A man recently complained to me about auctioneers not showing their clerking sheets to sellers. He claimed that the auctioneers would not reveal this information because they were buying for their own accounts many of the goods they sold for these sellers.

The purpose was to resell these goods in future auctions for a profit. The fellow asked me to comment on this issue.

I start by stating that I have no information and reason to believe that this is a widespread practice, as opposed to a sporadic and isolated occurrence. I certainly hope that is correct, because the law requires auctioneers to share clerking sheets with their respective sellers for whom they sell property. A closer review of these sheets, their purpose, and use will add important insight.

Clerking “sheets” refer to the old-style paper forms that have been used by auctioneers through the ages to record the particulars of each sale they make during an auction. While many continue to use the paper forms, quite a few auctioneers have switched to electronic entries that are run by auction-specific software on computers.

Whether on a paper form or an electronic screen, an entry is made by the auctioneer’s clerk for each item or lot sold in an auction.

This entry contains four primary bits of information: (a) the identity of the seller, (b) the identity of the buyer (usually by a registered bidder number), (c) a brief description of the item or the lot sold, and (d) the high-bid amount (i.e., the “hammer price” for which the auctioneer knocked the item or lot down to the bidder who then became the buyer).

Where a paper form is used, the clerk logs the sales on the form. Once the sheet is completely filled in, a runner will quickly take it to the cashier’s station so the sales can be separated and recorded by buyer.

In this manner, each buyer’s purchases are listed so the cashier can make a quick determination of the amount of money to collect from the buyer at the time of checkout.

Some sophisticated computer programs utilize wireless transmission. The clerk enters the information into a satellite computer that is usually located adjacent to the auctioneer’s position.

This computer transmits the data via a wireless router system to a second computer located at the cashier’s station.

This allows the records in these two computers to be synchronized so that each sale made is logged by the clerk and simultaneously updated in the cashier’s records.

This process greatly automates and expedites the clerking and cashiering functions for the benefit of both record keepers.

The information gathered by the clerk is essential to the smooth operation of an auction.

It is also a critical management tool for the auctioneer. The data is a register of all sales made and serves as an invaluable check and balance for the seller to determine what the seller is due from the auction.

Consequently, it is imperative that the information recorded be both accurate and complete.

This explains the eye for detail and unflinching focus that a first-rate clerk must possess and maintain throughout an auction to ensure that the sale entries are compiled correctly.

Once the clerk’s data is captured and properly sorted, the auctioneer has a complete record of everything that each seller sold in the auction, including a description of every item or lot sold, the identity of the buyer, and the related hammer price.

The auctioneer also has a comparable record for each buyer and purchase, including a description of every item or lot bought, the identity of the seller, and the related hammer price.

Using this information, the auctioneer can calculate the amount of gross sales made in an auction, plus how much the auctioneer earned and is entitled to be paid in selling commission.

Clerking sheets form the basis from which buyers are charged for their purchases made, and serve the auctioneer in preparing the post-auction, settlement statements for the sellers that sold property in the auction.

The man who contacted me is alleging that auctioneers refuse to share these sheets with their sellers in order to cover up self-dealing purchases that the auctioneers make. I am sure this happens at times in some quarters, but I doubt that it happens frequently.

When it does occur, the cover-up is a violation of the auctioneer’s agency and fiduciary duties. In many jurisdictions, it is also a violation of administrative law.

Sellers are entitled to receive copies of the clerking records of the sales that auctioneers make for them in order to confirm what was sold, which buyer purchased what, and the amounts of the respective sales. Sharing this information with sellers is not a choice for auctioneers to make. It is a requirement for them to satisfy and it should be done without resistance or reluctance.

An auctioneer asked to produce these records should feel neither offended nor threatened, so long as the information was competently prepared. The service that an agent (auctioneer) provides to a principal (seller) must be transparent.

Sharing clerking records ensures that both parties will fully understand the details of the sales that were made in an auction. This is part of what a professional auctioneer does to properly serve a seller.

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Steve Proffitt may write to him in care of this publication.