Financial and Consumer Affairs Authority of Saskatchewan

FCAA is Saskatchewan’s financial and consumer marketplace regulator.

Auctioneers

  • Auctioneers

    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.

    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].

    For information select from the options below.

     

     

    Exemptions

    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: 

    • 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;
    • property sold under a court order, such as a judicial sale, or under a power of sale contained in a mortgage;
    • property sold by a municipality; and
    • 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.

     

    Bonds

    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.

     

    Requirements

    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 and Business Practices 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)

    A partial reading of Section 57 of The Sale of Goods Act is as follow:

    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 another 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.

     

    Enforcement

    License Suspensions [section 13]

    The registrar may suspend or cancel a licence upon any grounds on which he might have refused to grant the licence or where he is satisfied that the licensee:

    (a) has violated any provision of this Act or has failed to comply with any of the terms, conditions or restrictions to which his licence is subject;
    (b) has made a material mis-statement in the application for his licence or in any of the information or material submitted by him to the registrar;
    (c) is guilty of any misrepresentation, fraud or dishonesty; or
    (d) has demonstrated his incompetency, unfitness or untrustworthiness to carry on the business in respect of which his licence was granted.

    • Where the licence of an auction sales company is suspended or cancelled, the licence of the authorized official of that auction sales company shall be automatically terminated.
    • Where a licence is suspended or cancelled under subsection (1), the suspension or cancellation is effective on and from the day on which the notice of suspension or cancellation is served on the licensee.
    • Where a bond filed by a person under this Act is terminated, the licence of that person is automatically suspended and shall remain suspended until the person files with the registrar a new bond in the amount and form required.
       

    Request for a Hearing [section 14]

    An applicant for a licence or a licensee who is dissatisfied with a decision of the registrar under this Act may, within thirty days from the date of the decision, apply in writing to the registrar for a hearing.

    The applicant or licensee may be represented by counsel in any hearing before
    the registrar.

    A person who is dissatisfied with a hearing decision of the registrar under section 14 or under subsection (3) of section 17 may, within thirty days from the date of the decision, appeal to a judge of the Court of Queen’s Bench. There shall be no further appeal.
     

    Prosecution Penalties [section 24]

    A person who is guilty of an offence against The Auctioneers Act is liable on summary conviction to a fine of not more than $1,000 and in default of payment to imprisonment for a term not exceeding six months or, in the case of a corporation, to a fine of not more than $5,000.

    If a prosecution occurs, there are penalties for companies or individuals who are found guilty of failing to follow the Act.
     

    The Summary Offences Procedures Act, 1990 (SOPA)
    SOPA Regulation 5 provide for tickets which carry a fine to be issued for certain breaches of The Auctioneers Act:

    5 Offences pursuant to the following Acts, regulations and bylaws, other than the offences set out in Part 3 of the Appendix, are designated as offences for which proceedings may be commenced pursuant to Part III of the Act by the issuance of a summons ticket:
    … (z) The Auctioneers Act;

    The Auctioneers Act breaches subject to SOPA are set out in Table 37 of the SOPA Regulations:

    1 Carrying on the business of an auction sales company without licence
    $250 for individuals;
    $500 for corporations

    2 Carrying on the business of an auctioneer without licence
    $250

    3 Holding oneself to be an auction sales company without having a licence
    $250 for individuals
    $500 for corporations

    4 Engaging, employing, appointing, authorizing or permitting any person, without a licence, to do any of the things with respect to which a licence is required
    $250 for individuals
    $500 for corporations

    5 Not complying with the terms, conditions and restrictions to which the licence is subject 11(3)
    $250 for individuals;
    $500 for corporations

    6 Failing to provide information as requested 12
    $250 for individuals;
    $500 for corporations

    7 Putting an advertisement in print without the name of the auction company and the provincial licence number
    $250 for individuals;
    $500 for corporations

    Consumer Protection Division

    Suite 500, 1919 Saskatchewan Drive

    Regina, Saskatchewan S4P 4H2

    Tel: (306)787-5550

    Toll free: (877)880-5550

    Fax: (306)787-9779

    Email: consumerprotection@gov.sk.ca

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