Overview of California Auctioneer Bond Requirements
Auctioneers are one of the many professions regulated with the help of surety bonds. In this case, the California auctioneer bond ensures that auctioneers comply with all provisions of Title 2.95, Part 4 of Division 3 of the Civil Code.
The purpose of the bond is to prevent unlawful actions and protect the interests of people bidding at auctions. If an auctioneer conducts their business in violation of the law, an affected party can seek recourse thanks to the auctioneer bond. The bonding company which underwrote the bond is obligated to make good on the claim, even if the auctioneer cannot or refuses do so at the moment.
If you want to learn more about auctioneer bonds in the State of California, keep reading. You can also call us at 866.450.3412 if you have any questions or need our assistance.
Cost of California Auctioneer Bonds
The bond’s penal sum is set at $20,000. That means that– in the unfortunate event of a claim– your maximum liability cannot exceed $20,000. However, it’s not the cost that you need to pay when obtaining the bond.
What auctioneers and auction companies pay is a percentage of that amount, called a premium. Premiums for these bonds are paid on a two-year basis, and typically start at around 1% (yearly) for applicants with a high credit score. This translates into as little as $350 for the two-year duration of the bond.
Those with less-than-stellar credit score may see a slightly higher premium. Some surety companies might be willing to consider additional factors, such as your experience and your financial strength.
For more detailed information, visit our surety bond cost guide.
Information on Getting Bonded with Bad Credit
Applicants whose credit score is below 650, those with past due items, and other credit report issues, or even those with no credit history will likely pay a higher premium. However, in most cases there’s no need for cosigners or posting collateral.
Our Bad Credit Program ensures that everyone gets the lowest possible rates despite their credit situation. Оur experts will help you with the application and do all the shopping for you, submitting your application to as many bonding companies as possible.
Get a Free Quote Today!
The first step to applying for a California auctioneer bond is to apply for a free quote. Submitting our online form is easy and takes just a few minutes. The whole application process usually takes no more than two business days, after which you will receive your signed bond form in the mail.
You can also request digital copies via fax or email. We will help you out with all of the paperwork. If you need any assistance, you can always reach us at 866.450.3412.
Understanding Bond Claims
If you are found to be in violation of the relevant provisions of the Civil Code, and have caused damage or loss to a third party, that party is owed compensation. If you promptly pay the claim, no further action will be required and the claim won’t affect you further.
However, if you can’t or refuse to provide compensation to the claimant (provided the claim is valid), the surety will have to step in and provide that compensation. Since indemnity agreements are a standard practice in the surety industry, you will still need to pay the surety back.
It may happen that you are wrongly accused of violating the law. In that case, you can seek the surety’s legal assistance as to the best course of action. If the surety advises it, going to court might be the way to go. You must document your communication with the claimant at every step, to build and defend your case.