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Public Act 91-0338
HB2632 Enrolled LRB9105080DJcdA
AN ACT concerning subdivided land that is located outside
the State of Illinois and offered for sale to individuals
located in Illinois.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 1. General Provisions
Section 1-1. Short title. This Act may be cited as the
Land Sales Registration Act of 1999.
Section 1-2. Supersedes prior Act. This Act supersedes
the Land Sales Registration Act of 1989.
Section 1-5. Declaration of public policy. The
practice of selling land that is located outside the State of
Illinois and offered for sale to individuals who are located
in the State of Illinois is declared to affect the public
health, safety, and welfare and to be subject to regulation
and control in the public interest. It is further declared
to be a matter of public interest and concern that the
business of selling and conveying parcels of land from real
estate subdivisions located outside the State of Illinois and
the practice of land sales as defined in this Act merit and
receive the confidence of the public, so that only qualified
persons be authorized to practice the sale of foreign land
within the State of Illinois. This Act shall be liberally
construed to best carry out these subjects and purposes.
Section 1-10. Definitions. In this Act, unless the
context otherwise requires:
"Blanket encumbrance" means a trust deed, mortgage,
mechanics lien, or any other lien or financial encumbrance
securing or evidencing money debt and affecting land to be
subdivided or affecting more than one lot or parcel of
subdivided land; or an agreement affecting more than one such
lot or parcel by which the subdivider holds the subdivision
under an option, contract to purchase, or trust agreement.
Taxes and assessments levied by public authority are not an
encumbrance under this Act.
"Commissioner" means the Commissioner of Banks and Real
Estate or a natural person authorized by the Commissioner,
the Office of Banks and Real Estate Act, or this Act to act
in the Commissioner's stead.
"Common promotional plan" means a plan, undertaken by a
single developer or a group of developers acting in concert,
to offer lots for sale or lease. Where land is offered for
sale by a developer or group of developers acting in concert
and the land is contiguous or is known, designated, or
advertised as a common unit or by a common name, the land is
presumed, without regard to the number of lots covered by
each individual offering, to be offered for sale or lease as
part of a common promotional plan.
"Offer" includes every inducement, solicitation, or
attempt to encourage a person to acquire an interest in a
subdivision or subdivided land, if undertaken for gain or
profit.
"Person" means an individual, corporation, government or
governmental subdivision or agency, business trust, estate,
trust, partnership, unincorporated association, 2 or more of
any of the foregoing having a joint or common interest, or
any other legal or commercial entity.
"Sale" includes a sale, lease, assignment, or award by
lottery, or any offer or solicitation of an offer to do any
of the foregoing, concerning a subdivision or any part of a
subdivision, if undertaken for gain or profit.
"Subdivided land" and "subdivision" mean improved or
unimproved lands located outside the State of Illinois,
divided or proposed to be divided into 25 or more lots or
parcels, and also include any land, whether contiguous or
not, if 25 or more lots, parcels, units or interests are
offered as a part of a common promotional plan of advertising
and sale.
Section 1-15. Powers and duties of the Office of Banks
and Real Estate. The Office of Banks and Real Estate shall
exercise the powers and duties established by this Act. The
Commissioner may adopt rules consistent with the provisions
of this Act for its administration and enforcement and may
prescribe forms that shall be issued in connection with this
Act. The Office of Banks and Real Estate shall issue a
certificate of registration to any person who meets the
qualifications set forth in this Act.
Article 5. Registration Requirements
Section 5-5. Registration requirement; exemptions. It
is unlawful for any person to engage in the business of
selling land that is located outside the State of Illinois to
any individual located in Illinois without a certificate of
registration issued by the Office of Banks and Real Estate
pursuant to this Act. Unless the method of sale is adopted
for the purpose of evasion of this Act, the provisions of
this Act do not apply to an offer or disposition of an
interest in land:
(1) by a purchaser of subdivided lands for the
purchaser's own account in a single or isolated
transaction;
(2) if fewer than 25 separate lots, parcels, units
or interests in subdivided lands are offered by a person;
(3) on which there is a commercial or industrial
building, shopping center, house, apartment house,
condominium structure, or town house, or as to which
there is a legal obligation on the part of the seller to
construct such a building within 2 years from the date of
disposition;
(4) that is sold for industrial, commercial, or
institutional purposes;
(5) that consists of cemetery lots or interests;
(6) that consists of a subdivision as to which the
plan of sale is to dispose of it to 10 or fewer persons;
or
(7) in lots or parcels of 20 or more acres,
unconditionally, or of 10 or more acres if there is free
and ready access leading to county-maintained roads.
Section 5-10. Application for registration.
(a) Before subdivided lands are offered for sale, the
subdivider or the subdivider's agent shall file with the
Office of Banks and Real Estate an application on forms
supplied by the Office of Banks and Real Estate. A
registration fee shall accompany the application. The
application shall contain all of the following information:
(1) The name and address of the fee title owner of
the subdivided lands.
(2) The name and address of the subdivider.
(3) The name and address of an agent of the
subdivider in Illinois authorized to accept service of
process on behalf of the subdivider.
(4) The legal description and acreage of the lands,
together with a map showing the layout as recorded or
proposed and the relation of the lands to existing
streets or roads, waterways, schools, churches, shopping
centers, and local bus and rail transportation, with a
statement of distances to each.
(5) A true statement as to title to the subdivided
land, including all financial encumbrances and unpaid
taxes thereon.
(6) If subject property is in a land trust, a true
statement of the names and addresses of all parties with
a beneficial interest in the trust.
(7) A true statement of the terms and conditions by
which it is intended the subdivided land will be sold,
together with copies of any and all forms of contract or
conveyance intended to be used. If a language other than
English was used in advertising the property or during
the sales presentation, translations, in that language,
of the Illinois Public Property Report, any contract or
lien, and any note shall be provided to the purchaser
before the purchaser executes the contract. A receipt
for these translations shall be obtained and a copy of
the receipt shall be kept available in this State and
subject to inspection by the Office of Banks and Real
Estate for 3 years from the date of the receipt.
(8) A true statement of provision for sewage
disposal and public utilities, if any, in the proposed or
existing subdivision, including water, electricity, gas,
and telephone facilities.
(9) A correct reference to applicable zoning
ordinances and regulations.
(10) Certified financial statements of the
subdivider.
(11) A proposed public property report, suitable
for distribution to any proposed purchaser if a
certificate of registration is issued, which shall
contain the following information:
(A) the name and principal address of the
subdivider;
(B) a general description of the subdivided
lands, stating the total number of lots, parcels,
units, or interests in the offering;
(C) the significant terms of any encumbrances,
easements, liens, and restrictions, including zoning
and other regulations affecting the subdivided lands
and each lot or unit, and a statement of all
existing taxes and existing or proposed special
taxes or assessments that affect the subdivided
lands;
(D) a statement of the use for which the
property is offered;
(E) information concerning improvements,
including streets, water supply, levees, drainage
control systems, irrigation systems, sewage disposal
facilities, and customary utilities, and the
estimated costs, date of completion, and
responsibility for construction and maintenance of
existing and proposed improvements that are referred
to in connection with the offering or disposition of
any interest in subdivided lands;
(F) a statement that certified financial
statements are available upon request; and
(G) such additional information consistent
with this Act which may be required by the Office of
Banks and Real Estate to assure full and fair
disclosure to prospective purchasers.
(b) The subdivider shall report all material changes with
respect to subdivided lands registered for sale under this
Act, and the Office of Banks and Real Estate may require that
the public property report be amended to reflect such
material change. In the event the subdivider wishes to
update the public property report, the subdivider may do so
upon proper application to the Office of Banks and Real
Estate.
(c) If the subdivider registers additional subdivided
lands to be offered for sale, the subdivider may consolidate
the subsequent registration with any earlier registration
offering subdivided lands for sale under the same promotional
plan, and the public property report shall be amended to
include the additional subdivided lands so registered.
(d) The Office of Banks and Real Estate shall, at the
time the application is submitted or from time to time
thereafter, require the subdivider to furnish financial
assurances, in the form of a performance bond, a surety bond,
or an irrevocable letter of credit in the amount and subject
to terms and requirements approved by the Office of Banks and
Real Estate, for the purpose of protecting purchasers of lots
in the subdivision to ensure that the improvements will be
constructed and maintained in the manner represented by the
subdivider. The Office of Banks and Real Estate may accept
evidence that such assurances have been furnished to a
foreign state, or a county or municipality within such state,
in fulfillment of this requirement.
Section 5-15. Notice of filing; issuance of certificate;
renewal.
(a) Upon receipt of the application for registration in
proper form, the Office of Banks and Real Estate shall issue
a notice of filing to the applicant. Within 60 days from the
date of the notice of filing, the Office of Banks and Real
Estate shall enter an order registering the subdivided lands
or rejecting the registration. If no order of rejection is
entered within 60 days from the date of notice of filing, the
land shall be deemed registered unless the applicant has
consented in writing to a delay.
(b) If the Office of Banks and Real Estate affirmatively
determines, upon inquiry and examination, that the
requirements of this Act have been met, it shall issue a
certificate of registration registering the subdivided lands
and shall approve the form of the public property report.
(c) If the Office of Banks and Real Estate determines,
upon inquiry and examination, that any of the requirements of
this Act have not been met, it shall notify the applicant
that the application for registration must be corrected in
the particulars specified within 15 days. If the
requirements are not met within the time allowed, the Office
of Banks and Real Estate shall enter an order rejecting the
registration, which shall include the findings of fact upon
which the order is based. The order rejecting the
registration shall not become effective for 20 days, during
which time the applicant may petition for reconsideration and
shall be entitled to a hearing.
(d) The Office of Banks and Real Estate may adopt rules
authorizing the subdivider or the subdivider's agent to file,
as the subdivider's application for a certificate of
registration in lieu of some or all of the requirements of
Section 5-10, (i) a copy of the statement of record filed
with respect to the subdivision pursuant to the Federal
Interstate Land Sales Full Disclosure Act if the statement
complies with the requirements of that Act and the
regulations pertinent to that Act or (ii) an acceptable
certificate of registration from another jurisdiction in
which the requirements for registration are substantially the
same or exceed those provided in this Act. Notwithstanding
the requirements of Section 5-10, the Office of Banks and
Real Estate may suspend or revoke any registration under this
Section that includes any registration, property report, or
similar disclosure documents accepted under this subsection
if the registration, property report, or similar disclosure
is suspended or revoked by the registering state or by the
federal government.
(e) A certificate of registration issued under this
Section shall expire on June 30 following the date of
issuance. In the absence of any reason or condition under
Section 10-35 that might warrant the suspension or revocation
of a registration, a certificate shall be renewed upon
payment of the required fee and documentation as provided by
rule.
Section 5-20. Fees.
(a) The Office of Banks and Real Estate shall provide, by
rule, for fees to be paid by applicants and registrants to
cover the reasonable costs of the Office of Banks and Real
Estate in administering and enforcing the provisions of this
Act. The Office of Banks and Real Estate may also provide, by
rule, for general fees to cover the reasonable expenses of
carrying out other functions and responsibilities under this
Act.
(b) All fees collected under this Act shall be paid into
the Real Estate License Administration Fund in the State
treasury and appropriated to the Office of Banks and Real
Estate for administration of this Act or any other Act
administered by the Office of Banks and Real Estate and
providing revenue to this fund.
(c) Any person who delivers a check or other payment to
the Office of Banks and Real Estate that is returned to the
Office of Banks and Real Estate unpaid by the financial
institution upon which it is drawn shall pay to the Office of
Banks and Real Estate, in addition to the amount already owed
to the Office of Banks and Real Estate, a fee of $50.
(d) The fees imposed by this Section are in addition to
any other disciplinary action provided under this Act for
unlicensed practice or practice on a non-renewed license.
(e) The Office of Banks and Real Estate shall notify the
person that payment of fees and fines shall be paid to the
Office of Banks and Real Estate by certified check or money
order within 30 calendar days of the notification. If, after
the expiration of 30 days from the date of the notification,
the person has failed to submit the necessary remittance, the
Office of Banks and Real Estate shall automatically terminate
the certificate of registration or deny the application,
without hearing. If, after termination or denial, the person
seeks a certificate of registration, he or she shall apply to
the Office of Banks and Real Estate for restoration or
issuance of the certificate of registration and pay all fees
due the Office of Banks and Real Estate. The Commissioner
may waive the fees due under this Section in individual cases
where the Commissioner finds that the fees would be
unreasonable or unnecessarily burdensome.
Section 5-25. Public property report. When a certificate
of registration is granted by the Office of Banks and Real
Estate, a copy of the public property report shall be given
by the owner, subdivider, or agent to each prospective
purchaser prior to the execution of any binding contract or
agreement for the sale of any lot or parcel in a subdivision.
A receipt, in duplicate, shall be taken from each purchaser
to evidence compliance with this Section. Receipts taken for
any published report shall be kept on file in possession of
the owner, subdivider, or agent, subject to inspection by the
Office of Banks and Real Estate for 3 years from the date the
receipt is taken. The report shall not be used for
advertising purposes unless the report is used in its
entirety. No portion of the report shall be underscored,
italicized, or printed in larger or heavier type than any
other portion of the report, unless required by this Act.
The report shall contain the following statement:
If you received this report prior to signing a
contract or agreement, you may cancel your contract or
agreement by giving notice to the seller any time before
midnight of the seventh day following the signing of the
contract or agreement.
If you did not receive this report before you signed
a contract or agreement, you may cancel the contract or
agreement any time within 2 years from the date of
signing.
Article 10. Business Practices
Section 10-5. Sales contracts. Every sales contract
relating to the purchase of real property in a subdivision
shall clearly state:
(1) the legal description of the parcel being sold;
(2) the principal balance of the purchase price
outstanding at the date of the sale contract, after full
credit is given for down payment;
(3) that the purchaser has the unconditional option
to rescind a contract until midnight of the seventh day
following the signing of the contract if the purchaser
received a copy of the property report as required in
Section 5-10, and 2 years to rescind the contract if the
property report was not received;
(4) which party is obligated to pay the costs of
issuance of the required title policy and recording of
all documents;
(5) the latest date by which any promised services
or amenities, which shall include but not be limited to
all those identified in the public property report or any
form of advertising, will be provided or completed; and
(6) that any deed, contract for deed, or
installment contract shall be recorded within 180 days
after the date of acceptance.
Section 10-10. Title insurance. The subdivider shall
arrange for the issuance of an owners title insurance policy
following recording, subject only to the conditions contained
in the contract and the standard exceptions contained in the
title policy. If there are defects in the title rendering it
uninsurable, the purchaser has the option of reconveying or
releasing the lot and receiving a refund of all moneys paid
under the contract, and the purchaser shall be released from
any and all obligations under the contract.
Section 10-15. Copies of instruments. A copy of the
instruments executed in connection with the sale of parcels
within a subdivision shall be kept available in this State
and subject to inspection by the Office of Banks and Real
Estate. The Office of Banks and Real Estate shall be
notified of any change of address affecting the location of
the owner's, subdivider's, or agent's records, or of any
change in the depository for purchasers' payments under this
Act.
Section 10-20. Sale of encumbered lots prohibited;
exceptions. It is unlawful for the owner or subdivider to
sell lots or parcels within a subdivision subject to a
blanket encumbrance unless one of the following conditions is
met:
(1) All sums paid or advanced by a purchaser are
placed in an escrow or other depository account
acceptable to the Office of Banks and Real Estate until
(i) the fee title contracted for is delivered to the
purchaser by deed together with complete release from all
financial encumbrances; (ii) the owner, subdivider, or
purchaser defaults and fails to perform under the
contract of sale and there is final determination as to
the disposition of such moneys; or (iii) the funds in the
escrow or other account are voluntarily returned to the
contract purchaser.
(2) The fee title to the subdivision is placed in
trust under an agreement or trust acceptable to the
Office of Banks and Real Estate until a proper release
from each blanket encumbrance, including all taxes, is
obtained and title is delivered to the purchaser.
(3) A bond to the State of Illinois is furnished to
the Office of Banks and Real Estate for the benefit and
protection of purchasers of such lots or parcels, in the
amount and subject to terms approved by the Office of
Banks and Real Estate. The bond shall be executed by a
surety company that is authorized to do business in the
State of Illinois and has given consent to be sued in
this State. The bond shall provide for the return of
moneys paid or advanced by a purchaser if (i) the title
contracted for is not delivered and (ii) a full release
from each blanket encumbrance is not obtained. If it is
determined that the purchaser, by reason of default or
otherwise, is not entitled to the return of those moneys,
or any portion of those moneys, then the bond is released
by the amount of moneys to which the purchaser of parcel
is not entitled.
(4) The blanket encumbrance contains provisions
evidencing the subordination of the lien of the holder of
the blanket encumbrance to the rights of those persons
purchasing from the subdivider, and further evidencing
that the subdivider is able to secure releases from such
blanket encumbrances with respect to the property.
Section 10-25. False statement or misrepresentation;
penalty. Every officer, agent, or employee of any owner or
subdivider of land, and every other person, who knowingly
authorizes, directs, or aids in the publication,
advertisement, distribution, or circularization or any false
statement or misrepresentation concerning any such land or
subdivision offered for sale commits a Class 4 felony.
Every person, with knowledge that any advertisement,
pamphlet, prospectus, or letter concerning any such land or
subdivision contains any written statement that is false or
fraudulent, who issues, circulates, publishes, or distributes
the advertisement, pamphlet, prospectus, or letter, or causes
the advertisement, pamphlet, prospectus, or letter to be
issued, circulated, published, or distributed, commits a
Class 4 felony.
Section 10-30. Failure to pay registration and
inspection fees; civil penalty. Any owner, subdivider, or
agent who fails to pay the registration, inspection, or
renewal fees when due shall be assessed a civil penalty of
$100 per day for each day past the due date that the fee is
not paid. Practice by a registrant while in a non-renewed
status constitutes unregistered practice. Any penalties
collected under this Act shall be deposited into the Real
Estate License Administration Fund.
Article 15. Disciplinary Provisions
Section 15-5. Disciplinary action; civil penalty.
(a) The Office of Banks and Real Estate may refuse to
issue or renew any certificate of registration, or revoke or
suspend any certificate of registration, or place on
probation or administrative supervision or reprimand a
registrant registered under this Act, or impose a civil
penalty not to exceed $25,000, for any one or any combination
of the following causes:
(1) A registrant's disregard or violation of any
provision of this Act or of the rules adopted by the
Office of Banks and Real Estate to enforce this Act.
(2) A conviction of the registrant or any principal
of the registrant of (i) a felony under the laws of any
U.S. jurisdiction, (ii) a misdemeanor under the laws of
any U.S. jurisdiction if an essential element of the
offense is dishonesty, or (iii) a crime under the laws of
any U.S. jurisdiction if the crime relates directly to
the practice of the profession regulated by this Act.
(3) A registrant's making any misrepresentation for
the purpose of obtaining a registration or certificate.
(4) Disciplinary action against a registrant by
another U.S. jurisdiction, state agency, or foreign
nation regarding the making of land sales regulated by
this Act, if at least one of the grounds for the
discipline is the same as or substantially equivalent to
one of those set forth in this Act.
(5) A finding by the Office of Banks and Real
Estate that the registrant, after having his or her
registration placed on probationary status, has violated
the terms of probation.
(6) A registrant's practicing or attempting to
practice under a name other than the name as shown on his
or her registration or any other legally authorized name.
(7) A registrant's failure to file a return, or to
pay the tax, penalty, or interest shown in a filed
return, or to pay any final assessment of tax, penalty,
or interest, as required by any tax Act administered by
the Illinois Department of Revenue, until the
requirements of any such tax Act are satisfied.
(8) A registrant's engaging in dishonorable,
unethical, or unprofessional conduct of a character
likely to deceive, defraud, or harm the public.
(9) A registrant's aiding or abetting another person
or persons in disregarding or violating any provision of
this Act or of the rules adopted by the Office of Banks
and Real Estate to enforce this Act.
(10) Any representation in any document or
information filed with the Office of Banks and Real
Estate which is false or misleading.
(11) A registrant's disseminating or causing to be
disseminated any false or misleading promotional
materials or advertisements in connection with a
registered subdivision.
(12) A registrant's concealing, diverting, or
disposing of any funds or assets of any person in a
manner that impairs the rights of purchasers of lots
within a registered subdivision.
(13) A registrant's failure to perform any
stipulation or agreement made to induce the Office of
Banks and Real Estate to issue an order relating to the
registered subdivision.
(14) A registrant's engaging in any act that
constitutes a violation of Section 3-102, 3-103, 3-104,
or 3-105 of the Illinois Human Rights Act.
(15) A registrant's failure to provide information
requested in writing by the Office of Banks and Real
Estate, within 30 days of the request, either as the
result of a formal or informal complaint to the Office of
Banks and Real Estate or as a result of a random audit
conducted by the Office of Banks and Real Estate, which
would indicate a violation of this Act.
(16) A registrant's failure to account for or remit
any escrow funds coming into his or her possession which
belonged to others.
(17) A registrant's failure to make available to
Office of Banks and Real Estate personnel during normal
business hours all escrow records and related documents
maintained in connection therewith, within 24 hours of a
request from Office of Banks and Real Estate personnel.
(18) A registrant's failure to comply with any
provision of this Act or the rules implementing this Act,
or any order made by the Office of Banks and Real Estate.
(19) A person's offering for sale, as an agent,
salesman, or broker for a subdivider, developer, or
owner, subdivided lands or a subdivision, wherever
situated, without first complying with this Act.
(20) A registrant's failure to provide to the
purchaser a translation of the Illinois Public Property
Report or any contract, lien, or note as required by this
Act.
(21) A registrant's advertising for sale in this
State any parcel in a subdivision, or in any other manner
assisting an owner, subdivider, or developer of a
subdivision who has not complied with this Act to offer
subdivided land within this State.
(22) A registrant's making any material change in
the plan of disposition and development of the
subdivision or subdivided lands subsequent to receiving a
certificate of registration, without obtaining written
approval of an amendment to the registration.
(23) A registrant's encumbering a lot or parcel, or
allowing a lot or parcel to be encumbered, after a
contract for its sale has been signed by the parties to
the contract.
(b) A civil penalty imposed under subsection (a) shall
be paid within 60 days after the effective date of the order
imposing the civil penalty. The order shall constitute a
judgment and may be filed and execution had thereon in the
same manner as any judgment from any court of record.
Section 15-10. Investigation. The Office of Banks and
Real Estate may investigate the actions or qualifications of
any person or persons holding or claiming to hold a
certificate of registration under this Act. Such a person
is referred to as "the respondent" in this Article.
Section 15-15. Disciplinary hearings; record;
appointment of administrative law judge.
(a) The Office of Banks and Real Estate has the authority
to conduct hearings before an administrative law judge on
proceedings to revoke, suspend, or refuse to issue or renew a
certificate of registration issued under this Act, or to
place on probation or administrative supervision or reprimand
a registrant registered under this Act, or to impose a civil
penalty not to exceed $25,000 upon any registrant registered
under this Act.
(b) The Office of Banks and Real Estate, at its expense,
shall preserve a record of all proceedings at the formal
hearing of any case involving the refusal to issue or the
revocation or suspension of a certificate of registration
issued under this Act or involving other discipline of a
registrant registered under this Act. The notice of hearing,
complaint, and all other documents in the nature of pleadings
and written motions filed in the proceedings, the transcript
of testimony, the report of the administrative law judge, and
the orders of the Office of Banks and Real Estate shall be
the record of proceeding. At all hearings or prehearing
conferences, the Office of Banks and Real Estate and the
respondent shall be entitled to have a court reporter in
attendance for purposes of transcribing the proceeding or
prehearing conference.
(c) The Commissioner has the authority to appoint any
attorney duly licensed to practice law in the State of
Illinois to serve as an administrative law judge in any
action for refusal to issue or renew a certificate of
registration or to discipline a registrant or person holding
a certificate of registration. The administrative law judge
has full authority to conduct the hearing. The
administrative law judge shall report his or her findings and
recommendations to the Commissioner. If the Commissioner
disagrees with the recommendation of the administrative law
judge, the Commissioner may issue an order in contravention
of the recommendation.
Section 15-20. Notice of proposed disciplinary action;
hearing.
(a) Before taking any disciplinary action with regard to
any registrant, the Office of Banks and Real Estate shall:
(1) notify the respondent in writing, at least 30
calendar days prior to the date set for the hearing, of
any charges made, the time and place for the hearing of
the charges, and that testimony at the hearing will be
heard under oath; and
(2) inform the respondent that upon failure to file
an answer and request a hearing before the date
originally set for the hearing, default will be taken
against the respondent and the respondent's certificate
of registration may be suspended or revoked, or other
disciplinary action may be taken against the respondent,
as the Office of Banks and Real Estate may deem proper.
(b) If the respondent fails to file an answer after
receiving notice, the respondent's certificate of
registration may, in the discretion of the Office of Banks
and Real Estate, be revoked or suspended, or other
disciplinary action may be taken against the respondent, as
deemed proper, without a hearing, if the act or acts charged
constitute sufficient grounds for that action under this Act.
(c) At the time and place fixed in the notice, the Office
of Banks and Real Estate shall proceed to hearing of the
charges. Both the respondent and the complainant shall be
accorded ample opportunity to present in person, or by
counsel, statements, testimony, evidence, and argument that
may be pertinent to the charges or any defense to the
charges.
Section 15-25. Subpoenas; attendance of witnesses;
oaths.
(a) The Office of Banks and Real Estate has the power to
issue subpoenas ad testificandum and to bring before it any
persons, and to take testimony either orally or by
deposition, or both, with the same fees and mileage and in
the same manner as prescribed in civil cases in the courts of
this State. The Office of Banks and Real Estate has the
power to issue subpoenas duces tecum and to bring before it
any documents, papers, files, books, and records, with the
same costs and in the same manner as prescribed in civil
cases in the courts of this State.
(b) Upon application of the Office of Banks and Real
Estate or its designee or of the applicant, registrant, or
person holding a certificate of registration against whom
proceedings under this Act are pending, any circuit court may
enter an order compelling the enforcement of any subpoena
issued by the Office of Banks and Real Estate in connection
with any hearing or investigation.
(c) The Commissioner and the designated administrative
law judge have power to administer oaths to witnesses at any
hearing that the Office of Banks and Real Estate is
authorized to conduct under this Act.
Section 15-30. Administrative law judge's findings of
fact, conclusions of law, and recommendations. At the
conclusion of the hearing, the administrative law judge shall
present to the Commissioner a written report of the
administrative law judge's findings of fact, conclusions of
law, and recommendations regarding discipline or a civil
penalty. The report shall contain a finding of whether or
not the respondent violated this Act or failed to comply with
the conditions required in this Act. The administrative law
judge shall specify the nature of the violation or failure to
comply. If the Commissioner disagrees in any regard with the
report of the administrative law judge, the Commissioner may
issue an order in contravention of the report. The
Commissioner shall provide a written report to the
administrative law judge on any deviation and shall specify
with particularity the reasons for that action in the final
order.
Section 15-35. Rehearing. After any hearing involving
disciplinary action against a registrant, a copy of the
administrative law judge's report shall be served on the
respondent by the Office of Banks and Real Estate, either
personally or as provided in this Act for the service of the
notice of hearing. Within 20 calendar days after the
service, the respondent may present to the Office of Banks
and Real Estate a motion in writing for a rehearing. The
motion shall specify the particular grounds for rehearing. If
the respondent orders a transcript of the record from the
reporting service and pays for it within the time for filing
a motion for rehearing, the 20 calendar day period within
which a motion for rehearing may be filed shall commence upon
the delivery of the transcript to the respondent.
If no motion for rehearing is filed, then upon the
expiration of the time specified for filing a motion, or if a
motion for rehearing is denied, then upon denial, the
Commissioner may enter an order in accordance with the
recommendations of the administrative law judge, except as
otherwise provided in this Article. Whenever the
Commissioner is not satisfied that substantial justice has
been done in the hearing or in the administrative law judge's
report, the Commissioner may order a rehearing by the same or
some other duly qualified administrative law judge.
Section 15-40. Disciplinary consent orders.
Notwithstanding any other provisions of this Act concerning
the conduct of hearings and recommendations for disciplinary
actions, the Office of Banks and Real Estate has the
authority to negotiate agreements with registrants and
applicants resulting in disciplinary consent orders. Any
such consent order may provide for any form of discipline
provided for in the Act. Any such consent order shall provide
that it is not entered into as a result of any coercion by
the Office of Banks and Real Estate. Any such consent order
shall be accepted by signature or rejected by the
Commissioner in a timely manner.
Section 15-45. Order or certified copy. An order or a
certified copy of an order, over the seal of the Office of
Banks and Real Estate and purporting to be signed by the
Commissioner, shall be prima facie proof of the following:
(1) That the signature is the genuine signature of
the Commissioner.
(2) That the Commissioner is duly appointed and
qualified.
(3) That the administrative law judge is duly
appointed and qualified.
Section 15-50. Restoration of certificate of
registration. At any time after the suspension or revocation
of any certificate of registration, the Office of Banks and
Real Estate may restore the certificate of registration to
the respondent upon the written recommendation of the
administrative law judge, unless after an investigation and a
hearing the administrative law judge determines that
restoration is not in the public interest.
Section 15-55. Surrender of certificate of registration.
Upon the revocation or suspension of a certificate of
registration, the registrant shall immediately surrender the
certificate of registration to the Office of Banks and Real
Estate. If the registrant fails to do so, the Office of
Banks and Real Estate has the right to seize the certificate
of registration.
Section 15-60. Administrative Review Law. All final
administrative decisions of the Office of Banks and Real
Estate under this Act are subject to judicial review under
the Administrative Review Law and the rules implementing
that Law. The term "administrative decision" is defined as
in Section 3-101 of the Code of Civil Procedure. Proceedings
for judicial review shall be commenced in the circuit court
of the county in which the party applying for review resides,
but if the party is not a resident of this State, the venue
shall be in Cook or Sangamon County.
Pending the court's final decision on administrative
review, the acts, orders, sanctions, and rulings of the
Office of Banks and Real Estate regarding any registration
shall remain in full force and effect unless modified or
suspended by court order pending a final judicial decision.
The Office of Banks and Real Estate shall not be required
to certify any record to the court or file any answer in
court or otherwise appear in any court in a judicial review
proceeding unless there is filed in the court, with the
complaint, a receipt from the Office of Banks and Real Estate
acknowledging payment of the costs of furnishing and
certifying the record. Failure on the part of the plaintiff
to file a receipt in the court is grounds for dismissal of
the action.
Section 15-65. Public interest, safety, or welfare;
summary suspension. The Commissioner may temporarily suspend
any registration pursuant to this Act, without hearing,
simultaneously with the institution of proceedings for a
hearing provided for in this Section, if the Commissioner
finds that the evidence indicates that the public interest,
safety, or welfare imperatively requires emergency action.
If the Commissioner temporarily suspends any registration
without a hearing, a hearing must be held within 30 calendar
days after the suspension. The person whose registration is
suspended may seek a continuance of the hearing, during which
the suspension shall remain in effect. The proceeding shall
be concluded without appreciable delay.
Section 15-70. Non-registered practice; civil penalty;
injunction.
(a) Any person who practices, offers to practice,
attempts to practice, or holds himself or herself out to
practice as a registrant under this Act without being
registered under this Act shall, in addition to any other
penalty provided by law, pay a civil penalty to the Office of
Banks and Real Estate in an amount not to exceed $25,000 for
each offense as determined by the Office of Banks and Real
Estate. The civil penalty shall be assessed by the Office of
Banks and Real estate after a hearing is held in accordance
with the provisions set forth in this Act regarding the
provision of a hearing for the discipline of a registration.
(b) The Office of Banks and Real Estate has the
authority and power to investigate any and all activity
subject to registration under this Act.
(c) A civil penalty imposed under subsection (a) shall
be paid within 60 days after the effective date of the order
imposing the civil penalty. The order shall constitute a
judgment and may be filed and execution had thereon in the
same manner as any judgment from any court of record.
(d) Engaging in the sale of land located outside the
State of Illinois but offered for sale in Illinois by any
entity not holding a valid and current registration under
this Act is declared to be inimical to the public welfare, to
constitute a public nuisance, and to cause irreparable harm
to the public welfare. The Commissioner, the Attorney
General, the State's Attorney of any county in the State, or
any person may maintain an action in the name of the People
of the State of Illinois, and may apply for injunctive relief
in any circuit court to enjoin the entity from engaging in
the conduct prohibited under this subsection. Upon the
filing of a verified petition in the court, the court, if
satisfied by affidavit or otherwise that the entity has been
engaged in that conduct without a valid and current
registration, may enter a temporary restraining order without
notice or bond, enjoining the defendant from such further
conduct. Only the showing of nonregistration, by affidavit
or otherwise, is necessary in order for a temporary
injunction to issue. A copy of the verified complaint shall
be served upon the defendant and the proceedings shall
thereafter be conducted as in other civil cases except as
modified by this Section. If it is established that the
defendant has been or is engaged in such unlawful conduct,
the court may enter an order or judgment perpetually
enjoining the defendant from further unlawful conduct. In
all proceedings hereunder, the court, in its discretion, may
apportion the costs among the parties interested in the
action, including cost of filing the complaint, service of
process, witness fees and expenses, court reporter charges
and reasonable attorneys' fees. In the case of a violation
of any injunctive order entered under the provisions of this
Section, the court may summarily try and punish the offender
for contempt of court. Proceedings for an injunction under
this Section shall be in addition to, and not in lieu of, all
penalties and other remedies provided in this Act.
Section 15-75. Cease and desist orders. The Office of
Banks and Real Estate may issue a cease and desist order to
any person who engages in any activity prohibited by this
Act. Any person in violation of a cease and desist order
entered by the Office of Banks and Real Estate is subject to
all of the remedies provided by law.
Section 15-80. Statute of limitations. Any action or
proceeding to enforce any provision of this Act must be
commenced within 3 years following the date on which the
claim upon which the action or proceeding is based accrues.
Article 20. Administration
Section 20-5. Administration of Act. The Office of
Banks and Real Estate shall exercise the powers and duties
prescribed by the Civil Administrative Code of Illinois and
shall exercise other powers and duties necessary for
effectuating the purposes of this Act. The Office of Banks
and Real Estate may contract with third parties for services
necessary for the proper administration of this Act. The
Office of Banks and Real Estate has the authority to
establish public policies and procedures necessary for the
administration of this Act.
Section 20-10. Administrative rules. The Office of
Banks and Real Estate shall adopt rules for the
implementation and enforcement of this Act.
Section 20-15. Investigation of subdivisions. The
Office of Banks and Real Estate shall investigate every
subdivision offered for sale in this State and may:
(1) Require the applicant to submit reports
prepared by competent engineers concerning any hazard to
which any subdivision offered for sale is subject in the
opinion of the Office of Banks and Real Estate, or any
factor that affects the utility of lots or parcels within
the subdivision, and require evidence of compliance.
(2) Make an on-site inspection of each subdivision.
In connection with any on-site inspection, the owner,
subdivider, or agent shall defray all expenses incurred
by the inspector in the course of the inspection.
(3) Make additional on-site inspections of each
subdivision for which the owner, subdivider, or agent
shall defray all expenses incurred by the inspector in
the course of the inspection.
(4) Require the owner, subdivider, or agent to
deposit the expenses to be incurred in any inspection, in
advance, based upon an estimate by the Office of Banks
and Real Estate of the expenses likely to be incurred.
(5) In those cases where an on-site inspection of
any subdivision has been made under the provisions of
this Act, waive an inspection of a subsequent
registration submitted as an amendment to the
registration covering subdivided land to be sold under
the same common promotional plan. An inspection of the
subsequent registration may be made in connection with
the next succeeding on-site inspection.
Section 20-20. Forms. The Office of Banks and Real
Estate may prescribe forms and procedures for submitting to
the Office of Banks and Real Estate.
Section 20-25. Real Estate License Administration Fund.
All fees collected for registration and for civil penalties
pursuant to this Act and administrative rules adopted under
this Act shall be deposited into the Real Estate
Administration Fund. The moneys deposited in the Real Estate
Administration License Fund shall be appropriated to the
Office of Banks and Real Estate for expenses for the
administration and enforcement of this Act.
Section 20-30. Registrations under preceding Act. All
registrations of subdivisions under the Land Sales
Registration Act of 1989 in effect on the effective date of
this Act shall remain in full force and effect after the
effective date of this Act and be considered registered under
this Act. The provisions of this Act, insofar as they are the
same or substantially the same as those of any prior law,
shall be construed as a continuation of such prior law and
not as a new enactment. Any existing injunction or temporary
restraining order validly obtained under the Land Sales
Registration Act of 1989 which prohibits unregistered
practice of land sales is not invalidated by the enactment of
this Act and shall continue to have full force and effect on
and after the effective date of this Act. Any existing
discipline or investigation pursuant to a violation under the
Land Sales Registration Act of 1989 is not invalidated by the
enactment of this Act and shall continue to have full force
and effect on and after the effective date of this Act.
Section 20-35. Action for compensation; proof of
registration. No action or counterclaim may be maintained by
any person in any court in this State with respect to any
agreement, contract, or services for which registration is
required by this Act, or to recover the agreed price or any
compensation under any such agreement, or to recover for
services for which a registration is required by this Act,
without alleging and proving that the person had a valid
registration at the time of making the agreement or doing the
work.
Article 90. Amendatory Provisions
Section 90-5. The Regulatory Sunset Act is amended by
adding Section 4.20 as follows:
(5 ILCS 80/4.20 new)
Sec. 4.20. Act repealed on December 31, 2009. The
following Act is repealed on December 31, 2009:
The Land Sales Registration Act of 1999.
(765 ILCS 85/Act rep.)
Section 90-10. The Land Sales Registration Act of 1989
is repealed.
Article 99. Effective Date
Section 99-5. Effective date. This Act takes effect
December 30, 1999.
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