HB0598ham001 98TH GENERAL ASSEMBLY

Rep. Keith Farnham

Filed: 4/17/2013

09800HB0598ham001 LRB098 03420 MGM 44648 a

AMENDMENT TO HOUSE BILL 598

AMENDMENT NO. ______. Amend House Bill 598 by replacing everything after the enacting clause with the following:

"Section 5. The Real Estate License Act of 2000 is amended by changing Section 10-10 as follows:

(225 ILCS 454/10-10)

(Section scheduled to be repealed on January 1, 2020)

Sec. 10-10. Disclosure of compensation.

(a) A licensee must disclose to a client the sponsoring broker's compensation and policy with regard to cooperating with brokers who represent other parties in a transaction.

(b) A licensee must disclose to a client all sources of compensation related to the transaction received by the licensee from a third party.

(c) If a licensee refers a client to a third party in which the licensee has greater than a 1% ownership interest or from which the licensee receives or may receive dividends or other profit sharing distributions, other than a publicly held or traded company, for the purpose of the client obtaining services related to the transaction, then the licensee shall disclose that fact to the client at the time of making the referral.

(d) If in any one transaction a sponsoring broker receives compensation from both the buyer and seller or lessee and lessor of real estate, the sponsoring broker shall disclose in writing to a client the fact that the compensation is being paid by both buyer and seller or lessee and lessor.

(e) Nothing in the Act shall prohibit the cooperation with or a payment of compensation to a person not domiciled in this State or country who is licensed as a real estate broker in his or her state or country of domicile or to a resident of a country that does not require a person to be licensed to act as a real estate broker if the person complies with the laws of the country in which that person resides and practices there as a real estate broker.

(f) Any broker or other party representing an individual, company, or other entity seeking to lease commercial real estate, including retail, office, or industrial property, but not residential property, in excess of 3,000 square feet of floor space for a term of one year or more, shall, before engaging in any activity in connection with the representation, provide the tenant with a written statement setting forth, in reasonable detail, the basis on which the broker intends to charge a commission or fee for the representation, such as percentage of rent, charge per square foot of floor space per year, a fixed amount, or any other other charge, and a reasonable estimate of the dollar amount of the fee.

(g) Any owner of commercial real estate shall, before leasing floor space in excess of 3,000 square feet for a period of one year or more, provide the tenant with a written statement of all commissions to be paid to a broker in connection with the transaction.

(h) Any broker or owner of commercial real estate who fails to comply with the requirements of subsections (f) and (g) of this Section in connection with any signed lease shall be liable to the tenant under the lease in an amount up to 3 times the amount of the commission or other fees charged from the transaction, plus any reasonable legal fees incurred in enforcing this subsection (h).

(Source: P.A. 91-245, eff. 12-31-99; 92-217, eff. 8-2-01.)".