Smart Auction Consumer Tips

Auctioneering Terms:

• Absolute Auction without reserve - An auction at which property put up for sale is sold to the highest bidder, where the seller may not withdraw the property from the auction after the auctioneer calls for bids unless no bid is made in a reasonable time, where the seller may not bid himself or through an agent, and where the seller will deliver marketable title.
• An auction/auction with reserve - An auction at which the seller or his agent reserves the right to establish a minimum bid, to accept or reject any and all bids, and to withdraw the property at any time prior to the completion of the sale by the auctioneer.
• Buyers Premium - Buyer pays an extra amount of money (usually a percentage) to the auctioneer. The amount and date must be advertised in advance.

Did You Know?

• You can auction off your own personal items if you bought them with no intent of resale.
• There is no regulation on the amount an auctioneer can charge a consumer.
• You must have your auctioneer license for at least one year before you can sponsor an apprentice.
• The Tennessee Auctioneer Commission was the first Auctioneer Commission in the nation to create a web page providing direct service and information to assist the public and the profession through the use of technology.

Things To Remember:

• An auctioneer's license must be renewed every two years.
• Always read your contract carefully. Make sure you clarify names, individuals, and whether or not they are a licensed auctioneer. A licensed auctioneer is the only person who can negotiate and sign contracts.
• You must have your auctioneer license for at least one year before you can sponsor an apprentice.
• ELECTRONIC MEDIA AUCTION LICENSE REQUIREMENT - Any electronic media or computer-generated auction originating from within Tennessee shall conform to the requirements of Tennessee Code Annotated, Title 62, Chapter 19 et seq. (Auctioneer Licensing Law) and the Rules of the Tennessee Auctioneer Commission.
• ADVERTISING GUIDELINES - Advertising in any form that is designed to give notice of an upcoming auction must include the name and license number of the Principal Auctioneer responsible for holding the sale.
• CHARITY AUCTION EXEMPTION - An individual or entity may claim an exemption from licensure under T.C.A. 62-19-103(4) as it relates to auctions on behalf of a political party, church, or charitable corporation or association, provided that any such individual or entity providing auction services shall not be compensated, and 100% of the net proceeds of such sale shall be donated to such political party, church, or charitable organization or association.