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The Practice of Removal and Sale of Goods
Practice of removal and sale of goods
Overview
The practice of removal and sale of goods will be summarised in the following chapter by way of paragraph headings.
Learning outcomes
By the end of this chapter you will be able to:
· describe the process for the removal of controlled goods
· describe the process for the sale of controlled goods
· describe duty of care when removing and selling controlled goods
· identify the documentation that must be completed when removing and selling controlled goods
· state the Enforcement Agent’s responsibilities for making or obtaining a valuation of controlled goods
· explain the methods of selling removed controlled goods under current legislation
· explain the responsibilities for selling removed controlled goods under current legislation
· describe the implications of the sale of controlled goods on those involved, including:
· debtor
· purchaser
· enforcement agent
· auctioneer
Process for the removal of controlled goods
Notice of intention to re-enter premises.
If a debtor breaks the terms of a controlled goods agreement, the enforcement agent can return to remove goods listed in the agreement. Before this action can commence the debtor must first be served a notice called a notice of intention to re-enter premises. This is to be used where the enforcement agent has previously had a signed control goods agreement and the debtor has failed to pay. 2 CLEAR DAYS must be given from this notice being delivered. The notice can be sent;
27.—(1) Notice of the enforcement agent’s intention to re-enter premises must be given—
a. by fax or other means of electronic communication;
b. by delivery by hand through the letter box of the place, or one of the places, where the debtor usually lives or carries on a trade or business;
c. where there is no letterbox, by affixing the notice at or in a place that it is likely to come to the attention of the debtor;
d. where the debtor is an individual, to the debtor personally; or
e. where the debtor is not an individual (but is, for example, a company, corporation or partnership), by delivering the notice to—
I. the place, or one of the places, where the debtor carries on a trade or business; or
II. the registered office of the company or partnership.
(2) The notice must be given by the enforcement agent.
Notice that Goods have Been Removed for Storage or Sale.
The enforcement agent must use a form called a Notice that Goods have been Removed for Storage or Sale when any goods are removed, It also tell the debtor what they can do to get their goods back. This notice needs to be sent to the enforcement agent’s office immediately after the removal takes place. The enforcement agent must inform the relevant office dealing with the removal as soon as possible. Valuations must be given with all entries where possible. Valuations should be obtained from the auctioneer if the agent feels that they are unable to value an item (specialist nature). You must try to obtain the debtors email address.
Process for the Sale of Controlled Goods.
37.—(1) Subject to paragraph (2), the minimum period before sale required by paragraph 39 of
Schedule 12 is 7 clear days from removing controlled goods for sale.
(2) Sale may take place on the day after removing controlled goods for sale where, if the sale
were to take place after the expiry of the period of time referred to in paragraph (1), the goods would
become unsalable, or their sale value would be extinguished or substantially reduced due to the
nature or any characteristic of those goods.
Notice of Sale
A notice of sale is essential before sale can proceed and must give the debtor an opportunity to make payment to prevent the sale going ahead. The notice can be sent to the debtor in writing by post or hand delivery to the debtor’s home or business, by fax or email, by fixing the notice prominently to the debtor’s premises if they don't have a letterbox, or by being given to the debtor in person.
Minimum period of notice of sale
38.—(1) Subject to paragraph (2), the minimum period of notice of the date, time and place of sale required by paragraph 40 of Schedule 12 is 7 clear days before the sale of the goods.
(2) Notice may be given on the day before the sale of the goods where, if the sale were to take place after the expiry of the period of time referred to in paragraph (1), the goods would become unsalable, or their sale value would be extinguished or substantially reduced due to the nature or any characteristic of those goods.
The Notice of Sale must be re-issued if the date, time or location of the sale changes, giving the debtor the same period of notice again.
Duty of care when removing and selling controlled goods
Care of controlled goods
The enforcement agent has a duty of care under regulation 34 when he has removed controlled goods in that the goods removed must be kept in a similar condition to that in which the enforcement agent found them immediately prior to taking control of them. Goods must be removed to storage, unless the goods are removed for sale.
Storage of controlled goods
The enforcement must ensure that when goods go to storage that the place of storage;
· must be secure
· that the conditions of storage are such as to prevent damage and deterioration
· does not at any time pose a contravention of any prohibition or restriction imposed by or under any enactment..........................................................................