Kentucky Auctioneer License Practice Exam 2025 - Free Auctioneer License Practice Questions and Study Guide

To advertise an auction as "absolute," it is essential that there are no liens or encumbrances on the property being auctioned, except for current taxes. An absolute auction means that the property will be sold to the highest bidder without any conditions, making it a straightforward transaction where the seller is committed to selling, regardless of the bid amount. This aspect is crucial for potential bidders; knowing that the auction is absolute assures them that they can bid confidently without worrying about any hidden attachments that could complicate the sale.

The other options involve requirements that are not necessary for an auction to be classified as absolute. For example, confirming prior bids or announcing a reserve price would suggest there are conditions attached to the sale, which is contrary to the concept of an absolute auction. Similarly, holding the auction in a public space does not pertain to the nature of the transaction itself but rather relates to logistics. Therefore, the stipulation surrounding liens or encumbrances is the defining factor that must be satisfied for an auction to be appropriately labeled as absolute.