118 Questions
What is the maximum period of time an auction house can enter into a written agreement with repeat dealers or sellers?
1 year
What is the maximum period of time that a licensee must keep consignment and sales records?
2 years
In what type of sales can auctioneers bid up to the amount of the reserve price without the intent to purchase?
Sales with reserve
What is the purpose of the escrow account that auctioneers must deposit payments into?
For the benefit of the owner or seller of the property
What type of records must licensees maintain in compliance with state regulations?
All of the above
What type of account must auction firms establish and maintain for trust funds?
Custodial account for sellers proceeds
What can funds in the custodial account be drawn for?
Payment of net proceeds to the seller
What must the licensee do in the event of a dispute?
Retain the monies in their trust or escrow account until obtaining written consent from the parties
What type of records must be made available to the Board or its staff upon request?
All of the above
What is the requirement to renew a license in active status?
Complete Board-approved courses consisting of four hours of instruction each year
What is the requirement for licensed auction firms?
To have at least one Board-approved designated person
What is the maximum period of time an auction house can enter into a written agreement with repeat dealers or sellers?
1 year
What is the maximum period of time that a licensee must keep consignment and sales records?
2 years
In what type of sales can auctioneers bid up to the amount of the reserve price without the intent to purchase?
Sales with reserve
What is the purpose of the escrow account that auctioneers must deposit payments into?
For the benefit of the owner or seller of the property
What type of records must licensees maintain in compliance with state regulations?
All of the above
What type of account must auction firms establish and maintain for trust funds?
Custodial account for sellers proceeds
What can funds in the custodial account be drawn for?
Payment of net proceeds to the seller
What must the licensee do in the event of a dispute?
Retain the monies in their trust or escrow account until obtaining written consent from the parties
What type of records must be made available to the Board or its staff upon request?
All of the above
What is the requirement to renew a license in active status?
Complete Board-approved courses consisting of four hours of instruction each year
What is the requirement for licensed auction firms?
To have at least one Board-approved designated person
According to North Carolina regulations for auctioneers, how long do licensees have to deposit any payments not disbursed to the seller on auction day into an escrow account?
3 business days
What type of records must licensees maintain in compliance with state regulations when disbursing funds on auction day?
Receipts or settlement statements
What type of bank account must auction firms establish and maintain if they do not disburse all funds to the seller on auction day?
Custodial Account for Sellers Proceeds
Where must custodial accounts be established and maintained by auction firms?
In banks, credit unions, or savings and loan associations located in North Carolina whose deposits are insured by a recognized insurance agency or program
What can funds in the custodial account be drawn for?
Payment of net proceeds to the seller, charges against the property, and compensation for the auctioneer/firm's services
What must the licensee do in the event of a dispute?
Both A and C
How long must consignment and sales records be kept by the licensee?
2 years
How long must bidder registration records be kept by the licensee?
2 years
What is the maximum period of time an auction house, barn, or gallery can enter into a written agreement with repeat dealers or sellers?
12 months
Are auctioneers allowed to bid on items in sales they are conducting?
Yes, but only in sales with reserve
What is the minimum requirement for licensed auction firms to have a Board-approved designated person?
At least one Board-approved designated person
What is the requirement for auctioneers, apprentice auctioneers, or designated persons in an auction firm to renew their license in active status?
Complete Board-approved courses consisting of four hours of instruction each year
What type of account must auction firms establish and maintain for trust funds?
Custodial account for sellers proceeds
What is the maximum period of time that a licensee must keep bidder registration records?
2 years
What is the requirement for licensed auction firms?
To have at least one Board-approved designated person
What must the licensee do in the event of a dispute?
Retain the monies in their trust or escrow account until obtaining written consent from the parties or until disbursement is ordered by a court of competent jurisdiction
What type of records must be kept by the licensee for a period of two years?
All of the above
What is the purpose of the escrow account that auctioneers must deposit payments into?
To hold funds for the seller
What is the maximum period of time an auction house can enter into a written agreement with repeat dealers or sellers?
12 months
What are the only purposes for which funds in the custodial account can be drawn?
All of the above
What is the requirement to renew a license in active status?
Complete Board-approved courses consisting of four hours of instruction each year
What is the maximum period of time that a licensee must keep consignment and sales records?
2 years
What is the rule regarding auctioneers bidding on items in sales they are conducting?
Auctioneers are prohibited from bidding on items in sales they are conducting, except in sales with reserve, where they may bid up to the amount of the reserve price without the intent to purchase.
What must licensees do if they disburse any funds on auction day?
Prepare a receipt or settlement statement and maintain records in compliance with state regulations
What is the maximum time period for a written agreement between an auction house and repeat dealers or sellers?
1 year
For how long must a licensee keep consignment and sales records?
2 years
In what type of sales can auctioneers bid up to the amount of the reserve price without the intent to purchase?
Sales with reserve
What is the purpose of the escrow account that auctioneers must deposit payments into?
To hold funds for the seller
What type of records must licensees maintain in compliance with state regulations?
All of the above
What type of account must auction firms establish and maintain for trust funds?
Custodial account
What can funds in the custodial account be drawn for?
All of the above
What must the licensee do in the event of a dispute?
Retain the monies in their trust or escrow account
What type of records must be made available to the Board or its staff upon request?
All of the above
What is the requirement to renew a license in active status?
Complete Board-approved courses consisting of four hours of instruction each year
What is the requirement for licensed auction firms?
Have at least one Board-approved designated person
Can excess continuing education hours be carried forward as credits for a maximum of one renewal year?
Yes
What must auctioneers do with payments not disbursed to the seller on auction day?
Deposit them into an escrow account for the benefit of the owner or seller of the property within three business days
What type of records must licensees maintain in compliance with state regulations?
Auction agreements, registration, sales, and accounting records
What is the maximum period of time that a licensee must keep bidder registration records?
Two years from the date of the auction
What is the purpose of a 'Custodial Account for Sellers Proceeds'?
To hold trust funds that are not disbursed to the seller on auction day
What is the requirement for licensed auction firms?
To have at least one Board-approved designated person who has the authority to transact business under the firm license
What is the maximum period of time an auction house can enter into a written agreement with repeat dealers or sellers?
One year
What is the requirement to renew a license in active status?
To complete Board-approved courses consisting of four hours of instruction each year and provide documentation of completion to the Board
What is the maximum period of time that a licensee must keep consignment and sales records?
Two years
What can funds in the custodial account be drawn for?
Payment of net proceeds to the seller, charges against the property, and compensation for the auctioneer/firm's services
What must the licensee do in the event of a dispute?
Retain the monies in their trust or escrow account until obtaining written consent from the parties or until disbursement is ordered by a court of competent jurisdiction
What is the prohibition for auctioneers regarding bidding on items in sales they are conducting?
They are prohibited from bidding on items in sales they are conducting, except in sales with reserve, where they may bid up to the amount of the reserve price without the intent to purchase
What must licensees who disburse any funds on auction day do?
Prepare a receipt or settlement statement and maintain records in compliance with state regulations
According to North Carolina regulations for auctioneers, what must licensees who disburse any funds on auction day do?
Prepare a receipt or settlement statement and maintain records in compliance with state regulations.
What type of account must auction firms that do not disburse all funds to the seller on auction day establish and maintain for trust funds?
Custodial account
Where must custodial accounts be established and maintained according to North Carolina regulations for auctioneers?
In any bank, credit union, or savings and loan association located in North Carolina whose deposits are insured by a recognized insurance agency or program
What can funds in the custodial account be drawn for according to North Carolina regulations for auctioneers?
Payment of net proceeds to the seller, charges against the property, and compensation for the auctioneer/firm's services
What must the licensee do in the event of a dispute according to North Carolina regulations for auctioneers?
Retain the monies in their trust or escrow account until obtaining written consent from the parties or until disbursement is ordered by a court of competent jurisdiction
What type of records must be maintained at the site during the auction and made available to the Board or its staff upon request according to North Carolina regulations for auctioneers?
Accounting records
What is the maximum period of time that auction houses, barns, or galleries can enter into a written agreement with repeat dealers or sellers according to North Carolina regulations for auctioneers?
One year
How long must consignment and sales records be kept by the licensee according to North Carolina regulations for auctioneers?
Two years
How long must bidder registration records be kept by the licensee according to North Carolina regulations for auctioneers?
Two years
What are auctioneers prohibited from doing in sales they are conducting according to North Carolina regulations for auctioneers?
Bidding on items in sales they are conducting, except in sales with reserve
What is the requirement for licensed auction firms according to North Carolina regulations for auctioneers?
They must have at least one Board-approved designated person
What is the requirement to renew a license in active status according to North Carolina regulations for auctioneers?
Auctioneers must complete Board-approved courses consisting of four hours of instruction each year
What is the maximum period of time that a licensee must keep bidder registration records?
Two years from the date of the auction
What is the purpose of the custodial account for sellers proceeds?
To pay for net proceeds to the seller
What is the requirement for renewing a license in active status?
Complete Board-approved courses consisting of four hours of instruction each year
What is the maximum period of time an auction house can enter into a written agreement with repeat dealers or sellers?
One year
What is the prohibition for auctioneers bidding on items in sales they are conducting?
They cannot bid on any item in any sales they are conducting
What type of records must be maintained at the site during the auction?
Consignment and sales records
What is the requirement for licensees who disburse any funds on auction day?
Prepare a receipt or settlement statement and maintain records in compliance with state regulations
What is the requirement for auction firms that do not disburse all funds to the seller on auction day?
Establish and maintain a separate bank account designated as a 'Custodial Account for Sellers Proceeds'
What is the requirement for custodial accounts?
They must be established and maintained in banks, credit unions, or savings and loan associations located in North Carolina whose deposits are insured by a recognized insurance agency or program
What is the requirement in the event of a dispute?
The licensee must retain the monies in their trust or escrow account until obtaining written consent from the parties or until disbursement is ordered by a court of competent jurisdiction
What is the requirement for all licensed auction firms?
They must have at least one Board-approved designated person
What is the requirement for excess continuing education hours?
They can be carried forward as credits for a maximum of one renewal year
According to North Carolina regulations for auctioneers, what is the maximum period of time that auction houses, barns, or galleries can enter into a written agreement with repeat dealers or sellers?
1 year
What is the required period of time that licensees must keep bidder registration records?
2 years
What is the maximum number of renewal years that excess continuing education hours can be carried forward as credits?
1 year
What is the minimum number of hours of instruction that must be completed each year to renew a license in active status?
4 hours
What type of account must auction firms establish and maintain for trust funds?
Custodial account
What is the purpose of the receipt or settlement statement that licensees must prepare if they disburse any funds on auction day?
To provide a record of the seller's proceeds
What is the maximum period of time that licensees must keep consignment and sales records?
2 years
What is the purpose of the escrow account that auctioneers must deposit payments into?
To hold funds for the seller's proceeds
What is the requirement for licensed auction firms in terms of having a designated person?
They must have at least one Board-approved designated person
What is the requirement for auctioneers in terms of bidding on items in sales they are conducting?
They can only bid on items in sales with reserve
What is the requirement for licensees in the event of a dispute?
They must retain the monies in their trust or escrow account until obtaining written consent from the parties or until disbursement is ordered by a court of competent jurisdiction
What is the requirement for maintaining auction agreements, registration, sales, and accounting records?
They must be maintained for two years
According to North Carolina regulations for auctioneers, what is the maximum period of time that an auction house, barn, or gallery can enter into a written agreement with repeat dealers or sellers?
One year
What is the minimum requirement for completing Board-approved courses to renew a license in active status?
Four hours of instruction each year
What is the requirement for licensed auction firms?
They must have at least one Board-approved designated person
According to North Carolina regulations for auctioneers, what type of records must be kept by the licensee for a period of two years?
Consignment and sales records
What is the purpose of the custodial account that auction firms must establish and maintain for trust funds?
All of the above
According to North Carolina regulations for auctioneers, what is the maximum period of time that bidder registration records must be kept?
Two years
What is the requirement for licensees who disburse any funds on auction day?
Both A and B
According to North Carolina regulations for auctioneers, what is the requirement for auctioneers bidding on items in sales they are conducting?
They can bid on items in sales with reserve up to the amount of the reserve price without the intent to purchase
What is the requirement for auction firms that do not disburse all funds to the seller on auction day?
They must establish and maintain a separate bank account designated as a 'Custodial Account for Sellers Proceeds'
What is the requirement for auctioneers depositing any payments not disbursed to the seller on auction day?
They must deposit any payments not disbursed to the seller on auction day into an escrow account within three business days
What is the requirement for auction agreements, registration, sales, and accounting records?
Both A and B
What is the requirement for excess continuing education hours for license renewal?
They can be carried forward as credits for a maximum of one renewal year
Study Notes
North Carolina Regulations for Auctioneers
- Auctioneers must deposit any payments not disbursed to the seller on auction day into an escrow account for the benefit of the owner or seller of the property within three business days.
- Licensees who disburse any funds on auction day must prepare a receipt or settlement statement and maintain records in compliance with state regulations.
- Auction firms that do not disburse all funds to the seller on auction day must establish and maintain a separate bank account designated as a "Custodial Account for Sellers Proceeds" for trust funds.
- Custodial accounts must be established and maintained in banks, credit unions, or savings and loan associations located in North Carolina whose deposits are insured by a recognized insurance agency or program.
- Funds in the custodial account can only be drawn for payment of net proceeds to the seller, charges against the property, and compensation for the auctioneer/firm's services.
- In the event of a dispute, the licensee must retain the monies in their trust or escrow account until obtaining written consent from the parties or until disbursement is ordered by a court of competent jurisdiction.
- All auction agreements, registration, sales, and accounting records must be maintained at the site during the auction and made available to the Board or its staff upon request.
- Auction houses, barns, or galleries can enter into a written agreement with repeat dealers or sellers for an extended period of time, not exceeding one year.
- Consignment and sales records must be kept by the licensee for a period of two years, while bidder registration records must be kept for two years from the date of the auction.
- Auctioneers are prohibited from bidding on items in sales they are conducting, except in sales with reserve, where they may bid up to the amount of the reserve price without the intent to purchase.
- All licensed auction firms must have at least one Board-approved designated person, who has the authority to transact business under the firm license, including arranging, managing, and contracting auctions, supervising the auction staff, and accepting payment and disbursement of monies.
- To renew a license in active status, auctioneers, apprentice auctioneers, or designated persons in an auction firm must complete Board-approved courses consisting of four hours of instruction each year and provide documentation of completion to the Board. Excess continuing education hours can be carried forward as credits for a maximum of one renewal year.
North Carolina Regulations for Auctioneers
- Auctioneers must deposit any payments not disbursed to the seller on auction day into an escrow account for the benefit of the owner or seller of the property within three business days.
- Licensees who disburse any funds on auction day must prepare a receipt or settlement statement and maintain records in compliance with state regulations.
- Auction firms that do not disburse all funds to the seller on auction day must establish and maintain a separate bank account designated as a "Custodial Account for Sellers Proceeds" for trust funds.
- Custodial accounts must be established and maintained in banks, credit unions, or savings and loan associations located in North Carolina whose deposits are insured by a recognized insurance agency or program.
- Funds in the custodial account can only be drawn for payment of net proceeds to the seller, charges against the property, and compensation for the auctioneer/firm's services.
- In the event of a dispute, the licensee must retain the monies in their trust or escrow account until obtaining written consent from the parties or until disbursement is ordered by a court of competent jurisdiction.
- All auction agreements, registration, sales, and accounting records must be maintained at the site during the auction and made available to the Board or its staff upon request.
- Auction houses, barns, or galleries can enter into a written agreement with repeat dealers or sellers for an extended period of time, not exceeding one year.
- Consignment and sales records must be kept by the licensee for a period of two years, while bidder registration records must be kept for two years from the date of the auction.
- Auctioneers are prohibited from bidding on items in sales they are conducting, except in sales with reserve, where they may bid up to the amount of the reserve price without the intent to purchase.
- All licensed auction firms must have at least one Board-approved designated person, who has the authority to transact business under the firm license, including arranging, managing, and contracting auctions, supervising the auction staff, and accepting payment and disbursement of monies.
- To renew a license in active status, auctioneers, apprentice auctioneers, or designated persons in an auction firm must complete Board-approved courses consisting of four hours of instruction each year and provide documentation of completion to the Board. Excess continuing education hours can be carried forward as credits for a maximum of one renewal year.
North Carolina Regulations for Auctioneers
- Auctioneers must deposit any payments not disbursed to the seller on auction day into an escrow account for the benefit of the owner or seller of the property within three business days.
- Licensees who disburse any funds on auction day must prepare a receipt or settlement statement and maintain records in compliance with state regulations.
- Auction firms that do not disburse all funds to the seller on auction day must establish and maintain a separate bank account designated as a "Custodial Account for Sellers Proceeds" for trust funds.
- Custodial accounts must be established and maintained in banks, credit unions, or savings and loan associations located in North Carolina whose deposits are insured by a recognized insurance agency or program.
- Funds in the custodial account can only be drawn for payment of net proceeds to the seller, charges against the property, and compensation for the auctioneer/firm's services.
- In the event of a dispute, the licensee must retain the monies in their trust or escrow account until obtaining written consent from the parties or until disbursement is ordered by a court of competent jurisdiction.
- All auction agreements, registration, sales, and accounting records must be maintained at the site during the auction and made available to the Board or its staff upon request.
- Auction houses, barns, or galleries can enter into a written agreement with repeat dealers or sellers for an extended period of time, not exceeding one year.
- Consignment and sales records must be kept by the licensee for a period of two years, while bidder registration records must be kept for two years from the date of the auction.
- Auctioneers are prohibited from bidding on items in sales they are conducting, except in sales with reserve, where they may bid up to the amount of the reserve price without the intent to purchase.
- All licensed auction firms must have at least one Board-approved designated person, who has the authority to transact business under the firm license, including arranging, managing, and contracting auctions, supervising the auction staff, and accepting payment and disbursement of monies.
- To renew a license in active status, auctioneers, apprentice auctioneers, or designated persons in an auction firm must complete Board-approved courses consisting of four hours of instruction each year and provide documentation of completion to the Board. Excess continuing education hours can be carried forward as credits for a maximum of one renewal year.
North Carolina Regulations for Auctioneers
- Auctioneers must deposit any payments not disbursed to the seller on auction day into an escrow account for the benefit of the owner or seller of the property within three business days.
- Licensees who disburse any funds on auction day must prepare a receipt or settlement statement and maintain records in compliance with state regulations.
- Auction firms that do not disburse all funds to the seller on auction day must establish and maintain a separate bank account designated as a "Custodial Account for Sellers Proceeds" for trust funds.
- Custodial accounts must be established and maintained in banks, credit unions, or savings and loan associations located in North Carolina whose deposits are insured by a recognized insurance agency or program.
- Funds in the custodial account can only be drawn for payment of net proceeds to the seller, charges against the property, and compensation for the auctioneer/firm's services.
- In the event of a dispute, the licensee must retain the monies in their trust or escrow account until obtaining written consent from the parties or until disbursement is ordered by a court of competent jurisdiction.
- All auction agreements, registration, sales, and accounting records must be maintained at the site during the auction and made available to the Board or its staff upon request.
- Auction houses, barns, or galleries can enter into a written agreement with repeat dealers or sellers for an extended period of time, not exceeding one year.
- Consignment and sales records must be kept by the licensee for a period of two years, while bidder registration records must be kept for two years from the date of the auction.
- Auctioneers are prohibited from bidding on items in sales they are conducting, except in sales with reserve, where they may bid up to the amount of the reserve price without the intent to purchase.
- All licensed auction firms must have at least one Board-approved designated person, who has the authority to transact business under the firm license, including arranging, managing, and contracting auctions, supervising the auction staff, and accepting payment and disbursement of monies.
- To renew a license in active status, auctioneers, apprentice auctioneers, or designated persons in an auction firm must complete Board-approved courses consisting of four hours of instruction each year and provide documentation of completion to the Board. Excess continuing education hours can be carried forward as credits for a maximum of one renewal year.
Test your knowledge on North Carolina regulations for auctioneers with this informative quiz! From escrow accounts to custodial accounts and bidder registration records, this quiz covers all the essential rules and regulations that govern the auction industry in North Carolina. Sharpen your understanding of key terms and concepts, and see how much you really know about auctioneering in the Tar Heel State. Take the quiz now and put your knowledge to the test!
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