Kentucky real estate and auction glossary
Use these plain-language explanations while comparing your selling options. They introduce common words; they do not interpret your contract, establish a legal right or replace advice about your Kentucky property.
Start with the question behind the word
A term can have a specific meaning in a particular agreement. If a phrase affects price, a deposit, ownership or your ability to change plans, ask which document defines it. Use the A–Z directory to prepare questions, then ask a licensed agent or principal auctioneer to explain the proposed process.
Separate price, costs and net proceeds
An asking price, a bid, a buyer's premium and net proceeds describe different things. Ask for a written illustration that identifies assumptions, fees, expenses, payoffs and adjustments. A familiar word does not turn an estimate into a quote or promise. Compare the full transaction instead of relying on one advertised figure.
Keep learning: Read the traditional listing guide
Keep format, conditions and property structure distinct
Online-only and onsite describe bidding formats. Absolute and reserve describe price-related conditions. Multi-parcel describes an offering structure. The proposed terms explain how these choices work together. Read the dedicated guides before assuming that the same rules apply to every auction.
Take legal questions to a Kentucky attorney
Definitions here are general education, not statements about the exact obligations in your sale. Talk with our team first about coordinating a Kentucky attorney's review of contracts, title, disclosures, estates, deposits and disputes. Your licensed agent or principal auctioneer can coordinate transaction information while the appropriate legal professional explains legal consequences.
- Absolute auction
- An auction generally offered without a seller price reserve under the published terms. Bidding determines price under those terms, with no guaranteed price or completed closing. Talk with us first about whether this format fits your goals and coordinating Kentucky attorney review of the proposed obligations.
- Agency relationship
- The relationship describing whom a real estate professional represents and the services or responsibilities involved. Ask for a plain-language explanation of the proposed arrangement and talk with our team first about coordinating a Kentucky attorney's review of its legal effect.
- Appraisal
- A valuation assignment with a stated purpose, scope and assumptions. It is different from an agent's comparative market analysis and does not promise the price a particular buyer will pay.
- Asking price
- The advertised price used to invite offers in a listing. It is a marketing decision, not a guarantee of market value, a buyer's offer or the seller's eventual net proceeds.
- Auction agreement
- The agreement describing the proposed auction services, responsibilities, fees and conditions. Read it before authorizing marketing and talk with our team first about coordinating a Kentucky attorney's review of its obligations or unclear provisions.
- Auction terms
- The published conditions governing the offering, participation, bidding, deposits and transaction process. They vary by offering; do not assume the rules from a previous auction apply.
- Boundary
- The limits of a parcel as established by the relevant records and professional work. A fence or marketing sketch is not necessarily proof of the legal boundary. Ask a surveyor and Kentucky attorney about uncertainty.
- Buyer qualification
- The process used to understand whether a prospective buyer meets the offering's participation or financial requirements. The checks and their significance depend on the proposed transaction; qualification is not a guarantee of closing.
- Buyer's premium
- An amount added to a bid when the published auction terms require it. The calculation and treatment depend on those terms. Sellers should still review their own fees, expenses and potential net proceeds.
- Closing
- The stage at which the transaction's required documents, funds and other completion steps are coordinated. The details depend on the agreement. Closing, recording and possession should not be assumed to occur identically in every sale.
- Closing costs
- Transaction expenses addressed in the agreement and closing paperwork. Which party pays which items varies; request an itemized estimate and consult the appropriate professional about unfamiliar charges.
- Commission
- Compensation for agreed professional services, as addressed in the relevant agreement. Do not assume a universal rate, a fixed service package or identical payment conditions. Ask for the actual written explanation.
- Comparative market analysis (CMA)
- An agent's analysis of relevant market evidence and property differences to inform a pricing conversation. It is not an independent appraisal or a promised sale result.
- Contingency
- A condition in a proposed or signed agreement that can affect the parties' next steps. Inspection, financing or other provisions require careful reading; ask our team to help coordinate with a Kentucky attorney what a particular clause means.
- Contract
- The document or set of documents stating the parties' agreed transaction obligations. A familiar-looking form can still have important consequences. Talk with our team first about coordinating a Kentucky attorney's review of legal questions before relying on a provision.
- Counteroffer
- A response proposing changed terms rather than simply accepting an offer as presented. Price is only one possible change. A Kentucky attorney can explain questions about formation, acceptance or conflicting documents.
- Deed
- A legal document used in transferring an interest in real property. Its form, description and execution deserve professional review. Talk with our team first about coordinating a Kentucky attorney's review of what is appropriate for the particular ownership and transaction.
- Disclosure
- Information provided about the property or transaction. The appropriate statements and documents depend on the circumstances. Talk with our team first about coordinating a Kentucky attorney's review of legal obligations instead of assuming a condition label removes them.
- Due diligence
- The review of property, documents, financing and other transaction questions before proceeding as the agreement allows. Its scope and deadlines vary. General guides do not determine a buyer's or seller's specific rights.
- Earnest money
- A deposit handled under the sale agreement. Amount, custody, deadlines, refund questions and default consequences depend on the documents and circumstances. Do not assume every deposit is automatically refundable or nonrefundable.
- Easement
- A right or arrangement affecting use of another property's land, such as an access or utility issue. Its scope depends on the relevant documents and facts. Ask our team to help coordinate with a Kentucky attorney rather than relying on informal descriptions.
- Encroachment
- A possible intrusion of an improvement or use across a property boundary. Surveys and legal review may be needed to understand the facts and options; a visual impression alone may not settle the issue.
- Escrow
- An arrangement for holding funds or documents under specified conditions. The actual instructions and legal duties matter. Ask who is holding an item and talk with our team first about coordinating a Kentucky attorney's review of disputed or unclear terms.
- Financing contingency
- A contract condition concerning the buyer's financing. The wording and deadlines matter; it should not be confused with a lender's initial discussion or a guarantee that a loan will close.
- Fixture
- An item whose treatment as part of the real property can require attention in the contract. Do not assume every attached or freestanding item is included. Identify what is offered and seek Kentucky attorney advice on legal uncertainty.
- For sale by owner (FSBO)
- Selling without the professional representation described in an agent-led listing or managed auction. The owner takes on marketing, pricing, access and transaction coordination while legal questions still require attention.
- Inspection
- A review of condition or a particular property system within the inspector's scope. It is not the same as an appraisal, survey or promise that every problem has been found.
- Lease
- An agreement concerning use or occupancy that may affect marketing, access, possession or a sale. Ask our team to help coordinate with a Kentucky attorney before assuming that selling the property ends or changes an occupant's rights.
- Legal description
- The description used to identify the land or interest in legal documents. It is not interchangeable with a casual street-address description. Ask our team to help coordinate with a Kentucky attorney and surveyor about inconsistencies or missing information.
- Lien
- A claim or interest that may affect title or sale proceeds. Its effect and resolution require review of the particular facts and records. Ask our team to help coordinate with a Kentucky attorney before assuming a payoff or release is straightforward.
- Listing agreement
- The agreement describing an agent's services and the seller's commitments, including compensation and other terms. Read the actual document and talk with our team first about coordinating a Kentucky attorney's review of duration, cancellation or other legal questions.
- Market value
- A valuation concept considered under stated assumptions and conditions, not a promise about a particular sale. Discuss the evidence and purpose behind an estimate instead of treating every online number as equivalent.
- Minimum bid
- A published bidding threshold or starting condition, as defined by the offering. It is not necessarily the same as a reserve price or a promise of an absolute sale. Read the combined terms.
- Multi-parcel auction
- An offering structure that may allow bids on individual tracts, combinations or the whole property under published rules. Feasibility, boundaries, access, terms and contract allocation need careful preparation.
- Multiple listing service (MLS)
- A system through which participating real estate professionals share listing information under applicable rules. Exposure may be part of the agreed marketing service, but it does not guarantee buyer interest or a sale.
- Net proceeds
- The amount remaining after the sale's applicable expenses, payoffs and adjustments. A written illustration should identify assumptions; it is not the same as a bid, asking price or guaranteed final payment.
- One Extend, All Extend
- "One Extend, All Extend" is an online auction format that keeps related tracts open for bidding together. When a bid is placed on any participating tract during the closing extension window, the bidding time extends for all participating tracts. Each tract remains a separate purchase; winning one does not guarantee winning another.
- Online-only auction
- An auction whose bidding occurs on a platform under published registration, bidding and closing rules. It may have absolute or reserve conditions; online describes the format, not every sale term.
- Onsite auction
- A live bidding event at an announced location, often the property. Participation, inspections, weather arrangements and any remote bidding must be explained in the offering.
- Parcel
- A separately identified area of land in the relevant records or proposed offering. A parcel reference, tax map and proposed auction tract do not necessarily establish the same legal boundaries.
- Personal property
- Items distinguished from the real property in the proposed transaction. Identify included equipment, contents or other items clearly and talk with our team first about coordinating a Kentucky attorney's review of classification or contract questions.
- Possession
- When and how a buyer is entitled to use or occupy the property under the agreement. It should not automatically be assumed to coincide with a particular transaction step. Existing occupancy may require legal review.
- Principal auctioneer
- The auction professional responsible for the proposed auction services and management under the applicable arrangement. Ask about credentials, duties, the bidding process and post-auction coordination rather than assuming every service is included.
- Probate
- An estate-administration process that may affect authority to transfer a deceased owner's property. Ask our team to help coordinate with a Kentucky attorney before assuming who may sign, what approvals apply or how a sale should proceed.
- Proof of funds
- Information used to discuss a buyer's ability to provide funds. Its scope and reliability should be evaluated by the appropriate professionals; it is not itself a guarantee that a transaction will close.
- Reserve price
- A seller's acceptable price condition under the auction agreement and published terms. It may differ from an opening or minimum bid. A reserve can mean there is no sale if the condition is not met.
- Seller confirmation
- A stated process for seller review or approval under the proposed offering. The documents determine its operation and legal effect. Ask a principal auctioneer to explain it and a Kentucky attorney to review it.
- Settlement statement
- An itemized presentation of transaction figures and adjustments prepared for closing. Review charges, credits, payoffs and net figures with the appropriate professionals before relying on an early estimate.
- Survey
- Professional work describing or locating property features and boundaries within a stated scope. It is different from a casual map or marketing sketch. Ask which type of work is needed for the transaction.
- Tax assessment
- A figure used in property-tax administration. It should not be treated automatically as market value, an appraisal or an asking-price recommendation. Discuss the relevant records and your pricing strategy with the appropriate professionals.
- Title
- The ownership interests and related matters affecting the property. Deeds, liens, easements and other records may need review. Talk with our team first about coordinating a Kentucky attorney's review of title questions rather than assuming possession or a tax bill proves every right.
- Title search
- A review of relevant records within an identified scope to investigate ownership and related matters. It is not interchangeable with a survey or a guarantee that every possible issue has been resolved.
- Tract
- A portion of land identified in an offering or property description. Proposed auction tracts need appropriate mapping and review; marketing boundaries should not be assumed to establish legal approval.
- Tract combination
- A group of offered tracts considered together under the bidding rules. How combination bids compete with other bids and become contracts depends on the published process.
- Utility access
- The practical and documented ability to obtain or use utilities for a property or proposed tract. Availability, capacity, cost and rights require verification rather than assumptions from a nearby line.
- Zoning
- Land-use rules and classifications administered by the relevant authority. Confirm the proposed use with appropriate officials and talk with our team first about coordinating a Kentucky attorney's review of legal questions instead of assuming a past or advertised use is permitted.
Frequently asked questions
Are these definitions specific legal advice for my Kentucky sale?
No. They are general educational explanations of common terms. Your documents and circumstances matter. Talk with our team first about coordinating a Kentucky attorney's review of legal meaning, obligations and rights.
Why do two auction guides use different terms?
Offerings can use different formats and conditions. Ask the principal auctioneer which definitions and rules apply to the proposed auction, and read the actual published terms.
Where should I go after finding a definition?
Use the related guide beside the term to understand the broader process, then compare professional listing and auction options for your property.
Questions? Start with a real estate expert
Talk with us first. Our team works with Kentucky property owners every day and has experience across many selling situations. We can help with most property, selling, auction and general real estate questions, explain your next steps and point you to the right professional when needed.
We work with attorneys regularly and can help organize records, coordinate the selling process and explain when an attorney's advice is needed. We are not attorneys and do not give legal advice.
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