Auction glossary:
the words, in plain English.

The amount by which each new bid must beat the one before it. The auctioneer sets the increments.

See buying on auction.

The number a registered bidder is given before they may bid, recorded against their name in the bidders’ record. In a room it is shown on a paddle or a similar card. A bid taken from someone who is not registered is invalid.

Source: Consumer Protection Act Regulations, regulation 28(1) and (2).

A process under Chapter 6 of the Companies Act to rehabilitate a financially distressed company, under the temporary supervision of a business rescue practitioner. While it runs, the company may dispose of property only in the ordinary course of its business, in an arm’s length transaction for fair value approved in advance and in writing by the practitioner, or as part of an approved business rescue plan.

Source: Companies Act 71 of 2008, sections 128(1)(b) and 134(1)(a). See business rescue and liquidation sales.

A charge the successful bidder is liable for on top of the hammer price, usually a percentage of it, which goes to the auctioneer rather than the seller. In South Africa it is more often called buyer’s commission. The rate is set in the conditions of sale for each auction, and VAT can apply to it.

Guide: Buyer’s premium explained.

The terms of the contract between the seller and the successful bidder: the deposit, the commission, payment periods, transfer and risk. They are published for each auction and can differ between lots, so read the set for the lot you are bidding on.

How they differ from the rules of auction.

Where a bid is taken subject to the seller’s confirmation, often shown as STC, the period in the conditions of sale within which the seller accepts or declines it. The highest bidder becomes the purchaser subject to any reserve and to the seller accepting the bid.

Source: Consumer Protection Act Regulations, regulation 28(6). Guide: The reserve price explained.

The Financial Intelligence Centre Act 38 of 2001. The auction regulations require every prospective bidder to register their identity before the auction starts, verified to the standard set under that Act, which is why registration asks for proof of identity and of residential address.

Source: Consumer Protection Act Regulations, regulations 20(2)(h) and 26(2). Guide: Registering and bidding online.

The certificate the Property Practitioners Regulatory Authority (PPRA), the statutory regulator for property practitioners, issues to a property practitioner under the Property Practitioners Act. Each one carries a number and an expiry date, which you can check with the PPRA.

Source: Property Practitioners Act 22 of 2019, section 47(3). Ours is on our credentials page.

A business sold as a working whole, with the assets it needs to keep earning, rather than as separate items. For VAT, such a sale is zero-rated only if every requirement of section 11(1)(e) of the VAT Act is met, including that buyer and seller are both registered vendors and agree in writing that it is sold as a going concern.

Source: SARS VAT 404 Guide for Vendors, section 6.3.3. See business sales. Guide: Selling a business as a going concern.

The winning bid when the auctioneer announces that a lot is sold, traditionally by the fall of the hammer. Subject to any reserve and the seller accepting the bid, the highest bidder at that moment is the purchaser. Any buyer’s commission and VAT are charged on top, as the conditions of sale set out.

Source: Consumer Protection Act Regulations, regulation 28(6).

Your chance to examine the goods or the property before the auction. The auctioneer must give a reasonable opportunity to inspect before the auction starts, and may not charge for it, although reasonable security measures can apply.

Source: Consumer Protection Act Regulations, regulation 28(5).

The Master of the High Court’s appointment of an executor. Nobody may wind up or distribute a deceased estate except under letters of executorship or a direction from the Master, which is why we ask to see them before marketing estate assets.

Source: Administration of Estates Act 66 of 1965, section 13(1). Guide: Selling deceased estate property.

An auction called live by an auctioneer and streamed online, so that registered bidders can bid from wherever they are while it happens. Some are held on-site at the same time, with bidders in the room as well.

Upcoming ones are listed on upcoming auctions.

Any item, or group of items, offered for sale as one unit and identified as such. Unless there is evidence to the contrary, each lot is regarded as the subject of a separate transaction.

Source: Consumer Protection Act 68 of 2008, section 45(2), and regulation 18 of the regulations.

The written agreement between the owner and the auctioneer that authorises the sale and sets out its terms. The regulations require one before an auctioneer sells anything for someone else, and require the seller to sign a declaration that they own the goods or have the right to sell them.

Source: Consumer Protection Act Regulations, regulations 22(2) and 27. Why it comes first: selling on auction.

An auction held in person at a published venue, with bidders in the room. Some are webcast at the same time, so registered bidders can also take part online.

The first bid the auctioneer accepts on a lot. Bidding then rises in the increments the auctioneer sets, and a lot that does not reach its reserve is not sold.

A sale negotiated with one buyer at a time rather than by open bidding. We offer it alongside auction: property through Dynamic Real Estate, and some movable assets through our stock list.

The two routes compared: property auctions.

A refundable amount some auctions ask for before you can bid. It is refunded if you do not win, and the amount is set per auction. The regulations forbid charging a fee to take part in an auction, but refundable deposits are allowed.

Source: Consumer Protection Act Regulations, regulation 28(7).

The minimum the seller has agreed to accept. It is not published, and if bidding does not reach it the lot does not sell. Auction advertising has to say whether a sale is subject to a reserve, not what the reserve is.

Source: Consumer Protection Act Regulations, regulation 20(2)(h). Guide: The reserve price explained.

The written document every South African auction must have, setting out how that auction is run. It is signed by the auctioneer and must be available at least 24 hours before the auction starts.

Source: Consumer Protection Act Regulations, regulation 21. Ask us for ours: rules of auction.

An online auction that opens and closes at published times. Registered bidders place their bids in the online auction room during that window; each auction’s page shows when registration and bidding close.

Our auction room: online.dynamicauctioneers.co.za.

The people appointed to realise assets for creditors. A trustee administers an insolvent person’s estate under a certificate of appointment from the Master, and sells as the creditors direct or, without directions, by public auction or public tender. A liquidator does the equivalent job for a company or close corporation being wound up.

Source: Insolvency Act 24 of 1936, sections 56(2) and 82(1). Guide: Insolvency and liquidation auctions.