Vineland Auctioneer Bond: A Comprehensive Guide
October 5, 2022
This guide provides information for insurance agents to help their customers obtain a Vineland Auctioneer bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All auctioneers operating in Vineland, New Jersey
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
- Who Regulates Auctioneers in Vineland: The Vineland Licensing and Inspections Department
Vineland Municipal Code 230-2 requires all auctioneers operating in the city to obtain a license from the Licensing and Inspections Department. The Vineland 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 $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Vineland Auctioneer Bond?
Vineland 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 Vineland Municipal Code 230-5. Specifically, the bond protects the public if the auctioneer commits fraud, misrepresents any goods up for sale, or fails to pay all required fines, fees, and judgements rendered against them. 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 Vineland Auctioneer Surety Bond?
BondExchange makes obtaining a Vineland 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 Vineland Auctioneer Bond?
No, a credit check is not required for the Vineland 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 Vineland Auctioneer Bond Cost?
The Vineland Auctioneer Bond costs just $100 per year.
Who is Required to Purchase the Bond?
Vineland requires auctioneers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Vineland Municipal Code 230-10, any person who sells property to the highest bidder at auction is required to be licensed as an auctioneer.
Exemptions to this requirement include:
- Sales of real property
- Farm produce sold by farmers’ cooperative associations
- Court-appointed officials acting within the scope of their authority
- Persons liquidating assets involved in a bankruptcy
- Executors and administrators of an estate
How Do Auctioneers Apply for a License in Vineland?
Auctioneers in Vineland must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the City Clerk’s Office for details on the process.
License Period – All Vineland Auctioneer Licenses expire on January 1 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Auctioneers must purchase and maintain a $5,000 surety bond.
Step 2 – Go to the City Clerk’s Office
Auctioneers should submit their applications to the Licensing and Inspections Department at the following address:
640 East Wood Street
Vineland, New Jersey 08360
Auctioneers must complete the application in its entirety and pay a license fee of $100 for each day an auction will take place.
How do Vineland Auctioneers Renew Their License?
To renew their license, auctioneers should contact the City Clerk’s Office. All Vineland Auctioneer Licenses expire on January 1 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Vineland Auctioneers?
Vineland does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Auctioneers must purchase and maintain a $5,000 surety bond.
How Do Vineland Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the Licensing and Inspections Department at the following address:
640 East Wood Street
Vineland, New Jersey 08360
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 goes into effect
- Date the bond is signed
What Can Vineland Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Vineland 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
- Do not misrepresent any goods up for sale
- Pay all required fines, fees, and judgements
What Other Insurance Products Can Agents Offer Auctioneers in Vineland?
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 Vineland Auctioneer Customers?
Vineland unfortunately does not provide a public database of active auctioneers in the city. We suggest contacting the Licensing and Inspections Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.