Auctioneers Law

1. Citation and application This Law may be cited as the Auctioneers Law and shall apply to all such parts of the State. [WRNLN 235 of 1957.]

2. Interpretation. In this Law- "Auctioneer" means a licensed auctioneer and includes the holder of an agent?s licence and in Section 3 and 22 includes any person conducting a sale by auction; "Councils" mean Local Government Councils for the time being created for the State; "Goods" includes animals and any interest in goods; "Lands" includes any interest in land.

3. Business of auctioneer. Every person who sells any goods or lands at any sale where any person becomes or may become the purchaser of the same by competition and being the highest bidder, either by being the sole bidder, or increasing upon the biddings made by others, or decreasing on sums named by the auctioneer or other person at such sale, or by any other mode or sale by competition shall be deemed to carry on the business of any auctioneer.

4. Auctioneer to hold licence. (1) Any person who shall carry on the business of any auctioneer in any part of the state to which this law applies without a licence granted under this law authorising him to carry on such business or in any part or area to which such licence does not extend shall be liable to a fine of ten thousand naira. (2) This section shall not apply to any person in the service of the Government selling goods or lands being the property of the Government or which the Government or any department or officer of the Government is by any written law authorised to sell or to a sale conducted by an officer of a court acting under the orders of the court.

5. Appointment of licensing authority. The Governor may by notice in the State Gazette appoint any person to be the licensing authority for the purposes of this Law for any area specified in such notice.

6. Licenses: areas to which they may extend forms and fees. Licences granted under this Law shall extend:- (a) to all parts of the State of which this Law applies; or (b) to any such part or group of such parts in respect of which a separate fee for the licence is specified in the Second Schedule or is prescribed; or (c) in the case of an agent’s licence, to the area of a licensing authority. and shall be in one of the forms set forth in the First Schedule. There shall be paid therefore prior to the issue of licence the fee specified for such licence in the Second Schedule or such other fee as may be prescribed. [Forms A - D, First Schedule, Second Schedule.]

7. To whom licence is to be granted. Cap. 139. Licences may, subject to the provisions of this Law, be granted by the licensing authority to an individual but shall not be granted to a firm or corporation, or to a pawnbroker as defined by the Pawnbrokers Law, or to any servant, apprentice or agent of any such pawnbroker.

8. Application for and grant of licence. (1) Application for a licence shall be made in writing to the licensing authority for the area in which the principal office or place of business of the applicant is situate. (2) Before granting any licence, the licensing authority shall make such inquiries as he considers requisite for ascertaining that the applicant is a fit and proper person to be licensed, and may refuse any licence without assigning any reason to the applicant. (3) Any person to whom a licence has been refused may represent his case to the Governor, who may direct that the licence be withheld or that further examination and inquiry be held.

9. Security to be given by auctioneer. (1) If the licensing authority shall decide, or be directed by the Governor, to grant a licence he shall require the applicant to give security by bond in the prescribed form for such sum as may be prescribed for such licence, with one or more sureties approved by the licensing authority, to answer for the faithful discharge of his office: Provided that the licensing authority may accept, in lieu of the security aforesaid, security by deposit in the Treasury of the sum prescribed for the bond. (2) If it shall appear to the licensing authority that the security of any auctioneer has become insufficient, he shall call upon the auctioneer to give sufficient security, and if the auctioneer shall fail to do so, the Governor may, on the report of the licensing authority, suspend the licence of the auctioneer until sufficient security has been given.

10. Governor may suspend or revoke licences on certain conditions. The Governor may, on the recommendation of a licensing authority and after such inquiry as he may consider necessary, if he considers it advisable in the public interest to do so, suspend or revoke the licence of any auctioneer: Provided that upon any such suspension or revocation there shall be refunded to the auctioneer by the licensing authority which issued the licence so suspended or revoked a sum equivalent to one-twelfth of the annual licence fee for each completed month for which the licence is suspended or for the remainder of the period for which the licence was issued, as the case may be.

11. Duration of licenses. (1) A licence under this Law other than an occasional licence shall have effect from the date of the granting thereof till the close of the 30th June, or the 31st December, in the case of half-yearly or yearly licences respectively, of the year in which such licence may have been granted. (2) Whenever an order suspending a licence is made, the licence shall cease to be of any effect during the term of suspension; and whenever the licence is revoked the licence shall cease to have any effect whatever.

12. Occasional licences. An occasional licence permitting the person named therein to carry on the business of an auctioneer for one day only may be granted by a licensing authority and the provisions of subsection (1) of section 9 shall apply in respect to such a licence: Provided that an occasional licence shall not be granted in an area in which a licensed auctioneer is carrying on business.

13. Licences to agents of auctioneers (1) Any person who may have a licence in force as in Form B of the First Schedule may apply for and obtain from the licensing authority for any area one or more licences (hereinafter called an agent?s licence) and every such licence shall authorise the persons named therein (such person being in the permanent employment of the person applying for such licence under a contract of not less than three months? duration) to sell by auction on behalf ofsuch employer in the area of the licensing authority who has granted such licence: [Form B. First Schedule.] Provided that- (a) The total number of persons who may be authorised by agents licenses to sell by auction on behalf of any such employer shall not exceed three; and (b) An agent’s licence shall not be issued in respect of an area to which the employer’s licence does not extend. (2) Such agent shall not be required to find security, but the employer shall be required to give such additional security as may be prescribed, and the provisions of section 9 shall apply in respect of an agent’s licence. The employer shall be responsible for the agent’s compliance with all of the provisions of this Law, and for the payment of any pecuniary penalties which he may incur for contraventions thereof.

14. Liability of employer. An agent’s licence may be suspended or revoked for any offence, committed by him, for which any other licence under this Law may be suspended or revoked, and in case the licence of the employer of such agent should terminate, or be suspended or revoked, the licence of any agent employed by him shall ipso facto terminate, or be suspended during the suspension of the employer’s licence, or be revoked, as the case may be.

15. Agent ceasing to be in employer’s service disqualified (1) If the holder of an agent’s licence shall cease to be in the employment of the auctioneer who applied for the same, he shall forthwith cease to be qualified to act as an auctioneer under such licence. (2) Transfer of licence - The licensing authority may in such last-mentioned case, on the request of the person who applied for such licence, transfer the same for the unexpired period thereof to some other person in the employment of such applicant under contract as aforesaid, but no agent’s licence shall be transferred more than once in any period of six months.

16. Register of licences. Each licensing authority shall keep a register of auctioneers licensed by him and of persons holding agents licences for the area of the licensing authority.

17. Auctioneers to accept the sale of all property offered by owners. (1) Every auctioneer shall on the requisition of the owner thereof, accept the sale of all property which may be offered to him for sale in the township or place in which he carries on his ordinary business as an auctioneer, and shall sell the same within such time as the owner may require, or as soon thereafter as possible, having regard to the sale of other property with which he has been entrusted: Provided that except in the case of perishable goods he shall not be bound to sell such property sooner than seven days after he shall have accepted the sale thereof. (2) Nothing herein shall be held to restrict any auctioneer from selling at the same sale the property of more than one owner, so long as the goods are allotted consecutively and in such manner that no owner’s goods may, become mixed with the goods of any other owner.

18. Auctioneer’s licence not to authorise sale of intoxicating liquor. No auctioneer’s licence shall authorise any person to sell intoxicating liquor, for the sale of which a licence is required by law, except upon premises in respect of which the owner of such liquor shall have in force at the time of the sale thereof, the proper licence for the sale of such liquor.

19. Notice of sale of land. (1) No sale by auction of any land shall take place until after at least seven days’ public notice8 thereof made at the principal town of the Local Government Area in which the land is situated, and also at the place of the intended sale. The notice shall be made not only by printed or written documents, but also by beat of drum or such other method intelligible to uneducated persons as may be prescribed, or, if not prescribed, as the Chairman of the Local Government Council where such sale is to take place may direct, and shall state the name and place of residence of the seller. (2) Any person contravening any of the provisions of subsection (1) of this section shall be liable to a fine of ten thousand naira.

20. Notice, catalogue and report of sale to be furnished to Chairman. (1) Two days before any sale by auction shall take place, or within such shorter time as the Chairman of the Local Government Council where such sale is to take place may, in special circumstances, authorise in his discretion, notice thereof in writing together with a catalogue of the goods or lands to be sold shall be delivered by the auctioneer to such Chairman, specifying the place and time at which such sale begins, and within sixty hours after such sale shall have terminated a complete account of the sale verified by oath or affirmation of the auctioneer shall be delivered to said secretary to the local government council specifying the price at which each lot shall have been sold. (2) Any person contravening any of the provisions of subsection (1) of this section shall be liable to a fine of ten thousand naira.

21. Auctioneer’s name and address to be published at sale (1) Every auctioneer, before beginning any auction, shall affix or suspend and during the whole time of such auction keep affixed or suspended in some conspicuous part of the room or place where the auction is held a ticket or board containing his true and full name and residence painted, printed, or written in large letters, publicly visible and legible. [8 & 9 Vict. C. 15, s.7] (2) Any person contravening any of the provisions of subsection (1) of this section shall be liable to a fine of one thousand naira.

22. Sales subject to a reserve and vendors right to bid. (1) It shall be stated in the particulars or conditions of sale by auction of any land or goods whether such sale will be without reserve10, or subject to a reserved price, or whether a right to bid is reserved. [(30 and 31) Viet. c. 48, ss. 5 and 6, 56 and 57.] (2) Where without reserve - If it is stated that the sale will be without reserve or to that effect, then lawful for the seller or any person in his behalf or employed by him to bid at such sale, or for the auctioneer to take knowingly any such bidding. (3) Where subject to reserved price - If it is stated that the sale will be subject to a reserved price as regards anyone or more lots, it shall be lawful for the seller or any person employed by him to give one bid for each such lot and no more, which bid shall be openly declared at the auction upon the lot being put up for sale, before any other bidding for such lot is received. (4) Where right to bid reserved to seller - If it is stated that the sale will be subject to a right for the sel1er to bid, it shall be lawful for the seller, or for anyone on his behalf, but not more than one, to bid at such auction in such manner as he shall think proper. (5) Consequences of seller bidding in the preceding cases - If the seller or any person employed by him or on his behalf shall bid at any sale contrary to any of the provisions of this section, any purchaser may refuse to fulfill his purchase, but the highest bona fide bidder shall be entitled, if he shall so elect, to have the land or goods at the price offered by him. (6) Penalty on auctioneer receiving unlawful biding - No auctioneer nor any person in partnership with him or in his employment or on his behalf shall bid at any sale conducted by him and any auctioneer who- ? (a) knowingly receives any bidding contrary to the provisions of this section; or (b) bids himself or receives any bid from any partner of his or any person in his employment or on his behalf, shall be liable on conviction to a fine of ten thousand naira.

23. Auctioneer may recover purchase money. (1) The auctioneer conducting a sale by auction shall (unless it be agreed otherwise between him and the sel1er) be entitled to sue for, recover and discharge all sums due in respect of such sale. (2) Payment - The auctioneer shall (unless it be agreed otherwise between him and the seller) be liable for the due payment to the seller of the net proceeds of the sale within ten days from the time of sale of such property.

24. Employment to sell by auction does not authorise private sale. The employment of an auctioneer to sell any property by public auction does not authorise him, in case the public auction proves abortive, to sell the property by private contract.

25. Remuneration of auctioneer on sale. (1) The remuneration of any auctioneer for selling any property by auction shall in no case exceed seven percent on the gross amount of such sale. (2) Where property bought in - If any property exposed for sale is bought in by or on behalf of the owner, the remuneration of the auctioneer shall not exceed three percent on the amount at which the same has been so bought in, if the said amount be under one hundred thousand naira, or two percent, if above that sum. (3) Agreements for higher rate void - No agreement to pay or allow any higher rates than in this section mentioned shall be binding, and any auctioneer who shall receive or retain out of the proceeds of any sale any higher rates shal1 be liable to have his licence suspended or revoked by the Governor.

26. Penalties incurred by agents. (1) If the employer of any person holding an agent’s licence is ordered to pay any penalty incurred by such person and makes default in doing so, the penalty may be levied by distress, seizure and sale of movable and immovable property of such employer. (2) Employer’s remedy - Any penalty paid by or recovered from the employer on behalf of such person so employed by him, together with al1 costs incurred by such employer in respect of such penalty, shal1 be a debt due to him from the person so employed by him.

27. Order of suspension or revocation of licence. (1) The court imposing any pecuniary penalty under this law upon any auctioneer may, if it shall appear that the offence is of such nature as to require the licence of such auctioneer to be suspended or revoked, make an order to that effect, and the licence shall be suspended or revoked accordingly. (2) Report of order - The court making any order of suspension or revocation of a licence shall forthwith intimate the same to the licensing authority.

28. Savings as to sales in execution. Nothing in this law shall be construed to alter or derogate from the provisions of any law or rules of court, relating to sales in execution of decrees.

29. Auctioneer prohibited from preparing conveyances. Any auctioneer or person in his employment or in partnership with him who shall draft, prepare or procure the execution of any conveyance of land shall be liable to a fine of twenty thousand naira.

30. Power to make regulations. The Executive Council may make regulations for the following purposes - (a) altering the sums specified in the Second Schedule either generally or in relation to licences issued in any area specified in such regulation; (b) prescribing the sums for which security shall be required in respect of the several licences which may be issued under this Law; and (c) generally for the further or better carrying into effect the purposes of this law. Schedule 1 AUCTIONEERS LAW. [Sections 6 &13.] FORMS OF LICENCES FORM A Without Privilege of Agents Licence is hereby granted to [name residence of person licenced] to carry on the business of an auctioneer [in the Delta State of Nigeria or in (specify part of the State to which licence is to extend)] until the ... day of .... 20... subject to the Auctioneers Law. Dated this..... day of..... 20..... Fee paid: N k ....... Signature of Licensing Authority. FORM B WITHOUT PRIVILEGE OF AGENTS Licence is hereby granted to [name residence of person licensed] to carry on the business of an auctioneer (with privilege of agents) in the Delta State of Nigeria or in (specify part of the State to which licences to extend) until the ..... day of .... 20..... subject to the Auctioneers Law. Dated this.... day of.... 20.... Fee paid: N k ...... Signature of Licensing Authority. FORM C [Cap. A14] WITHOUT PRIVILEGE OF AGENTS Licence is hereby granted to [name residence of person licenced] to carry on the business of an auctioneer in the [name of Local Government Area] as agents of [name and residence of the employer] until the ..... day of ..... 20.... in case such agency shall so long continue subject to the Auctioneers Law. Dated this..... day of..... 20..... Fee paid: N k ........ Signature of Licensing Authority. FORM D OCCASIONAL LICENCE Licence is hereby granted to [name and residence of person licensed] to carry on the business of an auctioneer for one day only subject to the Auctioneers Law. DATED this..... day of..... 20.... Fee paid: N k ....... Signature of Licensing Authority Schedule 2 AUCTIONEERS LAW. (SECTION 6) FEES OF LICENCES LICENCE EXTENDED TO ALL PARTS OF THE STATE TO WHICH THE LAW APPLIES Every licence as in Form A NK For one year 4,800. 00 For half a year 4,800. 00 Every licence as in Form B For one year 5,300.00 2,120. 00 For half of year Agents' Licences Every licence as in Form C For one year 400.00 240.00 For half of year Occasional licence Every licence as in Form D 100.00