ILLINOIS AUCTIONEER LICENSING EXAM
PRACTICE TEST 2026
Section 1: Illinois State Statutes & Regulations (225 ILCS 407)
Questions regarding licensing requirements, disciplinary actions, and specific state laws.
1. Under the Illinois Auctioneer Act (225 ILCS 407), how many hours of pre-licensing education are
required before a person can sit for the state licensing examination?
A) 40 hours
B) 60 hours
C) 80 hours
D) 100 hours
Correct Answer: C) 80 hours
Rationale: Illinois mandates 80 hours of approved pre-licensing education from a certified school to
ensure candidates have comprehensive knowledge of auction theory and state law before licensure.
2. Which entity is responsible for the regulation and licensing of auctioneers in Illinois?
A) The Illinois Department of Revenue
B) The Illinois Office of Banks and Real Estate
C) The Illinois Department of Financial and Professional Regulation (IDFPR)
D) The Illinois Attorney General’s Office
Correct Answer: C) The Illinois Department of Financial and Professional Regulation (IDFPR)
Rationale: The IDFPR oversees the licensing and discipline for auctioneers, similar to real estate brokers,
barbers, and other licensed professionals in the state.
3. How often must an auctioneer license be renewed in Illinois?
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 5 years
,Correct Answer: B) Every 2 years
Rationale: Illinois auctioneer licenses expire on a biennial schedule (typically April 30 of odd-numbered
years), requiring renewal to remain in active status.
4. If a sponsoring auctioneer’s license is revoked, what happens to the licenses of the associate
auctioneers working under that sponsor?
A) They remain valid if they find a new sponsor within 30 days.
B) They are automatically revoked as well.
C) They are placed in inactive status immediately.
D) They become temporary independent licenses.
Correct Answer: A) They remain valid if they find a new sponsor within 30 days.
Rationale: Illinois law allows associate auctioneers to seek a new sponsoring auctioneer within a
specified grace period (usually 30 days) to avoid their license becoming inactive or subject to revocation.
5. According to Illinois law, which of the following is considered "commingling"?
A) Combining two different auctions into one catalog.
B) Mixing the auctioneer’s personal funds with client trust funds.
C) Selling real estate and personal property in the same auction.
D) Combining online bidding with live floor bidding.
Correct Answer: B) Mixing the auctioneer’s personal funds with client trust funds.
Rationale: Commingling is a serious violation of fiduciary duty. Illinois statutes strictly prohibit mixing
client funds with the auctioneer’s operating accounts.
6. What is the maximum administrative fine the IDFPR can levy against an auctioneer per violation of
the Auctioneer Act?
A) $500
B) $1,000
C) $5,000
D) $10,000
Correct Answer: D) $10,000
Rationale: Under 225 ILCS 407, the Department may impose fines up to $10,000 for each violation of
the Act or its rules, depending on the severity and intent.
7. An Illinois auctioneer is selling a consigned vehicle. How long must they retain the records of that
sale (including the consignor’s information and final settlement)?
A) 1 year
B) 3 years
C) 5 years
D) 7 years
, Correct Answer: B) 3 years
Rationale: Illinois administrative rules require auctioneers to maintain detailed records of all
transactions for a minimum of three years for audit by the IDFPR.
8. Which of the following actions is grounds for disciplinary action under the Illinois Auctioneer Act?
A) Accepting a cashier’s check from a buyer.
B) Advertising an auction date and then canceling due to severe weather.
C) Failing to account for or remit proceeds collected for a client within a reasonable time.
D) Refusing to sell to a minor.
Correct Answer: C) Failing to account for or remit proceeds collected for a client within a
reasonable time.
Rationale: Conversion of client funds or failure to timely remit proceeds is a breach of fiduciary duty and
a Class A misdemeanor, leading to license suspension or revocation.
9. Does Illinois require a separate Real Estate Broker’s license to sell real estate at auction?
A) Yes, always.
B) No, the auctioneer license covers all property types.
C) Yes, unless the auctioneer holds a valid managing broker’s license or is sponsored by one.
D) Only if the property value exceeds $100,000.
Correct Answer: C) Yes, unless the auctioneer holds a valid managing broker’s license or is
sponsored by one.
Rationale: Selling real estate in Illinois requires a real estate license. An auctioneer selling real estate
must either hold a managing broker’s license or be sponsored by a licensed managing broker.
10. If a buyer fails to pay for an item purchased at an absolute auction, the auctioneer’s first course of
action should generally be:
A) Immediately sue the buyer for the full amount.
B) Keep the deposit and resell the item, holding the buyer liable for any deficiency.
C) Forfeit the buyer’s deposit to the seller and move on.
D) Do nothing, as absolute auctions guarantee sale, not payment.
Correct Answer: B) Keep the deposit and resell the item, holding the buyer liable for any
deficiency.
Rationale: Standard auction terms usually allow the auctioneer to retain the deposit, resell the item,
and hold the defaulting buyer responsible for any difference in price plus costs.
Section 2: Auctioneer Ethics & Professional Conduct
Based on the National Auctioneers Association (NAA) Code of Ethics and standard industry practices.
PRACTICE TEST 2026
Section 1: Illinois State Statutes & Regulations (225 ILCS 407)
Questions regarding licensing requirements, disciplinary actions, and specific state laws.
1. Under the Illinois Auctioneer Act (225 ILCS 407), how many hours of pre-licensing education are
required before a person can sit for the state licensing examination?
A) 40 hours
B) 60 hours
C) 80 hours
D) 100 hours
Correct Answer: C) 80 hours
Rationale: Illinois mandates 80 hours of approved pre-licensing education from a certified school to
ensure candidates have comprehensive knowledge of auction theory and state law before licensure.
2. Which entity is responsible for the regulation and licensing of auctioneers in Illinois?
A) The Illinois Department of Revenue
B) The Illinois Office of Banks and Real Estate
C) The Illinois Department of Financial and Professional Regulation (IDFPR)
D) The Illinois Attorney General’s Office
Correct Answer: C) The Illinois Department of Financial and Professional Regulation (IDFPR)
Rationale: The IDFPR oversees the licensing and discipline for auctioneers, similar to real estate brokers,
barbers, and other licensed professionals in the state.
3. How often must an auctioneer license be renewed in Illinois?
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 5 years
,Correct Answer: B) Every 2 years
Rationale: Illinois auctioneer licenses expire on a biennial schedule (typically April 30 of odd-numbered
years), requiring renewal to remain in active status.
4. If a sponsoring auctioneer’s license is revoked, what happens to the licenses of the associate
auctioneers working under that sponsor?
A) They remain valid if they find a new sponsor within 30 days.
B) They are automatically revoked as well.
C) They are placed in inactive status immediately.
D) They become temporary independent licenses.
Correct Answer: A) They remain valid if they find a new sponsor within 30 days.
Rationale: Illinois law allows associate auctioneers to seek a new sponsoring auctioneer within a
specified grace period (usually 30 days) to avoid their license becoming inactive or subject to revocation.
5. According to Illinois law, which of the following is considered "commingling"?
A) Combining two different auctions into one catalog.
B) Mixing the auctioneer’s personal funds with client trust funds.
C) Selling real estate and personal property in the same auction.
D) Combining online bidding with live floor bidding.
Correct Answer: B) Mixing the auctioneer’s personal funds with client trust funds.
Rationale: Commingling is a serious violation of fiduciary duty. Illinois statutes strictly prohibit mixing
client funds with the auctioneer’s operating accounts.
6. What is the maximum administrative fine the IDFPR can levy against an auctioneer per violation of
the Auctioneer Act?
A) $500
B) $1,000
C) $5,000
D) $10,000
Correct Answer: D) $10,000
Rationale: Under 225 ILCS 407, the Department may impose fines up to $10,000 for each violation of
the Act or its rules, depending on the severity and intent.
7. An Illinois auctioneer is selling a consigned vehicle. How long must they retain the records of that
sale (including the consignor’s information and final settlement)?
A) 1 year
B) 3 years
C) 5 years
D) 7 years
, Correct Answer: B) 3 years
Rationale: Illinois administrative rules require auctioneers to maintain detailed records of all
transactions for a minimum of three years for audit by the IDFPR.
8. Which of the following actions is grounds for disciplinary action under the Illinois Auctioneer Act?
A) Accepting a cashier’s check from a buyer.
B) Advertising an auction date and then canceling due to severe weather.
C) Failing to account for or remit proceeds collected for a client within a reasonable time.
D) Refusing to sell to a minor.
Correct Answer: C) Failing to account for or remit proceeds collected for a client within a
reasonable time.
Rationale: Conversion of client funds or failure to timely remit proceeds is a breach of fiduciary duty and
a Class A misdemeanor, leading to license suspension or revocation.
9. Does Illinois require a separate Real Estate Broker’s license to sell real estate at auction?
A) Yes, always.
B) No, the auctioneer license covers all property types.
C) Yes, unless the auctioneer holds a valid managing broker’s license or is sponsored by one.
D) Only if the property value exceeds $100,000.
Correct Answer: C) Yes, unless the auctioneer holds a valid managing broker’s license or is
sponsored by one.
Rationale: Selling real estate in Illinois requires a real estate license. An auctioneer selling real estate
must either hold a managing broker’s license or be sponsored by a licensed managing broker.
10. If a buyer fails to pay for an item purchased at an absolute auction, the auctioneer’s first course of
action should generally be:
A) Immediately sue the buyer for the full amount.
B) Keep the deposit and resell the item, holding the buyer liable for any deficiency.
C) Forfeit the buyer’s deposit to the seller and move on.
D) Do nothing, as absolute auctions guarantee sale, not payment.
Correct Answer: B) Keep the deposit and resell the item, holding the buyer liable for any
deficiency.
Rationale: Standard auction terms usually allow the auctioneer to retain the deposit, resell the item,
and hold the defaulting buyer responsible for any difference in price plus costs.
Section 2: Auctioneer Ethics & Professional Conduct
Based on the National Auctioneers Association (NAA) Code of Ethics and standard industry practices.
