Baltimore Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Baltimore Auctioneer bond.
This page focuses exclusively on the bonding and license requirements for auctioneers operating in the city of Baltimore. For information on the bonding and licensing requirements for auctioneers in Baltimore County, click here.
At a Glance:
- Lowest Cost: $125 per year or $13 per month
- Bond Amount: $25,000
- Who Needs it: All auctioneers operating in the city of Baltimore, Maryland
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Baltimore: The Baltimore Department of Finance
Baltimore City Code Article 2 Statute 1-3 requires all auctioneers operating in the city to obtain a license from the Department of Finance. The Baltimore City Council enacted the licensing laws and regulations to ensure that auctioneers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, auctioneers must purchase and maintain a $25,000 surety bond to be eligible for licensure.
Additionally, Baltimore City Code Article 2 Statute 1-4 dictates that there may not be more than 50 auctioneers holding a city license at any given time.
What is the Purpose of the Baltimore Auctioneer Bond?
Baltimore requires auctioneers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the auctioneer fails to comply with the regulations set forth in Baltimore City Code Article 2 Statute 1-8. Specifically, the bond protects the public if the auctioneer commits fraud or does not maintain an accurate record of all transactions. In short, the bond is a type of insurance that protects the public if the auctioneer violates the terms of their license.
How Can an Insurance Agent Obtain a Baltimore Auctioneer Surety Bond?
BondExchange makes obtaining a Baltimore Auctioneer surety bond easy. Simply login to your account and use our keyword search to find the “Auctioneer” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Baltimore Auctioneer Bond?
No, a credit check is not required for the Baltimore Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers operating in the city, regardless of their credit history.
How Much Does the Baltimore Auctioneer Bond Cost?
The Baltimore Auctioneer bond costs either $125 per year or $13 per month.
Who is Required to Purchase the Baltimore Auctioneer Bond?
Baltimore requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Baltimore City Code Article 2 Statute 1-3, any person who sells property to the highest bidder is required to be licensed as an auctioneer.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Auctioneers Apply for a License in Baltimore?
Auctioneers in Baltimore must navigate several steps to secure their licenses. Below are the general guidelines, but applicants should contact the Department of Finance for details on the process.
License Period – All Baltimore Auctioneer Licenses expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Meet the Requirements
To qualify for an auctioneer license, auctioneers must ensure they satisfy all of the following criteria:
- Be a high school graduate or its equivalent
- Have either:
- Served as an apprentice to a licensed auctioneer for one year
- Gained two years of practical experience auctioning goods or real estate
- Graduated from an accredited auctioneer school
- Be a Maryland resident for at least two years before applying for licensure
- Have not been convicted of forgery, fraud, embezzlement, or other similar offenses within the past 5 years
Step 2 – Purchase a Surety Bond
Auctioneers must purchase and maintain a $25,000 surety bond.
Step 3 – Complete the Application
Auctioneers should submit their applications to the following address:
200 Holiday Street, 1st Floor, Room 3
Baltimore, Maryland 21202
Applicants must complete the application in its entirety, and submit the following items:
- $1,600 license fee
- Surety bond
- Criminal conviction history
- Proof of graduation from an accredited auctioneering school (if applicable)
- Three statements made under oath vouching for the auctioneer’s credibility
How do Baltimore Auctioneers Renew Their License?
To renew their license, auctioneers should contact the city’s Department of Finance. The department will walk the auctioneer through the renewal process, provide them with all required forms, and answer any questions they may have. All Baltimore Auctioneer Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Baltimore Auctioneers?
Baltimore does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining an auctioneer license. However, auctioneers with employees are required to purchase workers’ compensation insurance. Auctioneers must purchase and maintain a $25,000 surety bond.
How Do Baltimore Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the following address:
200 Holiday Street, 1st Floor, Room 3
Baltimore, Maryland 21202
The bond requires signatures, including witness signatures, from both the surety company that issues the bond and the auctioneer. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount and type of license obtained as well as its purpose
- Dates the bond is signed
- Date the bond expires
What Can Baltimore Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Baltimore must follow all license regulations in the city, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Maintain an accurate record of all transactions
- Provide all goods which have been paid for
What Other Insurance Products Can Agents Offer Auctioneers in Baltimore?
Most reputable auctioneers will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Baltimore Auctioneer Customers?
Baltimore unfortunately does not provide a public database of active auctioneers. We suggest contacting the City Clerk’s Office to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.