AUCTIONEER LICENSE UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
COMPREHENSIVE STUDY GUIDE
●● T or F. An auctioneer owes a tax or fee to the state based on his
services for each auction.
Answer: False. Auctioneers cannot be taxed on their services if they are
duly licensed.
●● T or F. A person auctioning items online needs a license.
Answer: False. Licenses not required for online auctions/sales.
●● A licensed auctioneer can perform an auction for what three entities?
Answer: 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.
Answer: 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?
Answer: 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?
Answer: 2; AND then must wait a year to re-apply.
●● Does Texas allow auction license reciprocity?
Answer: 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?
Answer: Advise the commission on educational matters, operational
matters and common practices in auction industry.
●● The advisory board consists of?
Answer: 7 members, 4 licensed auctioneers, 2 public at large, 1
administrative head from the state
●● What is the term of an advisory board member?
, Answer: 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?
Answer: 2 years, no more than 2 consecutive terms
●● Are advisory board members compensated?
Answer: No
●● What is the "Fund"?
Answer: 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.
Answer: $350,000
●● Funds in excess of what amount may be used for furthering
auctioneer education and training?
Answer: $300,000
●● Who may initiate a claim against the Fund for actions by a licensee?
QUESTIONS AND CORRECT ANSWERS
COMPREHENSIVE STUDY GUIDE
●● T or F. An auctioneer owes a tax or fee to the state based on his
services for each auction.
Answer: False. Auctioneers cannot be taxed on their services if they are
duly licensed.
●● T or F. A person auctioning items online needs a license.
Answer: False. Licenses not required for online auctions/sales.
●● A licensed auctioneer can perform an auction for what three entities?
Answer: 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.
Answer: 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?
Answer: 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?
Answer: 2; AND then must wait a year to re-apply.
●● Does Texas allow auction license reciprocity?
Answer: 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?
Answer: Advise the commission on educational matters, operational
matters and common practices in auction industry.
●● The advisory board consists of?
Answer: 7 members, 4 licensed auctioneers, 2 public at large, 1
administrative head from the state
●● What is the term of an advisory board member?
, Answer: 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?
Answer: 2 years, no more than 2 consecutive terms
●● Are advisory board members compensated?
Answer: No
●● What is the "Fund"?
Answer: 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.
Answer: $350,000
●● Funds in excess of what amount may be used for furthering
auctioneer education and training?
Answer: $300,000
●● Who may initiate a claim against the Fund for actions by a licensee?
