public auction

A public auction is a sale open to all members of the public in which property is sold to the highest bidder. Public auctions are commonly used by government agencies to dispose of government-owned property or private property seized by legal process following a court order or by operation of law, such as under a writ of execution, foreclosure, or tax levy.

Items sold at public auction may include vehicles, machinery, surplus equipment, and real estate owned, forfeited, or seized by the government. Under the Internal Revenue Code, property seized by the federal government must be sold either through a public auction or a sealed bid auction to ensure fair market competition. Public auctions are conducted in accordance with statutory procedures designed to promote transparency, provide adequate public notice, and ensure open and competitive bidding.

[Last reviewed in October of 2025 by the Wex Definitions Team]

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