Auctions of agricultural goods (including livestock)
You must be a licenced chattel auctioneer to conduct an auction of agricultural goods. This includes livestock.
Livestock may be:
- cattle
- horses
- sheep
- swine.
You must follow many of the normal rules for chattel auctions, though some of the rules are different for livestock auctions.
Keep your books
You must store the following books at your registered office.
Auction store book
You must keep an auction store book for all non-livestock auctions. This will record relevant information about both the goods and the auction.
When you acquire any goods, you must record:
- a description of the goods
- details of any identifying marks or numbers (such as a serial number)
- the reserve price
- the seller’s name and address
- the date that you received the goods.
As soon as possible after the auction, you must record in your sales book:
- the date of the auction
- a description of the goods
- the sale price
- the name and address of the buyer
- a cross-reference to the entry in the store book noting when you acquired the goods.
Livestock auction book
You must keep a separate book for livestock auctions.
When you acquire livestock, you must record:
- what type of livestock
- how many animals in total
- the seller’s name and address
- the date that you took custody of the animals.
After the auction takes place, you must complete the entry. Do this by recording:
- the date of the auction
- the sale price
- the name and address of the buyer.
Identify yourself
As a chattel auctioneer, you must display your name at the site of an auction.
It must:
- use clear and legible text
- be in a conspicuous position in the premises.
A conspicuous position might be:
- by the entrance to the premises
- at an obvious location near the auction pen.
Some limited exemptions apply—for instance, if:
- you are moving around a large, open outdoor area
- inclement weather would make it impossible to use the sign.
For example, this might be:
- an auction of heavy machinery on a large, open field
- an outdoor auction in very strong wind.
In these cases, you must announce your name at the start of an auction.
Act as a livestock agent
The usual appointment rules don’t apply to livestock auctions. When the sellers appoints you to sell livestock at auction, it does not need to be in writing. If the appointment is in writing, it must be in the prescribed form.
You have two types of arrangements which you and the seller can agree to.
The first is a 'del credere arrangement'. Under this type of arrangement, you must:
- guarantee to pay the net proceeds to the seller
- still pay, even if the buyer doesn’t pay you.
The second type of arrangement requires that you only pay the seller from monies you have received from the buyer. Once you receive and bank these monies, the speed at which you pay the net proceeds to the seller depends on whether they are cash or non-cash deposits (eg, cheques, money orders, electronic transfers).
With cash deposits, you can pay the seller as soon as you have deposited them into your trust account. With non-cash deposits, you need to wait until they have been cleared by your bank. Some cheques (including bank cheques) can take up to 5 days to clear.
In those instances where you will be receiving non-cash deposits, you must obtain written authority from your client stating you will pay the client for monies actually received, less your commission and authorised expenses.
At the start of a livestock auction, you must verbally identify the seller by name. In online auctions, you must display the name of the client.
Disclosure rules
You must disclose your interest to your client if you intend to purchase livestock and follow the disclosure rules for beneficial interest including the use of a prescribed form. However, you can avoid this formality if you obtain your client’s written acknowledgement that:
- they are aware you are interested in obtaining a beneficial interest in the livestock
and - they consent to such interest.
Auction rural property
You will need to have an auctioneer (real property) licence for auctions of:
- farm buildings
- planted crops
- rural land and fields.