An auctioneer bond is a type of commercial bond, mandated by the California Secretary of State. This surety bond is a financial pledge that the auctioneer will conduct business as an auctioneer according to all established rules and regulations.
The auctioneer bond is not an insurance policy. Therefore, this surety bond does not protect the buyer (aka principal). Rather, the bond protects those whose services have been rendered to by an auctioneer.
In California, the auctioneer bond is for $20,000. While there is no license in California to be an auctioneer, a bond is still required to lawfully engage in the business of auctioning. In addition to buying a $20,000 auctioneer bond, the Secretary of State requires an additional $30 fee for filing the bond with its office.
Qualifying for the California auctioneer bond is by completion of a short surety bond application --- which we'll begin with you over the phone. The application will need your signature for completion, and there will be a credit review.
Upon approval of your credit, the premium is $360, and the bond is active for 2 years.
Once approved and paid for, your bond, along with a Power of Attorney form are sent by our agency to you. You'll sign your original bond as Principal, filing all documents to the following:
California Secretary of State
PO Box 942870
Sacramento, CA 94277
As with all surety bonds, the auctioneer bond has 3 parties:
This is the person, business, or entity who is purchasing the auctioneer bond. It is likely that YOU, the reader, are the principal;
The obligee is the person, entity on whose behalf the auctioneer bond is being purchased. In California, the Secretary of State is the obligee on an auctioneer bond;
The surety is the financial entity which issues the auctioneer bond which has been purchased by the principal, to fulfill the licensing and legal requirements of the obligee.
Your California auctioneer bond is a financial guarantee of your compliance with California Title 2.95, as amended.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, probate and other surety bonds in all 50 states.
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