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Sample Nebraska Auction License

Nebraska Auction License

In general, the Motor Vehicle Industry Licensing Board issues Nebraska Auction License. To receive this certificate of the title, applicants may make a request without obtaining a properly endorsed certification of title from the owner of the state dealer who has taken possession of a salvage. This may happen in two ways:

  • a salvage which is the possession due to a total loss settlement or purchase of a salvage machine
  • a donated vehicle – possession after donation to a non-profit organization.

As a matter of fact, the applicants ought to make a minimum of two written attempts. This is the way to get the properly endorsed certificate of title from the previous owner.

Overall, there is a second notice that you receive through certified mail. Usually, the return receipt is requested to the latest known address of the lien-holder and owner. The notice should contain a description of the property. In addition, a statement of the title to the car shall vest with the AD a month following the date the notice was sent.

In fact, one month after the second notice is mailed, the dealer is able to present the below-mentioned paperwork for issuance of a certification:

  • a Request Form for Certificate of Title
  • an Affidavit for Affirmation of Ownership of a Salvage or Donated machine

In some cases, you are to take care of the license plates of the car or motorcycle.

How to get a Nebraska Auction License?

First things first, you should complete the state application form. Firstly, you need to indicate the dealership name, location, declared office hours, and the working telephone number. You have to register it with Directory Assistance in the exact trader name.

Accordingly, you should submit the following:

  • Service Agreement
  • A salesperson
  • Certificate of Liability Insurance
  • Corporate Surety Bond ($50,000 signed by NE registered agent)
  • Worker’s Compensation Insurance

In addition, in case you have a franchise agreement or contract with a manufacturer or distributor, a copy of that franchise agreement or contract must be in the exact dealership name and accompany the application.

Together with the application, submit a photograph of the place of business and dealership sign. One more thing, you are probably going to obtain a salesperson license. There are no charges for that. Mostly Sole Owners, LLC Members, Partners, or Corporate officers are eligible for this.

Please also note that the liability insurance must contain:

  • Current authorization name/address
  • Coverage that includes Automobile Liability and its dates
  • Policy number
  • the Board listed as the Certificate Holder along with its address

Requirements for The Bond

Generally, you need to apply for a NE Dealer Affiliation before you receive your certification. In fact, it is a requirement by law before you can obtain your permit.

For your information, a NE AD Bond is a type of surety bond that protects your clients from acts. These include selling stolen cars, failure to follow trade house rules, failure to deliver a valid title, or any other attempts to deceive or misrepresent proper facts about the machine.

Overall, the bond amount is a maximum of $100,000. The price you pay will be anywhere from 1-15% of the total amount ($1,000 – $15,000). In total, this is a one-time payment, not a monthly payment.

Nebraska Auction License Application Fees

In fact, you are not going to send a $225 fee until the time your dealership will be approved by the Board.

Please make sure to send either a cashier’s check or money order to the NE Motor Vehicle Industry Licensing Board upon dealership approval.

Additional Information

If you plan on selling other things through auctions in this state, you have to get an AD permit as well. Again they are issued by the MV ILB.

Contact Info

Nebraska Motor Vehicle Industry Licensing Board

Telephone: 402-471-2148

301 Centennial Mall South
P. O. Box 94697
Lincoln, NE 68509

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