Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Louisiana auctioneer license bond needs. Learn how to obtain an auctioneer license in Louisiana, below.
What Auctioneer Licenses Are Issued in Louisiana?
The Louisiana Auctioneers Licensing Board (LALB) issues these licenses:
- Reciprocal auctioneer (for auctioneers already licensed in another state)
- Auction business (e.g., for auction houses)
- Apprentice (for apprentice auctioneers working under the supervision of a LALB-licensed auctioneer)
LALB does not license those who conduct public livestock auctions. In most cases, individuals conducting bankruptcy sales or auctioning their own property are exempt from licensing.
The LALB Licensing website provides access to the Certemy online application system.
If you will be working as an auctioneer in East Baton Rouge Parish, be aware that you will need a local auctioneer license in addition to a state-level license from LALB.
What Are the Steps in the Licensing Process?
Certain eligibility criteria and pre-licensing requirements must be met before submitting an application for licensure as an auctioneer in Louisiana. This includes completing an approved pre-licensing education course and passing the Louisiana auctioneer license exam. Those who complete a 1-year apprenticeship under a licensed auctioneer or are licensed as an auctioneer in another state may be exempted from the education and examination requirements.
Certemy will walk you through the online application process, which will include providing three character references and paying required fees. You will also need to purchase and submit a Louisiana auctioneer license bond in the amount of $10,000.
Bear in mind that all licenses issued by LALB expire on December 31 of each year. You must have an active Louisiana auctioneer license bond in force at all times to prevent license suspension or revocation. You may purchase either a single-year or multiple-year bond.
Why is an Auctioneer Bond Required?
A Louisiana auctioneer bond is your pledge to operate in compliance with Louisiana’s Auctioneer’s Licensing Law. The bond indemnifies both LALB (the bond’s “obligee”) and the bond company (the bond’s “surety”) against liability for any damages resulting from your violation of that law and the associated rules. For example, any efforts to deceive or defraud the public that causes someone to suffer a financial loss gives the injured party the right to file a claim against your auctioneer bond. You, (the bond’s “principal”) are legally obligated to pay claims if the surety determines that it is valid.
How Are Mortgage Broker Bond Claims Paid?
A Louisiana auctioneer license bond represents a line of credit established by the surety at the time you purchase the bond. Although the terms of the surety bond agreement make you solely responsible for paying valid claims, the surety will pay a claim on your behalf. The surety then allows you to repay the resulting debt in installments within a certain length of time. The claimant receives prompt payment, and you don’t have to come up with a large lump sum all at once.
How Much Does a Louisiana Auctioneer License Bond Cost?
You will pay an annual premium that is only a small percentage of the required bond amount. What that percentage (the premium rate) will be depends on how much risk the surety perceives in extending you credit. Your creditworthiness is the underwriters’ main consideration. If your personal credit score is good, you’ll most likely pay a premium that’s in the standard market rate range, potentially as low as 1% of the $10,000 bond amount.
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