Part IV. Standards of Practice
18VAC25-21-100. Advertising.
A. All advertising must be truthful. Advertising shall contain no false, misleading or deceptive statements, with respect to types or conditions of merchandise offered at auction, why merchandise is being sold, who has ownership, where the merchandise was obtained, or the terms and conditions of the auction and sale.
B. In all advertisements relating to an auction, the auctioneer's name and Virginia license number or the auction firm's name and Virginia license number shall be clearly displayed.
Statutory Authority
§§ 54.1-201 and 54.1-602 of the Code of Virginia.
Historical Notes
Derived from VR150-01-2:1 § 4.1, eff. August 1, 1995.
18VAC25-21-110. Contracts.
A. When a licensee agrees to conduct an auction, a contract shall be drawn setting forth the particulars of the terms and conditions under which the auctioneer or auction firm received the real or personal property for auction and particulars for the disbursement of the proceeds. Each contract for auction shall include the following:
1. a. A detailed list of the real or personal property received for sale with adequate descriptions of the property so that the personal property of material value can be readily identified. If a list cannot be made at the time of signing of the contract, and the owner of the items agrees to waive this requirement in writing in an addendum to the contract, then a list must be made a part of the contract (and attached) prior to auction of the real or personal property for that day; or
b. If the auctioneer or auction firm enters into a contract to sell items on a consignment basis where the total value of all the items to be sold at any one action does not exceed $500, then the requirement contained in subdivision 1 a of this subsection is not applicable.
2. The name, address, telephone number, and license number of the licensee entering into the contract.
3. The name, address and telephone number of the property owner.
4. The date, time and place of the auction or auctions at which the real or personal property is scheduled to be auctioned. The date by which the property is to be returned or otherwise disposed of in accordance with the terms of the contract if it is not sold.
5. The fee or percentage of gross sales the auctioneer or auction firm will charge the owner and what services are included in the fee, such as preparation, travel, labor, advertising and any other auction related expenses.
6. By what date the owner is to be paid and who is responsible for disbursing the funds.
7. A statement that the clerk sheets, or other evidence to properly account for all items sold, shall be given or made available for inspection by the owner on a daily basis.
8. The following statement above the owner's signature line: "I have read and accepted the terms of this contract."
B. A legible executed copy of the contract and any addendums shall be given to the owner at the time of execution.
Statutory Authority
§§ 54.1-201 and 54.1-602 of the Code of Virginia.
Historical Notes
Derived from VR150-01-2:1 § 4.2, eff. August 1, 1995; amended, Virginia Register Volume 18, Issue 7, eff. February 1, 2002; Volume 25, Issue 7, eff. February 1, 2009; Volume 32, Issue 1, eff. November 1, 2015.
18VAC25-21-120. Conduct at auctions.
No licensee shall attempt to escalate bidding through false bids, or through collusion with another (shills). The licensee shall not bid on the owner's behalf nor knowingly accept a bid made by the owner or made on the owner's behalf unless notice has been given that liberty for such bidding has been reserved. The licensee shall neither bid on his own behalf nor knowingly accept a bid made on his behalf unless notice has been given that such bidding will be permitted.
Statutory Authority
§§ 54.1-201 and 54.1-602 of the Code of Virginia.
Historical Notes
Derived from VR150-01-2:1 § 4.3, eff. August 1, 1995; amended, Virginia Register Volume 25, Issue 7, eff. February 1, 2009; Volume 32, Issue 1, eff. November 1, 2015.
18VAC25-21-130. Display of license.
Auctioneers shall carry their pocket cards on their person and shall produce them upon request. Auction firms shall display their license in a conspicuous location at the address of record. The address of record shall not be a post office box as detailed in 18VAC25-21-170 C.
Statutory Authority
§§ 54.1-201 and 54.1-602 of the Code of Virginia.
Historical Notes
Derived from VR150-01-2:1 § 4.4, eff. August 1, 1995.
18VAC25-21-140. Documentation.
Upon completion of the licensee's service, each owner shall be given legible copies of bills of sale, clerk sheets, consignment sheets, settlement papers, balance sheets or other evidence to properly account for all items sold at auction.
Statutory Authority
§§ 54.1-201 and 54.1-602 of the Code of Virginia.
Historical Notes
Derived from VR150-01-2:1 § 4.5, eff. August 1, 1995; amended, Virginia Register Volume 32, Issue 1, eff. November 1, 2015.
18VAC25-21-150. Escrow funds.
A. Proceeds of a personal property auction not disbursed to the owner on auction day shall be deposited in an auction escrow account by the licensee no later than the next banking day following the date of auction or sale of the goods, whichever occurs first.
B. Notwithstanding the provisions of subsection A of this section, proceeds that are paid via credit card, debit card, check card, or any other electronic funds transfer (EFT) method shall be deposited into an auction escrow account upon receipt from the originating source.
C. The auction escrow account shall be used solely for the preservation and guarantee of auction proceeds until disbursed at settlement. Funds for any other purpose shall not be commingled with the auction escrow account. Contingency accounts established to guarantee checks accepted on the owner's behalf shall not be considered commingling of funds. Moneys due to the licensee shall not be withdrawn from the auction escrow account until final settlement is made with the owner.
D. Funds to be deposited in the escrow account may include moneys that shall ultimately belong to the licensee for incidental expenses per the terms of the contract. Such moneys shall be separately identified in the escrow account records and shall be paid to the licensee by a check drawn on the escrow account when the funds become due to the licensee. The fact that an escrow account contains money that may ultimately belong to the licensee does not constitute "commingling of funds," provided that there are periodic withdrawals of said funds at intervals of not more than six months and that the licensee can at all times accurately identify the total funds in that account that belong to the licensee.
E. On funds placed in an account bearing interest, written disclosure in the contract of sale or lease at the time of contract or lease writing shall be made to the principals to the transaction regarding the disbursement of interest.
F. Auctioneers and auction firms shall use federally insured depositories in the Commonwealth of Virginia. All accounts, checks, and bank statements shall be labeled "escrow" and the accounts shall be designated as "escrow" accounts with the financial institution where such accounts are established.
G. Proceeds due from the sale of goods other than real property shall be disbursed to the owner no later than 30 days after the date of each auction.
H. Funds from a real estate auction shall be held in escrow until settlement in accordance with the agreement of sale.
I. If the owner's goods are not sold in a single auction, proceeds due shall be disbursed to the owner within 30 days after each auction for goods other than real property, or in accordance with the agreement of sale for the sale of real property. Notice must be given to the owner of tentative date of auction, or date of return to the owner, of the remaining goods.
J. The balance in the escrow accounts shall be sufficient at all times to account for all funds that are designated to be held by the licensee. A licensee shall not disburse or cause to be disbursed moneys from an escrow account unless sufficient money is on deposit in that account to the credit of the individual client or property involved.
Statutory Authority
§§ 54.1-201 and 54.1-602 of the Code of Virginia.
Historical Notes
Derived from VR150-01-2:1 § 4.6, eff. August 1, 1995; amended, Virginia Register Volume 25, Issue 7, eff. February 1, 2009; Volume 25, Issue 24, eff. October 1, 2009; Volume 32, Issue 1, eff. November 1, 2015.
18VAC25-21-160. Records.
The licensee is required to maintain, for a period of four years from the date of settlement, written records of the following: the contract drawn with each owner; auction records, including but not limited to lists of buyers and their addresses; and clerk sheets showing the items sold including the buyers' numbers or names and the selling prices and the final settlement papers. These business records shall be available for inspection by the board or its designees as deemed appropriate and necessary.
Statutory Authority
§§ 54.1-201 and 54.1-602 of the Code of Virginia.
Historical Notes
Derived from VR150-01-2:1 § 4.7, eff. August 1, 1995; amended, Virginia Register Volume 32, Issue 1, eff. November 1, 2015.
18VAC25-21-170. Change of address.
A. Licenses shall not be transferable and shall bear the same name and physical address as the business. Upon dissolution or change in the form of the business entity of an auction firm, the auction firm license shall become void.
B. A licensee shall report all changes of address to the board in writing, within 30 calendar days of the change, whereupon the board shall issue an amended license without fee for the unexpired portion of the biennial period.
C. A post office box is acceptable only when a physical address is also provided. If the licensee holds more than one license, certificate, or registration, the licensee shall inform the board of all licenses, certificates, and registrations affected by the address change.
Statutory Authority
§§ 54.1-201 and 54.1-602 of the Code of Virginia.
Historical Notes
Derived from VR150-01-2:1 § 4.8, eff. August 1, 1995; amended, Virginia Register Volume 25, Issue 7, eff. February 1, 2009; Volume 32, Issue 1, eff. November 1, 2015.