Reserve Auction: an auction in which the seller or an agent of the seller
reserves the right to establish a stated minimum bid, the right to reject or
accept any or all bids, or the right to withdraw the real or personal property at
any time prior to the completion of the auction by the auctioneer.
Absolute Auction: an auction of real or personal property to which all of the
following apply:
1.The property is sold to the highest bidder without reserve;
2. The auction does not require a minimum bid;
3. The auction does not require competing bids of any type by the seller
or an agent of the seller; and
4. The seller of the property cannot withdraw the property from auction
after the auction is opened and there is public solicitation or calling for
bids.
Under SB 209, an absolute auction cannot be held unless all of the
following apply:
1. The seller has a bona fide intention to transfer ownership of the
property to the highest bidder regardless of the amount of the highest bid;
2. The auction contract requires that the auction be conducted as an
absolute auction, specifies that the auction is not a reserve auction, and
prohibits the seller or anyone acting on behalf of the seller to bid or
participate in the bidding process of the auction; and
3. One of the following applies:
A. Except for current tax obligations, easements, or restrictions of
record of the seller, there are no liens or encumbrances on the
property in favor of any other person;
B. Every holder of a lien or encumbrance agrees in writing to the
absolute auction without regard to the amount to the highest bid or
to the identity of the highest bidder; or
C. A financially sound person, firm, trust, or estate, by execution of
the auction contract or other written agreement provided to the
auctioneer, guarantees the complete discharge and satisfaction of
all liens and encumbrances, immediately after the absolute auction
or at the closing without regard to the amount of the highest bid or
to the identity of the highest bidder.
8. If the sale is at absolute auction, the seller of the (real) or (personal)
property has a bona fide intention to transfer ownership of the property
to the highest bidder.
reserves the right to establish a stated minimum bid, the right to reject or
accept any or all bids, or the right to withdraw the real or personal property at
any time prior to the completion of the auction by the auctioneer.
Absolute Auction: an auction of real or personal property to which all of the
following apply:
1.The property is sold to the highest bidder without reserve;
2. The auction does not require a minimum bid;
3. The auction does not require competing bids of any type by the seller
or an agent of the seller; and
4. The seller of the property cannot withdraw the property from auction
after the auction is opened and there is public solicitation or calling for
bids.
Under SB 209, an absolute auction cannot be held unless all of the
following apply:
1. The seller has a bona fide intention to transfer ownership of the
property to the highest bidder regardless of the amount of the highest bid;
2. The auction contract requires that the auction be conducted as an
absolute auction, specifies that the auction is not a reserve auction, and
prohibits the seller or anyone acting on behalf of the seller to bid or
participate in the bidding process of the auction; and
3. One of the following applies:
A. Except for current tax obligations, easements, or restrictions of
record of the seller, there are no liens or encumbrances on the
property in favor of any other person;
B. Every holder of a lien or encumbrance agrees in writing to the
absolute auction without regard to the amount to the highest bid or
to the identity of the highest bidder; or
C. A financially sound person, firm, trust, or estate, by execution of
the auction contract or other written agreement provided to the
auctioneer, guarantees the complete discharge and satisfaction of
all liens and encumbrances, immediately after the absolute auction
or at the closing without regard to the amount of the highest bid or
to the identity of the highest bidder.
8. If the sale is at absolute auction, the seller of the (real) or (personal)
property has a bona fide intention to transfer ownership of the property
to the highest bidder.
Types of Auctions
| Reserve Auction * Absolute Auction * On-Site Auction |
 | |  | |  | |  | |  |
| Jerry T. Hall Auctioneer Realtor 1-440-476-7269 |
| Thomas R. Hall Auctioneer 1-440-476-7426 |
On-Site Auction: an auction that takes place on the property where the
items are currently stored.
items are currently stored.