(225 ILCS 454/1-10)
(Section scheduled to be repealed on January 1, 2030)
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.
"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
residential leasing agent.
"Blind advertisement" means any real estate advertisement that is used by a licensee regarding the sale or lease of real estate, licensed activities, or the hiring of any licensee under this Act that does not
include the sponsoring broker's complete business name or, in the case of electronic advertisements, does not provide a direct link to a display with all the required disclosures. 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.
"Broker" means an individual, entity, corporation, foreign or domestic partnership, limited liability company,
registered limited liability partnership, or other business entity other than a residential 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
(2) Offers to sell, exchange, purchase, rent, or
(3) Negotiates, offers, attempts, or agrees to
negotiate the sale, exchange, purchase, rental, or leasing of real estate.
(4) Lists, offers, attempts, or agrees to list real
estate for sale, rent, lease, or exchange.
(5) Whether for another or themselves, engages in a
pattern of business of buying, selling, offering to buy or sell, marketing for sale, exchanging, or otherwise dealing in contracts, including assignable contracts for the purchase or sale of, or options on real estate or improvements thereon. For purposes of this definition, an individual or entity will be found to have engaged in a pattern of business if the individual or entity by itself or with any combination of other individuals or entities, whether as partners or common owners in another entity, has engaged in one or more of these practices on 2 or more occasions in any 12-month period.
(6) Supervises the collection, offer, attempt, or
agreement to collect rent for the use of real estate.
(7) Advertises or represents himself or herself as
being engaged in the business of buying, selling, exchanging, renting, or leasing real estate.
(8) Assists or directs in procuring or referring of
leads or prospects, intended to result in the sale, exchange, lease, or rental of real estate.
(9) Assists or directs in the negotiation of any
transaction intended to result in the sale, exchange, lease, or rental of real estate.
(10) Opens real estate to the public for marketing
(11) Sells, rents, leases, or offers for sale or
lease real estate at auction.
(12) Prepares or provides a broker price opinion or
comparative market analysis as those terms are defined in this Act, pursuant to the provisions of Section 10-45 of this Act.
"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. A broker price opinion shall not be considered an appraisal within the meaning of the Real Estate Appraiser Licensing Act of 2002, any amendment to that Act, or any successor Act.
"Client" means a person who is being represented by a licensee.
"Comparative market analysis" means 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. A comparative market analysis shall not be considered an appraisal within the meaning of the Real Estate Appraiser Licensing Act of 2002, any amendment to that Act, or any successor Act.
"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
similar game of chance not prohibited by any other law or statute;
(12) retainer fee; or
"Confidential information" means information obtained by a licensee from a
client during the term of a brokerage agreement that (i) was made confidential
by the written request or written instruction of the client, (ii) deals with
the negotiating position of the client, or (iii) is information the disclosure
of which could materially harm the negotiating position of the client, unless
at any time:
(1) the client permits the disclosure of information
given by that client by word or conduct;
(2) the disclosure is required by law; or
(3) the information becomes public from a source
"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 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.
"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.
"Designated managing broker" means a managing 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 registered with the Department.
"Director" means the Director of Real Estate within the Department of Financial and Professional Regulation.
"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 residential leasing agent, shall be
construed to include an independent contractor relationship, provided that a
written agreement exists that clearly establishes and states the relationship.
"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 agent or representative of the client and that meets the requirements of Section 15-75 of this Act.
"Inactive" 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. The license of any business entity that is not in good standing with the Illinois Secretary of State, or is not authorized to conduct business in Illinois, shall immediately become inactive and that entity shall be prohibited from engaging in any licensed activities.
"Leads" means the name or names of a potential buyer, seller, lessor, lessee, or client of a licensee.
"License" means the privilege conferred by the Department to a person that has fulfilled all requirements prerequisite to any type of 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
residential leasing agent.
"Listing presentation" means any communication, written or oral and by any means or media, 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 licensee who may be authorized to assume responsibilities as a designated managing broker for
licensees in one or, in the case of a multi-office company, more than one
office, upon appointment by the sponsoring broker and registration with the Department. A managing broker may act as his or her own sponsor.
"Medium of advertising" means any method of communication intended to
influence the general public to use or purchase a particular good or service or
real estate, including, but not limited to, print, electronic, social media, and digital forums.
"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.
"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 rules for classifying workers.
"Renewal period" means the period beginning 90 days prior to the expiration date of a license.
"Residential 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.
"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 certifies to the Department his, her, or its sponsorship of a
licensed managing broker, broker, or a residential leasing agent.
"Sponsorship" means that a sponsoring broker has certified to the Department that a managing broker, broker,
or residential leasing agent named thereon is employed by or associated by written
agreement with the sponsoring broker and the Department has registered the sponsorship, as provided for in Section
5-40 of this Act.
"Team" means any 2 or more licensees who work together to provide real estate brokerage services, represent themselves to the public as being part of a team or group, are identified by a team name that is different than their sponsoring broker's name, and together are supervised by the same managing broker and sponsored by the same sponsoring broker. "Team" does not mean a separately organized, incorporated, or legal entity.
(Source: P.A. 100-188, eff. 1-1-18; 100-534, eff. 9-22-17; 100-831, eff. 1-1-19; 100-863, eff. 8-14-18; 101-357, eff. 8-9-19.)
(225 ILCS 454/5-20)
(Section scheduled to be repealed on January 1, 2030)
Exemptions from managing broker, broker, or residential leasing agent license
requirement; Department exemption from education provider and related licenses.
The requirement for holding a license under this Article 5 shall
not apply to:
(1) Any person, as defined in Section 1-10, that as
owner or lessor performs any of the acts described in the definition of "broker" under Section 1-10 of this Act with reference to property owned or leased by it, or to the regular employees thereof with respect to the property so owned or leased, where such acts are performed in the regular course of or as an incident to the management, sale, or other disposition of such property and the investment therein, if such regular employees do not perform any of the acts described in the definition of "broker" under Section 1-10 of this Act in connection with a vocation of selling or leasing any real estate or the improvements thereon not so owned or leased.
(2) An attorney in fact acting under a duly executed
and recorded power of attorney to convey real estate from the owner or lessor or the services rendered by an attorney at law in the performance of the attorney's duty as an attorney at law.
(3) Any person acting as receiver, trustee in
bankruptcy, administrator, executor, or guardian or while acting under a court order or under the authority of a will or testamentary trust.
(4) Any person acting as a resident manager for the
owner or any employee acting as the resident manager for a broker managing an apartment building, duplex, or apartment complex, when the resident manager resides on the premises, the premises is his or her primary residence, and the resident manager is engaged in the leasing of the property of which he or she is the resident manager.
(5) Any officer or employee of a federal agency in
the conduct of official duties.
(6) Any officer or employee of the State government
or any political subdivision thereof performing official duties.
(7) Any multiple listing service or other similar
information exchange that is engaged in the collection and dissemination of information concerning real estate available for sale, purchase, lease, or exchange for the purpose of providing licensees with a system by which licensees may cooperatively share information along with which no other licensed activities, as defined in Section 1-10 of this Act, are provided.
(8) Railroads and other public utilities regulated by
the State of Illinois, or the officers or full-time employees thereof, unless the performance of any licensed activities is in connection with the sale, purchase, lease, or other disposition of real estate or investment therein that does not require the approval of the appropriate State regulatory authority.
(9) Any medium of advertising in the routine course
of selling or publishing advertising along with which no other licensed activities, as defined in Section 1-10 of this Act, are provided.
(10) Any resident lessee of a residential dwelling
unit who refers for compensation to the owner of the dwelling unit, or to the owner's agent, prospective lessees of dwelling units in the same building or complex as the resident lessee's unit, but only if the resident lessee (i) refers no more than 3 prospective lessees in any 12-month period, (ii) receives compensation of no more than $5,000 or the equivalent of 2 months' rent, whichever is less, in any 12-month period, and (iii) limits his or her activities to referring prospective lessees to the owner, or the owner's agent, and does not show a residential dwelling unit to a prospective lessee, discuss terms or conditions of leasing a dwelling unit with a prospective lessee, or otherwise participate in the negotiation of the leasing of a dwelling unit.
(11) The purchase, sale, or transfer of 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).
(13) Any person who is licensed without examination
under Section 10-25 (now repealed) of the Auction License Act is exempt from holding a managing broker's or broker's license under this Act for the limited purpose of selling or leasing real estate at auction, so long as:
(A) that person has made application for said
exemption by July 1, 2000;
(B) that person verifies to the Department that
he or she has sold real estate at auction for a period of 5 years prior to licensure as an auctioneer;
(C) the person has had no lapse in his or her
license as an auctioneer; and
(D) the license issued under the Auction License
Act has not been disciplined for violation of those provisions of Article 20 of the Auction License Act dealing with or related to the sale or lease of real estate at auction.
(14) A person who holds a valid license under the
Auction License Act and a valid real estate auction certification and conducts auctions for the sale of real estate under Section 5-32 of this Act.
(15) A hotel operator who is registered with the
Illinois Department of Revenue and pays taxes under the Hotel Operators' Occupation Tax Act and rents a room or rooms in a hotel as defined in the Hotel Operators' Occupation Tax Act for a period of not more than 30 consecutive days and not more than 60 days in a calendar year or a person who participates in an online marketplace enabling persons to rent out all or part of the person's owned residence.
(16) Notwithstanding any provisions to the
contrary, the Department and its employees shall be exempt from education, course provider, instructor, and course license requirements and fees while acting in an official capacity on behalf of the Department. Courses offered by the Department shall be eligible for continuing education credit.
(Source: P.A. 100-534, eff. 9-22-17; 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)
(225 ILCS 454/5-25)
(Section scheduled to be repealed on January 1, 2030)
Good moral character.
(a) When an applicant has had his or her license revoked on a prior occasion
or when an
applicant is found to have committed any of the practices enumerated in Section
20-20 of this Act or when an
applicant has been convicted of or enters a plea of guilty or nolo contendere to forgery, embezzlement, obtaining money under
larceny, extortion, conspiracy to defraud, or any other similar offense or
offenses or has been
convicted of a felony involving moral turpitude in any court of competent
jurisdiction in this or any
other state, district, or territory of the United States or of a foreign
country, the Board may consider
the prior revocation, conduct, or conviction in its determination of the
applicant's moral character
and whether to grant the applicant a license.
(b) In its consideration of the prior revocation, conduct, or conviction, the Board shall take into account the nature of the conduct, any aggravating or extenuating circumstances, the time elapsed since the revocation, conduct, or conviction, the rehabilitation or restitution performed by the applicant, mitigating factors, and any other factors that the Board deems relevant, including, but not limited to:
(1) the lack of direct relation of the offense for
which the applicant was previously convicted to the duties, functions, and responsibilities of the position for which a license is sought;
(2) unless otherwise specified, whether 5 years
since a felony conviction or 3 years since release from confinement for the conviction, whichever is later, have passed without a subsequent conviction;
(3) if the applicant was previously licensed or
employed in this State or other states or jurisdictions, the lack of prior misconduct arising from or related to the licensed position or position of employment;
(4) the age of the person at the time of the
(5) if, due to the applicant's criminal conviction
history, the applicant would be explicitly prohibited by federal rules or regulations from working in the position for which a license is sought;
(6) successful completion of sentence and, for
applicants serving a term of parole or probation, a progress report provided by the applicant's probation or parole officer that documents the applicant's compliance with conditions of supervision;
(7) evidence of the applicant's present fitness and
(8) evidence of rehabilitation or rehabilitative
effort during or after incarceration, or during or after a term of supervision, including, but not limited to, a certificate of good conduct under Section 5-5.5-25 of the Unified Code of Corrections or a certificate of relief from disabilities under Section 5-5.5-10 of the Unified Code of Corrections; and
(9) any other mitigating factors that contribute to
the person's potential and current ability to perform the job duties.
(c) The Department shall not require applicants to report the following information and shall not consider the following criminal history records in connection with an application for licensure or registration:
(1) juvenile adjudications of delinquent minors as
defined in Section 5-105 of the Juvenile Court Act of 1987 subject to the restrictions set forth in Section 5-130 of that Act;
(2) law enforcement records, court records, and
conviction records of an individual who was 17 years old at the time of the offense and before January 1, 2014, unless the nature of the offense required the individual to be tried as an adult;
(3) records of arrests not followed by a charge or
(4) records of arrests where the charges were
dismissed unless related to the practice of the profession; however, applicants shall not be asked to report any arrests, and an arrest not followed by a conviction shall not be the basis of a denial and may be used only to assess an applicant's rehabilitation;
(5) convictions overturned by a higher court; or
(6) convictions or arrests that have been sealed or
(d) If an applicant makes a false statement of material fact on his or her application, the false statement may in itself be sufficient grounds to revoke or refuse to issue a license.
(e) A licensee shall report to the Department, in a manner adopted by rule, any plea of guilty, or nolo contendere to forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any similar offense or offenses or any conviction of a felony involving moral turpitude that occurs during the licensee's term of licensure.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/5-60)
(Section scheduled to be repealed on January 1, 2030)
Managing broker licensed in another state; broker licensed in another state;
reciprocal agreements; agent
(a) A managing broker's license may be issued by the Department to a managing broker or its equivalent licensed under the laws of another state of the United States, under the following conditions:
(1) the managing broker holds a managing broker's
license in a state that has entered into a reciprocal agreement with the Department;
(2) the standards for that state for licensing as a
managing broker are substantially equal to or greater than the minimum standards in the State of Illinois;
(3) the managing broker has been actively practicing
as a managing broker in the managing broker's state of licensure for a period of not less than 2 years, immediately prior to the date of application;
(4) the managing broker furnishes the Department with
a statement under seal of the proper licensing authority of the state in which the managing broker is licensed showing that the managing broker has an active managing broker's license, that the managing broker is in good standing, and that no complaints are pending against the managing broker in that state;
(5) the managing broker passes a test on Illinois
specific real estate brokerage laws; and
(6) the managing broker was licensed by an
examination in the state that has entered into a reciprocal agreement with the Department.
(b) A broker's license may be issued by the Department to a broker or its equivalent licensed under the
laws of another
state of the United States, under the following conditions:
(1) the broker holds a broker's license in a state
that has entered into a reciprocal agreement with the Department;
(2) the standards for that state for licensing as a
broker are substantially equivalent to or greater than the minimum standards in the State of Illinois;
(4) the broker furnishes the Department with a
statement under seal of the proper licensing authority of the state in which the broker is licensed showing that the broker has an active broker's license, that the broker is in good standing, and that no complaints are pending against the broker in that state;
(5) the broker passes a test on Illinois specific
real estate brokerage laws; and
(6) the broker was licensed by an examination in a
state that has entered into a reciprocal agreement with the Department.
(d) As a condition precedent to the issuance of a license to a managing broker
or broker pursuant to this Section,
the managing broker or broker shall agree in writing to abide by all the provisions
of this Act with
respect to his or her real estate activities within the State of Illinois and
submit to the jurisdiction of the Department
as provided in this Act. The agreement shall be filed with the Department and shall
remain in force
for so long as the managing broker or broker is licensed by this State
and thereafter with
respect to acts or omissions committed while licensed as a managing broker or
broker in this State.
(e) Prior to the issuance of any license to any managing broker or broker pursuant to this Section, verification of
active licensure issued
for the conduct of such business in any other state must be filed with the Department by
the managing broker or broker,
and the same fees must be paid as provided in this Act for the obtaining of a
managing broker's or broker's license in this State.
(f) Licenses previously granted under reciprocal agreements with other
states shall remain in
force so long as the Department has a reciprocal agreement with the state that includes
the requirements of this Section, unless
that license is suspended, revoked, or terminated by the Department for any reason
suspension, revocation, or
termination of a resident licensee's license. Licenses granted under
reciprocal agreements may be
renewed in the same manner as a resident's license.
(g) Prior to the issuance of a license to a nonresident managing broker or broker, the managing broker or broker shall file with the Department, in a manner prescribed by the Department, a designation in writing that appoints the Secretary
to act as
his or her agent upon whom all judicial and other process or legal notices
directed to the managing broker or broker may be served. Service upon the agent so designated shall be
equivalent to personal
service upon the licensee. Copies of the appointment, certified by the Secretary, shall be
deemed sufficient evidence thereof and shall be admitted in evidence with the
same force and effect
as the original thereof might be admitted. In the written designation, the managing broker
shall agree that any lawful process against the licensee that is served upon
the agent shall be of
the same legal force and validity as if served upon the licensee and that the
authority shall continue
in force so long as any liability remains outstanding in this State. Upon the
receipt of any process or notice, the Secretary
shall forthwith deliver a copy of the same by regular mail or email to the last known
business address or email address of the
(h) Any person holding a valid license under this Section shall be eligible
to obtain a managing broker's license or a
broker's license without examination should that person change
their state of
domicile to Illinois and that person otherwise meets the qualifications for
licensure under this Act.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/10-30)
(Section scheduled to be repealed on January 1, 2030)
(a) No advertising, whether in print, via the Internet, or through social media, digital forums, or any other media, shall be fraudulent, deceptive, inherently misleading, or
proven to be
misleading in practice. Advertising shall be considered misleading or untruthful if,
when taken as a whole,
there is a distinct and reasonable possibility that it will be misunderstood or
will deceive the
ordinary consumer. Advertising shall
contain all information
necessary to communicate the information contained therein to the public in an accurate,
direct, and readily
comprehensible manner. Team names may not contain inherently misleading terms, such as "company", "realty", "real estate", "agency", "associates", "brokers", "properties", or "property".
(b) No blind advertisements may be used
by any licensee, in any media, except as provided for in this Section.
(c) A licensee shall disclose, in writing, to all parties in a transaction
his or her status as a
licensee and any and all interest the licensee has or may have in the real
estate constituting the
subject matter thereof, directly or indirectly, according to the following
(1) On broker yard signs or in broker advertisements,
no disclosure of ownership is necessary. However, the ownership shall be indicated on any property data form accessible to the consumer and disclosed to persons responding to any advertisement or any sign. The term "broker owned" or "agent owned" is sufficient disclosure.
(2) A sponsored or inactive licensee selling or
leasing property, owned solely by the sponsored or inactive licensee, without utilizing brokerage services of their sponsoring broker or any other licensee, may advertise "By Owner". For purposes of this Section, property is "solely owned" by a sponsored or inactive licensee if he or she (i) has a 100% ownership interest alone, (ii) has ownership as a joint tenant or tenant by the entirety, or (iii) holds a 100% beneficial interest in a land trust. Sponsored or inactive licensees selling or leasing "By Owner" shall comply with the following if advertising by owner:
(A) On "By Owner" yard signs, the sponsored or
inactive licensee shall indicate "broker owned" or "agent owned." "By Owner" advertisements used in any medium of advertising shall include the term "broker owned" or "agent owned."
(B) If a sponsored or inactive licensee runs
advertisements, for the purpose of purchasing or leasing real estate, he or she shall disclose in the advertisements his or her status as a licensee.
(C) A sponsored or inactive licensee shall not
use the sponsoring broker's name or the sponsoring broker's company name in connection with the sale, lease, or advertisement of the property nor utilize the sponsoring broker's or company's name in connection with the sale, lease, or advertising of the property in a manner likely to create confusion among the public as to whether or not the services of a real estate company are being utilized or whether or not a real estate company has an ownership interest in the property.
(d) A sponsored licensee may not advertise under his or her own name.
Advertising in any media shall be
under the direct supervision of the sponsoring or designated managing broker and in the
business name, which in the case of a franchise shall include the franchise
affiliation as well as the
name of the individual firm.
This provision does not apply under the following circumstances:
(1) When a licensee enters into a brokerage agreement
relating to his or her own real estate, or real estate in which he or she has an ownership interest, with another licensed broker; or
(2) When a licensee is selling or leasing his or her
own real estate or buying or leasing real estate for himself or herself, after providing the appropriate written disclosure of his or her ownership interest as required in paragraph (2) of subsection (c) of this Section.
(e) No licensee shall list his or her name or otherwise advertise in his or her own name to the
general public through any
medium of advertising as being in the real estate business without listing his
or her sponsoring
broker's business name.
(f) The sponsoring broker's business name and the name of the licensee must
appear in all
advertisements, including business cards. In advertising that includes the sponsoring broker's name and a team name or individual broker's name, the sponsoring broker's business name shall be at least equal in size or larger than the team name or that of the individual.
(g) Those individuals licensed as a managing broker and designated with the Department as a designated managing broker by their sponsoring broker shall identify themselves to the public in advertising, except on "For Sale" or similar signs, as a designated managing broker. No other individuals holding a managing broker's license may hold themselves out to the public or other licensees as a designated managing broker, but they may hold themselves out to be a managing broker.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/15-45)
(Section scheduled to be repealed on January 1, 2030)
(a) An individual licensee may act as a dual agent or a sponsoring broker may permit one or more of its sponsored licensees to act as dual agents in the same transaction only with the informed written
consent of all clients.
Informed written consent shall be presumed to have been given by any client who
signs a document
that includes the following:
"The undersigned (insert name(s)), ("Licensee"), may
undertake a dual representation (represent both the seller or landlord and the buyer or tenant) for the sale or lease of property. The undersigned acknowledge they were informed of the possibility of this type of representation. Before signing this document please read the following: Representing more than one party to a transaction presents a conflict of interest since both clients may rely upon Licensee's advice and the client's respective interests may be adverse to each other. Licensee will undertake this representation only with the written consent of ALL clients in the transaction. Any agreement between the clients as to a final contract price and other terms is a result of negotiations between the clients acting in their own best interests and on their own behalf. You acknowledge that Licensee has explained the implications of dual representation, including the risks involved, and understand that you have been advised to seek independent advice from your advisors or attorneys before signing any documents in this transaction.
WHAT A LICENSEE CAN DO FOR CLIENTS
WHEN ACTING AS A DUAL AGENT
1. Treat all clients honestly.
2. Provide information about the property to the buyer or
3. Disclose all latent material defects in the property
that are known to the Licensee.
4. Disclose financial qualification of the buyer or
tenant to the seller or landlord.
5. Explain real estate terms.
6. Help the buyer or tenant to arrange for property
7. Explain closing costs and procedures.
8. Help the buyer compare financing alternatives.
9. Provide information about comparable properties that
have sold so both clients may make educated decisions on what price to accept or offer.
WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
ACTING AS A DUAL AGENT
1. Confidential information that Licensee may know about
a client, without that client's permission.
2. The price or terms the seller or landlord will take
other than the listing price without permission of the seller or landlord.
3. The price or terms the buyer or tenant is willing to
pay without permission of the buyer or tenant.
4. A recommended or suggested price or terms the buyer or
5. A recommended or suggested price or terms the seller
or landlord should counter with or accept.
If either client is uncomfortable with this
disclosure and dual representation, please let Licensee know. You are not required to sign this document unless you want to allow Licensee to proceed as a Dual Agent in this transaction. By signing below, you acknowledge that you have read and understand this form and voluntarily consent to Licensee acting as a Dual Agent (that is, to represent BOTH the seller or landlord and the buyer or tenant) should that become necessary."
(b) The dual agency disclosure form provided for in subsection (a) of this
Section must be
presented by a licensee, who offers dual representation, to the client at the
time the brokerage
agreement is entered into and may be signed by the client at that time or at
any time before the
licensee acts as a dual agent as to the client.
(c) A licensee acting in a dual agency capacity in a transaction must obtain
confirmation from the licensee's clients of their prior consent for the
act as a dual agent in the
This confirmation should be obtained at the time the clients are executing any
offer or contract to
purchase or lease in a transaction in which the licensee is acting as a dual
agent. This confirmation
may be included in another document, such as a contract to purchase, in which
case the client must
not only sign the document but also initial the confirmation of dual agency
confirmation must state, at a minimum, the following:
"The undersigned confirm that they have previously
consented to (insert name(s)), ("Licensee"), acting as a Dual Agent in providing brokerage services on their behalf and specifically consent to Licensee acting as a Dual Agent in regard to the transaction referred to in this document."
(d) No cause of action shall arise on behalf of any person against a dual
agent for making
disclosures allowed or required by this Article, and the dual agent does not
terminate any agency
relationship by making the allowed or required disclosures.
(e) In the case of dual agency, each client and the licensee possess only
actual knowledge and
information. There shall be no imputation of knowledge or information among or
brokers, or their affiliated licensees.
(f) In any transaction, a licensee may without liability withdraw from
representing a client who
has not consented to a disclosed dual agency. The withdrawal shall not
prejudice the ability of the
licensee to continue to represent the other client in the transaction or limit
the licensee from
representing the client in other transactions. When a withdrawal as
contemplated in this subsection
(f) occurs, the licensee shall not receive a referral fee for referring a
client to another licensee unless
written disclosure is made to both the withdrawing client and the client that
continues to be
represented by the licensee.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/20-20)
(Section scheduled to be repealed on January 1, 2030)
Nature of and grounds for discipline.
(a) The Department may refuse to issue or renew a license, may place on probation, suspend,
license, reprimand, or take any other disciplinary or non-disciplinary action as the Department may deem proper and impose a
fine not to exceed
$25,000 upon any licensee or applicant under this Act or any person who holds himself or herself out as an applicant or licensee or against a licensee in handling his or her own property, whether held by deed, option, or otherwise, for any one or any combination of the
(1) Fraud or misrepresentation in applying for, or
procuring, a license under this Act or in connection with applying for renewal of a license under this Act.
(2) The licensee's conviction of or plea of guilty or
plea of nolo contendere to: (A) a felony or misdemeanor in this State or any other jurisdiction; or (B) the entry of an administrative sanction by a government agency in this State or any other jurisdiction. Action taken under this paragraph (2) for a misdemeanor or an administrative sanction is limited to a misdemeanor or administrative sanction that has as an essential element dishonesty or fraud or involves larceny, embezzlement, or obtaining money, property, or credit by false pretenses or by means of a confidence game.
(3) Inability to practice the profession with
reasonable judgment, skill, or safety as a result of a physical illness, including, but not limited to, deterioration through the aging process or loss of motor skill, or a mental illness or disability.
(4) Practice under this Act as a licensee in a retail
sales establishment from an office, desk, or space that is not separated from the main retail business and located within a separate and distinct area within the establishment.
(5) Having been disciplined by another state, the
District of Columbia, a territory, a foreign nation, or a governmental agency authorized to impose discipline if at least one of the grounds for that discipline is the same as or the equivalent of one of the grounds for which a licensee may be disciplined under this Act. A certified copy of the record of the action by the other state or jurisdiction shall be prima facie evidence thereof.
(6) Engaging in the practice of real estate brokerage
without a license or after the licensee's license or temporary permit was expired or while the license was inactive, revoked, or suspended.
(7) Cheating on or attempting to subvert the Real
Estate License Exam or a continuing education course or examination.
(8) Aiding or abetting an applicant to subvert or
cheat on the Real Estate License Exam or continuing education exam administered pursuant to this Act.
(9) Advertising that is inaccurate, misleading, or
contrary to the provisions of the Act.
(10) Making any substantial misrepresentation or
(11) Making any false promises of a character likely
to influence, persuade, or induce.
(12) Pursuing a continued and flagrant course of
misrepresentation or the making of false promises through licensees, employees, agents, advertising, or otherwise.
(13) Any misleading or untruthful advertising, or
using any trade name or insignia of membership in any real estate organization of which the licensee is not a member.
(14) Acting for more than one party in a transaction
without providing written notice to all parties for whom the licensee acts.
(15) Representing or attempting to represent, or
performing licensed activities for, a broker other than the sponsoring broker.
(16) Failure to account for or to remit any moneys or
documents coming into his or her possession that belong to others.
(17) Failure to maintain and deposit in a special
account, separate and apart from personal and other business accounts, all escrow moneys belonging to others entrusted to a licensee while acting as a broker, escrow agent, or temporary custodian of the funds of others or failure to maintain all escrow moneys on deposit in the account until the transactions are consummated or terminated, except to the extent that the moneys, or any part thereof, shall be:
(A) disbursed prior to the consummation or
termination (i) in accordance with the written direction of the principals to the transaction or their duly authorized agents, (ii) in accordance with directions providing for the release, payment, or distribution of escrow moneys contained in any written contract signed by the principals to the transaction or their duly authorized agents, or (iii) pursuant to an order of a court of competent jurisdiction; or
(B) deemed abandoned and transferred to the
Office of the State Treasurer to be handled as unclaimed property pursuant to the Revised Uniform Unclaimed Property Act. Escrow moneys may be deemed abandoned under this subparagraph (B) only: (i) in the absence of disbursement under subparagraph (A); (ii) in the absence of notice of the filing of any claim in a court of competent jurisdiction; and (iii) if 6 months have elapsed after the receipt of a written demand for the escrow moneys from one of the principals to the transaction or the principal's duly authorized agent.
The account shall be noninterest bearing, unless the
character of the deposit is such that payment of interest thereon is otherwise required by law or unless the principals to the transaction specifically require, in writing, that the deposit be placed in an interest-bearing account.
(18) Failure to make available to the Department all
escrow records and related documents maintained in connection with the practice of real estate within 24 hours of a request for those documents by Department personnel.
(19) Failing to furnish copies upon request of
documents relating to a real estate transaction to a party who has executed that document.
(20) Failure of a sponsoring broker or licensee to
timely provide sponsorship or termination of sponsorship information to the Department.
(21) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive, defraud, or harm the public, including, but not limited to, conduct set forth in rules adopted by the Department.
(22) Commingling the money or property of others with
his or her own money or property.
(23) Employing any person on a purely temporary or
single deal basis as a means of evading the law regarding payment of commission to nonlicensees on some contemplated transactions.
(24) Permitting the use of his or her license as a
broker to enable a residential leasing agent or unlicensed person to operate a real estate business without actual participation therein and control thereof by the broker.
(25) Any other conduct, whether of the same or a
different character from that specified in this Section, that constitutes dishonest dealing.
(26) Displaying a "for rent" or "for sale" sign on
any property without the written consent of an owner or his or her duly authorized agent or advertising by any means that any property is for sale or for rent without the written consent of the owner or his or her authorized agent.
(27) Failing to provide information requested by the
Department, or otherwise respond to that request, within 30 days of the request.
(28) Advertising by means of a blind advertisement,
except as otherwise permitted in Section 10-30 of this Act.
(29) A licensee under this Act or an unlicensed
individual offering guaranteed sales plans, as defined in Section 10-50, except to the extent set forth in Section 10-50.
(30) Influencing or attempting to influence, by any
words or acts, a prospective seller, purchaser, occupant, landlord, or tenant of real estate, in connection with viewing, buying, or leasing real estate, so as to promote or tend to promote the continuance or maintenance of racially and religiously segregated housing or so as to retard, obstruct, or discourage racially integrated housing on or in any street, block, neighborhood, or community.
(31) Engaging in any act that constitutes a violation
of any provision of Article 3 of the Illinois Human Rights Act, whether or not a complaint has been filed with or adjudicated by the Human Rights Commission.
(32) Inducing any party to a contract of sale or
lease or brokerage agreement to break the contract of sale or lease or brokerage agreement for the purpose of substituting, in lieu thereof, a new contract for sale or lease or brokerage agreement with a third party.
(33) Negotiating a sale, exchange, or lease of real
estate directly with any person if the licensee knows that the person has an exclusive brokerage agreement with another broker, unless specifically authorized by that broker.
(34) When a licensee is also an attorney, acting as
the attorney for either the buyer or the seller in the same transaction in which the licensee is acting or has acted as a managing broker or broker.
(35) Advertising or offering merchandise or services
as free if any conditions or obligations necessary for receiving the merchandise or services are not disclosed in the same advertisement or offer. These conditions or obligations include without limitation the requirement that the recipient attend a promotional activity or visit a real estate site. As used in this subdivision (35), "free" includes terms such as "award", "prize", "no charge", "free of charge", "without charge", and similar words or phrases that reasonably lead a person to believe that he or she may receive or has been selected to receive something of value, without any conditions or obligations on the part of the recipient.
(37) Violating the terms of a disciplinary order
issued by the Department.
(38) Paying or failing to disclose compensation in
violation of Article 10 of this Act.
(39) Requiring a party to a transaction who is not a
client of the licensee to allow the licensee to retain a portion of the escrow moneys for payment of the licensee's commission or expenses as a condition for release of the escrow moneys to that party.
(40) Disregarding or violating any provision of this
Act or the published rules adopted by the Department to enforce this Act or aiding or abetting any individual, foreign or domestic partnership, registered limited liability partnership, limited liability company, corporation, or other business entity in disregarding any provision of this Act or the published rules adopted by the Department to enforce this Act.
(41) Failing to provide the minimum services required
by Section 15-75 of this Act when acting under an exclusive brokerage agreement.
(42) Habitual or excessive use of or addiction to
alcohol, narcotics, stimulants, or any other chemical agent or drug that results in a managing broker, broker, or residential leasing agent's inability to practice with reasonable skill or safety.
(43) Enabling, aiding, or abetting an auctioneer, as
defined in the Auction License Act, to conduct a real estate auction in a manner that is in violation of this Act.
(44) Permitting any residential leasing agent or
temporary residential leasing agent permit holder to engage in activities that require a broker's or managing broker's license.
(45) Failing to notify the Department of any criminal
conviction that occurs during the licensee's term of licensure within 30 days after the conviction.
(46) A designated managing broker's failure to
provide an appropriate written company policy or failure to perform any of the duties set forth in Section 10-55.
(b) The Department may refuse to issue or renew or may suspend the license of any person who fails to file a return, pay the tax, penalty or interest shown in a filed return, or pay any final assessment of tax, penalty, or interest, as required by any tax Act administered by the Department of Revenue, until such time as the requirements of that tax Act are satisfied in accordance with subsection (g) of Section 2105-15 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.
(d) In cases where the Department of Healthcare and Family Services (formerly Department of Public Aid) has previously determined that a licensee or a potential licensee is more than 30 days delinquent in the payment of child support and has subsequently certified the delinquency to the Department may refuse to issue or renew or may revoke or suspend that person's license or may take other disciplinary action against that person based solely upon the certification of delinquency made by the Department of Healthcare and Family Services in accordance with item (5) of subsection (a) of Section 2105-15 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.
(e) In enforcing this Section, the Department or Board upon a showing of a possible violation may compel an individual licensed to practice under this Act, or who has applied for licensure under this Act, to submit to a mental or physical examination, or both, as required by and at the expense of the Department. The Department or Board may order the examining physician to present testimony concerning the mental or physical examination of the licensee or applicant. No information shall be excluded by reason of any common law or statutory privilege relating to communications between the licensee or applicant and the examining physician. The examining physicians shall be specifically designated by the Board or Department. The individual to be examined may have, at his or her own expense, another physician of his or her choice present during all aspects of this examination. Failure of an individual to submit to a mental or physical examination, when directed, shall be grounds for suspension of his or her license until the individual submits to the examination if the Department finds, after notice and hearing, that the refusal to submit to the examination was without reasonable cause.
If the Department or Board finds an individual unable to practice because of the reasons set forth in this Section, the Department or Board may require that individual to submit to care, counseling, or treatment by physicians approved or designated by the Department or Board, as a condition, term, or restriction for continued, reinstated, or renewed licensure to practice; or, in lieu of care, counseling, or treatment, the Department may file, or the Board may recommend to the Department to file, a complaint to immediately suspend, revoke, or otherwise discipline the license of the individual. An individual whose license was granted, continued, reinstated, renewed, disciplined or supervised subject to such terms, conditions, or restrictions, and who fails to comply with such terms, conditions, or restrictions, shall be referred to the Secretary for a determination as to whether the individual shall have his or her license suspended immediately, pending a hearing by the Department.
In instances in which the Secretary immediately suspends a person's license under this Section, a hearing on that person's license must be convened by the Department within 30 days after the suspension and completed without appreciable delay. The Department and Board shall have the authority to review the subject individual's record of treatment and counseling regarding the impairment to the extent permitted by applicable federal statutes and regulations safeguarding the confidentiality of medical records.
An individual licensed under this Act and affected under this Section shall be afforded an opportunity to demonstrate to the Department or Board that he or she can resume practice in compliance with acceptable and prevailing standards under the provisions of his or her license.
(Source: P.A. 100-22, eff. 1-1-18; 100-188, eff. 1-1-18; 100-534, eff. 9-22-17; 100-831, eff. 1-1-19; 100-863, eff. 8-14-18; 100-872, eff. 8-14-18; 101-81, eff. 7-12-19; 101-357, eff. 8-9-19.)