Auction industry breaches and penalties
On this page you’ll find information about the penalties for auction industry-related offences. These fines are for individuals—corporations could face up to 5 times the maximum penalty.
These offences relate to your appointment to act on behalf of clients.
| Offence | Maximum penalty |
|---|---|
| Acting for a client without a written appointment to act (except for livestock auctions) | $34,540 |
| Not giving the client a copy of the written appointment to act (including if you have a non-mandatory written appointment for a livestock auction) | $34,540 |
Acting as an auctioneer of real property (or real estate) on behalf of someone, without a valid appointment on the approved form | $34,540 |
Acting as a chattel auctioneer on behalf of someone, without a valid appointment on the approved form | $34,540 |
Acting as a chattel auctioneer in a livestock auction on behalf of someone, without a valid appointment on the approved form (when appointed in writing) | $34,540 |
These offences relate to your auditor's actions and audit reports.
| Offence | Maximum penalty |
|---|---|
Failing to appoint an auditor | $34,540 or 1 year imprisonment |
Failing to lodge an audit report within the time limit | $34,540 or 2 years imprisonment |
Failing to lodge an audit report on ceasing to be licensee or within 2 months of continuing business | $34,540 or 2 years imprisonment |
Auditor does not immediately file advice of irregularities to the Chief Executive, Office of Fair Trading (OFT) | $34,540 or 1 year imprisonment |
Auditor fails to notify the Chief Executive, OFT, when denied access to other records | $34,540 or 1 year imprisonment |
Auditor fails to supply a report to the licensee | $34,540 or 1 year imprisonment |
These offences relate to mandatory disclosures.
| Offence | Maximum penalty |
|---|---|
Disclosing a price guide for a real property (or real estate) to bidders or potential bidders | $93,258 |
Disclosing the reserve price for a real property to bidders or potential bidders (except to announce that the reserve price has been met) | $93,258 |
Offering or providing a comparative market analysis for a real property to bidders or potential bidders without the seller's approval | $93,258 |
Not displaying the name of the auctioneer or chattel auctioneer at the start of an auction (except when exempted under the Motor Dealers and Chattel Auctioneers Act 2014 or the Property Occupations Act 2014) | $17,270 |
Not announcing the name of the auctioneer or chattel auctioneer at the start of an auction (when exempted from displaying the name) | $17,270 |
Not announcing the name of the client for whom the auctioneer is selling livestock in a livestock auction (except for online auctions) | $1,727 |
Not displaying the name of the client for whom the auctioneer is selling livestock in an online livestock auction | $1,727 |
| Charging a buyer's premium on goods connected to a real property without getting the consent of the owner and/or not disclosing a buyer's premium is payable on goods | $34,540 |
Inspectors have the legal authority to make sure you don't break the law—you must follow their lawful directions or risk a fine.
These offences relate to non-compliance with inspectors.
| Offence | Maximum penalty |
|---|---|
Obstructing an inspector or failing to produce documents or provide information to an inspector | $34,540 or 1 year imprisonment |
Failing to give your name and address to an inspector | $8,635 |
These offences relate to your licence.
Change of licence details
| Offence | Maximum penalty |
|---|---|
Failing to advise the Office of Fair Trading in writing within 14 days about changes to any aspect of your licence, including your personal details | $17,270 |
Producing a licence on request
| Offence | Maximum penalty |
|---|---|
Failing to show a licence—or a copy of a staff member's licence—to an inspector on request | $34,540 |
Failing to show a copy of a licence—or a copy of a staff member's licence—to a client or other party (except an inspector) on their request | $17,270 |
Substitute licensees
Read about the rules you must follow when appointing a substitute licensee to avoid being fined.
| Offence | Maximum penalty |
|---|---|
Not having the consent and evidence of appointment at the office | $17,270 |
Not lodging an extension of appointment for more than 30 days | $34,540 |
Acting as licensee while a substitute is appointed | $34,540 |
These offences relate to motor vehicle auctions.
| Offence | Maximum penalty |
|---|---|
A chattel auctioneer doesn't correctly advertise or display an unwarranted vehicle for sale | $17,270 |
A chattel auctioneer doesn't give a statutory warranty notice on a warranted vehicle immediately after the sale | $17,270 |
Failure to record the particulars of an extension to the warranty period | $17,270 |
Failure to repair defects within 14 days | $34,540 |
A chattel auctioneer doesn't guarantee clear title (no encumbrances) of a motor vehicle | $34,540 |
A chattel auctioneer doesn't announce immediately before the auction that the vehicle is unregistered and written-off | $17,270 |
These offences relate to your place of business.
| Offence | Maximum penalty |
|---|---|
Not having a licensee in charge of your place of business | $34,540 |
Being a person in charge at more than 1 place of business | $34,540 |
Failing to advise the Office of Fair Trading within 14 days of changing, opening or closing your principal place of business | $34,540 |
These offences relate to your records.
| Offence | Maximum penalty |
|---|---|
Failing to keep an auction store book and auction sales book onsite at the registered office (chattel auctioneers) | $1,727 |
Failing to enter relevant details of acquired goods into an auction store book | $1,727 |
Failing to enter relevant details of auction transactions into an auction sales book within 24 hours of the auction | $1,727 |
Failing to enter relevant details into a livestock auction book if conducting livestock auctions | $1,727 |
These penalties apply if you've been convicted of a serious offence.
| Offence | Maximum penalty |
|---|---|
Failing to return your licence to the Office of Fair Trading within 14 days after being convicted of a serious offence and having your licence cancelled | $17,270 |
It is in an offence to steal or misuse trust monies. You risk a fine and imprisonment if you break the law.
These offences relate to dealing with trust accounts.
| Offence | Maximum penalty |
|---|---|
Wrongful conversion (or unauthorised use of money) and falsifying accounts | $172,700 or 5 years imprisonment |
Unauthorised use of a trust account | $34,540 or 2 years imprisonment |
Not banking trust monies immediately into a trust account | $34,540 or 2 years imprisonment |
Banking non-trust monies into a trust account | $34,540 or 1 year imprisonment |
Not providing a financial account to the client | $34,540 or 2 years imprisonment |
Unlicensed work as an auctioneer or chattel auctioneer is against the law. These offences relate to unlicensed work.
| Offence | Maximum penalty |
|---|---|
Working unlicensed | $34,540 or 2 years imprisonment |
Buying, selling, hiring out, borrowing or lending a licence | $34,540 or 2 years imprisonment |
Enforceable undertaking
An enforceable undertaking is an alternative to court action. It is a legally binding agreement between a business and the Office of Fair Trading that the business won’t keep breaking the law.