Auction houses have complex bidding processes and contractual obligations. From remote bidding options to in-person , these methods ensure fair and efficient sales. Understanding auction terminology like and is crucial for participants.
Contractual agreements bind buyers, sellers, and auction houses. These cover , seller commitments, and legal implications of breaches. Knowing your rights and responsibilities is key to navigating the auction world successfully.
Bidding Methods
Remote Bidding Options
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allows buyers to submit maximum bids in advance without attending the auction
Auction house representatives execute bids on behalf of absent buyers
Provides flexibility for buyers unable to attend in person
Bids are kept confidential and executed incrementally up to the maximum amount
connects remote buyers with auction house staff via phone during the live auction
Staff relay bids in real-time as the auction progresses
Enables participation from anywhere with phone access
Requires pre-registration and often a deposit or credit card hold
facilitates participation through internet platforms
Live streaming auctions with real-time bidding capabilities
Some platforms offer automated bidding up to a set maximum
Expands global reach and accessibility of auctions
In-Person Participation
Paddle registration assigns unique bidder numbers to in-person participants
Buyers receive numbered paddles to raise when placing bids
Allows anonymous bidding in the auction room
Typically requires providing identification and financial information
Some houses may require credit checks or deposits for high-value auctions
Auction Terminology
Price-Related Terms
Hammer price refers to the winning bid amount announced by the auctioneer
Excludes additional fees like buyer's premium
Represents the base price for the before taxes and other charges
Used to calculate commissions for consignors
Bid increments establish the minimum raise between consecutive bids
Set by the auction house, often increasing as the bidding progresses
Helps maintain orderly bidding and prevents minute increases
May vary based on the value of the item (larger increments for higher-priced lots)
Organizational Elements
Lot designates a single item or group of items offered as one unit in an auction
Assigned unique identifying numbers in the auction catalog
Can consist of individual objects or curated groupings
Order of lots typically follows the auction catalog sequence
Contractual Agreements
Buyer Obligations
outlines terms and conditions for auction participants
Specifies payment requirements and deadlines
Details buyer's premium and other applicable fees
Explains policies on condition reports and authenticity guarantees
Payment terms establish the timeline and methods for settling auction purchases
Often require full payment within a specified period (7-30 days)
May offer various payment options (wire transfer, credit card, check)
Can include penalties or interest for late payments
Seller Commitments
defines the consignor's relationship with the auction house
Covers commission rates and potential fees
Outlines the auction house's responsibilities (marketing, insurance)
Specifies any guarantees or advances offered by the auction house
detail circumstances under which items can be removed from auction
May incur penalties for withdrawing after catalogs are printed
Often limited to specific situations (damage, title disputes)
Can affect the seller's relationship with the auction house for future consignments
Legal Implications
addresses consequences for failing to fulfill auction agreements
For buyers: potential loss of deposit, legal action for non-payment
For sellers: possible damages for unauthorized withdrawals
For auction houses: liability for misrepresentation or failure to follow terms
May result in banning from future auctions or damage to reputation in the art market