply to all types of auctions. Tie bids: When two or more bidders bid the exact same amount at the same time and must be resolved by the auctioneer. For the broker, the advantages of offering real estate to the public are numerous. Your participation will receive maximum and immediate attention. A significant new market of potential buyers is becoming aware that the property is available. The duration of the advertisement is limited to the date of the auction. Sellers have a fixed purchase contract with no contingencies and avoid paying expensive settlement fees. The broker`s participation in commissions is ensured. Most importantly, your client`s goals of selling the property are achieved and you, the broker, can take advantage of the recommendation of the public auction. Real estate sale: The sale of property left by a person at the time of death. A real estate auction may involve the sale of personal and/or real estate property.
In Maryland, unlike other states, there is no right of return of the debtor on the seized property. Once the auction is completed and the sale is ratified, the right of equity passes to the buyer and the legal title passes with the settlement. The property is sold free and free of any privileges, unless otherwise stated. New buyer financing is often available below market prices. Auctioneer: The person the seller hires to direct, conduct or be responsible for an auction. This person may actually call the auction or not call or cry. Contract: An agreement between two or more natural or legal persons that establishes or modifies a legal relationship. Auction Marketing: The method of marketing real estate using the auction method. Bank Letter of Credit: Sometimes referred to as a bank letter of guarantee.
A letter from a bank certifying that a designated person is worthy of a certain level of credit. Often requested by potential bidders or buyers who do not pay with currency at auction. Brokers and agents are of great value to the public, especially when they help buyers and sellers achieve real estate goals. However, some members of the public take advantage of the officers. They learn what they need to know about real estate and don`t come back when they decide to buy. Clerk: The person hired by the senior auctioneer or auction company to record what is being sold and to whom and at what price. Memorandum: Sometimes referred to as “Bidder`s Acknowledgement of Receipt” or “Broker`s Acknowledgement of Receipt,” the memorandum is signed by these parties either on the auction floor or in the contract room. Opening Bid: The first bid made by a bidder at an auction.
National Auctioneers Association: An association of individual auctioneers who have joined forces to promote the mutual interests of their members; formulate and maintain ethical standards for the auctioneer profession; promote the adoption of fair and proportionate laws, regulations and regulations that affect the auction; raise public awareness of the benefits of auctions; and, in general, to improve the terms and conditions relating to the profession of auctioneer. Auction Registration Agreement: A contract entered into by the auctioneer and the seller that authorizes the auctioneer to conduct the auction and sets out the terms of the agreement and the rights and obligations of each party. Conditions: The period during which an agreement is in force. Bankruptcy auctions are similar to foreclosures in that they are in a distress situation. Free and clear title is also guaranteed, but no ratification by the bankruptcy court is required. Invoicing deadlines, deposits and conditions of sale will be announced before the auction, as in the case of a seizure. Terms of Sale: The legal terms governing the conduct of an auction, including acceptable payment methods, terms, buyer`s rewards, ownership, reserves, and other limiting factors of an auction. Usually included in ads published or advertised by the auctioneer before the auction begins. Reserve Auction: An auction in which the seller reserves the right to set a minimum price, accept or reject all offers or withdraw the property at any time prior to the auctioneer`s announcement of the finalization of the sale. See also auction with reservation. This agreement between the name of the intermediary (“listing agent”) and the name of the owner (“seller”), the owner of the above property, establishes the agreement under which the listing agent will conduct an online auction program for the property on RealtyBid.com.
This Agreement is attached to the current and active Registration Agreement by and between the Listing Agent and the Seller and becomes part of this Agreement. The terms of the agreement are as follows: RealtyBid.com will be granted exclusive rights to the market during the fourteen (14) day period during which the property is offered on the RealtyBid.com. If the property is sold during this period, a fee will be charged RealtyBid.com, as described below, as the cause of supply for the sale. Commission: The fees charged to the seller by the auctioneer for the provision of services, usually a percentage of the gross sale price of the property contractually agreed before the auction (the listing contract). Auctions are usually advertised more widely than privately negotiated transactions due to time constraints. The normal promotion period is two to three weeks before the auction date. Catalog or brochure: A publication that promotes and describes properties for sale at a public auction, often including photos, property descriptions, and terms of sale. The price of a property obtained by the auction marketing method. Auction: The indication or offer of a potential buyer on a price that he will pay for the purchase of a property at an auction. Auctions are usually made in standardized stages that are determined by the auctioneer.
Ownership contracts are also pre-written. Usually, if the adjustment of expenses is made from the date of sale, the buyer is immediately taken possession of it. If expenses are adjusted for billing, possession will be delivered at that time. Ballroom Auction: Auction of one or more properties held in a meeting room. Auction price: Price set by the last bidder and confirmed by the auctioneer before dropping the hammer or hammer. The commissions charged by auctioneers also vary, but are generally in the same range as those of brokers. In the event that the property is not auctioned, a pre-agreed minimal cancellation fee plus advertising fees will be charged. Most brokers realize that a signed buyer listing contract generates the maximum financial return on the effort, money and talent that an agent invests when representing someone interested in buying a property. [See Form RPI 103] The auctioneer you recommend as a referral broker reflects your judgment and skills. The professional you choose must be well trained in the field of real estate.
Many practicing auctioneers are other real estate agents and should be willing and able to document past successes. Grouping: Sometimes referred to as multi-par or multi-plot: A procedure used in real estate auctions where a bidder has the ability to combine multiple plots previously selected by other bidders, thus creating a larger plot from several smaller plots. This procedure is often used in the context of the choice of tenderer. Auction Value: The price that a particular property brings to a public auction as part of an open bidding process. If the buyer has chosen a particular property and no prior fee agreement has been agreed in writing, the agent must enter into a written individual property purchase agreement. Absenteeism offer: A procedure that allows a bidder to participate in the tendering process without being physically present. Typically, a bidder makes an offer for an item before the auction. Auction letters are usually processed by the auctioneer or his representative in accordance with established guidelines.
The special rules and procedures for absentee bids are unique to each auction company. The property may (1) be sold at absolute auction to the highest bidder, regardless of the price; (2) with a minimum reserve price put out to tender; or (3) with a confidential and undisclosed reserve price. .