Selling at auction
Auctions have always been a popular sales technique, used to sell many types of goods from small household items through to cars and houses.
- the property is sold on behalf of a seller
- bids for the property are placed with the auctioneer in real time, whether in person, by telephone, via the internet, or by any other means
- the property is sold when the auctioneer indicates.
Who is an auctioneer?
- those registered under the Auctioneers Act 2013 or not required to be registered
- those engaged by a registered auctioneer to conduct auctions on its behalf
- some motor vehicles dealers and real estate agents even though they are exempted from registration under the Auctioneers Act.
The Auctioneers Act
- the seller
- the property
- the person who conducted the auction
- the bids received
- the price of sale
- the date on which the proceeds were paid to the seller.
- a notice of auction terms must be made available for consumers to view before and during the auction
- an auction starts when the auctioneer invites the first bid and ends when the auctioneer makes it clear the bidding is closed
- a bid can be withdrawn at any time before the end of the auction
- vendor bidding is allowed in certain situations
- an item is considered to be sold at auction if it is unsold at the end of the auction but the auctioneer accepts an offer from a customer who attended the auction within 1 working day of the auction.
Notice of auction terms
- if any reserve price applies
- if vendor bids are allowed
- if the seller is in trade.
- the notice of auction terms specifies that vendor bids are permitted (for that lot)
- a reserve price is set
- the vendor bid is below the reserve price
- the auctioneer clearly identifies each vendor bid when it is made during the auction.
After the auction
- the winning bid
- the amount of any tax
- the auctioneer’s commission or other deductions
- the net amount payable to the seller.
- the seller is in trade or is selling goods not normally purchased for personal, domestic, or household use or consumption, and the seller agrees that these requirements need not apply
- the auction was for land or an interest in land and was conducted by a licensed real estate agent where the provisions outlined in the Real Estate Agents Act applies instead.
Consumer Guarantees Acts
- be of acceptable quality
- be fit for a particular purpose
- arrive on time and in good condition
- match the description
- be supported by available spare parts and repair facilities (by manufacturers).