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RICS APC 2022 > Auctioneering > Flashcards

Auctioneering Flashcards

1
Q

What Professional Statement relates to Client Money Handling for Auctioneers?

A
  • Client Money Handling for Auctioneers. Professional Statement. 1st ed. Feb 2021.
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2
Q

When might a firm act as a “Principal” in the financial transaction?

A
  • 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.
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3
Q

What happens if the the firm is acting as a ‘Principal’ rather than an ‘Agent?’

A
  • 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.
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4
Q

What are the risks for firms acting as ‘Principals’?

A
  • Purchaser fails to pay for livestock (credit risk).
  • Cost of financing the period between paying out the vendor and being paid by the purchaser.
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5
Q

What is the Auction (Bidding Agreements) Act 1927 & 1969?

A
  • 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.
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6
Q

What is the Sales of Goods Act 1979?

A
  • requires goods to be as described, of satisfactory quality and fit for purpose before 30th September 2015.
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7
Q

What is the Consumer Rights Act 2015?

A
  • 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.
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8
Q

What is the Trade Description Act 1968?

A
  • made it an offence for businesses or salespeople to sell a product or service based on misinformation.
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9
Q

What is the ‘Selling Personal Property at Auction 2014’ - RICS Guidance Note?

A

-Now archived!
- Covered topics such as; Before the sale; Pre-auction; the sale; after the sale; conditions of business;
Statutes; Cataloguing practice; Legal responsibilities

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10
Q

What are the Livestock Auctioneers’ Association Limited Conditions of Sale?

A
  • 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.
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11
Q

What do the Livestock Auctioneers’ Association Limited Conditions of Sale include?

A
  • 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
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12
Q

What is the limit on accepting cash for the purchase of an asset?

A

$10,000 euros (need to register with HMRC if you decide that you’ll accept or make high value cash payments).

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13
Q

What commission was charged at the Farm Sale at Lingen?

A

5% Commission - no buyers premium.

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14
Q

What is the key legislation relating to Auctioneering?

A
  • Auction Bidding Agreements Act 1927 & 1969
  • Consumer Rights Act 2015
  • Food Safety Act 1990
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15
Q

When were the Conditions of Sale for all Livestock at Livestock Auction Markets last revised?

A

January 2022

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16
Q

How do you advise on the grouping of cull ewes?

A

Based on;
- Breed
- Confirmation
- Fat Covering
(To maximise price achieved!)

17
Q

What information do you include in a farm sale catalogue?

A
  • 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
18
Q

What Auction Software do McCartneys use?

A
  • Newline
19
Q

What does the fall of the hammer signify?

A

The sale is closed, and the highest previous bid has been accepted.

20
Q

What livestock sales may fall outside the LAA Conditions of Sale?

A

Pedigree Livestock Sales that are conducted on behalf of an association - they may have their own Conditions of Sale.

21
Q

If you had a dispute regarding the condition of an animal, what would you do?

A
  • 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.
22
Q

How would the handling of money at a Livestock Auction and Farm Sale differ?

A

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)

RICS APC 2022 (17 decks)

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