Auctioneer vs. Real Estate Broker: Does an NC Auctioneer Need a Real Estate License to Sell Property?

A Tale of Two Licenses

North Carolina has two different licensing boards that sometimes intersect: the NC Real Estate Commission (NCREC) and the NC Auctioneer Licensing Board (NCALB). When real estate is sold by auction, which license is required? This is one of the most common crossover questions aspiring brokers and seasoned auctioneers ask.

The answer is based on the full scope of services provided. While an auctioneer is licensed to call bids, the process of handling the property transaction itself falls under real estate law.

The Dual-Licensing Reality in North Carolina

In North Carolina, the general rule is that an individual needs a Real Estate Broker License to list, negotiate, or sell real property on behalf of a third party, even if it’s through an auction.

The role of a licensed auctioneer (licensed by the NCALB) who does NOT hold a real estate license is limited to being a “mere crier of the sale.” This means they can:

Call the bids and announce the highest bidder.
Advertise the auction event itself.

However, an auctioneer who is not also a licensed real estate broker cannot legally perform these crucial brokerage activities:

Solicit the real estate listing.
Negotiate the terms of the sale (e.g., contracts, closing dates, buyer concessions).
Prepare the binding contract documents (Offer to Purchase and Contract).
Show the property outside of the auction time.

The Licensed Professional’s Advantage

For an auctioneer to provide a full-service real estate auction—including listing the property, negotiating with the seller and buyer, and handling the contract paperwork—they must possess an active North Carolina Real Estate Broker License.

In many professional real estate auction firms, a single individual or a designated person holds both the NC Auctioneer License and the NC Real Estate Broker License. This dual licensure ensures compliance with both the NCREC and the NCALB and allows the professional to legally manage the entire transaction, from listing the property to closing the deal.

Important Note on Compensation and Referrals

If a licensed broker refers a client to an auctioneer who is not also a licensed broker, the auctioneer cannot pay the broker a referral fee based on the successful sale of the real estate. Compensation for brokerage activities can only be paid to other licensed brokers or firms.

Key Takeaway