TEXAS AUCTIONEER LICENSE EXAM ACTUAL
EXAM COMPLETE 200 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) / ALREADY GRADED A+
Name some persons that are exempt from needing an auctioneer license. - ANSWER1.
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. - ANSWERFalse. Auctioneers cannot be taxed on their services if they are duly
licensed.
T or F. A person auctioning items online needs a license. - ANSWERFalse. Licenses
not required for online auctions/sales.
A licensed auctioneer can perform an auction for what three entities? - ANSWER1. 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. - ANSWER1. 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? - ANSWER1.
Works for a licensed auctioneer.
2. is a U.S. citizen or legal alien
How many times may an applicant re-test per year? - ANSWER2; AND then must wait a
year to re-apply.
,Does Texas allow auction license reciprocity? - ANSWERYes, 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? - ANSWERAdvise the
commission on educational matters, operational matters and common practices in
auction industry.
The advisory board consists of? - ANSWER7 members, 4 licensed auctioneers, 2 public
at large, 1 administrative head from the state
What is the term of an advisory board member? - ANSWER2 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? - ANSWER2 years, no more than 2
consecutive terms
Are advisory board members compensated? - ANSWERNo
What is the "Fund"? - ANSWERThe 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? - ANSWER1. a
complainant or aggrieved party 2. the executive director of the commission
Can a decision by the commission on a complaint be appealed? - ANSWERYes.
A payment from the Fund to an aggrieved party cannot include payments on certain
expenses. What are they? - ANSWERAttorneys 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___________? - ANSWER$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? - ANSWERYes, 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.
- ANSWERFalse
Name the reasons the commission may deny, revoke or suspend a auction license? -
ANSWER1. 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. -
ANSWERTrue
What is an absolute auction? - ANSWERAn 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.
What is a reserve auction? - ANSWERAn auction where there is a minimum acceptable
bid, where seller has complete authority to reject or accept bids and which can be
ended at any time before completion of the auction.
When must an auction license be renewed? - ANSWERIn one year
How many hours of continuing education is required for an auction licensee? -
ANSWER6 hours, 2 of which are law hours
What must be included on an advertisement for an auction? - ANSWERThe
auctioneer's name, license number, if the auction will be ABSOLUTE. If titled
ABSOLUTE, no items or lots may have a reserve. You CAN state in the ad that "some
items or lots may not have a reserve". Ad must state if there will be a buyer's premium
How long must an auctioneer retain records pertaining to an auction? - ANSWER2
years
How many auction companies/firms may a licensee own? - ANSWERAs many as he
wants to own. But ALL must be registered with the State, name, address, etc.
Address changes for auctioneers/firms must be submitted to the commission within how
many days? - ANSWER30 days
Any monies held for others must be deposited into a federally insured trust account by
what deadline? - ANSWER72 hours; unless the seller is paid immediately from the sale
or in the case of a sight draft (contract for later payment).
If the commission requests records from a licensee for an investigation, how long does
he/she have to respond? - ANSWER30 days
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