In a reserve auction, what right does the seller retain?

In a reserve auction, the seller retains the right to refuse the highest bid. This means that the seller has set a minimum price, known as the reserve price, which must be met before the property can be sold. If the highest bid does not reach this reserve price, the seller is not obligated to complete the sale and can reject the bid. This mechanism protects the seller from selling the property for less than they are willing to accept, giving them control over the sale process even after the bidding concludes.

While the seller may have other rights in the auction process, the specific feature of a reserve auction is primarily centered around maintaining the ability to refuse bids below a certain threshold. This is crucial because it allows the seller to have more certainty about the outcome of the auction and ensures that they do not have to accept an unfavorable offer.