Auction glossary: 15 terms every bidder should know

Auction vocabulary intimidates newcomers. Keep this glossary — it covers the terms that appear in almost every terms document in Brazil.

Starting bid

The lowest value at which the lot can start being contested. It is not the final price, just the starting point.

Increment (or minimum bid step)

The minimum amount by which each new bid must beat the previous one. E.g. with a R$500 increment, after a R$20,000 bid the next valid one is R$20,500.

Auctioneer's commission

A percentage the buyer pays the auctioneer on top of the lot value. In Brazil it is usually 5%.

Registration (habilitação)

The approved account that lets you bid on the platform. It involves submitting documents and sometimes a deposit.

Terms document (edital)

The auction contract. It sets payment rules, deadlines, the state of the assets, responsibility for debts and everything else. Reading it is not optional.

Extra time (automatic extension)

In online auctions, if someone bids in the final seconds, the timer restarts for a short period. It prevents last-instant "sniper" bids.

"As is" (ad corpus)

The asset is sold exactly as it stands, with no guarantee of working order or exact measurements. What you saw at the viewing is what you get.

Lot

Each item (or set of items) auctioned individually, with its own number.

To win (arrematar)

To win the contest for a lot with the highest valid bid.

Letter of award

The document proving you won the lot. For property, the letter of award is the title taken to registration.

First and second call (1ª / 2ª praça)

In judicial auctions, the first call usually requires a bid at or above the appraisal; the second call accepts lower bids, within a limit so it is not deemed a "derisory price".

Derisory price (preço vil)

A bid so low that the judge can void the award. It is usually set below 50% of the appraisal.

Debts "subrogated into the sale price"

When the asset's debts are cleared from the bid money itself — so nothing passes to the buyer. The opposite: debts "for the buyer's account".

Direct sale

A mode with no live floor: there is a set price (sometimes with a growing discount) and interested parties send a proposal. This is the case with the federal property we promote.

Redemption (remição)

The right of certain people (such as the debtor or family members) to "reclaim" the asset by paying the debt before the award is finalised.

Still stuck on a term that is not here? Write to us or see the open lots to practise with real cases.