103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3740

 

Introduced 2/9/2024, by Sen. Javier L. Cervantes

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Real Estate License Act of 2000. Provides that for licensure as a managing broker, the person must personally take and pass a written examination on Illinois specific real estate brokerage laws authorized by the Department of Financial and Professional Regulation. Provides that approved pre-license education for licensure as a managing broker, broker, or residential leasing agent shall be valid for 2 years after the date of satisfactory completion of all required pre-license education. Provides that a nonresident broker who meets certain requirements may also operate a virtual office in the State. On January 1, 2026, repeals a provision concerning reciprocity for managing brokers and brokers licensed in another state. Provides that on and after January 1, 2026, applications for licensure based upon reciprocal agreements shall not be accepted. Provides that licenses granted under reciprocal agreements prior to January 1, 2026 shall remain in force and may be renewed in the same manner as provided for a broker or managing broker license under the Act. Requires fair housing training as part of the continuing education requirements. Sets forth provisions concerning licensure of managing brokers and brokers licensed under the laws of another state or jurisdiction of the United States and authorizing virtual offices. Makes changes in provisions concerning definitions; exemptions from licensure; continuing education; disclosure of compensation; employment agreements; agency relationship disclosure; grounds for discipline; citations; illegal discrimination; fines and penalties; a scholarship program; funds; and licensing of education provider instructors. Makes a conforming change in the State Finance Act. Effective January 1, 2025, except that certain provisions are effective immediately.


LRB103 36856 RTM 66968 b

 

 

A BILL FOR

 

SB3740LRB103 36856 RTM 66968 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.1015 as follows:
 
6    (30 ILCS 105/5.1015 new)
7    Sec. 5.1015. The Real Estate Recovery Fund.
 
8    Section 10. The Real Estate License Act of 2000 is amended
9by changing Sections 1-10, 5-20, 5-25, 5-28, 5-35, 5-45, 5-60,
105-70, 10-10, 10-20, 15-35, 15-50, 20-20, 20-20.1, 20-50,
1120-82, 25-25, 25-30, 25-35, 30-5, 30-15, and 30-25 and by
12adding Sections 5-60.1 and 5-60.5 as follows:
 
13    (225 ILCS 454/1-10)
14    (Section scheduled to be repealed on January 1, 2030)
15    Sec. 1-10. Definitions. In this Act, unless the context
16otherwise requires:
17    "Act" means the Real Estate License Act of 2000.
18    "Address of record" means the designated address recorded
19by the Department in the applicant's or licensee's application
20file or license file as maintained by the Department.
21    "Agency" means a relationship in which a broker or

 

 

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1licensee, whether directly or through an affiliated licensee,
2represents a consumer by the consumer's consent, whether
3express or implied, in a real property transaction.
4    "Applicant" means any person, as defined in this Section,
5who applies to the Department for a valid license as a managing
6broker, broker, or residential leasing agent.
7    "Blind advertisement" means any real estate advertisement
8that is used by a licensee regarding the sale or lease of real
9estate, licensed activities, or the hiring of any licensee
10under this Act that does not include the sponsoring broker's
11complete business name or, in the case of electronic
12advertisements, does not provide a direct link to a display
13with all the required disclosures. The broker's business name
14in the case of a franchise shall include the franchise
15affiliation as well as the name of the individual firm.
16    "Board" means the Real Estate Administration and
17Disciplinary Board of the Department as created by Section
1825-10 of this Act.
19    "Broker" means an individual, entity, corporation, foreign
20or domestic partnership, limited liability company, registered
21limited liability partnership, or other business entity other
22than a residential leasing agent who, whether in person or
23through any media or technology, for another and for
24compensation, or with the intention or expectation of
25receiving compensation, either directly or indirectly:
26        (1) Sells, exchanges, purchases, rents, or leases real

 

 

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1    estate.
2        (2) Offers to sell, exchange, purchase, rent, or lease
3    real estate.
4        (3) Negotiates, offers, attempts, or agrees to
5    negotiate the sale, exchange, purchase, rental, or leasing
6    of real estate.
7        (4) Lists, offers, attempts, or agrees to list real
8    estate for sale, rent, lease, or exchange.
9        (5) Whether for another or themselves, engages in a
10    pattern of business of buying, selling, offering to buy or
11    sell, marketing for sale, exchanging, or otherwise dealing
12    in contracts, including assignable contracts for the
13    purchase or sale of, or options on real estate or
14    improvements thereon. For purposes of this definition, an
15    individual or entity will be found to have engaged in a
16    pattern of business if the individual or entity by itself
17    or with any combination of other individuals or entities,
18    whether as partners or common owners in another entity,
19    has engaged in one or more of these practices on 2 or more
20    occasions in any 12-month period.
21        (6) Supervises the collection, offer, attempt, or
22    agreement to collect rent for the use of real estate.
23        (7) Advertises or represents oneself as being engaged
24    in the business of buying, selling, exchanging, renting,
25    or leasing real estate.
26        (8) Assists or directs in procuring or referring of

 

 

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1    leads or prospects, intended to result in the sale,
2    exchange, lease, or rental of real estate.
3        (9) Assists or directs in the negotiation of any
4    transaction intended to result in the sale, exchange,
5    lease, or rental of real estate.
6        (10) Opens real estate to the public for marketing
7    purposes.
8        (11) Sells, rents, leases, or offers for sale or lease
9    real estate at auction.
10        (12) Prepares or provides a broker price opinion or
11    comparative market analysis as those terms are defined in
12    this Act, pursuant to the provisions of Section 10-45 of
13    this Act.
14    "Brokerage agreement" means an a written or oral agreement
15between a sponsoring broker and a consumer for licensed
16activities, or the performance of future licensed activities,
17to be provided to a consumer in return for compensation or the
18right to receive compensation from another. Brokerage
19agreements may constitute either a bilateral or a unilateral
20agreement between the broker and the broker's client depending
21upon the content of the brokerage agreement. All exclusive
22brokerage agreements shall be in writing and may be exclusive
23or non-exclusive.
24    "Broker price opinion" means an estimate or analysis of
25the probable selling price of a particular interest in real
26estate, which may provide a varying level of detail about the

 

 

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1property's condition, market, and neighborhood and information
2on comparable sales. The activities of a real estate broker or
3managing broker engaging in the ordinary course of business as
4a broker, as defined in this Section, shall not be considered a
5broker price opinion if no compensation is paid to the broker
6or managing broker, other than compensation based upon the
7sale or rental of real estate. A broker price opinion shall not
8be considered an appraisal within the meaning of the Real
9Estate Appraiser Licensing Act of 2002, any amendment to that
10Act, or any successor Act.
11    "Client" means a person who is being represented by a
12licensee.
13    "Comparative market analysis" means an analysis or opinion
14regarding pricing, marketing, or financial aspects relating to
15a specified interest or interests in real estate that may be
16based upon an analysis of comparative market data, the
17expertise of the real estate broker or managing broker, and
18such other factors as the broker or managing broker may deem
19appropriate in developing or preparing such analysis or
20opinion. The activities of a real estate broker or managing
21broker engaging in the ordinary course of business as a
22broker, as defined in this Section, shall not be considered a
23comparative market analysis if no compensation is paid to the
24broker or managing broker, other than compensation based upon
25the sale or rental of real estate. A comparative market
26analysis shall not be considered an appraisal within the

 

 

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1meaning of the Real Estate Appraiser Licensing Act of 2002,
2any amendment to that Act, or any successor Act.
3    "Compensation" means the valuable consideration given by
4one person or entity to another person or entity in exchange
5for the performance of some activity or service. Compensation
6shall include the transfer of valuable consideration,
7including without limitation the following:
8        (1) commissions;
9        (2) referral fees;
10        (3) bonuses;
11        (4) prizes;
12        (5) merchandise;
13        (6) finder fees;
14        (7) performance of services;
15        (8) coupons or gift certificates;
16        (9) discounts;
17        (10) rebates;
18        (11) a chance to win a raffle, drawing, lottery, or
19    similar game of chance not prohibited by any other law or
20    statute;
21        (12) retainer fee; or
22        (13) salary.
23    "Confidential information" means information obtained by a
24licensee from a client during the term of a brokerage
25agreement that (i) was made confidential by the written
26request or written instruction of the client, (ii) deals with

 

 

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1the negotiating position of the client, or (iii) is
2information the disclosure of which could materially harm the
3negotiating position of the client, unless at any time:
4        (1) the client permits the disclosure of information
5    given by that client by word or conduct;
6        (2) the disclosure is required by law; or
7        (3) the information becomes public from a source other
8    than the licensee.
9    "Confidential information" shall not be considered to
10include material information about the physical condition of
11the property.
12    "Consumer" means a person or entity seeking or receiving
13licensed activities.
14    "Coordinator" means the Coordinator of Real Estate created
15in Section 25-15 of this Act.
16    "Credit hour" means 50 minutes of instruction in course
17work that meets the requirements set forth in rules adopted by
18the Department.
19    "Customer" means a consumer who is not being represented
20by the licensee.
21    "Department" means the Department of Financial and
22Professional Regulation.
23    "Designated agency" means a contractual relationship
24between a sponsoring broker and a client under Section 15-50
25of this Act in which one or more licensees associated with or
26employed by the broker are designated as agent of the client.

 

 

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1    "Designated agent" means a sponsored licensee named by a
2sponsoring broker as the legal agent of a client, as provided
3for in Section 15-50 of this Act.
4    "Designated managing broker" means a managing broker who
5has supervisory responsibilities for licensees in one or, in
6the case of a multi-office company, more than one office and
7who has been appointed as such by the sponsoring broker
8registered with the Department.
9    "Director" means the Director of Real Estate within the
10Department of Financial and Professional Regulation.
11    "Dual agency" means an agency relationship in which a
12licensee is representing both buyer and seller or both
13landlord and tenant in the same transaction. When the agency
14relationship is a designated agency, the question of whether
15there is a dual agency shall be determined by the agency
16relationships of the designated agent of the parties and not
17of the sponsoring broker.
18    "Education provider" means a school licensed by the
19Department offering courses in pre-license, post-license, or
20continuing education required by this Act.
21    "Employee" or other derivative of the word "employee",
22when used to refer to, describe, or delineate the relationship
23between a sponsoring broker and a managing broker, broker, or
24a residential leasing agent, shall be construed to include an
25independent contractor relationship, provided that a written
26agreement exists that clearly establishes and states the

 

 

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1relationship.
2    "Escrow moneys" means all moneys, promissory notes, or any
3other type or manner of legal tender or financial
4consideration deposited with any person for the benefit of the
5parties to the transaction. A transaction exists once an
6agreement has been reached and an accepted real estate
7contract signed or lease agreed to by the parties. "Escrow
8moneys" includes, without limitation, earnest moneys and
9security deposits, except those security deposits in which the
10person holding the security deposit is also the sole owner of
11the property being leased and for which the security deposit
12is being held.
13    "Electronic means of proctoring" means a methodology
14providing assurance that the person taking a test and
15completing the answers to questions is the person seeking
16licensure or credit for continuing education and is doing so
17without the aid of a third party or other device.
18    "Exclusive brokerage agreement" means a written brokerage
19agreement that provides that the sponsoring broker has the
20sole right, through one or more sponsored licensees, to act as
21the exclusive agent or representative of the client and that
22meets the requirements of Section 15-75 of this Act.
23    "Inactive" means a status of licensure where the licensee
24holds a current license under this Act, but the licensee is
25prohibited from engaging in licensed activities because the
26licensee is unsponsored or the license of the sponsoring

 

 

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1broker with whom the licensee is associated or by whom the
2licensee is employed is currently expired, revoked, suspended,
3or otherwise rendered invalid under this Act. The license of
4any business entity that is not in good standing with the
5Illinois Secretary of State, or is not authorized to conduct
6business in Illinois, shall immediately become inactive and
7that entity shall be prohibited from engaging in any licensed
8activities.
9    "Leads" means the name or names of a potential buyer,
10seller, lessor, lessee, or client of a licensee.
11    "License" means the privilege conferred by the Department
12to a person that has fulfilled all requirements prerequisite
13to any type of licensure under this Act.
14    "Licensed activities" means those activities listed in the
15definition of "broker" under this Section.
16    "Licensee" means any person licensed under this Act.
17    "Listing presentation" means any communication, written or
18oral and by any means or media, between a managing broker or
19broker and a consumer in which the licensee is attempting to
20secure a brokerage agreement with the consumer to market the
21consumer's real estate for sale or lease.
22    "Managing broker" means a licensee who may be authorized
23to assume responsibilities as a designated managing broker for
24licensees in one or, in the case of a multi-office company,
25more than one office, upon appointment by the sponsoring
26broker and registration with the Department. A managing broker

 

 

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1may act as one's own sponsor.
2    "Medium of advertising" means any method of communication
3intended to influence the general public to use or purchase a
4particular good or service or real estate, including, but not
5limited to, print, electronic, social media, and digital
6forums.
7    "Non-exclusive brokerage agreement" means a written
8brokerage agreement that provides that the sponsoring broker
9has the non-exclusive right, through one or more sponsored
10licensees, to act as an agent or representative of the client
11for the performance of licensed activities and meets the
12requirements of Section 15-50 of this Act.
13    "Office" means a broker's place of business where the
14general public is invited to transact business and where
15records may be maintained and licenses readily available,
16whether or not it is the broker's principal place of business.
17    "Person" means and includes individuals, entities,
18corporations, limited liability companies, registered limited
19liability partnerships, foreign and domestic partnerships, and
20other business entities, except that when the context
21otherwise requires, the term may refer to a single individual
22or other described entity.
23    "Proctor" means any person, including, but not limited to,
24an instructor, who has a written agreement to administer
25examinations fairly and impartially with a licensed education
26provider.

 

 

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1    "Real estate" means and includes leaseholds as well as any
2other interest or estate in land, whether corporeal,
3incorporeal, freehold, or non-freehold and whether the real
4estate is situated in this State or elsewhere. "Real estate"
5does not include property sold, exchanged, or leased as a
6timeshare or similar vacation item or interest, vacation club
7membership, or other activity formerly regulated under the
8Real Estate Timeshare Act of 1999 (repealed).
9    "Regular employee" means a person working an average of 20
10hours per week for a person or entity who would be considered
11as an employee under the Internal Revenue Service rules for
12classifying workers.
13    "Renewal period" means the period beginning 90 days prior
14to the expiration date of a license.
15    "Residential leasing agent" means a person who is employed
16by a broker to engage in licensed activities limited to
17leasing residential real estate who has obtained a license as
18provided for in Section 5-5 of this Act.
19    "Secretary" means the Secretary of the Department of
20Financial and Professional Regulation, or a person authorized
21by the Secretary to act in the Secretary's stead.
22    "Sponsoring broker" means the broker who certifies to the
23Department the broker's sponsorship of a licensed managing
24broker, broker, or a residential leasing agent.
25    "Sponsorship" means that a sponsoring broker has certified
26to the Department that a managing broker, broker, or

 

 

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1residential leasing agent is employed by or associated by
2written agreement with the sponsoring broker and the
3Department has registered the sponsorship, as provided for in
4Section 5-40 of this Act.
5    "Team" means any 2 or more licensees who work together to
6provide real estate brokerage services, represent themselves
7to the public as being part of a team or group, are identified
8by a team name that is different than their sponsoring
9broker's name, and together are supervised by the same
10managing broker and sponsored by the same sponsoring broker.
11"Team" does not mean a separately organized, incorporated, or
12legal entity.
13(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
 
14    (225 ILCS 454/5-20)
15    (Section scheduled to be repealed on January 1, 2030)
16    Sec. 5-20. Exemptions from managing broker, broker, or
17residential leasing agent license requirement; Department
18exemption from education provider and related licenses. The
19requirement for holding a license under this Article 5 shall
20not apply to:
21        (1) Any person, as defined in Section 1-10, who: (A)
22    is the that as owner or lessor of real property who
23    performs any of the acts described in the definition of
24    "broker" under Section 1-10 of this Act only as it relates
25    to the owned or leased property; or (B) is with reference

 

 

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1    to property owned or leased by it, or to the regular
2    employee who, in the course of the employee's duties and
3    incidental to employees thereof with respect to the
4    property so owned or leased, where such acts are performed
5    in the regular course of or as an incident to the
6    management, sale, or other disposition of such property
7    and the investment of the owned or leased property
8    performs therein, if such regular employees do not perform
9    any of the acts described in the definition of "broker"
10    under Section 1-10 of this Act in connection with a
11    vocation of selling or leasing any real estate or the
12    improvements thereon not so owned or leased. The exemption
13    in this item (1) does not apply to the person, the person's
14    employees, or the person's agents performing licensed
15    activity for property not owned or leased by that person.
16        (2) An attorney in fact acting under a duly executed
17    and recorded power of attorney to convey real estate from
18    the owner or lessor or the services rendered by an
19    attorney at law in the performance of the attorney's duty
20    as an attorney at law.
21        (3) Any person acting as receiver, trustee in
22    bankruptcy, administrator, executor, or guardian or while
23    acting under a court order or under the authority of a will
24    or testamentary trust.
25        (4) Any person acting as a resident manager for the
26    owner or any employee acting as the resident manager for a

 

 

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1    broker managing an apartment building, duplex, or
2    apartment complex, when the resident manager resides on
3    the premises, the premises is the primary residence of the
4    resident manager, and the resident manager is engaged in
5    the leasing of that property.
6        (5) Any officer or employee of a federal agency in the
7    conduct of official duties.
8        (6) Any officer or employee of the State government or
9    any political subdivision thereof performing official
10    duties.
11        (7) Any multiple listing service or other similar
12    information exchange that is engaged in the collection and
13    dissemination of information concerning real estate
14    available for sale, purchase, lease, or exchange for the
15    purpose of providing licensees with a system by which
16    licensees may cooperatively share information along with
17    which no other licensed activities, as defined in Section
18    1-10 of this Act, are provided.
19        (8) Railroads and other public utilities regulated by
20    the State of Illinois, or the officers or full-time
21    employees thereof, unless the performance of any licensed
22    activities is in connection with the sale, purchase,
23    lease, or other disposition of real estate or investment
24    therein that does not require the approval of the
25    appropriate State regulatory authority.
26        (9) Any medium of advertising in the routine course of

 

 

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1    selling or publishing advertising along with which no
2    other licensed activities, as defined in Section 1-10 of
3    this Act, are provided.
4        (10) Any resident lessee of a residential dwelling
5    unit who refers for compensation to the owner of the
6    dwelling unit, or to the owner's agent, prospective
7    lessees of dwelling units in the same building or complex
8    as the resident lessee's unit, but only if the resident
9    lessee (i) refers no more than 3 prospective lessees in
10    any 12-month period, (ii) receives compensation of no more
11    than $5,000 or the equivalent of 2 months' rent, whichever
12    is less, in any 12-month period, and (iii) limits
13    activities to referring prospective lessees to the owner,
14    or the owner's agent, and does not show a residential
15    dwelling unit to a prospective lessee, discuss terms or
16    conditions of leasing a dwelling unit with a prospective
17    lessee, or otherwise participate in the negotiation of the
18    leasing of a dwelling unit.
19        (11) The purchase, sale, or transfer of a timeshare or
20    similar vacation item or interest, vacation club
21    membership, or other activity formerly regulated under the
22    Real Estate Timeshare Act of 1999 (repealed).
23        (12) (Blank).
24        (13) Any person who is licensed without examination
25    under Section 10-25 (now repealed) of the Auction License
26    Act is exempt from holding a managing broker's or broker's

 

 

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1    license under this Act for the limited purpose of selling
2    or leasing real estate at auction, so long as:
3            (A) that person has made application for said
4        exemption by July 1, 2000;
5            (B) that person verifies to the Department that
6        the person has sold real estate at auction for a period
7        of 5 years prior to licensure as an auctioneer;
8            (C) the person has had no lapse in the licensure as
9        an auctioneer; and
10            (D) the license issued under the Auction License
11        Act has not been disciplined for violation of those
12        provisions of Article 20 of the Auction License Act
13        dealing with or related to the sale or lease of real
14        estate at auction.
15        (14) A person who holds a valid license under the
16    Auction License Act and a valid real estate auction
17    certification and conducts auctions for the sale of real
18    estate under Section 5-32 of this Act.
19        (15) A hotel operator who is registered with the
20    Illinois Department of Revenue and pays taxes under the
21    Hotel Operators' Occupation Tax Act and rents a room or
22    rooms in a hotel as defined in the Hotel Operators'
23    Occupation Tax Act for a period of not more than 30
24    consecutive days and not more than 60 days in a calendar
25    year or a person who participates in an online marketplace
26    enabling persons to rent out all or part of the person's

 

 

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1    owned residence.
2        (16) Notwithstanding any provisions to the contrary,
3    the Department and its employees shall be exempt from
4    education, course provider, instructor, and course license
5    requirements and fees while acting in an official capacity
6    on behalf of the Department. Courses offered by the
7    Department shall be eligible for continuing education
8    credit.
9(Source: P.A. 103-236, eff. 1-1-24.)
 
10    (225 ILCS 454/5-25)
11    (Section scheduled to be repealed on January 1, 2030)
12    Sec. 5-25. Good moral character.
13    (a) When an applicant has had a license revoked on a prior
14occasion or when an applicant is found to have committed any of
15the practices enumerated in Section 20-20 of this Act or when
16an applicant has been convicted of or enters a plea of guilty
17or nolo contendere to forgery, embezzlement, obtaining money
18under false pretenses, larceny, extortion, conspiracy to
19defraud, or any other similar offense or offenses or has been
20convicted of a felony involving moral turpitude in any court
21of competent jurisdiction in this or any other state,
22district, or territory of the United States or of a foreign
23country, the Department Board may consider the prior
24revocation, conduct, or conviction in its determination of the
25applicant's moral character and whether to grant the applicant

 

 

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1a license.
2    (b) In its consideration of the prior revocation, conduct,
3or conviction, the Department Board shall take into account
4the nature of the conduct, any aggravating or extenuating
5circumstances, the time elapsed since the revocation, conduct,
6or conviction, the rehabilitation or restitution performed by
7the applicant, mitigating factors, and any other factors that
8the Department Board deems relevant, including, but not
9limited to:
10        (1) the lack of direct relation of the offense for
11    which the applicant was previously convicted to the
12    duties, functions, and responsibilities of the position
13    for which a license is sought;
14        (2) unless otherwise specified, whether 5 years since
15    a felony conviction or 3 years since release from
16    confinement for the conviction, whichever is later, have
17    passed without a subsequent conviction;
18        (3) if the applicant was previously licensed or
19    employed in this State or other states or jurisdictions,
20    the lack of prior misconduct arising from or related to
21    the licensed position or position of employment;
22        (4) the age of the person at the time of the criminal
23    offense;
24        (5) if, due to the applicant's criminal conviction
25    history, the applicant would be explicitly prohibited by
26    federal rules or regulations from working in the position

 

 

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1    for which a license is sought;
2        (6) successful completion of sentence and, for
3    applicants serving a term of parole or probation, a
4    progress report provided by the applicant's probation or
5    parole officer that documents the applicant's compliance
6    with conditions of supervision;
7        (7) evidence of the applicant's present fitness and
8    professional character;
9        (8) evidence of rehabilitation or rehabilitative
10    effort during or after incarceration, or during or after a
11    term of supervision, including, but not limited to, a
12    certificate of good conduct under Section 5-5.5-25 of the
13    Unified Code of Corrections or a certificate of relief
14    from disabilities under Section 5-5.5-10 of the Unified
15    Code of Corrections; and
16        (9) any other mitigating factors that contribute to
17    the person's potential and current ability to perform the
18    job duties.
19    (c) The Department shall not require applicants to report
20the following information and shall not consider the following
21criminal history records in connection with an application for
22licensure or registration:
23        (1) juvenile adjudications of delinquent minors as
24    defined in Section 5-105 of the Juvenile Court Act of 1987
25    subject to the restrictions set forth in Section 5-130 of
26    that Act;

 

 

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1        (2) law enforcement records, court records, and
2    conviction records of an individual who was 17 years old
3    at the time of the offense and before January 1, 2014,
4    unless the nature of the offense required the individual
5    to be tried as an adult;
6        (3) records of arrests not followed by a charge or
7    conviction;
8        (4) records of arrests where the charges were
9    dismissed unless related to the practice of the
10    profession; however, applicants shall not be asked to
11    report any arrests, and an arrest not followed by a
12    conviction shall not be the basis of a denial and may be
13    used only to assess an applicant's rehabilitation;
14        (5) convictions overturned by a higher court; or
15        (6) convictions or arrests that have been sealed or
16    expunged.
17    (d) If an applicant makes a false statement of material
18fact on the application, the false statement may in itself be
19sufficient grounds to revoke or refuse to issue a license.
20    (e) A licensee shall report to the Department, in a manner
21prescribed by the Department and within 30 days after the
22occurrence of: (1) any conviction of or plea of guilty, or nolo
23contendere to forgery, embezzlement, obtaining money under
24false pretenses, larceny, extortion, conspiracy to defraud, or
25any similar offense or offenses or any conviction of a felony
26involving moral turpitude; (2) the entry of an administrative

 

 

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1sanction by a government agency in this State or any other
2jurisdiction that has as an essential element of dishonesty or
3fraud or involves larceny, embezzlement, or obtaining money,
4property, or credit by false pretenses; or (3) any conviction
5of or plea of guilty or nolo contendere to a crime that
6subjects the licensee to compliance with the requirements of
7the Sex Offender Registration Act.
8(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
9    (225 ILCS 454/5-28)
10    (Section scheduled to be repealed on January 1, 2030)
11    Sec. 5-28. Requirements for licensure as a managing
12broker.
13    (a) Every applicant for licensure as a managing broker
14must meet the following qualifications:
15        (1) be at least 20 years of age;
16        (2) be of good moral character;
17        (3) have been licensed at least 2 consecutive years
18    out of the preceding 3 years as a broker;
19        (4) successfully complete a 4-year course of study in
20    high school or secondary school approved by the state in
21    which the school is located, or a State of Illinois High
22    School Diploma, which shall be verified under oath by the
23    applicant;
24        (5) provide satisfactory evidence of having completed
25    at least 165 hours, 120 of which shall be those hours

 

 

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1    required pre-licensure and post-licensure to obtain a
2    broker's license, and 45 additional hours completed within
3    the year immediately preceding the filing of an
4    application for a managing broker's license, which hours
5    shall focus on brokerage administration and management and
6    residential leasing agent management and include at least
7    15 hours in the classroom or by live, interactive webinar
8    or online distance education courses;
9        (6) personally take and pass a written examination on
10    Illinois specific real estate brokerage laws authorized by
11    the Department; and
12        (7) submit a valid application for issuance of a
13    license accompanied by the fees specified by rule.
14    (b) The requirements specified in item (5) of subsection
15(a) of this Section do not apply to applicants who are
16currently admitted to practice law by the Supreme Court of
17Illinois and are currently in active standing.
18(Source: P.A. 101-357, eff. 8-9-19; 102-1100, eff. 1-1-23.)
 
19    (225 ILCS 454/5-35)
20    (Section scheduled to be repealed on January 1, 2030)
21    Sec. 5-35. Examination; managing broker, broker, or
22residential leasing agent.
23    (a) The Department shall authorize examinations at such
24times and places as it may designate. The examination shall be
25of a character to give a fair test of the qualifications of the

 

 

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1applicant to practice as a managing broker, broker, or
2residential leasing agent. Applicants for examination as a
3managing broker, broker, or residential leasing agent shall be
4required to pay, either to the Department or the designated
5testing service, a fee covering the cost of providing the
6examination. Failure to appear for the examination on the
7scheduled date, at the time and place specified, after the
8applicant's application for examination has been received and
9acknowledged by the Department or its designated testing
10service, shall result in the forfeiture of the examination
11fee. An applicant shall be eligible to take the examination
12only after successfully completing the education requirements
13and attaining the minimum age provided for in Article 5 of this
14Act. Approved pre-license education, as prescribed by this Act
15for licensure as a managing broker, broker, or residential
16leasing agent, shall be valid for 2 years after the date of
17satisfactory completion of all required pre-license education.
18Each applicant shall be required to establish compliance with
19the eligibility requirements in the manner provided by the
20rules promulgated for the administration of this Act.
21    (b) If a person who has received a passing score on the
22written examination described in this Section fails to submit
23an application and meet all requirements for a license under
24this Act within one year after receiving a passing score on the
25examination, credit for the examination shall terminate. The
26person thereafter may make a new application for examination.

 

 

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1    (c) If an applicant has failed an examination 4
2consecutive times, the applicant must repeat the pre-license
3education required to sit for that examination. For the
4purposes of this Section, the fifth attempt shall be the same
5as the first, and the applicant must complete a new
6application for examination. Approved education, as prescribed
7by this Act for licensure as a managing broker, broker, or
8residential leasing agent, shall be valid for 2 years after
9the date of satisfactory completion of the education.
10    (d) The Department may employ consultants for the purposes
11of preparing and conducting examinations.
12    (e) Each applicant shall establish the applicant's
13compliance with the eligibility requirements in the manner
14provided by the rules adopted for the administration of this
15Act.
16(Source: P.A. 101-357, eff. 8-9-19.)
 
17    (225 ILCS 454/5-45)
18    (Section scheduled to be repealed on January 1, 2030)
19    Sec. 5-45. Offices.
20    (a) If a sponsoring broker maintains more than one office
21within the State, the sponsoring broker shall notify the
22Department in a manner prescribed by the Department for each
23office other than the sponsoring broker's principal place of
24business. The brokerage license shall be displayed
25conspicuously in each office. The name of each branch office

 

 

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1shall be the same as that of the sponsoring broker's principal
2office or shall clearly delineate the office's relationship
3with the principal office.
4    (b) The sponsoring broker shall name a designated managing
5broker for each office and the sponsoring broker shall be
6responsible for supervising all designated managing brokers.
7The sponsoring broker shall notify the Department in a manner
8prescribed by the Department of the name of all designated
9managing brokers of the sponsoring broker and the office or
10offices they manage. Any changes in designated managing
11brokers shall be reported to the Department in a manner
12prescribed by the Department within 15 days of the change.
13Failure to do so shall subject the sponsoring broker to
14discipline under Section 20-20 of this Act.
15    (c) The sponsoring broker shall, within 24 hours, notify
16the Department in a manner prescribed by the Department of any
17opening, closing, or change in location of any office.
18    (d) Except as provided in this Section, each sponsoring
19broker shall maintain an office, or place of business within
20this State for the transaction of real estate business, shall
21conspicuously display an identification sign on the outside of
22the physical office of adequate size and visibility. Any
23record required by this Act to be created or maintained shall
24be, in the case of a physical record, securely stored and
25accessible for inspection by the Department at the sponsoring
26broker's principal office and, in the case of an electronic

 

 

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1record, securely stored in the format in which it was
2originally generated, sent, or received and accessible for
3inspection by the Department by secure electronic access to
4the record. Any record relating to a transaction of a special
5account shall be maintained for a minimum of 5 years, and any
6electronic record shall be backed up at least monthly. The
7physical office or place of business shall not be located in
8any retail or financial business establishment unless it is
9clearly separated from the other business and is situated
10within a distinct area within the establishment.
11    (e) A nonresident broker who is licensed in this State by
12examination or pursuant to the provisions of Section 5-60 or
135-60.5 of this Act shall not be required to maintain a definite
14office or place of business in this State so long as the broker
15provided all of the following conditions are met:
16        (1) the broker maintains an active broker's license in
17    the broker's other state of licensure domicile;
18        (2) the broker maintains an office in the broker's
19    other state of licensure domicile; and
20        (3) files the broker has filed with the Department
21    written statements appointing the Secretary to act as the
22    broker's agent upon whom all judicial and other process or
23    legal notices directed to the licensee may be served and
24    agreeing to abide by all of the provisions of this Act with
25    respect to the broker's real estate activities within the
26    State of Illinois and submitting to the jurisdiction of

 

 

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1    the Department.
2    The statements under subdivision (3) of this Section shall
3be in form and substance the same as those statements required
4under Section 5-60 of this Act and shall operate to the same
5extent.
6    (f) The Department may adopt rules to regulate the
7operation of virtual offices that do not have a fixed
8location. A broker who qualifies under subsection (e) of this
9Section may also operate a virtual office in the State subject
10to all requirements of this Act and the rules adopted under
11this Act.
12(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
13    (225 ILCS 454/5-60)
14    (Section scheduled to be repealed on January 1, 2030)
15    Sec. 5-60. Managing broker licensed in another state;
16broker licensed in another state; reciprocal agreements; agent
17for service of process.
18    (a) A managing broker's license may be issued by the
19Department to a managing broker or its equivalent licensed
20under the laws of another state of the United States, under the
21following conditions:
22        (1) the managing broker holds a managing broker's
23    license in a state that has entered into a reciprocal
24    agreement with the Department;
25        (2) the standards for that state for licensing as a

 

 

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1    managing broker are substantially equal to or greater than
2    the minimum standards in the State of Illinois;
3        (3) the managing broker has been actively practicing
4    as a managing broker in the managing broker's state of
5    licensure for a period of not less than 2 years,
6    immediately prior to the date of application;
7        (4) the managing broker furnishes the Department with
8    a statement under seal of the proper licensing authority
9    of the state in which the managing broker is licensed
10    showing that the managing broker has an active managing
11    broker's license, that the managing broker is in good
12    standing, and any disciplinary action taken against the
13    managing broker in that state;
14        (5) the managing broker passes a test on Illinois
15    specific real estate brokerage laws; and
16        (6) the managing broker was licensed by an examination
17    in the state that has entered into a reciprocal agreement
18    with the Department.
19    (b) A broker's license may be issued by the Department to a
20broker or its equivalent licensed under the laws of another
21state of the United States, under the following conditions:
22        (1) the broker holds a broker's license in a state
23    that has entered into a reciprocal agreement with the
24    Department;
25        (2) the standards for that state for licensing as a
26    broker are substantially equivalent to or greater than the

 

 

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1    minimum standards in the State of Illinois;
2        (3) (blank);
3        (4) the broker furnishes the Department with a
4    statement under seal of the proper licensing authority of
5    the state in which the broker is licensed showing that the
6    broker has an active broker's license, that the broker is
7    in good standing, and any disciplinary action taken
8    against the broker in that state;
9        (5) the broker passes a test on Illinois specific real
10    estate brokerage laws; and
11        (6) the broker was licensed by an examination in a
12    state that has entered into a reciprocal agreement with
13    the Department.
14    (c) (Blank).
15    (d) As a condition precedent to the issuance of a license
16to a managing broker or broker pursuant to this Section, the
17managing broker or broker shall agree in writing to abide by
18all the provisions of this Act with respect to real estate
19activities within the State of Illinois and submit to the
20jurisdiction of the Department as provided in this Act. The
21agreement shall be filed with the Department and shall remain
22in force for so long as the managing broker or broker is
23licensed by this State and thereafter with respect to acts or
24omissions committed while licensed as a managing broker or
25broker in this State.
26    (e) The Prior to the issuance of any license to any

 

 

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1managing broker or broker pursuant to this Section,
2verification of active licensure issued for the conduct of
3such business in any other state must be filed with the
4Department by the managing broker or broker, and the same fees
5must be paid as provided in this Act for the obtaining of a
6managing broker's or broker's license in this State.
7    (f) Licenses previously granted under reciprocal
8agreements with other states shall remain in force so long as
9the Department has a reciprocal agreement with the state that
10includes the requirements of this Section, unless that license
11is suspended, revoked, or terminated by the Department for any
12reason provided for suspension, revocation, or termination of
13a resident licensee's license. Licenses granted under
14reciprocal agreements may be renewed in the same manner as a
15resident's license.
16    (g) Prior to the issuance of a license to a nonresident
17managing broker or broker, the managing broker or broker shall
18file with the Department, in a manner prescribed by the
19Department, a designation in writing that appoints the
20Secretary to act as agent upon whom all judicial and other
21process or legal notices directed to the managing broker or
22broker may be served. Service upon the agent so designated
23shall be equivalent to personal service upon the licensee.
24Copies of the appointment, certified by the Secretary, shall
25be deemed sufficient evidence thereof and shall be admitted in
26evidence with the same force and effect as the original

 

 

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1thereof might be admitted. In the written designation, the
2managing broker or broker shall agree that any lawful process
3against the licensee that is served upon the agent shall be of
4the same legal force and validity as if served upon the
5licensee and that the authority shall continue in force so
6long as any liability remains outstanding in this State. Upon
7the receipt of any process or notice, the Secretary shall
8forthwith deliver a copy of the same by regular mail or email
9to the last known business address or email address of the
10licensee.
11    (h) (Blank). Any person holding a valid license under this
12Section shall be eligible to obtain a managing broker's
13license or a broker's license without examination should that
14person change their state of domicile to Illinois and that
15person otherwise meets the qualifications for licensure under
16this Act.
17    (i) This Section is repealed on January 1, 2026.
18(Source: P.A. 103-236, eff. 1-1-24.)
 
19    (225 ILCS 454/5-60.1 new)
20    Sec. 5-60.1. Applications for licensure based upon
21reciprocal agreements. On and after January 1, 2026 (the
22repeal date of Section 5-60), applications for licensure based
23upon reciprocal agreements shall not be accepted. Licenses
24granted under reciprocal agreements prior to January 1, 2026
25shall remain in force and may be renewed in the same manner as

 

 

SB3740- 33 -LRB103 36856 RTM 66968 b

1provided for a broker or managing broker license under Section
25-50 of this Act and by rule.
 
3    (225 ILCS 454/5-60.5 new)
4    Sec. 5-60.5. Managing broker licensed in another state;
5broker licensed in another state; endorsement requirements;
6agent for service of process.
7    (a) A managing broker's license may be issued by the
8Department to a managing broker or its equivalent licensed
9under the laws of another state or jurisdiction of the United
10States under the following conditions:
11        (1) the managing broker holds an active managing
12    broker's license or its equivalent in another state or
13    jurisdiction;
14        (2) the managing broker has been actively practicing
15    as a managing broker or its license equivalent in the
16    managing broker's state or jurisdiction of licensure for a
17    period of not less than 2 years immediately prior to the
18    date of application;
19        (3) the managing broker furnishes the Department with
20    an official statement from the proper licensing authority
21    of each state or jurisdiction in which the managing broker
22    is licensed certifying (i) that the managing broker has an
23    active license, (ii) that the managing broker is in good
24    standing, and (iii) any history of discipline against the
25    managing broker in that state or jurisdiction of

 

 

SB3740- 34 -LRB103 36856 RTM 66968 b

1    licensure;
2        (4) the managing broker passes a test on Illinois
3    specific real estate brokerage laws; and
4        (5) the managing broker provides proof of successful
5    completion of a pre-license endorsement course approved by
6    the Department.
7    (b) A broker's license may be issued by the Department to a
8broker or its equivalent licensed under the laws of another
9state or jurisdiction of the United States under the following
10conditions:
11        (1) the broker holds an active broker's license or its
12    equivalent in another state or jurisdiction;
13        (2) the broker furnishes the Department with an
14    official statement from the proper licensing authority of
15    each state or jurisdiction in which the broker is licensed
16    certifying (i) whether the broker has an active license,
17    (ii) that the broker is in good standing, and (iii) any
18    history of discipline against the broker in that state or
19    jurisdiction of licensure;
20        (3) the broker passes a test on Illinois specific real
21    estate brokerage laws;
22        (4) the broker provides proof of successful completion
23    of a pre-license endorsement course approved by the
24    Department; and
25        (5) if the broker has been actively practicing as a
26    broker or its license equivalent in any other state or

 

 

SB3740- 35 -LRB103 36856 RTM 66968 b

1    jurisdiction for less than 2 years immediately prior to
2    the date of application, the broker must complete the 45
3    hours of post-license broker education prescribed in this
4    Act and by rule.
5    (c) As a condition precedent to the issuance of a license
6to a managing broker or broker pursuant to this Section, the
7managing broker or broker shall agree to abide by all the
8provisions of this Act with respect to managing broker's or
9broker's real estate activities within the State of Illinois
10and submit to the jurisdiction of the Department as provided
11in this Act. The agreement shall remain in force for so long as
12the managing broker or broker is licensed by this State and
13thereafter with respect to acts or omissions committed while
14licensed in this State.
15    (d) Prior to the issuance of a license to a nonresident
16managing broker or broker, the managing broker or broker shall
17file with the Department a designation in writing that
18appoints the Secretary to act as the managing broker's or
19broker's agent upon whom all judicial and other process or
20legal notices directed to the managing broker or broker may be
21served. Service upon the Secretary shall be equivalent to
22personal service upon the licensee. Copies of the appointment,
23certified by the Secretary, shall be deemed sufficient
24evidence and shall be admitted into evidence with the same
25force and effect as if the original is admitted.
26    (e) The same fees must be paid as provided in this Act for

 

 

SB3740- 36 -LRB103 36856 RTM 66968 b

1obtaining a managing broker's or broker's license in this
2State.
3    (f) In the written designation, the managing broker or
4broker shall agree that any lawful process against the
5licensee that is served upon the agent shall be of the same
6legal force and validity as if served upon the licensee and
7that the authority shall continue in force so long as any
8liability remains outstanding in this State. Upon the receipt
9of any process or notice, the Secretary shall deliver a copy of
10the same by regular mail or email to the mailing address or
11email address of record of the licensee.
 
12    (225 ILCS 454/5-70)
13    (Section scheduled to be repealed on January 1, 2030)
14    Sec. 5-70. Continuing education requirement; managing
15broker or broker.
16    (a) The requirements of this Section apply to all managing
17brokers and brokers.
18    (b) Except as otherwise provided in this Section, each
19person who applies for renewal of a license as a managing
20broker or broker must successfully complete 12 hours of real
21estate continuing education courses recommended by the Board
22and approved by the Department during the current term of the
23license. In addition, those licensees renewing or obtaining a
24managing broker's license must successfully complete a 12-hour
25broker management continuing education course approved by the

 

 

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1Department during the current term of the license. The broker
2management continuing education course must be completed in
3the classroom, or through a live, interactive webinar, or in
4an online distance education format. No license may be renewed
5except upon the successful completion of the required courses
6or their equivalent or upon a waiver of those requirements for
7good cause shown as determined by the Secretary upon the
8recommendation of the Board. The requirements of this Article
9are applicable to all managing brokers and brokers except
10those managing brokers and brokers who, during the current
11term of licensure:
12        (1) serve in the armed services of the United States;
13        (2) serve as an elected State or federal official;
14        (3) serve as a full-time employee of the Department;
15    or
16        (4) are admitted to practice law pursuant to Illinois
17    Supreme Court rule.
18    (c) (Blank).
19    (d) A person receiving an initial license during the 90
20days before the renewal date shall not be required to complete
21the continuing education courses provided for in subsection
22(b) of this Section as a condition of initial license renewal.
23    (e) The continuing education requirement for brokers and
24managing brokers shall consist of a single core curriculum,
25which must include at least 2 credit hours of fair housing
26training, and an elective curriculum, to be recommended by the

 

 

SB3740- 38 -LRB103 36856 RTM 66968 b

1Board and approved by the Department in accordance with this
2subsection. With the exception of the fair housing training,
3the The core curriculum shall not be further divided into
4subcategories or divisions of instruction. The core curriculum
5shall consist of 6 total 4 hours during the current term of the
6license on subjects that may include, but are not limited to,
7advertising, agency, disclosures, escrow, fair housing,
8residential leasing agent management, and license law, and
9must include at least 2 credit hours of fair housing training.
10The amount of time allotted to each of the remaining these
11subjects shall be recommended by the Board and determined by
12the Department.
13    The Department, upon the recommendation of the Board,
14shall review the core curriculum every 4 years, at a minimum,
15and shall revise the curriculum if necessary. However, the
16core curriculum's total hourly requirement shall only be
17subject to change by amendment of this subsection, and any
18change to the core curriculum shall not be effective for a
19period of 6 months after such change is made by the Department.
20The Department shall provide notice to all approved education
21providers of any changes to the core curriculum. When
22determining whether revisions of the core curriculum's
23subjects or specific time requirements are necessary, the
24Board shall consider recent changes in applicable laws, new
25laws, and areas of the license law and the Department policy
26that the Board deems appropriate, and any other subject areas

 

 

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1the Board deems timely and applicable in order to prevent
2violations of this Act and to protect the public. In
3establishing a recommendation to the Department regarding the
4elective curriculum, the Board shall consider subjects that
5cover the various aspects of the practice of real estate that
6are covered under the scope of this Act.
7    (f) The subject areas of continuing education courses
8recommended by the Board and approved by the Department shall
9be meant to protect the professionalism of the industry, the
10consumer, and the public and prevent violations of this Act
11and may include, without limitation, the following:
12        (1) license law and escrow;
13        (2) antitrust;
14        (3) fair housing;
15        (4) agency;
16        (5) appraisal;
17        (6) property management;
18        (7) residential brokerage;
19        (8) farm property management;
20        (9) transaction management rights and duties of
21    parties in a transaction;
22        (10) commercial brokerage and leasing;
23        (11) real estate financing;
24        (12) disclosures;
25        (13) residential leasing agent management;
26        (14) advertising;

 

 

SB3740- 40 -LRB103 36856 RTM 66968 b

1        (15) broker supervision and designated managing broker
2    responsibility;
3        (16) professional conduct; and
4        (17) use of technology; and .
5        (18) diversity, equity, and inclusion.
6    (g) In lieu of credit for those courses listed in
7subsection (f) of this Section, credit may be earned for
8serving as a licensed instructor in an approved course of
9continuing education. The amount of credit earned for teaching
10a course shall be the amount of continuing education credit
11for which the course is approved for licensees taking the
12course.
13    (h) Credit hours may be earned for self-study programs
14approved by the Department.
15    (i) A managing broker or broker may earn credit for a
16specific continuing education course only once during the
17current term of the license.
18    (j) No more than 12 hours of continuing education credit
19may be taken in one calendar day.
20    (k) To promote the offering of a uniform and consistent
21course content, the Department may provide for the development
22of a single broker management course to be offered by all
23education providers who choose to offer the broker management
24continuing education course. The Department may contract for
25the development of the 12-hour broker management continuing
26education course with an outside vendor or consultant and, if

 

 

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1the course is developed in this manner, the Department or the
2outside consultant shall license the use of that course to all
3approved education providers who wish to provide the course.
4    (l) Except as specifically provided in this Act,
5continuing education credit hours may not be earned for
6completion of pre-license or post-license courses. The courses
7comprising the approved 45-hour post-license curriculum for
8broker licensees shall satisfy the continuing education
9requirement for the initial broker license term. The approved
1045-hour managing broker pre-license brokerage administration
11and management course shall satisfy the 12-hour broker
12management continuing education requirement for the initial
13managing broker license term.
14(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
15    (225 ILCS 454/10-10)
16    (Section scheduled to be repealed on January 1, 2030)
17    Sec. 10-10. Disclosure of compensation.
18    (a) A licensee must disclose to a client the sponsoring
19broker's compensation and policy, including the terms of
20compensation and any amounts offered with regard to
21cooperating with brokers who represent other parties in a
22transaction.
23    (b) A licensee must disclose to a client all sources of
24compensation related to the transaction received by the
25licensee from a third party.

 

 

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1    (c) If a licensee refers a client to a third party in which
2the licensee has greater than a 1% ownership interest or from
3which the licensee receives or may receive dividends or other
4profit sharing distributions, other than a publicly held or
5traded company, for the purpose of the client obtaining
6services related to the transaction, then the licensee shall
7disclose that fact to the client at the time of making the
8referral.
9    (d) If in any one transaction a sponsoring broker receives
10compensation from both the buyer and seller or lessee and
11lessor of real estate, the sponsoring broker shall disclose in
12writing to a client the fact that the compensation is being
13paid by both buyer and seller or lessee and lessor.
14    (e) Nothing in the Act shall prohibit the cooperation with
15or a payment of compensation to an individual domiciled in any
16other state or country who is licensed as a broker in that
17individual's his or her state or country of domicile or to a
18resident of a country that does not require a person to be
19licensed to act as a broker if the person complies with the
20laws of the country in which that person resides and practices
21there as a broker.
22(Source: P.A. 101-357, eff. 8-9-19.)
 
23    (225 ILCS 454/10-20)
24    (Section scheduled to be repealed on January 1, 2030)
25    Sec. 10-20. Sponsoring broker; employment agreement.

 

 

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1    (a) A licensee may perform activities as a licensee only
2for the licensee's his or her sponsoring broker. A licensee
3must have only one sponsoring broker at any one time.
4    (b) Every broker who employs licensees or has an
5independent contractor relationship with a licensee shall have
6a written employment or independent contractor agreement with
7each such licensee. The broker having this written employment
8or independent contractor agreement with the licensee must be
9that licensee's sponsoring broker.
10    (c) Every sponsoring broker must have a written employment
11or independent contractor agreement with each licensee the
12broker sponsors. The agreement shall address the employment or
13independent contractor relationship terms, including without
14limitation supervision, duties, compensation, and termination
15process.
16    (d) (Blank).
17    (d-5) If a written agreement provides for an independent
18contractor relationship that clearly states and establishes
19that relationship, the specific provisions of this Act shall
20control for licensee's conduct of brokerage activities.
21    (e) Notwithstanding the fact that a sponsoring broker has
22an employment or independent contractor agreement with a
23licensee, a sponsoring broker may pay compensation directly to
24a business entity solely owned by that licensee that has been
25formed for the purpose of receiving compensation earned by the
26licensee. A business entity that receives compensation from a

 

 

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1sponsoring broker as provided for in this subsection (e) shall
2not be required to be licensed under this Act and must either
3be owned solely by the licensee or by the licensee together
4with the licensee's spouse, but only if the spouse and
5licensee are both licensed and sponsored by the same
6sponsoring broker or the spouse is not also licensed.
7(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)
 
8    (225 ILCS 454/15-35)
9    (Section scheduled to be repealed on January 1, 2030)
10    Sec. 15-35. Agency relationship disclosure.
11    (a) A licensee acting as a designated agent shall advise a
12consumer in writing, no later than beginning to work as a
13designated agent on behalf of the consumer, of the following:
14        (1) That a designated agency relationship exists,
15    unless there is written agreement between the sponsoring
16    broker and the consumer providing for a different agency
17    relationship; and
18        (2) The name or names of the designated agent or
19    agents on the written disclosure, which must can be
20    included as part of in a brokerage agreement or be a
21    separate document, a copy of which is retained by the
22    sponsoring broker for the licensee and company records,
23    and a copy of which must be provided to the consumer or
24    client.
25    (b) The licensee representing the consumer shall discuss

 

 

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1with the consumer the sponsoring broker's compensation and
2policy, including the terms of compensation and any amounts
3offered with regard to cooperating with brokers who represent
4other parties in a transaction.
5    (c) A licensee shall disclose in writing to a customer
6that the licensee is not acting as the agent of the customer at
7a time intended to prevent disclosure of confidential
8information from a customer to a licensee, but in no event
9later than the preparation of an offer to purchase or lease
10real property.
11(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
12    (225 ILCS 454/15-50)
13    (Section scheduled to be repealed on January 1, 2030)
14    Sec. 15-50. Brokerage agreements; designated Designated
15agency.
16    (a) A sponsoring broker entering into a brokerage
17relationship an agreement with any person for the listing of
18property or for the purpose of representing any person in the
19buying, selling, exchanging, renting, or leasing of real
20estate shall set forth the terms of that relationship in a
21written brokerage agreement. The brokerage agreement shall
22specifically designate those licensees employed by or
23affiliated with the sponsoring broker who will be acting as
24legal agents of that person to the exclusion of all other
25licensees employed by or affiliated with the sponsoring

 

 

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1broker. A sponsoring broker entering into an agreement under
2the provisions of this Section shall not be considered to be
3acting for more than one party in a transaction if the
4licensees are specifically designated as legal agents of a
5person and are not representing more than one party in a
6transaction.
7    (a-5) Nothing in this Section prevents a client from
8seeking to enforce an oral agreement. The absence of a written
9agreement does not create an affirmative defense (i) to the
10existence, or lack thereof, of an agreement between the
11parties; or (ii) as to whether licensed activity was performed
12under this Act. This Section does not prevent a court from
13imposing legal or equitable remedies.
14    (b) A sponsoring broker designating affiliated licensees
15to act as agents of clients shall take ordinary and necessary
16care to protect confidential information disclosed by a client
17to the his or her designated agent.
18    (c) A designated agent may disclose to the designated
19agent's his or her sponsoring broker or persons specified by
20the sponsoring broker confidential information of a client for
21the purpose of seeking advice or assistance for the benefit of
22the client in regard to a possible transaction. Confidential
23information shall not be disclosed by the sponsoring broker or
24other specified representative of the sponsoring broker unless
25otherwise required by this Act or requested or permitted by
26the client who originally disclosed the confidential

 

 

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1information.
2(Source: P.A. 101-357, eff. 8-9-19.)
 
3    (225 ILCS 454/20-20)
4    (Section scheduled to be repealed on January 1, 2030)
5    Sec. 20-20. Nature of and grounds for discipline.
6    (a) The Department may refuse to issue or renew a license,
7may place on probation, suspend, or revoke any license,
8reprimand, or take any other disciplinary or non-disciplinary
9action as the Department may deem proper and impose a fine not
10to exceed $25,000 for each violation upon any licensee or
11applicant under this Act or any person who holds oneself out as
12an applicant or licensee or against a licensee in handling
13one's own property, whether held by deed, option, or
14otherwise, for any one or any combination of the following
15causes:
16        (1) Fraud or misrepresentation in applying for, or
17    procuring, a license under this Act or in connection with
18    applying for renewal of a license under this Act.
19        (2) The licensee's conviction of or plea of guilty or
20    plea of nolo contendere, as set forth in subsection (e) of
21    Section 5-25, to: (A) a felony or misdemeanor in this
22    State or any other jurisdiction; (B) the entry of an
23    administrative sanction by a government agency in this
24    State or any other jurisdiction; or (C) any conviction of
25    or plea of guilty or plea of nolo contendere to a any crime

 

 

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1    that subjects the licensee to compliance with the
2    requirements of the Sex Offender Registration Act.
3        (3) Inability to practice the profession with
4    reasonable judgment, skill, or safety as a result of a
5    physical illness, mental illness, or disability.
6        (4) Practice under this Act as a licensee in a retail
7    sales establishment from an office, desk, or space that is
8    not separated from the main retail business and located
9    within a separate and distinct area within the
10    establishment.
11        (5) Having been disciplined by another state, the
12    District of Columbia, a territory, a foreign nation, or a
13    governmental agency authorized to impose discipline if at
14    least one of the grounds for that discipline is the same as
15    or the equivalent of one of the grounds for which a
16    licensee may be disciplined under this Act. A certified
17    copy of the record of the action by the other state or
18    jurisdiction shall be prima facie evidence thereof.
19        (6) Engaging in the practice of real estate brokerage
20    without a license or after the licensee's license or
21    temporary permit was expired or while the license was
22    inactive, revoked, or suspended.
23        (7) Cheating on or attempting to subvert the Real
24    Estate License Exam or a continuing education course or
25    examination.
26        (8) Aiding or abetting an applicant to subvert or

 

 

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1    cheat on the Real Estate License Exam or continuing
2    education exam administered pursuant to this Act.
3        (9) Advertising that is inaccurate, misleading, or
4    contrary to the provisions of the Act.
5        (10) Making any substantial misrepresentation or
6    untruthful advertising.
7        (11) Making any false promises of a character likely
8    to influence, persuade, or induce.
9        (12) Pursuing a continued and flagrant course of
10    misrepresentation or the making of false promises through
11    licensees, employees, agents, advertising, or otherwise.
12        (13) Any misleading or untruthful advertising, or
13    using any trade name or insignia of membership in any real
14    estate organization of which the licensee is not a member.
15        (14) Acting for more than one party in a transaction
16    without providing written notice to all parties for whom
17    the licensee acts.
18        (15) Representing or attempting to represent, or
19    performing licensed activities for, a broker other than
20    the sponsoring broker.
21        (16) Failure to account for or to remit any moneys or
22    documents coming into the licensee's possession that
23    belong to others.
24        (17) 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

 

 

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1    entrusted to a licensee while acting as a broker, escrow
2    agent, or temporary custodian of the funds of others or
3    failure to maintain all escrow moneys on deposit in the
4    account until the transactions are consummated or
5    terminated, except to the extent that the moneys, or any
6    part thereof, shall be:
7            (A) disbursed prior to the consummation or
8        termination (i) in accordance with the written
9        direction of the principals to the transaction or
10        their duly authorized agents, (ii) in accordance with
11        directions providing for the release, payment, or
12        distribution of escrow moneys contained in any written
13        contract signed by the principals to the transaction
14        or their duly authorized agents, or (iii) pursuant to
15        an order of a court of competent jurisdiction; or
16            (B) deemed abandoned and transferred to the Office
17        of the State Treasurer to be handled as unclaimed
18        property pursuant to the Revised Uniform Unclaimed
19        Property Act. Escrow moneys may be deemed abandoned
20        under this subparagraph (B) only: (i) in the absence
21        of disbursement under subparagraph (A); (ii) in the
22        absence of notice of the filing of any claim in a court
23        of competent jurisdiction; and (iii) if 6 months have
24        elapsed after the receipt of a written demand for the
25        escrow moneys from one of the principals to the
26        transaction or the principal's duly authorized agent.

 

 

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1    The account shall be noninterest bearing, unless the
2    character of the deposit is such that payment of interest
3    thereon is otherwise required by law or unless the
4    principals to the transaction specifically require, in
5    writing, that the deposit be placed in an interest-bearing
6    account.
7        (18) Failure to make available to the Department all
8    escrow records and related documents maintained in
9    connection with the practice of real estate within 24
10    hours of a request for those documents by Department
11    personnel.
12        (19) Failing to furnish copies upon request of
13    documents relating to a real estate transaction to a party
14    who has executed that document.
15        (20) Failure of a sponsoring broker or licensee to
16    timely provide sponsorship or termination of sponsorship
17    information to the Department.
18        (21) Engaging in dishonorable, unethical, or
19    unprofessional conduct of a character likely to deceive,
20    defraud, or harm the public, including, but not limited
21    to, conduct set forth in rules adopted by the Department.
22        (22) Commingling the money or property of others with
23    the licensee's own money or property.
24        (23) Employing any person on a purely temporary or
25    single deal basis as a means of evading the law regarding
26    payment of commission to nonlicensees on some contemplated

 

 

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1    transactions.
2        (24) Permitting the use of one's license as a broker
3    to enable a residential leasing agent or unlicensed person
4    to operate a real estate business without actual
5    participation therein and control thereof by the broker.
6        (25) Any other conduct, whether of the same or a
7    different character from that specified in this Section,
8    that constitutes dishonest dealing.
9        (25.5) Failing to have a written brokerage agreement
10    between the sponsoring broker and a client for whom the
11    designated agent is working.
12        (26) Displaying a "for rent" or "for sale" sign on any
13    property without the written consent of an owner or the
14    owner's duly authorized agent or advertising by any means
15    that any property is for sale or for rent without the
16    written consent of the owner or the owner's authorized
17    agent.
18        (27) Failing to provide information requested by the
19    Department, or otherwise respond to that request, within
20    30 days of the request.
21        (28) Advertising by means of a blind advertisement,
22    except as otherwise permitted in Section 10-30 of this
23    Act.
24        (29) A licensee under this Act or an unlicensed
25    individual offering guaranteed sales plans, as defined in
26    Section 10-50, except to the extent set forth in Section

 

 

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1    10-50.
2        (30) Influencing or attempting to influence, by any
3    words or acts, a prospective seller, purchaser, occupant,
4    landlord, or tenant of real estate, in connection with
5    viewing, buying, or leasing real estate, so as to promote
6    or tend to promote the continuance or maintenance of
7    racially and religiously segregated housing or so as to
8    retard, obstruct, or discourage racially integrated
9    housing on or in any street, block, neighborhood, or
10    community.
11        (31) Engaging in any act that constitutes a violation
12    of any provision of Article 3 of the Illinois Human Rights
13    Act, whether or not a complaint has been filed with or
14    adjudicated by the Human Rights Commission.
15        (32) Inducing any party to a contract of sale or lease
16    or brokerage agreement to break the contract of sale or
17    lease or brokerage agreement for the purpose of
18    substituting, in lieu thereof, a new contract for sale or
19    lease or brokerage agreement with a third party.
20        (33) Negotiating a sale, exchange, or lease of real
21    estate directly with any person if the licensee knows that
22    the person has an exclusive brokerage agreement with
23    another broker, unless specifically authorized by that
24    broker.
25        (34) When a licensee is also an attorney, acting as
26    the attorney for either the buyer or the seller in the same

 

 

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1    transaction in which the licensee is acting or has acted
2    as a managing broker or broker.
3        (35) Advertising or offering merchandise or services
4    as free if any conditions or obligations necessary for
5    receiving the merchandise or services are not disclosed in
6    the same advertisement or offer. These conditions or
7    obligations include without limitation the requirement
8    that the recipient attend a promotional activity or visit
9    a real estate site. As used in this subdivision (35),
10    "free" includes terms such as "award", "prize", "no
11    charge", "free of charge", "without charge", and similar
12    words or phrases that reasonably lead a person to believe
13    that one may receive or has been selected to receive
14    something of value, without any conditions or obligations
15    on the part of the recipient.
16        (36) (Blank).
17        (37) Violating the terms of any order issued by the
18    Department.
19        (38) Paying or failing to disclose compensation in
20    violation of Article 10 of this Act.
21        (39) Requiring a party to a transaction who is not a
22    client of the licensee to allow the licensee to retain a
23    portion of the escrow moneys for payment of the licensee's
24    commission or expenses as a condition for release of the
25    escrow moneys to that party.
26        (40) Disregarding or violating any provision of this

 

 

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1    Act or the published rules adopted by the Department to
2    enforce this Act or aiding or abetting any individual,
3    foreign or domestic partnership, registered limited
4    liability partnership, limited liability company,
5    corporation, or other business entity in disregarding any
6    provision of this Act or the published rules adopted by
7    the Department to enforce this Act.
8        (41) Failing to provide the minimum services required
9    by Section 15-75 of this Act when acting under an
10    exclusive brokerage agreement.
11        (42) Habitual or excessive use of or addiction to
12    alcohol, narcotics, stimulants, or any other chemical
13    agent or drug that results in a licensee's managing
14    broker, broker, or residential leasing agent's inability
15    to practice with reasonable skill or safety, which may
16    result in significant harm to the public.
17        (43) Enabling, aiding, or abetting an auctioneer, as
18    defined in the Auction License Act, to conduct a real
19    estate auction in a manner that is in violation of this
20    Act.
21        (44) Permitting any residential leasing agent or
22    temporary residential leasing agent permit holder to
23    engage in activities that require a broker's or managing
24    broker's license.
25        (45) Failing to notify the Department, within 30 days
26    after the occurrence, of the information required in

 

 

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1    subsection (e) of Section 5-25.
2        (46) A designated managing broker's failure to provide
3    an appropriate written company policy or failure to
4    perform any of the duties set forth in Section 10-55.
5        (47) Filing liens or recording written instruments in
6    any county in the State on noncommercial, residential real
7    property that relate to a broker's compensation for
8    licensed activity under the Act.
9    (b) The Department may refuse to issue or renew or may
10suspend the license of any person who fails to file a return,
11pay the tax, penalty or interest shown in a filed return, or
12pay any final assessment of tax, penalty, or interest, as
13required by any tax Act administered by the Department of
14Revenue, until such time as the requirements of that tax Act
15are satisfied in accordance with subsection (g) of Section
162105-15 of the Department of Professional Regulation Law of
17the Civil Administrative Code of Illinois.
18    (c) (Blank).
19    (d) In cases where the Department of Healthcare and Family
20Services (formerly Department of Public Aid) has previously
21determined that a licensee or a potential licensee is more
22than 30 days delinquent in the payment of child support and has
23subsequently certified the delinquency to the Department may
24refuse to issue or renew or may revoke or suspend that person's
25license or may take other disciplinary action against that
26person based solely upon the certification of delinquency made

 

 

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1by the Department of Healthcare and Family Services in
2accordance with item (5) of subsection (a) of Section 2105-15
3of the Department of Professional Regulation Law of the Civil
4Administrative Code of Illinois.
5    (e) (Blank).
6(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
 
7    (225 ILCS 454/20-20.1)
8    (Section scheduled to be repealed on January 1, 2030)
9    Sec. 20-20.1. Citations.
10    (a) The Department may adopt rules to permit the issuance
11of citations to any licensee for failure to comply with the
12continuing education and post-license education requirements
13set forth in this Act or as adopted by rule. The citation shall
14be issued to the licensee, and a copy shall be sent to the
15licensee's designated managing broker and sponsoring broker.
16The citation shall contain the licensee's name and address,
17the licensee's license number, the number of required hours of
18continuing education or post-license education that have not
19been successfully completed by the licensee's renewal
20deadline, and the penalty imposed, which shall not exceed
21$2,000. The issuance of any such citation shall not excuse the
22licensee from completing all continuing education or
23post-license education required for that term of licensure.
24    (b) Service of a citation shall be made by in person,
25electronically, or by mail to the licensee at the licensee's

 

 

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1address of record or email address of record, and must clearly
2state that if the cited licensee wishes to dispute the
3citation, the cited licensee may make a written request,
4within 30 days after the citation is served, for a hearing
5before the Department. If the cited licensee does not request
6a hearing within 30 days after the citation is served, then the
7citation shall become a final, non-disciplinary order shall be
8entered, and any fine imposed is due and payable within 30 60
9days after the entry of that final order. If the cited licensee
10requests a hearing within 30 days after the citation is
11served, the Department shall afford the cited licensee a
12hearing conducted in the same manner as a hearing provided for
13in this Act for any violation of this Act and shall determine
14whether the cited licensee committed the violation as charged
15and whether the fine as levied is warranted. If the violation
16is found, any fine shall constitute non-public discipline and
17be due and payable within 30 days after the order of the
18Secretary, which shall constitute a final order of the
19Department. No change in license status may be made by the
20Department until such time as a final order of the Department
21has been issued.
22    (c) Payment of a fine that has been assessed pursuant to
23this Section shall not constitute disciplinary action
24reportable on the Department's website or elsewhere unless a
25licensee has previously received 2 or more citations and has
26been assessed 2 or more fines.

 

 

SB3740- 59 -LRB103 36856 RTM 66968 b

1    (d) Nothing in this Section shall prohibit or limit the
2Department from taking further action pursuant to this Act and
3rules for additional, repeated, or continuing violations.
4(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
 
5    (225 ILCS 454/20-50)
6    (Section scheduled to be repealed on January 1, 2030)
7    Sec. 20-50. Illegal discrimination. When there has been
8an adjudication in a civil or criminal proceeding that a
9licensee has illegally discriminated while engaged in any
10activity for which a license is required under this Act, the
11Department, following notice to the licensee and a hearing in
12accordance with the provisions of Section 20-60, and upon the
13recommendation of the Board as to the nature and extent of the
14suspension or revocation, shall, in accordance with the
15provisions of Section 20-64, suspend or revoke the license of
16that licensee in a timely manner, unless the adjudication is
17in the appeal process. The finding or judgment of the civil or
18criminal proceeding is a matter of record; the merits of which
19shall not be challenged in a request for a hearing by the
20licensee. When there has been an order in an administrative
21proceeding finding that a licensee has illegally discriminated
22while engaged in any activity for which a license is required
23under this Act, the Department, following notice to the
24licensee and a hearing in accordance with the provisions of
25Section 20-60, and upon the recommendation of the Board as to

 

 

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1the nature and extent of the discipline, shall, in accordance
2with the provisions of Section 20-64, take one or more of the
3disciplinary actions provided for in Section 20-20 of this Act
4in a timely manner, unless the administrative order is in the
5appeal process. The finding of the administrative order is a
6matter of record; the merits of which shall not be challenged
7in a request for a hearing by the licensee.
8(Source: P.A. 96-856, eff. 12-31-09.)
 
9    (225 ILCS 454/20-82)
10    (Section scheduled to be repealed on January 1, 2030)
11    Sec. 20-82. Fines and penalties; Real Estate License
12Administration Recovery Fund; Real Estate Recovery Fund. All
13fines and penalties collected under Section 20-20, Section
1420-20.1, and otherwise under this Act by the Department shall
15be deposited in the Real Estate License Administration
16Recovery Fund and may be transferred to the Real Estate
17Recovery Fund in accordance with the authority set forth in
18Section 25-35 of this Act.
19(Source: P.A. 96-856, eff. 12-31-09.)
 
20    (225 ILCS 454/25-25)
21    (Section scheduled to be repealed on January 1, 2030)
22    Sec. 25-25. Real Estate Research and Education Fund. A
23special fund to be known as the Real Estate Research and
24Education Fund is created and shall be held in trust in the

 

 

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1State treasury. Annually, on September 15th, the State
2Treasurer shall cause a transfer of $125,000 to the Real
3Estate Research and Education Fund from the Real Estate
4License Administration Fund. The Real Estate Research and
5Education Fund shall be administered by the Department. Money
6deposited in the Real Estate Research and Education Fund may
7be used for research and for education at state institutions
8of higher education or other organizations for research and
9for education to further the advancement of education in the
10real estate industry or can be used by the Department for
11expenses related to the education of licensees. Of the
12$125,000 annually transferred into the Real Estate Research
13and Education Fund, $15,000 shall be used to fund a
14scholarship program for persons of historically marginalized
15classes and minority racial origin who wish to pursue a course
16of study in the field of real estate. For the purposes of this
17Section: ,
18    "Course course of study" means a course or courses that
19are part of a program of courses in the field of real estate
20designed to further an individual's knowledge or expertise in
21the field of real estate. These courses shall include, without
22limitation, courses that a broker licensed under this Act must
23complete to qualify for a managing broker's license, courses
24required to obtain the Graduate Realtors Institute
25designation, and any other courses or programs offered by
26accredited colleges, universities, or other institutions of

 

 

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1higher education in Illinois.
2    "Historically marginalized classes" means a person of a
3race or national origin that is Native American or Alaska
4Native, Asian, Black or African American, Hispanic or Latino,
5or Native Hawaiian or Pacific Islander, or is a member of a
6protected class under the Illinois Human Rights Act within the
7context of affirmative action.
8    The scholarship program shall be administered by the
9Department or its designee. Moneys in the Real Estate Research
10and Education Fund may be invested and reinvested in the same
11manner as funds in the Real Estate Recovery Fund and all
12earnings, interest, and dividends received from such
13investments shall be deposited in the Real Estate Research and
14Education Fund and may be used for the same purposes as moneys
15transferred to the Real Estate Research and Education Fund.
16Moneys in the Real Estate Research and Education Fund may be
17transferred to the Professions Indirect Cost Fund as
18authorized under Section 2105-300 of the Department of
19Professional Regulation Law of the Civil Administrative Code
20of Illinois.
21(Source: P.A. 103-236, eff. 1-1-24.)
 
22    (225 ILCS 454/25-30)
23    (Section scheduled to be repealed on January 1, 2030)
24    Sec. 25-30. Real Estate License Administration Fund;
25audit. A special fund to be known as the Real Estate License

 

 

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1Administration Fund is created in the State Treasury. All
2fines, penalties, and fees received by the Department under
3this Act shall be deposited in the Real Estate License
4Administration Fund. The moneys deposited in the Real Estate
5License Administration Fund shall be appropriated to the
6Department for expenses of the Department and the Board in the
7administration of this Act, including, but not limited to, the
8maintenance and operation of the Real Estate Recovery Fund,
9and for the administration of any Act administered by the
10Department providing revenue to this Fund. Moneys in the Real
11Estate License Administration Fund may be invested and
12reinvested in the same manner as funds in the Real Estate
13Recovery Fund. All earnings received from such investment
14shall be deposited in the Real Estate License Administration
15Fund and may be used for the same purposes as fines, penalties,
16and fees deposited in the Real Estate License Administration
17Fund. Moneys in the Real Estate License Administration Fund
18may be transferred to the Professions Indirect Cost Fund as
19authorized under Section 2105-300 of the Department of
20Professional Regulation Law of the Civil Administrative Code
21of Illinois and to the Real Estate Recovery Fund as authorized
22by Section 25-35 of this Act. Upon the completion of any audit
23of the Department, as prescribed by the Illinois State
24Auditing Act, which includes an audit of the Real Estate
25License Administration Fund, the Department shall make the
26audit open to inspection by any interested person.

 

 

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1(Source: P.A. 96-856, eff. 12-31-09.)
 
2    (225 ILCS 454/25-35)
3    (Section scheduled to be repealed on January 1, 2030)
4    Sec. 25-35. Real Estate Recovery Fund. A special fund to
5be known as the Real Estate Recovery Fund is created in the
6State Treasury. All fines and penalties received by the
7Department pursuant to Article 20 of this Act shall be
8deposited into the State Treasury and held in the Real Estate
9Recovery Fund. The money in the Real Estate Recovery Fund
10shall be used by the Department exclusively for carrying out
11the purposes established by this Act. If, at any time, the
12balance remaining in the Real Estate Recovery Fund is less
13than $900,000 $750,000, the State Treasurer shall cause a
14transfer of moneys to the Real Estate Recovery Fund from the
15Real Estate License Administration Fund in an amount necessary
16to establish a balance of $1,000,000 $800,000 in the Real
17Estate Recovery Fund. If the balance in the Real Estate
18Recovery Fund exceeds $1,000,000, any excess funds over
19$1,000,000 shall be transferred to the Real Estate License
20Administration Fund. These funds may be invested and
21reinvested in the same manner as authorized for pension funds
22in Article 1 of the Illinois Pension Code. All earnings,
23interest, and dividends received from investment of funds in
24the Real Estate Recovery Fund shall be deposited into the Real
25Estate License Administration Fund and shall be used for the

 

 

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1same purposes as other moneys deposited in the Real Estate
2License Administration Fund.
3(Source: P.A. 96-856, eff. 12-31-09.)
 
4    (225 ILCS 454/30-5)
5    (Section scheduled to be repealed on January 1, 2030)
6    Sec. 30-5. Licensing of real estate education providers
7and instructors.
8    (a) No person shall operate an education provider entity
9without possessing a valid and active license issued by the
10Department. Only education providers in possession of a valid
11education provider license may provide real estate
12pre-license, post-license, or continuing education courses
13that satisfy the requirements of this Act. Every person that
14desires to obtain an education provider license shall make
15application to the Department in a manner prescribed by the
16Department and pay the fee prescribed by rule. In addition to
17any other information required to be contained in the
18application as prescribed by rule, every application for an
19original or renewed license shall include the applicant's
20Social Security number or tax identification number.
21    (b) (Blank).
22    (c) (Blank).
23    (d) (Blank).
24    (e) (Blank).
25    (f) To qualify for an education provider license, an

 

 

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1applicant must demonstrate the following:
2        (1) a sound financial base for establishing,
3    promoting, and delivering the necessary courses; budget
4    planning for the school's courses should be clearly
5    projected;
6        (2) a sufficient number of qualified, licensed
7    instructors as provided by rule;
8        (3) adequate support personnel to assist with
9    administrative matters and technical assistance;
10        (4) maintenance and availability of records of
11    participation for licensees;
12        (5) the ability to provide each participant who
13    successfully completes an approved program with a
14    certificate of completion signed by the administrator of a
15    licensed education provider in a manner prescribed by the
16    Department; the certificate of completion shall include
17    the program that was completed, the completion date, the
18    course number, and the student's and education provider's
19    license numbers;
20        (6) a written policy dealing with procedures for the
21    management of grievances and fee refunds;
22        (7) lesson plans and examinations, if applicable, for
23    each course;
24        (8) a 75% passing grade for successful completion of
25    any continuing education course or pre-license or
26    post-license examination, if required;

 

 

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1        (9) the ability to identify and use instructors who
2    will teach in a planned program; instructor selections
3    must demonstrate:
4            (A) appropriate credentials;
5            (B) competence as a teacher;
6            (C) knowledge of content area; and
7            (D) qualification by experience.
8    Unless otherwise provided for in this Section, the
9education provider shall provide a proctor or an electronic
10means of proctoring if a proctored examination is required for
11each examination; the education provider shall be responsible
12for the conduct of the proctor; the duties and
13responsibilities of a proctor shall be established by rule.
14    Unless otherwise provided for in this Section, the
15education provider shall must provide for closed book
16examinations for each course when required unless the
17Department, upon the recommendation of the Board, excuses this
18requirement based on the complexity of the course material.
19    (g) Advertising and promotion of education activities must
20be carried out in a responsible fashion clearly showing the
21educational objectives of the activity, the nature of the
22audience that may benefit from the activity, the cost of the
23activity to the participant and the items covered by the cost,
24the amount of credit that can be earned, and the credentials of
25the faculty.
26    (h) (Blank). The Department may, or upon request of the

 

 

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1Board shall, after notice, cause an education provider to
2attend an informal conference before the Board for failure to
3comply with any requirement for licensure or for failure to
4comply with any provision of this Act or the rules for the
5administration of this Act. The Board shall make a
6recommendation to the Department as a result of its findings
7at the conclusion of any such informal conference.
8    (i) All education providers shall maintain these minimum
9criteria and pay the required fee in order to retain their
10education provider license.
11    (j) The Department may adopt any administrative rule
12consistent with the language and intent of this Act that may be
13necessary for the implementation and enforcement of this
14Section and to regulate the establishment and operation of
15virtual offices that do not have a fixed location.
16(Source: P.A. 100-188, eff. 1-1-18; 100-831, eff. 1-1-19;
17101-357, eff. 8-9-19.)
 
18    (225 ILCS 454/30-15)
19    (Section scheduled to be repealed on January 1, 2030)
20    Sec. 30-15. Licensing of education providers; approval of
21courses.
22    (a) (Blank).
23    (b) (Blank).
24    (c) (Blank).
25    (d) (Blank).

 

 

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1    (e) (Blank).
2    (f) All education providers shall submit, at the time of
3initial application and with each license renewal, a list of
4courses with course materials that comply with the course
5requirements in this Act to be offered by the education
6provider. The Department may establish an online mechanism by
7which education providers may submit for approval by the
8Department upon the recommendation of the Board or its
9designee pre-license, post-license, or continuing education
10courses that are submitted after the time of the education
11provider's initial license application or renewal. The
12Department shall provide to each education provider a
13certificate for each approved pre-license, post-license, or
14continuing education course. All pre-license, post-license, or
15continuing education courses shall be valid for the period
16coinciding with the term of license of the education provider.
17However, in no case shall a course continue to be valid if it
18does not, at all times, meet all of the requirements of the
19core curriculum established by this Act and the Board, as
20modified from time to time in accordance with this Act. All
21education providers shall provide a copy of the certificate of
22the pre-license, post-license, or continuing education course
23within the course materials given to each student or shall
24display a copy of the certificate of the pre-license,
25post-license, or continuing education course in a conspicuous
26place at the location of the class.

 

 

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1    (g) Each education provider shall provide to the
2Department a report in a frequency and format determined by
3the Department, with information concerning students who
4successfully completed all approved pre-license, post-license,
5or continuing education courses offered by the education
6provider.
7    (h) The Department, upon the recommendation of the Board,
8may temporarily suspend a licensed education provider's
9approved courses without hearing and refuse to accept
10successful completion of or participation in any of these
11pre-license, post-license, or continuing education courses for
12education credit from that education provider upon the failure
13of that education provider to comply with the provisions of
14this Act or the rules for the administration of this Act, until
15such time as the Department receives satisfactory assurance of
16compliance. The Department shall notify the education provider
17of the noncompliance and may initiate disciplinary proceedings
18pursuant to this Act. The Department may refuse to issue,
19suspend, revoke, or otherwise discipline the license of an
20education provider or may withdraw approval of a pre-license,
21post-license, or continuing education course for good cause.
22Failure to comply with the requirements of this Section or any
23other requirements established by rule shall be deemed to be
24good cause. Disciplinary proceedings shall be conducted by the
25Department Board in the same manner as other disciplinary
26proceedings under this Act.

 

 

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1    (i) Pre-license, post-license, and continuing education
2courses, whether submitted for approval at the time of an
3education provider's initial application for licensure or
4otherwise, must meet the following minimum course
5requirements:
6        (1) Continuing education courses shall be required to
7    be at least one hour in duration. For each one hour of
8    course time, there shall be a minimum of 50 minutes of
9    instruction.
10        (2) All core curriculum courses shall be provided only
11    in the classroom or through a live, interactive webinar,
12    or in an online distance education format.
13        (3) Courses provided through a live, interactive
14    webinar shall require all participants to demonstrate
15    their attendance in and attention to the course by
16    answering or responding to at least one polling question
17    per 50 minutes of course instruction.
18        (4) All participants in courses provided in an online
19    distance education format shall demonstrate proficiency
20    with the subject matter of the course through verifiable
21    responses to questions included in the course content.
22        (5) Credit for courses completed in a classroom or
23    through a live, interactive webinar, or in an online
24    distance education format shall not require an
25    examination.
26        (6) Credit for courses provided through

 

 

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1    correspondence, or by home study, shall require the
2    passage of an in-person, proctored examination.
3    (j) The Department is authorized to engage a third party
4as the Board's designee to perform the functions specifically
5provided for in subsection (f) of this Section, namely that of
6administering the online system for receipt, review, and
7approval or denial of new courses.
8    (k) The Department may adopt any administrative rule
9consistent with the language and intent of this Act that may be
10necessary for the implementation and enforcement of this
11Section.
12(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
13    (225 ILCS 454/30-25)
14    (Section scheduled to be repealed on January 1, 2030)
15    Sec. 30-25. Licensing of education provider instructors.
16    (a) No person shall act as either a pre-license or
17continuing education instructor without possessing a valid
18pre-license or continuing education instructor license and
19satisfying any other qualification criteria adopted by the
20Department by rule.
21    (a-5) Each person with a valid pre-license instructor
22license may teach pre-license, post-license, continuing
23education core curriculum, continuing education elective
24curriculum, or broker management education courses if they
25meet specific criteria adopted by the Department by rule.

 

 

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1Those persons who have not met the criteria or who only possess
2a valid continuing education instructor license shall only
3teach continuing education elective curriculum courses. Any
4person with a valid continuing education instructor license
5who wishes to teach continuing education core curriculum or
6broker management continuing education courses must obtain a
7valid pre-license instructor license.
8    (b) Every person who desires to obtain an education
9provider instructor's license shall attend and successfully
10complete a one-day instructor development workshop, as
11approved by the Department. However, pre-license instructors
12who have complied with subsection (b) of this Section 30-25
13shall not be required to complete the instructor workshop in
14order to teach continuing education elective curriculum
15courses.
16    (b-5) The term of licensure for a pre-license or
17continuing education instructor shall be 2 years, with renewal
18dates adopted by rule. Every person who desires to obtain a
19pre-license or continuing education instructor license shall
20make application to the Department in a manner prescribed by
21the Department, accompanied by the fee adopted by rule. In
22addition to any other information required to be contained in
23the application, every application for an original license
24shall include the applicant's Social Security number or
25federal individual taxpayer identification number, which shall
26be retained in the agency's records pertaining to the license.

 

 

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1As soon as practical, the Department shall assign a customer's
2identification number to each applicant for a license.
3    Every application for a renewal or restored license shall
4require the applicant's customer identification number.
5    The Department shall issue a pre-license or continuing
6education instructor license to applicants who meet
7qualification criteria established by this Act or rule.
8    (c) The Department may refuse to issue, suspend, revoke,
9or otherwise discipline a pre-license or continuing education
10instructor for good cause. Disciplinary proceedings shall be
11conducted by the Department Board in the same manner as other
12disciplinary proceedings under this Act. All pre-license
13instructors must teach at least one pre-license or continuing
14education core curriculum course within the period of
15licensure as a requirement for renewal of the instructor's
16license. All continuing education instructors must teach at
17least one course within the period of licensure or take an
18instructor training program approved by the Department in lieu
19thereof as a requirement for renewal of the instructor's
20license.
21    (d) Each course transcript submitted by an education
22provider to the Department shall include the name and license
23number of the pre-license or continuing education instructor
24for the course.
25    (e) Licensed education provider instructors may teach for
26more than one licensed education provider.

 

 

SB3740- 75 -LRB103 36856 RTM 66968 b

1    (f) The Department may adopt any administrative rule
2consistent with the language and intent of this Act that may be
3necessary for the implementation and enforcement of this
4Section.
5(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
6    Section 99. Effective date. This Act takes effect January
71, 2025, except that this Section, Section 5, and the changes
8to Sections 20-82, 25-30, and 25-35 of the Real Estate License
9Act of 2000 take effect upon becoming law.

 

 

SB3740- 76 -LRB103 36856 RTM 66968 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/5.1015 new
4    225 ILCS 454/1-10
5    225 ILCS 454/5-20
6    225 ILCS 454/5-25
7    225 ILCS 454/5-28
8    225 ILCS 454/5-35
9    225 ILCS 454/5-45
10    225 ILCS 454/5-60
11    225 ILCS 454/5-60.1 new
12    225 ILCS 454/5-60.5 new
13    225 ILCS 454/5-70
14    225 ILCS 454/10-10
15    225 ILCS 454/10-20
16    225 ILCS 454/15-35
17    225 ILCS 454/15-50
18    225 ILCS 454/20-20
19    225 ILCS 454/20-20.1
20    225 ILCS 454/20-50
21    225 ILCS 454/20-82
22    225 ILCS 454/25-25
23    225 ILCS 454/25-30
24    225 ILCS 454/25-35
25    225 ILCS 454/30-5

 

 

SB3740- 77 -LRB103 36856 RTM 66968 b

1    225 ILCS 454/30-15
2    225 ILCS 454/30-25