The sale by auction is subject to a reserve price. 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. The Rules of Auction comply with section 45 of the Consumer Protection Act no. 68 of 2008, hereinafter referred to the as the “the Act”.
The following provisions of Section 45(1), (2) and (3) are brought to your attention, and provide that:
- In this section “auction” includes a sale in execution pursuant to a court order to the extent that the order contemplates that the sale is to be conducted by an auction.
- When the 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.
- 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.
The Auction will start at the published time without delayed to allow any specific person(s) to bid on the auction. A person who attends the auction to bid on behalf of another person or entity must produce a letter of authority that expressly authorizes him or her to bid on behalf of that person or entity. 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 authorizing him or her to bid on behalf of the company.
All monies must be paid to Dynamic Auctioneer’s Trust Account for the benefit of the seller, minus commission payable to Dynamic Auctioneers in terms of the Conditions of Sale that applies to the auction. The auctioneer will during the course of the auction announce the reason for the auction unless that reason is the normal and voluntary disposal of property by the seller.
Anyone that intends to bid at the auction must register his or her identity on the bidder’s record prior to the start of the auction and such registration must meet the requirements of the Financial Intelligence Center Act of 2001, in respect of the establishment and verification of identity of the person and that person must sign the registration entry. The bidder’s record and the vendor roll will be available for inspection at the offices of Dynamic Auctioneers during normal business hours free of charge, as well as at the auction.
The conduct of the auction is controlled by the auctioneer who has the sole right to regulate the bidding procedure. The sale shall be by the rise and property shall be sold to the highest bidder subject to the Auction Rules and the Conditions of Sale. Every prospective bidder must read the RULES OF AUCTION and CONDITIONS OF SALE and must not bid unless he or she has done so.
Every bid shall be an offer to purchase the property for the amount bid, which the seller or the auctioneer may accept or reject, including the right to withdraw the property prior to acceptance by the Seller, in their absolute discretion. 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.
In the event of a dispute between the bidders, the decision of the auctioneer shall be final and binding. The auctioneer shall be entitled to correct any error by him.
No bid may be withdrawn after the fall of the hammer. The offer to purchase shall be open for acceptance by the Seller or his agent for the period provided for in the Conditions of Sale. If the offer is accepted the sale shall be binding and deemed to be a sale by auction for the purposes of the Act. The highest bidder shall sign the Conditions of Sale immediately on the fall of the hammer.
The highest bidders (purchaser’s) offer shall be open for acceptance by the Seller or his Agent (the auctioneer) on behalf of the Seller, during the confirmation period. The Purchaser’s offer shall be deemed to have been accepted when the Seller or the Auctioneer has signed the Conditions of Sale on behalf of the Seller. The Seller shall not be required to notify the purchaser of the acceptance of the offer prior to the expiry of the confirmation period.
Should the purchaser’s offer be rejected by the Seller, the purchaser shall be entitled to a refund of any deposit and or commission paid to it in terms of the Conditions of Sale. Should the sale require the consent of a statutory authority or any court of law, then the auction shall be subject to the granting of such consent.