{"data":{"id":"us-ky/krs-330.220","jurisdiction":"us-ky","citation":"KRS 330.220","heading":"Lots or parcels subjects of separate sales -- When auction is complete --","body":"Absolute auction -- Presumption of reserve auction -- Bids by seller --\nAvoidance of sale -- Prohibitions.\n(1) If real or personal property is offered in lots or parcels in a sale by auction, each lot\nor parcel shall be the subject of a separate sale. This subsection shall not preclude\nreal or personal property from being offered for bidding individually or in some\nform or combination.\n(2) Unless otherwise provided in the conditions of sale for auctions regarding horses or\nany interests therein, a sale by auction is complete when the auctioneer so\nannounces by the fall of the hammer, announcing the item sold, and the successful\nbidder's identification or in other customary manner. If it becomes immediately\napparent at the close of the bidding that the auctioneer and a bid assistant or\nringman have acknowledged the same bid from different bidders, the auctioneer\nmay continue the bidding between the disputed bidders. When a bi d is made while\nthe auctioneer is in the process of completing the sale by auction, the auctioneer\nmay continue the bidding or declare the real or personal property sold under the bid\non which the hammer was falling.\n(3) No auction shall be advertised as \" absolute\" nor shall any advertising contain the\nwords \"absolute auction\" or the word \"absolute\" or words with similar meaning nor\nshall any licensee offer or sell any real or personal property at absolute auction\nunless:\n(a) There are no liens or encumbran ces on the real or personal property, except\nproperty tax obligations, easements, or restrictions of record, in favor of any\nperson, firm, or corporation other than the seller, or unless each and every\nholder of each and every lien and encumbrance, by exec ution of the auction\nlisting contract, or otherwise furnishing to the auctioneer written evidence of a\nbinding commitment therefor, shall have agreed to the unqualified acceptance\nof the highest bid for the property, without regard to the amount of the hig hest\nbid or the identity of the high bidder; or, alternatively, that a financially\nresponsible person, firm, or corporation, by execution of the auction listing\ncontract or by otherwise furnishing to the auctioneer written evidence of a\nbinding commitment therefor, shall have absolutely guaranteed the forthwith\nand complete discharge and satisfaction of any and all liens and encumbrances\nimmediately after the sale or at the closing, without regard to the amount of\nthe highest bid received, or the identity of the high bidder; and\n(b) There is the bona fide intention at the time of the advertising and at the time\nof the auction to transfer ownership of the real or personal property, regardless\nof the amount of the highest and last bid, to the high bidder, subj ect to the\nprovisions of subsection (5)(b) of this section, that intent existing without\nreliance on any agreement that any particular bid or bid level must be made or\nbe reached, below which level the real or personal property would not be\ntransferred to the high bidder; and\n(c) The auction listing contract contains a binding requirement that the auction be\nconducted without reserve, and includes an acknowledgment that the seller, or\nanyone acting upon behalf of the seller, shall not bid at the absolute au ction,\nor otherwise participate in the bidding process.\n(4) Compliance with subsection (3) of this section shall not prohibit:\n(a) A secured party or other lienholder who is not the seller from bidding at an\nabsolute auction, providing that such bidding do es not constitute, nor is it\ntantamount to the direct or indirect establishment or agreement to the\nestablishment of a reserve price on the real or personal property by the seller\nor by the auctioneer, or by anyone aiding or assisting, or acting upon behalf of,\nthe seller or the auctioneer; or\n(b) Any individual party to the dissolution of any marriage, partnership, trust,\nlimited liability company, or corporation from bidding as an individual entity\napart from the selling entity, on real or personal proper ty being sold at auction\npursuant to that dissolution; or\n(c) Any individual party or heir of a deceased person's bona fide estate from\nbidding as an individual entity, apart from the selling entity, on real or\npersonal property being offered at auction pursuant to that estate settlement; or\n(d) The inclusion of nonmisleading advertising of certain real or personal\nproperty to be sold at \"absolute auction\" and the nonmisleading advertising of\ncertain real or personal property to be offered at auction with r eserve, within\nthe same advertisement, or for sale at the same date and place, providing that\nadvertisement shall make clearly apparent through equal or appropriate\nemphasis, which real or personal property is being offered by each method.\n(5) (a) Any auct ion sale is, without requirement of announcement at any time,\npresumed to be with reserve unless the real or personal property is in explicit\nterms offered at absolute auction. An auction without reserve means an\nabsolute auction. An auction with reserve m eans the real or personal property\nmay be offered subject to the seller's confirmation or subject to a certain\nreserve price. In an auction with reserve, the auctioneer may withdraw the real\nor personal property at any time until he or she announces comple tion of the\nsale. In an absolute auction, after the auctioneer calls for bids on an article, lot,\nor parcel, that article, lot, or parcel shall not be withdrawn unless no bid is\nmade within a reasonable time.\n(b) At both reserve auctions and without reserve auctions, the auctioneer may\nestablish reasonable minimum bid increments once an opening bid has been\noffered.\n(6) (a) The provisions of this chapter shall not prohibit any licensee from bidding on\nhis or her ow n behalf at any auction sale, whether absolute or with reserve, if\nhis or her option to do so has been fully disclosed, including disclosure to the\nseller.\n(b) Except as provided in subsection (4) of this section, the seller may not bid at\nan absolute auct ion, nor may anyone bid upon his or her behalf. No licensee\nshall knowingly receive a bid by or on behalf of the seller at an absolute\nauction.\n(c) Bids may be made by the seller, or upon the seller's behalf, at any auction with\nreserve, provided that full  disclosure has clearly been made that liberty for\nbidding is retained. No licensee shall knowingly receive a bid in the absence\nof full disclosure. If the auctioneer knowingly receives a bid on the seller's\nbehalf or the seller makes or procures a bid and  notice has not been clearly\ngiven that liberty for bidding is reserved, the buyer may avoid the sale or take\nthe real or personal property at the price of the last good faith bid prior to the\ncompletion of the sale.\n(d) There shall be no requirement that the reserve be announced when it is\nattained.\n(e) Nothing in this subsection shall be construed to alter or diminish the\nprovisions of KRS 330.210.\n(7) (a) At any absolute auction, any advertisement or representation of a minimum or\nsuggested starting bid is prohibited.\n(b) At any reserve auction, any advertisement or representation of a minimum or\nsuggested starting bid is prohibited unless:\n1. The minimum or suggested starting bid advertised or represented is\nsufficient to satisfy the auction listing cont ract stated reserve or\nconfirmation amount; and\n2. The auction listing contract contains a binding acknowledgment by the\nseller that permission has been granted for disclosure.","path":["KRS Chapter 330"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48930","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:22Z","sha256":"294295a75b163777a8750de9f0857244a4f634d21a9f7f4ab3ea602f1b06a47e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-330.215","next":"us-ky/krs-330.230"},"notice":"GroundRules: Original legal text. Not legal advice."}