Auctioneers Penalties and Sanctions

Failed to include name and license number in advertisement

 67.70(a)(1)

Failed to furnish to Department the name, including assumed names, addresses, website, or social media pages, and phone numbers of all auction companies

67.70(b)(1)

Failed to announce, give notice, display or disclose auctioneer is licensed

67.70(c)(1)(A) 

Failed to announce, give notice, display or disclose terms and conditions of the sale

67.70(c)(1)(B) 

Failed to announce, give notice, display or disclose if owner has reserved right to bid

67.70(c)(1)(C) 

Failed to notify consumers of Department information

67.70(c)(4)

Failed to report change of address

67.70(b)(2); 67.72(d) 

Performing as an auctioneer or associate auctioneer without a license 

1802.051(a)

Act as auctioneer for auction company not owned or operated by licensee

1802.051(c)

Auctioned vehicles for an entity that arranges or manages car auctions but does not hold a dealer general distinguishing number or salvage vehicle dealer license

1802.051(d)

Allowed unlicensed auctioneer to call bids

67.70(c)(2) 

Advertised auction as “absolute” or “without reserve” when minimum bids required

67.70(a)(2)

Failed to announce, give notice, display or disclose a buyer’s premium before auction

67.70(c)(1)(B)

Failed to state buyer’s premium in advertisement

67.70(a)(3)

Failure of supervising auctioneer to be on premises and directly supervising when associate is bid calling

67.71(b)

Failure of sponsoring auctioneer to provide signed documentation to associate auctioneer upon termination of sponsorship

67.71(d)(2)

Associate auctioneer providing auction services without a sponsoring auctioneer

67.72(a), 67.72(e)

Associate auctioneer bid called an auction without a sponsoring auctioneer on premises or providing direct supervision

67.72(b)

Failed to provide a party with a written contract with terms of the agreement

1802.121(a),

67.70(b)(4)

Before the auction, failed to agree in writing to an itemized inventory of property to be sold or offered by sale

1802.121(c),

67.70(b)(4)-(6)

Failed to put into writing and have signed by both parties any amendment to the inventory

1802.121(c),

67.70(b)(6)

Failed to account for or remit money belonging to another

1802.251(5)

Commingling funds of another with own funds

1802.251(5)

Failed to pay funds due to seller within 15 banking days of auction

1802.251(5), 67.70(b)(10)(D)

Failed to maintain escrow account

67.70(b)(10)(A)

Failed to deposit auction proceeds in escrow account within 72 hours of auction

67.70(b)(10)(B)

Failed to pay public monies as required by law

67.70(b)(10)(C)

Failed to cooperate with the Department in the performance of an investigation

67.70(b)(11)

Failed to keep records relative to an auction for 2 years

67.70(b)(3)

Failed to include, in records kept for an auction, any of the following: 

• names and addresses of consignors
• date of the auction
• name of auctioneer and clerk for sale
• gross proceeds
• location and account number of escrow account
• itemized list of expenses charged to consignor
• list of all purchasers
• description and selling price of each item sold

67.70(b)(7)

Failed to keep all documents relating to an auction

67.70(b)(8)

Flagrant course of misrepresentation or making false promises

1802.251(4)

Violation of Business and Commerce Code (DTPA)

1802.251(6)

Used or permitted use of false bidders

67.70(c)(3)

Obtained license by fraud or false representation

1802.251(2),

60.23(a)(1)

Substantial misrepresentation on application

1802.251(3)

Failed to comply with previous order of Commission/Executive Director

1802.251(7), 51.353(a)

Payment is made from the recovery fund as the result of an action of the license holder

1802.252(a), 67.40

Failed to pay the Department for a dishonored check

60.82