New NY State Auction Laws

The June 2009 issue of Maine Antique Digest is reporting NY State lawmaker Richard L. Brodsky is proposing changes to NY Law that effects the way many NY auctioneers may sell in the state. This is of course important to appraisers, dealers and collectors as many of the major auction houses sell from New York City, including Sotheby's and Christies. Many of which set the market for prices. The MAD site does not yet have a link up for the article, so I went directly to NY Assemblyman Brodsky's site. Info on the bill (A01730A or in the NY Senate #4313) can be read by clicking HERE.

Brodsky's website states New York State law does not currently address auction requirements. The world's major auction houses are located in New York State and are an important source of economic activity and tourism. Thus, it is important that State law provide protections for all parties to auctions. This bill for the first time codifies and enhances, in State law, the safeguards and protections applicable in the City of New York. This legislation is the product of in-depth study of the issues, and has been developed with in put from auction houses, regulators, art dealers and others interested in ensuring that New York State remains the world's premier auction center.

Many of the propose items are common sense and are already being done. Many are not. I specifically like the first item, where the auctioneer will be held responsible for the truth of statements contained in any catalog. Many of the proposed requirements bring more transparency to the auction process, and the MAD article states both Christie's and Sotheby's worked closely with Assemblyman Brodsky to develop the bill and both support the changes.

The main changes to the proposed law include:

* The Auctioneer will be held responsible for the truth of statements
contained in any catalogue etc.

* The consignor must warrant that he or she has complete and lawful
right, title, and interest in property being auctioned

* It must be disclosed if an auctioneer or auction house has certain
financial interests in an article being auctioned

* It must be disclosed if a consignor is to receive a rebate
commission or when he or she will be allowed to bid upon and buy back
their own article

* If there is a "reserve price" it must be disclosed that the item/lot
is being sold subject to reserve

* If there is no reserve price there shall not be any indication given
that the item/lot is being sold at reserve

* It must be disclosed if an auctioneer extends a loan to a purchaser

* Detailed information must be provided about any jewelry being sold

* The auctioneer shall issue an invoice to each purchaser with
specific information

* Each auction sale must be advertised at least once in the seven days
preceding the auction

* Prospective purchasers must be allowed to inspect articles for sale

* Checks must be sent to anyone entitled to proceeds of a sale within
14 days

* Except to implement the reserve price no auctioneer, consignor etc.
shall make a bid unless their status as someone with inside
information has been disclosed

* Whenever an estimated value of an item is posted a description of
such estimate must also be provided

* Any advertisement indicating an auction for a business' liquidation
must state the name of that business

* If the reserve price is not bid, the auctioneer may withdraw a lot
from sale


* The auctioneer may open bidding on any lot by placing a bid on
behalf of the seller

* After the reserve price has been reached an auctioneer may not bid
on behalf of the consignor

* The reserve price shall not exceed the minimum estimated value of
the lot

* An auctioneer may not offer more than one article for sale at any
time unless combining of articles/lots is indicated prior to the
initial bid

* An auctioneer may not represent a manufacturer's or owner's
guarantee unless such guarantee accompanies the article

* An auctioneer may not offer an article contained in a carton or
package unless it is announced that the bidder can reject the item
upon opening such package.