What must an auctioneer or auction firm do before selling goods at auction?

Before selling goods at auction, an auctioneer or auction firm is required to enter into a written contract with the owner or consignor of the goods. This contract serves to formalize the agreement between the auctioneer and the seller, outlining the specific terms and conditions of the auction, including details about fees, the auction date, responsibilities, and what is expected from both parties. Having a written contract helps to protect both the auctioneer and the consignor, ensuring clarity and accountability in the transaction.

While obtaining a special license may be a requirement in some contexts, it is not specific to the immediate act of preparing for an auction of goods. Advertising the auction in local media, while a common practice for promoting the event, is not a legal necessity for the auctioneer to conduct the sale. Securing a bond from the bonding company can also be an important step for certain auctions, typically tied to financial guarantees, but it is not universally required for the auction process itself. Thus, entering into a written contract is the foundational step that must be taken to proceed with the auction legally and ethically.