Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 4 - TEXAS DEPARTMENT OF LICENSING AND REGULATION
Chapter 67 - AUCTIONEERS
Section 67.70 - Auctioneer Standards of Practice
Universal Citation: 16 TX Admin Code ยง 67.70
Current through Reg. 49, No. 12; March 22, 2024
(a) Advertising
(1) All advertisements designed
to solicit auction business, including the advertisement of an auction, shall
include the auctioneer's name as it appears on the license and the license
number.
(2) If an auctioneer
advertises an auction as "absolute" or "without reserve", no lots included may
have a minimum bid. Advertising may include the wording "many lots are without
reserve"; however, the auction may not be titled, headed or called an
"absolute" or "without reserve" auction unless all lots meet the
criteria.
(3) An auctioneer who
intends to charge a buyer's premium at an auction must state this condition and
the amount of the buyer's premium in all advertising for the auction.
(4) An auctioneer may not make a false or
misleading statement in an advertisement.
(b) Recordkeeping
(1) An auctioneer must furnish to the
department the name, including assumed names, addresses, website, or social
media pages, and telephone numbers of all auction companies that the auctioneer
owns or operates.
(2) An auctioneer
must report any change of address to the department in writing within thirty
(30) days of the change.
(3) Each
licensed auctioneer shall keep records relative to all auctions for a minimum
of two (2) years from the date of the sale.
(4) The records for each auction must state
the name(s) and address of the owners of the property auctioned, the date of
the sale, the name of the auctioneer and clerk of the sale, the gross proceeds,
the location and account number of the auctioneer's trust or escrow account, an
itemized list of all expenses charged to the consignor or seller, a list of all
purchasers at the auction and a description and selling price for each item
sold.
(5) The auctioneer shall
keep, as part of the records for each auction, all documents relating to the
auction, These documents shall include, but are not limited to, settlement
sheets, written contracts, copies of advertising and clerk sheets.
(6) These documents include records and
documents online.
(7) Each licensed
auctioneer must:
(A) Maintain a separate trust
or escrow account in a federally insured bank or savings and loan association,
in which shall be deposited all funds belonging to others which come into the
auctioneer's possession and control.
(B) Deposit all proceeds from an auction into
the trust or escrow account within seventy two (72) hours of the auction unless
the owner or consignor of the property auctioned is paid immediately after the
sale or the written contract stipulates other terms, such as sight
drafts.
(C) Pay any public monies,
including, but not limited to state sales tax, received into the State Treasury
at the times and as per the regulations prescribed by law; and
(D) Pay all amounts due the seller or
consignor within fifteen (15) banking days of the auction unless otherwise
required by statute or a written contract between license holder and
seller.
(8) A licensed
auctioneer shall cooperate with the department in the performance of an
investigation. This includes, but is not limited to responding to requests from
the department, including producing requested documents or other information,
within thirty (30) days of request.
(9) The failure of a licensed auctioneer to
timely pay a consignor may subject the licensed auctioneer to a claim under the
Auctioneer Education and Recovery Fund.
(c) At auction
(1) Before beginning an auction, a licensee
must ensure the announcement of, give notice, display notice or disclose:
(A) that the auctioneer conducting the sale
is licensed by the department;
(B)
the terms and conditions of the sale including whether a buyer's premium will
be assessed; and
(C) if the owner,
consignor, or agent thereof has reserved the right to bid.
(2) A licensee may not allow any person who
is not either a Texas licensed auctioneer or associate auctioneer who is
directly supervised by a licensed auctioneer, to call bids at a sale.
(3) A licensee may not knowingly use or
permit the use of false bidders at any auction.
(4) All licensed auctioneers shall notify
consumers and service recipients of the department's name, mailing address,
telephone number and website "www.tdlr.texas.gov" for purposes of directing
complaints to the department. The notification shall be included on any auction
listing contract and on at least one of the following:
(A) A sign prominently displayed at the place
of the auction or on any auction website;
(B) Bills of sale or receipt to be given to
buyers; or
(C) Bidder
cards.
Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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