Las Vegas Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Las Vegas Auctioneer bond.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $20,000
- Who Needs it: All auction firms operating in Las Vegas, Nevada
- Purpose: To ensure the public is compensated for damages should the auction firm fail to comply with licensing law
- Who Regulates Auctioneers in Las Vegas: The Las Vegas Business Licensing Division
Las Vegas Code of Ordinances 6.14.020 and 6.14.030 requires all auction firms operating in the city to obtain a privileged business license from the Las Vegas Business Licensing Division. The Las Vegas City Council enacted the licensing laws and regulations to ensure that auction firms engage in ethical business practices. To provide financial security for the enforcement of the licensing law, auction firms must purchase and maintain a $10,000 surety bond to be eligible for licensure.
What is the Purpose of the Las Vegas Auctioneer Bond?
Las Vegas requires auction firms to purchase a surety bond as part of the application process to obtain a privileged business license. The bond protects the public from financial harm if the auction firm fails to comply with the regulations set forth in Las Vegas Code of Ordinances 6.14.050. Specifically, the bond protects the public if the auction firm engages in any act of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the auction firm violates the terms of its license.
How Can an Insurance Agent Obtain a Las Vegas Auctioneer Surety Bond?
BondExchange makes obtaining a Las Vegas 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 Las Vegas Auctioneer Bond?
No, a credit check is not required for the Las Vegas Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auction firms operating in the city, regardless of their credit history.
How Much Does the Las Vegas Auctioneer Bond Cost?
The Las Vegas Auctioneer bond costs either $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Las Vegas requires auction firms to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Las Vegas Code of Ordinances 6.14.010, an auction firm is a person who conducts or promotes the sale of property to the highest bidder.
Exemptions to this requirement include:
- Persons liquidating assets involved in a bankruptcy, trust, executors, or administrators
- Court-appointed representatives acting within the scope of their authority
- Auctions of property belonging to the local, state, or federal government
- Unclaimed property sold by common carriers or public warehouses
- Sales of unredeemed goods by licensed pawnbrokers
- Charitable or nonprofit organizations
- Individuals employed by auction firms who call out for bids at an auction
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 Las Vegas?
Auction firms in Las Vegas must navigate several steps to obtain a privileged business license. Below are the general guidelines, but applicants should refer to the application checklist for details on the process.
License Period – All Las Vegas Auction Firm Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Designate a Firm Manager
Auction firms are required to designate a firm manager who is responsible for ensuring the auction firm complies with all applicable laws and rules. The firm manager must satisfy all of the following criteria:
- Be a graduate of a recognized auctioneer school
- Have at least three years of experience as an auction caller
Step 2 – Purchase a Surety Bond
Auction firms must purchase and maintain a $10,000 surety bond.
Step 3 – Gather the Necessary Documents
Auction firms are required to submit several documents with their license application. Depending on what type of business the auction firm is, owners will be required to submit different documentation. A full list of these documents can be found in the application checklist and all applicants must submit:
Step 4 – Schedule an Appointment
All Las Vegas Auction Firm License applications can only be taken by appointment. To make an appointment, applicants should contact the Business Licensing Division by phone at (704) 229-1840. The division will walk the applicant through the application process, answer any questions they may have, and ensure they have submitted all required application forms. Applicants will also be required to pay various fees, such as:
- Initial Processing Fee: $100
- Annual License Fee: $500
- LVMPD Background Check Fee: $150 per person being investigated
- Privilege License Fee: $200 per financial investigation
- Notary Fee: $5 per stamp
How do Las Vegas Auctioneers Renew Their Licenses?
To renew their license, auction firms must pay a $500 renewal fee online here. A renewal notice will be sent to the auction firm through mail or e-mail prior to the license expiration date. All Las Vegas Auction Firm Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.
Are Las Vegas Auctioneers Required to Obtain a Permit?
Yes, all auction firms are required to obtain a permit before conducting an auction. Firms must complete the permit application and pay a permit fee of $25 for each day that the auction will be held. Applications must be filed with the Business Licensing Division at least 10 days before the proposed auction date.
What are the Insurance Requirements for Auctioneers in Las Vegas?
Las Vegas does not require auction firms to purchase any form of liability insurance as a prerequisite to obtaining a business license. Auction firms must purchase and maintain a $10,000 surety bond.
How Do Las Vegas Auctioneers File Their Bonds?
Auction firms should mail their completed bond forms, including the power of attorney, to the Las Vegas City Hall at the following address:
495 South Main Street, 6th Floor
Las Vegas, NV 89101
The bond requires signatures from both the surety company that issues the bond and the applicant. 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
- Name of the obligee and the license type applied for
- Bond amount
- Date the bond is signed
What Can Las Vegas Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auction firms in Las Vegas 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
- Adhere to all consumer contracts
- Accurately represent all goods up for sale
What Other Insurance Products Can Agents Offer Auctioneers in Las Vegas?
Las Vegas does not require auction firms to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable auction firms will obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability 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 Las Vegas Auctioneer Customers?
Las Vegas conveniently provides a public database to search for active auction firms in the city. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.