Auction Legal Questions

The Fair Trading Act of Alberta requirement is a maximum of  twenty-one days, inclusive of  holidays and weekends. Most reputable auction companies will pay out within five to ten business days. (Payout section 17 (1) )

The Fair Trading Act of Alberta states that an auctioneer/employee of an auction company can bid on an item  if he has use for it.  They cannot bid solely to increase the money of the bid on the item or items overall value at auction. (Employee bidding 9 (1))

The Fair Trading Act of Alberta requires all auction companies to be licensed in the province of Alberta and carry a minimum bond of $25,000 dollars. (Auction Bond ( Security) 5(1), License 121 (1))

The Fair Trading Act of Alberta states it is illegal for the owner or agent of any goods to bid on their own items at auction. (Buy back 10 (1))

The Auctioneers Association recommends to ONLY use licensed and bonded auction companies when seeking online auctions. Today the format of timed online auction is unregulated.

Currently the Auctioneers Association of Alberta is working with the government of Alberta to better standardize and regulate online auctions. The goal of the Association is to have all  timed auctions be required to be bonded and licensed  in the same manner as public auctions are regulated.  

By law if the auction item was offered and represented as lien and encumbrance free then it must be sold to the buyer free of liens and encumbrances. Although, there are rare cases when liens surface after the auction date, the best practice as recommended by the Association  for removing a discovered lien is to work with the auction company to liaison with the lien holders or financial institution to remove newly discovered liens or encumbrances. (Liens 7 (2))


The Auctioneers Association requires that a Charity Auction  use a “qualified auctioneer”  and or a member of the Auctioneers Association of Alberta.

The Privacy Act states that no information regarding name, address, contact details, price etc can be given out unless the buyer or seller consents to sharing their private information.


Contract law of Alberta states that the persons must be competent, of legal age, understand recognized Canadian language formats, the specific dates of the agreement, and all pertinent information or stipulations. The only way a signed contract can be altered or canceled is by agreement of all parties.

The Fair Trading Act of Alberta states that a reserved auction allows consignors to set a price that they are willing to accept for their items. Unreserved auctions require that every item in the auction sale must be sold Unreserved to the highest bidder regardless of final selling price. (Unreserved 11 (1) (2))

Yes, you do! The Fair Trading Act of Alberta states that upon the fall of the hammer or the auctioneer saying “Sold”, a contract has been formed and you are 100% responsible for the item and it’s payment, legally and wholly. (High bidder 12 (a))