S.D. Admin. R. 20:69:06:06

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:69:06:06 - Auction advertisements

An auctioneer who advertises shall comply with the following requirements:

(1) Auction advertisements must disclose the names and types of licenses held by all licensees involved in the transaction;

(2) If an auction advertisement includes real estate and personal property and the personal property is to be sold by an auctioneer not licensed under this chapter or SDCL chapter 36-21 A, then the auction advertisement may not be displayed in such a manner to give the impression that the real estate is being sold by the unlicensed auctioneer;

(3) No auction may be advertised as absolute nor may any advertising contain the term, absolute auction, or the term, absolute, or any term with similar meaning, nor may any licensee offer to sell any property at absolute auction unless:

(a) Except for current tax obligations or easements, there are no unrecorded liens or encumbrances on the property in favor of any other person, firm, or corporation;

(b) Each holder of a lien or encumbrance, by execution of the auction contract or other written agreement provided to the auctioneer, agrees to the absolute auction without regard to the amount of the highest bid or to the identity of the highest bidder; or

(c) A person, firm, trust, or estate, by execution of the auction listing contract or other written agreement provided to the auctioneer guarantees the complete discharge and satisfaction of all liens and encumbrances, as applicable, immediately after the absolute auction or at the closing without regard to the amount of the highest bid or to the identity of the highest bidder;

(4) When advertising an absolute auction, there must be the bona fide intention at the time of the advertising and at the time of the auction sale to transfer ownership of the property. The intent must exist without reliance on any agreement that any particular bid level must be reached;

(5) If the auction is a minimum bid auction, the minimum price must be stated in any advertising and promotional material and announced at the auction;

(6) Advertising for a sale at which some parcels will be auctioned with reserve and some items will be auctioned without reserve shall clearly and conspicuously indicate this fact to the public. In written advertisements for such a sale, the font size, style, and case of the type used in publicizing the part of the sale is to be held without reserve may not differ from the font size, style, and case used to publicize the part of the sale to be held with reserve;

(7) An auctioneer shall disclose the existence of any buyer's premium to be charged to a buyer at an auction sale. Such disclosure shall be made in all published advertising and disclosed prior to the start of an auction.

S.D. Admin. R. 20:69:06:06

20 SDR 18, effective 8/16/1993; 37 SDR 112, effective 12/8/2010.

General Authority: SDCL 36-21A-89(7).

Law Implemented: SDCL 36-21A-71(29), 36-21A-72, 36-21A-89.