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| Washington State Auctioneer or Auction Company (Sole Proprietor) Bond |  |
| Washington State Auctioneer or Auction Company (Partnership) Bond | |
| Washington State Auctioneer or Auction Company (LLC) Bond | |
| Washington State Auctioneer or Auction Company (Corporation) Bond | |
Introduction
Whether selling estate items, vehicles, surplus goods, or collectibles, auctioneers and auction companies in Washington must be properly licensed and bonded. This ensures that the operations are in transparency, fairness, and accountability, protecting both sellers and buyers from potential misconduct or fraud.
In addition to licensing through the Washington State Department of Licensing, these professionals are often required to obtain a surety bond, which serves as a financial guarantee of their compliance with state regulations.
Explanation: Washington Auctioneer or Auction Company Bond
A Washington Auctioneer or Auction Company Bond is a type of surety bond required by the Washington State Department of Licensing for individuals or businesses engaged in conducting auctions or operating auction houses within the state. The bond is intended to ensure that auctioneers and auction companies comply with state laws and regulations, particularly those outlined in Chapter 18.11 of the Revised Code of Washington (RCW).
Purpose of the Bond
The primary purpose of this bond is to safeguard the public—especially sellers and buyers—against fraudulent practices, misrepresentation, or financial misconduct by a licensed auctioneer or auction business. It serves as a financial guarantee that the auctioneer or company will:
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Handle all transactions ethically and lawfully
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Remit payments to clients in a timely manner
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Abide by all state-mandated rules and procedures
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Bond Amount & Requirements
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Bond Amount: Typically $5,000, but may vary depending on the scope of operations
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Obligee: Washington State Department of Licensing
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Principal: The auctioneer or auction company
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Surety: The bonding company providing the guarantee
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Step-by-Step Guide to Obtaining an Auctioneer or Auction Company Bond in Washington
Getting a Washington Auctioneer or Auction Company Bond is a crucial part of satisfying the state’s licensing requirements. This bond ensures that auctioneers and auction companies adhere to state laws and ethical business practices. Here’s how to secure this bond:
Step 1: Determine Bond Requirements
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Confirm the bonding requirement with the Washington State Department of Licensing (DOL) under RCW 18.11.
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The typical bond amount required is $5,000, but always verify the current requirement.
Step 2: Choose a Licensed Surety Bond Provider
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Select a reputable bonding agency, such as Swiftbonds, that is licensed to issue surety bonds in Washington.
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Ensure the provider is recognized by the DOL.
Step 3: Submit Application
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Complete the bond application form with the surety provider.
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Information typically required includes:
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Legal business name
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Business address
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Contact details
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Licensing details
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Social Security number or EIN (for underwriting purposes)
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Step 4: Undergo a Credit Check
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Most surety providers perform a soft credit check to determine your bond premium.
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Good credit generally results in lower premiums (typically 1–5% of the bond amount annually).
Step 5: Receive and Sign the Bond
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Once approved, review and sign the bond form.
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Ensure all business details are correct.
Step 6: File the Bond with the Washington Department of Licensing
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Submit the original signed bond to the DOL as part of your auctioneer or auction company license application or renewal.
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Retain a copy for your business records.
Step 7: Renew the Bond Annually
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The bond must remain active and in good standing for your license to remain valid.
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Most surety providers will send renewal reminders before expiration.
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Conclusion
Whether you’re starting a new auction company or renewing your license, maintaining an active surety bond is essential to remain in good standing with the state. Working with a trusted provider like Swiftbonds can make the bonding process efficient and cost-effective, helping you focus on running a compliant and reputable auction business.
Frequently Asked Questions (FAQs)
1. What happens if the auctioneer violates the terms of the bond?
If the auctioneer or auction company engages in fraudulent or unethical conduct, a claim can be filed against the bond. If the claim is valid, the surety company will compensate the harmed party up to the bond’s full amount. The bondholder is then responsible for repaying the surety.
2. Is the bond refundable?
Bond premiums are generally non-refundable once the bond has been issued, even if the license is not granted or the business closes.
3. Can I get bonded with bad credit?
Yes. Some surety providers offer bonds to applicants with lower credit scores, though the premium may be higher.
4. Is the bond required for both individual auctioneers and auction companies?
Yes. Both individual auctioneers and business entities conducting auctions in Washington must secure the bond as part of their licensing process.
5. Can the bond be transferred between businesses or individuals?
No. A surety bond is specific to the licensed individual or business and cannot be transferred.
6. What are the consequences of not having a valid bond?
Operating without the required bond is a violation of Washington law and may result in fines, license denial, or revocation.
7. Does the bond cover disputes over auction items?
The bond covers violations of Washington state laws and unethical conduct—such as failure to remit payments or misrepresentation—but not general disputes between buyers and sellers unless fraud or misconduct is involved.
8. What is the process for filing a claim against the bond?
Consumers must file a formal complaint with the Department of Licensing. If found valid, the surety provider may investigate and potentially compensate the claimant up to the bond’s amount.
9. Will I be notified when my bond is close to expiring?
Reputable surety providers typically send renewal notices prior to the expiration date to help ensure continuous coverage.
10. Can my bond amount be increased?
Yes, if required by the Department of Licensing due to changes in business size, risk, or past violations. You’ll need to request a bond rider or a new bond for the increased amount.
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