Auctioneer Bond Overview
The auctioneer bond, also known as an auction bond, is a surety bond required of auctioneers in most states. The bond is required of those who are in the business of auctioning real estate, property, and other personal assets.
Typically, when getting licensed, auctioneers or auction house operators will be required to post a bond to their local State Board of Auctioneers, Auctioneers Commission, or another agency responsible for their licensing and regulation.
The auctioneer surety bond guarantees that licensed and bonded auctioneers will comply with state regulations for auctioneers and conduct business honestly and lawfully. The bond is an agreement between the auctioneer (the bond principal), the state agency and the public (the bond obligees), and the surety bond company which issues and backs the bond, vouching for an auctioneer’s honesty. The bond is like an extension of credit.
In the case of an auctioneer engaging in fraud or other unethical activities at the expense of the state or the public, a claim can be made against their auction bond. The surety bond company then investigates the claim. If it’s deemed valid, the bond obligees receive compensation for the losses they have incurred, up to the full penal sum of the bond. In return, the auctioneer must then compensate the surety for its backing.
See the sections below to find out more about the cost of auction bonds and how you can get one.
Auctioneer Bond Cost
Your auction bond’s cost depends on the full amount of the bond and is a percentage thereof. The amount of your bond-- that is, the maximum amount of compensation it guarantees-- is determined by each state individually.
Amounts can range from $50,000 and $25,000 bonds in Ohio, and $20,000 in California, to $10,000 in Alabama, Massachusetts, Rhode Island, Virginia and others. Some states, like New York and Pennsylvania, have even lower auctioneer bond amount requirements: between $2,000 and $5,000.
Depending on the amount of your bond, the cost of obtaining it varies. When determining your rate, surety bond companies will typically take into account a variety of factors, with personal credit score being the most important one. Sureties also consider your:
- Personal financial statements
- Business financial statements
- Assets and liquidity
- Work record and experience
Those applicants who have a high credit score are usually offered rates that vary between 0.75% - 2.5% of the full amount of their bond.
Getting your bond from a surety bond agency like Bryant Surety Bonds also positively influences your rate. We work with the best sureties in the country, all of which are A-rated and T-listed. Thanks to their high status and professionalism, they are able to provide us with some of the lowest rates on all auctioneer bonds.
If you’re ready to get your auction bond, fill in the surety bond application form and leave the rest up to us. Don’t hesitate to call us at 866.450.3412 if you have further questions regarding surety bonds, or need help with your application.
Bad Credit Bonds
Obtaining a surety bond is not limited to those with a good credit score. Applicants with lower credit can just as easily obtain a bond, though at a slightly higher rate, due to the risk involved.
Our Bad Credit Program provides such applicants with access to bonds by the same expert companies, at rates between 2.5% and 10% of the total bond amount. This way, everyone can get bonded. And by improving your credit score over time, you can get better rates on the bonds you apply for in the future.
Auctioneer License: Application and Renewal
Requirements for becoming an auctioneer vary from state to state. For a full list of the requirements, contact your local State Board of Auctioneers, Auctioneers Commission or Licensing Bureau and inquire there. When applying for a license, you may be asked to fulfill some of the following criteria:
- Submit a complete auctioneer application form
- Pass an exam
- Provide photo identification
- Provide copy of criminal background check and full set of fingerprints
- Obtain and post an auctioneer bond
- Pay the relevant licensing and application fee
How to Get Your Auctioneer Bond
To get your auction bond, apply here by filling in our online surety bond application. Processing times for these bonds are short and we will shortly contact you with your free bond quote.
You can also call us at 866.450.3412 to receive more information regarding auctioneer bonds and the specific bonding requirements in each state. We look forward to hearing from you!
