| (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.
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