AUCTIONEER FAQ'S

Disclaimer-the information contained in the question/answer format is intended for general reference only.  In any instance where there is a discrepancy between the question/answer format and the language in the Act, the Act governs.

Q. Must I be registered to conduct auctions in Michigan?

A. Registration is optional. To use the title "registered auctioneer" it is necessary for a person to register with the Department.  If you do not use the word "registered" in any of your advertisements, hold yourself out to be state registered, etc., you do not have to register.

Q. What are the requirements to qualify as a registered auctioneer?

A. To qualify, completion of the Department's application is required, along with one or more additional forms, and payment of the registration fee.

1) Applicants who have graduated from an auctioneer program, and have one year of apprentice experience with a Registered Auctioneer:  submit an application, an "Apprentice Auctioneer Activity Log", and a copy of the auctioneer program completion certificate. If approved, applicants will be notified by the Department that they may register to take the auctioneer examination with PSI. Once applicants pass the exam, their registration will be issued and mailed.

2) Applicants that have completed two years of apprentice experience with a Registered Auctioneer:  submit an application and an "Apprentice Auctioneer Activity Log".  If approved, applicants will be notified by the Department that they may register to take the auctioneer examination with PSI.  Once the applicants pass the exam, their registration will be issued and mailed.

Q. How do I register to take the examination?

A. Once the fee and completed forms are received, and the Department approves the application, applicants will be notified by the Department that they have qualified to register for the exam. Register by visiting the PSI website at www.psiexams.comand follow the instructions.  Michigan Auctioneer Registration Examinations are administered via computer at PSI Assessment Centers by appointment only.

Q. What type of auctioneer registration is available for auction businesses?

A.  A corporation, partnership, limited liability company, association, or other legal entity may apply for registration.  Not less than one of its officers, partners, members, or managing agents must be designated as a Qualifying Member. The Qualifying Member must hold a current individual auctioneer's registration. The Department issues an entity registration to the Qualifying Member upon that individual's fulfillment of the requirements. The Qualifying Member is responsible for exercising the supervision and control of the regulated activities to assure full compliance with the Act.

Q.  What are the Continuing Education Requirements?

A. None.

Q. Does Michigan offer reciprocity with any other states?

A. The Department does not currently have reciprocal agreements with any other state.

Q. Can I auction real estate with my auctioneer registration?

A. Any auctioneer is allowed to auction personal and real property. However, if the auction includes the sale of real property, while the auctioneer is not required to hold a real estate broker license, a real estate broker or attorney is necessary to close the sale of real property. This is based upon an Attorney General Opinion (No. 3420 dated 8-14-1959).

Q. Are auctioneers required to hold sales tax licenses?

A. If you are collecting sales tax, you need a sales tax license.  The general rule of thumb on sales tax at auction is that real estate, going out of business, complete liquidation, and estate liquidations on site are all non-taxable.  Inventory, consignment sales, estate liquidations that have been moved to a facility or another location are taxed. For more information, visit the Department of Treasury web address:

 http://www.michigan.gov/taxes/0,1607,7-238-43529---,00.html.

Q.  How can I find out if an auctioneer is registered?

A. As registrations are approved, this information will become available at the Department's

"Check a License" link.

Q. How can I file a complaint against a Registered Auctioneer?

A. The Department has a formal complaint intake process. To file a complaint, access the Statement of Complaint form and to obtain additional information: http://www.dleg.state.mi.us/bcsc/forms/enf/lce-992.pdf.

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