GA AUCTION PRACTICE EXAM QUESTIONS AND ANSWERS
2025/2026 ALL GRADED A+
✔✔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 and the seller reserves the right to accept or decline any bid within a
specified time.
✔✔Auctioneer - ✔✔The person 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.
✔✔Auctioneer Subcontractor - ✔✔An auctioneer hired by the principal auctioneer. Also
known as a "Contract Auctioneer."
✔✔Ballroom Auction - ✔✔An auction of one or more properties conducted in a meeting
room facility.
✔✔Bank Letter of Credit - ✔✔A letter from a bank certifying that a named person is
worthy of a given level of credit. Often requested from prospective bidders or buyers
who are not paying with currency at auctions.
✔✔Benefit Auction Specialist (BAS) - ✔✔A professional designation awarded by the
NAA Education Institute designed to teach professional auctioneers the planning
techniques that create successful benefit auctions. BAS auctioneers learn marketing
skills and create a business strategy to build their clientele and profits. In order to be
designated with the BAS, auctioneer-scholars are required to complete 21 classroom
hours, a detailed written auction summary report, proof of at least six benefit auctions
and 24 hours of continuing education every three years.
✔✔Bid - ✔✔A prospective buyer's indication or offer of a price they are willing to pay to
purchase property at auction. Bids are usually in standardized increments established
by the auctioneer.
✔✔Bid Acknowledgment - ✔✔A form executed by the high bidder confirming and
acknowledging the bidder's identity, the bid price and the description of the property.
Also known as "Memorandum."
✔✔Bid Assistants - ✔✔Individuals of a live auction team whose primary responsibility is
to accurately interpret and effectively communicate buyer participation to their
auctioneer. They should also be qualified to assist prospective bidders with the
necessary information to make a better informed buying decision. Also known as
"ringmen", "bid spotters" or "groundsmen."
, ✔✔Bid Caller - ✔✔The person who actually "calls," "cries" or "auctions" the property at
an auction, recognizing bidders and acknowledging the highest bidder. Commonly
known as the auctioneer.
✔✔Bid Rigging - ✔✔The unlawful practice whereby two or more people agree not to bid
against one another so as to deflate value. See "Collusion".
✔✔Bidder Number - ✔✔The number issued to each person who registers at an auction.
✔✔Bidder Package - ✔✔The package of information and instructions pertaining to the
property to be sold at an auction event obtained by prospective bidders at an auction.
Also referred to as "bidder packet" or "due diligence packet."
✔✔Bidder's Choice - ✔✔A method of sale whereby the successful high bidder wins the
right to choose an asset or assets from a grouping of similar or like-kind assets. After
the high bidder's selection, the asset is deleted from the group, and the second round of
bidding commences, with the high bidder in round two choosing an asset, which is then
deleted from the group and so on, until all assets are sold. Also known as "Buyer's
Choice."
✔✔Bookkeeper or Clerk - ✔✔The individual responsible for the accounting and
paperwork at an auction sale.
✔✔Broker Participation - ✔✔An arrangement for third-party brokers to register potential
bidders for properties being sold at auction for a commission paid by the owner of the
property or the auction firm.
✔✔Buyer's Broker - ✔✔A real estate broker who represents the buyer and, as the agent
of the buyer, is normally paid for his/her services by the buyer.
✔✔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.
✔✔Caravan Auctions - ✔✔A series of on-site auctions advertised through a common
promotional campaign.
✔✔Carrying Charges - ✔✔The costs involved in holding a property that is intended to
produce income (either by sale or rent) but has not yet done so, i.e., insurance, taxes,
maintenance, management. Also known as "holding costs".
✔✔Catalog or Brochure - ✔✔A publication advertising and describing the property(ies)
available for sale at public auction, often including photographs, property descriptions
and the terms and conditions of the sale.
2025/2026 ALL GRADED A+
✔✔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 and the seller reserves the right to accept or decline any bid within a
specified time.
✔✔Auctioneer - ✔✔The person 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.
✔✔Auctioneer Subcontractor - ✔✔An auctioneer hired by the principal auctioneer. Also
known as a "Contract Auctioneer."
✔✔Ballroom Auction - ✔✔An auction of one or more properties conducted in a meeting
room facility.
✔✔Bank Letter of Credit - ✔✔A letter from a bank certifying that a named person is
worthy of a given level of credit. Often requested from prospective bidders or buyers
who are not paying with currency at auctions.
✔✔Benefit Auction Specialist (BAS) - ✔✔A professional designation awarded by the
NAA Education Institute designed to teach professional auctioneers the planning
techniques that create successful benefit auctions. BAS auctioneers learn marketing
skills and create a business strategy to build their clientele and profits. In order to be
designated with the BAS, auctioneer-scholars are required to complete 21 classroom
hours, a detailed written auction summary report, proof of at least six benefit auctions
and 24 hours of continuing education every three years.
✔✔Bid - ✔✔A prospective buyer's indication or offer of a price they are willing to pay to
purchase property at auction. Bids are usually in standardized increments established
by the auctioneer.
✔✔Bid Acknowledgment - ✔✔A form executed by the high bidder confirming and
acknowledging the bidder's identity, the bid price and the description of the property.
Also known as "Memorandum."
✔✔Bid Assistants - ✔✔Individuals of a live auction team whose primary responsibility is
to accurately interpret and effectively communicate buyer participation to their
auctioneer. They should also be qualified to assist prospective bidders with the
necessary information to make a better informed buying decision. Also known as
"ringmen", "bid spotters" or "groundsmen."
, ✔✔Bid Caller - ✔✔The person who actually "calls," "cries" or "auctions" the property at
an auction, recognizing bidders and acknowledging the highest bidder. Commonly
known as the auctioneer.
✔✔Bid Rigging - ✔✔The unlawful practice whereby two or more people agree not to bid
against one another so as to deflate value. See "Collusion".
✔✔Bidder Number - ✔✔The number issued to each person who registers at an auction.
✔✔Bidder Package - ✔✔The package of information and instructions pertaining to the
property to be sold at an auction event obtained by prospective bidders at an auction.
Also referred to as "bidder packet" or "due diligence packet."
✔✔Bidder's Choice - ✔✔A method of sale whereby the successful high bidder wins the
right to choose an asset or assets from a grouping of similar or like-kind assets. After
the high bidder's selection, the asset is deleted from the group, and the second round of
bidding commences, with the high bidder in round two choosing an asset, which is then
deleted from the group and so on, until all assets are sold. Also known as "Buyer's
Choice."
✔✔Bookkeeper or Clerk - ✔✔The individual responsible for the accounting and
paperwork at an auction sale.
✔✔Broker Participation - ✔✔An arrangement for third-party brokers to register potential
bidders for properties being sold at auction for a commission paid by the owner of the
property or the auction firm.
✔✔Buyer's Broker - ✔✔A real estate broker who represents the buyer and, as the agent
of the buyer, is normally paid for his/her services by the buyer.
✔✔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.
✔✔Caravan Auctions - ✔✔A series of on-site auctions advertised through a common
promotional campaign.
✔✔Carrying Charges - ✔✔The costs involved in holding a property that is intended to
produce income (either by sale or rent) but has not yet done so, i.e., insurance, taxes,
maintenance, management. Also known as "holding costs".
✔✔Catalog or Brochure - ✔✔A publication advertising and describing the property(ies)
available for sale at public auction, often including photographs, property descriptions
and the terms and conditions of the sale.
