(225 ILCS 454/1-10)
(Section scheduled to be repealed on January 1, 2020)
In this Act, unless the context otherwise requires:
"Act" means the
Real Estate License Act of 2000.
"Address of record" means the designated address recorded by the Department in the applicant's or licensee's application file or license file as maintained by the Department's licensure maintenance unit. It is the duty of the applicant or licensee to inform the Department of any change of address, and those changes must be made either through the Department's website or by contacting the Department.
"Agency" means a relationship in which a broker or licensee,
whether directly or through an affiliated licensee, represents a consumer by
the consumer's consent, whether express or implied, in a real property
"Applicant" means any person, as defined in this Section, who applies to
the Department for a valid license as a managing broker, broker, or
"Blind advertisement" means any real estate advertisement that does not
include the sponsoring broker's business name and that is used by any licensee
regarding the sale or lease of real estate, licensed
activities, or the hiring of any licensee under this Act. The broker's
business name in the case of a franchise shall include the franchise
affiliation as well as the name of the individual firm.
"Board" means the Real Estate Administration and Disciplinary Board of the Department as created by Section 25-10 of this Act.
"Branch office" means a sponsoring broker's office other than the sponsoring
broker's principal office.
"Broker" means an individual, entity, corporation, foreign or domestic partnership, limited liability company,
registered limited liability partnership, or other business entity other than a leasing agent who, whether in person or through any media or technology, for another and for compensation, or
with the intention or expectation of receiving compensation, either
directly or indirectly:
(1) Sells, exchanges, purchases, rents, or leases
"Brokerage agreement" means a written or oral agreement between a sponsoring
broker and a consumer for licensed activities to be provided to a consumer in
return for compensation or the right to receive compensation from another.
Brokerage agreements may constitute either a bilateral or a unilateral
agreement between the broker and the broker's client depending upon the content
of the brokerage agreement. All exclusive brokerage agreements shall be in
"Broker price opinion" means an estimate or analysis of the probable selling price of a particular interest in real estate, which may provide a varying level of detail about the property's condition, market, and neighborhood and information on comparable sales. The activities of a real estate broker or managing broker engaging in the ordinary course of business as a broker, as defined in this Section, shall not be considered a broker price opinion if no compensation is paid to the broker or managing broker, other than compensation based upon the sale or rental of real estate.
"Client" means a person who is being represented by a licensee.
"Comparative market analysis" is an analysis or opinion regarding pricing, marketing, or financial aspects relating to a specified interest or interests in real estate that may be based upon an analysis of comparative market data, the expertise of the real estate broker or managing broker, and such other factors as the broker or managing broker may deem appropriate in developing or preparing such analysis or opinion. The activities of a real estate broker or managing broker engaging in the ordinary course of business as a broker, as defined in this Section, shall not be considered a comparative market analysis if no compensation is paid to the broker or managing broker, other than compensation based upon the sale or rental of real estate.
"Compensation" means the valuable consideration given by one person or entity
to another person or entity in exchange for the performance of some activity or
service. Compensation shall include the transfer of valuable consideration,
including without limitation the following:
(2) referral fees;
(6) finder fees;
(7) performance of services;
(8) coupons or gift certificates;
(11) a chance to win a raffle, drawing, lottery, or
"Confidential information" shall not be considered to include material
information about the physical condition of the property.
"Consumer" means a person or entity seeking or receiving licensed
"Coordinator" means the Coordinator of Real Estate created in Section 25-15 of this Act.
"Credit hour" means 50 minutes of classroom instruction in course work that
meets the requirements set forth in rules adopted by the Department.
"Customer" means a consumer who is not being represented by the licensee but
for whom the licensee is performing ministerial acts.
"Department" means the Department of Financial and Professional Regulation.
"Designated agency" means a contractual relationship between a sponsoring
broker and a client under Section 15-50 of this Act in which one or more
licensees associated with or employed by the broker are designated as agent of
"Designated agent" means a sponsored licensee named by a sponsoring broker as
the legal agent of a client, as provided for in Section 15-50 of this Act.
"Dual agency" means an agency relationship in which a licensee is
representing both buyer and seller or both landlord and tenant in the same
transaction. When the agency relationship is a designated agency, the
question of whether there is a dual agency shall be determined by the agency
relationships of the designated agent of the parties and not of the sponsoring
"Education provider" means a school licensed by the Department offering courses in pre-license, post-license, or continuing education required by this Act.
"Employee" or other derivative of the word "employee", when used to refer to,
describe, or delineate the relationship between a sponsoring broker and a managing broker, broker, or a leasing agent, shall be
construed to include an independent contractor relationship, provided that a
written agreement exists that clearly establishes and states the relationship.
All responsibilities of a broker shall remain.
"Escrow moneys" means all moneys, promissory notes or any other type or
manner of legal tender or financial consideration deposited with any person for
the benefit of the parties to the transaction. A transaction exists once an
agreement has been reached and an accepted real estate contract signed or lease
agreed to by the parties. Escrow moneys includes without limitation earnest
moneys and security deposits, except those security deposits in which the
person holding the security deposit is also the sole owner of the property
being leased and for which the security deposit is being held.
"Electronic means of proctoring" means a methodology providing assurance that the person taking a test and completing the answers to questions is the person seeking licensure or credit for continuing education and is doing so without the aid of a third party or other device.
"Exclusive brokerage agreement" means a written brokerage agreement that provides that the sponsoring broker has the sole right, through one or more sponsored licensees, to act as the exclusive designated agent or representative of the client and that meets the requirements of Section 15-75 of this Act.
"Inoperative" means a status of licensure where the licensee holds a current
license under this Act, but the licensee is prohibited from engaging in
licensed activities because the licensee is unsponsored or the license of the
sponsoring broker with whom the licensee is associated or by whom he or she is
employed is currently expired, revoked, suspended, or otherwise rendered
invalid under this Act.
"Interactive delivery method" means delivery of a course by an instructor through a medium allowing for 2-way communication between the instructor and a student in which either can initiate or respond to questions.
"Leads" means the name or names of a potential buyer, seller, lessor, lessee, or client of a licensee.
"Leasing Agent" means a person who is employed by a broker to
engage in licensed activities limited to leasing residential real estate who
has obtained a license as provided for in Section 5-5 of this Act.
"License" means the document issued by the Department certifying that the person named
thereon has fulfilled all requirements prerequisite to licensure under this
"Licensed activities" means those activities listed in the definition of
"broker" under this Section.
"Licensee" means any person, as defined in this Section, who holds a
valid unexpired license as a managing broker, broker, or
"Listing presentation" means a communication between a managing broker or
broker and a consumer in which the licensee is attempting to secure a
brokerage agreement with the consumer to market the consumer's real estate for
sale or lease.
"Managing broker" means a broker who has supervisory responsibilities for
licensees in one or, in the case of a multi-office company, more than one
office and who has been appointed as such by the sponsoring broker.
"Medium of advertising" means any method of communication intended to
influence the general public to use or purchase a particular good or service or
"Ministerial acts" means those acts that a licensee may perform for a
consumer that are informative or clerical in nature and do not rise to the
level of active representation on behalf of a consumer. Examples of these acts
include without limitation (i) responding to phone inquiries by consumers as to
the availability and pricing of brokerage services, (ii) responding to phone
inquiries from a consumer concerning the price or location of property, (iii)
attending an open house and responding to questions about the property from a
consumer, (iv) setting an appointment to view property, (v) responding to
questions of consumers walking into a licensee's office concerning brokerage
services offered or particular properties, (vi) accompanying an appraiser,
inspector, contractor, or similar third party on a visit to a property, (vii)
describing a property or the property's condition in response to a consumer's
inquiry, (viii) completing business or factual information for a consumer on an
offer or contract to purchase on behalf of a client, (ix) showing a client
through a property being sold by an owner on his or her own behalf, or (x)
referral to another broker or service provider.
"Office" means a broker's place of business where the general
public is invited to transact business and where records may be maintained and
licenses displayed, whether or not it is the broker's principal place of
"Person" means and includes individuals, entities, corporations, limited
liability companies, registered limited liability partnerships, foreign and domestic
partnerships, and other business entities, except that when the context otherwise
requires, the term may refer to a single individual or other described entity.
"Personal assistant" means a licensed or unlicensed person who has been hired
for the purpose of aiding or assisting a sponsored licensee in the performance
of the sponsored licensee's job.
"Pocket card" means the card issued by the Department to signify that the person named
on the card is currently licensed under this Act.
"Pre-renewal period" means the period between the date of issue of a
currently valid license and the license's expiration date.
"Proctor" means any person, including, but not limited to, an instructor, who has a written agreement to administer examinations fairly and impartially with a licensed education provider.
"Real estate" means and includes leaseholds as well as any other interest or
estate in land, whether corporeal, incorporeal, freehold, or non-freehold and whether the real estate is situated in this
State or elsewhere. "Real estate" does not include property sold, exchanged, or leased as a timeshare or similar vacation item or interest, vacation club membership, or other activity formerly regulated under the Real Estate Timeshare Act of 1999 (repealed).
"Regular employee" means a person working an average of 20 hours per week for a person or entity who would be considered as an employee under the Internal Revenue Service eleven main tests in three categories being behavioral control, financial control and the type of relationship of the parties, formerly the twenty factor test.
"Secretary" means the Secretary of the Department of Financial and Professional Regulation, or a person authorized by the Secretary to act in the Secretary's stead.
"Sponsoring broker" means the broker who has issued a sponsor card to a
licensed managing broker, broker, or a leasing agent.
"Sponsor card" means the temporary permit issued by the sponsoring broker certifying that the managing broker, broker,
or leasing agent named thereon is employed by or associated by written
agreement with the sponsoring broker, as provided for in Section
5-40 of this Act.
(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18; 100-534, eff. 9-22-17; 100-831, eff. 1-1-19; 100-863, eff. 8-14-18