Indiana's fund, Louisiana's bond, Wisconsin's register: auctioneer law

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Kooky

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Indiana, Wisconsin and Louisiana each regulate auctioneers under a statute of their own, and all three write real estate into their auction law, yet they protect the seller and the bidder in three different ways. Indiana runs a recovery fund paid for by its licensees. Louisiana asks every auctioneer to post a bond. Wisconsin relies on registration, a trust account open to audit and a statute that only allows a consumer fund to be proposed.

This guide sets out, state by state, who must hold a credential and who is exempt, the education and examination, the fees the regulators publish, what protects the public, how renewal works, which other states' licences are recognised, and what each law says when the thing under the hammer is land. It draws on each state's regulator and auction statute, and says so where they are silent.

Indiana Auctioneer Commission compilation of statutes and rules, April 2014 edition; Louisiana Auctioneers Licensing Law; Wisconsin Statutes chapter 480.

Who needs a credential, and who is exempt

In Indiana, the compilation of statutes and rules published by the Indiana Auctioneer Commission (April 2014 edition, reflecting the law as of 6 September 2013) defines an auction as a sale conducted through oral or written exchanges between an auctioneer and an audience, ending in acceptance of the highest or most favourable offer. An auctioneer is an individual who calls for and accepts offers at auction, or holds himself or herself out as available to do so. Under section 25-6.1-3-1 of the Indiana Code as printed in that edition, no individual may act as an auctioneer, and no person may operate an auction house or auction company, without a licence from the Commission. The same section lists four exemptions: owners selling goods or real estate they personally own and did not acquire for resale; auctions conducted by or under a public authority; auctions under a judicial order or to settle a decedent's estate; and sales by or for a political party, church or charitable organisation where the seller receives no compensation.

Wisconsin's chapter 480 defines an auctioneer as an individual who conducts, or holds himself or herself out as available to conduct, the calling for and acceptance of offers for goods or real estate at auction. Section 480.08 says no person may act as an auctioneer or use the title unless registered, and no person may act as an auction company unless registered as an auction company or as an auctioneer. Section 480.02 then removes ten situations from the chapter. They include auctions run by federal, state or local government officials; auctions required by a court order or judgment; sales the law requires to be by auction; auctions by religious, fraternal or benevolent societies, schools and non-profit organisations; auctions by political organisations or candidates where the proceeds go to political purposes; auctions where the total appraised value of the goods or services is less than US$500; and fur and motor vehicle auctions licensed by other state departments. An owner may also auction goods or real estate without registering, but only if the property was held for the owner's personal use for at least one year before the auction.

In Louisiana, the Licensing Law defines an auctioneer as anyone who, for another, sells or offers to sell property at auction, with or without a fee. Section 3105 says property may not be sold at public auction unless the auction is conducted by a licensed auctioneer, and where the sale is held at an auction house whose owner is not a licensed auctioneer, the house itself must be licensed. Section 3104 lists seven exemptions: sales ordered by a United States bankruptcy court; sales by employees of the United States, Louisiana or their political subdivisions acting within their employment; sales by charitable or non-profit organisations; an individual selling his or her own property when not regularly in the auction business; foreclosure sales of realty conducted personally by a trustee under a recorded deed of trust; foreclosure sales of personal property conducted personally by a mortgagee or secured party; and sales by sealed bid.

Louisiana also reaches online sales by name. The Louisiana Auctioneers Licensing Board states that, under Act 327 of the 2020 Regular Legislative Session and with effect from 1 January 2021, all online auctions must be licensed by the Board if the auction or the item sold is located in Louisiana.

Indiana: 80 hours, an exam in Indianapolis and a four-year licence

Indiana states its classroom requirement in hours. Section 25-6.1-3-2, as printed in the Commission's April 2014 compilation, requires an applicant to be at least 18 years of age and to have completed at least 80 actual hours of instruction from a provider approved by the Commission. The Commission's rules in the same edition add that the course must run over at least ten days, with no more than eight hours a day. The same section, in that edition, also bars applicants with certain convictions.

The Indiana Professional Licensing Agency, on its licensing page dated 12 June 2026, describes the present procedure. The applicant completes the pre-licensing course, files an online application with the fee, and discloses any "yes" answers with a full explanation and court documents. Staff then schedule the examination, which the Commission holds six times a year, from noon to 4 p.m., at the Indiana Government Center South in Indianapolis. The last 2026 sitting listed by the agency is scheduled for 18 November. An application not completed within one year of filing is treated as abandoned.

The fees on the agency's page are short to add up. A worked example, assuming one application and one sitting of the examination: US$70 plus US$35 gives US$105 in state fees to reach a first licence. The page does not state the amount of any recovery fund surcharge, which the statute, as printed in 2014, adds to the licence fee in the years it is assessed, so the example leaves it out.

Auctioneer and auction company licences expire together on 28 February every fourth year; the agency gives 2028 and then 2032. Renewal of an unexpired licence costs US$70. A licence expired for under four years costs US$70 plus a US$50 penalty, or US$120, and reinstatement after more than four years costs US$140.

Continuing education is 16 hours for each four-year period, from an approved provider: at least six hours of core subjects (Indiana and federal auction law, ethics, escrow and trust funds, contracts) and at least ten hours of electives such as agency, auction management, bid calling or advertising. No more than eight hours count on a single day, except for distance learning, so a licensee who attends in person needs at least two days. Evidence must be kept for three years after the renewal period.

Indiana's recovery fund: US$20,000 per judgment in the 2014 text

Indiana's answer to a licensee who cannot pay a judgment is the Auctioneer Recovery Fund, in chapter 8 of the auction article of the Indiana Code. Every figure in this section is the one printed in the Commission's April 2014 compilation, which reflects the law as of 6 September 2013; the current Indiana Code could not be opened for this guide, so none of them is confirmed as the amount in force today.

The fund is financed by a surcharge that is assessed only when it runs low. If the balance is below US$360,000 on 30 June of an odd-numbered year, the Commission assesses a surcharge to bring it back to about US$400,000. The formula is US$400,000 minus the remaining balance, divided by the number of licences in effect on 30 June. The surcharge is then added to initial licences, renewals and temporary permits for the following two years. Any amount above US$550,000 at the end of a fiscal year reverts to the state general fund.

A worked example with illustrative figures: assume the fund holds US$340,000 on 30 June of an odd-numbered year and 2,000 licences are in effect. The shortfall is US$400,000 minus US$340,000, or US$60,000, and US$60,000 divided by 2,000 is a surcharge of US$30 per licence. Neither assumption is a published figure.

In the 2014 text, the fund pays no more than US$20,000 per judgment and no more than US$50,000 in total for any one licensee, and it does not cover attorney's fees or punitive damages. The judgment must arise from a transaction that took place while the person was licensed, and the application to the fund must be filed within one year after all proceedings have ended.

When claims against one licensee exceed US$50,000, under the 2014 text, the Commission shares the amount in proportion. A second worked example: three judgments of US$20,000 each against the same licensee total US$60,000. Shared in proportion, each claimant receives one third of US$50,000, or US$16,666.67, rather than US$20,000.

A payment from the fund has a direct consequence for the licensee, again on the 2014 text. The Commission suspends the licence, and the person cannot be licensed again until the amount has been repaid with interest of 12 per cent a year. The Commission also takes over the claimant's rights against the licensee.

Wisconsin: an exam, a seller's permit and no classroom rule

Wisconsin registers rather than licenses, and its statute sets no pre-examination course. Section 480.08 asks an auctioneer applicant to be at least 18 years old, pay the fee, provide evidence about any arrest or conviction record, hold a current seller's permit, and pass an examination conducted by the department to determine fitness as an auctioneer. The seller's permit comes from the Department of Revenue, the Wisconsin Department of Safety and Professional Services notes.

Section 480.10 says examinations are held at least twice a year, with public notice at least 60 days in advance.

An applicant who has applied for the examination can work in the meantime. The statute allows a temporary certificate for a period set by the department, not to exceed one year and not renewable. The department's page gives the period it actually uses: a temporary permit lets the applicant practise for 60 days, costs an additional US$10 and cannot be renewed or extended.

The department states that the renewal date for the auctioneer credential is 14 December of each even-numbered year. Renewal takes a fee and a signature confirming that continuing education has been completed, online or on paper. The statute leaves the content of that education to rules: section 480.08 says the department may set continuing education requirements, and neither the statute nor the department's page states a number of hours.

Wisconsin's conduct rules: contract, 30 days, trust account

What Wisconsin does not ask in classroom hours it asks in conduct. Section 480.14 requires a written contract with each owner or consignor, setting the terms on which goods or real estate are accepted for sale. Within 30 days after the sale, unless the contract says otherwise, the auctioneer must give an accounting and pay all money due.

Section 480.16 deals with other people's money. Down payments, earnest money and other trust funds go into a common trust account, and the institution holding it is registered with the department together with an authorisation to examine the account. The department's application forms include a consent to examine and audit that account.

Records must be kept for at least two years after an auction under section 480.18.

There is no recovery fund and no bond in chapter 480. Section 480.22 only provides that, if the department finds an auction consumer protection fund necessary, it must prepare a report and recommendation to the legislature. The section creates no fund.

Louisiana: school or apprenticeship, then the exam

Louisiana offers two ways into the examination room, which the law requires the Board to open at least four times a year in Baton Rouge. Section 3113 of the Licensing Law requires an applicant to be of good moral character, a citizen of the United States or a legal resident of Louisiana, and at least 18 years old, and to have completed either a series of studies at an auctioneering school licensed or approved by the Board, or a one-year apprenticeship under a Louisiana-licensed auctioneer. An apprentice may conduct auctions only under the supervision of a licensed auctioneer. The application asks for three references.

A sole owner works under the auctioneer licence, the Board's licensing page explains, while multiple owners or partners need an auction business licence, with each auctioneer also licensed. Since 1 January 2025, the Board says, every auction business applying or renewing must designate a qualifying party: a holder of a Louisiana auctioneer licence who acts as the business's legal representative. If the qualifying party leaves, the Board must be told in writing within 30 days, and the Licensing Law gives the business 60 days after the departure to replace that person.

Louisiana's bonds, fees and yearly renewal

Louisiana puts the financial guarantee on the licensee. Section 3118 requires an auctioneer or apprentice to furnish US$10,000 in cash or a surety bond, and an auction business US$25,000. If the bond is cancelled, the licence is revoked unless a new bond is furnished before the cancellation takes effect.

Section 3116 sets the fees. The application costs US$75, the examination US$75 and a re-examination US$50. The initial auctioneer licence and each annual renewal cost US$150. An apprentice pays US$100. An auction business pays US$300 for the initial licence and US$300 for each annual renewal.

A worked example for a resident who passes at the first attempt: US$75 for the application, US$75 for the examination and US$150 for the initial licence come to US$300 in Board fees, before the US$10,000 bond. The law states the bond amount, not what a surety charges to write it, so that cost is not included.

The Board states that all licensing fees are non-refundable, are not prorated and expire annually on 31 December. Under section 3115, renewal applications are due by 1 November, renewed licences run from 1 January to 31 December, and a renewal filed after 1 January carries a late penalty of US$75.

The Licensing Law also regulates the money. Auction proceeds must be deposited in identifiable bank accounts; the Board's copy of the law was read once as saying accounts in Louisiana and once as accounts in the state where the auctioneer is situated, so the place is left unsettled here. The consignor must be paid within thirty days of the auctioneer receiving the funds or sixty days from the sale, whichever is the lesser. A worked example: for a sale on 1 March with funds received on 20 March, thirty days from receipt falls on 19 April and sixty days from the sale on 30 April, so 19 April applies. Buyer's fees must be disclosed in the advertising, posted at registration and announced at the opening of the auction.

Reciprocity: three lists that leave each other out

Indiana's list is Alabama, Arkansas, Florida, Georgia, Illinois, Kentucky, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and West Virginia. The reciprocity application costs US$70, and the applicant must have verifications of every current or past state licence sent directly by those states.

Wisconsin's list is Alabama, Arkansas, Illinois, Kentucky, North Carolina, Ohio, Tennessee and Texas. The department words it as an examination exemption for the holder of a current auctioneer licence, not an apprentice licence, in one of those states. Section 480.12 is the basis: the department registers the holder of another state's credential where that state's requirements are substantially equivalent, and may enter reciprocal agreements.

Louisiana's list is Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia. A reciprocal auctioneer must hold a current licence in good standing from one of them. The Board adds that sole proprietors licensed at home in Texas, Arkansas or South Carolina are exempt from the auction business licence. The Licensing Law ties the price to the other state: a non-resident pays the greater of US$150 or the fee the home state would charge a Louisiana auctioneer, and a non-resident must file an irrevocable consent to service of process through the Board.

Seven states sit on all three lists: Alabama, Arkansas, Kentucky, North Carolina, Ohio, Tennessee and Texas. None of the three states appears on either of the other two lists.

What each law says about auctioning real estate

Indiana is the most explicit about where the auctioneer's job stops. The Commission's rule 812 IAC 1-1-20, as printed in the April 2014 compilation, says a licensed auctioneer may advertise and sell real estate at auction. The licensee needs an executed contract with the owner, conducts the bidding and announces the result. After that, in the words of the rule, "No further acts necessary to transfer title to the real estate shall be performed by the licensee." In the same 2014 edition, a written contract is required before goods or real estate are offered, and a copy is kept for two years, but while proceeds for goods must be accounted for and paid within 30 days, payment for real estate is due within a reasonable time.

In Wisconsin, real estate is inside the definition of an auctioneer, and the written contract required by section 480.14 covers goods or real estate alike. Earnest money and down payments are the first items named in the trust account section. The owner's exemption applies to real estate only when it was held for personal use for at least a year. One exemption needs careful reading: section 480.02 removes from the chapter a person who conducts an auction while lawfully practising under a licence granted by another state agency, but it carves out of that exemption a licensee as defined in the state's real estate practice chapter. The text read for this guide does not go further on how the auction chapter and the real estate chapter fit together.

In Louisiana, land appears in the Licensing Law as immovable property. The law exempts foreclosure sales of realty conducted personally by a trustee under a recorded deed of trust. It requires a mortgage and encumbrance certificate to be produced before a public auction of immovable property, a requirement that does not apply to extrajudicial sales. And it caps certain commissions: up to 7 per cent on judicial sales of immovable property, and 4 per cent on the first US$10,000 and 2 per cent on the excess for succession, minor or insolvent sales. A worked example on an assumed price of US$150,000: the judicial sale ceiling is 7 per cent of US$150,000, or US$10,500; on the succession scale, 4 per cent of US$10,000 is US$400 and 2 per cent of the remaining US$140,000 is US$2,800, a total of US$3,200.

Penalties for working without a credential

In Indiana, the April 2014 compilation records that a person who knowingly or intentionally violates the licensing requirement commits a Class A misdemeanour, and that violations of the article with no specific penalty fall in the same class. The compilation states no civil penalty amounts.

In Wisconsin, section 480.26 allows a fine of up to US$1,000, imprisonment for up to six months, or both. Separately, a forfeiture of up to US$1,000 applies to each offence, and each day of a continued violation counts as a separate offence: on those terms, five days of continued violation carry a ceiling of US$5,000.

In Louisiana, section 3123 sets a fine of up to US$500, imprisonment of up to six months, or both, for each violation of the law or the Board's rules, and treats each individual sale or act as a separate offence.

What the published pages leave open

The Indiana statute text used in this guide comes from the Commission's April 2014 compilation, which describes itself as unofficial and reflects the law as of 6 September 2013. The agency's page of 12 June 2026 confirms the fees, the four-year cycle and the 16 hours of continuing education, but it does not restate the recovery fund figures, and it lists an auction company licence at US$70 without mentioning the separate auction house licence that the 2014 compilation describes. Whether the fund's limits or the licence classes have been amended since 2013 is a question for the current Indiana Code.

For Wisconsin, the auction company registers separately from the auctioneer, and the dollar amounts of the initial and renewal fees and the number of continuing education hours are not on the department's auctioneer page or in chapter 480. For Louisiana, the Licensing Law as read does not set continuing education hours. None of the pages read says whether an auctioneer who sells land in these states must also hold a real estate licence; that answer sits in each state's real estate licensing law.

A recovery fund, a bond and an audited trust account are three answers to one question: who pays when the auction money does not arrive.

Kooky, from Shaka

Kooky edits Agents Estate and builds Shaka, the payment router he made for real estate professionals. One payment comes in, and every agent, agency and party in the deal receives their signed share on closing date.

About Kooky and Shaka →