TEXAS AUCTIONEER LICENSE-PART 2 EXAM | COMPLETE
QUESTIONS AND CORRECT ANSWERS | 2026 UPDATE |
GRADED A+
• 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.
• A payment from the Fund to an aggrieved party cannot include payments on certain
expenses. What are they? -✓✓ Attorneys fees, profits, speculative damages
• The limit on a payout from the fund for an aggrieved party is_____________? The limit
on a payout for a single auction is ___________? The limit on payout to a single
auctioneer is___________? -✓✓ $15,000, $30,000, $30,000
• Must a licensee against which a claim was made that results in a payout to a party be
responsible to reimburse the Fund? -✓✓ Yes, immediately, and he/she must pay
anything he/she owes to the aggrieved party at that time as well; he CAN pay back the
Fund on a schedule with 8% interest approved by the commission.
• T or F. A payment from the Fund negates all other disciplinary action against a
licensee. -✓✓ False
• Name the reasons the commission may deny, revoke or suspend a auction license? -
✓✓ 1. violating any laws or rules pertaining to conducting auction business 2.
misrepresentation or fraud when obtaining a license 3. misrepresentation in advertising
4. commingling or conversion of trust monies 5. violating a provision of the Business
and Commerce Code. 6. when payment is made from the Fund (licensee may not work
as auctioneer until payments are completed to the Fund.
• T or F. Acting as an auctioneer without a license is a Class B misdemeanor. -✓✓ True
• What is an absolute auction? -✓✓ An auction where there is no reserve set and which
cannot be ended once a bid is made AND which a seller cannot participate in as a
bidder.
QUESTIONS AND CORRECT ANSWERS | 2026 UPDATE |
GRADED A+
• 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.
• A payment from the Fund to an aggrieved party cannot include payments on certain
expenses. What are they? -✓✓ Attorneys fees, profits, speculative damages
• The limit on a payout from the fund for an aggrieved party is_____________? The limit
on a payout for a single auction is ___________? The limit on payout to a single
auctioneer is___________? -✓✓ $15,000, $30,000, $30,000
• Must a licensee against which a claim was made that results in a payout to a party be
responsible to reimburse the Fund? -✓✓ Yes, immediately, and he/she must pay
anything he/she owes to the aggrieved party at that time as well; he CAN pay back the
Fund on a schedule with 8% interest approved by the commission.
• T or F. A payment from the Fund negates all other disciplinary action against a
licensee. -✓✓ False
• Name the reasons the commission may deny, revoke or suspend a auction license? -
✓✓ 1. violating any laws or rules pertaining to conducting auction business 2.
misrepresentation or fraud when obtaining a license 3. misrepresentation in advertising
4. commingling or conversion of trust monies 5. violating a provision of the Business
and Commerce Code. 6. when payment is made from the Fund (licensee may not work
as auctioneer until payments are completed to the Fund.
• T or F. Acting as an auctioneer without a license is a Class B misdemeanor. -✓✓ True
• What is an absolute auction? -✓✓ An auction where there is no reserve set and which
cannot be ended once a bid is made AND which a seller cannot participate in as a
bidder.
