Ordinance of the High Court on the Procedure for Voluntary Public Auctions

1. Voluntary public auctions, with the exception of those pursuant to § 223 EG zum ZGB, are to be conducted

a. under the direction and responsibility of the municipal bailiff,

b. under the direction and responsibility of a private individual (auctioneer), with the participation of the municipal bailiff.

2. The municipal bailiff may delegate his duties to his employees.

Municipal Bailiff and Auctioneer

II. Conduct by Municipal Bailiff

1 The conduct of voluntary public auctions is incumbent upon

a. in the case of movable property auctions, generally the Municipal Bailiff

at the place of the auction. Reserved is the case where a common auction hall exists for several official districts,

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235.15 Procedure for Voluntary Public Auctions – V

b. in the case of real estate auctions, the Municipal Bailiff at the location

of the situated property. If a property is located in different official districts, the Municipal Bailiff of each of these districts is competent. If several properties of the same owner to be auctioned jointly are located in different official districts, the client may optionally instruct a Municipal Bailiff from these districts with the auction of all properties.

1 The execution of a voluntary public auction may not be refused, but can be made dependent on the payment of a reasonable advance for costs.

2 The acceptance of items whose auction is unreasonable may be refused.

1 The municipal president auctions the items based on the information received.

2 However, he may require a signed declaration of authority to dispose and proof that the items to be auctioned are not subject to official seizure.

3 He is authorized to demand proof of the accuracy of information regarding the origin of artworks and antiques from specific collections or ownership.

1. The client must submit to the Municipal Executive Officer a list of the items to be auctioned, which can serve as a basis for the auction record. If deemed appropriate, the list may also be prepared only when the auction record is being taken.

2. For the auction of real estate, the client must submit a complete land register extract and a cadastral plan, which serve as the basis for the auction.

1 Public voluntary auctions of movable property must be announced at least three days, and those of real estate at least 20 days, before their execution in a suitable publication organ. The place and time of the auction must be precisely stated. For movable property, the item to be auctioned must be described at least by its type.

2 Real estate must be precisely described. It must be indicated when the auction conditions can be inspected at the office and when the property can be viewed.

3 At auctions of movable property, the public must generally be given the opportunity to inspect the item to be auctioned before the auction.

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235.15

1 The auction conditions shall be established by the municipal bailiff. Auction

The principal's suggestions must be considered within the legally permissible framework. conditions

2 The auction conditions should particularly specify the payment conditions, the arrangements for the handover of the auctioned property, and any eventual exclusion of warranty. For real estate to be auctioned, they should also specify the date of possession, outstanding mortgage debts to be assumed, rental agreements, insurance contracts, fuel reserves, securing of land taxes, etc.

3 Furthermore, the auction conditions should indicate that the auction is based on the information provided by the principal.

4 If real estate is auctioned, a land register extract and cadastral plan must be appended to the auction conditions.

## Disclosure of the Terms and Auction Conditions

The terms and conditions of the auction must be read aloud after the opening of the bidding, unless they are easily accessible and clearly visible to everyone, posted in the auction premises, or available in sufficient quantities for self-service.

1 Bids may be submitted orally or in writing.

2 Offers are only permissible in fixed amounts and unconditionally. The highest written offer is considered the minimum bid.

3 Officials, employees, and auxiliary staff of the office are not permitted to bid either for themselves or for third parties.

4 Offers from persons who are obviously not of sound judgment may not be accepted.

Offers

1. The Bidder is bound by their offer in accordance with the auction terms. Unless otherwise stipulated by these terms, they are released if a higher offer is made or their offer is not accepted immediately after the customary call (Art. 231 CO).

2. The auction terms can provide for the bidder's commitment to their offer beyond the auction negotiation only for real estate, if the sale or acquisition requires the approval of an authority; in all other cases, such commitments must be time-limited.

1 The items for sale shall be auctioned individually, subject to any call

deviating instructions from the client. If it proves expedient, several

items may be called together.

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2 If minimum bids are set, these must be announced before the first

call.

3 Each higher bid after the first or second call will result in the call

starting anew.

4 If two or more bids are made simultaneously and none of the

bidders wishes to withdraw or bid more, the call of the next lowest

bid shall be repeated.

Award

Disputes

Minutes

Disciplinary

authority

of the Municipal

President

1 The knockdown will be granted to the highest bidder after the third and final call, subject to differing bidding conditions.

2 If several persons bid jointly and declare nothing to the contrary, the knockdown will be granted to them as co-owners in equal shares.

3 The principal is free to expressly refuse his consent to an offer that appears unacceptable or insufficient to him, before the third call. This eliminates the third call and the knockdown. In this case, the bidder is released from their obligation.

In cases of dispute, the Municipal Bailiff (Gemeindeammann) decides whether and to whom an object has been knocked down, or whether a new call-out (Aufruf) must take place. The contestation of the knock-down (Zuschlag) according to Art. 230 OR remains reserved.

1 A bidding protocol must be kept, into which the object of the bid and the successful bid price are to be entered. If the purchase price is not paid immediately or if the transaction involves reportable changes of ownership, the name and address of the successful bidder must also be recorded.

2 If real estate is auctioned, every offer must be recorded with the name and address of the bidder.

3 After the auction concludes, the minute-taker and the auctioneer must sign the bidding protocol. If real estate has been auctioned, the successful bidder must also sign, and their personal details must be recorded.

1 The municipal chief executive ensures good order during

the auction. If necessary, he may enlist the help of the police

organs.

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235.15

2 Any influencing of the auction through sham bids, as well as

through the promise or granting of advantages, such as through

the free distribution of alcoholic beverages, food, and tobacco

products, is prohibited. The municipal chief executive is obliged

to prevent such occurrences. He shall halt the auction if his

directives are not immediately followed.

III. Conduct by Auctioneer

1. **Participation in voluntary public auctions conducted by a private individual (auctions), Municipality-**

**participant**

**mayor**

The participation in voluntary public auctions conducted by a private individual (auctions) falls to the municipality mayor at the place of execution; in the case of real estate auctions, to the municipality mayor at the place where the property is located.

2. Auctions that are accessible only to a limited circle of persons may not be advertised as auctions.

1 The Municipal President may not refuse to participate unless the auctioneer does not guarantee a proper procedure. The latter is particularly to be assumed if the auctioneer has repeatedly violated the provisions of this Ordinance.

2 Participation may be made dependent on the payment of an appropriate advance of costs.

**Title:** Obligation to Cooperate

1 The participation of the municipal bailiff is limited to the scope of the duties assigned to him in this section and by §§ 13 (Disputes) and 15 (Regulatory Authority of the Municipal Bailiff).

2 § 9 para. 3 applies.

Auctioneer

1 The auctioneer is responsible for, in addition to managing the auction, the publication, provision and issuance of the auction property, the calling of bids, the knockdown, the logging, the collection of the auction proceeds, settlement with the principals, and the overall organization.

2 The provisions of §§ 6 (Publication), 9 para. 1, 4 (Bids), 10 (Bidder's Obligation), 11 para. 1, 3, 4 (Calling of Bids) and 12 (Knockdown) also apply to auctions.

3 If the auctioneer does not comply with the provisions of this ordinance and disregards the instructions of the municipal bailiff, the latter shall discontinue the auction.

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Directory

1 The auctioneer must submit to the Municipal Executive Officer a list of the goods to be auctioned, which may be designed as a catalogue. It shall contain

a. Name and address of the responsible auctioneer,

b. The auction conditions,

c. An explicit declaration if the authenticity of the items to be auctioned is not guaranteed,

d. Reference to the Municipal Executive Office as the collaborating authority,

e. Reference that any liability of the collaborating Municipal Executive Officer, the municipality, and the state for acts of the auctioneer is excluded.

2 The auctioneer is liable for the due diligence reasonably expected of him in the preparation of the list.

Auction Conditions

1 The establishment of the bidding conditions is incumbent upon the auctioneer.

2 In real estate auctions, Section 7, Subsections 2 and 4 of these Regulations apply.

3 The bidding conditions must expressly provide if offers and calls below the limit set by the principal are to be permissible and if items can be knocked down or withdrawn without sale, without this being identifiable to the auction participants before the conclusion of the auction.

Bidding Period

9 Auctions must be conducted during regular shop opening hours. Exceptions can only be made with the agreement of the municipal president (Gemeindeammann) and according to the provisions of the Rest Day and Shop Opening Act of 26 June 2000º.

Right of inspection

of the municipal

president (Gemeindeammann)

The Community Mayor is entitled to inspect the origin of the items to be auctioned, particularly the origin of artworks and antiques from specific collections or ownership, as well as price limits, bids, and awards, and to examine the auctioneer's minutes.

Minutes

1 The auctioneer is responsible for keeping the minutes. The minutes must show, in particular, whether and at what price an item offered for sale was sold.

2 In addition, the municipal executive officer (Gemeindeammann) keeps a separate, official auction record, into which the item offered for sale and the knockdown price must be entered.

3 If real estate is auctioned, the municipal executive officer (Gemeindeammann) also records every bid with the name and address of the bidder.

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Procedure for Voluntary Public Auctions – V 235.15

4 After the auction has concluded, the municipal executive officer (Gemeindeammann) must sign their auction record. If a property has been auctioned, the successful bidder must also sign, and their personal details must be recorded.

1. Participants in the auction must, upon inquiry after its conclusion, be provided with information about unsold lots.

2. Only actual sales may be included in publications about auction results.

IV. Fees, Penalties, and Final Provisions

10

1 Violations of the provisions of this Ordinance shall be punished

in accordance with the provisions of the Law concerning Administrative Penalties of October 30, 18665. The threat of punishment for

disobedience in accordance with Art. 292 SCC8 remains reserved.

2 The Municipal President may intervene ex officio.

This Ordinance shall enter into force upon its publication in the Official Gazette. It shall be included in the Collection of Laws.

provision

1 OS 47, 228 and GS II, 292.

2 LS 131.1.

3 LS 211.1.

4 LS 230.

5 LS 312.

6 LS 822.4.

7 SR 220.

8 SR 311.0.

9 Version in accordance with Decision of 3 November 2010 (OS 65, 853; BBl 2010, 2525). In force since 1 January 2011.

10 Repealed by Decision of 22 August 2018 (OS 74, 224; BBl 2018-09-07). In force since 1 May 2019.

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