IL Auctioneer flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- 225 ILCS 407
- The Illinois Auction License Act is the state statute codified at 225 ILCS 407 that governs auctioneer and auction firm licensing, auction conduct, discipline, and enforcement in Illinois.
- IDFPR
- The Illinois Department of Financial and Professional Regulation administers the Auction License Act, issues auction licenses, investigates complaints, and imposes discipline on licensees.
- Auction firm
- A business entity licensed under the Illinois Auction License Act to conduct auctions; it must designate a licensed managing auctioneer responsible for compliance.
- Managing auctioneer
- A licensed auctioneer designated by an auction firm to be responsible for the firm's auction activities and compliance with the Act and rules.
- Auction
- A public sale of property in which buyers compete by open bidding and the property is sold to the highest bidder, subject to announced terms.
- Administrative rules citation
- The Illinois administrative rules implementing the Auction License Act are found at 68 Ill. Adm. Code 1450 and cover licensing, conduct, and recordkeeping.
- Unlicensed practice
- Conducting an auction for compensation without a valid Illinois auctioneer or auction firm license; prohibited and subject to civil and criminal penalties.
- License discipline
- IDFPR may deny, suspend, revoke, place on probation, or refuse to renew a license for violations of the Auction License Act or its rules.
- Auctioneer age requirement
- An applicant for an Illinois auctioneer license must be at least 18 years old at the time of application.
- Education requirement
- Auctioneer applicants must have a high school diploma or equivalent and complete a Department-approved auctioneer training course before licensure.
- Licensing examination
- Applicants must pass the Illinois auctioneer licensing examination, which tests knowledge of the Act, rules, auction conduct, and fiduciary duties.
- Firm license requirement
- A business entity that conducts auctions must hold an auction firm license and designate a licensed auctioneer as managing auctioneer.
- License renewal
- Illinois auction licenses are renewed on a biennial cycle; renewal requires payment of fees and completion of required continuing education.
- Continuing education
- Licensees must complete Department-required continuing education hours, including ethics, during each renewal cycle to maintain an active license.
- Expired license
- A licensee may not conduct auction activity while the license is expired; late renewal may require reinstatement fees and proof of continuing education.
- Change notification
- Licensees must notify IDFPR of required changes such as name, business address, or designation of a new managing auctioneer, as provided by rule.
- Shill bidding
- Bidding by the auctioneer, seller, or their agent to artificially raise prices without disclosure; prohibited under Illinois auction ethics rules.
- Buyer's premium
- An additional charge added to the hammer price and paid by the buyer; it must be disclosed before bidding begins.
- Reserve price
- The minimum price a seller will accept; if bidding does not reach it, the item is not sold, and the reserve must be handled as disclosed.
- Commingling
- Mixing client or trust funds with the licensee's personal or business funds; prohibited because client funds must be kept separate.
- Undisclosed dual compensation
- Accepting compensation from both buyer and seller in the same transaction without disclosure; prohibited as a conflict of interest.
- Misrepresentation
- Making false or misleading statements about property condition, ownership, provenance, auction terms, or results; prohibited conduct for licensees.
- Written auction contract
- A required written agreement between the auctioneer or firm and the seller stating commission, expenses, reserve, and settlement terms before the auction.
- Auction advertising rule
- Auction advertising must not be false or misleading and must identify the licensed auction firm and license information as required by Department rule.
- Trust account
- A separate bank account in which a licensee holds funds belonging to sellers, buyers, or other principals; it cannot contain business or personal funds.
- Escrow disbursement
- Release of trust funds only as authorized by the auction contract or law, with a written accounting provided to the affected party.
- Settlement statement
- A written accounting to the seller showing gross sale prices, commissions, expenses, and net proceeds from the auction.
- Recordkeeping duty
- Licensees must keep auction contracts, settlement statements, bid records, and trust account records and make them available for Department inspection.
- Record retention period
- Illinois auction records must be retained for at least five years after the auction or transaction, as required by the Act and rules.
- Deposit of buyer funds
- Buyer deposits and payments received before closing must be deposited into the trust account and held until lawful disbursement.
- Disputed escrow funds
- When ownership of trust funds is disputed, the licensee must keep the funds in escrow until the dispute is resolved or lawful direction is received.
- Fiduciary duty
- An auctioneer or firm acting for a seller or buyer must act in the principal's interest, account for funds, and avoid self-dealing or undisclosed conflicts.