AUCTION LAW OF LAGOS STATE
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AUCTION LAW
ARRANAGEMENT OF SECTIONS
1. Business of Auctioneer
2. Auctioneer to hold licence
3. Licences, Forms and Fees
4. Licence for Individuals, Firm or Corporations
5. Application for and grant of licence
6. Refusal of Licence
7. Enforcement Unit
8. Security to be given Auctioneer
9. Suspension or Revocation of Licence
10. Register of Licences
11. Auctioneer to accept sale of all property offered by owners
12. Auctioneer’s licence not to authorise sale of intoxicating liquor
13. Notice of sale of land
14. Notice, catalogue and report of sale to be furnished to the Commissioner
15. Auctioneer’s name and address to be published at sale
16. Sales subject to a reserve, and vendor’s right to bid
17. Where without reserve
18. Where subject to reserved price
19. Where right to bid reserved to seller
20. Consequences of seller bidding in the preceding cases
21. Penalty on auctioneer receiving unlawful bidding
22. Auctioneer may recover purchase-money
23. Employment to sell by auction does not authorise private sale
24. Rates of commission chargeable on auction sales
25. Order of suspension or revocation of licence
26. Savings as to sales in execution of decrees
27. Auctioneer prohibited from preparing conveyances
28. Auctioneer’s lien
29. Vendor to indemnify auctioneer
30. Breach of warranty of authority and fraud
31. Power to make regulations
32. Repeal and Re-enactment
33. Interpretation
34. Interpretation
35. Citation
FIRST SCHEDULE – FORMS OF LICENCES
SECOND SCHEDULE – LICENCE FEES
CHAPTER A12, LAWS OF LAGOS STATE, NIGERIA
AUCTION LAW
A law to provide for the licensing of auctioneers, to regulate sales by auction in Lagos and for connected purposes.
[F. & L. 1958, CAP. 187. L.N. 257 OF 1959. L.N. 112 OF 1964]
ARRANGEMENT OF SECTIONS
1. Business of Auctioneer
Every person who sells any goods or land as at a 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 of sale by competition shall be deemed to carry on the business of an auctioneer.
2. Auctioneer to hold licence
(1) A person shall not carry on the business of auctioneering without a licence granted under this Licence authorizing him to carry on such business.
(2) A person who contravenes the provision commits an offence and is liable on conviction to a fine of One Hundred and Fifty Thousand Naira (N150,000)).
(3) This Section shall not apply to any of the following –
(a) sales conducted by a receiver, trustee, guardian, administrator or executor or any similarly appointed person under order of any court;
(b) sales conducted by and on behalf of any charitable or religious organization;
(c) sales conducted by and on behalf of a civic club, not exceeding three sales per year;
(d) sales conducted by a trustee pursuant to a power of a sale contained in a trust on a real property.
(4) A licence is issued for a period of one year from the date of issuance.
3. Licences, Forms and Fees
(1) The Commissioner may issue an auctioneer’s licence for the purpose of this Law.
(2) Licences granted under this Law shall extend to all parts of the State.
(3) Before the issuance of a licence, a licence fee as specified in the Second Schedule to this Law shall be paid or such other fees as may be prescribed.
[First schedule, Form A. Second Schedule]
4. Licence for Individuals, Firm or Corporations
(1) Licences may, subject to the provisions of this Law, be granted by the Commissioner to an individual, firm or corporation but shall not be granted to a pawnbroker, or to any servant, apprentice or agent of any such pawnbroker.
(2) An application for auctioneer’s licence by a firm or corporation shall state –
(a) the name and principal place of business of the firm or corporation;
(b) the name and particulars of proprietors of the firm and the directors of the corporation; and
(c) include the certificate of incorporation of the corporation.
(3) The provisions of the law disqualifying an individual applicant from being granted an auctioneer’s licence apply to a proprietor of a firm and the directors of a corporation applying for grant of auctioneer’s licence.
[Cap. P2.]
5. Application for and grant of licence
(1) Application for a licence shall be made by filling and submitting the appropriate form to the Commissioner.
(2) Before granting any licence, the Commissioner shall make such inquiries as he considers necessary for ascertaining that the applicant is a fit and proper person to be licensed.
(3) Any person to whom a licence has been refused may represent his case to the Commissioner who may direct that the licence be withheld or that further examination and inquiry be held.
6. Refusal of Licence
A licence shall not be issued in any of the following circumstances –
(a) where the applicant has within the preceding five (5) years been convicted of a felony or any act involving fraud or dishonesty;
(b) where the applicant has within the preceding five (5) years committed any act that constitutes a ground for licence suspension or revocation;
(c) where the applicant is not a holder of a first degree from a recognized university, a Higher National Diploma, Ordinary National Diploma or a member of a professional body in a related field.
7. Enforcement Unit
(1) A unit under the office of the Commissioner is established for the purpose of administering and enforcing the provisions of this Law.
(2) The unit may where necessary, subject to the approval of the Governor, establish additional offices in any part of the State.
8. Security to be given Auctioneer
(1) The Commissioner may require an applicant for licence to give security by bond or by a professional indemnity insurance in the prescribed form for such sum as may be prescribed for such licence, with one or more sureties approved by the Commissioner, to answer for the faithful discharge of his office:
Provided that the State Commisisoner may accept, in lieu of the Security, a deposit in the Treasury of the sum prescribed for the bond or professional indemnity insurance in the prescribed form.
(2) If it appears to the Commisisoner that the security of any auctioneer has become insufficient, he shall capp upon the auctioneer to give sufficient security, and if he fails to do so, the Commissioner may, on the report of the licensing authority, suspend the licence of the auctioneer until sufficient security has been given.
9. Suspension or Revocation of Licence
The Commissioner may after necessary inquiry, suspend or revoke the licence of an auctioneer by reason of –
(i) any violation of the provisions of the law;
(ii) a continued and flagrant course of misrepresentation or making false promises, either by the licensee, an employee of the licensee, or by someone acting on behalf and with the licensee’s consent.
10. Register of Licences
The Commissioner shall keep a register of auctioneers licensed by him.
11. Auctioneer to accept sale of all property offered by owners
(1) Every auctioneer shall, on the requisition of the owner accept the sale of all property which may be offered to him for sale, and shall sell the same within such time as the owner may require, or as soon as possible, having to the 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.
(2) Nothing shall restrict any auctioneer from selling at the same sale the property of more than one owner, provided that the goods are lotted consecutively and in such manner that the goods are not mixed up.
12. Auctioneer’s licence not to authorise sale of intoxicating liquor
No auctioneer’s licence shall authorise any person to sell intoxicating liquor, for which a licence is required by Law, except upon premises in respect of which the owner of such liquor have the proper licence.
13. Notice of sale of land
(1) No sale by auction of any land shall take place until after at least seven (7) days public notice has been given to the public, and also at the place of intended sale.
The notice shall be made not only by printed or written document, but also by radio jungle or such other method intelligible to educated persons as may be prescribed, or as may be directed by the Commissioner and shall state the name and place of residence of the seller.
[L.N. 112 of 1964]
(2) Notice of the sale shall also be given in the manner prescribed by the Lands Bureau six (6) days before the sale, and such notice shall be given by a sheriff’s officer and by the auctioneer. Non-compliance with the provision of this Section attracts a fine of Eighty Thousand Naira (N80,000).
14. Notice, catalogue and report of sale to be furnished to the Commissioner
(1) Notice in writing with a catalogue of the goods or lands to be sold shall be delivered by the auctioneer to the Commissioner seven days (7) before a sale auction, specifying the place at which each lot shall have been sold within seven (7) working days after sale.
(2) Non-compliance with the provisions of subsection (1) of this Section attracts a fine of Eighty Thousand Naira (N80,000)
15. Auctioneer’s name and address to be published at sale
Every auctioneer shall, before the commencement of an auction, place in a conspicuous part of the room or place where the auction is held a ticket or board with his name and address boldly written. A contravention of this provision attracts a fine of Twenty-Five Thousand Naira (N25,000.00).
16. Sales subject to a reserve, and vendor’s right to bid
It shall be stated in the particulars or conditions of sale by auction of any land or goods whether such sale will be without reserve, or subject to a reserved price, or whether a right to bid is reserved.
17. Where without reserve
If it is stated that the sale will be without reserve or to that effect, then it shall not be lawful for the seller or any person on his behalf or employed by him to bid at such sale, or for the auctioneer to take knowingly any such bidding.
18. Where subject to reserved price
If it is stated that the sale will be subject to a reserved price as regards any one 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.
19. Where right to bid reserved to seller
If it is stated that the sale will be subject to a right for the seller to bid, it shall be lawful for the seller, or for any one person on his behalf, but not more than one, to bid at such auction in such manner as he shall think proper.
20. 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.
21. Penalty on auctioneer receiving unlawful bidding
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 Law; 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 One Hundred and Fifty Thousand Naira (N150,000.00).
22. Auctioneer may recover purchase-money
(1) The auctioneer conducting a sale by auction shall (unless it be agreed otherwise between him and the seller) be entitled to sue for, recover and discharge all sums due in respect of such sale.
(2) The auctioneer (unless it be agreed otherwise between him and the seller) be liable for due payment to the seller of the net proceeds of the sale within ten (10) days from the time of sale of such property.
23. 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.
24. Rates of commission chargeable on auction sales
Notwithstanding the provisions of any other enactment or law, the remuneration of any auctioneer for selling any property by auction will be computed to the value of the property offered for sale.
25. 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) The court making any order of suspension or revocation of a licence shall immediately send a copy of the order to the Commissioner.
26. Savings as to sales in execution of decrees
Nothing in this Law may be construed to alter or derogate from the provisions of any enactment or rules of court, relating to sale in execution of decrees.
27. Auctioneer prohibited from preparing conveyances
An auctioneer or person in his employment or in partnership with him, who drafts, prepares, or procures the execution of any conveyance of land, shall be liable on conviction to a fine of One Hundred and Fifty Thousand Naira (N150,00.00).
28. Auctioneer’s lien
An auctioneer has a lien by the custom of the business on goods entrusted to that auctioneer in the ordinary course of the employment of that auctioneer and as the natural consequence of the contract of agency.
29. Vendor to indemnify auctioneer
A vendor shall indemnify the auctioneer for the expenses incurred or damages sustained by the auctioneer in the ordinary course of the employment of that auctioneer and as the natural consequence of the contract of agency.
30. Breach of warranty of authority and fraud
(1) An auctioneer who sells property without or in excess of the authority conferred on that auctioneer is liable to the purchaser for breach of warranty of authority.
(2) The purchaser is entitled to sue the auctioneer personally for a fraud to which the auctioneer is privy.
31. Power to make regulations
The Commissioner may make regulations in accordance with the Regulations Approval Law for the following purposes –
(a) altering the scale of commission chargeable by an auctioneer specified in Section 27 of this Law;
(b) altering the sums specified in the Second Schedule either generally or in relation to licences issued in any area specified in such regulations;
(c) prescribing the sums for which security shall be required in respect of the several licences which may be issued under this Law.
(d) specifying the rules to regulate online auction sales; and
(e) generally for the further or better carrying into effect the purposes of this Law.
32. Repeal and Re-enactment
The Sales by Auction Law Cap. S1 Laws of Lagos State of Nigeria 2003 is hereby repealed.
33. Interpretation
In this Law, unless the context otherwise requires –
“auctioneer” means a licensed auctioneer as in sections 3 and 22 and include any person conducting a sale by auction excluding a pawnbroker as defined under the Pawnbroker’s Law.
“goods” includes animals and any interest in goods;
“lands” includes any interest;
“Commissioner” means any Commissioner or any person for the time being charged with responsibility with respect to trade and commerce in Lagos.
34. Citation
This Law may be cited as the Auction Law and shall come into force on the ………. day of ……………………. 2020.
FIRST SCHEDULE [Section 4]
FORMS OF LICENCES
FORM A
Licence is hereby granted to (name and residence of person licensed] to carry on the business of an auctioneer [in Lagos State or in (specify part of the State to which licence is to extend) until ……………………………………………..
Day of ……………………………….. 20 ……… subject to the Auction Law.
Dated this ………………..day of …………………..20…………..
Fee
paid N: …………….k
SECOND SCHEDULE – [Section 4]
LICENCE FEES
Every
licence as in Form ! N
For one year ……………………………………….. 50,000
Signature of Commissioner
LAWS OF LAGOS STATE
LAWS OF THE FEDERAL REPUBLIC OF NIGERIA
