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90_SB1625
New Act
5 ILCS 80/4.10 from Ch. 127, par. 1904.10
5 ILCS 80/4.19 new
20 ILCS 2105/60 from Ch. 127, par. 60
205 ILCS 635/1-4 from Ch. 17, par. 2321-4
215 ILCS 155/3 from Ch. 73, par. 1403
605 ILCS 5/5-907 from Ch. 121, par. 5-907
765 ILCS 100/19 from Ch. 30, par. 719
765 ILCS 100/33 from Ch. 30, par. 733
765 ILCS 100/34 from Ch. 30, par. 734
770 ILCS 15/5 from Ch. 82, par. 655
815 ILCS 307/10-80
815 ILCS 413/10
225 ILCS 455/Act rep.
Repeals the Real Estate License Act of 1983 and creates
the Real Estate License Act of 1999 to supersede the Real
Estate License Act of 1983. Regulates through licensing
requirements real estate brokers, salespersons, leasing
agents, pre-license schools, pre-license instructors,
continuing education schools, and continuing education
instructors. Amends the Regulatory Agency Sunset Act to
repeal the new Act on January 1, 2009. Makes other changes.
Effective July 1, 1999.
LRB9010983NTsb
LRB9010983NTsb
1 AN ACT concerning real estate licenses.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 ARTICLE 1. GENERAL PROVISIONS
5 Section 1. Short title; Act supersedes Real Estate
6 License Act of 1983. This Act shall be known and may be cited
7 as the Real Estate License Act of 1999, and it shall
8 supersede the Real Estate License Act of 1983 repealed by
9 this Act.
10 Section 1-5. Legislative intent. The intent of the
11 General Assembly in enacting this statute is to evaluate the
12 competency of persons engaged in the real estate business and
13 to regulate this business for the protection of the public.
14 Section 1-10. Definitions. In this Act, unless the
15 context otherwise requires:
16 "Act" means the Real Estate License Act of 1999.
17 "Advisory Council" means the Real Estate Education
18 Advisory Council created under Section 30-10 of this Act.
19 "Agency" means a relationship in which a real estate
20 broker or licensee, whether directly or through an affiliated
21 licensee, represents a consumer by the consumer's consent,
22 whether express or implied, in a real property transaction.
23 "Applicant" means any person, as defined in this Section,
24 who applies to OBRE for a valid license as a real estate
25 broker, real estate salesperson, or leasing agent.
26 "Auction" means a method of selling property by means of
27 public call.
28 "Auctioneer" means a person hired to hold an auction, as
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1 defined in this Section.
2 "Blind advertisement" means any real estate advertisement
3 that does not include the sponsoring broker's business name
4 and that is used by any licensee regarding the sale or lease
5 of real estate, including his or her own licensed activities
6 or the hiring of any licensee under this Act. The broker's
7 business name in the case of a franchise shall include the
8 franchise affiliation as well as the name of the individual
9 firm.
10 "Board" means the Real Estate Administration and
11 Disciplinary Board of OBRE.
12 "Branch office" means a sponsoring broker's office other
13 than the sponsoring broker's principal office.
14 "Broker" means an individual, partnership, limited
15 liability company, corporation, or registered limited
16 liability partnership other than a real estate salesperson or
17 leasing agent who for another and for compensation either
18 directly or indirectly:
19 (1) Sells, exchanges, purchases, auctions, rents,
20 or leases real estate.
21 (2) Offers to sell, exchange, purchase, auction,
22 rent, or lease real estate.
23 (3) Negotiates, offers, attempts, or agrees to
24 negotiate the sale, exchange, purchase, rental, or
25 leasing of real estate.
26 (4) Lists, offers, attempts, or agrees to list real
27 estate for sale, auction, lease, or exchange.
28 (5) Buys, sells, offers to buy or sell, or
29 otherwise deals in options on real estate or improvements
30 thereon.
31 (6) Collects, offers, attempts, or agrees to
32 collect rent for the use of real estate.
33 (7) Advertises or represents himself or herself as
34 being engaged in the business of buying, selling,
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1 exchanging, auctioning, renting, or leasing real estate.
2 (8) Assists or directs in procuring or referring of
3 prospects, intended to result in the sale, exchange,
4 lease, or rental of real estate.
5 (9) Assists or directs in the negotiation of any
6 transaction intended to result in the sale, exchange,
7 lease, or rental of real estate.
8 (10) Opens real estate to the public for marketing
9 purposes.
10 "Brokerage agreement" means a written or oral agreement
11 between a sponsoring broker and a consumer for licensed
12 activities to be provided to a consumer in return for
13 compensation or the right to receive compensation from
14 another. Brokerage agreements constitute bilateral
15 agreements between a broker and the broker's client.
16 "Client" means a person who is being represented by a
17 licensee.
18 "Commissioner" means the Commissioner of Banks and Real
19 Estate or a person authorized by the Commissioner, the Office
20 of Banks and Real Estate Act, or this Act to act in the
21 Commissioner's stead.
22 "Compensation" means the valuable consideration given by
23 one person or entity to another person or entity in exchange
24 for the performance of some activity or service.
25 Compensation shall include the transfer of valuable
26 consideration, including without limitation the following:
27 (1) commissions;
28 (2) referral fees;
29 (3) bonuses;
30 (4) prizes;
31 (5) merchandise;
32 (6) finder fees;
33 (7) performance of services;
34 (8) coupons or gift certificates;
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1 (9) discounts;
2 (10) rebates;
3 (11) a chance to win a raffle, drawing, lottery, or
4 similar game of chance not prohibited by any other law or
5 statute;
6 (12) retainer fee; or
7 (13) salary.
8 "Confidential information" means information obtained by
9 a licensee from a client during the term of a brokerage
10 agreement that (i) was made confidential by the written
11 request or written instruction of the client, (ii) deals with
12 the negotiating position of the client, or (iii) is
13 information the disclosure of which could materially harm the
14 negotiating position of the client, unless at any time:
15 (1) the client permits the disclosure of
16 information given by that client by word or conduct;
17 (2) the disclosure is required by law; or
18 (3) the information becomes public from a source
19 other than the licensee.
20 "Confidential information" shall not be considered to
21 include material information about the physical condition of
22 the property.
23 "Consumer" means a person or entity seeking or receiving
24 licensed activities.
25 "Continuing education school" means any person licensed
26 by OBRE as a school for continuing education in accordance
27 with Section 30-15 of this Act.
28 "Credit hour" means 50 minutes of classroom instruction
29 in course work that meets the requirements set forth in rules
30 adopted by OBRE.
31 "Customer" means a consumer who is not being represented
32 by the licensee but for whom the licensee is performing
33 ministerial acts.
34 "Designated agency" means a contractual relationship
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1 between a sponsoring broker and a client under Section 15-50
2 of this Act in which one or more licensees associated with or
3 employed by the broker are designated as agent of the client.
4 "Designated agent" means a sponsored licensee named by a
5 sponsoring broker as the legal agent of a client, as provided
6 for in Section 15-50 of this Act.
7 "Director" means the Director of the Real Estate
8 Division, OBRE.
9 "Dual agency" means an agency relationship in which a
10 licensee is representing both buyer and seller or both
11 landlord and tenant in the same transaction. When the agency
12 relationship is a designated agency, the question of whether
13 there is a dual agency shall be determined by the agency
14 relationships of the designated agent of the parties and not
15 of the sponsoring broker.
16 "Employee" or other derivative of the word "employee",
17 when used to refer to, describe, or delineate the
18 relationship between a real estate broker and a real estate
19 salesperson, another real estate broker, or a leasing agent,
20 shall be construed to include an independent contractor
21 relationship, provided that a written agreement exists that
22 clearly establishes and states the relationship. All
23 responsibilities of a broker shall remain.
24 "Escrow moneys" means all moneys, promissory notes or any
25 other type or manner of legal tender or financial
26 consideration deposited with any person for the benefit of
27 the parties to the transaction. A transaction exists once an
28 agreement has been reached and an accepted real estate
29 contract signed or lease agreed to by the parties. Escrow
30 moneys includes without limitation earnest moneys and
31 security deposits, except those security deposits in which
32 the person holding the security deposit is also the sole
33 owner of the property being leased and for which the security
34 deposit is being held.
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1 "Inoperative" means a status of licensure where the
2 licensee holds a current license under this Act, but the
3 licensee is prohibited from engaging in licensed activities
4 because the licensee is unsponsored or the license of the
5 sponsoring broker with whom the licensee is associated or by
6 whom he or she is employed is currently expired, revoked,
7 suspended, or otherwise rendered invalid under this Act.
8 "Leasing Agent" means a person who is employed by a real
9 estate broker to engage in licensed activities limited to
10 leasing residential real estate who has obtained a license as
11 provided for in Section 5-5 of this Act.
12 "License" means the document issued by OBRE certifying
13 that the person named thereon has fulfilled all requirements
14 prerequisite to licensure under this Act.
15 "Licensed activities" means those activities listed in
16 the definition of "broker" under this Section.
17 "Licensee" means any person, as defined in this Section,
18 who holds a valid unexpired license as a real estate broker,
19 real estate salesperson, or leasing agent.
20 "Listing presentation" means a communication between a
21 real estate broker or salesperson and a consumer in which the
22 licensee is attempting to secure a brokerage agreement with
23 the consumer to market the consumer's real estate for sale or
24 lease.
25 "Managing broker" means a broker who has supervisory
26 responsibilities for licensees in one or, in the case of a
27 multi-office company, more than one office and who has been
28 appointed as such by the sponsoring broker of the real estate
29 firm.
30 "Medium of advertising" means any method of communication
31 intended to influence the general public to use or purchase a
32 particular good or service or real estate.
33 "Ministerial acts" means those acts that a licensee may
34 perform for a consumer that are informative or clerical in
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1 nature and do not rise to the level of active representation
2 on behalf of a consumer. Examples of these acts include
3 without limitation (i) responding to phone inquiries by
4 consumers as to the availability and pricing of brokerage
5 services, (ii) responding to phone inquiries from a consumer
6 concerning the price or location of property, (iii) attending
7 an open house and responding to questions about the property
8 from a consumer, (iv) setting an appointment to view
9 property, (v) responding to questions of consumers walking
10 into a licensee's office concerning brokerage services
11 offered or particular properties, (vi) accompanying an
12 appraiser, inspector, contractor, or similar third party on a
13 visit to a property, (vii) describing a property or the
14 property's condition in response to a consumer's inquiry,
15 (viii) completing business or factual information for a
16 consumer on an offer or contract to purchase on behalf of a
17 client, (ix) showing a client through a property being sold
18 by an owner on his or her own behalf, or (x) referral to
19 another broker or service provider.
20 "OBRE" means the Office of Banks and Real Estate.
21 "Office" means a real estate broker's place of business
22 where the general public is invited to transact business and
23 where records may be maintained and licenses displayed,
24 whether or not it is the broker's principal place of
25 business.
26 "Person" means and includes individuals, entities,
27 corporations, limited liability companies, registered limited
28 liability partnerships, and partnerships, foreign or
29 domestic, except that when the context otherwise requires,
30 the term may refer to a single individual or other described
31 entity.
32 "Personal assistant" means a licensed or unlicensed
33 person who has been hired for the purpose of aiding or
34 assisting a sponsored licensee of the sponsoring broker of
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1 the personal assistant in the performance of the sponsored
2 licensee's job.
3 "Pocket card" means the card issued by OBRE to signify
4 that the person named on the card is currently licensed under
5 this Act.
6 "Pre-license school" means a school licensed by OBRE
7 offering courses in subjects related to real estate
8 transactions, including the subjects upon which an applicant
9 is examined in determining fitness to receive a license.
10 "Prerenewal period" means the period between the date of
11 issue of a currently valid license and the license's
12 expiration date.
13 "Real estate" means and includes leaseholds as well as
14 any other interest or estate in land, whether corporeal,
15 incorporeal, freehold, or non-freehold and whether the real
16 estate is situated in this State or elsewhere.
17 "Real Estate Administration and Disciplinary Board" or
18 "Board" means the Real Estate Administration and Disciplinary
19 Board created by Section 25-10 of this Act.
20 "Salesperson" means any individual, other than a real
21 estate broker or leasing agent, who is employed by a real
22 estate broker or is associated by written agreement with a
23 real estate broker as an independent contractor and
24 participates in any activity described in the definition of
25 "broker" under this Section.
26 "Sponsoring broker" means the broker who has issued a
27 sponsor card to a licensed salesperson, another licensed
28 broker, or a leasing agent.
29 "Sponsor card" means the temporary permit issued by the
30 sponsoring real estate broker certifying that the real estate
31 broker, real estate salesperson, or leasing agent named
32 thereon is employed by or associated by written agreement
33 with the sponsoring real estate broker, as provided for in
34 Section 5-40 of this Act.
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1 ARTICLE 5. LICENSING AND EDUCATION
2 Section 5-5. Leasing agent license.
3 (a) The purpose of this Section is to provide for a
4 limited scope license to enable persons who wish to engage in
5 activities limited to the leasing of residential real
6 property for which a license is required under this Act, and
7 only those activities, to do so by obtaining the license
8 provided for under this Section.
9 (b) Notwithstanding the other provisions of this Act,
10 there is hereby created a leasing agent license that shall
11 enable the licensee to engage only in residential leasing
12 activities for which a license is required under this Act.
13 Such activities include without limitation leasing or renting
14 residential real property, collecting rent for the use of
15 residential real estate, or attempting, offering, or
16 negotiating to lease, rent, or collect rent for the use of
17 residential real property. Nothing in this Section shall be
18 construed to require a licensed real estate broker or
19 salesperson to obtain a leasing agent license in order to
20 perform leasing activities for which a license is required
21 under this Act. Licensed leasing agents must be sponsored and
22 employed by a sponsoring broker.
23 (c) OBRE, by rule, with the advice of the Board, shall
24 provide for the licensing of leasing agents, including the
25 issuance, renewal, and administration of licenses.
26 (d) Notwithstanding any other provisions of this Act to
27 the contrary, a person may engage in residential leasing
28 activities for which a license is required under this Act,
29 for a period of 120 consecutive days without being licensed,
30 so long as the person is acting under the supervision of a
31 licensed real estate broker and the broker has notified OBRE
32 that the person is pursuing licensure under this Section.
33 During the 120 day period all requirements of Sections 5-10
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1 and 5-65 of this Act with respect to education, successful
2 completion of an examination, and the payment of all required
3 fees must be satisfied. OBRE may adopt rules to ensure that
4 the provisions of this subsection are not used in a manner
5 that enables an unlicensed person to repeatedly or
6 continually engage in activities for which a license is
7 required under this Act.
8 Section 5-10. Application for leasing agent license.
9 Every person who desires to obtain a leasing agent license
10 shall apply to OBRE in writing on forms provided by OBRE. In
11 addition to any other information required to be contained in
12 the application, every application for an original or renewed
13 leasing agent license shall include the applicant's Social
14 Security number. All application or license fees must
15 accompany the application. Each applicant must be at least
16 18 years of age, must be of good moral character, shall have
17 successfully completed a 4-year course of study in a high
18 school or secondary school or an equivalent course of study
19 approved by the Illinois State Board of Education, and shall
20 successfully complete a written examination authorized by
21 OBRE sufficient to demonstrate the applicant's knowledge of
22 the provisions of this Act relating to leasing agents and the
23 applicant's competence to engage in the activities of a
24 licensed leasing agent. Applicants must successfully
25 complete 15 hours of instruction in an approved course of
26 study relating to the leasing of residential real property.
27 The course of study shall, among other topics, cover
28 environmental issues relating to residential real property.
29 Successfully completed course work, completed pursuant to the
30 requirements of this Section, may be applied to the course
31 work requirements to obtain a real estate broker's or
32 salesperson's license as provided by rule. The Advisory
33 Council shall recommend through the Board to OBRE and OBRE
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1 shall adopt requirements for approved courses, course
2 content, and the approval of courses, instructors, and
3 schools, as well as school and instructor fees. OBRE may
4 establish continuing education requirements for licensed
5 leasing agents, by rule, with the advice of the Advisory
6 Council and Board.
7 Section 5-15. Necessity of broker, salesperson, or
8 leasing agent license or sponsor card; ownership
9 restrictions.
10 (a) It is unlawful for any person, corporation, limited
11 liability company, or partnership to act as a real estate
12 broker, real estate salesperson, or leasing agent or to
13 advertise or assume to act as such broker, salesperson, or
14 leasing agent without a properly issued sponsor card or a
15 license issued under this Act by OBRE, either directly or
16 through its authorized designee.
17 (b) No corporation shall be granted a license or engage
18 in the business or capacity, either directly or indirectly,
19 of a real estate broker, unless every officer of the
20 corporation who actively participates in the real estate
21 activities of the corporation holds a license as a real
22 estate broker and unless every employee who acts as a
23 salesperson, or leasing agent for the corporation holds a
24 license as a real estate broker, salesperson, or leasing
25 agent.
26 (c) No partnership shall be granted a license or engage
27 in the business or serve in the capacity, either directly or
28 indirectly, of a real estate broker, unless every general
29 partner in the partnership holds a license as a real estate
30 broker and unless every employee who acts as a salesperson or
31 leasing agent for the partnership holds a license as a real
32 estate broker, salesperson, or leasing agent. In the case of
33 a registered limited liability partnership (LLP), every
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1 partner in the LLP must hold a license as a real estate
2 broker and every employee who acts as a salesperson or
3 leasing agent must hold a license as a real estate broker,
4 salesperson, or leasing agent.
5 (d) No limited liability company shall be granted a
6 license or engage in the business or serve in the capacity,
7 either directly or indirectly, of a real estate broker unless
8 every managing member in the limited liability company holds
9 a license as a real estate broker and unless every employee
10 who acts as a salesperson or leasing agent for the limited
11 liability company holds a license as a real estate broker,
12 salesperson, or leasing agent.
13 (e) No partnership, limited liability company, or
14 corporation shall be licensed to conduct a brokerage business
15 where an individual salesperson or leasing agent, or group of
16 salespersons or leasing agents, owns or directly or
17 indirectly controls more than 49% of the shares of stock or
18 other ownership in the partnership, limited liability
19 company, or corporation.
20 Section 5-20. Exemptions from broker, salesperson, or
21 leasing agent license requirement. The requirement for
22 holding a license under this Article 5 shall not apply to:
23 (1) Any person or entity that owns at least 51% of the
24 real estate being sold, leased, exchanged or otherwise
25 transferred. This exemption shall extend to the full-time
26 employees of any entity exempt under this Section who do not
27 engage in licensed activities described in the definition of
28 "broker" under Section 1-10 of this Act in connection with
29 real estate not so owned by that entity. However, this
30 exemption shall not apply to the employees of any affiliated,
31 related, or subsidiary entity that is not wholly owned by the
32 exempt entity nor to the employees of a general partner,
33 partner, or managing member of an entity unless that general
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1 partner, partner, or managing member owns at least a 51%
2 interest in the exempt entity.
3 (2) An attorney in fact acting under a duly executed and
4 recorded power of attorney to convey real estate from the
5 owner or lessor or the services rendered by an attorney at
6 law in the performance of the attorney's duty as an attorney
7 at law.
8 (3) Any person acting as receiver, trustee in
9 bankruptcy, administrator, executor, or guardian or while
10 acting under a court order or under the authority of a will
11 or testamentary trust.
12 (4) Any person acting as a resident manager for the
13 owner or any employee acting as the resident manager for a
14 broker managing an apartment building, duplex, or apartment
15 complex, when the resident manager resides on the premises,
16 the premises is his or her primary residence, and the
17 resident manager is engaged in the leasing of the property of
18 which he or she is the resident manager.
19 (5) Any officer or employee of a federal agency in the
20 conduct of official duties.
21 (6) Any officer or employee of the State government or
22 any political subdivision thereof performing official duties.
23 (7) Any multiple listing service or other information
24 exchange that is engaged in the collection and dissemination
25 of information concerning real estate available for sale,
26 purchase, lease, or exchange along with which no other
27 licensed activities are provided.
28 (8) Railroads and other public utilities regulated by
29 the State of Illinois, or the officers or full time employees
30 thereof, unless the performance of any licensed activities is
31 in connection with the sale, purchase, lease, or other
32 disposition of real estate or investment therein not needing
33 the approval of the appropriate State regulatory authority.
34 (9) Any medium of advertising in the routine course of
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1 selling or publishing advertising along with which no other
2 licensed activities are provided.
3 (10) Any resident lessee of a residential dwelling unit
4 who refers for compensation to the owner of the dwelling
5 unit, or to the owner's agent, prospective lessees of
6 dwelling units in the same building or complex as the
7 resident lessee's unit, but only if the resident lessee (i)
8 refers no more than 3 prospective lessees in any 12-month
9 period, (ii) receives compensation of no more than $1,000 or
10 the equivalent of one month's rent, whichever is less, in any
11 12-month period, and (iii) limits his or her activities to
12 referring prospective lessees to the owner, or the owner's
13 agent, and does not show a residential dwelling unit to a
14 prospective lessee, discuss terms or conditions of leasing a
15 dwelling unit with a prospective lessee, or otherwise
16 participate in the negotiation of the leasing of a dwelling
17 unit.
18 Section 5-25. Application for and issuance of broker or
19 salesperson license.
20 (a) Every person who desires to obtain a license shall
21 make application to OBRE in writing upon forms prepared and
22 furnished by OBRE. In addition to any other information
23 required to be contained in the application, every
24 application for an original or renewed license shall include
25 the applicant's Social Security number. Each applicant shall
26 be at least 21 years of age, be of good moral character, and
27 have successfully completed a 4-year course of study in a
28 high school or secondary school approved by the Illinois
29 State Board of Education or an equivalent course of study as
30 determined by an examination conducted by the Illinois State
31 Board of Education and shall be verified under oath by the
32 applicant. The minimum age of 21 years shall be waived for
33 any person seeking a license as a real estate salesperson who
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1 has attained the age of 18 and can provide evidence of the
2 successful completion of at least 4 semesters of
3 post-secondary school study as a full-time student or the
4 equivalent, with major emphasis on real estate courses, in a
5 school approved by OBRE.
6 (b) When an applicant has had his or her license revoked
7 on a prior occasion or when an applicant is found to have
8 committed any of the practices enumerated in Section 20-20 of
9 this Act or when an applicant has been convicted of forgery,
10 embezzlement, obtaining money under false pretenses, larceny,
11 extortion, conspiracy to defraud, or any other similar
12 offense or offenses or has been convicted of a felony
13 involving moral turpitude in any court of competent
14 jurisdiction in this or any other state, district, or
15 territory of the United States or of a foreign country, the
16 Board may consider the prior revocation, conduct, or
17 conviction in its determination of the applicant's moral
18 character and whether to grant the applicant a license. In
19 its consideration of the prior revocation, conduct, or
20 conviction, the Board shall take into account the nature of
21 the conduct, any aggravating or extenuating circumstances,
22 the time elapsed since the revocation, conduct, or
23 conviction, the rehabilitation or restitution performed by
24 the applicant, and any other factors that the Board deems
25 relevant. When an applicant has made a false statement of
26 material fact on his or her application, the false statement
27 may in itself be sufficient grounds to revoke or refuse to
28 issue a license.
29 (c) Every valid application for issuance of an initial
30 license shall be accompanied by a sponsor card and the fees
31 specified by rule.
32 (d) No applicant shall engage in any of the activities
33 covered by this Act until a valid sponsor card has been
34 issued to such applicant. The sponsor card shall be valid
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1 for a maximum period of 45 days from the date of issuance
2 unless extended for good cause as provided by rule.
3 (e) OBRE shall issue to each applicant entitled thereto
4 a license in such form and size as shall be prescribed by
5 OBRE. The procedure for terminating a license shall be
6 printed on the reverse side of the license. Each license
7 shall bear the name of the person so qualified, shall specify
8 whether the person is qualified to act in a broker or
9 salesperson capacity, and shall contain such other
10 information as shall be recommended by the Board and approved
11 by OBRE. Each person licensed under this Act shall display
12 his or her license conspicuously in his or her place of
13 business.
14 Section 5-30. Education requirements to obtain an
15 original broker or salesperson license.
16 (a) All applicants for a broker's license, except
17 applicants who meet the criteria set forth in subsection (c)
18 of this Section shall (i) give satisfactory evidence of
19 having completed at least 120 classroom hours, 45 of which
20 shall be those hours required to obtain a salesperson's
21 license plus 15 hours in brokerage administration courses, in
22 real estate courses approved by the Advisory Council or (ii)
23 for applicants who currently hold a valid real estate
24 salesperson's license, give satisfactory evidence of having
25 completed at least 75 hours in real estate courses, not
26 including the courses that are required to obtain a
27 salesperson's license, approved by the Advisory Council.
28 (b) All applicants for a salesperson's license, except
29 applicants who meet the criteria set forth in subsection (c)
30 of this Section shall give satisfactory evidence that they
31 have completed at least 45 hours of instruction in real
32 estate courses approved by the Advisory Council.
33 (c) The requirements specified in subsections (a) and
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1 (b) of this Section do not apply to applicants who:
2 (1) are currently admitted to practice law by the
3 Supreme Court of Illinois and are currently in active
4 standing; or
5 (2) show evidence of receiving a baccalaureate
6 degree including courses involving real estate or related
7 material from a college or university approved by the
8 Advisory Council.
9 (d) A minimum of 15 of the required hours of pre-license
10 education shall be in the areas of Article 15 of this Act,
11 disclosure and environmental issues, or any other currently
12 topical areas that are determined by the Advisory Council.
13 Section 5-35. Examination; broker or salesperson.
14 (a) Every person who makes application for an original
15 license as a broker or salesperson shall personally take and
16 pass a written examination authorized by OBRE and answer any
17 questions that may be required to determine the good moral
18 character of the applicant and the applicant's competency to
19 transact the business of broker or salesperson, as the case
20 may be, in such a manner as to safeguard the interests of the
21 public. In determining this competency, OBRE shall require
22 proof that the applicant has a good understanding and the
23 knowledge to conduct real estate brokerage and of the
24 provisions of this Act. The examination shall be prepared by
25 an independent testing service designated by OBRE, subject to
26 the approval of the examinations by the Board. The
27 designated independent testing service shall conduct the
28 examinations at such times and places as OBRE shall approve.
29 In addition, every person who desires to take the written
30 examination shall make application to do so to OBRE or to the
31 designated independent testing service in writing upon forms
32 approved by OBRE. An applicant shall be eligible to take the
33 examination only after successfully completing the education
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1 requirements, set forth in Section 5-30 of this Act, and
2 attaining the minimum age specified in this Act. Each
3 applicant shall be required to establish compliance with the
4 the eligibility requirements in the manner provided by the
5 rules promulgated for the administration of this Act.
6 (b) If a person who has received a passing score on the
7 written examination described in this Section fails to file
8 an application and meet all requirements for a license under
9 this Act within one year after receiving a passing score on
10 the examination, credit for the examination shall terminate.
11 The person thereafter may make a new application for
12 examination.
13 (c) If an applicant has failed an examination 3 times,
14 the applicant must repeat the pre-license education required
15 to sit for the examination. For the purposes of this
16 Section, the fourth attempt shall be the same as the first.
17 Approved education, as prescribed by this Act for licensure
18 as a salesperson or broker, shall be valid for a period
19 ending on the later of 2 years after the date of satisfactory
20 completion of the education or 2 years after the expiration
21 of the individual's license.
22 Section 5-40. Sponsor card; termination indicated by
23 license endorsement; association with new broker.
24 (a) The sponsoring broker shall prepare upon forms
25 provided by OBRE and deliver to each licensee employed by or
26 associated with the sponsoring broker a sponsor card
27 certifying that the person whose name appears thereon is in
28 fact employed by or associated with the sponsoring broker.
29 The sponsoring broker shall send a duplicate of each sponsor
30 card, along with a valid license or other authorization as
31 provided by rule and the appropriate fee, to OBRE within 24
32 hours of issuance of the sponsor card. It is a violation of
33 this Act for any broker to issue a sponsor card to any
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1 licensee or applicant unless the licensee or applicant
2 presents in hand a valid license or other authorization as
3 provided by rule.
4 (b) When a licensee terminates his or her employment or
5 association with a sponsoring broker or the employment is
6 terminated by the sponsoring broker, the licensee shall
7 obtain from the sponsoring broker his or her license endorsed
8 by the sponsoring broker indicating the termination. The
9 sponsoring broker shall surrender to OBRE a copy of the
10 license of the licensee within 2 days of the termination or
11 shall notify OBRE in writing of the termination and explain
12 why a copy of the license is not surrendered. Failure of the
13 sponsoring broker to surrender the license shall subject the
14 sponsoring broker to discipline under Section 20-20 of this
15 Act. The license of any licensee whose association with a
16 sponsoring broker is terminated shall automatically become
17 inoperative immediately upon the termination unless the
18 licensee accepts employment or becomes associated with a new
19 sponsoring broker pursuant to subsection (c) of this Section.
20 (c) When a licensee accepts employment or association
21 with a new sponsoring broker, the new sponsoring broker shall
22 send to OBRE a duplicate sponsor card, along with the
23 licensee's endorsed license or an affidavit of the licensee
24 of why the endorsed license is not surrendered, and shall pay
25 the appropriate fee prescribed by rule to cover
26 administrative expenses attendant to the changes in the
27 registration of the licensee.
28 Section 5-45. Offices.
29 (a) If a sponsoring broker maintains more than one
30 office within the State, the sponsoring broker shall apply
31 for a branch office license for each office other than the
32 sponsoring broker's principal place of business. The branch
33 office license shall be displayed conspicuously in each
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1 branch office. The name of each branch office shall be the
2 same as that of the sponsoring broker's principal office or
3 shall clearly delineate the branch office's relationship with
4 the principal office.
5 (b) The sponsoring broker shall name a managing broker
6 for each branch office and the sponsoring broker shall be
7 responsible for supervising all managing brokers. The
8 sponsoring broker shall notify OBRE in writing of the name of
9 all managing brokers of the sponsoring broker. Any changes
10 in managing brokers shall be reported to OBRE in writing
11 within 15 days of the change. Failure to do so shall subject
12 the sponsoring broker to discipline under Section 20-20 of
13 this Act.
14 (c) The sponsoring broker shall immediately notify OBRE
15 in writing of any opening, closing, or change in location of
16 any principal or branch office.
17 (d) Except as provided in this Section, each sponsoring
18 broker shall maintain a definite office, or place of business
19 within this State for the transaction of real estate
20 business, shall conspicuously display an identification sign
21 on the outside of his or her office of adequate size and
22 visibility, and shall conspicuously display his or her
23 license in his or her office or place of business and also
24 the licenses of all persons associated with or employed by
25 the sponsoring broker who primarily work at that location.
26 The office or place of business shall not be located in any
27 retail or financial business establishment unless it is
28 separated from the other business by a separate and distinct
29 area within the establishment. A broker who is licensed in
30 this State by examination or pursuant to the provisions of
31 Section 5-60 of this Act shall not be required to maintain a
32 definite office or place of business in this State provided
33 all of the following conditions are met:
34 (1) the broker maintains an active broker's license
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1 in the broker's state of domicile;
2 (2) the broker maintains an office in the broker's
3 state of domicile; and
4 (3) the broker has filed with OBRE written
5 statements appointing the Commissioner to act as the
6 broker's agent upon whom all judicial and other process
7 or legal notices directed to the licensee may be served
8 and agreeing to abide by all of the provisions of this
9 Act with respect to his or her real estate activities
10 within the State of Illinois and submitting to the
11 jurisdiction of OBRE.
12 The statements under subdivision (3) of this Section
13 shall be in form and substance the same as those statements
14 required under Section 5-60 of this Act and shall operate to
15 the same extent.
16 (e) Upon the loss of a managing broker who is not
17 replaced by the sponsoring broker or in the event of the
18 death or adjudicated disability of the sole proprietor of an
19 office, a written request for authorization allowing the
20 continued operation of the office may be submitted to OBRE
21 within 15 days of the loss. OBRE may issue a written
22 authorization allowing the continued operation, provided that
23 a licensed broker, or in the case of the death or adjudicated
24 disability of a sole proprietor, the representative of the
25 estate, assumes responsibility, in writing, for the operation
26 of the office and agrees to personally supervise the
27 operation of the office. No such written authorization shall
28 be valid for more than 60 days unless extended by OBRE for
29 good cause shown and upon written request by the broker or
30 representative.
31 Section 5-50. Expiration date and renewal period of
32 broker, salesperson, or leasing agenct license; sponsoring
33 broker; register of licensees; pocket card.
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1 (a) The expiration date and renewal period for each
2 license issued under this Act shall be set by rule. Except
3 as otherwise provided in Section 5-55 of this Act, the holder
4 of a license may renew the license within 90 days preceding
5 the expiration date thereof by paying the fees specified by
6 rule. Upon written request from the sponsoring broker, OBRE
7 shall prepare and mail to the sponsoring broker a listing of
8 licensees under this Act who, according to the records of
9 OBRE, are sponsored by that broker. Every licensee
10 associated with or employed by a broker whose license is
11 revoked, suspended, terminated, or expired shall be
12 considered as inoperative until such time as the sponsoring
13 broker's license is reinstated or renewed, or the licensee
14 changes employment as set forth in subsection (c) of Section
15 5-40 of this Act.
16 (b) OBRE shall establish and maintain a register of all
17 persons currently licensed by the State and shall issue and
18 prescribe a form of pocket card. Upon payment by a licensee
19 of the appropriate fee as prescribed by rule for engagement
20 in the activity for which the licensee is qualified and holds
21 a license for the current period, OBRE shall issue a pocket
22 card to the licensee. The pocket card shall be verification
23 that the required fee for the current period has been paid
24 and shall indicate that the person named thereon is licensed
25 for the current renewal period as a broker, salesperson, or
26 leasing agent as the case may be. The pocket card shall
27 further indicate that the person named thereon is authorized
28 by OBRE to engage in the licensed activity appropriate for
29 his or her status (broker, salesperson, or leasing agent).
30 Each licensee shall carry on his or her person his or her
31 pocket card or, if such pocket card has not yet been issued,
32 a properly issued sponsor card when engaging in any licensed
33 activity and shall display the same on demand.
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1 Section 5-55. Expiration and renewal of broker or
2 salesperson license.
3 (a) Any broker or salesperson whose license under this
4 Act has expired shall be eligible to renew the license for a
5 period of 2 years following the expiration date, provided the
6 broker or salesperson pays the fees as prescribed by rule. A
7 broker or salesperson whose license has been expired for more
8 than 2 years shall be required to meet the requirements for a
9 new license.
10 (b) Notwithstanding any other provisions of this Act to
11 the contrary, any broker or salesperson whose license under
12 this Act has expired is eligible to renew the license without
13 paying any lapsed renewal fees or reinstatement fee, provided
14 that the license expired while the broker or salesperson was:
15 (1) on active duty with the United States Army,
16 United States Navy, United States Marine Corps, United
17 States Air Force, United States Coast Guard, or the State
18 Militia called into the service or training of the United
19 States;
20 (2) engaged in training or education under the
21 supervision of the United States prior to induction into
22 military service; or
23 (3) serving as the Director of Real Estate in the
24 State of Illinois or as an employee of OBRE.
25 A broker or salesperson shall be eligible to renew a
26 license under the provisions of this Section for a period of
27 2 years following the termination of the service, education,
28 or training, provided that the termination was by other than
29 dishonorable discharge and provided that the licensee
30 furnishes OBRE an affidavit specifying that the broker or
31 salesperson has been so engaged and that the service,
32 education, or training has been so terminated.
33 Section 5-60. Broker licensed in another state;
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1 nonresident salesperson; reciprocal agreements; agent for
2 service of process.
3 (a) A broker's license may be issued by OBRE to a broker
4 licensed under the laws of another state of the United
5 States, under the following conditions:
6 (1) the broker holds a broker's license in his or
7 her state of domicile;
8 (2) the standards for that state for licensing as a
9 broker are substantially equivalent to or greater than
10 the minimum standards in the State of Illinois;
11 (3) the broker has been actively practicing as a
12 broker in the broker's state of domicile for a period of
13 not less than 2 years, immediately prior to the date of
14 application;
15 (4) the broker furnishes OBRE with a statement
16 under seal of the proper licensing authority of the state
17 in which the broker is licensed showing that the broker
18 has an active broker's license, that the broker is in
19 good standing, and that no complaints are pending against
20 the broker in that state; and
21 (5) the broker completes a course of education and
22 passes a test on Illinois specific real estate brokerage
23 laws.
24 (b) A nonresident salesperson employed by or associated
25 with a nonresident broker holding a broker's license in this
26 State pursuant to this Section may, in the discretion of
27 OBRE, be issued a nonresident salesperson's license under the
28 nonresident broker provided all of the following conditions
29 are met:
30 (1) the salesperson maintains an active license in
31 the state in which he or she is domiciled;
32 (2) the salesperson is domiciled in the same state
33 as the broker with whom he or she is associated; and
34 (3) the salesperson completes a course of education
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1 and passes a test on Illinois specific real estate
2 brokerage laws.
3 The nonresident broker with whom the salesperson is
4 associated shall comply with the provisions of this Act and
5 issue the salesperson a sponsor card upon the form provided
6 by OBRE.
7 (c) As a condition precedent to the issuance of a
8 license to a nonresident broker or salesperson, the broker or
9 salesperson shall agree in writing to abide by all the
10 provisions of this Act with respect to his or her real estate
11 activities within the State of Illinois and submit to the
12 jurisdiction of OBRE as provided in this Act. The agreement
13 shall be filed with OBRE and shall remain in force for so
14 long as the nonresident broker or salesperson is licensed by
15 this State and thereafter with respect to acts or omissions
16 committed while licensed as a broker or salesperson in this
17 State.
18 (d) Prior to the issuance of any license to any
19 nonresident, verification of active licensure issued for the
20 conduct of such business in any other state must be filed
21 with OBRE by the nonresident, and the same fees must be paid
22 as provided in this Act for the obtaining of a broker's or
23 salesperson's license in this State.
24 (e) Licenses previously granted under reciprocal
25 agreements shall remain in force, unless suspended, revoked,
26 or terminated by OBRE for any reason provided for suspension,
27 revocation, or termination of a resident licensee's license.
28 Licenses granted under reciprocal agreements may be renewed
29 in the same manner as a resident's license.
30 (f) Prior to the issuance of a license to a nonresident
31 broker or salesperson, the broker or salesperson shall file
32 with OBRE a designation in writing that appoints the
33 Commissioner to act as his or her agent upon whom all
34 judicial and other process or legal notices directed to the
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1 broker or salesperson may be served. Service upon the agent
2 so designated shall be equivalent to personal service upon
3 the licensee. Copies of the appointment, certified by the
4 Commissioner, shall be deemed sufficient evidence thereof and
5 shall be admitted in evidence with the same force and effect
6 as the original thereof might be admitted. In the written
7 designation, the broker or salesperson shall agree that any
8 lawful process against the licensee that is served upon the
9 agent shall be of the same legal force and validity as if
10 served upon the licensee and that the authority shall
11 continue in force so long as any liability remains
12 outstanding in this State. Upon the receipt of any process
13 or notice, the Commissioner shall forthwith mail a copy of
14 the same by certified mail to the last known business address
15 of the licensee.
16 (g) Any person holding a valid license under this
17 Section shall be eligible to obtain a resident broker's or
18 salesperson's license without examination should that person
19 change their state of domicile to Illinois and that person
20 otherwise meets the qualifications or licensure under this
21 Act.
22 Section 5-65. Fees. OBRE shall provide by rule for fees
23 to be paid by applicants and licensees to cover the
24 reasonable costs of OBRE in administering and enforcing the
25 provisions of this Act. OBRE may also provide by rule for
26 general fees to cover the reasonable expenses of carrying out
27 other functions and responsibilities under this Act.
28 Section 5-70. Continuing education requirement; broker
29 or salesperson.
30 (a) Each person who applies for renewal of his or her
31 license as a real estate broker or real estate salesperson
32 must successfully complete real estate continuing education
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1 courses approved by the Advisory Council at the rate of 6
2 hours per year or its equivalent. No license may be renewed
3 except upon the successful completion of the required courses
4 or their equivalent or upon a waiver of those requirements
5 for good cause shown as determined by the Commissioner with
6 the recommendation of the Advisory Council. The requirements
7 of this Article are applicable to all brokers and
8 salespersons except those brokers and salespersons who,
9 during the prerenewal period:
10 (1) serve in the armed services of the United
11 States;
12 (2) serve as an elected State or federal official;
13 (3) serve as a full-time employee of OBRE; or
14 (4) are admitted to practice law pursuant to
15 Illinois Supreme Court rule.
16 (b) A person who is issued an initial license as a real
17 estate salesperson less than one year prior to the expiration
18 date of that license shall not be required to complete
19 continuing education as a condition of license renewal. A
20 person who is issued an initial license as a real estate
21 broker less than one year prior to the expiration date of
22 that license and who has not been licensed as a real estate
23 salesperson during the prerenewal period shall not be
24 required to complete continuing education as a condition of
25 license renewal.
26 (c) The continuing education requirement for
27 salespersons and brokers shall consist of a core curriculum
28 and an elective curriculum, to be established by the Advisory
29 Council. In meeting the continuing education requirements of
30 this Act, at least 3 hours per year or their equivalent shall
31 be required to be completed in the core curriculum. In
32 establishing the core curriculum, the Advisory Council shall
33 consider subjects that will educate licensees on recent
34 changes in applicable laws and new laws and refresh the
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1 licensee on areas of the license law and OBRE policy that the
2 Advisory Council deems appropriate, and any other areas that
3 the Advisory Council deems timely and applicable in order to
4 prevent violations of this Act and to protect the public. In
5 establishing the elective curriculum, the Advisory Council
6 shall consider subjects that cover the various aspects of the
7 practice of real estate that are covered under the scope of
8 this Act. However, the elective curriculum shall not include
9 any offerings referred to in Section 5-85 of this Act.
10 (d) The subject areas of continuing education courses
11 approved by the Advisory Council may include without
12 limitation the following:
13 (1) license law and escrow;
14 (2) anti-trust;
15 (3) fair housing;
16 (4) agency;
17 (5) appraisal;
18 (6) property management;
19 (7) residential brokerage;
20 (8) farm property management;
21 (9) rights and duties of sellers, buyers, and
22 brokers;
23 (10) commercial brokerage and leasing; and
24 (11) real estate financing.
25 (e) In lieu of credit for those courses listed in
26 subsection (d) of this Section, credit may be earned for
27 serving as a licensed instructor in an approved course of
28 continuing education. The amount of credit earned for
29 teaching a course shall be the amount of continuing education
30 credit for which the course is approved for licensees taking
31 the course.
32 (f) Credit hours may be earned for self-study programs
33 approved by the Advisory Council.
34 (g) A broker or salesperson may earn credit for a
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1 specific continuing education course only once during the
2 prerenewal period.
3 (h) No more than 6 hours of continuing education credit
4 may be earned in one calendar day.
5 Section 5-75. Out-of-state continuing education credit.
6 If a renewal applicant has earned continuing education hours
7 in another state or territory for which he or she is claiming
8 credit toward full compliance in Illinois, the Advisory
9 Council shall review, approve, or disapprove those hours
10 based upon whether the course is one that would be approved
11 under Section 5-70 of this Act, whether the course meets the
12 basic requirements for continuing education under this Act,
13 and any other criteria that is provided by statute or rule.
14 Section 5-80. Evidence of compliance with continuing
15 education requirements.
16 (a) Each renewal applicant shall certify, on his or her
17 renewal application, full compliance with continuing
18 education requirements set forth in Section 5-70. The
19 continuing education school shall retain and submit to OBRE
20 after the completion of each course evidence of those
21 successfully completing the course as provided by rule.
22 (b) OBRE may require additional evidence demonstrating
23 compliance with the continuing education requirements. The
24 renewal applicant shall retain and produce the evidence of
25 compliance upon request of OBRE.
26 Section 5-85. Offerings not meeting continuing education
27 requirements. The following offerings do not meet the
28 continuing education requirements:
29 (1) Examination preparation offerings, except as
30 provided in Section 5-70 of this Act.
31 (2) Offerings in mechanical office and business
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1 skills such as typing, speed reading, memory improvement,
2 advertising, or psychology of sales.
3 (3) Sales promotion or other meetings held in
4 conjunction with the general business of the attendee or
5 his or her employer.
6 (4) Meetings that are a normal part of in-house
7 staff or employee training.
8 The offerings listed in this Section do not limit the
9 Advisory Council's authority to disapprove any course that
10 fails to meet the standards of this Article 5 or rules
11 adopted by OBRE.
12 ARTICLE 10. COMPENSATION AND BUSINESS PRACTICES
13 Section 10-5. Payment of compensation.
14 (a) No licensee shall pay compensation directly to a
15 licensee sponsored by another broker for the performance of
16 licensed activities. No licensee sponsored by a broker may
17 pay compensation to any licensee other than his or her
18 sponsoring broker for the performance of licensed activities
19 unless the licensee paying the compensation is a principal to
20 the transaction. However, a non-sponsoring broker may pay
21 compensation directly to a licensee sponsored by another or a
22 person who is not sponsored by a broker if the payments are
23 made pursuant to terms of an employment agreement that was
24 previously in place between a licensee and the non-sponsoring
25 broker, and the payments are for licensed activity performed
26 by that person while previously sponsored by the now
27 non-sponsoring broker.
28 (b) No licensee sponsored by a broker shall accept
29 compensation for the performance of activities under this Act
30 except from the broker by whom the licensee is sponsored,
31 except as provided in this Section.
32 (c) Any person that is a licensed personal assistant for
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1 another licensee may only be compensated in his or her
2 capacity as a personal assistant by the sponsoring broker for
3 that licensed personal assistant.
4 (d) One sponsoring broker may pay compensation directly
5 to another sponsoring broker for the performance of licensed
6 activities.
7 Section 10-10. Disclosure of compensation.
8 (a) A licensee must disclose to a client the sponsoring
9 broker's compensation and policy with regard to cooperating
10 with brokers who represent other parties in a transaction.
11 (b) A licensee must disclose to a client all sources of
12 compensation related to the transaction received by the
13 licensee from a third party.
14 (c) If in any one transaction a sponsoring broker
15 receives compensation from both the buyer and seller or
16 lessee and lessor of real estate, the sponsoring broker shall
17 disclose in writing to a client the fact that the
18 compensation is being paid by both buyer and seller or lessee
19 and lessor.
20 (d) Nothing in the Act shall prohibit the cooperation
21 with or a payment of compensation to a person not domiciled
22 in this State who is licensed as a real estate broker in his
23 or her state of domicile.
24 Section 10-15. No compensation to persons in violation
25 of Act; compensation to unlicensed persons; consumer.
26 (a) No compensation may be paid to any unlicensed person
27 in exchange for the person performing licensed activities in
28 violation of this Act.
29 (b) No action or suit shall be instituted, nor recovery
30 therein be had, in any court of this State by any person,
31 partnership, registered limited liability partnership,
32 limited liability company, or corporation for compensation
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1 for any act done or service performed, the doing or
2 performing of which is prohibited by this Act to other than
3 licensed brokers, salespersons, or leasing agents unless the
4 person, partnership, limited liability company, or
5 corporation was duly licensed hereunder as a broker,
6 salesperson, or leasing agent under this Act at the time that
7 any such act was done or service performed that would give
8 rise to a cause of action for compensation.
9 (c) A licensee may offer compensation, including prizes,
10 merchandise, services, rebates, discounts, or other
11 consideration to an unlicensed person who is a party to a
12 contract to buy or sell real estate or is a party to a
13 contract for the lease of real estate, so long as the offer
14 complies with the provisions of subdivision (26) of
15 subsection (h) of Section 20-20 of this Act.
16 (d) A licensee may offer cash, gifts, prizes, awards,
17 coupons, merchandise, rebates or chances to win a game of
18 chance, if not prohibited by any other law or statute, to a
19 consumer as an inducement to that consumer to use the
20 services of the licensee even if the licensee and consumer do
21 not ultimately enter into a broker-client relationship so
22 long as the offer complies with the provisions of subdivision
23 (26) of subsection (h) of Section 20-20 of this Act.
24 Section 10-20. Sponsoring broker; employment agreement.
25 (a) A licensee may perform activities as a licensee only
26 for his or her sponsoring broker. A licensee must have only
27 one sponsoring broker at any one time.
28 (b) Every broker who employs licensees or has an
29 independent contractor relationship with a licensee shall
30 have a written employment agreement with each the licensee.
31 The broker having this written employment agreement with the
32 licensee must be that licensee's sponsoring broker.
33 (c) Every sponsoring broker must have a written
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1 employment agreement with each licensee the broker sponsors.
2 The agreement shall address the employment or independent
3 contractor relationship terms, including without limitation
4 supervision, duties, compensation, and termination.
5 (d) Every sponsoring broker must have a written
6 employment agreement with each licensed personal assistant
7 who assists a licensee sponsored by the sponsoring broker.
8 This requirement applies to all licensed personal assistants
9 whether or not they perform licensed activities in their
10 capacity as a personal assistant. The agreement shall address
11 the employment or independent contractor relationship terms,
12 including without limitation supervision, duties,
13 compensation, and termination.
14 (e) Notwithstanding the fact that a sponsoring broker
15 has an employment agreement with a licensee, a sponsoring
16 broker may pay compensation directly to a corporation solely
17 owned by that licensee that has been formed for the purpose
18 of receiving compensation earned by the licensee. A
19 corporation formed for the purpose herein stated in this
20 subsection (e) shall not be required to be licensed under
21 this Act so long as the person who is the sole shareholder of
22 the corporation is licensed.
23 Section 10-25. Expiration of brokerage agreement. No
24 licensee shall obtain any written brokerage agreement that
25 does not provide for automatic expiration within a definite
26 period of time. No notice of termination at the final
27 expiration thereof shall be required. Any written brokerage
28 agreement not containing a provision for automatic expiration
29 shall be void. When the license of any sponsoring broker is
30 suspended or revoked, any brokerage agreement with the
31 sponsoring broker shall be deemed to expire upon the
32 effective date of the suspension or revocation.
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1 Section 10-30. Advertising.
2 (a) No advertising shall be fraudulent, deceptive,
3 inherently misleading, or proven to be misleading in
4 practice. It shall be considered misleading or untruthful
5 if, when taken as a whole, there is a distinct and reasonable
6 possibility that it will be misunderstood or will deceive the
7 ordinary purchaser, seller, lessee, lessor, or owner.
8 Advertising shall contain all information necessary to
9 communicate the information contained therein to the public
10 in a direct and readily comprehensible manner.
11 (b) No blind advertisements may be used by any licensee
12 except as provided for in this Section.
13 (c) A licensee shall disclose, in writing, to all
14 parties in a transaction his or her status as a licensee and
15 any and all interest the licensee has or may have in the real
16 estate constituting the subject matter thereof, directly or
17 indirectly, according to the following guidelines:
18 (1) On broker yard signs or in broker
19 advertisements, no disclosure of ownership is necessary.
20 However, the ownership shall be indicated on any property
21 data form and disclosed to persons responding to any
22 advertisement or any sign. The term "broker owned" or
23 "agent owned" is sufficient disclosure.
24 (2) A sponsored or inoperative licensee selling or
25 leasing property, owned solely by the sponsored or
26 inoperative licensee, without utilizing brokerage
27 services of their sponsoring broker or any other
28 licensee, may advertise "By Owner". For purposes of this
29 Section, property is "solely owned" by a sponsored or
30 inoperative licensee if he or she (i) has a 100%
31 ownership interest alone, (ii) has ownership as a joint
32 tenant or tenant by the entirety, or (iii) holds a 100%
33 beneficial interest in a land trust. Sponsored or
34 inoperative licensees selling or leasing "By Owner" shall
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1 comply with the following if advertising by owner:
2 (A) On "By Owner" yard signs, the sponsored or
3 inoperative licensee shall indicate "broker owned"
4 or "agent owned." "By Owner" advertisements used in
5 any medium of advertising shall include the term
6 "broker owned" or "agent owned."
7 (B) If a sponsored or inoperative licensee
8 runs advertisements, for the purpose of purchasing
9 or leasing real estate, he or she shall disclose in
10 the advertisements his or her status as a licensee.
11 (C) A sponsored or inoperative licensee shall
12 not use the sponsoring broker's name or the
13 sponsoring broker's company name in connection with
14 the sale, lease, or advertisement of the property
15 nor utilize the sponsoring broker's or company's
16 name in connection with the sale, lease, or
17 advertising of the property in a manner likely to
18 create confusion among the public as to whether or
19 not the services of a real estate company are being
20 utilized or whether or not a real estate company has
21 an ownership interest in the property.
22 (d) A sponsored licensee may not advertise under his or
23 her own name. Advertising shall be under the direct
24 supervision of the sponsoring or managing broker and in the
25 sponsoring broker's business name, which in the case of a
26 franchise shall include the franchise affiliation as well as
27 the name of the individual firm. This provision does not
28 apply under the following circumstances:
29 (1) When a licensee enters into a brokerage
30 agreement relating to his or her own real estate, or real
31 estate in which he or she has an ownership interest, with
32 another licensed broker; or
33 (2) When a licensee is selling or leasing his or
34 her own real estate or buying or leasing real estate for
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1 himself or herself, after providing the appropriate
2 written disclosure of his or her ownership interest as
3 required in paragraph (2) of subsection (c) of this
4 Section.
5 (e) No licensee shall list his or her name under the
6 heading or title "Real Estate" in the telephone directory or
7 otherwise advertise in his or her own name to the general
8 public through any medium of advertising as being in the real
9 estate business without listing his or her sponsoring
10 broker's business name.
11 (f) The sponsoring broker's business name and the name
12 of the licensee must appear in all advertisements, including
13 business cards. Nothing in this Act shall be construed to
14 require specific print size as between the broker's business
15 name and the name of the licensee.
16 ARTICLE 15. AGENCY RELATIONSHIPS
17 Section 15-5. Legislative intent.
18 (a) The General Assembly finds that application of the
19 common law of agency to the relationships among real estate
20 brokers and salespersons and consumers of real estate
21 brokerage services has resulted in misunderstandings and
22 consequences that have been contrary to the best interests of
23 the public. The General Assembly further finds that the real
24 estate brokerage industry has a significant impact upon the
25 economy of the State of Illinois and that it is in the best
26 interest of the public to provide codification of the
27 relationships between real estate brokers and salespersons
28 and consumers of real estate brokerage services in order to
29 prevent detrimental misunderstandings and misinterpretations
30 of the relationships by consumers, real estate brokers, and
31 salespersons and thus promote and provide stability in the
32 real estate market. This Article 15 is enacted to govern the
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1 relationships between consumers of real estate brokerage
2 services and real estate brokers and salespersons to the
3 extent not governed by individual written agreements. This
4 Article 15 applies to the exclusion of the common law
5 concepts of principal and agent and to the fiduciary duties,
6 which have been applied to real estate brokers, salespersons,
7 and real estate brokerage services.
8 (b) The General Assembly further finds that this Article
9 15 is not intended to prescribe or affect contractual
10 relationships between real estate brokers and the broker's
11 affiliated licensees.
12 (c) This Article 15 may serve as a basis for private
13 rights of action and defenses by sellers, buyers, landlords,
14 tenants, real estate brokers, and real estate salespersons.
15 The private rights of action, however, do not extend to the
16 provisions of any other Articles of this Act.
17 Section 15-10. Relationships between licensees and
18 consumers. Licensees shall be considered to be representing
19 the consumer they are working with as a designated agent for
20 the consumer unless:
21 (1) there is a written agreement between the
22 sponsoring broker and the consumer providing that there
23 is a different relationship; or
24 (2) the licensee is performing only ministerial
25 acts on behalf of the consumer.
26 Section 15-15. Duties of licensees representing clients.
27 (a) A licensee representing a client shall:
28 (1) Perform the terms of the brokerage agreement
29 between a broker and the client.
30 (2) Promote the best interest of the client by:
31 (A) Seeking a transaction at the price and
32 terms stated in the brokerage agreement or at a
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1 price and terms otherwise acceptable to the client.
2 (B) Timely presenting all offers to and from
3 the client, unless the client has waived this duty.
4 (C) Disclosing to the client material facts
5 concerning the transaction of which the licensee has
6 actual knowledge, unless that information is
7 confidential information. Material facts do not
8 include physical conditions, fact situations, or
9 occurrences located on the real estate that is not
10 the subject of the transaction.
11 (D) Timely accounting for all money and
12 property received in which the client has, may have,
13 or should have had an interest.
14 (E) Obeying specific directions of the client
15 that are not otherwise contrary to applicable
16 statutes, ordinances, or rules.
17 (F) Acting in a manner consistent with
18 promoting the client's best interests as opposed to
19 a licensee's or any other person's self-interest.
20 (3) Exercise reasonable skill and care in the
21 performance of brokerage services.
22 (4) Keep confidential all confidential information
23 received from the client.
24 (5) Comply with all requirements of this Act and
25 all applicable statutes and regulations, including
26 without limitation fair housing and civil rights
27 statutes.
28 (b) A licensee representing a client does not breach a
29 duty or obligation to the client by showing alternative
30 properties to prospective buyers or tenants or by showing
31 properties in which the client is interested to other
32 prospective buyers or tenants.
33 (c) A licensee representing a buyer or tenant client
34 will not be presumed to have breached a duty or obligation to
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1 that client by working on the basis that the licensee will
2 receive a higher fee or compensation based on higher selling
3 price or lease cost.
4 (d) A licensee shall not be liable to a client for
5 providing false information to the client if the false
6 information was provided to the licensee by a customer unless
7 the licensee knew or should have known the information was
8 false.
9 (e) Nothing in the Section shall be construed as
10 changing a licensee's duty under common law as to negligent
11 or fraudulent misrepresentation of material information.
12 Section 15-20. Failure to disclose information not
13 affecting physical condition. No cause of action shall arise
14 against a licensee for the failure to disclose that an
15 occupant of that property was afflicted with Human
16 Immunodeficiency Virus (HIV) or any other medical condition
17 or that the property was the site of an act or occurrence
18 that had no effect on the physical condition of the property
19 or its environment or the structures located thereon.
20 Section 15-25. Licensee's relationship with customers.
21 (a) Licensees shall treat all customers honestly and
22 shall not negligently or knowingly give them false
23 information. A licensee engaged by a seller client shall
24 timely disclose to customers who are prospective buyers all
25 latent material adverse facts pertaining to the physical
26 condition of the property that are actually known by the
27 licensee and that could not be discovered by a reasonably
28 diligent inspection of the property by the customer. A
29 licensee shall not be liable to a customer for providing
30 false information to the customer if the false information
31 was provided to the licensee by the licensee's client and the
32 licensee did not have actual knowledge that the information
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1 was false. No cause of action shall arise on behalf of any
2 person against a licensee for revealing information in
3 compliance with this Section.
4 (b) A licensee representing a client in a real estate
5 transaction may provide assistance to a customer by
6 performing ministerial acts. Performing those ministerial
7 acts shall not be construed in a manner that would violate
8 the brokerage agreement with the client, and performing those
9 ministerial acts for the customer shall not be construed in a
10 manner as to form a brokerage agreement with the customer.
11 Section 15-30. Duties after termination of brokerage
12 agreement. Except as may be provided in a written agreement
13 between the broker and the client, neither a sponsoring
14 broker nor any licensee affiliated with the sponsoring broker
15 owes any further duties to the client after termination,
16 expiration, or completion of performance of the brokerage
17 agreement, except:
18 (1) to account for all moneys and property relating
19 to the transaction; and
20 (2) to keep confidential all confidential
21 information received during the course of the brokerage
22 agreement.
23 Section 15-35. Agency relationship disclosure.
24 (a) A consumer shall be advised of the following no
25 later than entering into a brokerage agreement with the
26 sponsoring broker:
27 (1) That a designated agency relationship exists,
28 unless there is written agreement between the sponsoring
29 broker and the consumer providing for a different
30 brokerage relationship.
31 (2) The name or names of his or her designated
32 agent or agents in writing.
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1 (3) The sponsoring broker's compensation and policy
2 with regard to cooperating with brokers who represent
3 other parties in a transaction.
4 (b) A licensee shall disclose in writing to a customer
5 that the licensee is not acting as the agent of the customer
6 at a time intended to prevent disclosure of confidential
7 information from a customer to a licensee, but in no event
8 later than the preparation of an offer to purchase or lease
9 real property. This subsection (b) does not apply to
10 residential lease or rental transactions unless the lease or
11 rental agreement includes an option to purchase real estate.
12 Section 15-40. Compensation does not determine agency.
13 Compensation does not determine agency relationship. The
14 payment or promise of payment of compensation to a licensee
15 is not determinative of whether an agency relationship has
16 been created between any licensee and a consumer.
17 Section 15-45. Dual agency.
18 (a) A licensee may act as a dual agent only with the
19 informed written consent of all clients. Informed written
20 consent shall be presumed to have been given by any client
21 who signs a document that includes the following:
22 "The undersigned (insert name(s)), ("Licensee"), may
23 undertake a dual representation (represent both the
24 seller or landlord and the buyer or tenant) for the sale
25 or lease of property. The undersigned acknowledge they
26 were informed of the possibility of this type of
27 representation. Before signing this document please read
28 the following: Representing more than one party to a
29 transaction presents a conflict of interest since both
30 clients may rely upon Licensee's advice and the client's
31 respective interests may be adverse to each other.
32 Licensee will undertake this representation only with the
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1 written consent of ALL clients in the transaction. Any
2 agreement between the clients as to a final contract
3 price and other terms is a result of negotiations between
4 the clients acting in their own best interests and on
5 their own behalf. You acknowledge that Licensee has
6 explained the implications of dual representation,
7 including the risks involved, and understand that you
8 have been advised to seek independent advice from your
9 advisors or attorneys before signing any documents in
10 this transaction.
11 WHAT A LICENSEE CAN DO FOR CLIENTS
12 WHEN ACTING AS A DUAL AGENT
13 1. Treat all clients honestly.
14 2. Provide information about the property to the buyer
15 or tenant.
16 3. Disclose all latent material defects in the property
17 that are known to the Licensee.
18 4. Disclose financial qualification of the buyer or
19 tenant to the seller or landlord.
20 5. Explain real estate terms.
21 6. Help the buyer or tenant to arrange for property
22 inspections.
23 7. Explain closing costs and procedures.
24 8. Help the buyer compare financing alternatives.
25 9. Provide information about comparable properties that
26 have sold so both clients may make educated decisions on
27 what price to accept or offer.
28 WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
29 ACTING AS A DUAL AGENT
30 1. Confidential information that Licensee may know about
31 the clients, without that client's permission.
32 2. The price the seller or landlord will take other than
33 the listing price without permission of the seller or
34 landlord.
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1 3. The price the buyer or tenant is willing to pay
2 without permission of the buyer or tenant.
3 4. A recommended or suggested price the buyer or tenant
4 should offer.
5 5. A recommended or suggested price the seller or
6 landlord should counter with or accept.
7 If either client is uncomfortable with this
8 disclosure and dual representation, please let Licensee
9 know. You are not required to sign this document unless
10 you want to allow Licensee to proceed as a Dual Agent in
11 this transaction. By signing below, you acknowledge that
12 you have read and understand this form and voluntarily
13 consent to Licensee acting as a Dual Agent (that is, to
14 represent BOTH the seller or landlord and the buyer or
15 tenant) should that become necessary."
16 (b) The dual agency disclosure form provided for in
17 subsection (a) of this Section must be presented by a
18 licensee, who offers dual representation, to the client at
19 the time the brokerage agreement is entered into and may be
20 signed by the client at that time or at any time before the
21 licensee acts as a dual agent as to the client.
22 (c) A licensee acting in a dual agency capacity in a
23 transaction must obtain a written confirmation from the
24 licensee's clients of their consent for the licensee to act
25 as a dual agent in the transaction. This confirmation should
26 be obtained at the time the clients are executing any offer
27 or contract to purchase or lease in a transaction in which
28 the licensee is acting as a dual agent. This confirmation
29 may be included in another document, such as a contract to
30 purchase, in which case the client must not only sign the
31 document but also initial the confirmation of dual agency
32 provision. That confirmation must state, at a minimum, the
33 following:
34 "The undersigned confirm that they have previously
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1 consented to (insert name(s)), ("Licensee"), acting as a
2 Dual Agent in providing brokerage services on their
3 behalf and specifically consent to Licensee acting as a
4 Dual Agent in regard to the transaction referred to in
5 this document."
6 (d) No cause of action shall arise on behalf of any
7 person against a dual agent for making disclosures allowed or
8 required by this Article, and the dual agent does not
9 terminate any agency relationship by making the allowed or
10 required disclosures.
11 (e) In the case of dual agency, each client and the
12 licensee possess only actual knowledge and information.
13 There shall be no imputation of knowledge or information
14 among or between clients, brokers, or their affiliated
15 licensees.
16 (f) In any transaction, a licensee may without liability
17 withdraw from representing a client who has not consented to
18 a disclosed dual agency. The withdrawal shall not prejudice
19 the ability of the licensee to continue to represent the
20 other client in the transaction or limit the licensee from
21 representing the client in other transactions. When a
22 withdrawal as contemplated in this subsection (f) occurs, the
23 licensee shall not receive a referral fee for referring a
24 client to another licensee unless written disclosure is made
25 to both the withdrawing client and the client that continues
26 to be represented by the licensee.
27 Section 15-50. Designated agency.
28 (a) A sponsoring broker entering into an agreement with
29 any person for the listing of property or for the purpose of
30 representing any person in the buying, selling, exchanging,
31 renting, or leasing of real estate may specifically designate
32 those licensees employed by or affiliated with the sponsoring
33 broker who will be acting as legal agents of that person to
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1 the exclusion of all other licensees employed by or
2 affiliated with the sponsoring broker. A sponsoring broker
3 entering into an agreement under the provisions of this
4 Section shall not be considered to be acting for more than
5 one party in a transaction if the licensees specifically
6 designated as legal agents of a person are not representing
7 more than one party in a transaction.
8 (b) A sponsoring broker designating affiliated licensees
9 to act as agents of clients shall take ordinary and necessary
10 care to protect confidential information disclosed by a
11 client to his or her designated agent.
12 (c) A designated agent may disclose to his or her
13 sponsoring broker or persons specified by the sponsoring
14 broker confidential information of a client for the purpose
15 of seeking advice or assistance for the benefit of the client
16 in regard to a possible transaction. Confidential
17 information shall not be disclosed by the sponsoring broker
18 or other specified representative of the sponsoring broker
19 unless otherwise required by this Act or requested or
20 permitted by the client who originally disclosed the
21 confidential information.
22 Section 15-55. No subagency. A broker is not considered
23 to be a subagent of a client of another broker solely by
24 reason of membership or other affiliation by the brokers in a
25 multiple listing service or other similar information source,
26 and an offer of subagency may not be made through a multiple
27 listing service or other similar information source.
28 Section 15-60. Vicarious liability. A consumer shall not
29 be vicariously liable for the acts or omissions of a licensee
30 in providing licensed activities for or on behalf of the
31 consumer.
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1 Section 15-65. Regulatory enforcement. Nothing contained
2 in this Article limits OBRE in its regulation of licensees
3 under other Articles of this Act and the substantive rules
4 adopted by OBRE. OBRE, with the advice of the Board, is
5 authorized to promulgate any rules that may be necessary for
6 the implementation and enforcement of this Article 15.
7 Section 15-70. Actions for damages.
8 (a) In any action brought under this Article 15, the
9 court may, in its discretion, award only actual damages and
10 court costs or grant injunctive relief, when appropriate.
11 (b) Any action under this Article 15 shall be forever
12 barred unless commenced within one year after the person
13 bringing the action knew or should reasonably have known of
14 such act or omission. In no event shall the action be
15 brought more than 4 years after the date on which the act or
16 omission occurred. If the person entitled to bring the
17 action is under the age of 18 or under legal disability the
18 period of limitations shall not begin to run until the
19 disability is removed.
20 ARTICLE 20. DISCIPLINARY PROVISIONS
21 Section 20-5. Index of decisions. OBRE shall maintain an
22 index of formal decisions regarding the issuance, refusal to
23 issue, renewal, refusal to renew, revocation, and suspension
24 of licenses and probationary or other disciplinary action
25 taken under this Act on or after July 1, 1999. The decisions
26 shall be indexed according to the Sections of statutes and
27 the administrative rules, if any, that are the basis for the
28 decision. The index shall be available to the public during
29 regular business hours.
30 Section 20-10. Unlicensed practice; civil penalty.
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1 (a) Any person who practices, offers to practice,
2 attempts to practice, or holds oneself out to practice as a
3 real estate broker, real estate salesperson, or leasing agent
4 without being licensed under this Act shall, in addition to
5 any other penalty provided by law, pay a civil fine to OBRE
6 in an amount not to exceed $25,000 for each offense as
7 determined by OBRE. The civil fine shall be assessed by OBRE
8 after a hearing is held in accordance with the provisions set
9 forth in this Act regarding the provision of a hearing for
10 the discipline of a license.
11 (b) OBRE has the authority and power to investigate any
12 and all unlicensed activity.
13 (c) The civil fine shall be paid within 60 days after
14 the effective date of the order imposing the civil fine. The
15 order shall constitute a judgement and may be filed and
16 execution had thereon in the same manner from any court of
17 record.
18 Section 20-15. Violations. The commission of a single
19 act prohibited by this Act or prohibited by the rules
20 promulgated under this Act or a violation of a disciplinary
21 order issued under this Act constitutes a violation of this
22 Act.
23 Section 20-20. Disciplinary actions; causes. OBRE may
24 refuse to issue or renew a license, may place on probation,
25 suspend, or revoke any license, or may censure, reprimand, or
26 otherwise discipline or impose a civil fine not to exceed
27 $25,000 upon any licensee hereunder for any one or any
28 combination of the following causes:
29 (a) When the applicant or licensee has, by false or
30 fraudulent representation, obtained or sought to obtain a
31 license.
32 (b) When the applicant or licensee has been convicted of
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1 any crime, an essential element of which is dishonesty or
2 fraud or larceny, embezzlement, or obtaining money, property,
3 or credit by false pretenses or by means of a confidence
4 game, has been convicted in this or another state of a crime
5 that is a felony under the laws of this State, or has been
6 convicted of a felony in a federal court.
7 (c) When the applicant or licensee has been adjudged to
8 be a person under legal disability or subject to involuntary
9 admission or to meet the standard for judicial admission as
10 provided in the Mental Health and Developmental Disabilities
11 Code.
12 (d) When the licensee performs or attempts to perform
13 any act as a broker or salesperson in a retail sales
14 establishment from an office, desk, or space that is not
15 separated from the main retail business by a separate and
16 distinct area within the establishment.
17 (e) Discipline of a licensee by another state, the
18 District of Columbia, a territory, a foreign nation, a
19 governmental agency, or any other entity authorized to impose
20 discipline if at least one of the grounds for that discipline
21 is the same as or the equivalent of one of the grounds for
22 discipline set forth in this Act, in which case the only
23 issue will be whether one of the grounds for that discipline
24 is the same or equivalent to one of the grounds for
25 discipline under this Act.
26 (f) When the applicant or licensee has engaged in real
27 estate activity without a license or after the licensee's
28 license was expired or while the license was inoperative.
29 (g) When the applicant or licensee attempts to subvert
30 or cheat on the Real Estate License Exam or continuing
31 education exam or aids and abets an applicant to subvert or
32 cheat on the Real Estate License Exam or continuing education
33 exam administered pursuant to this Act.
34 (h) When the licensee in performing, attempting to
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1 perform, or pretending to perform any act as a broker,
2 salesperson, or leasing agent or when the licensee in
3 handling his or her own property, whether held by deed,
4 option, or otherwise, is found guilty of:
5 (1) Making any substantial misrepresentation or
6 untruthful advertising.
7 (2) Making any false promises of a character likely
8 to influence, persuade, or induce.
9 (3) Pursuing a continued and flagrant course of
10 misrepresentation or the making of false promises through
11 licensees, employees, agents, advertising, or otherwise.
12 (4) Any misleading or untruthful advertising, or
13 using any trade name or insignia of membership in any
14 real estate organization of which the licensee is not a
15 member.
16 (5) Acting for more than one party in a transaction
17 without providing written notice to all parties for whom
18 the licensee acts.
19 (6) Representing or attempting to represent a
20 broker other than the employer.
21 (7) Failure to account for or to remit any moneys
22 or documents coming into his or her possession that
23 belong to others.
24 (8) Failure to maintain and deposit in a special
25 account, separate and apart from personal and other
26 business accounts, all escrow moneys belonging to others
27 entrusted to a licensee while acting as a real estate
28 broker, escrow agent, or temporary custodian of the funds
29 of others or failure to maintain all escrow moneys on
30 deposit in the account until the transactions are
31 consummated or terminated, except to the extent that the
32 moneys, or any part thereof, shall be disbursed prior to
33 the consummation or termination in accordance with (i)
34 the written direction of the principals to the
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1 transaction or their duly authorized agents or (ii)
2 directions providing for the release, payment, or
3 distribution of escrow moneys contained in any written
4 contract signed by the principals to the transaction or
5 their duly authorized agents. The account shall be
6 noninterest bearing, unless the character of the deposit
7 is such that payment of interest thereon is otherwise
8 required by law or unless the principals to the
9 transaction specifically require, in writing, that the
10 deposit be placed in an interest bearing account.
11 (9) Failure to make available to the real estate
12 enforcement personnel of OBRE during normal business
13 hours all escrow records and related documents maintained
14 in connection with the practice of real estate.
15 (10) Failing to furnish copies upon request of all
16 documents relating to a real estate transaction to all
17 parties executing them.
18 (11) Failure of a sponsoring broker to timely
19 provide information, sponsor cards, or termination of
20 licenses to OBRE.
21 (12) Having demonstrated unworthiness or
22 incompetency to act as a broker or salesperson in such
23 manner as to endanger the interest of the public.
24 (13) Commingling the money or property of others
25 with his or her own.
26 (14) Employing any person on a purely temporary or
27 single deal basis as a means of evading the law regarding
28 payment of commission to nonlicensees on some
29 contemplated transactions.
30 (15) Permitting the use of his or her license as a
31 broker to enable a salesperson or unlicensed person to
32 operate a real estate business without actual
33 participation therein and control thereof by the broker.
34 (16) Any other conduct, whether of the same or a
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1 different character from that specified in this Section,
2 that constitutes dishonest dealing.
3 (17) Displaying a "for rent" or "for sale" sign on
4 any property without the written consent of an owner or
5 his or her duly authorized agent or advertising by any
6 means that any property is for sale or for rent without
7 the written consent of the owner or his or her authorized
8 agent.
9 (18) Failing to provide information requested by
10 OBRE, within 30 days of the request, either as the result
11 of a formal or informal complaint to OBRE or as a result
12 of a random audit conducted by OBRE, which would indicate
13 a violation of this Act.
14 (19) Advertising by means of a blind advertisement,
15 except as otherwise permitted in Section 10-30 of this
16 Act.
17 (20) Offering guaranteed sales plans, as defined in
18 clause (A) of this subdivision (20), except to the extent
19 hereinafter set forth:
20 (A) A "guaranteed sales plan" is any real
21 estate purchase or sales plan whereby a broker
22 enters into a conditional or unconditional written
23 contract with a seller by the terms of which a
24 broker agrees to purchase a property of the seller
25 within a specified period of time at a specific
26 price in the event the property is not sold in
27 accordance with the terms of a listing contract
28 between the broker and the seller or on other terms
29 acceptable to the seller.
30 (B) A broker offering a guaranteed sales plan
31 shall provide the details and conditions of the plan
32 in writing to the party to whom the plan is offered.
33 (C) A broker offering a guaranteed sales plan
34 shall provide to the party to whom the plan is
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1 offered evidence of sufficient financial resources
2 to satisfy the commitment to purchase undertaken by
3 the broker in the plan.
4 (D) Any broker offering a guaranteed sales
5 plan shall undertake to market the property of the
6 seller subject to the plan in the same manner in
7 which the broker would market any other property,
8 unless the agreement with the seller provides
9 otherwise.
10 (E) Any broker who fails to perform on a
11 guaranteed sales plan in strict accordance with its
12 terms shall be subject to all the penalties provided
13 in this Act for violations thereof and, in addition,
14 shall be subject to a civil fine payable to the
15 party injured by the default in an amount of up to
16 $25,000.
17 (21) Influencing or attempting to influence, by any
18 words or acts, a prospective seller, purchaser, occupant,
19 landlord, or tenant of real estate, in connection with
20 viewing, buying, or leasing real estate, so as to promote
21 or tend to promote the continuance or maintenance of
22 racially and religiously segregated housing or so as to
23 retard, obstruct, or discourage racially integrated
24 housing on or in any street, block, neighborhood, or
25 community.
26 (22) Engaging in any act that constitutes a
27 violation of any provision of Article 3 of the Illinois
28 Human Rights Act, whether or not a complaint has been
29 filed with or adjudicated by the Human Rights Commission.
30 (23) Inducing any party to a contract of sale or
31 lease or brokerage agreement to break the contract of
32 sale or lease or brokerage agreement for the purpose of
33 substituting, in lieu thereof, a new contract for sale or
34 lease or brokerage agreement with a third party.
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1 (24) Negotiating a sale, exchange, or lease of real
2 estate directly with any person if the licensee knows
3 that the person has a written exclusive brokerage
4 agreement with another broker, unless specifically
5 authorized by that broker.
6 (25) When a licensee is also an attorney, acting as
7 the attorney for either the buyer or the seller in the
8 same transaction in which the licensee is acting or has
9 acted as a broker or salesperson.
10 (26) Advertising or offering merchandise or
11 services as free if any conditions or obligations
12 necessary for receiving the merchandise or services are
13 not disclosed in the same advertisement or offer. These
14 conditions or obligations include without limitation the
15 requirement that the recipient attend a promotional
16 activity or visit a real estate site. As used in this
17 subdivision (26), "free" includes terms such as "award",
18 "prize", "no charge," "free of charge," "without charge",
19 and similar words or phrases that reasonably lead a
20 person to believe that he or she may receive or has been
21 selected to receive something of value, without any
22 conditions or obligations on the part of the recipient.
23 (27) Disregarding or violating any provision of the
24 Land Sales Registration Act of 1989, the Illinois Real
25 Estate Time-Share Act, or the published rules promulgated
26 by OBRE to enforce those Acts.
27 (28) Violating the terms of a disciplinary order
28 issued by OBRE.
29 (29) Paying compensation in violation of Article 10
30 of this Act.
31 (30) Requiring a party to a transaction who is not
32 a client of the licensee to allow the licensee to retain
33 a portion of the escrow moneys for payment of the
34 licensee's commission or expenses as a condition for
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1 release of the escrow moneys to that party.
2 (31) Disregarding or violating any provision of
3 this Act or the published rules promulgated by OBRE to
4 enforce this Act or aiding or abetting any individual,
5 partnership, registered limited liability partnership,
6 limited liability company, or corporation in disregarding
7 any provision of this Act or the published rules
8 promulgated by OBRE to enforce this Act.
9 Section 20-25. Returned checks; fees. Any person who
10 delivers a check or other payment to OBRE that is returned to
11 OBRE unpaid by the financial institution upon which it is
12 drawn shall pay to OBRE, in addition to the amount already
13 owed to OBRE, a fee of $50. The fees imposed by this Section
14 are in addition to any other discipline provided under this
15 Act for unlicensed practice or practice on a nonrenewed
16 license. OBRE shall notify the person that payment of fees
17 and fines shall be paid to OBRE by certified check or money
18 order within 30 calendar days of the notification. If, after
19 the expiration of 30 days from the date of the notification,
20 the person has failed to submit the necessary remittance,
21 OBRE shall automatically terminate the license or deny the
22 application, without hearing. If, after termination or
23 denial, the person seeks a license, he or she shall apply to
24 OBRE for restoration or issuance of the license and pay all
25 fees and fines due to OBRE. OBRE may establish a fee for the
26 processing of an application for restoration of a license to
27 pay all expenses of processing this application. The
28 Commissioner may waive the fees due under this Section in
29 individual cases where the Commissioner finds that the fees
30 would be unreasonable or unnecessarily burdensome.
31 Section 20-30. Standards of practice of leasing agents;
32 disciplinary procedures. OBRE may by rule, with the advice of
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1 the Board, prescribe standards of practice to be followed by
2 licensed leasing agents. Standards of practice shall include
3 without limitation acts or omissions that leasing agents are
4 prohibited from engaging in, disciplinary procedures, and
5 penalties for violating provisions of this Act. Disciplinary
6 procedures shall conform with disciplinary procedures for
7 licensed real estate brokers and salespersons. Complaints
8 shall be heard as provided for in this Act.
9 Section 20-35. Violations of tax Acts. OBRE may refuse
10 to issue or renew or may suspend the license of any person
11 who fails to file a return, pay the tax, penalty, or interest
12 shown in a filed return, or pay any final assessment of tax,
13 penalty, or interest, as required by any tax Act administered
14 by the Department of Revenue, until such time as the
15 requirements of any such tax Act are satisfied.
16 Section 20-40. Disciplinary action for educational loan
17 defaults. OBRE shall deny a license or renewal authorized by
18 this Act to a person who has defaulted on an educational loan
19 or scholarship provided or guaranteed by the Illinois Student
20 Assistance Commission or any governmental agency of this
21 State; however, OBRE may issue a license or renewal if the
22 person has established a satisfactory repayment record as
23 determined by the Illinois Student Assistance Commission or
24 other appropriate governmental agency of this State.
25 Additionally, a license issued by OBRE may be suspended or
26 revoked if the Commissioner, after the opportunity for a
27 hearing under this Article, finds that the licensee has
28 failed to make satisfactory repayment to the Illinois Student
29 Assistance Commission for a delinquent or defaulted loan.
30 Section 20-45. Nonpayment of child support. In cases in
31 which the Department of Public Aid has previously determined
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1 that a licensee or a potential licensee is more than 30 days
2 delinquent in the payment of child support and has
3 subsequently certified the delinquency to OBRE, OBRE may
4 refuse to issue or renew or may revoke or suspend that
5 person's license or may take other disciplinary action
6 against that person based solely upon the certification of
7 delinquency made by the Department of Public Aid.
8 Redetermination of the delinquency by OBRE shall not be
9 required. In cases regarding the renewal of a license, OBRE
10 shall not renew any license if the Department of Public Aid
11 has certified the licensee to be more than 30 days delinquent
12 in the payment of child support unless the licensee has
13 arranged for payment of past and current child support
14 obligations in a manner satisfactory to the Department of
15 Public Aid. OBRE may impose conditions, restrictions, or
16 disciplinary action upon that renewal.
17 Section 20-50. Illegal discrimination. When there has
18 been an adjudication in a civil or criminal proceeding that a
19 licensee has illegally discriminated while engaged in any
20 activity for which a license is required under this Act,
21 OBRE, upon the recommendation of the Board as to the extent
22 of the suspension or revocation, shall suspend or revoke the
23 license of that licensee in a timely manner, unless the
24 adjudication is in the appeal process. When there has been an
25 order in an administrative proceeding finding that a licensee
26 has illegally discriminated while engaged in any activity for
27 which a license is required under this Act, OBRE, upon
28 recommendation of the Board as to the nature and extent of
29 the discipline, shall take one or more of the disciplinary
30 actions provided for in Section 20-20 of this Act in a timely
31 manner, unless the administrative order is in the appeal
32 process.
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1 Section 20-55. Illinois Administrative Procedure Act.
2 The Illinois Administrative Procedure Act is hereby expressly
3 adopted and incorporated herein as if all of the provisions
4 of that Act were included in this Act, except that the
5 provision of subsection (d) of Section 10-65 of the Illinois
6 Administrative Procedure Act that provides that at hearings
7 the licensee has the right to show compliance with all lawful
8 requirements for retention, continuation, or renewal of the
9 license is specifically excluded. For the purposes of this
10 Act, the notice required under the Illinois Administrative
11 Procedure Act is deemed sufficient when mailed to the last
12 known address of a party.
13 Section 20-60. Hearing; investigation; notice;
14 disciplinary consent order.
15 (a) OBRE may conduct hearings through the Board or a
16 duly appointed hearing officer on proceedings to suspend,
17 revoke, or to refuse to issue or renew licenses of persons
18 applying for licensure or licensed under this Act or to
19 censure, reprimand, or impose a civil fine not to exceed
20 $25,000 upon any licensee hereunder and may revoke, suspend,
21 or refuse to issue or renew these licenses or censure,
22 reprimand, or impose a civil fine not to exceed $25,000 upon
23 any licensee hereunder.
24 (b) Upon the motion of either OBRE or the Board or upon
25 the verified complaint in writing of any persons setting
26 forth facts that if proven would constitute grounds for
27 suspension or revocation under this Act, OBRE, the Board, or
28 its subcommittee shall cause to be investigated the actions
29 of any person so accused who holds a license or is holding
30 himself or herself out to be a licensee. This person is
31 hereinafter called the accused.
32 (c) Prior to initiating any formal disciplinary
33 proceedings resulting from an investigation conducted
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1 pursuant to subsection (b) of this Section, that matter shall
2 be reviewed by a subcommittee of the Board according to
3 procedures established by rule. The subcommittee shall make a
4 recommendation to the full Board as to the validity of the
5 complaint and may recommend that the Board not proceed with
6 formal disciplinary proceedings if the complaint is
7 determined to be frivolous or without merit.
8 (d) Except as provided for in Section 20-65 of this Act,
9 OBRE shall, before suspending, revoking, placing on
10 probationary status, or taking any other disciplinary action
11 as OBRE may deem proper with regard to any license:
12 (1) notify the accused in writing at least 30 days
13 prior to the date set for the hearing of any charges made
14 and the time and place for the hearing of the charges to
15 be heard before the Board under oath; and
16 (2) inform the accused that upon failure to file an
17 answer and request a hearing before the date originally
18 set for the hearing, default will be taken against the
19 accused and his or her license may be suspended, revoked,
20 or placed on probationary status, or other disciplinary
21 action, including limiting the scope, nature, or extent
22 of the accused's practice, as OBRE may deem proper, may
23 be taken with regard thereto.
24 In case the person fails to file an answer after
25 receiving notice, his or her license may, in the discretion
26 of OBRE, be suspended, revoked, or placed on probationary
27 status, or OBRE may take whatever disciplinary action deemed
28 proper, including limiting the scope, nature, or extent of
29 the person's practice or the imposition of a fine, without a
30 hearing, if the act or acts charged constitute sufficient
31 grounds for such action under this Act.
32 (e) At the time and place fixed in the notice, the Board
33 shall proceed to hearing of the charges and both the accused
34 person and the complainant shall be accorded ample
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1 opportunity to present in person or by counsel such
2 statements, testimony, evidence and argument as may be
3 pertinent to the charges or to any defense thereto. The
4 Board or its hearing officer may continue a hearing date upon
5 its own motion or upon an accused's motion for one period not
6 to exceed 30 days. The Board or its hearing officer may
7 grant further continuances for periods not to exceed 30 days
8 only upon good cause being shown by the moving party. The
9 non-moving party shall have the opportunity to object to a
10 continuance on the record at a hearing upon the motion to
11 continue. All motions for continuances and any denial or
12 grant thereof shall be in writing. All motions shall be
13 submitted not later than 48 hours before the scheduled
14 hearing unless made upon an emergency basis. In determining
15 whether good cause for a continuance is shown, the Board or
16 its hearing officer shall consider such factors as the volume
17 of cases pending, the nature and complexity of legal issues
18 raised, the diligence of the party making the request, the
19 availability of party's legal representative or witnesses,
20 and the number of previous requests for continuance.
21 (f) Any unlawful act or violation of any of the
22 provisions of this Act upon the part of any licensees
23 employed by a real estate broker or associated by written
24 agreement with the real estate broker, or unlicensed employee
25 of a licensed broker, shall not be cause for the revocation
26 of the license of any such broker, partial or otherwise,
27 unless it appears to the satisfaction of OBRE that the broker
28 had knowledge thereof.
29 (g) OBRE or the Board has power to subpoena any persons
30 or documents for the purpose of investigation or hearing with
31 the same fees and mileage and in the same manner as
32 prescribed by law for judicial procedure in civil cases in
33 courts of this State. The Commissioner, the Director, any
34 member of the Board, a certified court reporter, or a hearing
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1 officer shall each have power to administer oaths to
2 witnesses at any hearing which OBRE is authorized under this
3 Act to conduct.
4 (h) Any circuit court or any judge thereof, upon the
5 application of the accused person, complainant, OBRE, or the
6 Board, may, by order entered, require the attendance of
7 witnesses and the production of relevant books and papers
8 before the Board in any hearing relative to the application
9 for or refusal, recall, suspension, or revocation of a
10 license, and the court or judge may compel obedience to the
11 court's or the judge's order by proceedings for contempt.
12 (i) OBRE, at its expense, shall preserve a record of all
13 proceedings at the formal hearing of any case involving the
14 r