Clark County Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Clark County Auctioneer bond.
This page covers bond and permit requirements for auctioneers operating solely in the unincorporated parts of Clark County, Nevada. For information regarding the bonding and permitting requirements for auctioneers operating in the incorporated parts of the county, check out our Las Vegas and Henderson auctioneer bond pages.
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: Between $2,000 to $5,000 (more on this later)
- Who Needs it: All auctioneers operating in the unincorporated areas of Clark County, Nevada
- Purpose: To ensure the public is compensated for damages if the auctioneer fails to comply with permitting law
- Who Regulates Auctioneers in Clark County: The Clark County Department of Business Licenses
Background
Clark County Code of Ordinances 6.36.020 requires all auctioneers operating in the unincorporated parts of the county to obtain a permit from the Clark County Department of Business Licenses. The County Commissioners enacted the permitting laws and regulations to ensure that auctioneers engage in ethical business practices. To provide financial security for the enforcement of the permitting requirement, auctioneers must purchase and maintain a surety bond to be eligible for a permit.
The unincorporated parts of Clark County include all areas in the county outside of the following municipalities:
- Henderson
- Las Vegas
- North Las Vegas
- Boulder City
- City of Mesquite
All auctioneers operating within any of the above municipalities must obtain a business license from their respective licensing agencies.
What is the Purpose of the Clark County Auctioneer Bond?
Clark County requires auctioneers to purchase a surety bond as part of the application process to obtain an auction permit. The bond protects the public from financial harm if the auctioneer fails to comply with the regulations set forth in Clark County Code of Ordinances 6.36.020. Specifically, the bond protects the public if the auctioneer engages in any act of fraud, does not maintain an accurate record of transactions, or fails to accurately represent all goods up for sale. In short, the bond is a type of insurance that protects the public if the auctioneer violates the terms of their permit.
How Can an Insurance Agent Obtain a Clark County Auctioneer Surety Bond?
BondExchange makes obtaining a Clark County 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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How is the Bond Amount Determined?
Clark County Code of Ordinances 6.36.040 dictates that the bond amount must be:
- 1% of the total invoice or wholesale value of the items up for sale if jewelry is to be sold. The bond must be a minimum of $2,000 and may not exceed $5,000 in these scenarios
- $2,000 if no jewelry is to be sold
Is a Credit Check Required for the Clark County Auctioneer Bond?
No, a credit check is not required for the Clark County Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers operating in the county, regardless of their credit history.
How Much Does the Clark County Auctioneer Bond Cost?
The Clark County Auctioneer bond costs either $100 per year or $10 per month.
Who is Required to Purchase the Clark County Auctioneer Bond?
Clark County requires auctioneers operating in the unincorporated parts of the county to purchase a surety bond as a prerequisite to obtaining an auction permit. To paraphrase Clark County Code of Ordinances 6.36.010, an auctioneer is a person who publicly sells property at auction to the highest bidder.
Exemptions to this requirement include:
- Banks and trust companies
- Persons liquidating assets involved in a bankruptcy or estate sale
- Assignees of creditors
- Unclaimed property sold by common carriers or public warehouses
- Court-appointed representatives acting within the scope of their authority
- Charitable or nonprofit organizations
- Sales on behalf of licensed pawnbrokers for unredeemed pledges
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 Permit in Clark County?
Auctioneers in Clark County must navigate several steps to obtain an auction permit. Below are the general guidelines, but auctioneers should contact the Department of Business Licensing for details on the process.
Permit Period – All Clark County Auctioneer Permits expire after the auction is conducted.
Step 1 – Obtain a Nevada State License
All businesses operating in Nevada must obtain a state license from the Nevada Secretary of State. Auctioneers can apply for a state business license online here.
Step 2 – Register with the Department of Taxation
After obtaining their state license, auctioneers must register with the Nevada Department of Taxation.
Step 3 – Apply for a County License
In addition to their state license, auctioneers must also obtain a county license. To obtain a Clark County Auctioneer License, auctioneers must submit a completed application, including a $545 licensing fee, to the following address:
500 S Grand Central Pkwy
3rd Floor
Las Vegas NV 89155-1810
Auctioneers must complete a criminal background check before receiving their full license. However, the department may issue the auctioneers a temporary license while their background check is being processed.
Step 4 – Purchase a Surety Bond
Auctioneers must purchase and maintain a surety bond (limits outlined above).
Step 5 – Apply for a Permit
Auctioneers must obtain a permit for each auction they plan to conduct. To apply for a permit, auctioneers should submit a completed application, including a $15 permitting fee, to the following address:
500 S Grand Central Pkwy
3rd Floor
Las Vegas NV 89155-1810
Auctioneers must complete the application in its entirety, and submit the following items:
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- Inventory list of all items to be auctioned
- Executed lend/lease contract for the place the auction will occur
Step 6 – Schedule an Appointment with a Business Licensing Technician
Before receiving their county license and auction permit, auctioneers must schedule an appointment with a business license technician and can do so online here.
Do Clark County Auctioneers Need to Renew Their Permits?
No, as all Clark County Auctioneer Permits expire after the auction is conducted. Auctioneers must obtain a separate permit for each auction they plan to conduct. Auctioneers will need to submit a continuation certificate of their current bond if applying for a separate permit.
What are the Insurance Requirements for Auctioneers in Clark County?
Clark County does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining an auction permit. However, auctioneers with employees are required to purchase workers’ compensation insurance. Auctioneers must purchase and maintain a surety bond (limits outlined above).
How Do Clark County Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms, including the power of attorney, to the Clark County Department of Business Licensing at the following address:
500 South Grand Central Pky, 3rd Floor
Box 551810
Las Vegas, Nevada 89155-1810
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 permit type applied for
- Bond amount
- Date the bond is signed
What Can Clark County Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Clark County must follow all permit regulations, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Maintain accurate records of all transactions
- Accurately represent all goods up for sale
What Other Insurance Products Can Agents Offer Auctioneers in Clark County?
Clark County does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining an auction permit. However, most reputable auctioneers will obtain this insurance anyway. Auctioneers with employees must purchase workers’ compensation insurance. 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 Clark County Auctioneer Customers?
Clark County conveniently provides a public database to search for active auctioneers in the county. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
