North Dakota Auctioneer Bond: A Comprehensive Guide

August 22, 2022

North Dakota Auctioneer Bond

This guide provides information for insurance agents to help their customers obtain a North Dakota Auctioneer bond.

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: Based on the auctioneer’s license type
    • Auctioneer: $5,000
    • Auction Clerk: $10,000
  • Who Needs it: All auctioneers and auction clerks operating in North Dakota
  • Purpose: To ensure the public is compensated for damages if the auctioneer/clerk fails to comply with licensing law
  • Who Regulates Auctioneers in North Dakota: The North Dakota Public Services Commission

Background

North Dakota Century Code 51-05.1-01 requires all auctioneers and auction clerks operating in the state to obtain a license from the Public Services Commission. The state legislature 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/clerks must purchase and maintain a surety bond to be eligible for licensure.

What is the Purpose of the North Dakota Auctioneer Bond?

North Dakota requires auctioneers and auction clerks 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 North Dakota Century Code 51-05.1-01.1. Specifically, the bond protects the public from financial harm in the event the auctioneer does not properly create written contracts for all property sold or commits fraud. In short, the bond is a type of insurance that protects the public if the auctioneer violates the terms of their license.

North Dakota Auctioneer Bond Form

North Dakota Auction Clerk Bond Form

How Can an Insurance Agent Obtain a North Dakota Auctioneer Surety Bond?

BondExchange makes obtaining a North Dakota 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? Enroll 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 North Dakota Auctioneer Bond?

No, a credit check is not required for the North Dakota Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers and auction clerks operating in the state, regardless of their credit history.

How Much Does the North Dakota Auctioneer Bond Cost?

All North Dakota Auctioneer bonds cost just $100 per year.

Who is Required to Purchase the Bond?

North Dakota requires auctioneers and auction clerks to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase North Dakota Century Code 51-05.1-04, an auctioneer is a person that sells property to the highest bidder at an auction. An auction clerk is a person hired to keep and maintain all records, financials, and receipts of an auction sale.

Exemptions to this definition include:

  • An isolated sale of personal property
  • Executors and administrators of an estate
  • Auctions held exclusively over the internet
  • Sale of registered or purebred livestock
  • Sales conducted on the behalf of the federal, state, or any local government, or a court-appointed representative acting within the scope of their authority
  • Federally insured financial institutions

How Do Auctioneers Apply for a License in North Dakota?

Auctioneers/clerks in North Dakota must navigate several steps to secure their licenses. Below are the general guidelines, but applicants should refer to the Public Service Commission’s licensing page for details on the process.

License Period – All North Dakota Auctioneer Licenses expire on December 31 of each year and must be renewed before the expiration date.

Auctioneers

Step 1 – Meet the Experience Requirements

To become a licensed auctioneer in North Dakota, applicants must ensure that they satisfy all of the following criteria:

    • Be at least 18 years old
    • Complete a 60-hour course at an approved auction school or be a licensed auctioneer (in another state) for at least one year prior to submitting the exam

Step 2 – Purchase a Surety Bond

Auctioneers are required to purchase and maintain a $5,000 surety bond.

Step 3 – Complete the Application

All North Dakota Auctioneer License applications should be submitted online here. Auctioneers must complete the application in its entirety, and submit the following items:

    • $50 license fee
    • $5,000 surety bond
    • Two completed reference forms
    • One of the following:
      • Auctioneer school certificate
      • Proof of previous auctioneer license

All first-time applicants are subject to a criminal background check and will be required to pay all costs related to conducting the check.

Auction Clerks

Step 1 – Meet the Experience Requirements

To become a licensed auction clerk in North Dakota, applicants must be at least 18 years old.

Step 2 – Purchase a Surety Bond

Auction clerks are required to purchase and maintain a $10,000 surety bond.

Step 3 – Complete the Application

All North Dakota Auction Clerk License applications should be submitted online here. Auctioneers must complete the application in its entirety, and submit the following items:

All first-time applicants are subject to a criminal background check and will be required to pay all costs related to conducting the check.

How do North Dakota Auctioneers Renew Their Licenses?

Auctioneers and auction clerks should submit their completed renewal applications, including the $50 renewal fee, online here. All North Dakota Auctioneer Licenses expire on December 31 of each year and must be renewed before the expiration date. Renewals submitted after December 31st will be subject to late renewal fees.

What are the Insurance Requirements for Auctioneers in North Dakota?

North Dakota does not require auctioneers/clerks to obtain any form of liability insurance as a prerequisite to obtaining a state license. Auctioneers/clerks must purchase and maintain a surety bond with the following limits:

  • $5,000 bond for auctioneers
  • $10,000 bond for auction clerks

How Do North Dakota Auctioneers File Their Bonds?

Auctioneers/clerks should mail their completed bond forms, including a power of attorney, to the following address:

ND Public Service Commission
600 E. Boulevard, Dept. 408
Bismarck, ND 58505

The bond requires signatures, including notary 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, county, and address of the entity/individual(s) buying the bond
  • Name, county, and address of the surety company
  • Dates the bond goes into effect and expires

What Can North Dakota Auctioneers do to Avoid Claims Made Against Their Bonds?

To avoid claims on their bonds, auctioneers and auction clerks in North Dakota must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:

  • Create properly written contracts for all property sold
  • Do not engage in any acts of fraud

What Other Insurance Products Can Agents Offer Auctioneers in North Dakota?

North Dakota does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a state license. 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 North Dakota Auctioneer Customers?

North Dakota conveniently provides a public database to search for both active auctioneers and auction clerks in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-08-22T14:32:57-04:00