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Public Act 91-0702
SB239 Enrolled LRB9102225ACtm
AN ACT to amend the Real Estate License Act of 2000 by
changing Sections 1-10 and 5-60.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Real Estate License Act of 2000 is
amended by changing Sections 1-10 and 5-60 as follows:
(225 ILCS 454/1-10)
Sec. 1-10. Definitions. In this Act, unless the context
otherwise requires:
"Act" means the Real Estate License Act of 2000 1999.
"Advisory Council" means the Real Estate Education
Advisory Council created under Section 30-10 of this Act.
"Agency" means a relationship in which a real estate
broker or licensee, whether directly or through an affiliated
licensee, represents a consumer by the consumer's consent,
whether express or implied, in a real property transaction.
"Applicant" means any person, as defined in this Section,
who applies to OBRE for a valid license as a real estate
broker, real estate salesperson, or leasing agent.
"Blind advertisement" means any real estate advertisement
that does not include the sponsoring broker's business name
and that is used by any licensee regarding the sale or lease
of real estate, including his or her own, licensed
activities, or the hiring of any licensee under this Act.
The broker's business name in the case of a franchise shall
include the franchise affiliation as well as the name of the
individual firm.
"Board" means the Real Estate Administration and
Disciplinary Board of OBRE.
"Branch office" means a sponsoring broker's office other
than the sponsoring broker's principal office.
"Broker" means an individual, partnership, limited
liability company, corporation, or registered limited
liability partnership other than a real estate salesperson or
leasing agent who for another and for compensation either
directly or indirectly:
(1) Sells, exchanges, purchases, rents, or leases
real estate.
(2) Offers to sell, exchange, purchase, rent, or
lease real estate.
(3) Negotiates, offers, attempts, or agrees to
negotiate the sale, exchange, purchase, rental, or
leasing of real estate.
(4) Lists, offers, attempts, or agrees to list real
estate for sale, lease, or exchange.
(5) Buys, sells, offers to buy or sell, or
otherwise deals in options on real estate or improvements
thereon.
(6) Supervises the collection, offer, attempt, or
agreement to collect rent for the use of real estate.
(7) Advertises or represents himself or herself as
being engaged in the business of buying, selling,
exchanging, renting, or leasing real estate.
(8) Assists or directs in procuring or referring of
prospects, intended to result in the sale, exchange,
lease, or rental of real estate.
(9) Assists or directs in the negotiation of any
transaction intended to result in the sale, exchange,
lease, or rental of real estate.
(10) Opens real estate to the public for marketing
purposes.
(11) Sells, leases, or offers for sale or lease
real estate at auction.
"Brokerage agreement" means a written or oral agreement
between a sponsoring broker and a consumer for licensed
activities to be provided to a consumer in return for
compensation or the right to receive compensation from
another. Brokerage agreements may constitute either a
bilateral or a unilateral agreement between the broker and
the broker's client depending upon the content of the
brokerage agreement. All exclusive brokerage agreements
shall be in writing.
"Client" means a person who is being represented by a
licensee.
"Commissioner" means the Commissioner of Banks and Real
Estate or a person authorized by the Commissioner, the Office
of Banks and Real Estate Act, or this Act to act in the
Commissioner's stead.
"Compensation" means the valuable consideration given by
one person or entity to another person or entity in exchange
for the performance of some activity or service.
Compensation shall include the transfer of valuable
consideration, including without limitation the following:
(1) commissions;
(2) referral fees;
(3) bonuses;
(4) prizes;
(5) merchandise;
(6) finder fees;
(7) performance of services;
(8) coupons or gift certificates;
(9) discounts;
(10) rebates;
(11) a chance to win a raffle, drawing, lottery, or
similar game of chance not prohibited by any other law or
statute;
(12) retainer fee; or
(13) salary.
"Confidential information" means information obtained by
a licensee from a client during the term of a brokerage
agreement that (i) was made confidential by the written
request or written instruction of the client, (ii) deals with
the negotiating position of the client, or (iii) is
information the disclosure of which could materially harm the
negotiating position of the client, unless at any time:
(1) the client permits the disclosure of
information given by that client by word or conduct;
(2) the disclosure is required by law; or
(3) the information becomes public from a source
other than the licensee.
"Confidential information" shall not be considered to
include material information about the physical condition of
the property.
"Consumer" means a person or entity seeking or receiving
licensed activities.
"Continuing education school" means any person licensed
by OBRE as a school for continuing education in accordance
with Section 30-15 of this Act.
"Credit hour" means 50 minutes of classroom instruction
in course work that meets the requirements set forth in rules
adopted by OBRE.
"Customer" means a consumer who is not being represented
by the licensee but for whom the licensee is performing
ministerial acts.
"Designated agency" means a contractual relationship
between a sponsoring broker and a client under Section 15-50
of this Act in which one or more licensees associated with or
employed by the broker are designated as agent of the client.
"Designated agent" means a sponsored licensee named by a
sponsoring broker as the legal agent of a client, as provided
for in Section 15-50 of this Act.
"Director" means the Director of the Real Estate
Division, OBRE.
"Dual agency" means an agency relationship in which a
licensee is representing both buyer and seller or both
landlord and tenant in the same transaction. When the agency
relationship is a designated agency, the question of whether
there is a dual agency shall be determined by the agency
relationships of the designated agent of the parties and not
of the sponsoring broker.
"Employee" or other derivative of the word "employee",
when used to refer to, describe, or delineate the
relationship between a real estate broker and a real estate
salesperson, another real estate broker, or a leasing agent,
shall be construed to include an independent contractor
relationship, provided that a written agreement exists that
clearly establishes and states the relationship. All
responsibilities of a broker shall remain.
"Escrow moneys" means all moneys, promissory notes or any
other type or manner of legal tender or financial
consideration deposited with any person for the benefit of
the parties to the transaction. A transaction exists once an
agreement has been reached and an accepted real estate
contract signed or lease agreed to by the parties. Escrow
moneys includes without limitation earnest moneys and
security deposits, except those security deposits in which
the person holding the security deposit is also the sole
owner of the property being leased and for which the security
deposit is being held.
"Inoperative" means a status of licensure where the
licensee holds a current license under this Act, but the
licensee is prohibited from engaging in licensed activities
because the licensee is unsponsored or the license of the
sponsoring broker with whom the licensee is associated or by
whom he or she is employed is currently expired, revoked,
suspended, or otherwise rendered invalid under this Act.
"Leasing Agent" means a person who is employed by a real
estate broker to engage in licensed activities limited to
leasing residential real estate who has obtained a license as
provided for in Section 5-5 of this Act.
"License" means the document issued by OBRE certifying
that the person named thereon has fulfilled all requirements
prerequisite to licensure under this Act.
"Licensed activities" means those activities listed in
the definition of "broker" under this Section.
"Licensee" means any person, as defined in this Section,
who holds a valid unexpired license as a real estate broker,
real estate salesperson, or leasing agent.
"Listing presentation" means a communication between a
real estate broker or salesperson and a consumer in which the
licensee is attempting to secure a brokerage agreement with
the consumer to market the consumer's real estate for sale or
lease.
"Managing broker" means a broker who has supervisory
responsibilities for licensees in one or, in the case of a
multi-office company, more than one office and who has been
appointed as such by the sponsoring broker of the real estate
firm.
"Medium of advertising" means any method of communication
intended to influence the general public to use or purchase a
particular good or service or real estate.
"Ministerial acts" means those acts that a licensee may
perform for a consumer that are informative or clerical in
nature and do not rise to the level of active representation
on behalf of a consumer. Examples of these acts include
without limitation (i) responding to phone inquiries by
consumers as to the availability and pricing of brokerage
services, (ii) responding to phone inquiries from a consumer
concerning the price or location of property, (iii) attending
an open house and responding to questions about the property
from a consumer, (iv) setting an appointment to view
property, (v) responding to questions of consumers walking
into a licensee's office concerning brokerage services
offered or particular properties, (vi) accompanying an
appraiser, inspector, contractor, or similar third party on a
visit to a property, (vii) describing a property or the
property's condition in response to a consumer's inquiry,
(viii) completing business or factual information for a
consumer on an offer or contract to purchase on behalf of a
client, (ix) showing a client through a property being sold
by an owner on his or her own behalf, or (x) referral to
another broker or service provider.
"OBRE" means the Office of Banks and Real Estate.
"Office" means a real estate broker's place of business
where the general public is invited to transact business and
where records may be maintained and licenses displayed,
whether or not it is the broker's principal place of
business.
"Person" means and includes individuals, entities,
corporations, limited liability companies, registered limited
liability partnerships, and partnerships, foreign or
domestic, except that when the context otherwise requires,
the term may refer to a single individual or other described
entity.
"Personal assistant" means a licensed or unlicensed
person who has been hired for the purpose of aiding or
assisting a sponsored licensee in the performance of the
sponsored licensee's job.
"Pocket card" means the card issued by OBRE to signify
that the person named on the card is currently licensed under
this Act.
"Pre-license school" means a school licensed by OBRE
offering courses in subjects related to real estate
transactions, including the subjects upon which an applicant
is examined in determining fitness to receive a license.
"Pre-renewal period" means the period between the date of
issue of a currently valid license and the license's
expiration date.
"Real estate" means and includes leaseholds as well as
any other interest or estate in land, whether corporeal,
incorporeal, freehold, or non-freehold, including timeshare
interests, and whether the real estate is situated in this
State or elsewhere.
"Real Estate Administration and Disciplinary Board" or
"Board" means the Real Estate Administration and Disciplinary
Board created by Section 25-10 of this Act.
"Salesperson" means any individual, other than a real
estate broker or leasing agent, who is employed by a real
estate broker or is associated by written agreement with a
real estate broker as an independent contractor and
participates in any activity described in the definition of
"broker" under this Section.
"Sponsoring broker" means the broker who has issued a
sponsor card to a licensed salesperson, another licensed
broker, or a leasing agent.
"Sponsor card" means the temporary permit issued by the
sponsoring real estate broker certifying that the real estate
broker, real estate salesperson, or leasing agent named
thereon is employed by or associated by written agreement
with the sponsoring real estate broker, as provided for in
Section 5-40 of this Act.
(Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00;
91-603, eff. 1-1-00; revised 10-27-99.)
(225 ILCS 454/5-60)
Sec. 5-60. Broker licensed in another state; nonresident
salesperson; reciprocal agreements; agent for service of
process.
(a) A broker's license may be issued by OBRE to a broker
licensed under the laws of another state of the United
States, under the following conditions:
(1) the broker holds a broker's license in his or
her state of domicile;
(2) the standards for that state for licensing as a
broker are substantially equivalent to or greater than
the minimum standards in the State of Illinois;
(3) the broker has been actively practicing as a
broker in the broker's state of domicile for a period of
not less than 2 years, immediately prior to the date of
application;
(4) the broker furnishes OBRE with a statement
under seal of the proper licensing authority of the state
in which the broker is licensed showing that the broker
has an active broker's license, that the broker is in
good standing, and that no complaints are pending against
the broker in that state; and
(5) the broker completes a course of education and
passes a test on Illinois specific real estate brokerage
laws; and.
(6) OBRE has a reciprocal agreement with that state
that includes the provisions of this Section.
(b) A nonresident salesperson employed by or associated
with a nonresident broker holding a broker's license in this
State pursuant to this Section may, in the discretion of
OBRE, be issued a nonresident salesperson's license under the
nonresident broker provided all of the following conditions
are met:
(1) the salesperson maintains an active license in
the state in which he or she is domiciled;
(2) the salesperson is domiciled in the same state
as the broker with whom he or she is associated; and
(3) the salesperson completes a course of education
and passes a test on Illinois specific real estate
brokerage laws; and.
(4) OBRE has a reciprocal agreement with that state
that includes the provisions of this Section.
The nonresident broker with whom the salesperson is
associated shall comply with the provisions of this Act and
issue the salesperson a sponsor card upon the form provided
by OBRE.
(c) As a condition precedent to the issuance of a
license to a nonresident broker or salesperson, the broker or
salesperson shall agree in writing to abide by all the
provisions of this Act with respect to his or her real estate
activities within the State of Illinois and submit to the
jurisdiction of OBRE as provided in this Act. The agreement
shall be filed with OBRE and shall remain in force for so
long as the nonresident broker or salesperson is licensed by
this State and thereafter with respect to acts or omissions
committed while licensed as a broker or salesperson in this
State.
(d) Prior to the issuance of any license to any
nonresident, verification of active licensure issued for the
conduct of such business in any other state must be filed
with OBRE by the nonresident, and the same fees must be paid
as provided in this Act for the obtaining of a broker's or
salesperson's license in this State.
(e) Licenses previously granted under reciprocal
agreements with other states shall remain in force so long as
OBRE has a reciprocal agreement with the state that includes
the requirements of this Section, unless that license is
suspended, revoked, or terminated by OBRE for any reason
provided for suspension, revocation, or termination of a
resident licensee's license. Licenses granted under
reciprocal agreements may be renewed in the same manner as a
resident's license.
(f) Prior to the issuance of a license to a nonresident
broker or salesperson, the broker or salesperson shall file
with OBRE a designation in writing that appoints the
Commissioner to act as his or her agent upon whom all
judicial and other process or legal notices directed to the
broker or salesperson may be served. Service upon the agent
so designated shall be equivalent to personal service upon
the licensee. Copies of the appointment, certified by the
Commissioner, shall be deemed sufficient evidence thereof and
shall be admitted in evidence with the same force and effect
as the original thereof might be admitted. In the written
designation, the broker or salesperson shall agree that any
lawful process against the licensee that is served upon the
agent shall be of the same legal force and validity as if
served upon the licensee and that the authority shall
continue in force so long as any liability remains
outstanding in this State. Upon the receipt of any process
or notice, the Commissioner shall forthwith mail a copy of
the same by certified mail to the last known business address
of the licensee.
(g) Any person holding a valid license under this
Section shall be eligible to obtain a resident broker's or
salesperson's license without examination should that person
change their state of domicile to Illinois and that person
otherwise meets the qualifications or licensure under this
Act.
(Source: P.A. 91-245, eff. 12-31-99.)
Section 99. Effective date. This Act takes effect
December 31, 1999.
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