Glossary

Auctions & Sales

20 terms in this category

Absolute Auction

Auction selling property to highest bid without reserve price, encouraging bidding, common in property liquidation.

Auction Catalog

Detailed document of properties offered in auction, including descriptions, photos, and prices, helping bidders prepare.

Auction Deposit

Amount bidder pays before auction as seriousness guarantee, returned to losers and deducted from winner's price, typically 5-10% of value.

Auction Fees

Costs winner pays to auction, typically 2-5% of sale price, added to total cost of property purchase.

Auction Platform

Electronic platform managing real estate auctions like Mosanada in Saudi Arabia, providing transparency and wide bidder access.

Auction Results

Report published after auction showing sold properties and prices, important reference for evaluating market and area property prices.

Auctioneer

Licensed person managing auction, announcing bids, and closing sale, must be neutral and trained, with commission from sale value.

Bidder

Person participating in auction by offering financial bids to buy property, must be registered with financial guarantee before auction.

Buyer's Premium

Percentage added to hammer price paid by buyer to auction, typically 5-10%, forming revenue source for auction operators.

Foreclosure Auction

Auction selling property foreclosed due to borrower's payment default, opportunity to obtain properties at below-market prices.

Hammer Price

Final property price in auction when hammer falls, becoming binding on both parties, basis of final sale contract.

Highest Bid

Largest amount offered by bidder in auction, winner bidder is committed to purchase, paying percentage immediately and rest within set period.

Inheritance Auction

Auction selling property hard to divide among heirs, dividing price per Sharia shares, done under judicial supervision.

Online Auction

Auction conducted entirely online, expanded in Saudi Arabia with tech development, allowing participation from anywhere.

Private Auction

Auction limited to invited bidders only, common in luxury properties, preserving sellers' and buyers' privacy.

Public Auction

Auction open to all interested, transparent and public, ensuring fair price and equal opportunity, most common in real estate auctions.

Real Estate Auction

Public sale of property to highest bidder, used for foreclosed or inherited properties, transparent and ensuring fair price.

Reserve Price

Lowest price seller accepts to sell, auction cancelled if not reached, protecting seller from low-price sale.

Starting Bid

Lowest price auction starts from, determined based on property valuation, may be lower than actual price to attract bidders.

Title Warranty

Seller's commitment in auction that property is free from ownership disputes, protecting buyer from future legal issues.

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