Nevada Auction Law

Nevada has a rich auction industry. There are a number of successful auctioneers and auction houses established here. Like in any other state, Nevada has outlined auction laws for their State.

Licensing

No auctioneer or auction company shall be allowed to operate within the State of Nevada without a valid business license. This goes for an entirely new application or a renewal of license. Promotion of advertisement and conduction of trade is not allowed without a valid license.

There are required qualifications in determining your manager and supervisor upon application of your license. Each applicant for a license must be or must identify and employ and each licensee shall be or employ an individual who will be the manager of the business and supervisor of all auctions.

The manager or supervisor has to be a graduate of a recognized school of auctioneering with at least three years of experience as an auction caller and approved for suitability by the Director. There is an annual license fee of $500.00

Bond

The State of Nevada requires a surety bond of $10,000.00. Each applicant for an auction firm license must file and each licensee must maintain a surety bond with the Department with surety acceptable to and approved by the City Attorney. Such bond must be conditioned to be paid to the City or to any person who purchases from the licensee and suffers injury by reason of any violation of the provisions of this Code by the licensee, his agents or employees and that the principal therein named will faithfully conform to each and all conditions or restrictions upon the principal’s license or permit.

Sales Record

The state requires to keep a record of all sales, the amount paid and the dates of each sale. The records shall be open at all reasonable times for inspection by employees of the Department and Metro. The licensee shall keep a copy of the inventory filed with the Department and before the commencement of the sale on any day shall indicate thereon in an appropriate manner the items sold, if any, on the previous day, and the date thereof. The licensee shall also keep a daily record of the inventory number of each item sold, the date of the sale, and the name of the purchaser thereof;

If any items listed on the inventory are sold or disposed of otherwise than by sale at auction, such fact, with full particulars thereof, shall be entered on the record. Within ten days after the termination of the auction, the copy of the inventory and the separate record of disposition of goods, together with a list of the items set out on the inventory and not shown on the report to have been sold or otherwise disposed of, shall be delivered to the Department.

General Requirement for Auction

  • Provide the terms and conditions before the commencement of the actual auction. 
  • Private sale is not allowed at any part of the auction proceeding.
  • Do not make any false or misleading statement concerning the ownership, kind, character, quality, condition, make, size, price, or other fact pertaining to any item sold or offered for sale.
  • No act as a by-bidder or what is commonly known as a “capper” or “booster,” or make or accept any false or misleading bid, or falsely pretend to buy or sell any item, or conspire with any person to make a false or fictitious bid.
  • Never bid or purchase at the auction; provided, however, that the auction caller may make a bid which is for the benefit of the owner if notice of such is posted plainly for all attending the auction to see and the auction caller makes such an announcement in a manner that all can hear at the beginning of the auction.
  • No free drawing shall be conducted, nor gifts given, nor any form of entertainment provided to encourage attendance at the auction, or for any other purpose.
  • Upon request of any person who has bid upon an item offered for sale, the action caller shall allow the bidder a reasonable opportunity to examine the item, and the bidder may thereafter withdraw his bid at any time before the auction caller declares the item sold.

Jewelry

Every jewelry in the inventory must have a number corresponding with the number of the item on the inventory. A true and correct statement of the kind and quality of the metal or other substance of which the item is made or composed and the weight and percentage or karat of purity.

For plated jewelry, the tag or label shall contain a true and correct statement of the kind of plate or overlay and the percentage of purity thereof and the kind of metal or material covered. In whole or in part a precious or semiprecious stone, the statement shall contain the true name, weight, quality and fineness of such stone, and imitations shall be described as such. A watch, the statement shall also contain the true name of the manufacturer thereof, and if any secondhand or old part or movement, or substitute part or movement, of any watch is offered in a new case, such fact shall be set forth in the statement.

 The tag or label shall remain securely attached to every item and, without any erasure, defacement or obliteration of the number and statement required to appear thereon, shall be delivered to the purchaser as a true and correct description and representation of the item sold, and shall be deemed prima facie evidence of intent to defraud in case such written or printed statement is not a true and correct description and representation of the item sold.

Before accepting any bids upon any item of jewelry, the auction caller shall read, in such a manner as to be readily heard and understood at any place in the room where the auction is being conducted, the description of the item as it appears on the label or tag attached. The auction caller shall give to each purchaser of jewelry sold at auction a written invoice containing a full description of the item as it appears on the inventory. Duplicate copies of all invoices shall be kept by the licensee, available for inspection by police officers and the Director, for six months after termination of each auction.

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