Auctioneer Practice Exam

When does the legal title pass during the sale of personal property at auction?

1. At acceptance of bid

2. Upon payment

3. Fall of the hammer

4. After closing

The correct answer is: Fall of the hammer

The correct choice indicates that legal title to personal property at auction passes at the fall of the hammer. This moment represents the official conclusion of the bidding process. When the auctioneer brings the gavel down, it signifies that the highest bid has been accepted, and a binding contract is formed between the seller and the winning bidder. This timing is crucial because it marks the transfer of ownership rights, regardless of whether payment has been made at that moment or not. While payment is a necessary part of the transaction, it is the action of the auctioneer's hammer falling that legally transitions the ownership of the property being auctioned. In contrast, the other choices refer to different aspects of the transaction process. Acceptance of the bid does start the agreement, but it's not until the gavel falls that legal title is transferred. Payment is often a follow-up requirement, but it occurs after the title has already passed. Lastly, closing typically relates to a finalization in a real estate context rather than the immediate proceedings of an auction.