| (1) |
No auction
shall be advertised as "absolute" nor shall any advertising contain the words
"absolute auction" or the word "absolute" or words with similar meaning nor
shall any licensee offer or sell any property at absolute auction unless:
| (a) |
There are no liens or encumbrances on the
property, except current tax obligations, easements, or restrictions of record,
in favor of any person, firm, or corporation other than the seller, or unless
each and every holder of each and every lien and encumbrance, by execution of
the auction listing contract, or otherwise furnishing to the auctioneer written
evidence of a binding commitment therefor, shall have agreed to the unqualified
acceptance of the highest bid for the property, without regard to the amount of
the highest bid or the identity of the high bidder; or, alternatively, that a
financially responsible person, firm, or corporation, by execution of the
auction listing contract or by otherwise furnishing to the auctioneer written
evidence of a binding commitment therefor, shall have absolutely guaranteed the
forthwith and complete discharge and satisfaction of any and all liens and
encumbrances immediately after the sale or at the closing, without regard to
the amount of the highest bid received, or the identity of the high bidder;
and |
| (b) |
There is the bona fide
intention at the time of the advertising and at the time of the auction sale,
to transfer ownership of the property, regardless of the amount of the highest
and last bid, to the high bidder, that intent existing without reliance on any
agreement that any particular bid or bid level must be made or be reached,
below which level the property would not be transferred to the high bidder;
and |
| (c) |
The auction listing
contract contains a binding requirement that the sale be conducted without
reserve, by specific inclusion of an acknowledgment by the seller that the
seller, or anyone acting upon behalf of the seller, shall not bid at the
absolute auction, or otherwise participate in the bidding process. |
|
