Complaints against SA auction industry drop more than 35%

THE NUMBER of complaints levelled against auction houses in South Africa has dropped by more than one third year-onyear, and 2017’s numbers so far indicate this downward trend is set to continue.

This is according to South African Institute of Auctioneers (SAIA) director Joff van Reenen, who was re-elected as director of compliance at the institute’s 2017 annual general meeting.

Van Reenen is also lead auctioneer and director of The High Street Auction Company, a specialist property auction house represented in Johannesburg, Cape Town and Durban, which annually puts property valued at more than R1 billion under the hammer.

SAIA compliance and discipline panel’s Philip Powell, who sits on the organisation’s board, reported to the 2017 AGM that the number of complaints against accredited auction houses had dropped from 78 in 2015 to 49 last year. Van Reenen says: “Settlements were reached in most cases last year and the average length of time from the initial complaint submission to ruling by the panel was two weeks. Our panel makes every effort to process complaints speedily, because as the industry’s oversight body we have a duty to the members of the public who engage with us to deliver results.

“SAIA member companies must abide by the settlements and/or rulings issued by the panel. If they refuse, they will be subject to hearings and stand to have their SAIA accreditation revoked and their membership suspended.”

Van Reenen says for a company to lose SAIA accreditation is no trifling matter.

Van Reenen says the substantial reduction in the number of public complaints referred to SAIA is gratifying on several levels.

“It shows that on the whole auctioneers in South Africa conduct business ethically and transparently, but it also demonstrates the escalation in public awareness and understanding of the workings of the auction sale process in general.

“Many complaints received by SAIA over the years have been as a result of buyers or sellers not having all the necessary information about specific, but standard aspects of the auction process, then crying foul afterwards.

“Technology and access to internet research is creating a much more educated modern auction client base, but the industry still bears considerable responsibility to ensure that every person with whom they conduct business fully understands the process.”

SAIA chairperson John Cowing advises anyone who intends to conduct business with an auction house to first check its accreditation status.

Cowing’s final word of advice for consumers and corporates looking to buy or sell at auction is to research before jumping in, and work with specialist auction houses for the best results.