Auctioneer Bond Guide
Most states require a surety bond before individuals can become licensed auctioneers. Continue reading to learn more about auctioneer bonds and how to get one.
Quick Bond Facts
- Purpose: To ensure that auctioneers act ethically and follow state laws and regulations
- Who Needs It: Auctioneers and registered auction houses in most states
- Regulating Body: State or local government licensing departments
- Required Amount: $2,000–$50,000, depending on state legislature
- Premium Rates: Typically 1–5% of the total bond amount, based on personal credit
What Is an Auctioneer Surety Bond?
Auctioneer bonds protect consumers against fraudulent substitution of goods and misrepresentation of auction items by auctioneers. They are required by state governments to ensure that auctioneers comply with appropriate business practices.
SuretyBonds.com is licensed to issue auction bonds in all 50 states. As the industry’s top surety provider, we offer the best service, fastest delivery and most affordable prices.
Auction Bond Requirements by State
Auctioneer bond costs, amounts and requirements are established on a state level. Select your state below for more information about auctioneer bonds in your area or call 1 (800) 308-4358 to speak with a surety expert.
SuretyBonds.com also issues U.S. bankruptcy court auctioneer bonds.
Learn More About Surety Bonds for Auctioneers
Surety bonds are legally binding contracts that involve three parties:
- Obligee: The state department that requires the bond
- Principal: The auctioneer that purchases the bond
- Surety: The provider that issues the bond and backs the principal
The purpose of an auction bond is to ensure that the auctioneer complies with all relevant laws and regulations. If an auctioneer fails to uphold the bond’s terms, harmed parties can file a claim and the surety will ensure the obligations are fulfilled or reimburse harmed parties.
How Much Does an Auctioneer Bond Cost?
Depending on your credit score, you can expect to pay a rate of 1–5% of the bond amount for an auctioneer bond. The surety may also consider your financial statement and industry experience to determine your exact cost.
The auction bond amount is set by the state and can fall anywhere between $2,000 and $50,000. For example, Louisiana requires auctioneers to file annual $10,000 bonds while California law requires $20,000 bonds issued for two-year terms.
Getting an Auctioneer Bond with Bad Credit
Don’t let your financial situation keep you from getting the money transmitter bond you need. Our Bad Credit Bonding Program helps us approve 99% of applicants. Apply now to see if you qualify.
How Fast Can I Get My Auction Bond?
SuretyBonds.com gives every applicant a free quote within one business day. Your bond will be issued as soon as your payment is received. You’ll then receive a copy of your bond via email, and your original bond form will be shipped to you as well.
