Legal and FAQ’s

• Sellers do not have to wait long to sell. You immediately get a definite date of sale. Auction is action!
• It is safer and more convenient. Advertising goods for sale invites strangers into your home, one has to put up with appointments not kept, hagglers, etc. Going to auction with your goods takes all these worries off your shoulders.
• There is no time for playing games. Buyers know that the highest bidder wins, so they do not waste time finalising their decisions.
• The Auction method of marketing is rapidly becoming the number one method of selling worldwide.
• An Auction creates an exciting atmosphere among highly interested buyers.
• Don’t forget that you, as the seller, always stay in control.

• The items can be delivered or arrangements for collection can be made by calling our offices.
• The seller’s goods are catalogued in our ‘Goods Received Book’ and the seller is issued with a copy of the Goods Recieved Note (GRN).
• Alf Duncan Auctioneers will set the auction date, advertise, notify all relevant buyers from our extensive customer database and sell your items by auction.
• Reserves may be put on certain items, but only if in agreement with the auctioneer. If the reserves are too high for auction purposes, the auction house will advise you thereof. If the seller insists on a reserve, the item will be placed on auction, however, a 10 % premium is payable if the item is not sold. This is just to ensure that we don’t waste each other’s time.
• Alf Duncan charges 21 % seller’s commission (for large parcels, commission can be negotiated)

It’s that simple!

• Viewing the items is a must, because what you see is what you get. There are no returns accepted after an auction (with the exception of electrical appliances, buyers are allowed 24 hours to return a non-working appliance if it was sold as working)
• Register to receive your buyer’s number. Deposits may apply for various auctions.
• Bid for your item of interest by holding up your buyer’s card to catch the auctioneer’s attention. Stop when you have reached your limit and the auctioneer will sell to the highest bidder.
• Always check the payment requirements. Cash, cheque, credit card etc. Buyer’s commission is charged on items bought on auction at a rate of 15% VAT inclusive.

  E.g. R100 purchase + 15% buyers commission = R115

Do you frequently come to our auctions? Why not become a permanent buyer? You register once, maintain your number for a year & save time & hassle!

Auction
A method of selling an item, in a public forum, through open and competitive bidding.

Auctioneer
Person whom the seller engages to direct, conduct, or be responsible for a sale by auction

Auctioneer’s assistant
Assists the auctioneer to identify bidders from the podium, duplicates prices obtained on his own vendue roll and assists with telephonic bids.

Auction Plan
The plan for pre-auction, auction day and post auction activities.

Auction Price
The price of an item obtained through the auction method of marketing.

Auction without reserve/Absolute Auction
An auction where the item is sold to the highest bidder with no limiting conditions or amount.

Absentee Bid (Commission bid)
A procedure which allows a bidder to participate in the bidding process without being physically present. A bidder submits an offer prior to the auction.

Appraisal
The act or process of estimating values.

Bank letter of Credit
A letter from a bank, certifying that a named person is worthy of a given level of credit. Often requested from prospective bidders or buyers who are not paying with currency at auctions.

Bid
A prospective buyer’s indication or offer of a price he or she will pay to purchase an item at auction. Bids are usually in standardised increments established by the auctioneer.

Bid ringing
The illegal practice whereby two or more people agree not to bid against one another so as to deflate value. Also known as collusion and illegal in South African law.

Broker Participation
An arrangement for third-party brokers to register potential bidders for properties being sold at auction for a commission paid by the owner of the property or the auction firm.

Buyer’s commission
An advertised percentage of the high bid or flat fee added to the highest bid to determine the total contract price to be paid by the buyer. Also known as Purchaser’s commission.

Buyer’s Number
The number issued to each person who registers at an auction.

Catalogue or brochure
A publication advertising and describing the items available for sale at public auction.

Clerk
The person employed by the principal auctioneer or auction firm who records what is sold, to whom at what price.

Commission
The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the items, established by contract prior to the auction.

Conditions of sale
The legal terms that govern the conduct of an auction, including methods of payment, terms, buyers premiums, possession, reserves and any other conditions announced by the auctioneer prior to the start of the auction.

Due Diligence
The process of gathering information about the condition and legal status of assets to be sold.

“One to take all”
A method of sale whereby the successful high bidder wins the right to choose the number of lots he wants. After the high bidder’s selection, the lot is deleted from the group, and the second round of bidding commences for the sale of the balance of the goods.

Opening bid
The first bid offered by a bidder at an auction.

On-Site Auction
An auction conducted on the premises of the property of items being sold.

Preview
A specified date and time for prospective buyers to view and audit the items up for sale on auction.

Reserve
The minimum price that a seller is willing to accept for an item to be sold on auction.

Ringman
Assists the auctioneer to identify bidders during the auction.

Subject to Confirmation (STC)
An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids & to withdraw the item at any time prior to the announcement of the completion of sale.

“Vendue roll”
The document which is used to record the buyer’s number and price bid.

“Voetstoots”
Selling without warranties as to the condition and/or fitness of the items for a particular use. Buyers are solely responsible for examining and judging the property for their own protection.

Know your Auctioneer
Whether buying or selling, ensure your auctioneer is a member of a recognized professional organization such as SAIA, where a Code of Ethics governs its members.

Start by Observing
Choose an auction dealing in items of interest to you, and attend an auction just to watch.

Know the Difference
All auctions are different. A vehicle auction proceeds differently to a fine art auction. Observe first, bid later.

Attend the Preview
Most auction houses have a viewing date before an auction. Inspect the items which interest you.

Know the rules
Policies of each auction house are included in catalogues. This gives you general information on the auction, will there be “buyers premiums” added to the final price, etc. Ask questions at the preview, our staff are always willing to help!

Set a limit
Determine a price beforehand and stick to it. It is easy to get caught up in the bidding excitement.

Listen to the Auctioneer
Prior to the start of bidding on an item, the auctioneer will give information on the item – the lot number and description. Listen for any changes to the catalogue.

Dropping out
If you do not wish to carry on bidding on an item, and the auctioneer looks at you for a bid, signal “No”

Finalise your purchase
If you have successfully bid on an item, before you leave, you must complete payment and arrange for collections.