S.D. Admin. R. 20:69:06:01.01

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:69:06:01.01 - Definitions

Terms used in this chapter mean:

(1) "Absentee bid," a procedure that allows a bidder to participate in the bidding without being physically present;

(2) "Absolute auction," an auction in which the property is sold to the highest qualified bidder with no limiting conditions or amount. An absolute auction is also known as an auction without reserve;

(3) "Auction with reserve," an auction in which the seller or seller's representative 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. An auction with reserve is also known as a reserve auction or as an auction subject to confirmation;

(4) "Bid," a prospective buyer's indication or offer of a price the prospective buyer is willing to pay to purchase property at auction;

(5) "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;

(6) "Internet auction," an auction in which a prospective buyer bids using electronic media. The term also includes an auction in which the auctioneer conducts the auction using electronic media;

(7) "Minimum bid auction," an auction in which the auctioneer accepts bids at or above a disclosed price. A minimum bid auction is separate and distinct from an absolute auction or an auction with reserve;

(8) "Rafter bid," or "puffing of a bid," a fictitious bid used to increase the final sales price;

(9) "Reserve," the minimum price that a seller is willing to accept for a property to be sold at auction;

(10) "Shill," a person who pretends to have no association with the auctioneer or seller and gives the impression of being an enthusiastic bidder by puffing of a bid.

S.D. Admin. R. 20:69:06:01.01

37 SDR 112, effective 12/8/2010.

General Authority: SDCL 36-21A-89(7).

Law Implemented: SDCL 36-21A-1, 36-21A-89.