Surety Bond Encyclopedia

Auctioneer ($2,000) Bond - City and County of Denver, CO in Colorado

Brief Summary

Denver lists the $2,000 auctioneer bond among the documents it expects with a new application, and section 9-14 lets the city deny a license to anyone who fails to post or keep it. Because the bond is continuing, one bond on the city's own form covers your first license and every renewal after it, as long as it stays in force.

Every auctioneer licensed by the City and County of Denver must deliver a $2,000 bond to the Department of Licensing and Consumer Protection under Denver Revised Municipal Code 9-18. The bond pays damages to anyone hurt by a Chapter 9 violation or by the auctioneer's fraud or negligence in an auction sale, and injured people can sue the surety directly. The application fee is $25 and the license is $200 a year.

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How to Apply for a Auctioneer ($2,000) Bond:

Download the License Bond Auctioneer form from the Denver auctioneer application page.
Complete the bond application and review the quoted premium.
Have the surety execute the form for $2,000 with the City and County of Denver as obligee.
Gather the criminal history form, photo ID, an FBI background check run within 60 days and a badge headshot.
Submit the application and bond to the Department of Licensing and Consumer Protection and pay the $25 application fee and $200 license fee when invoiced.
Renew before the license expires and keep the bond in force for every renewal.

Detailed Information About the Colorado Auctioneer ($2,000) Bond:

Who needs a Denver auctioneer license

Denver Revised Municipal Code 9-12 makes it unlawful to act as an auctioneer or run an auction house in the city without a license. An auctioneer is anyone who sells or offers to sell goods, personal property or real estate by public outcry to draw bids, whether for their own profit or for someone else, and anyone who advertises as an auctioneer or takes fees or commission for auction work. Denver does not issue a temporary auctioneer license.

Each licensed auctioneer may use one assistant to catch bids or call for bids without a separate license, but only while the licensed auctioneer is present, and the licensee answers for the assistant's acts.

Sales that fall outside Chapter 9

Section 9-2 exempts auction sales by trustees under a deed of trust or court order, by banks, trust companies, bankruptcy trustees, executors and administrators, and sales to liquidate the assets of a bankrupt, a trust, a debtor or an estate. Also exempt are charity and church auctions, dealer only sales, public stockyard sales under the Packers and Stockyards Act, the National Western Stock Show, 4-H auctions, and member only auctions held by nonprofit collector groups meeting in Denver.

What the bond covers

Section 9-18 sets a $2,000 penal sum, payable to cover damages to anyone injured by a Chapter 9 violation or by any fraudulent or negligent act of the auctioneer in a sale or offer to sell by auction, including jewelry auctions. The city or an injured person may sue the surety directly without joining the auctioneer. The bond is continuing, covering the original license and every renewal. Denver can require a new bond if a surety dies or becomes insolvent, and the bond must carry an endorsement giving the manager written notice before cancellation.

Denver publishes its own License Bond Auctioneer form naming the City and County of Denver as obligee. The surety must be qualified in Colorado. The form also has the principal hold the city harmless from claims tied to issuing the license, and it gives the surety a ninety day notice period to cancel.

Applying and renewing

Apply to the Department of Licensing and Consumer Protection online, by mail or in person. The application packet includes the applicant criminal history form, a state or federal photo ID, an FBI background check run within the past 60 days, the $2,000 surety bond and a headshot for the badge. The application fee is $25 and the license fee is $200 per year under section 32-49. Licenses expire annually and can be renewed up to 90 days early. Section 9-19 makes renewal conditional on paying the fee and keeping the bond in place.

Eligibility and Requirements for a Colorado Auctioneer ($2,000) Bond:

Bond in the penal sum of $2,000 under Denver Revised Municipal Code 9-18.
City and County of Denver named as obligee on the city's auctioneer bond form.
Surety qualified under Colorado law.
Continuing bond covering the original license and all renewals.
Applicant at least 18 years old with a background check acceptable to the manager.

Colorado Auctioneer ($2,000) Bond FAQs:

Do I need a new bond every year?

Not under the code. Section 9-18 makes the bond continuing, covering the original license period and any renewals. The bond must stay in force, and Denver can require a new one if the surety becomes insolvent.

Does my bid caller need a separate license and bond?

No. Section 9-12 lets each licensed auctioneer use one unlicensed assistant to catch or call bids while the licensed auctioneer is present. The licensee is responsible for that assistant's acts.

Are estate and charity auctions covered?

Section 9-2 exempts sales by executors, administrators and trustees, estate and bankruptcy liquidations, charity and church auctions, dealer only sales and several others. An auctioneer working those sales should still confirm with the department whether a license is needed for other work in Denver.

Who can make a claim on the bond?

The City and County of Denver or any person injured by a Chapter 9 violation, or by the auctioneer's fraud or negligence in an auction sale. They can sue the surety directly without joining the auctioneer. The auctioneer then repays the surety for any claim it pays.

What does the bond cost?

You pay an annual premium that is a percentage of the $2,000 bond amount. The surety sets the rate mostly from the applicant's credit, so get a quote before you file.