Virginia Auctioneer Bond: A Comprehensive Guide

September 16, 2022

Virginia Auctioneer Bond

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

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $10,000
  • Who Needs it: All auctioneers and auction firms operating in Virginia
  • Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with licensing law
  • Who Regulates Auctioneers in Virginia: The Virginia Auctioneers Board

Background

The Virginia Code 54.1-603 requires all auctioneers and auction firms operating in the state to obtain a license from the Virginia Auctioneers Board. 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, applicants must purchase and maintain a $10,000 surety bond to be eligible for licensure.

What is the Purpose of the Virginia Auctioneer Bond?

Virginia requires auctioneers and auction firms to purchase a surety bond as part of the application process to obtain a business license. The bond ensures the public will receive compensation for financial harm if the auctioneer fails to comply with the regulations set forth in Virginia Code 54.1-603. Specifically, the bond protects the public if the auctioneer commits fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the auctioneer violates the terms of their license.

Virginia Auctioneer Bond Form

Virginia Auctioneer Bond Form

Virginia Auction Firm Bond Form

How Can an Insurance Agent Obtain a Virginia Auctioneer Surety Bond?

BondExchange makes obtaining a Virginia 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 Virginia Auctioneer Bond?

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

How Much Does the Virginia Auctioneer Bond Cost?

The Virginia Auctioneer bond costs just $100 per year.

Who is Required to Purchase the Bond?

Virginia requires auctioneers and auction firms to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Virginia Code 54.1-600, an auctioneer is an individual that sells property to the highest bidder at auction. Likewise, an auction firm is a business entity performing the acts of an auctioneer.

Exemptions to this definition include:

  • Individuals selling their own property
  • Sales made on behalf of the court or government
  • Charitable or non-profit organizations
  • Leaf tobacco sales under former
  • Sales of automobiles by a licensed motor vehicle dealer
  • Licensed attorneys acting within the scope of their authority
  • Sales made by an administrator, executor, guardian, conservator, or receiver
  • Sales made by a trustee in bankruptcy or acting under a trust, deed, or will
  • Sales of certain livestock conducted by an auctioneer of a livestock trade association
  • Sales of livestock at a public livestock market authorized by the Commissioner of Agriculture and Consumer Services
  • Sales to enforce carriers’ or warehouseman’s liens

How Do Auctioneers Apply for a License in Virginia?

Auctioneers in Virginia must navigate several steps to secure their licenses. Below are the general guidelines, but applicants should refer to the Virginia Auctioneers Board’s licensing page for details on the process.

License Period – All Virginia Auctioneer Licenses expire two years from the last day of the month in which the license was issued and must be renewed before the expiration date.

Auctioneers

Step 1 – Meet the Experience Requirements

To become licensed as an auctioneer in Virginia, applicants must be at least 18 years old and have successfully completed an 8–hour course of study at an approved auctioneering school.

Step 2 – Complete the Application

Auctioneers should submit their completed applications to the Virginia Auctioneers Board at the following address:

9960 Mayland Drive, Suite 400
Richmond, Virginia 23233-1485

Auctioneers must complete the application in its entirety, and submit the following items:

    • $25 application fee
    • Proof of course completion at an auctioneering school

Step 3 – Pass the Exam

Auctioneers are required to pass an exam administered by a third-party testing organization (PSI) before being issued their license. Auctioneers must be notified that their license application is approved before registering for the exam. To take the exam, applicants must register online here and pay the $40 exam fee directly to the testing organization.

Step 4 – Purchase a Surety Bond

Auctioneers are required to purchase and maintain a $10,000 surety bond. After passing the exam, auctioneers will receive a licensure notice from the testing organization. Auctioneers must mail the surety bond with the licensure notice to the Auctioneers Board to receive their license.

Auction Firms

Step 1 – Designate a Principal Member

To become licensed as an auctioneer in Virginia, applicants are required to designate a licensed auctioneer as a principal member of the firm. The principal member is responsible for ensuring the auction firm complies with all applicable laws and rules.

Step 2 – Purchase a Surety Bond

Auction firms must purchase and maintain a $10,000 surety bond.

Step 3 – Complete the Application

Auction firms should submit their completed applications to the Virginia Auctioneers Board at the following address:

9960 Mayland Drive, Suite 400
Richmond, Virginia 23233-1485

Firm managers must complete the application in its entirety, and submit the following items:

    • Surety Bond
    • $55 application fee
    • Certificate of fictitious name registration (if applicable)
    • Certified copies of the articles of incorporation, bylaws, and charter

How do Virginia Auctioneers Renew Their Licenses?

Prior to the expiration date, the Virginia Auctioneers Board will send the licensee a renewal notice with instructions on how to renew their license. Auctioneers and firms must submit their completed renewal applications and fees to the following address:

9960 Mayland Drive, Suite 400
Richmond, Virginia 23233-1485

Additionally, auctioneers must complete 6 hours of continuing education each renewal period (unless they have been licensed for at least 25 years or are at least 75 years old). Auctioneers that fail to renew their license within 30 days of the expiration date will be subject to a late fee, and those who fail to renew within six months of the expiration date will be required to submit a reinstatement application. All Virginia Auctioneer Licenses expire two years from the last day of the month in which the license was issued and must be renewed before the expiration date.

What are the Insurance Requirements for Auctioneers in Virginia?

Virginia does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Auctioneers/firms must purchase and maintain a $10,000 surety bond.

How Do Virginia Auctioneers File Their Bonds?

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

Virginia Auctioneers Board
9960 Mayland Drive, Suite 400
Richmond, Virginia 23233-1485

The bond requires signatures, including witness 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 and address of the entity/individual(s) buying the bond
  • Surety company’s name and address
  • Date the bond goes into effect and expires
  • Bond amount

Surety companies will be required to submit an additional affidavit form when filing their bond.

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

To avoid claims on their bonds, auctioneers and auction firms in Virginia must follow all license regulations in the state, 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

What Other Insurance Products Can Agents Offer Auctioneers in Virginia?

Virginia does not require auctioneers/firms to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable auctioneers 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 Virginia Auctioneer Customers?

Virginia conveniently provides a public database to search for active auctioneers in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-09-16T15:56:07-04:00