Rep. Keith Farnham

Filed: 4/17/2013

 

 


 

 


 
09800HB0598ham001LRB098 03420 MGM 44648 a

1
AMENDMENT TO HOUSE BILL 598

2    AMENDMENT NO. ______. Amend House Bill 598 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Real Estate License Act of 2000 is amended
5by changing Section 10-10 as follows:
 
6    (225 ILCS 454/10-10)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 10-10. Disclosure of compensation.
9    (a) A licensee must disclose to a client the sponsoring
10broker's compensation and policy with regard to cooperating
11with brokers who represent other parties in a transaction.
12    (b) A licensee must disclose to a client all sources of
13compensation related to the transaction received by the
14licensee from a third party.
15    (c) If a licensee refers a client to a third party in which
16the licensee has greater than a 1% ownership interest or from

 

 

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1which the licensee receives or may receive dividends or other
2profit sharing distributions, other than a publicly held or
3traded company, for the purpose of the client obtaining
4services related to the transaction, then the licensee shall
5disclose that fact to the client at the time of making the
6referral.
7    (d) If in any one transaction a sponsoring broker receives
8compensation from both the buyer and seller or lessee and
9lessor of real estate, the sponsoring broker shall disclose in
10writing to a client the fact that the compensation is being
11paid by both buyer and seller or lessee and lessor.
12    (e) Nothing in the Act shall prohibit the cooperation with
13or a payment of compensation to a person not domiciled in this
14State or country who is licensed as a real estate broker in his
15or her state or country of domicile or to a resident of a
16country that does not require a person to be licensed to act as
17a real estate broker if the person complies with the laws of
18the country in which that person resides and practices there as
19a real estate broker.
20    (f) Any broker or other party representing an individual,
21company, or other entity seeking to lease commercial real
22estate, including retail, office, or industrial property, but
23not residential property, in excess of 3,000 square feet of
24floor space for a term of one year or more, shall, before
25engaging in any activity in connection with the representation,
26provide the tenant with a written statement setting forth, in

 

 

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1reasonable detail, the basis on which the broker intends to
2charge a commission or fee for the representation, such as
3percentage of rent, charge per square foot of floor space per
4year, a fixed amount, or any other other charge, and a
5reasonable estimate of the dollar amount of the fee.
6    (g) Any owner of commercial real estate shall, before
7leasing floor space in excess of 3,000 square feet for a period
8of one year or more, provide the tenant with a written
9statement of all commissions to be paid to a broker in
10connection with the transaction.
11    (h) Any broker or owner of commercial real estate who fails
12to comply with the requirements of subsections (f) and (g) of
13this Section in connection with any signed lease shall be
14liable to the tenant under the lease in an amount up to 3 times
15the amount of the commission or other fees charged from the
16transaction, plus any reasonable legal fees incurred in
17enforcing this subsection (h).
18(Source: P.A. 91-245, eff. 12-31-99; 92-217, eff. 8-2-01.)".