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Saturday, June 24, 2017
Financial and Consumer Affairs Authority

Requirement to be Licensed

The Auctioneers Act regulates the sale of most items or property sold by auction. Unless specifically exempted, an auction must be conducted by provincially licensed auction companies and auctioneers.

Exemptions from the Requirement to use a Licensed Auctioneer (Section 4)

If the only items being sold at auction are specifically excluded from the provisions of The Auctioneers Act by a provincial act or regulation, the auction does not have to be conducted by a licensed auctioneer and auction company.

Items that are specifically excluded are: 

a.  property sold at auction on behalf of a religious, charitable, non-profit or similar organization, provided that the person conducting the bidding is not paid;
b.  property sold under a court order, such as a judicial sale, or under a power of sale contained in a mortgage;
c.   property sold by a municipality;
d.   livestock sold at auctions that are not part of a farm dispersal sale, if the seller is licensed under The Livestock Dealers Regulations; and
e.   agricultural products sold under the sponsorship of the Extension Department of the College of Agriculture of The University of Saskatchewan or of the Probreeders’ Association.

Licenses for Auction Companies and Auctioneers (Section 7)

Auction licenses are issued by the Registrar pursuant to The Auctioneers Act. The Registrar may refuse to grant a license or may make a license subject to terms, conditions or restrictions. The Registrar may also suspend or cancel a license.

Unless previously terminated or cancelled every licence expires five years after the date on which it was issued [section 16].

The Auction Sales Company and Auctioneer Licensing Kit

Bond (Section 17)

Auction companies are required to file bonds as part of their application for a license. The bond must be in the name of the legal entity as well as the trading name, if any. The amount of the bond is prescribed by the Registrar and is generally not less than $25,000.

Instead of an individual company bond, members of the Saskatchewan Auctioneers Association who are in good standing may request (of the Registrar of Auctions) to be covered by that Association’s global bond.

Sample Penal Bond Wording

Sales Invoices and Advertisements (section 22)

Every auction sales company and auctioneer shall cause to be printed or written on every auction sales bill, notice of sale, poster or advertisement relating to an auction his name and the words “Provincial Licence Number” followed by the number of the licence.

Auction Recordkeeping (section 18)

The Act requires auction companies to keep proper records and accounts showing money received and money paid out for each item.

Sale at Auctions by Business Operators, Retailers or Manufacturers and the Application of The Consumer Protection Act

Household, personal or family items (including a vehicle for personal, non-business purposes) that are sold at an auction on behalf of a business operator, retailer or a manufacturer are subject to the provisions of The Consumer Protection and Business Practices Act including the unfair practices prohibitions and minimum statutory warranty provisions.

Where warranties apply, the consumer may have a claim against the seller for defective goods unless the item was sold “as is” and the defects were observable or specifically noted (note the special requirements for motor vehicles consigned to an auction by a licensed Vehicle Dealer).

Vehicles Consigned for Auction by a Licensed Dealer

All vehicle sales consigned to an auction by a licensed vehicle dealer are also subject to the provisions in the Vehicle Dealer Regulations.

If a motor vehicle is consigned by a licensed vehicle dealer, the purchaser is entitled to be informed of the name of the dealer consigning the goods. In addition, such vehicles must be “roadworthy” or fit to drive pursuant to The Traffic Safety Act, unless the vehicle was specifically identified to the buyer in the written contract for sale that it was not “roadworthy” or fit to drive.

Indicating either verbally or in writing that the dealer’s vehicle is sold “as is” is not sufficient.

If required, consumers who purchase a personal-use vehicle that was consigned by a vehicle dealer may also pursue a claim for breaches of the warranty provisions under the statutory and express warranties provided under The Consumer Protection and Business Practices Act.

General Auction Rules under The Sale of Goods Act (section 57)

Section 57 of The Sale of Goods Act reads:

57 In the case of a sale by auction:

1   Where goods are put up for sale by auction in lots each lot is … deemed to be the subject of a separate contract of sale;
2   A sale by auction is complete when the auctioneer announces its completion by the fall of the hammer or in other customary manner. Until such announcement is made a bidder may retract his bid;
3   Where a sale by auction is not notified to be subject to a right to bid on behalf of the seller it shall not be lawful for the seller to bid himself or to employ any person to bid at the sale or for the auctioneer knowingly to take a bid from the seller or any such person. A sale contravening this rule may be treated as fraudulent by the buyer;
4   A sale by auction may be notified to be subject to a reserve or upset price and the right to bid may also be reserved expressly by or on behalf of the seller. Where a right to bid is expressly reserved but not otherwise the seller or any one person on his behalf may bid at the auction.



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