Did
you know to perform a legal mini-storage auction in California; the person
doing the bid calling must have an auctioneer’s bond? According to the Civil Code 1812.600, a
person who either calls for bids or make offers for the purchase of goods at an
auction is required by California law to have an auctioneer’s bond.
Many
acting as auctioneers believe they can “do” the job, however, history has
proven otherwise. These “auctioneers” operate with little or no regard to legal
repercussions. A person driving without
a license may feel they are more than adequate to drive. In the same manner, a non-bonded auctioneer
may feel he is capable of calling an auction. In reality, both the unlicensed driver and the
non-bonded auctioneer don’t fully comprehend the perils involved conducting these
illegal activities.
Codes
pursuant to California Statutes, Business, and Professions Code, Section 21700
and Title 2.95 Section 1812.600-607, are required to obtain an auction bond. Not having an auction bond will create
potential lawsuits. Even the most innocent of mistakes can result in huge
losses. Cases of non-bonded auctioneers conducting auctions have increased. Lawsuits tie up valuable time and money for
the owner/stockholder/manager, of these storage sites.
In
the past, not having a bond may have been overlooked. Currently, lack of an auction bond is an open
invitation to take you, the owner/manager, to court. Sadly enough, the sole responsibility
falls on the storage site to prove why it acted “recklessly”, by not having a
bonded auctioneer that would have recognized the error immediately.
Attempting
to conduct auctions without education skills, will invariably result in
catastrophe. It takes years to acquire the skills of a truly qualified and
bonded auctioneer. The chances of lawsuits can be minimized dramatically by
simply using the services of a professional storage auctioneer.
When
choosing an auctioneer to conduct your storage auctions, make sure they have
experience in selling storage units. Since the TV shows have aired, several
people think they can do what the TV makes look easy. Also ask to see their
bond number, liability insurance and E & O insurance policies. If you are
using an auctioneer to help shield you from lawsuits, make sure they have the
proper tools, paperwork, insurance and education to execute this need.
A
storage auction expert will focus their attention on drawing the right crowd to
insure the units are auctioned for the maximum return for your
establishment. They will under all
circumstances maintain total crowd control.
If you ever had the displeasure of being engulfed in an unruly crowd,
you immediately understand this alone can justify having professionals on site.
By using a professional, you are assured the work will be done in a timely
manner, within on budget, and above all, properly.
There
is an old proverb that says, “A wise man will change”. Hopefully, this article
will enlighten those “auctioneers” who are attempting to work without a bond
risking potential violations. Only
those who have been trained and bonded have the ability to avoid these legal
pitfalls. It is of the utmost importance
you are fully aware of the responsibility you accept by not being bonded if you
are conducting your own auctions!
John Cardoza, CAI, BAS, CES, CAGA
Owner, Storage Auction Experts
