Do You Need an Auctioneer Licence?

If you've watched an auctioneer in action (rapid-fire speech, commanding presence, and a room hanging on every word), you might have thought: That looks like an interesting way to make a living. And for many auctioneers, it certainly is. From estate sales to charity events, auctioneering is a dynamic career that combines salesmanship with performance.

But before you can grab a gavel and start taking bids, let's answer the crucial question: Do you actually need an auctioneer licence?

The short answer is: in many U.S. states, you do. Still, there's a lot you should know about this, so let's look closer at what this means.

Why Does Auctioneer Licensing Exist?

Auctioneer licensing isn't just another legal requirement in different states. It's meant to protect consumers and ensure fair, transparent business practices. That's in consideration that auctioneers handle valuable property and significant amounts of money, often on behalf of clients who depend on them to act ethically and legally.

So, when you complete auctioneer training online and acquire a licence, it shows that you've met the state's standards, typically including formal training, bonding, and even background checks. This means buyers and sellers can trust the process. Remember, accountability matters a lot when money and assets are involved.

Which States Require an Auctioneer Licence?

At the moment, more than 24 states in the U.S. mandate a state-level auctioneer licence, usually for both individuals and firms. While each state has its requirements, the typical steps include:

• Pre-licensing education/apprenticeship
• Examination
• An application process
• Bonding and insurance
• Fees and renewals

Here's a quick look at some popular states and their corresponding auctioneering requirements.

• Florida: Complete education from an approved auction school, $200 initial fee, pass the PSI exam, and continuing education with a biennial renewal.
• North Carolina: 2-year apprenticeship or 80-hour school, firm bond (annual renewal)
• Texas: Graduate from an approved auction school, $200 initial fee, pass the PSI exam, and continuing education (biennial licence renewal)
• Ohio: Be age 18 and above, complete a minimum of 12 auctions as an apprentice, have the $200 licence fee and a $25,000 bond, pass the state licensing exam ($25), and complete 8 hours of continuing education every 2 years.

What About States Without Licence Requirements?

Some states, like Alaska, New York, and California, don't require a state-level auctioneer licence, but you may still face:

• Local permits (e.g, San Diego, Los Angeles, NYC)
• Niche-specific regulations
• Surety bonds (California, for instance, requires a $20,000 bond)
• Sales-tax registrations

If you run an auction in any of the states where a licence isn't required, you'll want to confirm both state and local rules before bidding opens.

What Happens If You Operate Without a Licence?

Working as an unlicensed auctioneer in a regulated state can lead to serious consequences, including, but not limited to:

• Cease-and-desist orders
• Fines and penalties
• Reputational risks
• Criminal charges

In some cases, sales conducted by an unlicensed auctioneer can be deemed invalid, creating complications for both buyers and sellers. So, even though it will seem like you're saving time upfront by skipping the licensing process, it's a risky move that can cost you a lot more later.

Start the Licensing Process Today

So, back to the main question: do you need an auctioneer's licence? Probably. Still, it depends on where you plan to work. So, start by checking your state's requirements, complete the required training, and ensure your business is above board before calling your first sale.

And just in case you're wondering where to find the best pre-licensing education for auctioneers, try rocketcert.com. Thanks to their expertly written and fully narrated courses, you won't have to struggle to meet your educational requirements.