SALE BY AUCTION LAW OF LAGOS STATE – Laws (2024)

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SALES BY AUCTION LAW

ARRANGEMENT OF SECTIONS

1.Citation.

2.Interpretation.

3.Businessofauctioneer.

Licensingof Auctioneers

4.Auctioneerto hold licence.

5.Appointmentof licensing authority.

6.Licences:areas to which they mayextend,forms and fees.

7.Licencestobe granted toindividuals.

8.Applicationfor and grant of licence.

9.Securityto be given by auctioneer.

10.StateCommissioner may suspend or revoke licence on certain conditions.

11.Durationoflicences.

12.Occasionallicence.

13.Licencestoagents of auctioneers.

14.Suspensionand revocation of agent’slicence.

15.Agentceasing to be in employer’s servicedisqualified.

16.Registeroflicences.

17.Auctioneersto accept the sale of all property offered by owners.

18.Auctioneer’slicence not toauthorisesale of intoxicatingliquor.

19.Noticeof sale ofland.

20.Notice,catalogue and report of sale to be furnished to divisional officer.

21.Auctioneer’sname and address to be published at sale.

22.Salessubject to areserve,and vendor’s right tobid.

23.Auctioneermay recover purchase-money.

24.Employmentto sell by action does notauthoriseprivatesale.

25.Ratesof commission chargeable on auction sales; repealsetc.

26.Penaltiesincurred by agents.

27.Orderof suspension or revocation oflicence.

Miscellaneous

28.Savingsas to sales in execution of decrees.

29.Auctioneerprohibited from preparingconveyances.

30.Powerto make regulations.

FirstScheduleForms ofLicence

SecondSchedule

SALES BY AUCTION LAW

ALaw to provide for the licensing of auctioneer and to regulate sales byauction.

[F.& L. 1958, Cap. 187. L.N. 257 of 1959.L.N. 112 of 1964.]

[21stJune, 1971] [Commencement.]

1. Citation

ThisLaw may be cited as the Sales by Auction Law.

2. Interpretation

Inthis Law unless the context otherwise requires—

“auctioneer”means a licensed auctioneer and includes the holder of an agent’s licence andin sections 3 and 22 includes any person conducting a sale by auction;

“goods”includes animals and any interest in goods;

“lands”includes any interest in land.

3. Business of auctioneer

Everyperson who sells any goods or lands at any sale where any person becomes or maybecome the purchaser of the same by competition and being the highest bidder,either by being the sole bidder, or increasing upon the biddings made byothers, or decreasing on sums named by the auctioneer, or other person at suchsale, or by any other mode of sale by competition shall be deemed to carry onthe business of an auctioneer.

Licensingof Auctioneers

4. Auctioneer to hold licence

(1) Noperson shall carry on the business of an auctioneer without a licence grantedunder this Lawauthorisinghim to carry on such business or in anypart or area to which such licence does not extend.

[L.N.112 of 1964.]

Penalty:a fine of one hundred naira.

(2) Thissection shall not apply to any person in the service of the Government sellinggoods or lands being the property of the Government or which the Government orany department or officer of the Government is by anyenactmentauthorisedto sell, or to a sale conducted by an officer ofa court acting under the orders of the court.

5. Appointment of licensing authority

TheState Commissioner may by notice in the Gazette appoint any person to be thelicensing authority for the purposes of this Law for any area specified in suchnotice.

[L.N.257 of 1959.]

6. Licences: areas to which theymayextend,forms and fees

Licencesgrantedunder this Law shall extend—

• toall parts oftheLagosState; or

[SecondSchedule.]

(b) to anysuch part or group of such parts in respect of which a separate fee for thelicence is specified in the Second Schedule or is prescribed; or

(c) inthecase of an agent’s licence, to the area of a licensing authority, andshallbe in one of the forms set forth in the First Schedule. There shall bepaidthereforprior to the issue of a licence the fee specified forsuch licence in the Second Schedule or such other fee as may be prescribed.

[FirstSchedule,FormsA-D.Second Schedule.]

7. Licencesto be granted to individuals

Licencesmay,subject to the provisions of this Law, be granted by the licensing authority toan individual but shall not be granted to afirm,or corporation orto a pawnbroker as defined by the Pawnbrokers Law, or to any servant,apprentice or agent of any such pawnbroker.

[Cap.P2.]

8. Application for and grant of licence

(1) Applicationfor a licence shall be made in writing to the licensing authority for the areain which the principal office or place of business of the applicantissituate.

(2) Beforegranting any licence, the licensing authority shall make such inquiries as heconsiders requisite for ascertaining that the applicant is a fit and properperson to be licensed, and may refuse any licence without assigning any reasonto the applicant.

(3) Anyperson to whom a licence has been refused may represent his case to the StateCommissioner who may direct that the licence be withheld or that further examinationand inquiry be held.

[L.N.257 of 1959.]

9. Security to be given by auctioneer

(1) Ifthe licensing authority shall decide, or be directed by the State Commissioner,grant a licence he shall require the applicant to give security by bond in theprescribed form for such sum as may be prescribed for such licence, with one ormore sureties approved by the licensing authority, to answer for the faithfuldischarge of his office:

[L.N.257 of 1959.]

Providedthat the licensing authority may accept, in lieu of the security aforesaid,security by deposit in the Treasury of the sum prescribed for the bond.

(2) Ifit shall appear to the licensing authority that the security of any auctioneerhas become insufficient, he shall call upon the auctioneer to give sufficientsecurity, and if the auctioneer shall fail to do so, the State Commissionermay, on the report of the licensing authority, suspend the licence of theauctioneer until sufficient security has been given.

10. State Commissioner may suspend orrevokelicenceson certain conditions

TheState Commissioner may, on the recommendation of a licensing authority andafter such inquiry as he may consider, necessary, if he considers it advisablein the public interest to do so, suspend or revoke the licence of anauctioneer:

Providedthat upon any such suspension or revocation there shall be refunded to theauctioneer by the licensing authority which issued the licence so suspended orrevoked a sum equivalent to one-twelfth of the annual licence fee for eachcompleted month for which the licence is suspended or for the remainder of theperiod for which the licence was issued as the case may be.

11. Duration oflicences

(1) Alicence under this Law other than an occasional licence shall have effect fromthe date of the granting thereof till the close of the 30th day of June, or the31st day of December, in the case of half-yearly oryearlylicencesrespectively, of the year in which such licence mayhave been granted.

Suspensionor revocation oflicences

(2) Wheneveran order suspending a licence is made, the licence shall cease to be of anyeffect during the term of suspension; and whenever the licence is revoked thelicence shall cease to have any effect whatever.

12.Occasionallicence

Anoccasional licence permitting the person named therein to carry on the businessof an auctioneer for one day only may be granted by a licensing authority:

Providedthat an occasional licence shall not be granted in an area in which a licensedauctioneer is carrying on business and the provisions of subsection (1) ofsection 9 shall apply in respect to such a licence.

13.Licencestoagents of auctioneers

(1) Anyperson who may have a licence in force as in Form B of the First Schedule mayapply for and obtain from the licensing authority for any area one ormorelicences(hereinafter called an agent’s licence) and every suchlicence shallauthorisethe person named therein (such person beingin the permanent employment of the person applying for such licence under acontract of not less than three months’ duration) to sell by auction on behalfof such employer in the area of the licensing authority who has granted suchlicence:

[FirstSchedule, Form B.]

Providedthat—

• thetotal number of persons whomay beauthorisedby agents’licencesto sell by auction onbehalf of any such employer shall not exceed three; and
• anagent’s licence shall not beissued in respect of an area to which the employer’s licence does not extend.

Liabilityof employer

(2) Suchagent shall not be required to find security but the employer shall be requiredto give such additional security as may be prescribed, and the provisions ofsection 9 shall apply in respect to an agent’s licence. The employer shall beresponsible for the agent’s compliance with all of the provisions of this Law,and for the payment of any pecuniary penalties which he may incur forcontraventions thereof.

14.Suspensionand revocation of agent’s licence

Anagent’s licence may be suspended or revoked for any offence, committed by him,for which any other licence under this Law may be suspended or revoked, and incase the licence of the employer of such agent should terminate, or besuspended or revoked, the licence of any agent employed by him shall ipso factoterminate, or be suspended during the suspension of the employer’s licence, orbe revoked as the case may be.

15.Agentceasing to be in employer’s service disqualified

(1) If theholder of an agent’s licence shall cease to be in the employment of the auctioneerwho applied for the same, he shall forthwith cease to be qualified to act as anauctioneer under such licence.

Transferof licence

(2) Thelicensing authority may in such last-mentioned case, on the request of theperson who applied for such licence, transfer the same for the unexpired periodthereof to some other person in the employment of such applicant under contractas aforesaid, but no agent’s licence shall be transferred more than once in anyperiod of six months.

16.Registeroflicences

Eachlicensing authority shall keep a register of auctioneers licensed by him and ofpersons holding agents’licencesfor the area of the licensingauthority.

17.Auctioneersto accept sale of all property offered by owners

(1) Everyauctioneer shall, on the requisition of the owner thereof, accept the sale ofall property which may be offered to him for sale in the township or place inwhich he carries on his ordinary business as an auctioneer, and shall sell thesame within such time as the owner may require, or as soon thereafter aspossible, having regard to the sale of other property with which he has beenentrusted:

Providedthat except in the case of perishable goods he shall not be bound to sell suchproperty sooner than seven days after he shall have accepted the sale thereof.

(2) Nothingherein shall be held to restrict any auctioneer from selling at the same salethe property of more than one owner, so as the goodsarelottedconsecutively and in such manner that no owner’s goods maybecome mixed with the goods of any other owner.

18.Auctioneer’slicence not toauthorisesale of intoxicating liquor

Noauctioneer’s licence shallauthoriseany person to sell intoxicatingliquor, for the sale of which a licence is required by law, except upon premisesin respect of which the owner of such liquor shall have in force at the time ofthe sale thereof, the proper licence for the sale of such liquor.

19.Noticeof sale of land

(1) Nosale by auction of any land shall take place until after at least seven days’public notice thereof has been given in the City ofLagos, and also at theplace of the intended sale. The notice shall be made not only by printed orwritten document, but also by beat of drum or such other method intelligible touneducated persons as may be prescribed, or, if not prescribed, as the StateCommissioner may direct, and shall state the name and place of residence of theseller.

[L.N.112 of 1964.]

(2) Noticeof the sale shall also be given in the manner prescribed to the Principal StateLand Officer six days before the sale, and such notice shall be given by asheriff’s officer as well as by the auctioneer.

Penalty:a fine of forty naira.

[L.N.112 of 1964.]

20.Notice,catalogue and report of sale to be furnished to State Commissioner

Twodays before any sale by auction shall take place, or within such shorter timeas the State Commissioner may, in special circ*mstances,authoriseinhis discretion, notice thereof in writing together with a catalogue of thegoods or lands to be sold shall be delivered by the auctioneer to the StateCommissioner, specifying the place and time at which such sale begins, andwithin sixty hours after such sale shall have terminated a complete account ofthe sale certified by oath or affirmation of the auctioneer shall be deliveredto the State Commissioner, specifying the price at which each lot shall havebeen sold.

Penalty:a fine of forty naira.

[L.N.112 of 1964.]

21.Auctioneer’sname and address to be published at sale

Everyauctioneer, before beginning any auction, shall affix or suspend and during thewhole time of such auction keep affixed or suspended in some conspicuous partof the room or place where the auction is held a ticket or board containing histrue and full name and residence painted, printed, or written in large letters,publicly visible and legible.

Penalty:a fine of ten naira.

22.Salessubject to a reserve, and vendors’ right to bid

(1) Itshall be stated in the particulars or conditions of sale by auction of any landor goods whether such sale will be without reserve, or subject to a reservedprice, or whether a right to bid is reserved.

Wherewithout reserve

(2) If itis stated that the sale will be without reserve or to that effect, then itshall not be lawful for the seller or any person on his behalf or employed byhim to bid at such sale, or for the auctioneer to take knowingly any suchbidding.

Wheresubject to reserved price

(3) If itis stated that the sale will be subject to a reserved price as regards any oneor more lots, it shall be lawful for the seller or any person employed by himto give one bid for each such lot and no more, which bid shall be openlydeclared at the auction upon the lot being put up for sale, before any otherbidding for such lot is received.

Whereright to bid reserved to seller

(4) If itis stated that the sale will be subject to a right for the seller to bid, itshall be lawful for the seller, or for any one person on his behalf, but notmore than one, to bid at such auction in such manner as he shall think proper.

Consequencesof seller bidding in the preceding cases

(5) If theseller or any person employed by him or on his behalf shall bid at any salecontrary to any of the provisions of this section, any purchaser may refusetofulfilhis purchase, but the highest bona fide bidder shall beentitled, if he shall so elect, to have the land or goods at the price offeredby him.

Penaltyon auctioneer receiving unlawful bidding

(6) Noauctioneer nor any person in partnership with him or in his employment or onhis behalf shall bid at any sale conducted by him and any auctioneer who—

(a) knowinglyreceivesany bidding contrary to the provisions of this section; or

(b) bidshimselfor receives any bid from any partner of his or any person in his employment oron his behalf, shallbe liable on conviction, to a fine of one hundrednaira.

23.Auctioneermay recover purchase-money

(1) Theauctioneer conducting a sale by auction shall (unless itbeagreedotherwise between him and the seller) be entitled to sue for, recover anddischarge all sums due in respect of such sale.

Payment

(2) Theauctioneer shall (unless it be agreed otherwise between him and the seller) beliable for the due payment to the seller of the net proceeds of the sale withinten days from the time of sale of such property.

24.Employmentto sell by auction does notauthoriseprivate sale

Theemployment of an auctioneer to sell any property by public auction doesnotauthorisehim, in case the public auction proves abortive, tosell the property by private contract.

25.Ratesof commission chargeable on auction sales; repeals, etc.

(1) Notwithstandingthe provisions of any other enactment or law, the remuneration of anyauctioneer for selling any property by auction shall be computed to the valueof the property offered for sale as follows, that is to say—

(a)notexceedingN250,000——5%

(b)overN250,000but not exceeding N750,000——4%

(c)overN750,000but not exceeding N1,000,000—— 3%

(d)overN1,000,000but not exceeding N3,000,000——2%

(e)overN3,000,000but not exceeding N5,000,000——1.5%

(f)overN5,000,000 but not exceeding N10,000,000——1%

(g)overN10,000,000——0.5%

[DecreeNo. 50 of 1979.]

(2) Notwithstandingthe provisions of any other enactment or law (including any contract orinstrument) all expenses in the nature of advertisem*nts or other form ofpublicity and all other expenses incurred prior to an auction sale shall beborne by the auctioneer conducting the sale concerned.

(3) Accordingly,the provisions of any law relating to sales by action shall be read subject tothe foregoing provisions of this section and, without prejudice to thegenerality of the forgoing, the provisions of the following enactments arehereby repealed, that is to say—

(a) section25 of the Auctioneer’s Law ofthe former Western Nigeria as in forceinOgun,OndoandOyoStates;

[Cap.9 LL of WN 1959.]

(b) section25 of the Auctioneer’s Law ofthe former Eastern Nigeria as in force inAnambra,CrossRiver,Imo andRiversStates;

[Cap.12 LL of EN 1963.]

(c) section25 of the Auctioneer’s Law of the former Northern Nigeria as in force inBauchi, Benue Borno,Gongola,Kaduna,Kano,Kwara, Niger,Plateau andSokotoStates;

[Cap. 10 LL of NN 1963.]

(d) section25 of the Auctioneer’s Law oftheLagosState; and

[Cap. 126 LL of LS 1973.]

(e) section25 of the Auctioneer’s LawofBendelState.

[Cap. 12 LL of BS 1976.]

26.Penaltiesincurred by agents

(1) If theemployer of any person holding an agent’s licence is ordered to pay any penaltyincurred by such person, and makes default in doing so, the penalty may belevied by distress, seizure and sale of movable and immovable property of suchemployer.

Employer’sremedy

(2) Anypenalty paid by or recovered from the employer on behalf of such person soemployed by him, together with all costs incurred by such employer in respectof such penalty, shall be a debt due to him from the person so employed by him.

27.Orderof suspension or revocation of licence

(1) Thecourt imposing any pecuniary penalty under this Law upon any auctioneer may, ifit shall appear that the offence is of such nature as to require the licence ofsuch auctioneer to be suspended or revoked, make an order to that effect, andthe licence shall be suspended or revoked accordingly.

Reportof order

(2) Thecourt making any order of suspension or revocation of a licence shall forthwithintimate the same to the licensing authority.

Miscellaneous

28.Savingsas to sales in execution of decrees

Nothingin this Law shall be construed to alter or derogate from the provisions of anyenactment or rules of court, relating to sale in execution of decrees.

29.Auctioneerprohibited from preparing conveyances

Noauctioneer, or person in his employment or in partnership with him, shalldraft, prepare or procure the execution of any conveyance of land.

Penalty:a fine of one hundred naira.

30.Powerto make regulations

TheState Commissioner may make regulations for the following purposes—

(a) alteringthesums specified in the Second Schedule either generally or in relationtolicencesissued in any area specified in such regulation;

[L.N.112 of 1964.Second Schedule.]

(b) prescribingthesums for which security shall be required in respect of theseverallicenceswhich may be issued under this Law; and

(c) generallyforthe further or better carrying into effect the purposes of this Law.

FirstSchedule

FORMSOF LICENCES

[ss.6 and 13.]

FORMA

WITHOUTPRIVILEGE OF AGENT

Licenceis hereby granted to [name and residence of person licensed] to carry on the businessof an auctioneer [in theLagosStateor in ——————-(specify part of theLagosStatetowhichlicenceisto extend)] until the———dayof,20, subject tothe

Salesby AuctionsLaw.

[Cap.S1.]

Datedthisdayof,20

Feepaid:Nk.

Signatureof Licensing Authority

FORMB

WITHPRIVILEGE OF AGENT

Licenceis hereby granted to [name and residence of person licensed] to carry on thebusiness of an auctioneer (with privilege of agents) [intheLagosStateor in (specify part of theLagosStatetowhich licence is to extend)] until the——–dayof——————-, 20———-,subjecttotheSales by Auctions Law.

[Cap.S1.]

Datedthis_______________day of___________, 20_____________

Feepaid:Nk.

_________________________

Signatureof Licensing Authority

FORMC

AGENT’SLICENCE

Licenceis hereby granted to [name and residence of person licensed] to carry on thebusiness of an auctioneer in the [name of district or other area] as agent of

[name and residence of the employer]

until the_______day of________,20_____________, in case suchagencyshall so long continue,subject to the Sales by AuctionLaw.

[Cap.S1.]

Datedthisdayof,20

Feepaid:Nk.

______________________________

Signatureof Licensing Authority

FORMD – OCCASIONAL LICENCE

[s.12.]

Licenceis hereby granted to [name and residence of person licensed] to carry on thebusiness of an auctioneer for one day only subject to the Sales by AuctionLaw.

[Cap.S1.]

Datedthis _________day of___________, 20___________

Feepaid:one naira.

______________________________

Signatureof Licensing Authority

SecondSchedule

[s.6.]

Licencesextendingto all parts of theLagosState

Everylicence as in FormA—Nk

Foroneyear4800

Forhalf ayear2900

Everylicence as in FormB—Nk

Foroneyear5300

Nk

Forhalf ayear3120

Agents’Licences

Everylicence as in FormC—Nk

Foroneyear400

Forhalf ayear240

OccasionalLicences

Nk

Everylicence as in FormD—100

SUBSIDIARYLEGISLATION

1.TheSales by Auction Regulations

Thesales by auction regulations

madeunders. 30

1. These regulations may be cited as theSales by Auction Regulations; they shall apply to the whole oftheLagosState.

2. Thebond required by section 9 of the Law shall be in accordance with Form A in theSchedule hereto and shall be for the sum of one thousand naira.

[Form A.]

3. Wherethe holder of a licence with the privilege of havingagentsdesiresto obtain an agent’s licence the bond required by sections 9 and 13 of the Lawshall be in accordance with Form B in the Schedule hereto and shall be for thesum of four hundred naira.

[Form B.]

4. Thebond required by subsection (1) of section 9 and by section 12 of the Law shallbe in accordance with Form C in the Schedule hereto and shall be for the sum ofone hundred naira.

[Form C.]

5. Thenotice required by section 19 of the Law to be given to the Principal StateLand Officer shall be served at his office during the usual office hours.

6. Thenotice shall be in duplicate, and shall be printed or typed, and shall describeas accurately as possible the land to be sold.

7. ThePrincipal State Land Officer shall endorse upon each copy of the notice the dayand hour of its receipt, and shall hand back one copy to the person serving thesame, and file the other copy in his office.

Schedule

[reg. 2.]

FORM A – AUCTIONEER’S BOND

Knowall men by these presents that we are heldand firmly bound unto the Statein the sum ofnaira ofgood and lawful money ofNigeriatobe paid to the Accountant-General ofLagosState, for which paymentwell and truly to be made we bind ourselves and each of us jointly andseverally, our heirs, executors and administrators, firmly by thesepresents:

Sealedwith our seals this ______ day of _____________, 20 _________

Whereasthe above bounden ________________________has applied alicence under theSales by Auction Law toauthorisehim to carry on the business ofanauctioneer inLagosStateofNigeriawith(out) theprivilege of having agents from the __________dayof___________,20___________ until the_________day of_________nextthereafter,and the said application has been approved, and the abovebounden_________havealso been approved as the sureties of the said_________________

Nowthe condition of this obligation is such that if the above-named________________do and shall in all things conform to all and every provisions of the saidSales by Auction Law, then this obligation shall be void, otherwise shall beand remain in full force andeffect.

Signed,sealed and delivered in thepresence of ____________________

FORMB

AUCTIONEER’SBOND FOR AN AGENT

[reg.3.]

Knowall men by these presents that we_________________are heldandfirmly bound unto the State in the sum of_______________________hundred naira ofgood and lawful money ofNigeriato be paid tothe Accountant-General ofLagosState, for which payment well andtruly to be made, we bind ourselves and each of us jointly and severally, ourheirs, executors and administrators, firmly by thesepresents:

Sealedwith our seals this________day of____________, 20____________

Whereasthe above bounden_________________has applied for anagent’slicence under the Sales by Auction Law toauthorisetosell byauction on behalf of the said___________from the________dayof___________,20____________until the__________dayof ______________ nextthereafter, and the said application has beenapproved, and the above bounden ________________ havealso been approvedas the sureties of the said____________________

Nowthe condition of this obligation is such that if theabove-named

orany other person to whom such agent’s licence may be transferred under theprovisions of the said Law do and shall in all things conform to all and everythe provisions of the said Sales by Auction Law, then this obligation shall bevoid, otherwise shall be and remain in full force and effect.

Signed,sealed and delivered in thepresence of

FORMC

BONDIN RESPECT OF AN OCCASIONAL LICENCE

[reg.4.]

Knowall men by these presents that we____________________areheldand firmly bound unto the State in the sum of one hundred naira of good andlawful money of Nigeria to be paid to the Accountant-General of Lagos State,for which payment well and truly to be made we bind ourselves and each of usjointly and severally, our heirs, executors and administrators, firmly by thesepresents:

Sealedwith our seals this ___________day of_____________, 20______________

Whereasthe above bounden________________has appliedforalicence under the Sales by Auction Lawtoauthorisehim to carry on the business of an auctioneerinNigeriaonthe ________ day of_________, 20_________, only, and the said applicationhas been approved, and the above bounden havealso been approved as thesureties of the said_______________________

Nowthe condition of this obligation is such that if the above-named____________________do and shall in all things conform to all and every the provisions of the saidSales by Auction Law, then this obligation shall be void, otherwise shall beand remain in full force and effect.

Signed,sealed and delivered in __________________ thepresence of

SUBSIDIARYLEGISLATION:

SALESBY AUCTION REGULATIONS

LAWS OF LAGOS STATE

LAWS OF THE FEDERAL REPUBLIC OF NIGERIA