What is a California Auctioneer Bond?
A California auctioneer bond is required by the California Secretary of State before an auctioneer or auction company can acquire the licensing required to conduct business.
Like most license and permit bonds, the California auctioneer bond is in place as a layer of enforcement for the laws that protect the general public.
Who Needs an Auctioneer Bond?
An auctioneer or auction company is any individual or entity that accepts bids for goods and declares those goods as sold upon the closing of the auction. In California, auctioneers and auction companies are required to be licensed by the State, and as a part of that licensing, applicants are required to have a $20,000 Auctioneer Bond.
Why Do I Need an Auctioneer Bond?
A California auctioneer/auction company bond ensures that the principal will conduct business in compliance with the regulations surrounding their business (Title 2.95, Part 4 of Division 3 of the Civil Code of the State of California).
If an individual suffers a financial loss due to the violation of those terms and regulations, they can make a claim against the bond. In that case, the principal becomes responsible for reimbursing the surety for all damages paid to the individual who made and won the claim.
How Much Does an Auctioneer Bond Cost?
In California, auctioneers and auction companies are required to maintain a $20,000 auctioneer bond. However, the rates and premiums related to the bond are dependent on several factors, including the applicant’s credit rating.
Get Started Today!
To be a licensed auctioneer or auction company in California, you must first obtain a California auctioneer bond. Don’t delay your application.