Auction Consignor Agreement
CONSIGNOR AGREEMENT BASIS STRUCTURE ASDA QUALIFIED PUBLIC AUCTIONEERS
Consignor Agreements are defined as necessary documents prepared by an auction house for defining the terms of sale of other’s material by auction. These agreements are considered essential for auction houses acceptance of material for sale. Terms of sale of other’s material for sale. Terms of sale should be clearly and concisely stated to avoid future misunderstandings. To provide consistency to ASDA Qualified Auctioneer’s Consignor Agreements, the following are stated as minimum requirement for such agreements.
1. Documents must be clear, concise, easy to understand, and type size must comply with legal requirements. Owner’s statement of material consigned prepared when received to allow consignors to satisfactorily account for their property.
2. Terms of material acceptance should be stated. Basic information should include acceptance date, auction date, projected date of settlement, commission fee, lotting fee and/or any other such charges to be incurred by consignor.
a. Should commission or seller’s fee be contingent on gross/net sales amount, terms spelled out clearly.
b. Reserves or Minimum Bid for lots, along with related “buy back” fees should be explained, if applicable. Actual Reserves or Minimum Bids should be established with owner prior to sale.
c. Terms of any “funds advanced” should be clearly stated, including interest rate and penalties, if any. Should realization not exceed advance, terms of repayment should be stated.
d. Insurance carrier and policy statement regarding losses or damage to stamps while in seller’s hands. Amount of insurance on the estimated proceeds should be stated in writing as soon as possible after material received.
e. Policy, payment terms, and certificate costs regarding extension clearly stated. (See Extensions Policy).
f. Returned lot policy stated. Clearly state disposition of unsold/returned lots to include auction house policy on mis-described lots.
g. Written Prices Realized to be provided free of charge to consignor along with a prepared statement to that effect.
3. Agreement should state auction house’s policy on lotting material. If entirely at Auction house’s discretion, it should be so stated, unless superseded by a separate lotting agreement. Owner to receive Pre-Auction statement listing his lots. Claims of mislotting or missing material must be made prior to sale.
4. If any estimate of realization is given, it should be written on the Consignor Agreement. Should such estimate be provided a consignor, a clear statement should be made regarding the conditions associated with the “estimate”. If auction house is not held accountable for the estimate, it should be so stated. Statement that agreement complies with state’s auctioneering laws in which auction house operating.
5. Statement including where and how disputers are to be adjudicated and under what laws. Additionally, firm’s status as an ASDA Qualified Public Auctioneer Stated along with the ASDA address.
6. All disputes arising between consignor and seller are subject to the By Laws of the ASDA.