Auctioneer License Requirements in Tennessee
State license required. Tennessee requires a state auctioneer license — and since 2019 that includes extended-time (soft-close) online auctions, while fixed-time listings remain exempt.
What Online Auctioneers Need to Know
Tennessee splits online formats: fixed-time listings that end at a set moment with no extension are exempt, but soft-close auctions — where late bids extend the clock, the format most online auction platforms use — require the license (rule 0160-01-.18). The rule was upheld by the Sixth Circuit in August 2025 (McLemore v. Gumucio), with a Supreme Court cert petition pending, so check the current status before relying on either side of the line.
The Rules in Tennessee
Tennessee licenses auctioneers through the Tennessee Auctioneer Commission under title 62, chapter 19 of the Tennessee Code. The distinctive feature is the 2019 extension to online sales: extended-time (soft-close) online auctions require a license, while fixed-time listings do not. That distinction was challenged and survived — the Sixth Circuit upheld it in August 2025 — but Supreme Court review was still pending as of late 2025, so verify the current state of the law.
Licensed auctioneers must use a written contract with consignors; failing to do so is a disciplinable offense under section 62-19-112(b). Proceeds go into an escrow account and must be remitted within a "reasonable time" — there is no fixed statutory deadline, so put a date in your contract. Tennessee funds an Education and Recovery Account under section 62-19-116 rather than requiring a bond.
Requirements at a Glance
- State auctioneer license (Tennessee Auctioneer Commission)
- Soft-close (extended-time) online auctions require the license; fixed-time listings exempt (rule 0160-01-.18) — upheld in federal court 2025, check current status
- Written contract with the consignor; failure is disciplinable (Tenn. Code § 62-19-112(b))
- Escrow account; remit within a "reasonable time" — no fixed deadline
- Education and Recovery Account instead of a bond (Tenn. Code § 62-19-116)
Authority: Tennessee Auctioneer Commission. Statute: Tenn. Code tit. 62, ch. 19.
Not legal advice. Auction law changes — several states have amended their online-auction rules since 2019. Verify current requirements with the licensing authority above (or your city/county clerk) before your first sale, and have a local attorney review your consignment contract.
Licensed (or Exempt)? Here's the Rest of the Path
The license is usually the easy part. The business itself — platform affiliation, sourcing consignments, cataloging, settlement — is laid out in how to start an online auction business, and the earning math is in how much auctioneers make.