IN Auctioneer cheat sheet

Authority stack: the Auctioneer Licensing Act, IC 25-6.1, plus commission rules in 876 IAC; the Indiana Auctioneer Commission, supported by the Indiana Professional Licensing Agency, licenses, investigates, and disciplines.

Two credentials exist: an individual auctioneer license and an auction company license. A company must designate a licensed auctioneer as its principal, and the company credential depends on that individual holding a valid license.

Eligibility baseline to sit for the licensing exam: at least 18 years old, high school diploma or GED, completion of commission-approved pre-licensing coursework, and a passing examination score.

Continuing education approved by the commission is required for renewal; retain completion certificates because the commission can audit, and a lapsed license cannot be cured by paying a fee alone.

Trust accounting rule: deposits, settlement proceeds, and other client money go into a separate escrow or trust account; client funds are never commingled with operating funds.

Advertising requirement: auction advertising must identify the licensed auctioneer or auction company and the license number, together with sale date, time, location, and material terms.

Unlicensed practice: calling an auction for compensation without a valid license exposes the caller to civil penalties and injunctive action by the state, and clouds the resulting sale contracts.

Disciplinary tools available to the commission include reprimand, probation with conditions, suspension, revocation, and civil penalties, supported by subpoena power over licensee records and testimony.

Fiduciary core: loyalty, obedience to lawful seller instructions, disclosure of material facts, confidentiality, reasonable care, and accurate accounting for all money and property handled.

Dual interest decision rule: if the auctioneer, a family member, or a business affiliate intends to buy a consigned lot, written disclosure to the seller must be made before the sale.

Bid integrity: no shill bidding, no bid rigging or bid pooling among bidders, and no accepting compensation from a buyer in exchange for steering or suppressing bidding.

Seller bids are permitted only on a reserve lot, only up to the reserve amount, and only when the practice and the reserve are disclosed in the announced terms of sale.

Confidentiality scope: the reserve amount, competing bidders' identities, and maximum bids are not disclosed without authorization and are not used as marketing content.

Material misdescription discovered before closing must be corrected and announced; after closing, remedy runs through rescission or price adjustment under the announced terms.

Fairness rule: the same information goes to every bidder, bid increments and tie-breaking are applied consistently, and no bidder receives access to lots or condition facts withheld from others.

Custody of consigned goods: inventory, insure, and store property as agreed, and treat unauthorized removal or private sale off the block as a fiduciary breach.

Agency default: the auctioneer is the seller's agent, so fiduciary duties run to the seller while duties of honesty and fair disclosure run to bidders.

Written contract before the sale should cover parties, sale date and location, lot list, commission and fee schedule, reserve, buyer's premium, tax handling, advertising cost, insurance, withdrawal rights, and settlement date.

Listing type sets commission exposure: exclusive right to sell pays the commission regardless of who procures the buyer; exclusive agency leaves a seller-procured sale commission-free; an open listing pays only the procuring licensee.

Reserve status must be announced before bidding: with reserve, the seller may withdraw before completion and need not sell below the reserve; absolute, the lot goes to the highest bidder.

Indiana UCC IC 26-1-2-328 completes the sale on the fall of the hammer; a bidder may retract a bid before completion is announced, and a retraction does not revive an earlier bid.

The auctioneer's authority is limited to what the contract grants; there is no implied power to warrant condition, extend credit, or alter announced terms without seller authorization.

Title check: obtain a seller's ownership statement and lien releases before cataloging, because the seller warrants good title and the buyer expects clear title at settlement.

Cancellation and withdrawal clauses should allocate commission and incurred expenses, including advertising already placed, when the seller cancels the sale or pulls a lot.

Ad content checklist: licensed name and license number, date, time, location, preview times, reserve or absolute status, buyer's premium percentage, sales tax, payment methods, and removal deadline.

Prohibited claims: calling a sale absolute when a reserve exists, describing used goods as new, and omitting known defects, repairs, or restoration from the description.

Catalog rule: each lot receives a unique number, a factual description, a condition grade, and disclosure of known faults; when uncertain, describe the uncertainty rather than omit it.

Pre-sale sequence: consignment intake, inventory, photography, lotting order, preview, and bidder registration with identification and assigned bidder numbers.

Opening announcement: terms of sale, reserve status, bid increments, tie bid resolution, the auctioneer's final say on disputes, and payment and removal rules.

Online and simulcast sales follow the same disclosure rules as live sales, plus published closing mechanics such as a soft close and shipping or pickup terms.

Order of sale: sell in catalog order or announce a different order in advance; skipping back and forth to favor particular bidders or conceal an item's offering is a conduct violation.

Retain copies of advertising and catalogs in the sale file, because the commission can compare the advertising claims against the terms actually conducted.

Buyer total = hammer price + buyer's premium + sales tax on the taxable amount + disclosed fees. Example: 1,000 hammer, 10 percent premium, 7 percent tax = 1,177.

Seller net = hammer price − commission − seller-paid fees and expenses. Example: 1,000 hammer at 20 percent commission nets 800 before other charges.

Commission base must be stated in the contract: hammer price alone or hammer plus premium; common trade practice is to apply the percentage to the hammer price.

Indiana sales tax is 7 percent statewide with no local add-on, generally applied to the hammer price plus buyer's premium on taxable tangible personal property.

Exemption documentation: resale certificates and exempt-entity certificates must be collected at or before the sale; without documentation the transaction is taxed.

Escrow flow: buyer deposits into trust, cleared funds only, then disbursement to the seller in accordance with the settlement statement; never disburse against uncleared checks.

Settlement statement lines: lot number, description, hammer price, premium, commission, advertising, labor and hauling, tax, and net due, with the arithmetic shown.

Records retained for the period set by rule: consignment contract, bidder registrations, clerking sheets or bid logs, advertising copies, exemption certificates, and settlement statements.