85B-7 Conduct of Auction; records

What must be included in a settlement statement provided to the seller or consignor?

How long must a licensee maintain records related to trust or escrow funds?

Who is responsible for signing the settlement statements?

What may the Commission or its designated agent do regarding the records maintained by the licensee?

What should records of funds disbursed on auction day include?

What must a licensee provide to the owner after entering into an auction agreement?

For how long should a licensee retain a copy of the auction agreement?

What information is NOT required in consignment records maintained by a licensee?

What is required for the sales records maintained by a licensee?

What must a licensee do if they do not disburse all funds to the seller on auction day?

What type of institution must a licensee use for their trust or escrow account?

How long must the sales records be maintained by a licensee?

Who has the right to inspect the consignment and sales records maintained by a licensee?

Auction Conduct and Licensing

Written Agreement: Auctioneers must have a written agreement with the property owner outlining the terms of the sale. The agreement must be signed by both the auctioneer and the seller and kept on file for at least two years.
Consignment Records: Auctioneers must maintain records detailing the goods received for auction, including the seller's and owner's names and addresses, an adequate description of the goods, and the goods’ identification information. These records are open for inspection by the commission at reasonable times.
License Availability: Auctioneers must have their licenses available at all auctions they conduct.
Sales Records: Auctioneers must maintain sales records with purchaser information (name, address, and phone number if possible), adequate description of the items sold, and the owner’s identification information. These records are open for inspection by the commission at reasonable times.

Handling Client Funds

Trust or Escrow Account: Auctioneers who don't disburse all funds to the seller on auction day must maintain a trust or escrow account with a federally insured depository institution or a trust institution authorized to do business in the state.
Settlement Statements: Auctioneers must provide sellers or consignors with a settlement statement outlining the goods sold, selling prices, net proceeds, recipient of the disbursement, and the amount of the disbursement. The statement must be signed by the auctioneer or their agent and the recipient of the disbursement.
Record Keeping: Auctioneers must keep complete records of trust or escrow funds for at least five years, including deposit, maintenance, withdrawal, and disbursement information.
Inspection: The Commission or its designated agent can inspect these records periodically without prior notice if they are relevant to an investigation of a complaint against a licensee.

Test your knowledge on the regulations surrounding auction conduct and licensing. This quiz covers essential topics such as written agreements, consignment records, and maintaining necessary licenses. Ensure you're well-informed about the responsibilities of auctioneers in the industry.