What is a Pennsylvania Auctioneer Bond?

Pennsylvania Auctioneer BondThe Pennsylvania Department of State requires auctioneers, apprentice auctioneers, auction houses, and auctioneer companies obtain a professional license and a surety bond before being able to conduct business in the state.

The Auctioneer Bond guarantees the performance of all auction duties upon goods, wares, property or merchandise which may be sold by an auctioneer.

The bond also financially protects the public from misrepresentation, bad faith, incompetence, and fraudulence committed by auctioneers.

An auctioneer means any person who sells or offers to sell a property at an auction. He or she:

  • Engages in or offers the calling for and recognition of bids at auction.
  • Engages in or offers any of the activities of an auction company.
  • Performs, or offers to perform, any of the functions or activities requiring licensure under Section 3(a)(1).
  • Holds himself or herself out as engaged in the business of selling a property at auction.

 

What are the bond conditions?

  • The Surety must be authorized to conduct business in the Commonwealth of Pennsylvania.
  • The Obligee is the Pennsylvania State Board of Auctioneer Examiners.
  • The Principal must act in accordance with all provisions under the Auctioneer and Auction License Act of 1983, No. 85.
  • No licensee or registrant must engage in the businesses regulated under the aforementioned act without an active bond. The bond will be for the use of Pennsylvania and for any person or persons who may have a cause of action against a licensee or registrant under this act.
  • If any person is aggrieved by the misconduct of the Principal, the Principal and Surety are responsible for payment to any validated claims against the bond.
  • The aggregate liability of the Surety will not exceed the bond amount.

 

What is the bond amount?

The bond amount is $5,000.

The cost of the bond will be determined based on the details of your manufactured home, the number of manufactured homes, and your credit score. The cost is a percentage of the bond amount, usually 1%-5%.

 

How can I obtain an Auctioneer Bond?

Just follow these steps:

Contact us

You may contact us by filling out a form HERE, or by giving us a call at 800-333-7800. Our surety bond experts will send you the application that you need for this type of surety bond.

Submit your application

Along with a completed surety bond application form, you will also be asked to submit necessary documents needed for the underwriting process. An important document that a surety underwriter will look into is your credit score. This will be carefully evaluated by our underwriter. We will inform you if you need to submit additional documents for your application, such as a copy of the BOND FORM.

The bond form can be obtained from the Pennsylvania State Board of Auctioneer Examiners.

To avoid any delays, please collect all the required documents before submission.

Issuance & Bond Premium

Once your surety bond has been approved, you will be notified of your bond premium. After the premium has been paid, your surety bond will be issued and sent to you immediately!

Share this content!