Selling At Auction
The Auction Method accelerates the sale of your property by generating additional consumer interest and activity. Non-contingent contracts and thirty-day settlements are required of all buyers of auctioned properties. This means a quick transaction for you.
The real estate auction process is well established, much like auctions for fine art, antiques and collectibles, and it is growing in popularity, because it works!
A recent article in the Wall Street Journal states, "... going to the gavel is becoming a popular option for even thriving businesses and wealthy landowners who want to get rid of property quickly. Among those increasingly turning to the auction block are burgeoning retailers who need to sell one store to make way for a new one nearby, consolidating banks with overlapping branches, and owners of valuable parcels looking to avoid taxes during protracted sales negotiations."
Well over $80 billion worth of real estate holdings were sold last year through the Auction Method of Marketing. There is no doubt that this is a method that WORKS.
Vowell Realty and Auction Company targets "qualified sellers". A qualified seller is one who is interested in selling their real estate in the short-term, owns a significant amount of equity in their real estate and one who believes in the Auction Method. We service the agricultural, commercial, estate, and residential markets, among others. The following includes characteristics that a seller may have for each of the aforementioned segments:
Every Member of the National Auctioneers Association Pledges to Abide by the Following Code of Ethics and Standards of Practice:
To promote, increase and build the trustworthiness of the competitive bidding method of marketing, including: live, Internet and sealed bid auctions, and enhance the professionalism of its practitioners.
Competitive bidding will be increasingly utilized as a method to sell all types of goods in all segments of the economy. The National Auctioneers Association (NAA) will unify and lead the competitive bidding industry to fulfill this vision.
The National Auctioneers Association is the professional organization for practicing auctioneers, their associates, affiliated businesses and other related professionals. Membership in the NAA although voluntary, carries with it a requirement of professional commitment to other professionals, clients, customers and the public at large that extends beyond that of laws and professional regulations. Members of the NAA accept this obligation to conduct themselves and their businesses in a manner that serves the public interest, protects the public trust and furthers the goals of their profession.
Absentee Bid: A procedure that allows a bidder to participate in the bidding without being physically present. Absentee bids are usually handled under an established set of guidelines by the auctioneer or their representative.
Absolute Auction An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. (See Auction without Reserve).
"As Is" Property is sold without any warranty as to its condition and/or fitness for a particular purpose. Buyers are solely responsible for examining and judging the properties condition. Also known as "As Is, Where Is" and "In its Present Condition."
Auction: A method of selling property in a public forum through open and competitive bidding. Also referred to as: public auction, auction sale or sale.
Auction Listing Agreement: The contract executed by the auctioneer and the seller which authorizes the auctioneer to conduct the auction on behalf of the seller and sets out the terms of the agreement and the rights and the responsibilities of each party
Auction Subject to Confirmation: (See "Reserve Auction")
Auction With Reserve: An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed.
Auction Without Reserve: (See "Absolute Auction")
Auctioneer: The person (or firm) whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually call or cry the auction.
Bid: A prospective buyer?s indicating or offer of a price he or she will pay to purchase property at auction. Bids are usually in increments established by the auctioneer.
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.
CAI: The professional designation awarded by the NAA Educational Institute to practicing auctioneers who meet the educational and experiential standards set by the Institute.
Client: The party for whom the auctioneer sells the property; it is often synonymous with "seller."
Customer: The party who attends the auction for the purpose of buying the property offered for sale.
Graduate, Personal Property Appraiser (GPPA): The professional designation awarded by the NAA Educational Institute to qualified property appraisers who meet the educational and experiential requirements. A member holding a GPPA designation must comply with standards and requirements of the Uniform Standards of Professional Appraisal Practice.
Member: A member in good standing of the National Auctioneers Association.
Minimum Bid Auction: An auction in which the auctioneer accepts bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the auction.
Reserve: The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.
Reserve Auction: An auction in which the seller retains the right to establish a minimum price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer. (Also known as "Auction with Reserve" and "Auction Subject to Confirmation")
RESPONSIBILITIES TO CLIENTS AND CUSTOMERS
Members pledge to protect and promote the interests of the client. This obligation of absolute fidelity to the client?s interests is primary, but does not relieve members of their obligation to treat all parties to the transaction fairly.
STANDARDS OF PRACTICE 1.1
Members must not enter into an agreement with a client to withhold information from the public that would prove to be unsafe, illegal, detrimental to the public or material to making a decision to bid.
STANDARDS OF PRACTICE 1.2
The practice of encouraging a client to market a property as "absolute" when in actuality the member has verbally promised to convert the sale to an auction with reserve, or alternatively to cancel the sale if the marketing campaign does not produce an opening bid sufficient to satisfy the intended reserve of the client, is strictly prohibited.
STANDARDS OF PRACTICE 1.3
Members must not build unreasonable expectations about the outcome of an auction in the mind of a potential client in order to secure the client?s business.
STANDARD OF PRACTICE 2.1
STANDARD OF PRACTICE 2.2
STANDARD OF PRACTICE 2.3
Members should, to assure better service to the seller and to prevent misunderstandings, enter into written agreements or, at a minimum, clear oral agreements that set forth the specific terms and conditions of the engagement.
STANDARD OF PRACTICE 3.2
Members shall not accept compensation from any party, other than the client, even if permitted by law, without the full knowledge of all the parties to the transaction.
Members shall provide the highest level of competent service in those fields in which members are customarily engaged. This competency is attained by education, training, study, practice and experience. Competence also includes the wisdom to recognize the limitations of that knowledge and when to seek the counsel, assistance or client referral appropriate for the circumstances.
STANDARD OF PRACTICE 5.1
STANDARD OF PRACTICE 5.2
STANDARD OF PRACTICE 5.3
Members shall not undertake to provide professional services where either they, members of their immediate family, members of their firm, or any entity in which they have an ownership interest has presently or contemplates an interest, without first specifically disclosing such interest or contemplated interest.
Members shall not make a profit on expenditures made for their client without the client?s prior knowledge and consent.
Members shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction would be appropriately served.
Members shall keep monies coming into their possession in trust for other persons such as escrows, trust funds, client?s monies and other similar items in a separate special account, in an appropriate financial institution.
Members shall not disclose any confidential client information without the client?s specific consent except as required by appropriate legal authorities.
STANDARD OF PRACTICE 10.1
RESPONSIBILITIES TO THE PUBLIC
Members shall avoid misrepresentation or concealment of pertinent facts. There is an affirmative obligation to disclose adverse factors of which they have personal knowledge.
STANDARD OF PRACTICE 11.1
Members must be careful at all times to present a true picture in their advertising and representations to the public. Members shall ensure that all advertising includes the names and information necessary for the public to contact the auctioneer or firm responsible for conducting the auction.
STANDARD OF PRACTICE 13.1
Members are duty bound at all times to abide by the laws and regulations which govern the profession as well as those which, if violated, would negatively affect their ability to present to the public an image of behavior that appropriately represents the professionalism of our industry.
RESPONSIBILITIES TO THE PROFESSION
Members should never publicly criticize a competitor using false or deceptive information. Where an opinion of a competitor?s transaction is especially requested, it should be rendered in conformity with strict professional courtesy and dignity.
STANDARD OF PRACTICE 15.1
STANDARD OF PRACTICE 15.2
Members should willingly share with other members the lessons learned through experience and study to better the profession, members? business practices and how the profession is perceived by society. Members shall be loyal to the NAA; this includes active participation in educational, civic and charitable endeavors.
Members should conduct their business affairs so as to avoid disputes with other members. In an instance where a controversy between members arises, they should seek the assistance of the NAA to arbitrate the controversy.
Members, having personal knowledge of an act by another member that, in their opinion, is a material violation of the ethical principles of this Code shall treat the matter in accordance with the procedures of filing a grievance.
STANDARD OF PRACTICE 18.1
STANDARD OF PRACTICE 18.2
Members charged with unethical practice or who are asked to present evidence in any disciplinary proceeding or investigation shall promptly and voluntarily place all pertinent facts and information before the appropriate body.
STANDARD OF PRACTICE 19.1
Reg. 1 Grievance Committee
R1.1 The Grievance Committee shall consider, resolve and recommend to the Board appropriate action for grievances arising from alleged unethical behavior of members.
R.1.2 The Committee shall consist of the Executive Committee. When meeting to consider a grievance, there must be a quorum of at least three (3) members of the Committee. All members of the Committee shall remain as such until the final determination of any ethics matter previously heard by that Committee but not yet resolved, notwithstanding the fact that a new Committee may have been appointed or created by election.
Reg. 2 Grievance Procedures
R2.1 Any grievance must be submitted in writing to the CEO with the necessary supporting documentation, signed by the complainant. The CEO shall forward all grievances to the Chairman.
R2.1a In filing a charge of a violation of the Code of Ethics, the charge must read as an alleged violation of one or more Articles of the Code. Standards of Practice may not be cited as the basis of the complaint, but only in support of the charge.
R2.2 Upon receipt of a written grievance, the Chairman shall notify the members of the Committee and initiate a Committee review of the allegations.
R2.2a Grievances will not generally be considered until all pending administrative hearings and/or court proceedings have been resolved.
R2.2b In extraordinary circumstances, the Committee can, with Board approval, refer the grievance to outside arbitration. Any expense of referral shall be the responsibility of the NAA.
R2.3 If the Committee determines the grievance has merit and is appropriate for Committee review, a copy of the grievance, any supporting documentation and a copy of these regulations shall be sent via Certified Mail, Return Receipt Requested to the individual(s) against whom the grievance was filed.
R2.4 The individual shall have thirty (30) days from the date of the mailing to submit a written response to the CEO, who shall forward it to the Committee.
R2.5 After review of the response, if the Committee determines that the grievance has validity, it shall notify the individual against whom the complaint was filed of their right to submit additional evidence to the Committee, either in writing or at a hearing requested by the individual. The individual shall have ten (10) days to respond.
R2.5.1 If the individual chooses to submit additional evidence in writing (without requesting a hearing) the Committee shall allow the complainant the opportunity to submit final written comments. The complainant shall have ten (10) days to respond.
R2.5.2 If the individual requests a hearing, the Committee shall facilitate this request within a reasonable time. The Committee shall allow the opportunity for all the parties to be present, to be represented by counsel, and to participate in the proceedings. The Chairman of the Committee shall establish and forward hearing procedures to all parties and participants not later than twenty (20) days prior to the hearing.
R2.5.3 If the individual does not submit additional evidence or request a hearing, the Committee shall decide the complaint on the evidence submitted.
R2.6 Grievances shall be decided by the Committee based on all the evidence before it within a reasonable time. The CEO and the NAA general counsel may, at the request of the Chairman participate in the meetings, but shall have no vote.
R2.7 The Committee shall report its findings and recommendations to the Board. These recommendations may include censure, suspension or revocation of the individual?s membership. The Board shall have the power to accept, reject, or modify the findings and recommendations of the Committee. If, however, the individual appeals the decision of the Board, the effect of the Board?s action shall be delayed until final determination of the appeal.
Reg. 3. Appeal Procedure
R3.1 Upon determination of a grievance by the Board, all parties shall be notified of their right to and procedures for an appeal.
R3.2 A party shall have thirty (30) days from the date of mailing of notification of the decision of the Board to file an appeal. The request must be in writing, made to the CEO, and specify the basis for the appeal.
R3.3 If no appeal is filed within (30) days, the decision of the Board shall be implemented by the CEO.
R3.4 If an appeal is filed, a hearing shall be held within a reasonable time before an Appeals Board. The Appeals Board shall consist of three Past Presidents who are currently members in good standing and who did not serve on the Grievance Committee that heard the complaint. A separate Appeals Board shall be appointed by the President for each appeal. The members of the Appeals Board shall choose its Chairman who shall establish and forward procedures to all parties and participants not later than twenty (20) days prior to the hearing. All parties shall have the right to be present, represented by counsel, and participate in the proceedings.
R3.5 The Appeals Board, by majority vote shall (1) reaffirm; (2) modify; or (3) reverse the original decision. The decision of the Appeals Board shall be rendered within a reasonable time and shall be final.
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