Auctioneering

Question 1

What are the Key Features of the Auctions (Bidding Agreements) Act 1969?

Answer 1

The Act was instituted to prevent collusive bidding practices.

Schedule 1 - details offences under Auctions (Bidding Agreement) Act 1927 to be indictable as well as triable and extension of time for bringing proceedings

Schedule 2 - Details persons convicted not to attend or participate in auctions

Schedule 3 - Rights of seller of goods by auction where agreement subsists that some person shall abstain from bidding.

Schedule 4 - Copy of the Act to be exhibited at the the sale.

Question 2

What other Legislation is applicable to rural auctioneering practice?

Answer 2

The Auctions (Bidding Agreements) Act 1927 and the Auctions (Bidding Agreements) Act 1969

Estate Agents Act 1979

Auctioneers Act 1845

Consumer Rights Act 2015

Sale of Goods Act 1979

Sale of Land by Auction Act 1867

EPC’s for residential & commercial properties

Property disclosures

Question 3

What Livestock Movement Legislation must be adhered to?

Answer 3

The Cattle Identification Regulations 2007
The Sheep and Goats (Records, Identification and Movement) (England) Order 2009

Question 4

Why must livestock movement legislation be adhered to?

Answer 4

To prevent and control the spread of animal disease, maintain traceability of livestock for safety & public health

Question 5

Who Governs the movement of Livestock?

Answer 5

Cattle - By DEFRA through the British Cattle Movement Service (BCMS)

Sheep - By DEFRA through the Livestock Information Service (LIS)

Question 6

How is Livestock Welfare maintained?

Answer 6

By adhering to the following:
The Animal Welfare Act 2006
The Welfare of Animals at Markets Order 1990 (As amended 1993)
The Welfare of Animals (Transport)(England) Order 2003
Our Market has a nominated Livestock Welfare Officer

Question 7

What do you understand of AML regulations?

Answer 7

A comprehensive set of laws designed to prevent criminals from disguising illegally obtained funds as legitimate income. They aim to safeguard the financial system’s integrity by requiring businesses to identify and verify their clients, monitor transactions, and report suspicious activities.

Question 8

How are these undertaken regarding auctions?

Answer 8

For property auctions - require proof of ID, recent utility bill (within last 3 months), run a smart search on them.

For machinery sales & livestock - Proof of ID recent utility bill (within the last 3 months).

Question 9

What is required by an auctioneer prior to accepting an item to sell?

Answer 9

Livestock Machinery Sales: Signed entry form,
vehicles - log books HP Check ID Recent Utility Bill (within the last 3 months)
Property - Money laundering checks & signed terms

Question 10

How do you ascertain the sellers legal right to sell?

Answer 10

All items must be accompanied by an entry form, which stated that the individual who is entering the lots is the legal owner.

For larger pieces of kit we will check for HP agreements, of registered check registration documents.

Question 11

What are the Key features of the RICS Professional Standard Auctioneers selling Real Estate?

Answer 11

Published in March 2018 and Reissued October 2023

Outlines the principals that shape the culture of fairness & transparency that underpin all activities under taken by real estate auction firms.

Standards & ethics
Common Auction Conditions
Auctioneers relationship with the seller
Auctioneers relationship with the bidder
AML
Publication of auction results
Data Protection

Question 12

What documentation do you require from a prospective purchaser prior to bidding at auction?

Answer 12

Required to register to for bidders number.

Name & contact details
In some instances a form of ID & Utility Bill

Question 13

How do on the day practices differ between an on site and online auction/hybrid?

Answer 13

Sale Day predominantly the same, with the exception of buyer registration.
Bidder register online - for unknown bidders we will ask for a reference and have to ability to approve bidders online before the sale.

Question 14

what is the process of Lotting?

Answer 14

Items dropped to sale field.
Check entry form details and reserves with the vendor
Check if items are subject to VAT
Lay items out in rows & check if any lots are to be sold together or with an option
Give each of the lots a lot number
Wite the sales sheets with the vendors details, VAT status, reserves, description of the individual lots against the applicable lot number

Question 15

What is the process of creating an order of sale for the day? (what goes first/middle/last?

Answer 15

At our farm & machinery sales booking in will generally be on first come first served basis with items lotted as they come.

Larger kit & higher value items such as tractors, balers, vehicles or items sold on MartEye will be in the middle of the sale. MartEye normally commences at 12.00.

This will generally keep a bigger crowd at the sale, with alot of people wanted to see the bigger sold

Question 16

How are bids taken?

Answer 16

In person
Online (if applicable)
by proxy (must be in writing before commencement of the sale) - made at bidders own risk, auction staff are no responsible.
Telephone

Question 17

What is the legal position at the fall of the hammer?

Answer 17

Winning bidder is legally bound to the purchase the items and seller obligated to sell it.
Form a legally binding contract

Question 18

How are monies managed?

Answer 18

Payment is via Cash, debit cards, BACS transfer & cheque from known clients.

At the end of the sale we balance the sale

All monies are then given to the accounts department and paid into the client account.

For livestock sales - the same principal applies but monies are paid into market account -

Rendells act principal rather than agent and the clients are made aware that monies are not paid into a client account and the RICS money protection scheme doesn’t apply.

Question 19

How are auctioneers costs/liabilities calculated and obtained?

Answer 19

Auctioneers liabilities include advertising or Marteye fees which are £200/event or 1% of sale total depending on which is greater.

They are obtained from
Buyers premium - 10% +VAT (12.5%) up to £250

Sellers commission - 10% + VAT (12.5%) for the first £1000 and 6% + VAT (7.2%) thereafter.

Buyers premium is added to the to items bought (the vendor pays)

Sellers commission deducted from the items sold (vendor pays)

Question 20

How do you ensure the correct purchaser collect the correct item?

Answer 20

Buyer must produce an invoice generated by our software system (newline).

With the lot number & description if necessary checked against the invoice

Question 21

What happens if an item does not sell/reach the reserve price?

Answer 21

The hammer doesn’t come & item is not sold

Question 22

What happens if an items isn’t paid for?

Answer 22

The vendor is notified immediately, police are altered to obtain a crime reference number & the insurers are contacted to establish the firms position

Question 23

What happens if an item has been damaged?

Answer 23

After the fall of the hammer it is the purchasers responsibility.
before the sale - alert the vendor immediately
Depending on fault or the damage done speak to insurers to check firms position

Question 24

What is required to be detailed in the catalogue?

Answer 24

Type of sale, location, date start time. Lot number and description for bigger kit photographs and conditions of sale.

Question 25

How do you manage an on-site farm dispersal sale?

Answer 25

Undertake a Risk Assessment in accordance with H&S at work Act 1974 - these will be created for each on-site farm sale First aid checked & ensure there is a first aider in attendance on the staff To the sale signs, carparking, sale field, office signs erected Caters are contacted & booked in advance Portaloos are contacted and booked in advance

Question 26

What is bidding off the wall & is it legal?

Answer 26

Auctioneering tactic Auctioneer on behalf of the seller makes bids to encourage bidding It is legal - providing the off the wall bids are only up to reserve price not including the reserve or and not above reserve

Question 27

What is guide price?

Answer 27

Estimated Value must within 10% of the sellers reserve.

Question 28

What is reserve price?

Answer 28

The price stipulated as the lowest acceptable by the seller

Question 29

What is the LAA?

Answer 29

Livestock Auctioneers Association (LAA) National Representative Organisation for Livestock Markets & Auctioneers in England & Wales

Question 30

What are the Key LAA Conditions of Sale?

Answer 30

Sch 1 - Cattle Sch 2 - Sheep Sch 3 Pigs Sch 4 - Horses & Ponies Sch - 5 Poultry & Rabbits Sch - 6 Warranty Rights & return of stock

Question 31

Monthly Markets what do you do you do re penning, picking, lotting cattle?

Answer 31

Penning - initially when cattle arrived I will run them in to pens before picking. Picking - Vendor sometimes stipulates how they want cattle sold ie singles or in a bunch - we then check the ear tags numbers against the entry form, the tag and then picked from the bunch into a separate pen if or picked out from the bunch to run into the ring (depending on numbers & availability of individual pens) If left to auctioneer - we will assess age, sex, breed, size and confirmation with similar animals being sold together or the animal sold as a single if it is comparable to the others and picked as above. A picking card is then created for the drovers so they know how the animals are to be sold in the ring so they can be picked from a bunch if necessary. Lotting - The cattle are given a lot number, with the lot number corresponding with their ear tag number. The number is then written on the animals passport to ensure the right passport goes with the right animal.

Question 32

Before Stock are unloaded what do you check?

Answer 32

I will check how many animals are on board, check we have correct number of passports, check the entry form inc. VAN number, check date of last TB Breakdown & TB test date. Check that they are not under standstill. Documents required - Cattle passports Sheep movement licences VAN - Veterinary Attestation Number from Dec 2023 must have one if If livestock are produced for food chain and not under a qualifying assurance scheme. Verifies animal welfare and absence of notifiable diseases. Must be provided by a vet & renewed every 12 months. TB: Devon - HRA subject to 6 monthly testing, unless 6 years clear from last TB breakdown then subject to annual testing. You have 60 days to move cattle from the date of your clear test. Claves under 42 days area exempt from testing Standstill Rule - after cattle or sheep are moved onto a holding from a different holding - must not move any cattle/sheep/goats off the holding for 6 days - helps reduce the spread of infectious diseases

Question 33

What is the relevance of TB Testing?

Answer 33

Animals must be moved within 60 days of the TB test date.

Question 34

What is FABBL Accreditation?

Answer 34

Farm Assured British Beef & Lamb - proves certification that agricultural practices & meat products available from farms in the scheme are assured for welfare & quality. Red Tractor is another farm assurance scheme. Cattle that are not farm assured can be bought and kept on a farm assured holding for min 90days before to be farm assured. Attract a premium at slaughter

Question 35

What is detailed on the sales sheet?

Answer 35

Vendors details Farm Assurance Accreditation (if any) TB Test Date Breed Sex DoB Nominated Sire (if applicable) Any other details which vendor would like known ie naturally polled, easy calving

Question 36

What is a nominated sire and why is this important?

Answer 36

Bull used for breeding, specifically identified and declared when registering a calfs birth. In certain breeds like AA, it can increase the animals value

Question 37

How do you determine the legal ownership of cattle?

Answer 37

The registered owners/keepers details are on the animals passport along with the ear tag number which identifies that particular animal

Question 38

How do you determine the legal ownership of sheep?

Answer 38

Ear tags which are registered to a holding number (CPH) which is registered to a individuals farm.

Question 39

How does electronic ear scanning/recording work?

Answer 39

Count number of sheep in the pen Put pen number in the reader and scan ear tags check the correct number of tags have been read

Question 40

How does it relate to invoicing?

Answer 40

Read is connected to laptop and ear tag info downloaded. Pen numbers are recorded to the vendor. Sale info is input into the system. Invoices are generated with the tag number and pens number one for vendor and one for buyer o they can record their off/on movements respectively

Question 41

What do you do when reading ear tag numbers?

Answer 41

Enter the pen number on the electronic reader. Count the number of animals in the pen and scan each animal with the electronic reader making sure it reads the correct number (the scanner will not read the same ear tag twice). Once all pens are scanned the reader is connect to the lap top and the information is transferred

Question 43

What do you do about movement licences?

Answer 43

Check the correct number of animals are recorded along with ear tag numbers. Check that all the departure location details are filled in correctly with the vendor. Check transport details have been filled in inc. vechile registration I will fill in the recieving location details: CPH number of the market, date & time of unloading, number of animals recieved & telephone number and sign the form. I will keep the pink copy which is kept on the market file I keep a white copy which is sent to LIS after the sale The blue & yellow copies are returned to the vendor being for the haulier & the departure

Question 44

Christmas Dead Poultry Sale, How do you lot & weight the birds.

Answer 44

The birds are given a lot number and then taken out of any boxes, packaging and place on a weigh scales, along with the giblets (if applicable) and the weight recorded in kg's & lbs - this is recorded on the lot number in writing so buyers can see and also on the sales sheets.

Question 45

How was the sale process undertaken?

Answer 45

Sale turkeys starts at 5pm, with the game, other poultry & meats commencing 30mins later. Bidders register for a bidding number and bid in person

Question 46

How do you ensure the right person collect the right lots?

Answer 46

The sale operates a one way system with one way in and one way out. Buyers are required to pay for their lots before collecting. Once the lots are collected they must pass through the security gate, where I will check their receipts against he lot numbers on the lots.

Question 47

How do bidders register?

Answer 47

They must register in the office, filling out a buyers registration form providing name, address & contact details and they are given a bidding number. We do not require proof of fund as payment must be in cash or by debit card.

Question 48

At Bovey Farm Sale online via MartEye what did you do?

Answer 48

I photographed all the items to be sold on MartEye. Uploaded these along with the lot number the description of each item to MartEye.

Question 49

How did you ensure the items were correctly described?

Answer 49

I checked the items agains the description. Checked hours, serial number etc. If I was unsure about what an item was I checked with the vendor or the auctioneer.

Question 50

What is the issue if they are not?

Answer 50

Buyer could have legal redress if the description is materially different to the auctioneers description - Under the Sale of Goods Act 1979 Buyers must satisfy themselves as to the condition of the lots. They are sold subject to any defects

Question 51

How do you determine reserves?

Answer 51

If not disclosed on the entry form: Discuss with the vendor and they will usually state a reserve. These are recorded on the sales sheets using the Firms code.

Question 52

Why are reserves not disclosed?

Answer 52

Protecting the sellers interests - ensuring they do not sell the item for less than they wish. Bidders are more likely to participate and increases the likelihood of the lot realising a higher price