Salt Lake City Auctioneer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Salt Lake City Auctioneer bond.
At a Glance:
- Lowest Cost: Either $100 or $10 per month or $300 per year or $30 per month based on the bond amount and type of license being applied for
- Bond Amount:
- Auctioneers: $5,000
- Auction Houses: Either $10,000 or $30,000 (more on this later)
- Who Needs it: All auctioneers, auction houses, and transient auction houses operating in Salt Lake City, 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 Salt Lake City: The Salt Lake City Business Licensing Office
Background
Salt Lake City Code 5.16.040 and 5.16.150 requires all auctioneers and auction houses operating in the city to obtain a license from the Business Licensing Office. The Salt Lake 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 Salt Lake City Auctioneer Bond?
Salt Lake City 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 Salt Lake City Code 5.16.090 and 5.16.190. 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 Salt Lake City Auctioneer Surety Bond?
BondExchange makes obtaining a Salt Lake City 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?
Chapter 5.16 of the Salt Lake City Code dictates that the bond amount must be:
- $30,000 for auction houses that sell valuable articles such as precious metals or stones, clocks, watches, oriental rugs, glassware, china, linens, or jewelry
- $10,000 for auction houses that do not sell valuable articles
- $5,000 for auctioneers
Is a Credit Check Required for the Salt Lake City Auctioneer Bond?
No, a credit check is not required for the Salt Lake City 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 Salt Lake City Auctioneer Bond Cost?
The Salt Lake City Auctioneer Bond costs either $100 per year or $10 per month or $300 per year or $30 per month based on the bond amount and type of license being applied for, as outlined below:
| Bond Amount and License Type | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| $5,000 Auctioneer License bond | $100 | $10 |
| $10,000 Auction House License bond | $100 | $10 |
| $30,000 Auction House License bond | $300 | $30 |
Who is Required to Purchase the Bond?
Salt Lake City requires auctioneers and auction houses to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Salt Lake City Code 5.16.010, an auctioneer is any person who publicly sells personal 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 and Auction Houses Apply for a License in Salt Lake City?
Auctioneers in Salt Lake City must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the Business Licensing Department for details on the process.
License Period – All Salt Lake City Auctioneer Licenses are valid one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Register with the Utah State Department of Commerce
Auctioneers and auction houses must register with the Department of Commerce prior to applying for a city license.
Step 2 – Determine the Items to Be Sold
Before applying for a license, auction houses must determine whether they will sell any of the valuable articles listed in Salt Lake City Code 5.16.230. This will determine the auction house’s surety bond amount.
Step 3 – Purchase a Surety Bond
Auctioneers and auction houses must purchase and maintain a surety bond (limits outlined above).
Step 4 – Complete the Application
Auctioneers and owners of auction houses must submit their completed applications online here and must create an account with the Salt Lake City online licensing portal before doing so.
Applicants must complete the application in its entirety, and submit the following items:
-
- Utah State Department of Commerce Registration
- Federal Tax ID Number
- Utah Sales and Use Tax ID Number
- Surety Bond
- A copy of a government-issued photo ID
- A 2” x 2” photograph of the applicant taken within the past 60 days
- Fingerprints of the applicant
- Two references from property owners of Salt Lake County
- License Fee
- $145 for auctioneers
- $273 for auction houses
- $273 per day for transient auction houses
All applicants will be required to complete a background check from the Salt Lake City Police Department. Every auctioneer conducting auctions in an auction house will also be subject to a background check.
How do Salt Lake City Auctioneers Renew Their License?
To renew their licenses, auctioneers and auction houses must submit a completed renewal application, including all required licensing fees, online here. All Salt Lake City Auctioneer Licenses expire on January 1 and must be renewed before the expiration date. Contact the Business Licensing Office for more details on the renewal process.
What are the Insurance Requirements for Salt Lake City Auctioneers?
Salt Lake City does not require auctioneers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Auctioneers and auction houses must purchase and maintain a surety bond (limits outlined above).
How Do Salt Lake City Auctioneers File Their Bonds?
Auctioneers should submit their completed bond forms online with their license applications. Contact the Business Licensing Office for more details on how to submit the bond form.
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 Salt Lake City Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, auctioneers in Salt Lake City 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 Salt Lake City?
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 Salt Lake City Auctioneer Customers?
Salt Lake City unfortunately does not provide a public database of active auctioneers or auction houses in the city. We suggest contacting the Business Licensing Office to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
