Auctioneer License Requirements in Texas
State license required. Texas licenses auctioneers through TDLR — but only for auctions with a live-bid component, because internet auctions are expressly exempt.
What Online Auctioneers Need to Know
Texas has the cleanest broad online exemption of any licensing state: section 1802.002(a)(14) exempts "an auction of property through the Internet" outright. A purely online auction business needs no Texas auctioneer license; add any live-bid component and the full licensing regime applies.
The Rules in Texas
Texas regulates auctioneers through the Texas Department of Licensing and Regulation under Occupations Code chapter 1802 — but the statute exempts internet auctions entirely. The license is only triggered by live-bid auctions, so an online-only operation is outside the regime.
For covered live-bid auctions, the rules are among the strictest in the country. Section 1802.121 (effective September 1, 2023) requires a written contract plus an itemized inventory agreed before the auction, with amendments signed. Proceeds go into a trust account within 72 hours, and the seller must be paid within 15 banking days under 16 TAC section 67.70. Texas uses a Recovery Fund rather than a bond.
Requirements at a Glance
- Internet auctions expressly exempt from licensing (Tex. Occ. Code § 1802.002(a)(14))
- TDLR auctioneer license required for auctions with a live-bid component
- Covered auctions: written contract plus itemized inventory before the auction; signed amendments (§ 1802.121)
- Trust account deposit within 72 hours
- Pay the seller within 15 banking days (16 TAC § 67.70)
- Recovery Fund instead of a bond
Authority: Texas Department of Licensing and Regulation (TDLR). Statute: Tex. Occ. Code ch. 1802.
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.