The consignor is the person or entity who delivers an item to an auction house to be sold on their behalf. The consignor retains ownership until the item sells, at which point the auction house collects payment from the buyer, deducts commission and fees, and remits net proceeds to the consignor.
Consignors sign a written consignment agreement that covers commission rate, reserve price (if any), how unsold lots are handled, and post-sale settlement terms. Volume consignors (estate liquidators, dealers, dispersal sales) often negotiate lower commission rates than one-time consignors. Consignor settlement statements show every lot sold, hammer prices, fees deducted, and net check amount.
The consignment relationship is fiduciary — the auction house owes the consignor a duty of care for their property and a duty of accounting for sale proceeds. Major consignment categories include estates (where the consignor is an executor), dealer dispersals (where a retail dealer is liquidating slow-moving inventory), and divorce or downsizing sales (where individuals are converting personal property to cash). Consignor agreements should always specify what happens to passed lots — whether they’re returned, re-cataloged for the next sale, or sold post-auction.