The new Consumer Protection Act is by no means a threat to any reputable auctioneer. On the contrary, it will help auctioneers to give a slicker
better service, says Tanya Jovanovski, Chief Executive of Rawson Auctions.
"The act," said Jovanovski, "emphasises the need for full disclosure. It tries by various means to ensure that a buyer has a genuine and complete understanding of the deal into which he enters - and it has the power to invalidate any contract where this understanding is later revealed to have been incomplete."
At Rawson Auctions, said Jovanovski, this means that the seller has to give the auctioneer every bit of information required and to reveal any latent defects. Then, if possible, the potential buyer should go through the documentation with the auctioneering team before the auction takes place.
If this is not done, she said, the buyer can find himself bidding on a product he does not fully understand.
If a property is being sold with tenants, added Jovanovski, it is important for their leases to be inspected and understood by the potential buyer - again before the auction takes place. In addition, the buyer should be given an opportunity to speak to tenants, find what they think of their premises, how their businesses are doing (if they are a commercial enterprise) and how long they expect to stay.
If the property is in a residential area, said Jovanovski, it is also advisable for clients to check with local estate agents on prices recently achieved.
"The essence of the new act is that any kind of misrepresentation is now outlawed and could have serious repercussions," said Jovanovski. "This is not a handicap - it is a welcome further protection for the client and one which we feel we can live with very easily."
For further information contact Tanya Jovanovski 082 411 9599 or Jason Lee 082 940 6605 or 021 658 7100, or email info@rawsonauctions.com
