Texas Auctioneer License Part 2 Questions
and Answers | Newest Study Guide with
Solutions | Grade A+
• Name some persons that are exempt from needing an auctioneer license. -✓✓1.
U.S. court ordered sale
2. A government sponsored or conducted sale.
3. A charitable organization as long as no compensation
4. A sale of real property by a trustee under a security instrument.
5.A sale of real property by an owner with an interest or employee (unless he/she is
a licensed auctioneer by trade) and all property is under a security instrument
6. sealed bid auction w/o option to bid again
7. livestock sales
8. automobile auctions
• T or F. An auctioneer owes a tax or fee to the state based on his services for each
auction. -✓✓False. Auctioneers cannot be taxed on their services if they are duly
licensed.
• T or F. A person auctioning items online needs a license. -✓✓False. Licenses not
required for online auctions/sales.
• A licensed auctioneer can perform an auction for what three entities? -✓✓1. a
registered auction firm 2. a real estate broker with an auction license 3. a dealer or
wholesaler of motor vehicles if they hold the proper registered number.
• Name the requirements for obtaining an auction license. -✓✓1. at least 18 years
of age.
2. has a high school diploma
3. is a U.S. citizen or legal alien
4. has taken 80 hours of approved coursework
5. has passed a state exam OR
6. has worked two years for a licensed auctioneer and has worked 10 auctions
• What are the requirements to receive an associate auctioneer license? -✓✓1.
Works for a licensed auctioneer.
2. is a U.S. citizen or legal alien
, • How many times may an applicant re-test per year? -✓✓2; AND then must wait a
year to re-apply.
• Does Texas allow auction license reciprocity? -✓✓Yes, as long as the state or
jurisdiction has similar laws and processes; nonresidents must provide a signed
consent to service.
• What are the Auction Advisory Board's responsiblities? -✓✓Advise the
commission on educational matters, operational matters and common practices in
auction industry.
• The advisory board consists of? -✓✓7 members, 4 licensed auctioneers, 2 public
at large, 1 administrative head from the state
• What is the term of an advisory board member? -✓✓2 years, no more than 2
consecutive terms
• The presiding officer of the commission appoints the next presiding officer from
the advisory board. What is the term for the officer? -✓✓2 years, no more than 2
consecutive terms
• Are advisory board members compensated? -✓✓No
• What is the "Fund"? -✓✓The recovery fund set up to pay claims made against
licensed auctioneers.
• It the recovery fund drops below this amount, licensees must contribute at their
next license renewal. -✓✓$350,000
• Funds in excess of what amount may be used for furthering auctioneer education
and training? -✓✓$300,000
• Who may initiate a claim against the Fund for actions by a licensee? -✓✓1. a
complainant or aggrieved party 2. the executive director of the commission
• Can a decision by the commission on a complaint be appealed? -✓✓Yes.
and Answers | Newest Study Guide with
Solutions | Grade A+
• Name some persons that are exempt from needing an auctioneer license. -✓✓1.
U.S. court ordered sale
2. A government sponsored or conducted sale.
3. A charitable organization as long as no compensation
4. A sale of real property by a trustee under a security instrument.
5.A sale of real property by an owner with an interest or employee (unless he/she is
a licensed auctioneer by trade) and all property is under a security instrument
6. sealed bid auction w/o option to bid again
7. livestock sales
8. automobile auctions
• T or F. An auctioneer owes a tax or fee to the state based on his services for each
auction. -✓✓False. Auctioneers cannot be taxed on their services if they are duly
licensed.
• T or F. A person auctioning items online needs a license. -✓✓False. Licenses not
required for online auctions/sales.
• A licensed auctioneer can perform an auction for what three entities? -✓✓1. a
registered auction firm 2. a real estate broker with an auction license 3. a dealer or
wholesaler of motor vehicles if they hold the proper registered number.
• Name the requirements for obtaining an auction license. -✓✓1. at least 18 years
of age.
2. has a high school diploma
3. is a U.S. citizen or legal alien
4. has taken 80 hours of approved coursework
5. has passed a state exam OR
6. has worked two years for a licensed auctioneer and has worked 10 auctions
• What are the requirements to receive an associate auctioneer license? -✓✓1.
Works for a licensed auctioneer.
2. is a U.S. citizen or legal alien
, • How many times may an applicant re-test per year? -✓✓2; AND then must wait a
year to re-apply.
• Does Texas allow auction license reciprocity? -✓✓Yes, as long as the state or
jurisdiction has similar laws and processes; nonresidents must provide a signed
consent to service.
• What are the Auction Advisory Board's responsiblities? -✓✓Advise the
commission on educational matters, operational matters and common practices in
auction industry.
• The advisory board consists of? -✓✓7 members, 4 licensed auctioneers, 2 public
at large, 1 administrative head from the state
• What is the term of an advisory board member? -✓✓2 years, no more than 2
consecutive terms
• The presiding officer of the commission appoints the next presiding officer from
the advisory board. What is the term for the officer? -✓✓2 years, no more than 2
consecutive terms
• Are advisory board members compensated? -✓✓No
• What is the "Fund"? -✓✓The recovery fund set up to pay claims made against
licensed auctioneers.
• It the recovery fund drops below this amount, licensees must contribute at their
next license renewal. -✓✓$350,000
• Funds in excess of what amount may be used for furthering auctioneer education
and training? -✓✓$300,000
• Who may initiate a claim against the Fund for actions by a licensee? -✓✓1. a
complainant or aggrieved party 2. the executive director of the commission
• Can a decision by the commission on a complaint be appealed? -✓✓Yes.
