Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Consumer transactions and auctions - Auctions

36ZF: Account and payment of proceeds

You could also call this:

“Auctioneers must give you your money and a sale report within a set time”

When an auctioneer sells something for you, they must give you your money and a report about the sale within 10 working days. The report will tell you how much the item sold for, any money taken out for taxes or the auctioneer’s fee, and how much money you get.

If you ask the auctioneer to give you the money and report sooner, they must do so within 5 working days of your request, unless you and the auctioneer have agreed to something different.

The auctioneer doesn’t have to follow these rules if you are a business or if you’re selling things that aren’t usually for personal or home use, and if you agree that these rules don’t need to apply.

These rules don’t apply when someone is selling land or property rights. In those cases, different rules from the Real Estate Agents Act 2008 apply instead.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156674.

Topics:
Business > Fair trading
Business > Industry rules
Money and consumer rights > Consumer protection
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Part 4A Consumer transactions and auctions
Auctions

36ZFAccount and payment of proceeds

  1. Within 10 working days after the sale by auction of property, the auctioneer must provide to the vendor—

  2. the balance of the proceeds of the sale payable to the vendor; and
    1. an account of the sale, which must set out, at a minimum, the bid accepted from the purchaser, the amount of any tax, auctioneer's commission or other deductions, and the amount payable to the vendor.

      1. However, unless the vendor and auctioneer have agreed otherwise, if the vendor requests an auctioneer to provide the balance of the proceeds and an account of the sale sooner than 10 working days after the sale, the auctioneer must comply with the request within 5 working days after the request is made.

      2. An auctioneer need not comply with subsection (1) if—

      3. the vendor—
        1. is in trade; or
          1. is selling goods other than goods of a kind ordinarily acquired for personal, domestic, or household use or consumption; and
          2. the vendor agrees (expressly or impliedly) that subsection (1) need not apply.

            1. This section does not apply to a sale by auction of land or an interest in land conducted by an agent, a branch manager, or a salesperson, licensed under the Real Estate Agents Act 2008, and the provisions of that Act apply instead.

            Compare
            Notes
            • Section 36ZF: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).
            • Section 36ZF(4): amended, on , by section 88(2) of the Statutes Amendment Act 2018 (2018 No 27).