Rules of Auction
Rules of Auction according to the Consumer Protection Act, Act 68 of 2008
1.1 The sale by auction is subject to a reserve price.
1.2 The auctioneer or his agent shall be entitled to bid up to the reserve price on behalf of the owner, but shall not be entitled to make a bid equal to or exceeding the reserve price.
1.3 The rules of auction comply with section 45 of the Consumer Protection Act, Act 68 of 2008 (“the Act”).
1.4 The following provisions are brought to your attention: Section 45 subsection (1), (2) and (3) of the Act provides that:
1.4.1 In this section, “auction” includes a sale in execution of or pursuant to a court order to the extent that the order contemplates that the sale is to be conducted by an auction.
1.4.2 When goods are put up for sale by auction in lots, each lot is, unless there is evidence to the contrary, regarded to be the subject of a separate transaction.
1.4.3 A sale by auction is complete when the auctioneer announces its completion by the fall of the hammer, or in any other customary manner and until that announcement is made, a bid may be retracted.
1.5 The auction will commence at the published time and will not be delayed to allow any specific person or more persons to take part in the auction.
1.6 A person who attends the auction to bid on behalf of another person (i.e. on behalf of a company) must produce a letter of authority that expressly authorises him or her to bid on behalf of that person. Where a person is bidding on behalf of a company the letter of authority must appear on the letterhead of the company and must be accompanied by a certified copy of the resolution authorising him or her to bid on behalf of the company.
1.7 LEO Auctioneers (Pty.)Ltd. does have a trust account into which all monies will be paid by means of a Bank Cheque or Electronic Funds Transfer (EFT) for the benefit of the seller, minus any commission payable to LEO Auctioneers (Pty.) Ltd. in terms of the Conditions of Sale that applies to the auction sale (“the Conditions of Sale”). Banking Details: ABSA BANK; Branch Code: 632005; Account Name: LEO Auctioneers Trust Account; Account No.: 1009762295.
1.8 The auctioneer will during the auction announce the reason for the auction unless that reason is the normal and voluntary disposal of property by the seller.
1.9 Anyone who intends to bid at the auction must register his or her identity on the bidder’s record prior to commencement of the auction and such registration must meet the FICA requirements, (Financial Intelligence Centre Act, 2001) in respect of the establishment and verification of identity of the person and the person must sign the registration entry.
1.10 The bidder’s record and the vendor roll will be made available for inspection at the offices of LEO Auctioneers (Pty.) Ltd. during normal business hours without the charge of a fee. The bidders’ record will also be available for inspection at the auction.
1.11 The conduct of the auction is subject to the control of the auctioneer who has the sole right to regulate the bidding procedure.
1.12 The sale shall be by the rise and the property shall be sold to the highest bidder subject to the auction rules and the Conditions of Sale, as read out by the Auctioneer.
1.13 Every prospective bidder must either read the Conditions of Sale, or attend the reading thereof by the Auctioneer and must refrain from bidding unless he or she has either read the Conditions of Sale or attended the reading thereof by the Auctioneer.
1.14 Every bid shall constitute an offer to purchase the property for the amount bid, which the seller or the auctioneer may accept or reject in their absolute discretion. The seller and the auctioneer are entitled, in their absolute discretion to withdraw the property from sale prior to acceptance by the seller.
1.15 If no bid equals or exceeds the reserve price, the property may be withdrawn from the auction. The seller shall be entitled to instruct the auctioneer to accept any lower bid.
1.16 In the event of any dispute between the bidders, the decision of the auctioneer shall be final and binding.
1.17 Any error by the auctioneer shall be entitled to be corrected by him.
1.18 No bid may be withdrawn after the fall of the hammer until the expiry of the confirmation period that is provided for in the Conditions of Sale, during which time the offer shall be open for acceptance by the seller or his agent and if the offer is accepted, the sale shall be deemed to be a sale by auction for purposes of the Act.
1.19 The highest bidder (“the purchaser”) shall sign the Conditions of Sale immediately on the fall of the hammer.
1.20 The purchaser’s offer shall remain open for acceptance by the seller or by the auctioneer on behalf of the seller, until expiry of the confirmation period. The purchaser and the auctioneer acknowledge and agree that this provision is for the benefit of the seller.
1.21 The purchaser’s offer shall be deemed to have been accepted only when the seller or the auctioneer, whichever may be applicable, has signed the Conditions of Sale on behalf of the seller in the space provided at the end of the Conditions of Sale and the Seller shall not be required to notify the purchaser of the acceptance of its offer prior to expiry of the confirmation period.
1.21 Should the seller reject the purchaser’s offer, the auctioneer will repay to the purchaser any deposit and commission paid to it in terms of the Conditions of Sale.
1.22 In the event of the sale requiring the consent of any statutory authority or any court of law, then this auction sale is subject to the granting of such consent.
2. Auctioneer’s Commission
2.1 The purchaser shall be liable for and pay, in addition to the amounts payable in terms of the Conditions of Sale, auctioneer’s commission, plus VAT thereon, at the rate declared and announced by the auctioneer, which commission shall be payable into the trust account of the auctioneer immediately upon the seller signing the Conditions of Sale as acceptance of the purchaser’s bid.