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 1450.915 SUSPENSION OR REVOCATION OF A SPONSORING BROKER OR DESIGNATED MANAGING BROKER LICENSE
Section 1450.915 Suspension or Revocation of a Sponsoring Broker or Designated Managing Broker License
a) Suspension or Revocation of Sponsoring Broker
Upon the effective date of a suspension or revocation of the license of a sponsoring broker or sole proprietorship, unless an interim sponsoring broker or receiver is appointed by the sponsoring broker, sole proprietor or its representative, and subject to approval by the Division:
1) The licenses of all respective sponsored licensees are automatically inoperative. Each licensee may resume licensed activities only upon securing a properly completed 45 day sponsor card, signed either as a self-sponsored managing broker or by another sponsoring broker. Each leasing agent may resume leasing residential real estate only upon securing a properly completed 45 day sponsor card signed by a sponsoring broker.
2) All brokerage agreements with the sponsoring broker, including listing agreements, are deemed expired under Section 10-25 of the Act, if a new sponsoring broker is not named within 7 business days. If a new sponsoring broker is named within 7 days, the suspended or revoked sponsoring broker shall notify, in writing, all clients who have an active brokerage agreement with the sponsoring broker, advising those clients that:
A) the brokerage agreement expired 7 business days after the suspension or revocation; and
B) the clients are legally authorized to enter into another brokerage agreement with another sponsoring broker.
3) Suspensions or revocations of a sponsoring broker shall not have an effect on the enforceability of any pending, executed real estate contracts.
A) The suspended or revoked sponsoring broker shall send a written notice to all clients with a pending, executed real estate contract explaining the suspensions or revocations, and that the suspensions or revocations shall not have an effect on the enforceability of the pending, executed real estate contracts. The notice shall also identify the name, address, email and telephone number of the person in control of the escrow money. To the extent clients require additional real estate services, the notice shall provide that the clients may seek real estate services from another sponsoring broker.
B) A suspension or revocation shall not preclude the receipt of any commission or other compensation earned by the suspended or revoked sponsoring broker or other formerly sponsored licensee prior to the effective date of the suspension or revocation of the sponsoring broker.
4) A broker shall not be entitled to compensation if the suspension or revocation directly relates to the transaction for which the compensation was earned. If the broker already received compensation related to the transaction leading to the suspension or revocation of the license, the Department or Board may consider that fact in issuing discipline.
b) Suspension or Revocation of a Designated Managing Broker
In the event of a suspension or revocation of a designated managing broker, offices and branch offices may operate for 15 days without a replacement designated managing broker. Within 15 days after a suspension or revocation of the designated managing broker, the sponsoring broker may submit to the Department a written request for authorization to continue operation, provided a designated managing broker assumes responsibility, in writing, for the operation of the office and agrees to personally supervise the operation of the office. Within 15 days after a suspension or revocation of a designated managing broker, if a replacement designated managing broker has not been secured or a written request for authorization to continue operation has not been submitted to the Department, the offices or branch offices must cease licensed activities.
(Source: Amended at 43 Ill. Reg. 1975, effective January 25, 2019)