Rules of auction

Draft pending legal review. Not yet signed off by Dynamic Auctioneers’ attorney. The document that governs a particular auction is that auction’s own signed rules of auction, not this page.

What the rules of auction are

Regulation 21 of the Consumer Protection Act Regulations, 2011, made under the Consumer Protection Act 68 of 2008, requires a written document called the rules of auction for every auction. A separate document is prepared for each auction. It carries the date, place and time of that auction, and it is signed by the auctioneer who will conduct it.

How to get a copy of ours

Ask us, and we will send it to you. There is no charge.

The regulations require the rules for an auction to be available at least 24 hours before it starts. If you are looking at an auction on our auction room and cannot find them, ask and we will send them.

What the document has to contain

Regulation 21 sets a minimum. The rules of auction for any South African auction must cover, among other things:

• the date, place and time of the auction
• the auctioneer’s full name, physical address and contact details
• whether the sale is subject to a reserved or upset price, and whether the owner or the auctioneer may bid
• a statement that the rules comply with section 45 of the Act and with the regulations
• the text of section 45(2) of the Act, which provides that where goods are put up for sale in lots, each lot is, unless there is evidence to the contrary, regarded as the subject of a separate transaction
• that the auction starts at the published time and will not be delayed for any person
• what a person needs in order to bid on someone else’s behalf
• how bidders register, and what registration requires
• a breakdown of the cost of advertising and conducting the auction, and whether further costs may be added
• the reason for the auction, where it is not an ordinary voluntary sale by the owner

If the rules are changed after they have been published, the new version is marked as an amended version.

Rules of auction and conditions of sale are not the same document

Both apply, and they do different jobs. The rules of auction govern how the auction itself is run, and they apply to everyone taking part. The conditions of sale are the terms of the contract between the seller and the successful bidder: the deposit, the commission, payment periods, transfer and risk. Where both are published in one document, that document is headed “rules of auction” and the conditions of sale sit inside it.

Registering to bid

You must register before the auction starts. Registration requires proof of identity and proof of residential address, in line with the Financial Intelligence Centre Act. A bid taken from someone who is not registered is not valid. If you are bidding for another person you need a letter of authority from them; if you are bidding for a company, that letter must be on the company letterhead and come with a certified copy of the resolution authorising you to bid.

Inspecting before you bid

You may inspect the goods or the property before the auction starts, at no charge. We may ask you to follow reasonable security arrangements while you do. Auction assets are sold as they stand, so the inspection is the part that protects you.

Questions

If anything here is unclear before an auction, ask before you bid rather than afterwards. 086 155 2288 or info@dynamicauctioneers.co.za.