Auctioneering Flashcards
What Professional Statement relates to Client Money Handling for Auctioneers?
- Client Money Handling for Auctioneers. Professional Statement. 1st ed. Feb 2021.
When might a firm act as a “Principal” in the financial transaction?
- When the asset sold is exclusively livestock.
- When the sale is at an Auctioneers premises.
- When the sale is not wholly or mainly for one client.
What happens if the the firm is acting as a ‘Principal’ rather than an ‘Agent?’
- Sale proceeds are not paid into the a ‘client account’.
- RICS Client Money Protection Scheme will not protect the vendor if the firm becomes insolvent.
What are the risks for firms acting as ‘Principals’?
- Purchaser fails to pay for livestock (credit risk).
- Cost of financing the period between paying out the vendor and being paid by the purchaser.
What is the Auction (Bidding Agreements) Act 1927 & 1969?
- These Acts make it a criminal offence for someone to give an incentive or reward to any person for abstaining from bidding at a sale by auction and for any person to accept the inducement or reward.
What is the Sales of Goods Act 1979?
- requires goods to be as described, of satisfactory quality and fit for purpose before 30th September 2015.
What is the Consumer Rights Act 2015?
- Replaced the Sales of Goods Act 1979.
- all products must be of satisfactory quality, fit for purpose and as described.
- Come into force on 1st October 2015.
What is the Trade Description Act 1968?
- made it an offence for businesses or salespeople to sell a product or service based on misinformation.
What is the ‘Selling Personal Property at Auction 2014’ - RICS Guidance Note?
-Now archived!
- Covered topics such as; Before the sale; Pre-auction; the sale; after the sale; conditions of business;
Statutes; Cataloguing practice; Legal responsibilities
What are the Livestock Auctioneers’ Association Limited Conditions of Sale?
- Recommended Document for firms that are members of the Livestock Auctioneers’ Association.
- Last revised in Jan 2022.
- It includes Online Auctions Addendum to Conditions of Sale.
What do the Livestock Auctioneers’ Association Limited Conditions of Sale include?
- Definitions
- Interpretations
- Time limits
- Service of Notices
- Identification
- Liability of the Auctioneer
- Conduct of sales
- Exclusion of animals
- Reserve prices, order of sale and bidding
- Buyers premium
- Removal of livestock
-Terms of business
What is the limit on accepting cash for the purchase of an asset?
$10,000 euros (need to register with HMRC if you decide that you’ll accept or make high value cash payments).
What commission was charged at the Farm Sale at Lingen?
5% Commission - no buyers premium.
What is the key legislation relating to Auctioneering?
- Auction Bidding Agreements Act 1927 & 1969
- Consumer Rights Act 2015
- Food Safety Act 1990
When were the Conditions of Sale for all Livestock at Livestock Auction Markets last revised?
January 2022
How do you advise on the grouping of cull ewes?
Based on;
- Breed
- Confirmation
- Fat Covering
(To maximise price achieved!)
What information do you include in a farm sale catalogue?
- Date/address/time of Sale
- Conditions of Sale
- Identification requirements (ID & Address)
- Information re - Money Laundering
- If VAT is applicable
- Description of each Lot (condition, number of hours etc)
- Photographs
- Viewing arrangements
- Buyers premium
- Health & Safety
- Payment information
- Auctioneers Notes
What Auction Software do McCartneys use?
- Newline
What does the fall of the hammer signify?
The sale is closed, and the highest previous bid has been accepted.
What livestock sales may fall outside the LAA Conditions of Sale?
Pedigree Livestock Sales that are conducted on behalf of an association - they may have their own Conditions of Sale.
If you had a dispute regarding the condition of an animal, what would you do?
- First point of call - refer to Conditions of Sale.
- Act as an arbitrator between Seller and Purchaser.
- Instruct a vet to inspect the animal if necessary.
How would the handling of money at a Livestock Auction and Farm Sale differ?
Livestock Auction - Acting as a principal (not protected by RICS Client Money Protection Scheme)
Farm Sale - Acting as an agency (protected by RICS Client Money Protection Scheme)
