Description: The Illinois Office of Banks and Real Estate announced the new Auction License Act becomes effective January 1, 2000. On August 16, 1999 Governor George Ryan signed House Bill 1805, the Auction License Act. This legislation provides for the Illinois Office of Banks and Real Estate to administer the law, which requires a license to conduct an auction in the State of Illinois.
William A Darr, Commissioner of the Illinois Office of Banks and Real Estate, commented: “Our agency has been working in close cooperation with the Illinois State Auctioneers Association and other related industries to pass legislation that will enhance the professionalism among the industry and provide consumer protection.” Over 30 other states license the auctioneer industry.
Highlights of the Auction License Act [House Bill 1805, Public Act 91–603] include the following:
- Provides for licensing of auctioneers, associate auctioneers,auction firms, auction schools and courses.
- Requires auctioneers to pass a state examination to obtain a license, with limited exemption for existing resident
auctioneers with at least two (2) years experience.
- Twelve (12) hours of continuing education is required every two (2) years to renew the license.
- The Act provides for a limited exemption for existing auctioneers with at least five (5) years experience to sell real property, only at an auction, without a real estate license.
- Provides for discipline of licenses including reprimand, probation, suspension, and revocation with civil penalties not to exceed $10,000 for illegal, unethical, unfair, or unprofessional acts.
- Establishes an Auction Recovery Fund, whereby a consumer who has suffered a monetary loss due to the illegal,unethical, or unfair actions of an auctioneer may recover damages up to $10,000.
- This Act provides for an auction contract with sellers to ensure consumer protection.
- A number of disclosures must be provided to the consumer.
- Establishes an Auction Advisory Board consisting of four (4) members from the industry, one (1) member from the real estate industry, and one (1) public member to hear disciplinary cases and advise the Illinois Office of Banks and Real Estate on administration of the Act.
Effective October 25, 1999, the Illinois Office of Banks and Real Estate agency will have established the Auction Section‘s phone number, which will be 217–557-8400.
For answers to Frequently Asked Questions about auctions and auctioneer licences, see the Illinois Banks and Real Estate Division‘s website.
Date Last Revisited: 12/04/09