Are reserves or a minimum bids used for real estate auctions? Question 2
Sellers have the right to choose to have a reserve or minimum bid. This topic is addressed during preliminary meeting between the seller and auctioneer. This amount remains confidential and is undisclosed by choice of the seller or it may be left open. When the high bid is achieved at the auction, a seller reserves the right to accept or reject the high bid.
Reserve Auctions are defined in the UCC. Uniform Commercial Code.
Absolute Auction and the use thereof will be also defined in the UCC.
Sellers are not required as a matter of law to hold absolute auctions, rather a choice in most cases.
A judge in a court of law may however ordered a property sold absolute in certain cases.
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