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Tucson Auctioneer Bond: A Comprehensive Guide
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This guide provides information for insurance agents to help their customers obtain a Tucson Auctioneer Bond.
*Auctioneers that own an auction house are only required to purchase a single bond.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All Class B auctioneers and auction houses operating in Tucson, Arizona
- Purpose: To ensure the public receives compensation for financial harm if the auctioneer or auction house commits fraud or breaches consumer contracts
- Who Regulates Auctioneers in Tucson: The City of Tucson
Background
Tucson Code of Ordinances 7-3 and 7-4 require all Class B auctioneers and auction houses operating in the city to obtain a license from the Business Services Department. The Tucson City Council enacted the licensing requirements to ensure that auctioneers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, Class B auctioneers and auction houses must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Tucson Auctioneer Bond?
Tucson requires Class B auctioneers and auction houses to purchase a surety bond as part of the application process to obtain a business license. The bond guarantees compensation for those financially harmed if the auctioneer or auction house fails to comply with the regulations set forth in Chapter 7, Article 1 of the Tucson Code of Ordinances. Specifically, the bond protects those who may suffer damages if the auctioneer or house engages in acts of fraud such as boosting bids or unfairly auctioning off someone’s property. 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 Tucson Auctioneer Surety Bond?
BondExchange makes obtaining a Tucson Auctioneer 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.
Not an agent? Then let us pair you with one!
Click the above image to find a BX Agent near you
Is a Credit Check Required for the Tucson Auctioneer Bond?
No, a credit check is not required for the Tucson Auctioneer bond. Because the bond is considered relatively low risk, the same low rate is offered to all auctioneers and auction houses operating in the city, regardless of their credit history.
How Much Does the Tucson Auctioneer Bond Cost?
The Tucson Auctioneer bond costs either $100 per year or $10 per month.
Who is Required to Purchase the Tucson Auctioneer Bond?
Tucson requires Class B auctioneers and auction houses to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Tucson Code of Ordinances 7-1, a Class B auctioneer is a person that publicly sells property to the highest bidder. Class B auctioneers may not solely auction off real estate, livestock, secondhand goods, wares, or merchandise. Likewise, an auction house is a place of business where goods are publicly sold to the highest bidder, excluding new jewelry, silverware, or precious stones.
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 Tucson?
Auctioneers and auction houses in Tucson 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 – All Tucson Auction Licenses expire annually and must be renewed before the expiration date.
Step 1 – Determine the License Classification
Tucson requires auctioneers to obtain both an individual license and a license covering their place of business. Below are the different classifications for the Tucson Auction License:
-
- Class B Auctioneer: The individual auctioneer selling goods at auction
- Auction House: The physical place of business where auctions are held
Step 2 – Contact the Business Services Department
Before applying for a license, auctioneers should contact the city’s Business Services Department. The department will walk the auctioneer through the application process, provide them with all required forms, and answer any questions they may have.
Step 3 – Complete the Application
Auctioneers should submit their completed applications, including a $25 application fee, to the following address:
City of Tucson
License Section
PO Box 27210
Tucson AZ 85726-7210
Auctioneers must pay an additional $50 annual fee to maintain their license. Auctioneers must submit an additional form with their license application and this form can be obtained directly from the Business Services Department.
Step 4 – Purchase a Surety Bond
Auctioneers and auction houses must purchase and maintain a $5,000 surety bond.
What are the Insurance Requirements for Auctioneers in Tucson?
Tucson does not require auctioneers and auction houses to purchase any form of liability insurance as a prerequisite to obtaining a business license. Auctioneers and auction houses must purchase and maintain a $5,000 surety bond.
How Do Tucson Auctioneers File Their Bonds?
Auctioneers and auction houses should submit their completed bond forms, including the power of attorney, to the City of Tucson at the following address:
City of Tucson
License Section
PO Box 27210
Tucson AZ 85726-7210
The surety bond requires signatures from 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
- Date the bond is signed
What Can Tucson Auctioneers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, auctioneers and auction houses in Tucson must ensure that they comply with all provisions set forth in Chapter 7, Article 1 of the Tucson City Code. Best practices for avoiding claims include:
- Not boosting bids
- Not unfairly auctioning off someone’s property
- Faithfully honoring all consumer contracts
What Other Insurance Products Can Agents Offer Auctioneers in Tucson?
Tucson does not require auctioneers or auction houses to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most auctioneers/houses will obtain 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 Tucson Auctioneer Customers?
Tucson unfortunately does not provide a public database of active auctioneers and auction houses in the city. We suggest contacting the Business Services Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
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