If you wish to auction off third-party movable property, real estate, or rights on a commercial basis, you must obtain permission from the competent authority. The permit may be subject to conditions (including retroactively) to the extent necessary to protect the general public, the client, or the bidders.
No permit is required for:
- Sales conducted in accordance with statutory provisions by stockbrokers or by commercial brokers publicly authorized for this purpose,
- Auctions conducted by government agencies or public officials, or
- Auctions in which only persons who intend to purchase goods of the type offered for their business operations are admitted as bidders.
You have a legal right to be granted the requested permit, provided there are no grounds for denial within the meaning of §34b(4)(1) or (2) of the German Trade Regulation Act (GewO) (unreliability or disordered financial circumstances).
The permit may be granted to natural persons and legal entities. In the case of partnerships without separate legal personality (e.g., OHG, KG), a permit is required for each managing partner; this also applies to limited partners, provided they have management authority and are therefore considered business operators. In the case of legal entities (e.g., GmbH, AG), the license is granted to the legal entity. With regard to the licensing requirements, the persons authorized to represent the entity must generally be taken into account, and all such persons must meet the relevant requirements.
The license is personal, meaning you may not transfer a license issued in your name to another person, nor may another person transfer a license issued in their name to you.
where there is consumer use (consumer goods).
In order for you to be granted permission, you must
- and have a stable financial situation.
Once you have submitted your application and all required documents are complete, the responsible agency will review whether you meet all the requirements.
If you meet all the requirements, you will receive the permit.
You may not begin the activity until you have received the permit. At the same time you begin the activity, you must register the business with the authority responsible for business registrations in accordance with § 14 of the German Trade Regulation Act (GewO).
The auctioneer is prohibited from
1. bidding for himself or through another person at his auctions or purchasing auction goods entrusted to him,
2. allowing relatives or employees to bid at his auctions or to purchase auction goods entrusted to him,
3. to bid on behalf of another person at his auctions or to purchase auction goods entrusted to him, unless he has a written bid from the other person,
4. to auction movable items from the range of goods that he sells in his commercial business, unless this is customary,
5. to auction items on which he has a lien or which are among the goods offered for sale in open sales outlets and which are unused or whose intended use is for consumption.
Violations of these prohibitions are punishable as administrative offenses. In addition, such violations may also lead to the revocation of the auctioneer's license if they indicate that the auctioneer is no longer reliable.
Retailers and manufacturers of goods are generally not permitted to auction their goods to the end consumer.
Anyone who auctions off third-party movable property, third-party real estate, or third-party rights without the required permit or violates an enforceable condition is acting unlawfully and may be punished with a fine.
Objection (depending on state law, the objection may be excluded), administrative court action
The permit must be issued before operations begin; therefore, it is necessary to submit the application in a timely manner (several weeks before the intended start of operations).
If you have applied for a license to work as an auctioneer, the license is deemed to have been granted if the authority has not made a decision on your application within three months of receiving the complete documentation (§ 6a(1) GewO).
You must simultaneously notify the authority responsible for business registrations of the start of your activities.
If the documents are complete, the application will be processed promptly.
