TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VIII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1450 REAL ESTATE LICENSE ACT OF 2000
SECTION 1450.700 SPONSORING BROKER RESPONSIBILITIES
Section 1450.700 Sponsoring Broker Responsibilities
a) The sponsoring broker shall establish a written company policy and remain ultimately responsible for compliance with Section 1450.705. The sponsoring broker shall legally name a designated managing broker for every office or branch office. The designated managing broker shall have the legal authority to act on behalf of the sponsoring broker in matters including but not limited to those enumerated in Section 1450.705.
b) A sponsoring broker may delegate to unlicensed personnel, including but not limited to accountants, office managers, or unlicensed assistants (see Section 1450.740), activities or duties not prohibited by the Act or this Part. Any licensee who supervises unlicensed personnel shall be responsible for the unlicensed personnel's actions, as established in Sections 1450.705(d) and 1450.740(d).
c) The sponsoring broker shall inform the Division in writing of the name and license number of all designated managing brokers employed by the sponsoring broker and the office or branch offices each designated managing broker is responsible for managing.
d) The sponsoring broker is ultimately responsible for issuing sponsor cards.
e) Within 15 days after the loss of a designated managing broker who will not be replaced, the Division may issue written authorization to allow the continued operation of an office or branch office, provided that the sponsoring broker assumes responsibility, in writing, for the operation of the office or branch office and agrees to personally supervise the office or branch office. No such written authorization shall be valid for more than 60 days unless extended by the Division for good cause and upon written request by the sponsoring broker. Good cause includes, but is not limited to, such circumstances as sales under contract pending closing, loss of livelihood for a sponsored licensee and undue hardship caused to clients. The Division will honor the order of a court of competent jurisdiction appointing a legal representative for the sole purpose of closing out the affairs of a designated managing broker who is deceased or adjudicated disabled, but not to actively engage in licensed activities.
f) Within a reasonable time prior to a sponsoring broker ceasing operations, the sponsoring broker shall provide written notice to all sponsored licensees to allow the sponsored licensees to secure new sponsoring brokers and shall provide written notice to all active clients to allow the clients to secure brokerage agreements with new sponsoring brokers.
g) Any violation of the Act by any licensees employed by or associated with a sponsoring broker, or by any unlicensed assistant or other unlicensed employee of a sponsoring broker, shall not be cause for suspension or revocation of a sponsoring broker's license, unless a sponsoring broker had knowledge of the Act violation. A sponsoring broker's failure to provide an appropriate written company policy or failure to properly supervise shall be cause for discipline, including suspension or revocation, of the sponsoring broker's license.
(Source: Amended at 43 Ill. Reg. 1975, effective January 25, 2019)