Section 3

Execution of Auction

Article 49 The auction master shall announce the auction rules and points for attention before the auction sale takes place.

Article 50 Where there is no reservation price for an object of auction, the auction master shall make it clear before the auction sale.

Where there is a reservation price for an object of auction and the highest price offered by a bidder does not reach the reservation price, the offer shall be non-binding and the auction master shall suspend the auction sale of the said object.

Article 51 When the highest offer is confirmed by the auction master by knocking the gavel or any other way of public confirmation, the auction transaction is concluded.

Article 52 After a transaction is concluded, the vendee and the auctioneer shall execute a written confirmation.

Article 53 When an auction sale is under way, minutes of auction shall be made and signed by the auction master and the recorder, as well as the vendee if a transaction is concluded.

Article 54 The auctioneer shall properly keep the complete set of account books relating to business operation, the auction minutes and any other relevant materials.

The period for maintaining the account books, auction minutes and other relevant materials as specified in the preceding paragraph shall be not less than five years, counting from the date of expiration of the contract for authorization of auction.

Article 55 Where it is necessary to make changes in certificates or licenses or to transfer ownership of property rights, in accordance with law, with regard to the objects of auction, the client and vendee shall go through the formalities with the relevant administrative organ by producing the transaction certificate prepared by the auctioneer and relevant materials.

Section 4

Commission

Article 56 The client and vendee may reach an agreement with the auctioneer on the proportion of commission.

Where a transaction is concluded in the absence of such an agreement, the auctioneer may charge a commission of not more than five percent of the transaction price from the client and the vendee respectively. The proportion of commission to be charged shall be determined according to the principle that it is in inverse proportion to the transaction price.

Where no transaction is concluded, the auctioneer may charge the client the expenses as agreed . In the absence of an agreement, the auctioneer may charge the client a reasonable amount for the expenses of auction.

Article 57 For the auction of articles or goods specified in Article 9 of this Law, where a transaction is concluded, the auctioneer may charge the vendee a commission of not more than five percent of the transaction price . The proportion of commission to be charged shall be determined according to the principle that it is in inverse proportion to the transaction price.

In case no transaction is concluded, the provisions of the third paragraph of Article 56 of this Law shall apply.