Real Estate Broker Auction Relationships in Illinois

This document outlines the key working relationships in the Illinois real estate auction business, defining the roles and responsibilities of licensed real estate brokers acting as seller's brokers (listing brokers) and buyer's brokers, as well as the status of customers.  It provides clarity on the different capacities in which individuals may engage in real estate auction transactions, emphasizing the requirement for broker licensure in Illinois for conducting real estate auctions.

Seller's broker (listing broker): A seller's broker, also known as a listing broker in Illinois, is a licensed real estate professional who enters into a contractual agreement with a property owner to market and sell their real estate at auction.  This broker has a fiduciary responsibility to act in the best interests of the seller throughout the auction process.  Their duties typically include determining the property's market value, creating marketing strategies, organizing, and conducting the auction, liaising with potential buyers, and negotiating terms on behalf of the seller. The seller's broker strives to achieve the highest possible sale price and the most favorable terms for their client, while ensuring compliance with all relevant laws and regulations.

Buyer's broker: A buyer's broker in Illinois is a licensed real estate professional who represents the interests of potential buyers in an auction setting.  This broker works to identify suitable properties for their clients, provides expert advice on property values and auction processes, and helps formulate bidding strategies.  They attend auctions on behalf of their clients, place bids as instructed, and negotiate terms if their client's bid is successful. The buyer's broker has a fiduciary duty to their client, which includes maintaining confidentiality, providing loyalty, and disclosing all material facts about the property.  Their goal is to help their client secure the desired property at the most advantageous price and terms possible.

Customer: In the context of Illinois real estate auctions, a customer is an individual or entity who receives services from a real estate broker but does not have a formal agency relationship.  This might include potential buyers who attend open houses, request property information, or participate in auctions without engaging a buyer's broker.  While the broker must treat customers honestly and fairly, they do not owe them the same fiduciary duties as they would to a client.  The broker can provide general information about properties and the auction process but cannot offer advice or negotiate on behalf of the customer.  It's important for customers to understand that the broker's primary loyalty lies with their client, whether that's the seller or another buyer.