Auctioneer ($20,000) Bond - Statewide in California

Brief Summary

In California an auctioneer or auction company cannot legally conduct business without a current $20,000 bond on file with the Secretary of State. We issue the bond on the SOS form SFSB-455 with the 24 month minimum term the form calls for, so you can mail it in with the $30 filing fee and get back to calling sales.

California Civil Code 1812.600 requires every auctioneer and every auction company to maintain a $20,000 surety bond from a surety admitted in California and to file it with the Secretary of State. The bond is payable to the people of the State of California for the benefit of anyone harmed by fraud, misrepresentation or failure to provide services at an auction.

We can help with all California bonds!

How to Apply for a Auctioneer ($20,000) Bond:

• Decide whether you are filing as an individual auctioneer, an auction company, or both, since each must maintain its own bond.
• Exact legal name and business address of the principal.
• Owner details for the surety's underwriting review.
• Bond executed on Secretary of State form SFSB-455 for $20,000.
• Bond term of at least 24 months.
• Mail or deliver the bond to the California Secretary of State with the $30 filing fee.

Detailed Information About the California Auctioneer ($20,000) Bond:

Individual auctioneers and auction companies each need a bond

The most common mistake is assuming one bond covers everyone. Civil Code 1812.600(a) says every auctioneer and auction company shall maintain a bond. An auctioneer is the individual who calls for, recognizes and accepts offers at an auction. An auction company is any person who arranges, manages, sponsors, advertises, accounts for the proceeds of or carries out auction sales. The SOS form asks the principal to check either Auctioneer or Auction Company.

The amount and who it protects

The bond is a flat $20,000. There are no tiers. It must be written by a surety company admitted to do business in California and is in favor of the people of the State of California. It is for the benefit of any person damaged by fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the services of the auctioneer or auction company, including acts of their agents.

Filing with the Secretary of State

The Secretary of State's prescribed form is SFSB-455, Surety Bond Auctioneer/Auction Company. The filing fee is $30, and the SOS accepts it by mail or in person only. The form says the term for all bonds submitted shall not be less than 24 months. There is no fee to file an amendment to a bond already on file.

If the bond lapses

The surety must send written notice to both the principal and the Secretary of State 30 days before it cancels. Once a bond is cancelled, the auctioneer or auction company must stop doing business until a new bond is obtained and filed. Section 1812.600 also allows a deposit under Code of Civil Procedure 995.710 in place of the bond.

Sales outside this law

Under Civil Code 1812.601, wholesale motor vehicle auctions regulated by the Department of Motor Vehicles are not auctions for purposes of this title, and the definition also excludes certain real estate sales.

Eligibility and Requirements for a California Auctioneer ($20,000) Bond:

• Surety company admitted to do business in California.
• Bond amount of exactly $20,000.
• Bond in favor of, and payable to, the people of the State of California.
• Copy of the bond on file with the Secretary of State before conducting any auction business.
• Continuous coverage, since business must stop if the bond is cancelled until a new one is filed.

California Auctioneer ($20,000) Bond FAQs:

Official and Additional Resources for the California Auctioneer ($20,000) Bond: