Sandy Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Sandy Auctioneer bond.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All auctioneers, auction houses, and transient auction houses operating in Sandy, Utah
- Purpose: To ensure the public is compensated for damages if the auctioneer or auction house fails to comply with licensing law
- Who Regulates Auctioneers in Sandy: The Sandy Business Licensing Office
Sandy City Code 15-6-4 and 15-6-15 require all auctioneers and auction houses operating in the city to obtain a license from the Business Licensing Office. The Sandy 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 and auction houses must purchase and maintain a surety bond to be eligible for licensure.
What is the Purpose of the Sandy Auctioneer Bond?
Sandy requires auctioneers and auction houses 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 Sandy City 15-16-12 and 15-6-19. Specifically, the bond protects the public if the auctioneer commits fraud, fails to accurately represent all goods up for sale, or does not pay all required fines and fees. In short, the bond is a type of insurance that protects the public if the auctioneer or auction house violates the terms of their license.
How Can an Insurance Agent Obtain a Sandy Auctioneer Surety Bond?
BondExchange makes obtaining a Sandy 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 Sandy Auctioneer Bond?
No, a credit check is not required for the Sandy 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 Sandy Auctioneer Bond Cost?
The Sandy Auctioneer Bond costs either $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Sandy requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Sandy Code 15-6-2, an auctioneer is any person who publicly sells property to the highest bidder at auction. Likewise, an auction house is a permanent place of business where personal property is sold at auction, and a transient auction house is any place where property is temporarily sold at auction.
Exemptions to these requirements include:
- Sales of real property at auction
- Charitable or nonprofit organizations
- Executors and administrators of an estate
- Court-appointed officials acting within the scope of their authority
- Persons liquidating assets involved in a bankruptcy or estate sale
- Sales restricted to wholesalers or retailers purchasing for resale
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 Sandy?
Auctioneers in Sandy must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – Auctioneer and Auction House Licenses in Sandy expire on December 31 of each year and must be renewed before the expiration date. Transient Auction House Licenses are valid from one week to 6 months depending on the auctioneer’s preference.
Step 1 – Contact the Business Licensing Office
Auctioneers should contact the Business Licensing Office before applying for a license. The office will walk the auctioneer through the application process and provide them with all required application forms.
Step 2 – Obtain all Required Tax Numbers
Auctioneers and auction houses must obtain certain tax numbers prior to applying for licensure and can do so through Utah’s One-Stop Business Registration website.
Step 3 – Purchase a Surety Bond
Auctioneers and auction houses must purchase and maintain a $10,000 surety bond.
Step 4 – Complete the Application
All Sandy Business License applications should be submitted to the following address:
Sandy City Business Licensing
10000 Centennial Pkwy
Sandy, UT 84070
Auctioneers must complete the application in its entirety, and submit the following items:
- $10,000 surety bond
- List of five most recent auctioneer licenses previously held
- Two references from property owners of Salt Lake County
- Statement indicating how long the license is desired (up to one year)
Auctioneers will be informed of their required licensing fee after submitting their application. After receiving the application, the Business Licensing Office will submit it to the Chief of Police for review. Transient Auction Houses must submit a separate application which can be found here.
How do Sandy Auctioneers Renew Their License?
Auctioneers and auction houses can renew their licenses online here. Auctioneer and Auction House Licenses in Sandy expire on December 31 of each year and must be renewed before the expiration date. Transient Auction House Licenses are valid from one week to 6 months depending on the auctioneer’s preference.
What are the Insurance Requirements for Sandy Auctioneers?
Sandy does not require auctioneers or auction houses to purchase any form of liability insurance as a prerequisite to obtaining a business license. Auctioneers/houses must purchase and maintain a $10,000 surety bond.
How Do Sandy Auctioneers File Their Bonds?
Auctioneers should mail or deliver their completed bond forms, including the power of attorney, to the following address:
Sandy City Business Licensing
10000 Centennial Pkwy
Sandy, UT 84070
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
- Date the bond goes into effect
- Date the bond is signed
- Bond amount
What Can Sandy Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers and auction houses in Sandy 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
- Accurately represent all goods up for sale
- Pay all required taxes, fines, and fees
What Other Insurance Products Can Agents Offer Auctioneers in Sandy?
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 Sandy Auctioneer Customers?
Sandy conveniently provides a public database of active auctioneers and auction houses operating in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.