Moveable Property Auctions
Moveable sheriffs auctions are regulated by Rule 45 and 42 of the High Court and Magistrates Court Acts respectively.
The underlying principles and legal requirements remain the same except that the requirements for advertising are slightly different.
When auctioning movable items the sheriff does so in terms of the Acts and Rules that regulate the auctioning and is further subjected to the requirements of the Consumer Protection Act that requires additional functions and limitations that should be applied.
The requirements of the Rules should be strictly adhered to and sheriffs should scrutinise the correctness of advertisements and placing of Notices of sale. Sheriffs should be satisfied that all requirements of the Rules have been satisfied before conducting the auction, however sheriffs are now required to conduct their sales in terms of the new Consumer Protection Act.
Sheriffs Sales in Execution auctions have a few very important factors that are not present when it is compared with privately mandated auctions;
* Sheriffs auctions are forced sales and the defendant is never a willing participant.
* Private auctions are willing seller willing buyer contracts and are very seldom cancelled.
* The private auctioneering trade have budget structures that incorporate sufficient advertising and promotion financing while sheriffs are reliant on a strictly controlled and limited procedure that is governed by rules which are normally enforced by the execution creditor and its lawyer in such a way as to limit expenses as far as possible. The Sheriff does therefore not have any additional funding available for this marketing strategy and these auctions are therefore poorly advertised.
* The defendant has the right to sort out his problem at any stage and the auction may be cancelled at any stage prior to the advertised date and time.
* This makes these auctions unreliable and are mostly attended by bargain hunters who are prepared to deal with the limitations of sheriffs legal auctions
* Private auctions are not regulated by Court Rules and in contrast are well advertised and are seldom cancelled.