In rare cases, an auction house will guarante to pay a cosignor for a lot, regardless of whether the bidding at auction reaches the reserve price. The guarantee may be provided by the auction house, by a third party or jointly by the auction and a third party. Third parties providing all or part of a gurantee benefit financially if a guaranteed lot is sold successfully and may incur a loss if the sale is not successful.
This 'Glossary of Terms' – those commonly used in the realm of property auctions, is monitored and updated regularly to remain a current reference point.
If there are any terms that you have come across which we have not included here and you are unclear about, please do get in touch and we will be happy to provide you with a clear explanation and add the new term to our list.
For more information on buying or selling at a property auction, have a read of our guide to buying at auction.