"As Is"

Selling the property without warranties as to the condition and/or fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as "As Is, Where Is" and "In its Present Condition."

Auction

A method of selling real estate in a public forum through open and competitive bidding.

Absentee Bid

A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on an real estate prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or representative. The particular rules and procedures of absentee bids are unique to each auction company.

Absentee Bidder

A person (or entity) who does not attend the sale but submits, in advance, a written or oral bid that is the top price he or she will pay for a given property.

Buyer's Premium

An advertised percentage of the high bid or flat fee added to the high bid to determine the total contract price to be paid by the buyer.

Bidder Package

The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction. Sometimes called a bidder packet or due diligence package.

Broker Participation

An arrangement for third-party brokers to register potential bidders for properties being sold at auction for a commission paid by the owner of the property or the auction firm.

Commission

The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property established by contract (the listing agreement) prior to the auction.

Due Diligence

The process of gathering information about the condition and legal status of assets to be sold.

Terms and Conditions

The printed rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale.