What must a dealer perform before requesting a sales license for an owner or salesperson?

Before requesting a sales license for an owner or salesperson, a dealer is required to conduct a background check. This is crucial because the licensing authority needs to ensure that the individuals in question have a suitable history that complies with regulatory and legal standards. A background check typically includes examining criminal records, previous licensing history, and any other relevant personal history that could impact the individual's ability to operate legally and ethically in the dealership environment.

Conducting a background check helps maintain the integrity of the marketplace and protects consumers by ensuring that those who sell vehicles have not committed any offenses that would disqualify them from holding a sales license. This procedure aligns with regulatory practices designed to foster trust and safety within the automotive sales industry.

While other options listed may also be important in different contexts—for example, insurance verification is essential for protecting the dealership and complying with legal requirements—the direct and primary requirement before licensing is the completion of a comprehensive background check.