RULES OF AUCTIONS

THE SHERIFFS PROFESSION

1.  The Rules of the auction comply with section 45 of the Consumer Protection Act, Act 68 of 2008
2. The Following provisions are brought to your attention: Section 45 subsection(1)(2) and(3) of the Act provides that:
   • In this section , “auction” includes a sale in execution of or pursuant to a court order to the extent that the order contemplates that the sale is to be conducted by an auction.
   • When goods are put up for sale by auction in lots, each lot is, unless there is evidence to the contrary regarded to the subject of a separate transaction.
   • A sale by auction is complete when the auctioneer announce its completion by the announcement is made, a bid may be retracted.
3. The auction will commence at the published time and will not be delayed to allow any specific person of more persons to take part in the auction.
4. The sale by auction is not subject to a reserve price.
5. A person who attends the auction to bid on behalf of another person (i.e. on behalf of a company or third party) must produce a written letter of authority (power of attorney and/or resolution from members) that expressly authorizes him or her to bid on behalf of that person or company. When the 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 authorising him of her to bid on behalf of the company.
6. The Sheriff of the Court for Cape Town North does have a trust bank account i.t.o. Sec 22(1) of the Sheriffs Act90 of 1986, into which all monies will be deposited, minus any commission payable to the Sheriff i.t.o. the signed conditions of sale that applies to the auction sale.
7. The Auctioneer/Sheriff will during the auction announce the reason for the auction.
8. Anyone that intends to bid at the auction must register his or her identity on the bidder’s record prior to the commencement of the auction and such registration must meet the requirements of FICA i.r.o. the establishment and verification of identity of the person and the person must sign the registration entry.
9. The Bidder record and the vendor roll will be made available for inspection at the office of the Sheriff for the jurisdiction of Cape Town North during normal business hours without any charge of a fee.  The bidder’s record will also be available for inspection at the auction. ( Regulation 26 and 28(4) ).
10. The conduct of the auction is subject to the control of the auctioneer/sheriff who has the sole right to regulate the bidding procedure.
11. The sale shall be by the rise of the bidders card and the asset shall be sold to the highest bidder subject to the Auction Rules and Conditions of Sale.
12. Every prospective bidder is required to listen to the Sheriff while he reads the Conditions of Sale and must not bid unless he or she understands the content thereof.
13. Every bid shall constitute an offer to purchase the asset for the amount bid, which the auctioneer/sheriff may accept or reject in his absolute discretion in accordance to the Conditions of Sale.  The auctioneer/sheriff are entitled, in their absolute discretion to withdraw the asset from the sale upon instructions from the Execution Creditor, but prior to the fall of the hammer.
14. In the event of any dispute between bidders, the decision of the auctioneer/sheriff shall be final and binding.
15. Any error by the auctioneer/sheriff shall be entitled to be corrected by him.
16. In the event of the sale requiring the consent of any statutory authority, preferent creditor or any court of law then this auction sale is subject to the granting of such consent.

SHERIFF/AUCTIONEER’S COMMISSION AND 10% REQUIRED DEPOSIT

Auctioneer fees:

• 6% on the first R100 000.00
• 3.5% on R100 001.00 to R400 000.00
• 1.5% on the balance of the proceeds
• Maximum R40 000.00
• Minimum R3 000.00

Deposit:

• The 10% deposit as stipulated in the conditions of sale is payable immediately upon conclusion of the sale by way of an electronic funds transfer (EFT).

I hereby certify that the auction rules to the best of my knowledge meet the requirements of the draft regulation 27.

Sheriff Cape Town North.                      Auctioneer:___________________