95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0571

 

Introduced 2/8/2007, by Sen. William R. Haine

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Regulatory Sunset Act to change the repeal date of the Real Estate License Act of 2000 from January 1, 2010 to January 1, 2017. Amends the Real Estate License Act of 2000. Replaces references to "OBRE" with "Department of Professional Regulation" and references to "Commissioner" with "Secretary of Financial and Professional Regulation" throughout the Act. Adds provisions concerning an applicant's social security number or tax identification number; the application and requirements for licensure as a leasing agent; the requirements for licensure as a salesperson; the requirements for licensure as a broker; good moral character; change of address; injunctions, criminal offenses, and cease and desist orders; and criminal violations. Makes changes in provisions concerning definitions; exemptions from the licensure requirements; licensure examination; sponsor cards and associations with new brokers; expiration and renewal periods; fees; continuing education requirements; disciplinary actions; the Real Estate Administration and Disciplinary Board and its duties; the duties of the Real Estate Coordinator; the Advisory Council and its powers and duties; the licensure of continuing education schools and approval of courses; and the licensure of continuing education instructors Repeals Sections concerning the application for leasing agent licensure; the application for and issuance of broker or salesperson licensure; the education requirements for original broker or salesperson licensure; the expiration and renewal of broker or salesperson licensure; penalties and injunctions; and actions to enjoin. Makes other changes. Effective immediately.


LRB095 09919 RAS 30130 b

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB0571 LRB095 09919 RAS 30130 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Regulatory Sunset Act is amended by changing
5 Sections 4.20 and 4.27 as follows:
 
6     (5 ILCS 80/4.20)
7     Sec. 4.20. Acts repealed on January 1, 2010. The following
8 Acts are repealed on January 1, 2010:
9     The Auction License Act.
10     The Illinois Architecture Practice Act of 1989.
11     The Illinois Landscape Architecture Act of 1989.
12     The Illinois Professional Land Surveyor Act of 1989.
13     The Land Sales Registration Act of 1999.
14     The Orthotics, Prosthetics, and Pedorthics Practice Act.
15     The Perfusionist Practice Act.
16     The Professional Engineering Practice Act of 1989.
17     The Real Estate License Act of 2000.
18     The Structural Engineering Practice Act of 1989.
19 (Source: P.A. 91-91, eff. 7-9-99; 91-92, eff. 7-9-99; 91-132,
20 eff. 7-16-99; 91-133, eff. 7-16-99; 91-245, eff. 12-31-99;
21 91-255, eff. 12-30-99; 91-338, eff. 12-30-99; 91-580, eff.
22 1-1-00; 91-590, eff. 1-1-00; 91-603, eff. 1-1-00; 92-16, eff.
23 6-28-01.)
 

 

 

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1     (5 ILCS 80/4.27)
2     Sec. 4.27. Acts Act repealed on January 1, 2017. The
3 following Acts are Act is repealed on January 1, 2017:
4     The Illinois Optometric Practice Act of 1987.
5     The Clinical Psychologist Licensing Act.
6     The Boiler and Pressure Vessel Repairer Regulation Act.
7     The Real Estate License Act of 2000.
8 (Source: P.A. 94-787, eff. 5-19-06; 94-870, eff. 6-16-06;
9 94-956, eff. 6-27-06; revised 8-3-06.)
 
10     Section 10. The Real Estate License Act of 2000 is amended
11 by changing Sections 1-10, 5-5, 5-10, 5-15, 5-20, 5-35, 5-40,
12 5-45, 5-50, 5-60, 5-65, 5-70, 5-80, 5-85, 10-5, 15-65, 20-5,
13 20-10, 20-20, 20-25, 20-30, 20-35, 20-40, 20-45, 20-50, 20-60,
14 20-65, 20-75, 20-85, 20-90, 20-95, 20-100, 20-110, 20-115,
15 25-5, 25-10, 25-13, 25-14, 25-15, 25-20, 25-25, 25-30, 25-35,
16 25-37, 30-5, 30-10, 30-15, 30-25, and 35-5 and by adding
17 Sections 5-6, 5-7, 5-26, 5-27, 5-28, 5-41, 20-21 and 20-22 and
18 as follows:
 
19     (225 ILCS 454/1-10)
20     (Section scheduled to be repealed on January 1, 2010)
21     Sec. 1-10. Definitions. In this Act, unless the context
22 otherwise requires:
23     "Act" means the Real Estate License Act of 2000.

 

 

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1     "Address of Record" shall be the designated address
2 recorded by the Department in the applicant's or licensee's
3 application file or license file as maintained by the
4 Department's licensure maintenance unit. It is the duty of the
5 applicant or licensee to inform the Department of any change of
6 address, and such changes must be made either through the
7 Department's website or by contacting the Department's
8 licensure maintenance unit.
9     "Advisory Council" means the Real Estate Education
10 Advisory Council created under Section 30-10 of this Act.
11     "Agency" means a relationship in which a real estate broker
12 or licensee, whether directly or through an affiliated
13 licensee, represents a consumer by the consumer's consent,
14 whether express or implied, in a real property transaction.
15     "Applicant" means any person, as defined in this Section,
16 who applies to the Department OBRE for a valid license as a
17 real estate broker, real estate salesperson, or leasing agent.
18     "Blind advertisement" means any real estate advertisement
19 that does not include the sponsoring broker's business name and
20 that is used by any licensee regarding the sale or lease of
21 real estate, including his or her own, licensed activities, or
22 the hiring of any licensee under this Act. The broker's
23 business name in the case of a franchise shall include the
24 franchise affiliation as well as the name of the individual
25 firm.
26     "Board" means the Real Estate Administration and

 

 

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1 Disciplinary Board of the Department OBRE.
2     "Branch office" means a sponsoring broker's office other
3 than the sponsoring broker's principal office.
4     "Broker" means an individual, partnership, limited
5 liability company, corporation, or registered limited
6 liability partnership other than a real estate salesperson or
7 leasing agent who, whether in person of through any media or
8 technology, for another and for compensation, or with the
9 intention or expectation of receiving compensation, either
10 directly or indirectly:
11         (1) Sells, exchanges, purchases, rents, or leases real
12     estate.
13         (2) Offers to sell, exchange, purchase, rent, or lease
14     real estate.
15         (3) Negotiates, offers, attempts, or agrees to
16     negotiate the sale, exchange, purchase, rental, or leasing
17     of real estate.
18         (4) Lists, offers, attempts, or agrees to list real
19     estate for sale, lease, or exchange.
20         (5) Buys, sells, offers to buy or sell, or otherwise
21     deals in options on real estate or improvements thereon.
22         (6) Supervises the collection, offer, attempt, or
23     agreement to collect rent for the use of real estate.
24         (7) Advertises or represents himself or herself as
25     being engaged in the business of buying, selling,
26     exchanging, renting, or leasing real estate.

 

 

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1         (8) Assists or directs in procuring or referring of
2     leads or prospects, intended to result in the sale,
3     exchange, lease, or rental of real estate.
4         (9) Assists or directs in the negotiation of any
5     transaction intended to result in the sale, exchange,
6     lease, or rental of real estate.
7         (10) Opens real estate to the public for marketing
8     purposes.
9         (11) Sells, leases, or offers for sale or lease real
10     estate at auction.
11     "Brokerage agreement" means a written or oral agreement
12 between a sponsoring broker and a consumer for licensed
13 activities to be provided to a consumer in return for
14 compensation or the right to receive compensation from another.
15 Brokerage agreements may constitute either a bilateral or a
16 unilateral agreement between the broker and the broker's client
17 depending upon the content of the brokerage agreement. All
18 exclusive brokerage agreements shall be in writing.
19     "Client" means a person who is being represented by a
20 licensee.
21     "Commissioner" means the Commissioner of Banks and Real
22 Estate or a person authorized by the Commissioner, the Office
23 of Banks and Real Estate Act, or this Act to act in the
24 Commissioner's stead.
25     "Compensation" means the valuable consideration given by
26 one person or entity to another person or entity in exchange

 

 

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1 for the performance of some activity or service. Compensation
2 shall include the transfer of valuable consideration,
3 including without limitation the following:
4         (1) commissions;
5         (2) referral fees;
6         (3) bonuses;
7         (4) prizes;
8         (5) merchandise;
9         (6) finder fees;
10         (7) performance of services;
11         (8) coupons or gift certificates;
12         (9) discounts;
13         (10) rebates;
14         (11) a chance to win a raffle, drawing, lottery, or
15     similar game of chance not prohibited by any other law or
16     statute;
17         (12) retainer fee; or
18         (13) salary.
19     "Confidential information" means information obtained by a
20 licensee from a client during the term of a brokerage agreement
21 that (i) was made confidential by the written request or
22 written instruction of the client, (ii) deals with the
23 negotiating position of the client, or (iii) is information the
24 disclosure of which could materially harm the negotiating
25 position of the client, unless at any time:
26         (1) the client permits the disclosure of information

 

 

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1     given by that client by word or conduct;
2         (2) the disclosure is required by law; or
3         (3) the information becomes public from a source other
4     than the licensee.
5     "Confidential information" shall not be considered to
6 include material information about the physical condition of
7 the property.
8     "Consumer" means a person or entity seeking or receiving
9 licensed activities.
10     "Continuing education school" means any person licensed by
11 the Department OBRE as a school for continuing education in
12 accordance with Section 30-15 of this Act.
13     "Credit hour" means 50 minutes of classroom instruction in
14 course work that meets the requirements set forth in rules
15 adopted by the Department OBRE.
16     "Customer" means a consumer who is not being represented by
17 the licensee but for whom the licensee is performing
18 ministerial acts.
19     "Designated agency" means a contractual relationship
20 between a sponsoring broker and a client under Section 15-50 of
21 this Act in which one or more licensees associated with or
22 employed by the broker are designated as agent of the client.
23     "Designated agent" means a sponsored licensee named by a
24 sponsoring broker as the legal agent of a client, as provided
25 for in Section 15-50 of this Act.
26     "Director" means the Director of the Real Estate Division,

 

 

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1 OBRE.
2     "Dual agency" means an agency relationship in which a
3 licensee is representing both buyer and seller or both landlord
4 and tenant in the same transaction. When the agency
5 relationship is a designated agency, the question of whether
6 there is a dual agency shall be determined by the agency
7 relationships of the designated agent of the parties and not of
8 the sponsoring broker.
9     "Employee" or other derivative of the word "employee", when
10 used to refer to, describe, or delineate the relationship
11 between a real estate broker and a real estate salesperson,
12 another real estate broker, or a leasing agent, shall be
13 construed to include an independent contractor relationship,
14 provided that a written agreement exists that clearly
15 establishes and states the relationship. All responsibilities
16 of a broker shall remain.
17     "Escrow moneys" means all moneys, promissory notes or any
18 other type or manner of legal tender or financial consideration
19 deposited with any person for the benefit of the parties to the
20 transaction. A transaction exists once an agreement has been
21 reached and an accepted real estate contract signed or lease
22 agreed to by the parties. Escrow moneys includes without
23 limitation earnest moneys and security deposits, except those
24 security deposits in which the person holding the security
25 deposit is also the sole owner of the property being leased and
26 for which the security deposit is being held.

 

 

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1     "Exclusive brokerage agreement" means a written brokerage
2 agreement that provides that the sponsoring broker has the sole
3 right, through one or more sponsored licensees, to act as the
4 exclusive designated agent or representative of the client and
5 that meets the requirements of Section 15-75 of this Act.
6     "Inoperative" means a status of licensure where the
7 licensee holds a current license under this Act, but the
8 licensee is prohibited from engaging in licensed activities
9 because the licensee is unsponsored or the license of the
10 sponsoring broker with whom the licensee is associated or by
11 whom he or she is employed is currently expired, revoked,
12 suspended, or otherwise rendered invalid under this Act.
13     "Leasing Agent" means a person who is employed by a real
14 estate broker to engage in licensed activities limited to
15 leasing residential real estate who has obtained a license as
16 provided for in Section 5-5 of this Act.
17     "License" means the document issued by the Department OBRE
18 certifying that the person named thereon has fulfilled all
19 requirements prerequisite to licensure under this Act.
20     "Licensed activities" means those activities listed in the
21 definition of "broker" under this Section.
22     "Licensee" means any person, as defined in this Section,
23 who holds a valid unexpired license as a real estate broker,
24 real estate salesperson, or leasing agent.
25     "Listing presentation" means a communication between a
26 real estate broker or salesperson and a consumer in which the

 

 

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1 licensee is attempting to secure a brokerage agreement with the
2 consumer to market the consumer's real estate for sale or
3 lease.
4     "Managing broker" means a broker who has supervisory
5 responsibilities for licensees in one or, in the case of a
6 multi-office company, more than one office and who has been
7 appointed as such by the sponsoring broker.
8     "Medium of advertising" means any method of communication
9 intended to influence the general public to use or purchase a
10 particular good or service or real estate.
11     "Ministerial acts" means those acts that a licensee may
12 perform for a consumer that are informative or clerical in
13 nature and do not rise to the level of active representation on
14 behalf of a consumer. Examples of these acts include without
15 limitation (i) responding to phone inquiries by consumers as to
16 the availability and pricing of brokerage services, (ii)
17 responding to phone inquiries from a consumer concerning the
18 price or location of property, (iii) attending an open house
19 and responding to questions about the property from a consumer,
20 (iv) setting an appointment to view property, (v) responding to
21 questions of consumers walking into a licensee's office
22 concerning brokerage services offered or particular
23 properties, (vi) accompanying an appraiser, inspector,
24 contractor, or similar third party on a visit to a property,
25 (vii) describing a property or the property's condition in
26 response to a consumer's inquiry, (viii) completing business or

 

 

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1 factual information for a consumer on an offer or contract to
2 purchase on behalf of a client, (ix) showing a client through a
3 property being sold by an owner on his or her own behalf, or
4 (x) referral to another broker or service provider.
5     "OBRE" means the Office of Banks and Real Estate.
6     "Office" means a real estate broker's place of business
7 where the general public is invited to transact business and
8 where records may be maintained and licenses displayed, whether
9 or not it is the broker's principal place of business.
10     "Person" means and includes individuals, entities,
11 corporations, limited liability companies, registered limited
12 liability partnerships, and partnerships, foreign or domestic,
13 except that when the context otherwise requires, the term may
14 refer to a single individual or other described entity.
15     "Personal assistant" means a licensed or unlicensed person
16 who has been hired for the purpose of aiding or assisting a
17 sponsored licensee in the performance of the sponsored
18 licensee's job.
19     "Pocket card" means the card issued by the Department OBRE
20 to signify that the person named on the card is currently
21 licensed under this Act.
22     "Pre-license school" means a school licensed by the
23 Department OBRE offering courses in subjects related to real
24 estate transactions, including the subjects upon which an
25 applicant is examined in determining fitness to receive a
26 license.

 

 

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1     "Pre-renewal period" means the period between the date of
2 issue of a currently valid license and the license's expiration
3 date.
4     "Proctor" means any person, including without limitation
5 an instructor, who has a written agreement to administer
6 examinations fairly and impartially with a licensed
7 pre-license school or a licensed continuing education school.
8     "Real estate" means and includes leaseholds as well as any
9 other interest or estate in land, whether corporeal,
10 incorporeal, freehold, or non-freehold, including timeshare
11 interests, and whether the real estate is situated in this
12 State or elsewhere.
13     "Real Estate Administration and Disciplinary Board" or
14 "Board" means the Real Estate Administration and Disciplinary
15 Board created by Section 25-10 of this Act.
16     "Salesperson" means any individual, other than a real
17 estate broker or leasing agent, who is employed by a real
18 estate broker or is associated by written agreement with a real
19 estate broker as an independent contractor and participates in
20 any activity described in the definition of "broker" under this
21 Section.
22     "Secretary" means the Secretary of Financial and
23 Professional Regulation or a person authorized by the Secretary
24 to act in the Secretary's stead.
25     "Sponsoring broker" means the broker who has issued a
26 sponsor card to a licensed salesperson, another licensed

 

 

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1 broker, or a leasing agent.
2     "Sponsor card" means the temporary permit issued by the
3 sponsoring real estate broker certifying that the real estate
4 broker, real estate salesperson, or leasing agent named thereon
5 is employed by or associated by written agreement with the
6 sponsoring real estate broker, as provided for in Section 5-40
7 of this Act.
8 (Source: P.A. 92-217, eff. 8-2-01; 93-957, eff. 8-19-04.)
 
9     (225 ILCS 454/5-5)
10     (Section scheduled to be repealed on January 1, 2010)
11     Sec. 5-5. Leasing agent license.
12     (a) The purpose of this Section is to provide for a limited
13 scope license to enable persons who wish to engage in
14 activities limited to the leasing of residential real property
15 for which a license is required under this Act, and only those
16 activities, to do so by obtaining the license provided for
17 under this Section.
18     (b) Notwithstanding the other provisions of this Act, there
19 is hereby created a leasing agent license that shall enable the
20 licensee to engage only in residential leasing activities for
21 which a license is required under this Act. Such activities
22 include without limitation leasing or renting residential real
23 property, or attempting, offering, or negotiating to lease or
24 rent residential real property, or supervising the collection,
25 offer, attempt, or agreement to collect rent for the use of

 

 

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1 residential real property. Nothing in this Section shall be
2 construed to require a licensed real estate broker or
3 salesperson to obtain a leasing agent license in order to
4 perform leasing activities for which a license is required
5 under this Act. Licensed leasing agents must be sponsored and
6 employed by a sponsoring broker.
7     (c) The Department OBRE, by rule, with the advice of the
8 Board, shall provide for the licensing of leasing agents,
9 including the issuance, renewal, and administration of
10 licenses.
11     (d) Notwithstanding any other provisions of this Act to the
12 contrary, a person may engage in residential leasing activities
13 for which a license is required under this Act, for a period of
14 120 consecutive days without being licensed, so long as the
15 person is acting under the supervision of a licensed real
16 estate broker and the broker has notified the Department OBRE
17 that the person is pursuing licensure under this Section.
18 During the 120 day period all requirements of Sections 5-10 and
19 5-65 of this Act with respect to education, successful
20 completion of an examination, and the payment of all required
21 fees must be satisfied. The Department OBRE may adopt rules to
22 ensure that the provisions of this subsection are not used in a
23 manner that enables an unlicensed person to repeatedly or
24 continually engage in activities for which a license is
25 required under this Act.
26 (Source: P.A. 91-245, eff. 12-31-99.)
 

 

 

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1     (225 ILCS 454/5-6 new)
2     (Section scheduled to be repealed on January 1, 2010)
3     Sec. 5-6. Social Security Number or Tax Identification
4 Number on license application. In addition to any other
5 information required to be contained in the application, every
6 application for an original or renewal license under this Act
7 must include the applicant's Social Security Number or Tax
8 Identification Number.
 
9     (225 ILCS 454/5-7 new)
10     (Section scheduled to be repealed on January 1, 2010)
11     Sec. 5-7. Application for leasing agent license. Every
12 applicant for licensure as a leasing agent must apply to the
13 Department on forms provided by the Department and submit the
14 required fee, which shall be non-refundable. Application forms
15 shall require such information that, in the judgment of the
16 Department, shall enable the Department to pass on the
17 qualifications of the applicant.
 
18     (225 ILCS 454/5-10)
19     (Section scheduled to be repealed on January 1, 2010)
20     Sec. 5-10. Requirements for leasing agent licensure.
21 Application for leasing agent license.
22     (a) Every applicant for licensure as a leasing agent must
23 meet each of the following qualifications:

 

 

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1         (1) He or she must be at least 18 years of age.
2         (2) He or she must be of good moral character.
3         (3) He or she must have successfully completed a 4-year
4     course of study in a high school or secondary school or an
5     equivalent course of study approved by the State Board of
6     Education.
7         (4) He or she must successfully complete a written
8     examination authorized by the Department sufficient to
9     demonstrate the applicant's knowledge of the provisions of
10     this Act relating to leasing agents and the applicant's
11     competence to engage in the activities of a licensed
12     leasing agent.
13         (5) He or she must successfully complete 15 hours of
14     instruction in an approved course of study relating to the
15     leasing of residential real property. The course of study
16     shall, among other topics, cover the provisions of this Act
17     applicable to leasing agents; fair housing issues relating
18     to residential leasing; advertising and marketing issues;
19     leases, applications, and credit reports; owner tenant
20     relationships and owner tenant laws; the handling of funds;
21     and environmental issues relating to residential real
22     property.
23         (6) He or she must complete any other requirements as
24     set forth by the Department by rule.
25     (b) Every valid application for initial licensure must be
26 accompanied by a sponsor card and the fees specified by rule.

 

 

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1 No applicant may engage in any of the activities covered by
2 this Act until a valid sponsor card has been issued to such
3 applicant. The sponsor card shall be valid for a maximum period
4 of 45 days after the date of issuance unless extended for good
5 cause, as provided by rule.
6     (c) Course work that is completed successfully and pursuant
7 to the requirements of this Section, may be applied to the
8 course work requirements needed to obtain a real estate
9 broker's or salesperson's license, as provided by rule. The
10 Advisory Council may recommend through the Board to the
11 Department and the Department may adopt requirements for
12 approved courses, course content, and the approval of courses,
13 instructors, and schools, as well as school and instructor
14 fees. The Department may establish continuing education
15 requirements for licensed leasing agents by rule Every person
16 who desires to obtain a leasing agent license shall apply to
17 OBRE in writing on forms provided by OBRE. In addition to any
18 other information required to be contained in the application,
19 every application for an original or renewed leasing agent
20 license shall include the applicant's Social Security number.
21 All application or license fees must accompany the application.
22 Each applicant must be at least 18 years of age, must be of
23 good moral character, shall have successfully completed a
24 4-year course of study in a high school or secondary school or
25 an equivalent course of study approved by the Illinois State
26 Board of Education, and shall successfully complete a written

 

 

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1 examination authorized by OBRE sufficient to demonstrate the
2 applicant's knowledge of the provisions of this Act relating to
3 leasing agents and the applicant's competence to engage in the
4 activities of a licensed leasing agent. Applicants must
5 successfully complete 15 hours of instruction in an approved
6 course of study relating to the leasing of residential real
7 property. The course of study shall, among other topics, cover
8 the provisions of this Act applicable to leasing agents; fair
9 housing issues relating to residential leasing; advertising
10 and marketing issues; leases, applications, and credit
11 reports; owner-tenant relationships and owner-tenant laws; the
12 handling of funds; and environmental issues relating to
13 residential real property. Successfully completed course work,
14 completed pursuant to the requirements of this Section, may be
15 applied to the course work requirements to obtain a real estate
16 broker's or salesperson's license as provided by rule. The
17 Advisory Council shall recommend through the Board to OBRE and
18 OBRE shall adopt requirements for approved courses, course
19 content, and the approval of courses, instructors, and schools,
20 as well as school and instructor fees. OBRE may establish
21 continuing education requirements for licensed leasing agents,
22 by rule, with the advice of the Advisory Council and Board.
23 (Source: P.A. 91-245, eff. 12-31-99.)
 
24     (225 ILCS 454/5-15)
25     (Section scheduled to be repealed on January 1, 2010)

 

 

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1     Sec. 5-15. Necessity of broker, salesperson, or leasing
2 agent license or sponsor card; ownership restrictions.
3     (a) It is unlawful for any person, corporation, limited
4 liability company, registered limited liability partnership,
5 or partnership to act as a real estate broker, real estate
6 salesperson, or leasing agent or to advertise or assume to act
7 as such broker, salesperson, or leasing agent without a
8 properly issued sponsor card or a license issued under this Act
9 by the Department OBRE, either directly or through its
10 authorized designee.
11     (b) No corporation shall be granted a license or engage in
12 the business or capacity, either directly or indirectly, of a
13 real estate broker, unless every officer of the corporation who
14 actively participates in the real estate activities of the
15 corporation holds a license as a real estate broker and unless
16 every employee who acts as a salesperson, or leasing agent for
17 the corporation holds a license as a real estate broker,
18 salesperson, or leasing agent.
19     (c) No partnership shall be granted a license or engage in
20 the business or serve in the capacity, either directly or
21 indirectly, of a real estate broker, unless every general
22 partner in the partnership holds a license as a real estate
23 broker and unless every employee who acts as a salesperson or
24 leasing agent for the partnership holds a license as a real
25 estate broker, salesperson, or leasing agent. In the case of a
26 registered limited liability partnership (LLP), every partner

 

 

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1 in the LLP must hold a license as a real estate broker and
2 every employee who acts as a salesperson or leasing agent must
3 hold a license as a real estate broker, salesperson, or leasing
4 agent.
5     (d) No limited liability company shall be granted a license
6 or engage in the business or serve in the capacity, either
7 directly or indirectly, of a real estate broker unless every
8 manager in the limited liability company holds a license as a
9 real estate broker and unless every member and employee who
10 acts as a salesperson or leasing agent for the limited
11 liability company holds a license as a real estate broker,
12 salesperson, or leasing agent.
13     (e) No partnership, limited liability company, or
14 corporation shall be licensed to conduct a brokerage business
15 where an individual salesperson or leasing agent, or group of
16 salespersons or leasing agents, owns or directly or indirectly
17 controls more than 49% of the shares of stock or other
18 ownership in the partnership, limited liability company, or
19 corporation.
20 (Source: P.A. 91-245, eff. 12-31-99.)
 
21     (225 ILCS 454/5-20)
22     (Section scheduled to be repealed on January 1, 2010)
23     Sec. 5-20. Exemptions from broker, salesperson, or leasing
24 agent license requirement. The requirement for holding a
25 license under this Article 5 shall not apply to:

 

 

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1     (1) Any person, partnership, or corporation that as owner
2 or lessor performs any of the acts described in the definition
3 of "broker" under Section 1-10 of this Act with reference to
4 property owned or leased by it, or to the regular employees
5 thereof with respect to the property so owned or leased, where
6 such acts are performed in the regular course of or as an
7 incident to the management, sale, or other disposition of such
8 property and the investment therein, provided that such regular
9 employees do not perform any of the acts described in the
10 definition of "broker" under Section 1-10 of this Act in
11 connection with a vocation of selling or leasing any real
12 estate or the improvements thereon not so owned or leased.
13     (2) An attorney in fact acting under a duly executed and
14 recorded power of attorney to convey real estate from the owner
15 or lessor or the services rendered by an attorney at law in the
16 performance of the attorney's duty as an attorney at law.
17     (3) Any person acting as receiver, trustee in bankruptcy,
18 administrator, executor, or guardian or while acting under a
19 court order or under the authority of a will or testamentary
20 trust.
21     (4) Any person acting as a resident manager for the owner
22 or any employee acting as the resident manager for a broker
23 managing an apartment building, duplex, or apartment complex,
24 when the resident manager resides on the premises, the premises
25 is his or her primary residence, and the resident manager is
26 engaged in the leasing of the property of which he or she is

 

 

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1 the resident manager.
2     (5) Any officer or employee of a federal agency in the
3 conduct of official duties.
4     (6) Any officer or employee of the State government or any
5 political subdivision thereof performing official duties.
6     (7) Any multiple listing service or other similar
7 information exchange that is engaged in the collection and
8 dissemination of information concerning real estate available
9 for sale, purchase, lease, or exchange along with which no
10 other brokerage services, as described in the definition of
11 "broker" set forth in Section 1-10 of this Act, licensed
12 activities are provided.
13     (8) Railroads and other public utilities regulated by the
14 State of Illinois, or the officers or full time employees
15 thereof, unless the performance of any licensed activities is
16 in connection with the sale, purchase, lease, or other
17 disposition of real estate or investment therein not needing
18 the approval of the appropriate State regulatory authority.
19     (9) Any medium of advertising in the routine course of
20 selling or publishing advertising along with which no other
21 brokerage services, as described in the definition of "broker"
22 set forth in Section 1-10 of this Act, licensed activities are
23 provided.
24     (10) Any resident lessee of a residential dwelling unit who
25 refers for compensation to the owner of the dwelling unit, or
26 to the owner's agent, prospective lessees of dwelling units in

 

 

SB0571 - 23 - LRB095 09919 RAS 30130 b

1 the same building or complex as the resident lessee's unit, but
2 only if the resident lessee (i) refers no more than 3
3 prospective lessees in any 12-month period, (ii) receives
4 compensation of no more than $1,000 or the equivalent of one
5 month's rent, whichever is less, in any 12-month period, and
6 (iii) limits his or her activities to referring prospective
7 lessees to the owner, or the owner's agent, and does not show a
8 residential dwelling unit to a prospective lessee, discuss
9 terms or conditions of leasing a dwelling unit with a
10 prospective lessee, or otherwise participate in the
11 negotiation of the leasing of a dwelling unit.
12     (11) An exchange company registered under the Real Estate
13 Timeshare Act of 1999 and the regular employees of that
14 registered exchange company but only when conducting an
15 exchange program as defined in that Act.
16     (12) An existing timeshare owner who, for compensation,
17 refers prospective purchasers, but only if the existing
18 timeshare owner (i) refers no more than 20 prospective
19 purchasers in any calendar year, (ii) receives no more than
20 $1,000, or its equivalent, for referrals in any calendar year
21 and (iii) limits his or her activities to referring prospective
22 purchasers of timeshare interests to the developer or the
23 developer's employees or agents, and does not show, discuss
24 terms or conditions of purchase or otherwise participate in
25 negotiations with regard to timeshare interests.
26     (13) Any person who is licensed without examination under

 

 

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1 Section 10-25 of the Auction License Act is exempt from holding
2 a broker's or salesperson's license under this Act for the
3 limited purpose of selling or leasing real estate at auction,
4 so long as:
5             (A) that person has made application for said
6         exemption by July 1, 2000;
7             (B) that person verifies to the Department OBRE
8         that he or she has sold real estate at auction for a
9         period of 5 years prior to licensure as an auctioneer;
10             (C) the person has had no lapse in his or her
11         license as an auctioneer; and
12             (D) the license issued under the Auction License
13         Act has not been disciplined for violation of those
14         provisions of Article 20 of the Auction License Act
15         dealing with or related to the sale or lease of real
16         estate at auction.
17     (14) A hotel operator who is registered with the Illinois
18 Department of Revenue and pays taxes under the Hotel Operators'
19 Occupation Tax Act and rents a room or rooms in a hotel as
20 defined in the Hotel Operators' Occupation Tax Act for a period
21 of not more than 30 consecutive days and not more than 60 days
22 in a calendar year.
23 (Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00;
24 91-603, eff. 1-1-00; 92-16, eff. 6-28-01; 92-217, eff. 8-2-01.)
 
25     (225 ILCS 454/5-26 new)

 

 

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1     (Section scheduled to be repealed on January 1, 2010)
2     Sec. 5-26. Requirements for salesperson licensure.
3     (a) Every applicant for licensure as a salesperson must
4 meet each of the following qualifications:
5         (1) He or she must be at least 21 years of age;
6     however, the minimum age of 21 years may be waived for any
7     person seeking a license as a real estate salesperson who
8     has attained the age of 18 and can provide evidence of the
9     successful completion of at least 4 semesters of post
10     secondary school study as a full-time student or the
11     equivalent, with major emphasis on real estate courses in a
12     school approved by the Department.
13         (2) He or she must be of good moral character.
14         (3) He or she must have successfully completed a 4 year
15     course of study in a high school or secondary school
16     approved by the State Board of Education or an equivalent
17     course of study, as determined by an examination conducted
18     by the State Board of Education and verified under oath by
19     the applicant.
20     (b) All applicants for licensure as a salesperson, except
21 for applicants who meet the criteria set forth in subsection
22 (c) of this Section must give satisfactory evidence of the
23 completion, prior to May 1, 2009, of at least 45 hours and , on
24 or after April 30, 2009, at least 90 hours of instruction in
25 real estate courses approved by the Advisory Council.
26     (c) The requirements set forth in subsection (b) of this

 

 

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1 Section do not apply to applicants who are currently admitted
2 to practice law by the Supreme Court of Illinois and are
3 currently in active standing.
4     (d) A minimum of 15 of the required hours of pre-license
5 education must be in the areas of Article 15 of this Act,
6 disclosure and environmental issues, or any other currently
7 topical areas that are determined by the Advisory Council. In
8 addition, on or after April 30, 2009, 15 of the required hours
9 must be devoted to situational problems and case studies, which
10 hours must be classroom hours, as opposed to self-study or
11 distance learning.
12     (e) Every person who makes application for original
13 licensure under this Section must personally take and pass a
14 written examination authorized by the Department.
15     (f) Every valid application for initial salesperson
16 licensure must be accompanied by a sponsor card and the fees
17 specified by rule. No applicant may engage in any of the
18 activities covered by this Act until a valid sponsor card has
19 been issued to such applicant. The sponsor card shall be valid
20 for a maximum period of 45 days after the date of issuance,
21 unless extended for good cause as provided by rule.
22     (g) Each person licensed under this Section shall display
23 his or her license conspicuously in his or her place of
24 business.
 
25     (225 ILCS 454/5-27 new)

 

 

SB0571 - 27 - LRB095 09919 RAS 30130 b

1     (Section scheduled to be repealed on January 1, 2010)
2     Sec. 5-27. Requirements for broker licensure.
3     (a) Every applicant for licensure as a broker must meet
4 each of the following qualifications:
5         (a) He or she must be at least 21 years of age;
6     however, the minimum age of 21 years shall be waived for
7     any person seeking a license as a real estate salesperson
8     who has attained the age of 18 and can provide evidence of
9     the successful completion of at least 4 semesters of post
10     secondary school study as a full time student or the
11     equivalent, with major emphasis on real estate courses in a
12     school approved by the Department.
13         (2) He or she must be of good moral character.
14         (3) He or she must successfully complete a 4 year
15     course of study in a high school or secondary school
16     approved by the State Board of Education or an equivalent
17     course of study as determined by an examination conducted
18     by the State Board of Education and verified under oath by
19     the applicant.
20     (b) All applicants for licensure as a broker, except for
21 applicants who meet the criteria set forth in subsection (c) of
22 this Section shall give satisfactory evidence of the
23 completion, prior to May 1, 2009, of at least 120 classroom
24 hours, 45 of which shall be those hours required to obtain a
25 salesperson's license plus 15 hours in brokerage
26 administration courses, and on or after April 30, 2009, at

 

 

SB0571 - 28 - LRB095 09919 RAS 30130 b

1 least 135 classroom hours, 90 of which shall be those hours
2 required to obtain a salesperson's license plus 15 hours in
3 brokerage administration courses, in real estate courses
4 approved by the Advisory Council.
5     (c) The requirements set forth in subsection (b) of this
6 Section do not apply to applicants who are currently admitted
7 to practice law by the Supreme Court of Illinois and are
8 currently in active standing.
9     (d) Every person who makes application for original
10 licensure under this Section must have been licensed and
11 engaged in licensed real estate brokerage activities in the
12 applicant's state of domicile for at least 2 years out of the 3
13 years immediately preceding the date of application.
14     (e) Every person who makes application for original
15 licensure under this Section must personally take and pass a
16 written examination authorized by the Department.
17     (f) Every valid application for initial broker licensure
18 must be accompanied by a sponsor card and the fees specified by
19 rule. No applicant may engage in any of the activities covered
20 by this Act until a valid sponsor card has been issued to such
21 applicant. The sponsor card shall be valid for a maximum period
22 of 45 days after the date of issuance, unless extended for good
23 cause as provided by rule.
24     (g) Each person licensed under this Section shall display
25 his or her license conspicuously in his or her place of
26 business.
 

 

 

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1     (225 ILCS 454/5-28 new)
2     (Section scheduled to be repealed on January 1, 2010)
3     Sec. 5-28. Good moral character. When an applicant (i) has
4 had his or her license revoked on a prior occasion or when an
5 applicant, (ii) is found to have committed any of the practices
6 enumerated in Section 20-20 of this Act, (iii) has been
7 convicted of forgery, embezzlement, obtaining money under
8 false pretenses, larceny, extortion, conspiracy to defraud, or
9 any other similar offense or offenses, or (iv) has been
10 convicted of a felony involving moral turpitude in any court of
11 competent jurisdiction in this or any other state, district, or
12 territory of the United States or of a foreign country, the
13 Board may consider the prior revocation, conduct, or conviction
14 in its determination of the applicant's moral character and
15 decision of whether or not to grant the applicant a license. In
16 its consideration of the prior revocation, conduct, or
17 conviction, the Board shall take into account the nature of the
18 conduct, any aggravating or extenuating circumstances, the
19 time elapsed since the revocation, conduct, or conviction, the
20 rehabilitation or restitution performed by the applicant, and
21 any other factors that the Board deems relevant. When an
22 applicant has made a false statement of material fact on his or
23 her application, the false statement may, in itself, be
24 sufficient grounds to revoke or refuse to issue a license.
 

 

 

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1     (225 ILCS 454/5-35)
2     (Section scheduled to be repealed on January 1, 2010)
3     Sec. 5-35. Examination; broker, or salesperson, and
4 leasing agent.
5     (a) The Department shall authorize examinations at least
6 annually and at such time and place as it may designate. The
7 examination shall be of a character to give a fair test of the
8 qualifications of the applicant to practice as a real estate
9 salesperson, real estate broker, or leasing agent.
10     Applicants for examination as a real estate salesperson,
11 real estate broker, or leasing agent shall be required to pay,
12 either to the Department or the designated testing service, a
13 fee covering the cost of the provision of the examination.
14 Failure to appear for the examination on the scheduled date, at
15 the time and place specified, after the applicant's application
16 for examination has been received and acknowledged by the
17 Department or the designated testing service, shall result in
18 the forfeiture of the examination fee. The Department may
19 employ consultants for the purposes of preparing and conducting
20 examinations. Every person who makes application for an
21 original license as a broker or salesperson shall personally
22 take and pass a written examination authorized by OBRE and
23 answer any questions that may be required to determine the good
24 moral character of the applicant and the applicant's competency
25 to transact the business of broker or salesperson, as the case
26 may be, in such a manner as to safeguard the interests of the

 

 

SB0571 - 31 - LRB095 09919 RAS 30130 b

1 public. In determining this competency, OBRE shall require
2 proof that the applicant has a good understanding and the
3 knowledge to conduct real estate brokerage and of the
4 provisions of this Act. The examination shall be prepared by an
5 independent testing service designated by OBRE, subject to the
6 approval of the examinations by the Board. The designated
7 independent testing service shall conduct the examinations at
8 such times and places as OBRE shall approve. In addition, every
9 person who desires to take the written examination shall make
10 application to do so to OBRE or to the designated independent
11 testing service in writing upon forms approved by OBRE. An
12 applicant shall be eligible to take the examination only after
13 successfully completing the education requirements, set forth
14 in this Article Section 5-30 of this Act, and attaining the
15 minimum age specified in this Act. Each applicant shall be
16 required to establish compliance with the eligibility
17 requirements in the manner provided by the rules promulgated
18 for the administration of this Act.
19     (b) If a person who has received a passing score on the
20 written examination described in this Section fails to file an
21 application and meet all requirements for a license under this
22 Act within one year after receiving a passing score on the
23 examination, credit for the examination shall terminate. The
24 person thereafter may make a new application for examination.
25     (c) If an applicant has failed an examination 3 times, the
26 applicant must repeat the pre-license education required to sit

 

 

SB0571 - 32 - LRB095 09919 RAS 30130 b

1 for the examination. For the purposes of this Section, the
2 fourth attempt shall be the same as the first. Approved
3 education, as prescribed by this Act for licensure as a
4 salesperson or broker, shall be valid for 3 years after the
5 date of satisfactory completion of the education.
6 (Source: P.A. 91-245, eff. 12-31-99.)
 
7     (225 ILCS 454/5-40)
8     (Section scheduled to be repealed on January 1, 2010)
9     Sec. 5-40. Sponsor card; termination indicated by license
10 endorsement; association with new broker.
11     (a) The sponsoring broker shall prepare upon forms provided
12 by the Department OBRE and deliver to each licensee employed by
13 or associated with the sponsoring broker a sponsor card
14 certifying that the person whose name appears thereon is in
15 fact employed by or associated with the sponsoring broker. The
16 sponsoring broker shall send, by certified mail, return receipt
17 requested, or other delivery service requiring a signature upon
18 delivery, a duplicate of each sponsor card, along with a valid
19 license or other authorization as provided by rule and the
20 appropriate fee, to the Department OBRE within 24 hours of
21 issuance of the sponsor card. It is a violation of this Act for
22 any broker to issue a sponsor card to any licensee or applicant
23 unless the licensee or applicant presents in hand a valid
24 license or other authorization as provided by rule.
25     (b) When a licensee terminates his or her employment or

 

 

SB0571 - 33 - LRB095 09919 RAS 30130 b

1 association with a sponsoring broker or the employment is
2 terminated by the sponsoring broker, the licensee shall obtain
3 from the sponsoring broker his or her license endorsed by the
4 sponsoring broker indicating the termination. The sponsoring
5 broker shall surrender to the Department OBRE a copy of the
6 license of the licensee within 2 days of the termination or
7 shall notify the Department OBRE in writing of the termination
8 and explain why a copy of the license is not surrendered.
9 Failure of the sponsoring broker to surrender the license shall
10 subject the sponsoring broker to discipline under Section 20-20
11 of this Act. The license of any licensee whose association with
12 a sponsoring broker is terminated shall automatically become
13 inoperative immediately upon the termination unless the
14 licensee accepts employment or becomes associated with a new
15 sponsoring broker pursuant to subsection (c) of this Section.
16     (c) When a licensee accepts employment or association with
17 a new sponsoring broker, the new sponsoring broker shall send,
18 by certified mail, return receipt requested, or other delivery
19 service requiring a signature upon delivery, to the Department
20 OBRE a duplicate sponsor card, along with the licensee's
21 endorsed license or an affidavit of the licensee of why the
22 endorsed license is not surrendered, and shall pay the
23 appropriate fee prescribed by rule to cover administrative
24 expenses attendant to the changes in the registration of the
25 licensee.
26 (Source: P.A. 91-245, eff. 12-31-99.)
 

 

 

SB0571 - 34 - LRB095 09919 RAS 30130 b

1     (225 ILCS 454/5-41 new)
2     Sec. 5-41. Change of address. A licensee shall, whenever
3 requested, exhibit his or her license to any representative of
4 the Department and shall notify the Department of the address
5 or addresses and of every change of address where the licensee
6 practices as a real estate broker, real estate salesperson, or
7 leasing agent.
 
8     (225 ILCS 454/5-45)
9     (Section scheduled to be repealed on January 1, 2010)
10     Sec. 5-45. Offices.
11     (a) If a sponsoring broker maintains more than one office
12 within the State, the sponsoring broker shall apply for a
13 branch office license for each office other than the sponsoring
14 broker's principal place of business. The branch office license
15 shall be displayed conspicuously in each branch office. The
16 name of each branch office shall be the same as that of the
17 sponsoring broker's principal office or shall clearly
18 delineate the branch office's relationship with the principal
19 office.
20     (b) The sponsoring broker shall name a managing broker for
21 each branch office and the sponsoring broker shall be
22 responsible for supervising all managing brokers. The
23 sponsoring broker shall notify the Department OBRE in writing
24 of the name of all managing brokers of the sponsoring broker.

 

 

SB0571 - 35 - LRB095 09919 RAS 30130 b

1 Any changes in managing brokers shall be reported to the
2 Department OBRE in writing within 15 days of the change.
3 Failure to do so shall subject the sponsoring broker to
4 discipline under Section 20-20 of this Act.
5     (c) The sponsoring broker shall immediately notify the
6 Department OBRE in writing of any opening, closing, or change
7 in location of any principal or branch office.
8     (d) Except as provided in this Section, each sponsoring
9 broker shall maintain a definite office, or place of business
10 within this State for the transaction of real estate business,
11 shall conspicuously display an identification sign on the
12 outside of his or her office of adequate size and visibility,
13 and shall conspicuously display his or her license in his or
14 her office or place of business and also the licenses of all
15 persons associated with or employed by the sponsoring broker
16 who primarily work at that location. The office or place of
17 business shall not be located in any retail or financial
18 business establishment unless it is separated from the other
19 business by a separate and distinct area within the
20 establishment. A broker who is licensed in this State by
21 examination or pursuant to the provisions of Section 5-60 of
22 this Act shall not be required to maintain a definite office or
23 place of business in this State provided all of the following
24 conditions are met:
25         (1) the broker maintains an active broker's license in
26     the broker's state of domicile;

 

 

SB0571 - 36 - LRB095 09919 RAS 30130 b

1         (2) the broker maintains an office in the broker's
2     state of domicile; and
3         (3) the broker has filed with the Department OBRE
4     written statements appointing the Commissioner to act as
5     the broker's agent upon whom all judicial and other process
6     or legal notices directed to the licensee may be served and
7     agreeing to abide by all of the provisions of this Act with
8     respect to his or her real estate activities within the
9     State of Illinois and submitting to the jurisdiction of the
10     Department OBRE.
11     The statements under subdivision (3) of this Section shall
12 be in form and substance the same as those statements required
13 under Section 5-60 of this Act and shall operate to the same
14 extent.
15     (e) Upon the loss of a managing broker who is not replaced
16 by the sponsoring broker or in the event of the death or
17 adjudicated disability of the sole proprietor of an office, a
18 written request for authorization allowing the continued
19 operation of the office may be submitted to the Department OBRE
20 within 15 days of the loss. The Department OBRE may issue a
21 written authorization allowing the continued operation,
22 provided that a licensed broker, or in the case of the death or
23 adjudicated disability of a sole proprietor, the
24 representative of the estate, assumes responsibility, in
25 writing, for the operation of the office and agrees to
26 personally supervise the operation of the office. No such

 

 

SB0571 - 37 - LRB095 09919 RAS 30130 b

1 written authorization shall be valid for more than 60 days
2 unless extended by the department OBRE for good cause shown and
3 upon written request by the broker or representative.
4 (Source: P.A. 91-245, eff. 12-31-99.)
 
5     (225 ILCS 454/5-50)
6     (Section scheduled to be repealed on January 1, 2010)
7     Sec. 5-50. Expiration date and renewal period of broker,
8 salesperson, or leasing agent license; sponsoring broker;
9 register of licensees; pocket card.
10     (a) The expiration date and renewal period for each license
11 issued under this Act shall be set by rule. Except as otherwise
12 provided in Section 5-55 of this Act, the holder of a license
13 may renew the license within 90 days preceding the expiration
14 date thereof by paying the fees specified by rule. Notice of
15 renewal for all sponsored licensees shall be sent to the
16 sponsoring broker at the sponsoring broker's address of record.
17 Upon written request from the sponsoring broker, the Department
18 OBRE shall prepare and mail to the sponsoring broker a listing
19 of licensees under this Act who, according to the records of
20 the Department OBRE, are sponsored by that broker. Every
21 licensee associated with or employed by a broker whose license
22 is revoked, suspended, terminated, or expired shall be
23 considered as inoperative until such time as the sponsoring
24 broker's license is reinstated or renewed, or the licensee
25 changes employment as set forth in subsection (c) of Section

 

 

SB0571 - 38 - LRB095 09919 RAS 30130 b

1 5-40 of this Act.
2     (b) The Department OBRE shall establish and maintain a
3 register of all persons currently licensed by the State and
4 shall issue and prescribe a form of pocket card. Upon payment
5 by a licensee of the appropriate fee as prescribed by rule for
6 engagement in the activity for which the licensee is qualified
7 and holds a license for the current period, the Department OBRE
8 shall issue a pocket card to the licensee. The pocket card
9 shall be verification that the required fee for the current
10 period has been paid and shall indicate that the person named
11 thereon is licensed for the current renewal period as a broker,
12 salesperson, or leasing agent as the case may be. The pocket
13 card shall further indicate that the person named thereon is
14 authorized by the Department OBRE to engage in the licensed
15 activity appropriate for his or her status (broker,
16 salesperson, or leasing agent). Each licensee shall carry on
17 his or her person his or her pocket card or, if such pocket
18 card has not yet been issued, a properly issued sponsor card
19 when engaging in any licensed activity and shall display the
20 same on demand.
21     (c) Any person licensed as a broker shall be entitled at
22 any renewal date to change his or her license status from
23 broker to salesperson upon forms provided by the Department.
24     (d) Any broker or salesperson whose license under this Act
25 has expired shall be eligible to renew the license for a period
26 of 2 years following the expiration date, provided the broker

 

 

SB0571 - 39 - LRB095 09919 RAS 30130 b

1 or salesperson pays the fees as prescribed by rule and complete
2 continuing education and other requirements provided by for
3 under the Act or by rule. A broker or salesperson whose license
4 has been expired for more than 2 years shall be required to
5 meet the requirements for a new license.
6     (e) Notwithstanding any other provisions of this Act to the
7 contrary, any broker or salesperson whose license under this
8 Act has expired is eligible to renew the license without paying
9 any lapsed renewal fees or reinstatement fee, provided that the
10 license expired while the broker or salesperson was:
11         (1) on active duty with the United States Army, United
12     States Navy, United States Marine Corps, United States Air
13     Force, United States Coast Guard, or the State Militia
14     called into the service or training of the United States;
15         (2) engaged in training or education under the
16     supervision of the United States prior to induction into
17     military service; or
18         (3) serving as the Director of Real Estate in the State
19     of Illinois or as an employee of the Department.
20     A broker, salesperson, or leasing agent hall be eligible to
21 renew a license under the provisions of this Section for a
22 period of 2 years following the termination of the service,
23 education, or training, provided that the termination was by
24 other than dishonorable discharge and provided that the
25 licensee furnishes the Department an affidavit specifying that
26 the broker or salesperson has been so engaged and that the

 

 

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1 service, education, or training has been so terminated.
2 (Source: P.A. 93-957, eff. 8-19-04.)
 
3     (225 ILCS 454/5-60)
4     (Section scheduled to be repealed on January 1, 2010)
5     Sec. 5-60. Broker licensed in another state; nonresident
6 salesperson; reciprocal agreements; agent for service of
7 process.
8     (a) A broker's license may be issued by the Department OBRE
9 to a broker licensed under the laws of another state of the
10 United States, under the following conditions:
11         (1) the broker holds a broker's license in his or her
12     state of domicile;
13         (2) the standards for that state for licensing as a
14     broker are substantially equivalent to or greater than the
15     minimum standards in the State of Illinois;
16         (3) the broker has been actively practicing as a broker
17     in the broker's state of domicile for a period of not less
18     than 2 years, immediately prior to the date of application;
19         (4) the broker furnishes the Department OBRE with a
20     statement under seal of the proper licensing authority of
21     the state in which the broker is licensed showing that the
22     broker has an active broker's license, that the broker is
23     in good standing, and that no complaints are pending
24     against the broker in that state;
25         (5) the broker completes a course of education and

 

 

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1     passes a test on Illinois specific real estate brokerage
2     laws; and
3         (6) The Department OBRE has a reciprocal agreement with
4     that state that includes the provisions of this Section.
5     (b) A nonresident salesperson employed by or associated
6 with a nonresident broker holding a broker's license in this
7 State pursuant to this Section may, in the discretion of the
8 Department OBRE, be issued a nonresident salesperson's license
9 under the nonresident broker provided all of the following
10 conditions are met:
11         (1) the salesperson maintains an active license in the
12     state in which he or she is domiciled;
13         (2) the salesperson is domiciled in the same state as
14     the broker with whom he or she is associated;
15         (3) the salesperson completes a course of education and
16     passes a test on Illinois specific real estate brokerage
17     laws; and
18         (4) The Department OBRE has a reciprocal agreement with
19     that state that includes the provisions of this Section.
20     The nonresident broker with whom the salesperson is
21 associated shall comply with the provisions of this Act and
22 issue the salesperson a sponsor card upon the form provided by
23 the Department OBRE.
24     (c) As a condition precedent to the issuance of a license
25 to a nonresident broker or salesperson, the broker or
26 salesperson shall agree in writing to abide by all the

 

 

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1 provisions of this Act with respect to his or her real estate
2 activities within the State of Illinois and submit to the
3 jurisdiction of the Department OBRE as provided in this Act.
4 The agreement shall be filed with the Department OBRE and shall
5 remain in force for so long as the nonresident broker or
6 salesperson is licensed by this State and thereafter with
7 respect to acts or omissions committed while licensed as a
8 broker or salesperson in this State.
9     (d) Prior to the issuance of any license to any
10 nonresident, verification of active licensure issued for the
11 conduct of such business in any other state must be filed with
12 the Department OBRE by the nonresident, and the same fees must
13 be paid as provided in this Act for the obtaining of a broker's
14 or salesperson's license in this State.
15     (e) Licenses previously granted under reciprocal
16 agreements with other states shall remain in force so long as
17 the Department OBRE has a reciprocal agreement with the state
18 that includes the requirements of this Section, unless that
19 license is suspended, revoked, or terminated by the Department
20 OBRE for any reason provided for suspension, revocation, or
21 termination of a resident licensee's license. Licenses granted
22 under reciprocal agreements may be renewed in the same manner
23 as a resident's license.
24     (f) Prior to the issuance of a license to a nonresident
25 broker or salesperson, the broker or salesperson shall file
26 with the Department OBRE a designation in writing that appoints

 

 

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1 the Commissioner to act as his or her agent upon whom all
2 judicial and other process or legal notices directed to the
3 broker or salesperson may be served. Service upon the agent so
4 designated shall be equivalent to personal service upon the
5 licensee. Copies of the appointment, certified by the
6 Commissioner, shall be deemed sufficient evidence thereof and
7 shall be admitted in evidence with the same force and effect as
8 the original thereof might be admitted. In the written
9 designation, the broker or salesperson shall agree that any
10 lawful process against the licensee that is served upon the
11 agent shall be of the same legal force and validity as if
12 served upon the licensee and that the authority shall continue
13 in force so long as any liability remains outstanding in this
14 State. Upon the receipt of any process or notice, the
15 Commissioner shall forthwith mail a copy of the same by
16 certified mail to the last known business address of the
17 licensee.
18     (g) Any person holding a valid license under this Section
19 shall be eligible to obtain a resident broker's or
20 salesperson's license without examination should that person
21 change their state of domicile to Illinois and that person
22 otherwise meets the qualifications or licensure under this Act.
23 (Source: P.A. 91-245, eff. 12-31-99; 91-702, eff. 5-12-00.)
 
24     (225 ILCS 454/5-65)
25     (Section scheduled to be repealed on January 1, 2010)

 

 

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1     Sec. 5-65. Fees. The Department OBRE shall provide by rule
2 for fees to be paid by applicants and licensees to cover the
3 reasonable costs of the Department OBRE in administering and
4 enforcing the provisions of this Act. The Department OBRE may
5 also provide by rule for general fees to cover the reasonable
6 expenses of carrying out other functions and responsibilities
7 under this Act.
8 (Source: P.A. 91-245, eff. 12-31-99.)
 
9     (225 ILCS 454/5-70)
10     (Section scheduled to be repealed on January 1, 2010)
11     Sec. 5-70. Continuing education requirement; broker or
12 salesperson.
13     (a) The requirements of this Section apply to all
14 licensees.
15     (b) Except as otherwise provided in this Section, each
16 person who applies for renewal of his or her license as a real
17 estate broker or real estate salesperson must successfully
18 complete 30 hours of real estate continuing education courses
19 approved by the Advisory Council either during the renewal
20 period from May 1, 2009 through April 30, 2011, or during the
21 first renewal period during which they are required to take
22 continuing education and for each successive renewal period at
23 the rate of 6 hours per year or its equivalent. In addition,
24 beginning with the pre-renewal period for broker licensees that
25 begins after the effective date of this amendatory Act of the

 

 

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1 93rd General Assembly, to renew a real estate broker's license,
2 Except as otherwise provided in this Section, each person who
3 applies for renewal of his or her license as a real estate
4 broker must successfully complete real estate continuing
5 education courses approved by the Advisory Council at the rate
6 of 6 hours per year or its equivalent and, in addition, the
7 licensee must successfully complete a 6-hour broker management
8 continuing education course approved by the Department OBRE.
9 Successful completion of the course shall include achieving a
10 passing score as provided by rule on a test developed and
11 administered in accordance with rules adopted by the Department
12 OBRE. Beginning on the first day of the pre-renewal period for
13 broker licensees that begins after the effective date of this
14 amendatory Act of the 93rd General Assembly, the 6-hour broker
15 management continuing education course must be completed by all
16 persons receiving their initial broker's license within 180
17 days after the date of initial licensure as a broker. No
18 license may be renewed except upon the successful completion of
19 the required courses or their equivalent or upon a waiver of
20 those requirements for good cause shown as determined by the
21 Commissioner with the recommendation of the Advisory Council.
22 The requirements of this Article are applicable to all brokers
23 and salespersons except those brokers and salespersons who,
24 during the pre-renewal period:
25         (1) serve in the armed services of the United States;
26         (2) serve as an elected State or federal official;

 

 

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1         (3) serve as a full-time employee of the Department
2     OBRE; or
3         (4) are admitted to practice law pursuant to Illinois
4     Supreme Court rule.
5     (c) A person who is issued an initial license as a real
6 estate salesperson less than 90 days one year prior to the
7 expiration date of that license shall not be required to
8 complete continuing education as a condition of license
9 renewal. A person who is issued an initial license as a real
10 estate broker less than 90 days one year prior to the
11 expiration date of that license and who has not been licensed
12 as a real estate salesperson during the pre-renewal period
13 shall not be required to complete the broker management
14 continuing education as a condition of license renewal. The
15 changes to this subsection made by this amendatory Act of the
16 95th General Assembly apply on and after May 1, 2009. A person
17 receiving an initial license as a real estate broker during the
18 90 days before the broker renewal date shall not be required to
19 complete the broker management continuing education course
20 provided for in subsection (b) of this Section as a condition
21 of initial license renewal.
22     (d) The continuing education requirement for salespersons
23 and brokers shall consist of a core curriculum and an elective
24 curriculum, to be established by the Advisory Council. In
25 meeting the continuing education requirements of this Act, at
26 least 3 hours per year or their equivalent shall be required to

 

 

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1 be completed in the core curriculum. In establishing the core
2 curriculum, the Advisory Council shall consider subjects that
3 will educate licensees on recent changes in applicable laws and
4 new laws and refresh the licensee on areas of the license law
5 and the Department OBRE policy that the Advisory Council deems
6 appropriate, and any other areas that the Advisory Council
7 deems timely and applicable in order to prevent violations of
8 this Act and to protect the public. In establishing the
9 elective curriculum, the Advisory Council shall consider
10 subjects that cover the various aspects of the practice of real
11 estate that are covered under the scope of this Act. However,
12 the elective curriculum shall not include any offerings
13 referred to in Section 5-85 of this Act.
14     (e) The subject areas of continuing education courses
15 approved by the Advisory Council may include without limitation
16 the following:
17         (1) license law and escrow;
18         (2) antitrust;
19         (3) fair housing;
20         (4) agency;
21         (5) appraisal;
22         (6) property management;
23         (7) residential brokerage;
24         (8) farm property management;
25         (9) rights and duties of sellers, buyers, and brokers;
26         (10) commercial brokerage and leasing; and

 

 

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1         (11) real estate financing.
2     (f) In lieu of credit for those courses listed in
3 subsection (e) of this Section, credit may be earned for
4 serving as a licensed instructor in an approved course of
5 continuing education. The amount of credit earned for teaching
6 a course shall be the amount of continuing education credit for
7 which the course is approved for licensees taking the course.
8     (g) Credit hours may be earned for self-study programs
9 approved by the Advisory Council.
10     (h) A broker or salesperson may earn credit for a specific
11 continuing education course only once during the prerenewal
12 period.
13     (i) No more than 6 hours of continuing education credit may
14 be earned in one calendar day.
15     (j) To promote the offering of a uniform and consistent
16 course content, the Department OBRE may provide for the
17 development of a single broker management course to be offered
18 by all continuing education providers who choose to offer the
19 broker management continuing education course. The Department
20 OBRE may contract for the development of the 6-hour broker
21 management continuing education course with an outside vendor
22 and, if the course is developed in this manner, the Department
23 OBRE shall license the use of that course to all approved
24 continuing education providers who wish to provide the course.
25     (k) Continuing education credit hours may not be earned for
26 completion of pre-license courses.

 

 

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1 (Source: P.A. 93-957, eff. 8-19-04.)
 
2     (225 ILCS 454/5-80)
3     (Section scheduled to be repealed on January 1, 2010)
4     Sec. 5-80. Evidence of compliance with continuing
5 education requirements.
6     (a) Each renewal applicant shall certify, on his or her
7 renewal application, full compliance with continuing education
8 requirements set forth in Section 5-70. The continuing
9 education school shall retain and submit to the Department OBRE
10 after the completion of each course evidence of those
11 successfully completing the course as provided by rule.
12     (b) The Department OBRE may require additional evidence
13 demonstrating compliance with the continuing education
14 requirements. The renewal applicant shall retain and produce
15 the evidence of compliance upon request of the Department OBRE.
16 (Source: P.A. 91-245, eff. 12-31-99.)
 
17     (225 ILCS 454/5-85)
18     (Section scheduled to be repealed on January 1, 2010)
19     Sec. 5-85. Offerings not meeting continuing education
20 requirements. The following offerings do not meet the
21 continuing education requirements:
22         (1) Examination preparation offerings, except as
23     provided in Section 5-70 of this Act.
24         (2) Offerings in mechanical office and business skills

 

 

SB0571 - 50 - LRB095 09919 RAS 30130 b

1     such as typing, speed reading, memory improvement,
2     advertising, or psychology of sales.
3         (3) Sales promotion or other meetings held in
4     conjunction with the general business of the attendee or
5     his or her employer.
6         (4) Meetings that are a normal part of in-house staff
7     or employee training.
8     The offerings listed in this Section do not limit the
9 Advisory Council's authority to disapprove any course that
10 fails to meet the standards of this Article 5 or rules adopted
11 by the Department OBRE.
12 (Source: P.A. 91-245, eff. 12-31-99.)
 
13     (225 ILCS 454/15-65)
14     (Section scheduled to be repealed on January 1, 2010)
15     Sec. 15-65. Regulatory enforcement. Nothing contained in
16 this Article limits the Department OBRE in its regulation of
17 licensees under other Articles of this Act and the substantive
18 rules adopted by the Department OBRE. The Department OBRE, with
19 the advice of the Board, is authorized to promulgate any rules
20 that may be necessary for the implementation and enforcement of
21 this Article 15.
22 (Source: P.A. 91-245, eff. 12-31-99.)
 
23     (225 ILCS 454/20-5)
24     (Section scheduled to be repealed on January 1, 2010)

 

 

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1     Sec. 20-5. Index of decisions. The Department OBRE shall
2 maintain an index of formal decisions regarding the issuance,
3 refusal to issue, renewal, refusal to renew, revocation, and
4 suspension of licenses and probationary or other disciplinary
5 action taken under this Act on or after December 31, 1999. The
6 decisions shall be indexed according to the Sections of
7 statutes and the administrative rules, if any, that are the
8 basis for the decision. The index shall be available to the
9 public during regular business hours.
10 (Source: P.A. 91-245, eff. 12-31-99.)
 
11     (225 ILCS 454/20-10)
12     (Section scheduled to be repealed on January 1, 2010)
13     Sec. 20-10. Unlicensed practice; civil penalty.
14     (a) Any person who practices, offers to practice, attempts
15 to practice, or holds oneself out to practice as a real estate
16 broker, real estate salesperson, or leasing agent without being
17 licensed under this Act shall, in addition to any other penalty
18 provided by law, pay a civil penalty fine to the Department
19 OBRE in an amount not to exceed $25,000 for each offense as
20 determined by the Department OBRE. The civil penalty fine shall
21 be assessed by the Department OBRE after a hearing is held in
22 accordance with the provisions set forth in this Act regarding
23 the provision of a hearing for the discipline of a license.
24     (b) The Department OBRE has the authority and power to
25 investigate any and all unlicensed activity.

 

 

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1     (c) The civil penalty fine shall be paid within 60 days
2 after the effective date of the order imposing the civil
3 penalty fine. The order shall constitute a judgement and may be
4 filed and execution had thereon in the same manner from any
5 court of record.
6 (Source: P.A. 91-245, eff. 12-31-99.)
 
7     (225 ILCS 454/20-20)
8     (Section scheduled to be repealed on January 1, 2010)
9     Sec. 20-20. Disciplinary actions; causes.
10     (a) The Department OBRE may refuse to issue or renew a
11 license, may place on probation, suspend, or revoke any
12 license, or may censure, reprimand, or take any other
13 disciplinary or non-disciplinary action as the Department may
14 deem proper otherwise discipline or impose a civil fine not to
15 exceed $25,000 upon any licensee license issued under this Act
16 or against a licensee in handling his or her own property,
17 whether held by deed, option, or otherwise, hereunder for any
18 one or any combination of the following causes:
19         (1) Fraud or misrepresentation in applying for, or
20     procuring, a license under this Act or in connection with
21     applying for renewal of a license under this Act. (a) When
22     the applicant or licensee has, by false or fraudulent
23     representation, obtained or sought to obtain a license.
24         (2) The conviction of, plea of guilty or plea of nolo
25     contendere to a felony; or a misdemeanor, (b) When the

 

 

SB0571 - 53 - LRB095 09919 RAS 30130 b

1     applicant or licensee has been convicted of any crime, an
2     essential element of which is dishonesty or fraud or
3     larceny, embezzlement, or obtaining money, property, or
4     credit by false pretenses or by means of a confidence game,
5     in has been convicted in this or another state of a crime
6     that is a felony under the laws of this State, or any other
7     jurisdiction has been convicted of a felony in a federal
8     court.
9         (3) Mental illness or disability which results in the
10     inability to practice under this Act with reasonable skill,
11     judgment, or safety. (c) When the applicant or licensee has
12     been adjudged to be a person under legal disability or
13     subject to involuntary admission or to meet the standard
14     for judicial admission as provided in the Mental Health and
15     Developmental Disabilities Code.
16         (4) Practice under this Act (d) When the licensee
17     performs or attempts to perform any act as a broker or
18     salesperson in a retail sales establishment from an office,
19     desk, or space that is not separated from the main retail
20     business by a separate and distinct area within the
21     establishment.
22         (5) Disciplinary action of another State or
23     jurisdiction against the license or other authorization to
24     practice as a broker, salesperson, or leasing agent (e)
25     Discipline of a licensee by another state, the District of
26     Columbia, a territory, a foreign nation, a governmental

 

 

SB0571 - 54 - LRB095 09919 RAS 30130 b

1     agency, or any other entity authorized to impose discipline
2     if at least one of the grounds for that discipline is the
3     same as or the equivalent of one of the grounds for
4     discipline set forth in this Act. A certified copy of the
5     record of the action by the other state or jurisdiction
6     shall be prima facie evidence thereof. , in which case the
7     only issue will be whether one of the grounds for that
8     discipline is the same or equivalent to one of the grounds
9     for discipline under this Act.
10         (6) Engaging (f) When the applicant or licensee has
11     engaged in the practice of real estate activity without a
12     license or after the licensee's license was expired or
13     while the license was inoperative.
14         (7) Cheating or attempting to subvert (g) When the
15     applicant or licensee attempts to subvert or cheat on the
16     Real Estate License Exam or continuing education exam.
17         (8) Aiding and abetting or aids and abets an applicant
18     to subvert or cheat on the Real Estate License Exam or
19     continuing education exam administered pursuant to this
20     Act. (h) When the licensee in performing, attempting to
21     perform, or pretending to perform any act as a broker,
22     salesperson, or leasing agent or when the licensee in
23     handling his or her own property, whether held by deed,
24     option, or otherwise, is found guilty of:
25          (9) (1) Making any substantial misrepresentation or
26     untruthful advertising.

 

 

SB0571 - 55 - LRB095 09919 RAS 30130 b

1         (10) (2) Making any false promises of a character
2     likely to influence, persuade, or induce.
3         (11) (3) Pursuing a continued and flagrant course of
4     misrepresentation or the making of false promises through
5     licensees, employees, agents, advertising, or otherwise.
6         (12) Misleading (4) Any misleading or untruthful
7     advertising, or using any trade name or insignia of
8     membership in any real estate organization of which the
9     licensee is not a member.
10         (13) (5) Acting for more than one party in a
11     transaction without providing written notice to all
12     parties for whom the licensee acts.
13         (14) (6) Representing or attempting to represent a
14     broker other than the sponsoring broker.
15         (15) (7) Failure to account for or to remit any moneys
16     or documents coming into his or her possession that belong
17     to others.
18         (16) (8) Failure to maintain and deposit in a special
19     account, separate and apart from personal and other
20     business accounts, all escrow moneys belonging to others
21     entrusted to a licensee while acting as a real estate
22     broker, escrow agent, or temporary custodian of the funds
23     of others or failure to maintain all escrow moneys on
24     deposit in the account until the transactions are
25     consummated or terminated, except to the extent that the
26     moneys, or any part thereof, shall be disbursed prior to

 

 

SB0571 - 56 - LRB095 09919 RAS 30130 b

1     the consummation or termination in accordance with (i) the
2     written direction of the principals to the transaction or
3     their duly authorized agents, (ii) directions providing
4     for the release, payment, or distribution of escrow moneys
5     contained in any written contract signed by the principals
6     to the transaction or their duly authorized agents, or
7     (iii) pursuant to an order of a court of competent
8     jurisdiction. The account shall be noninterest bearing,
9     unless the character of the deposit is such that payment of
10     interest thereon is otherwise required by law or unless the
11     principals to the transaction specifically require, in
12     writing, that the deposit be placed in an interest bearing
13     account.
14         (17) (9) Failure to make available to the real estate
15     enforcement personnel of the Department OBRE during normal
16     business hours all escrow records and related documents
17     maintained in connection with the practice of real estate
18     within 24 hours of a request for those documents by
19     Department OBRE personnel.
20         (18) (10) Failing to furnish copies upon request of all
21     documents relating to a real estate transaction to all
22     parties executing them.
23         (19) (11) Failure of a sponsoring broker to timely
24     provide information, sponsor cards, or termination of
25     licenses to the Department OBRE.
26         (20) (12) Engaging in dishonorable, unethical, or

 

 

SB0571 - 57 - LRB095 09919 RAS 30130 b

1     unprofessional conduct of a character likely to deceive,
2     defraud, or harm the public.
3         (21) (13) Commingling the money or property of others
4     with his or her own money or property.
5         (22) (14) Employing any person on a purely temporary or
6     single deal basis as a means of evading the law regarding
7     payment of commission to nonlicensees on some contemplated
8     transactions.
9         (23) (15) Permitting the use of his or her license as a
10     broker to enable a salesperson or unlicensed person to
11     operate a real estate business without actual
12     participation therein and control thereof by the broker.
13         (24) (16) Any other conduct, whether of the same or a
14     different character from that specified in this Section,
15     that constitutes dishonest dealing.
16         (25) (17) Displaying a "for rent" or "for sale" sign on
17     any property without the written consent of an owner or his
18     or her duly authorized agent or advertising by any means
19     that any property is for sale or for rent without the
20     written consent of the owner or his or her authorized
21     agent.
22         (26) Failure (18) Failing to provide information
23     requested by the Department OBRE, within 30 days of the
24     request, either as the result of a formal or informal
25     complaint to the Department OBRE or as a result of a random
26     audit conducted by the Department OBRE, which would

 

 

SB0571 - 58 - LRB095 09919 RAS 30130 b

1     indicate a violation of this Act.
2         (27) (19) Advertising by means of a blind
3     advertisement, except as otherwise permitted in Section
4     10-30 of this Act.
5         (28) (20) Offering guaranteed sales plans, as defined
6     in clause (A) of this subdivision (28) (20), except to the
7     extent hereinafter set forth:
8             (A) A "guaranteed sales plan" is any real estate
9         purchase or sales plan whereby a licensee enters into a
10         conditional or unconditional written contract with a
11         seller by the terms of which a licensee agrees to
12         purchase a property of the seller within a specified
13         period of time at a specific price in the event the
14         property is not sold in accordance with the terms of a
15         listing contract between the sponsoring broker and the
16         seller or on other terms acceptable to the seller.
17             (B) A licensee offering a guaranteed sales plan
18         shall provide the details and conditions of the plan in
19         writing to the party to whom the plan is offered.
20             (C) A licensee offering a guaranteed sales plan
21         shall provide to the party to whom the plan is offered
22         evidence of sufficient financial resources to satisfy
23         the commitment to purchase undertaken by the broker in
24         the plan.
25             (D) Any licensee offering a guaranteed sales plan
26         shall undertake to market the property of the seller

 

 

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1         subject to the plan in the same manner in which the
2         broker would market any other property, unless the
3         agreement with the seller provides otherwise.
4             (E) Any licensee who fails to perform on a
5         guaranteed sales plan in strict accordance with its
6         terms shall be subject to all the penalties provided in
7         this Act for violations thereof and, in addition, shall
8         be subject to a civil fine payable to the party injured
9         by the default in an amount of up to $25,000.
10         (29) (21) Influencing or attempting to influence, by
11     any words or acts, a prospective seller, purchaser,
12     occupant, landlord, or tenant of real estate, in connection
13     with viewing, buying, or leasing real estate, so as to
14     promote or tend to promote the continuance or maintenance
15     of racially and religiously segregated housing or so as to
16     retard, obstruct, or discourage racially integrated
17     housing on or in any street, block, neighborhood, or
18     community.
19         (30) (22) Engaging in any act that constitutes a
20     violation of any provision of Article 3 of the Illinois
21     Human Rights Act, whether or not a complaint has been filed
22     with or adjudicated by the Human Rights Commission.
23         (31) (23) Inducing any party to a contract of sale or
24     lease or brokerage agreement to break the contract of sale
25     or lease or brokerage agreement for the purpose of
26     substituting, in lieu thereof, a new contract for sale or

 

 

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1     lease or brokerage agreement with a third party.
2         (32) (24) Negotiating a sale, exchange, or lease of
3     real estate directly with any person if the licensee knows
4     that the person has a written exclusive brokerage agreement
5     with another broker, unless specifically authorized by
6     that broker.
7         (33) (25) When a licensee is also an attorney, acting
8     as the attorney for either the buyer or the seller in the
9     same transaction in which the licensee is acting or has
10     acted as a broker or salesperson.
11         (34) (26) Advertising or offering merchandise or
12     services as free if any conditions or obligations necessary
13     for receiving the merchandise or services are not disclosed
14     in the same advertisement or offer. These conditions or
15     obligations include without limitation the requirement
16     that the recipient attend a promotional activity or visit a
17     real estate site. As used in this subdivision (26), "free"
18     includes terms such as "award", "prize", "no charge", "free
19     of charge", "without charge", and similar words or phrases
20     that reasonably lead a person to believe that he or she may
21     receive or has been selected to receive something of value,
22     without any conditions or obligations on the part of the
23     recipient.
24         (35) (27) Disregarding or violating any provision of
25     the Land Sales Registration Act of 1989, the Illinois Real
26     Estate Time-Share Act, or the published rules promulgated

 

 

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1     by the Department OBRE to enforce those Acts.
2         (36) (28) Violating the terms of a disciplinary order
3     issued by the Department OBRE.
4         (37) (29) Paying compensation in violation of Article
5     10 of this Act.
6         (38) (30) Requiring a party to a transaction who is not
7     a client of the licensee to allow the licensee to retain a
8     portion of the escrow moneys for payment of the licensee's
9     commission or expenses as a condition for release of the
10     escrow moneys to that party.
11         (39) (31) Disregarding or violating any provision of
12     this Act or the published rules promulgated by the
13     Department OBRE to enforce this Act or aiding or abetting
14     any individual, partnership, registered limited liability
15     partnership, limited liability company, or corporation in
16     disregarding any provision of this Act or the published
17     rules promulgated by the Department OBRE to enforce this
18     Act.
19         (40) (32) Failing to provide the minimum services
20     required by Section 15-75 of this Act when acting under an
21     exclusive brokerage agreement.
22         (41) Habitual or excessive use of or addiction to
23     alcohol, narcotics, stimulants, or any other chemical
24     agent or drug that results in a real estate broker's, real
25     estate salesperson's, or leasing agent's inability to
26     practice with reasonable skill or safety.

 

 

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1     (b) In enforcing this Section, the Department or Board,
2 upon a showing of a possible violation, may compel a licensee
3 or an applicant for licensure under this Act to submit to a
4 mental or physical examination, or both, as required by and at
5 the expense of the Department. The Department or Board may
6 order the examining physician to present testimony concerning
7 the mental or physical examination of the licensee or
8 applicant. No information shall be excluded by reason of any
9 common law or statutory privilege relating to communications
10 between the licensee or applicant and the examining physician.
11 The examining physician shall be specifically designated by the
12 Board or Department. The individual to be examined may have, at
13 his or her own expense, another physician of his or her choice
14 present during all aspects of this examination. Failure of an
15 individual to submit to a mental or physical examination when
16 directed shall be grounds for suspension of his or her license
17 until the individual submits to the examination if the
18 Department finds, after notice and hearing, that the refusal to
19 submit to the examination was without reasonable cause.
20     If the Department or Board finds an individual unable to
21 practice because of the reasons set forth in this subsection
22 (b), the Department or Board may require that individual to
23 submit to care, counseling, or treatment by physicians approved
24 or designated by the Department or Board as a condition, term,
25 or restriction for continued, reinstated, or renewed licensure
26 to practice; or, in lieu of care, counseling, or treatment, the

 

 

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1 Department may file, or the Board may recommend to the
2 Department to file, a complaint to immediately suspend, revoke,
3 or otherwise discipline the license of the individual. An
4 individual whose license was granted, continued, reinstated,
5 renewed, disciplined, or supervised subject to such terms,
6 conditions, or restrictions, and who fails to comply with such
7 terms, conditions, or restrictions, shall be referred to the
8 Secretary for a determination as to whether the individual
9 shall have his or her license suspended immediately, pending a
10 hearing by the Department.
11     In instances in which the Secretary immediately suspends a
12 person's license under this subsection (b), a hearing on that
13 person's license must be convened by the Department within 30
14 days after the suspension and completed without appreciable
15 delay. The Department and Board shall have the authority to
16 review the subject individual's record of treatment and
17 counseling regarding the impairment to the extent permitted by
18 applicable federal statutes and regulations safeguarding the
19 confidentiality of medical records.
20     An individual licensed under this Act and affected under
21 this subsection (b) shall be afforded an opportunity to
22 demonstrate to the Department or Board that he or she can
23 resume practice in compliance with acceptable and prevailing
24 standards under the provisions of his or her license.
25 (Source: P.A. 93-957, eff. 8-19-04.)
 

 

 

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1     (225 ILCS 454/20-21 new)
2     (Section scheduled to be repealed on January 1, 2010)
3     Sec. 20-21. Injunctions; criminal offenses; cease and
4 desist order.
5     (a) If any person violates the provisions of this Act, the
6 Secretary may, in the name of the people of the State of
7 Illinois and through the Attorney General or the State's
8 Attorney for any county in which the action is brought,
9 petition for an order enjoining the violation or enforcing
10 compliance with this Act. Upon the filing of a verified
11 petition in court, the court may issue a temporary restraining
12 order, without notice or condition, and may preliminarily and
13 permanently enjoin the violation. If it is established that the
14 person has violated or is violating the injunction, the court
15 may punish the offender for contempt of court. Proceedings
16 under this Section shall be in addition to, and not in lieu of,
17 all other remedies and penalties provided by law.
18     (b) Whenever, in the opinion of the Department, a person
19 violates a provision of this Act, the Department may issue a
20 rule to show cause why an order to cease and desist should not
21 be entered against that person. The rule shall clearly set
22 forth the grounds relied upon by the Department and shall allow
23 at least 7 days after the date of the rule to file an answer to
24 the satisfaction of the Department. Failure to answer to the
25 satisfaction of the Department shall cause an order to cease
26 and desist to be issued immediately.

 

 

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1     (c) Other than as provided in Section 5-20 of this Act, any
2 licensed real estate broker, real estate salesperson , leasing
3 agent, interested party, or person injured thereby may, in
4 addition to the Secretary, petition for relief as provided for
5 in subsection (a) of this Section against any person practicing
6 as or holding himself or herself out to be a licensed real
7 estate broker, real estate salesperson, or leasing agent who
8 does not possess a valid and existing license issued by the
9 Department under this Act.
 
10     (225 ILCS 454/20-22 new)
11     (Section scheduled to be repealed on January 1, 2010)
12     Sec. 20-22. Criminal violations. Any person who knowingly
13 practices or offers to practice as a real estate broker, real
14 estate salesperson, or leasing agent in this State without
15 being licensed for that purpose shall be guilty of a Class A
16 misdemeanor and for each subsequent conviction shall be guilty
17 of a Class 4 felony.
 
18     (225 ILCS 454/20-25)
19     (Section scheduled to be repealed on January 1, 2010)
20     Sec. 20-25. Returned checks; fees. Any person who delivers
21 a check or other payment to the Department OBRE that is
22 returned to the Department OBRE unpaid by the financial
23 institution upon which it is drawn shall pay to the Department
24 OBRE, in addition to the amount already owed to the Department

 

 

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1 OBRE, a fee of $50. The Department OBRE shall notify the person
2 that payment of fees and fines shall be paid to the Department
3 OBRE by certified check or money order within 30 calendar days
4 of the notification. If, after the expiration of 30 days from
5 the date of the notification, the person has failed to submit
6 the necessary remittance, the Department OBRE shall
7 automatically terminate the license or deny the application,
8 without hearing. If, after termination or denial, the person
9 seeks a license, he or she shall apply to the Department OBRE
10 for restoration or issuance of the license and pay all fees and
11 fines due to the Department OBRE. The Department OBRE may
12 establish a fee for the processing of an application for
13 restoration of a license to pay all expenses of processing this
14 application. The Commissioner may waive the fees due under this
15 Section in individual cases where the Commissioner finds that
16 the fees would be unreasonable or unnecessarily burdensome.
17 (Source: P.A. 91-245, eff. 12-31-99; 92-146, eff. 1-1-02.)
 
18     (225 ILCS 454/20-30)
19     (Section scheduled to be repealed on January 1, 2010)
20     Sec. 20-30. Standards of practice of leasing agents;
21 disciplinary procedures. The Department OBRE may by rule, with
22 the advice of the Board, prescribe standards of practice to be
23 followed by licensed leasing agents. Standards of practice
24 shall include without limitation acts or omissions that leasing
25 agents are prohibited from engaging in, disciplinary

 

 

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1 procedures, and penalties for violating provisions of this Act.
2 Disciplinary procedures shall conform with disciplinary
3 procedures for licensed real estate brokers and salespersons.
4 Complaints shall be heard as provided for in this Act.
5 (Source: P.A. 91-245, eff. 12-31-99.)
 
6     (225 ILCS 454/20-35)
7     (Section scheduled to be repealed on January 1, 2010)
8     Sec. 20-35. Violations of tax Acts. The Department OBRE may
9 refuse to issue or renew or may suspend the license of any
10 person who fails to file a return, pay the tax, penalty, or
11 interest shown in a filed return, or pay any final assessment
12 of tax, penalty, or interest, as required by any tax Act
13 administered by the Department of Revenue, until such time as
14 the requirements of any such tax Act are satisfied.
15 (Source: P.A. 91-245, eff. 12-31-99.)
 
16     (225 ILCS 454/20-40)
17     (Section scheduled to be repealed on January 1, 2010)
18     Sec. 20-40. Disciplinary action for educational loan
19 defaults. The Department OBRE shall deny a license or renewal
20 authorized by this Act to a person who has defaulted on an
21 educational loan or scholarship provided or guaranteed by the
22 Illinois Student Assistance Commission or any governmental
23 agency of this State; however, the Department OBRE may issue a
24 license or renewal if the person has established a satisfactory

 

 

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1 repayment record as determined by the Illinois Student
2 Assistance Commission or other appropriate governmental agency
3 of this State. Additionally, a license issued by the Department
4 OBRE may be suspended or revoked if the Commissioner, after the
5 opportunity for a hearing under this Article, finds that the
6 licensee has failed to make satisfactory repayment to the
7 Illinois Student Assistance Commission for a delinquent or
8 defaulted loan.
9 (Source: P.A. 91-245, eff. 12-31-99.)
 
10     (225 ILCS 454/20-45)
11     (Section scheduled to be repealed on January 1, 2010)
12     Sec. 20-45. Nonpayment of child support. In cases in which
13 the Department of Healthcare and Family Services (formerly
14 Department of Public Aid) has previously determined that a
15 licensee or a potential licensee is more than 30 days
16 delinquent in the payment of child support and has subsequently
17 certified the delinquency to the Department OBRE, the
18 Department OBRE may refuse to issue or renew or may revoke or
19 suspend that person's license or may take other disciplinary
20 action against that person based solely upon the certification
21 of delinquency made by the Department of Healthcare and Family
22 Services (formerly Department of Public Aid). Redetermination
23 of the delinquency by the Department OBRE shall not be
24 required. In cases regarding the renewal of a license, the
25 Department OBRE shall not renew any license if the Department

 

 

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1 of Healthcare and Family Services (formerly Department of
2 Public Aid) has certified the licensee to be more than 30 days
3 delinquent in the payment of child support unless the licensee
4 has arranged for payment of past and current child support
5 obligations in a manner satisfactory to the Department of
6 Healthcare and Family Services (formerly Department of Public
7 Aid). The Department OBRE may impose conditions, restrictions,
8 or disciplinary action upon that renewal.
9 (Source: P.A. 91-245, eff. 12-31-99; revised 12-15-05.)
 
10     (225 ILCS 454/20-50)
11     (Section scheduled to be repealed on January 1, 2010)
12     Sec. 20-50. Illegal discrimination. When there has been an
13 adjudication in a civil or criminal proceeding that a licensee
14 has illegally discriminated while engaged in any activity for
15 which a license is required under this Act, the Department
16 OBRE, upon the recommendation of the Board as to the extent of
17 the suspension or revocation, shall suspend or revoke the
18 license of that licensee in a timely manner, unless the
19 adjudication is in the appeal process. When there has been an
20 order in an administrative proceeding finding that a licensee
21 has illegally discriminated while engaged in any activity for
22 which a license is required under this Act, the Department
23 OBRE, upon recommendation of the Board as to the nature and
24 extent of the discipline, shall take one or more of the
25 disciplinary actions provided for in Section 20-20 of this Act

 

 

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1 in a timely manner, unless the administrative order is in the
2 appeal process.
3 (Source: P.A. 91-245, eff. 12-31-99.)
 
4     (225 ILCS 454/20-60)
5     (Section scheduled to be repealed on January 1, 2010)
6     Sec. 20-60. Hearing; investigation; notice; disciplinary
7 consent order.
8     (a) The Department OBRE may conduct hearings through the
9 Board or a duly appointed hearing officer on proceedings to
10 suspend, revoke, or to refuse to issue or renew licenses of
11 persons applying for licensure or licensed under this Act or to
12 censure, reprimand, or impose a civil fine not to exceed
13 $25,000 upon any licensee hereunder and may revoke, suspend, or
14 refuse to issue or renew these licenses or censure, reprimand,
15 or impose a civil fine not to exceed $25,000 upon any licensee
16 hereunder.
17     (b) Upon the motion of either the Department OBRE or the
18 Board or upon the verified complaint in writing of any persons
19 setting forth facts that if proven would constitute grounds for
20 suspension or revocation under this Act, the Department OBRE,
21 the Board, or its subcommittee shall cause to be investigated
22 the actions of any person so accused who holds a license or is
23 holding himself or herself out to be a licensee. This person is
24 hereinafter called the accused.
25     (c) Prior to initiating any formal disciplinary

 

 

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1 proceedings resulting from an investigation conducted pursuant
2 to subsection (b) of this Section, that matter shall be
3 reviewed by a subcommittee of the Board according to procedures
4 established by rule. The subcommittee shall make a
5 recommendation to the full Board as to the validity of the
6 complaint and may recommend that the Board not proceed with
7 formal disciplinary proceedings if the complaint is determined
8 to be frivolous or without merit.
9     (d) Except as provided for in Section 20-65 of this Act,
10 the Department OBRE shall, before suspending, revoking,
11 placing on probationary status, or taking any other
12 disciplinary action as the Department OBRE may deem proper with
13 regard to any license:
14         (1) notify the accused in writing at least 30 days
15     prior to the date set for the hearing of any charges made
16     and the time and place for the hearing of the charges to be
17     heard before the Board under oath; and
18         (2) inform the accused that upon failure to file an
19     answer and request a hearing before the date originally set
20     for the hearing, default will be taken against the accused
21     and his or her license may be suspended, revoked, or placed
22     on probationary status, or other disciplinary action,
23     including limiting the scope, nature, or extent of the
24     accused's practice, as the Department OBRE may deem proper,
25     may be taken with regard thereto.
26     In case the person fails to file an answer after receiving

 

 

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1 notice, his or her license may, in the discretion of the
2 Department OBRE, be suspended, revoked, or placed on
3 probationary status, or the Department OBRE may take whatever
4 disciplinary action deemed proper, including limiting the
5 scope, nature, or extent of the person's practice or the
6 imposition of a fine, without a hearing, if the act or acts
7 charged constitute sufficient grounds for such action under
8 this Act.
9     (e) At the time and place fixed in the notice, the Board
10 shall proceed to hearing of the charges and both the accused
11 person and the complainant shall be accorded ample opportunity
12 to present in person or by counsel such statements, testimony,
13 evidence and argument as may be pertinent to the charges or to
14 any defense thereto. The Board or its hearing officer may
15 continue a hearing date upon its own motion or upon an
16 accused's motion for one period not to exceed 30 days. The
17 Board or its hearing officer may grant further continuances for
18 periods not to exceed 30 days only upon good cause being shown
19 by the moving party. The non-moving party shall have the
20 opportunity to object to a continuance on the record at a
21 hearing upon the motion to continue. All motions for
22 continuances and any denial or grant thereof shall be in
23 writing. All motions shall be submitted not later than 48 hours
24 before the scheduled hearing unless made upon an emergency
25 basis. In determining whether good cause for a continuance is
26 shown, the Board or its hearing officer shall consider such

 

 

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1 factors as the volume of cases pending, the nature and
2 complexity of legal issues raised, the diligence of the party
3 making the request, the availability of party's legal
4 representative or witnesses, and the number of previous
5 requests for continuance.
6     (f) Any unlawful act or violation of any of the provisions
7 of this Act upon the part of any licensees employed by a real
8 estate broker or associated by written agreement with the real
9 estate broker, or unlicensed employee of a licensed broker,
10 shall not be cause for the revocation of the license of any
11 such broker, partial or otherwise, unless it appears to the
12 satisfaction of the Department OBRE that the broker had
13 knowledge thereof.
14     (g) The Department OBRE or the Board has power to subpoena
15 any persons or documents for the purpose of investigation or
16 hearing with the same fees and mileage and in the same manner
17 as prescribed by law for judicial procedure in civil cases in
18 courts of this State. The Secretary or his or her designee or
19 Commissioner, the Director, any member of the Board, a
20 certified court reporter, or a hearing officer shall each have
21 power to administer oaths to witnesses at any hearing which the
22 Department OBRE is authorized under this Act to conduct.
23     (h) Any circuit court or any judge thereof, upon the
24 application of the accused person, complainant, the Department
25 OBRE, or the Board, may, by order entered, require the
26 attendance of witnesses and the production of relevant books

 

 

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1 and papers before the Board in any hearing relative to the
2 application for or refusal, recall, suspension, or revocation
3 of a license, and the court or judge may compel obedience to
4 the court's or the judge's order by proceedings for contempt.
5     (i) The Department OBRE, at its expense, shall preserve a
6 record of all proceedings at the formal hearing of any case
7 involving the refusal to issue or the revocation, suspension,
8 or other discipline of a licensee. The notice of hearing,
9 complaint and all other documents in the nature of pleadings
10 and written motions filed in the proceedings, the transcript of
11 testimony, the report of the Board, and the orders of the
12 Department OBRE shall be the record of the proceeding. At all
13 hearings or pre-hearing conferences, the Department OBRE and
14 the accused shall be entitled to have a court reporter in
15 attendance for purposes of transcribing the proceeding or
16 pre-hearing conference at the expense of the party requesting
17 the court reporter's attendance. A copy of the transcribed
18 proceeding shall be available to the other party for the cost
19 of a copy of the transcript.
20     (j) The Board shall present to the Secretary Commissioner
21 its written report of its findings and recommendations. A copy
22 of the report shall be served upon the accused, either
23 personally or by certified mail as provided in this Act for the
24 service of the citation. Within 20 days after the service, the
25 accused may present to the Secretary Commissioner a motion in
26 writing for a rehearing that shall specify the particular

 

 

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1 grounds therefor. If the accused shall order and pay for a
2 transcript of the record as provided in this Act, the time
3 elapsing thereafter and before the transcript is ready for
4 delivery to the accused shall not be counted as part of the 20
5 days. Whenever the Secretary Commissioner is satisfied that
6 substantial justice has not been done, the Secretary
7 Commissioner may order a rehearing by the Board or other
8 special committee appointed by the Secretary Commissioner or
9 may remand the matter to the Board for their reconsideration of
10 the matter based on the pleadings and evidence presented to the
11 Board. In all instances, under this Act, in which the Board has
12 rendered a recommendation to the Secretary Commissioner with
13 respect to a particular licensee or applicant, the Secretary
14 Commissioner shall, in the event that he or she disagrees with
15 or takes action contrary to the recommendation of the Board,
16 file with the Board and the Secretary of State his specific
17 written reasons of disagreement with the Board. The reasons
18 shall be filed within 60 days of the Board's recommendation to
19 the Secretary Commissioner and prior to any contrary action. At
20 the expiration of the time specified for filing a motion for a
21 rehearing, the Secretary Commissioner shall have the right to
22 take the action recommended by the Board. Upon the suspension
23 or revocation of a license, the licensee shall be required to
24 surrender his or her license to the Department OBRE, and upon
25 failure or refusal to do so, the Department OBRE shall have the
26 right to seize the license.

 

 

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1     (k) At any time after the suspension, temporary suspension,
2 or revocation of any license, the Department OBRE may restore
3 it to the accused without examination, upon the written
4 recommendation of the Board.
5     (l) An order of revocation or suspension or a certified
6 copy thereof, over the seal of OBRE and purporting to be signed
7 by the Secretary Commissioner, shall be prima facie proof that:
8         (1) The signature is the genuine signature of the
9     Secretary Commissioner.
10         (2) The Secretary Commissioner is duly appointed and
11     qualified.
12         (3) The Board and the members thereof are qualified.
13 Such proof may be rebutted.
14     (m) Notwithstanding any provisions concerning the conduct
15 of hearings and recommendations for disciplinary actions, the
16 Department OBRE as directed by the Secretary Commissioner has
17 the authority to negotiate agreements with licensees and
18 applicants resulting in disciplinary consent orders. These
19 consent orders may provide for any of the forms of discipline
20 provided in this Act. These consent orders shall provide that
21 they were not entered into as a result of any coercion by the
22 Department OBRE. Any such consent order shall be filed with the
23 Secretary Commissioner along with the Board's recommendation
24 and accepted or rejected by the Secretary Commissioner within
25 60 days of the Board's recommendation.
26 (Source: P.A. 91-245, eff. 12-31-99; 92-217, eff. 8-2-01.)
 

 

 

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1     (225 ILCS 454/20-65)
2     (Section scheduled to be repealed on January 1, 2010)
3     Sec. 20-65. Temporary suspension. The Secretary
4 Commissioner may temporarily suspend the license of a licensee
5 without a hearing, simultaneously with the institution of
6 proceedings for a hearing provided for in Section 20-60 of this
7 Act, if the Secretary Commissioner finds that the evidence
8 indicates that the public interest, safety, or welfare
9 imperatively requires emergency action. In the event that the
10 Secretary Commissioner temporarily suspends the license
11 without a hearing before the Board, a hearing shall be held
12 within 30 days after the suspension has occurred. The suspended
13 licensee may seek a continuance of the hearing during which the
14 suspension shall remain in effect. The proceeding shall be
15 concluded without appreciable delay.
16 (Source: P.A. 91-245, eff. 12-31-99.)
 
17     (225 ILCS 454/20-75)
18     (Section scheduled to be repealed on January 1, 2010)
19     Sec. 20-75. Administrative Review Law; certification fee;
20 summary report of final disciplinary actions. All final
21 administrative decisions of the Department OBRE shall be
22 subject to judicial review pursuant to the provisions of the
23 Administrative Review Law and the rules adopted pursuant
24 thereto. The term "administrative decision" is defined in

 

 

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1 Section 3-101 of the Administrative Review Law. The Department
2 OBRE shall not be required to certify any record or file any
3 answer or otherwise appear unless the party filing the
4 complaint pays to the Department OBRE the certification fee
5 provided for by rule representing costs of the certification.
6 Failure on the part of the plaintiff to make such a deposit
7 shall be grounds for dismissal of the action. The Department
8 OBRE shall prepare from time to time, but in no event less
9 often than once every other month, a summary report of final
10 disciplinary actions taken since the previous summary report.
11 The summary report shall contain a brief description of the
12 action that brought about the discipline and the final
13 disciplinary action taken. The summary report shall be made
14 available upon request.
15 (Source: P.A. 91-245, eff. 12-31-99.)
 
16     (225 ILCS 454/20-85)
17     (Section scheduled to be repealed on January 1, 2010)
18     Sec. 20-85. Recovery from Real Estate Recovery Fund. The
19 Department OBRE shall maintain a Real Estate Recovery Fund from
20 which any person aggrieved by an act, representation,
21 transaction, or conduct of a licensee or unlicensed employee of
22 a licensee that is in violation of this Act or the rules
23 promulgated pursuant thereto, constitutes embezzlement of
24 money or property, or results in money or property being
25 unlawfully obtained from any person by false pretenses,

 

 

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1 artifice, trickery, or forgery or by reason of any fraud,
2 misrepresentation, discrimination, or deceit by or on the part
3 of any such licensee or the unlicensed employee of a licensee
4 and that results in a loss of actual cash money, as opposed to
5 losses in market value, may recover. The aggrieved person may
6 recover, by order of the circuit court of the county where the
7 violation occurred, an amount of not more than $10,000 from the
8 Fund for damages sustained by the act, representation,
9 transaction, or conduct, together with costs of suit and
10 attorney's fees incurred in connection therewith of not to
11 exceed 15% of the amount of the recovery ordered paid from the
12 Fund. However, no licensed broker or salesperson may recover
13 from the Fund unless the court finds that the person suffered a
14 loss resulting from intentional misconduct. The court order
15 shall not include interest on the judgment. The maximum
16 liability against the Fund arising out of any one act shall be
17 as provided in this Section, and the judgment order shall
18 spread the award equitably among all co-owners or otherwise
19 aggrieved persons, if any. The maximum liability against the
20 Fund arising out of the activities of any one licensee or one
21 unlicensed employee of a licensee, since January 1, 1974, shall
22 be $50,000. Nothing in this Section shall be construed to
23 authorize recovery from the Fund unless the loss of the
24 aggrieved person results from an act or omission of a licensed
25 broker, salesperson, or unlicensed employee who was at the time
26 of the act or omission acting in such capacity or was

 

 

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1 apparently acting in such capacity and unless the aggrieved
2 person has obtained a valid judgment as provided in Section
3 20-90 of this Act. No person aggrieved by an act,
4 representation, or transaction that is in violation of the
5 Illinois Real Estate Time-Share Act or the Land Sales
6 Registration Act of 1989 may recover from the Fund.
7 (Source: P.A. 91-245, eff. 12-31-99.)
 
8     (225 ILCS 454/20-90)
9     (Section scheduled to be repealed on January 1, 2010)
10     Sec. 20-90. Collection from Real Estate Recovery Fund;
11 procedure.
12     (a) No action for a judgment that subsequently results in
13 an order for collection from the Real Estate Recovery Fund
14 shall be started later than 2 years after the date on which the
15 aggrieved person knew, or through the use of reasonable
16 diligence should have known, of the acts or omissions giving
17 rise to a right of recovery from the Real Estate Recovery Fund.
18     (b) When any aggrieved person commences action for a
19 judgment that may result in collection from the Real Estate
20 Recovery Fund, the aggrieved person must name as parties
21 defendant to that action any and all individual real estate
22 brokers, real estate salespersons, or their employees who
23 allegedly committed or are responsible for acts or omissions
24 giving rise to a right of recovery from the Real Estate
25 Recovery Fund. Failure to name as parties defendant such

 

 

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1 individual brokers, salespersons, or their employees shall
2 preclude recovery from the Real Estate Recovery Fund of any
3 portion of any judgment received in such an action. The
4 aggrieved party may also name as additional parties defendant
5 any corporations, limited liability companies, partnerships,
6 registered limited liability partnership, or other business
7 associations that may be responsible for acts giving rise to a
8 right of recovery from the Real Estate Recovery Fund.
9     (c) When any aggrieved person commences action for a
10 judgment that may result in collection from the Real Estate
11 Recovery Fund, the aggrieved person must notify the Department
12 OBRE in writing to this effect within 7 days of the
13 commencement of the action. Failure to so notify the Department
14 OBRE shall preclude recovery from the Real Estate Recovery Fund
15 of any portion of any judgment received in such an action.
16 After receiving notice of the commencement of such an action,
17 the Department OBRE upon timely application shall be permitted
18 to intervene as a party defendant to that action.
19     (d) When any aggrieved person commences action for a
20 judgment that may result in collection from the Real Estate
21 Recovery Fund, and the aggrieved person is unable to obtain
22 legal and proper service upon the defendant under the
23 provisions of Illinois law concerning service of process in
24 civil actions, the aggrieved person may petition the court
25 where the action to obtain judgment was begun for an order to
26 allow service of legal process on the Commissioner. Service of

 

 

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1 process on the Commissioner shall be taken and held in that
2 court to be as valid and binding as if due service had been
3 made upon the defendant. In case any process mentioned in this
4 Section is served upon the Commissioner, the Commissioner shall
5 forward a copy of the process by certified mail to the
6 licensee's last address on record with the Department OBRE. Any
7 judgment obtained after service of process on the Commissioner
8 under this Act shall apply to and be enforceable against the
9 Real Estate Recovery Fund only. The Department OBRE may
10 intervene in and defend any such action.
11     (e) When an aggrieved party commences action for a judgment
12 that may result in collection from the Real Estate Recovery
13 Fund, and the court before which that action is commenced
14 enters judgment by default against the defendant and in favor
15 of the aggrieved party, the court shall upon motion of the
16 Department OBRE set aside that judgment by default. After such
17 a judgment by default has been set aside, the Department OBRE
18 shall appear as party defendant to that action, and thereafter
19 the court shall require proof of the allegations in the
20 pleadings upon which relief is sought.
21     (f) The aggrieved person shall give written notice to the
22 Department OBRE within 30 days of the entry of any judgment
23 that may result in collection from the Real Estate Recovery
24 Fund. The aggrieved person shall provide the Department OBRE
25 within 20 days prior written notice of all supplementary
26 proceedings so as to allow the Department OBRE to participate

 

 

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1 in all efforts to collect on the judgment.
2     (g) When any aggrieved person recovers a valid judgment in
3 any court of competent jurisdiction against any licensee or an
4 unlicensed employee of any broker, upon the grounds of fraud,
5 misrepresentation, discrimination, or deceit, the aggrieved
6 person may, upon the termination of all proceedings, including
7 review and appeals in connection with the judgment, file a
8 verified claim in the court in which the judgment was entered
9 and, upon 30 days' written notice to the Department OBRE, and
10 to the person against whom the judgment was obtained, may apply
11 to the court for an order directing payment out of the Real
12 Estate Recovery Fund of the amount unpaid upon the judgment,
13 not including interest on the judgment, and subject to the
14 limitations stated in Section 20-85 of this Act. The aggrieved
15 person must set out in that verified claim and at an
16 evidentiary hearing to be held by the court upon the
17 application the aggrieved party shall be required to show that
18 the aggrieved person:
19         (1) Is not a spouse of the debtor or the personal
20     representative of such spouse.
21         (2) Has complied with all the requirements of this
22     Section.
23         (3) Has obtained a judgment stating the amount thereof
24     and the amount owing thereon, not including interest
25     thereon, at the date of the application.
26         (4) Has made all reasonable searches and inquiries to

 

 

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1     ascertain whether the judgment debtor is possessed of real
2     or personal property or other assets, liable to be sold or
3     applied in satisfaction of the judgment.
4         (5) By such search has discovered no personal or real
5     property or other assets liable to be sold or applied, or
6     has discovered certain of them, describing them as owned by
7     the judgment debtor and liable to be so applied and has
8     taken all necessary action and proceedings for the
9     realization thereof, and the amount thereby realized was
10     insufficient to satisfy the judgment, stating the amount so
11     realized and the balance remaining due on the judgment
12     after application of the amount realized.
13         (6) Has diligently pursued all remedies against all the
14     judgment debtors and all other persons liable to the
15     aggrieved person in the transaction for which recovery is
16     sought from the Real Estate Recovery Fund, including the
17     filing of an adversary action to have the debts declared
18     non-dischargeable in any bankruptcy petition matter filed
19     by any judgment debtor or person liable to the aggrieved
20     person.
21     The aggrieved person shall also be required to prove the
22 amount of attorney's fees sought to be recovered and the
23 reasonableness of those fees up to the maximum allowed pursuant
24 to Section 20-85 of this Act.
25     (h) The court shall make an order directed to the
26 Department OBRE requiring payment from the Real Estate Recovery

 

 

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1 Fund of whatever sum it finds to be payable upon the claim,
2 pursuant to and in accordance with the limitations contained in
3 Section 20-85 of this Act, if the court is satisfied, upon the
4 hearing, of the truth of all matters required to be shown by
5 the aggrieved person under subsection (g) of this Section and
6 that the aggrieved person has fully pursued and exhausted all
7 remedies available for recovering the amount awarded by the
8 judgment of the court.
9     (i) Should the Department OBRE pay from the Real Estate
10 Recovery Fund any amount in settlement of a claim or toward
11 satisfaction of a judgment against a licensed broker or
12 salesperson or an unlicensed employee of a broker, the
13 licensee's license shall be automatically terminated upon the
14 issuance of a court order authorizing payment from the Real
15 Estate Recovery Fund. No petition for restoration of a license
16 shall be heard until repayment has been made in full, plus
17 interest at the rate prescribed in Section 12-109 of the Code
18 of Civil Procedure of the amount paid from the Real Estate
19 Recovery Fund on their account. A discharge in bankruptcy shall
20 not relieve a person from the penalties and disabilities
21 provided in this subsection (i).
22     (j) If, at any time, the money deposited in the Real Estate
23 Recovery Fund is insufficient to satisfy any duly authorized
24 claim or portion thereof, the Department OBRE shall, when
25 sufficient money has been deposited in the Real Estate Recovery
26 Fund, satisfy such unpaid claims or portions thereof, in the

 

 

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1 order that such claims or portions thereof were originally
2 filed, plus accumulated interest at the rate prescribed in
3 Section 12-109 of the Code of Civil Procedure.
4 (Source: P.A. 91-245, eff. 12-31-99.)
 
5     (225 ILCS 454/20-95)
6     (Section scheduled to be repealed on January 1, 2010)
7     Sec. 20-95. Power of the Department OBRE to defend. When
8 the Department OBRE receives any process, notice, order, or
9 other document provided for or required under Section 20-90 of
10 this Act, it may enter an appearance, file an answer, appear at
11 the court hearing, defend the action, or take whatever other
12 action it deems appropriate on behalf and in the name of the
13 defendant and take recourse through any appropriate method of
14 review on behalf of and in the name of the defendant.
15 (Source: P.A. 91-245, eff. 12-31-99.)
 
16     (225 ILCS 454/20-100)
17     (Section scheduled to be repealed on January 1, 2010)
18     Sec. 20-100. Subrogation of the Department OBRE to rights
19 of judgment creditor. When, upon the order of the court, the
20 Department OBRE has paid from the Real Estate Recovery Fund any
21 sum to the judgment creditor, the Department OBRE shall be
22 subrogated to all of the rights of the judgment creditor and
23 the judgment creditor shall assign all rights, title, and
24 interest in the judgment to the Department OBRE and any amount

 

 

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1 and interest so recovered by the Department OBRE on the
2 judgment shall be deposited in the Real Estate Recovery Fund.
3 (Source: P.A. 91-245, eff. 12-31-99.)
 
4     (225 ILCS 454/20-110)
5     (Section scheduled to be repealed on January 1, 2010)
6     Sec. 20-110. Disciplinary actions of the Department OBRE
7 not limited. Nothing contained in Sections 20-80 through 20-100
8 of this Act limits the authority of the Department OBRE to take
9 disciplinary action against any licensee for a violation of
10 this Act or the rules of the Department OBRE, nor shall the
11 repayment in full of all obligations to the Real Estate
12 Recovery Fund by any licensee nullify or modify the effect of
13 any other disciplinary proceeding brought pursuant to this Act.
14 (Source: P.A. 91-245, eff. 12-31-99.)
 
15     (225 ILCS 454/20-115)
16     (Section scheduled to be repealed on January 1, 2010)
17     Sec. 20-115. Time limit on action. No action may be taken
18 by the Department OBRE against any person for violation of the
19 terms of this Act or its rules unless the action is commenced
20 within 5 years after the occurrence of the alleged violation.
21 (Source: P.A. 91-245, eff. 12-31-99.)
 
22     (225 ILCS 454/25-5)
23     (Section scheduled to be repealed on January 1, 2010)

 

 

SB0571 - 88 - LRB095 09919 RAS 30130 b

1     Sec. 25-5. The Department OBRE; powers and duties. The
2 Department OBRE shall exercise the powers and duties prescribed
3 by the Civil Administrative Code of Illinois for the
4 administration of licensing acts and shall exercise such other
5 powers and duties as are prescribed by this Act. The Department
6 OBRE may contract with third parties for services necessary for
7 the proper administration of this Act.
8 (Source: P.A. 91-245, eff. 12-31-99.)
 
9     (225 ILCS 454/25-10)
10     (Section scheduled to be repealed on January 1, 2010)
11     Sec. 25-10. Real Estate Administration and Disciplinary
12 Board; duties. There is created the Real Estate Administration
13 and Disciplinary Board. The Board shall be composed of 9
14 persons appointed by the Governor. Members shall be appointed
15 to the Board subject to the following conditions:
16         (1) All members shall have been residents and citizens
17     of this State for at least 6 years prior to the date of
18     appointment.
19         (2) Six members shall have been actively engaged as
20     brokers or salespersons or both for at least the 10 years
21     prior to the appointment.
22         (3) Three members of the Board shall be public members
23     who represent consumer interests.
24     None of these members shall be a person who is licensed
25 under this Act or a similar Act of another jurisdiction or who

 

 

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1 has a connection with the profession , the spouse of a person
2 licensed under this Act, or a person who has an ownership
3 interest in a real estate brokerage business.
4     The members' terms shall be 4 years or until a successor is
5 appointed and the expiration of their terms shall be staggered.
6 Appointments to fill vacancies shall be for the unexpired
7 portion of the term. No member may be reappointed to the Board
8 for a term that would cause his or her continuous service on
9 the Board to be longer than 12 years in a lifetime. A member
10 may be reappointed for successive terms but no person shall be
11 appointed to more than 2 terms or any part thereof in his or
12 her lifetime. Persons holding office as members of the Board
13 immediately prior to December 31, 1999 under the Real Estate
14 License Act of 1983 shall continue as members of the Board
15 until the expiration of the term for which they were appointed
16 and until their successors are appointed and qualified. The
17 membership of the Board should reasonably reflect the
18 geographic distribution of the licensee population in this
19 State. In making the appointments, the Governor shall give due
20 consideration to the recommendations by members and
21 organizations of the profession. The Governor may terminate the
22 appointment of any member for cause that in the opinion of the
23 Governor reasonably justifies the termination. Cause for
24 termination shall include without limitation misconduct,
25 incapacity, neglect of duty, or missing 4 board meetings during
26 any one calendar year. Each member of the Board shall receive a

 

 

SB0571 - 90 - LRB095 09919 RAS 30130 b

1 per diem stipend in an amount to be determined by the
2 Commissioner. Each member shall be paid his or her necessary
3 expenses while engaged in the performance of his or her duties.
4 Such compensation and expenses shall be paid out of the Real
5 Estate License Administration Fund. The Commissioner shall
6 consider the recommendations of the Board on questions
7 involving standards of professional conduct, discipline, and
8 examination of candidates under this Act. The Department OBRE,
9 after notifying and considering the recommendations of the
10 Board, if any, may issue rules, consistent with the provisions
11 of this Act, for the administration and enforcement thereof and
12 may prescribe forms that shall be used in connection therewith.
13 None of the functions, powers, or duties enumerated in Sections
14 20-20 and 30-5 and subsections (a) and (j) of Section 20-60 of
15 this Act shall be exercised by the Department OBRE except upon
16 the action and report in writing of the Board.
17     A majority of the Board members shall constitute a quorum.
18 A vacancy in the membership of the Board shall not impair the
19 right of a quorum to exercise all of the rights and perform all
20 of the duties of the Board.
21 (Source: P.A. 91-245, eff. 12-31-99.)
 
22     (225 ILCS 454/25-13)
23     (Section scheduled to be repealed on January 1, 2010)
24     Sec. 25-13. Rules. The Department OBRE, after notifying and
25 considering the recommendations of the Board, if any, shall

 

 

SB0571 - 91 - LRB095 09919 RAS 30130 b

1 adopt, promulgate, and issue any rules that may be necessary
2 for the implementation and enforcement of this Act.
3 (Source: P.A. 91-245, eff. 12-31-99.)
 
4     (225 ILCS 454/25-14)
5     (Section scheduled to be repealed on January 1, 2010)
6     Sec. 25-14. Reliance on advisory letters. Licensees or
7 their representatives may seek an advisory letter from the
8 Department OBRE as to matters arising under this Act or the
9 rules promulgated pursuant to this Act. The Department OBRE
10 shall promulgate rules as to the process of seeking and
11 obtaining an advisory letter and topics and areas on which
12 advisory rules will be issued by the Department OBRE. A
13 licensee is entitled to rely upon an advisory letter from the
14 Department OBRE and will not be disciplined by the Department
15 OBRE for actions taken in reliance on the advisory letter.
16 (Source: P.A. 92-217, eff. 8-2-01.)
 
17     (225 ILCS 454/25-15)
18     (Section scheduled to be repealed on January 1, 2010)
19     Sec. 25-15. Director of Real Estate Coordinator; duties.
20 There shall be in the Department OBRE a Real Estate Coordinator
21 Director and a Deputy Director of Real Estate, appointed by the
22 Secretary Commissioner, who shall hold a currently valid
23 broker's license, which shall be surrendered to the Department
24 OBRE during the appointment. The Coordinator Director of Real

 

 

SB0571 - 92 - LRB095 09919 RAS 30130 b

1 Estate shall report to the Commissioner and shall do the
2 following:
3         (1) act as Chairperson of the Board, ex-officio,
4     without vote;
5         (2) be the direct liaison between the Department OBRE,
6     the profession, and real estate organizations and
7     associations;
8         (3) prepare and circulate to licensees any educational
9     and informational material that the Department OBRE deems
10     necessary for providing guidance or assistance to
11     licensees;
12         (4) appoint any necessary committees to assist in the
13     performance of the functions and duties of the Department
14     OBRE under this Act; and
15         (5) subject to the administrative approval of the
16     Secretary Commissioner, supervise all real estate
17     activities of the Department OBRE.
18     The Commissioner shall appoint, for a term of 4 years, a
19 Deputy Director of Real Estate who shall hold a currently valid
20 broker's license, which shall be surrendered to OBRE during the
21 appointment. Under direction of the Director of Real Estate,
22 the Deputy Director of Real Estate shall be responsible for the
23 administration of the licensing, disciplinary, and education
24 provisions of this Act. The Deputy Director shall also assist
25 the Director of Real Estate in the performance of his or her
26 duties.

 

 

SB0571 - 93 - LRB095 09919 RAS 30130 b

1     In designating the Real Estate Coordinator, the Secretary
2 Director and Deputy Director of Real Estate, the Commissioner
3 shall give due consideration to recommendations by members and
4 organizations of the profession.
5 (Source: P.A. 91-245, eff. 12-31-99.)
 
6     (225 ILCS 454/25-20)
7     (Section scheduled to be repealed on January 1, 2010)
8     Sec. 25-20. Staff. The Department OBRE shall employ
9 sufficient staff to carry out the provisions of this Act.
10 (Source: P.A. 91-245, eff. 12-31-99.)
 
11     (225 ILCS 454/25-25)
12     (Section scheduled to be repealed on January 1, 2010)
13     Sec. 25-25. Real Estate Research and Education Fund. A
14 special fund to be known as the Real Estate Research and
15 Education Fund is created and shall be held in trust in the
16 State Treasury. Annually, on September 15th, the State
17 Treasurer shall cause a transfer of $125,000 to the Real Estate
18 Research and Education Fund from the Real Estate License
19 Administration Fund. The Real Estate Research and Education
20 Fund shall be administered by the Department OBRE. Money
21 deposited in the Real Estate Research and Education Fund may be
22 used for research and education at state institutions of higher
23 education or other organizations for research and the
24 advancement of education in the real estate industry. Of the

 

 

SB0571 - 94 - LRB095 09919 RAS 30130 b

1 $125,000 annually transferred into the Real Estate Research and
2 Education Fund, $15,000 shall be used to fund a scholarship
3 program for persons of minority racial origin who wish to
4 pursue a course of study in the field of real estate. For the
5 purposes of this Section, "course of study" means a course or
6 courses that are part of a program of courses in the field of
7 real estate designed to further an individual's knowledge or
8 expertise in the field of real estate. These courses shall
9 include without limitation courses that a salesperson licensed
10 under this Act must complete to qualify for a real estate
11 broker's license, courses required to obtain the Graduate
12 Realtors Institute designation, and any other courses or
13 programs offered by accredited colleges, universities, or
14 other institutions of higher education in Illinois. The
15 scholarship program shall be administered by the Department
16 OBRE or its designee. Moneys in the Real Estate Research and
17 Education Fund may be invested and reinvested in the same
18 manner as funds in the Real Estate Recovery Fund and all
19 earnings, interest, and dividends received from such
20 investments shall be deposited in the Real Estate Research and
21 Education Fund and may be used for the same purposes as moneys
22 transferred to the Real Estate Research and Education Fund.
23 Moneys in the Real Estate Research and Education Fund may be
24 transferred to the Professions Indirect Cost Fund as authorized
25 under Section 2105-300 of the Department of Professional
26 Regulation Law of the Civil Administrative Code of Illinois.

 

 

SB0571 - 95 - LRB095 09919 RAS 30130 b

1 (Source: P.A. 94-91, eff. 7-1-05.)
 
2     (225 ILCS 454/25-30)
3     (Section scheduled to be repealed on January 1, 2010)
4     Sec. 25-30. Real Estate License Administration Fund;
5 audit. A special fund to be known as the Real Estate License
6 Administration Fund is created in the State Treasury. All fees
7 received by the Department OBRE under this Act shall be
8 deposited in the Real Estate License Administration Fund. The
9 moneys deposited in the Real Estate License Administration Fund
10 shall be appropriated to the Department OBRE for expenses of
11 the Department OBRE and the Board in the administration of this
12 Act and for the administration of any Act administered by the
13 Department OBRE providing revenue to this Fund. Moneys in the
14 Real Estate License Administration Fund may be invested and
15 reinvested in the same manner as funds in the Real Estate
16 Recovery Fund. All earnings received from such investment shall
17 be deposited in the Real Estate License Administration Fund and
18 may be used for the same purposes as fees deposited in the Real
19 Estate License Administration Fund. Moneys in the Real Estate
20 License Administration Fund may be transferred to the
21 Professions Indirect Cost Fund as authorized under Section
22 2105-300 of the Department of Professional Regulation Law of
23 the Civil Administrative Code of Illinois. Upon the completion
24 of any audit of the Department OBRE, as prescribed by the
25 Illinois State Auditing Act, which includes an audit of the

 

 

SB0571 - 96 - LRB095 09919 RAS 30130 b

1 Real Estate License Administration Fund, the Department OBRE
2 shall make the audit open to inspection by any interested
3 person.
4 (Source: P.A. 94-91, eff. 7-1-05.)
 
5     (225 ILCS 454/25-35)
6     (Section scheduled to be repealed on January 1, 2010)
7     Sec. 25-35. Real Estate Recovery Fund. A special fund to be
8 known as the Real Estate Recovery Fund is created in the State
9 Treasury. The sums received by the Department OBRE pursuant to
10 the provisions of Sections 20-20, 20-30, and 20-80 through
11 20-100 of this Act shall be deposited into the State Treasury
12 and held in the Real Estate Recovery Fund. The money in the
13 Real Estate Recovery Fund shall be used by the Department OBRE
14 exclusively for carrying out the purposes established by this
15 Act. If, at any time, the balance remaining in the Real Estate
16 Recovery Fund is less than $750,000, the State Treasurer shall
17 cause a transfer of moneys to the Real Estate Recovery Fund
18 from the Real Estate License Administration Fund in an amount
19 necessary to establish a balance of $800,000 in the Real Estate
20 Recovery Fund. These funds may be invested and reinvested in
21 the same manner as authorized for pension funds in Article 14
22 of the Illinois Pension Code. All earnings, interest, and
23 dividends received from investment of funds in the Real Estate
24 Recovery Fund shall be deposited into the Real Estate License
25 Administration Fund and shall be used for the same purposes as

 

 

SB0571 - 97 - LRB095 09919 RAS 30130 b

1 other moneys deposited in the Real Estate License
2 Administration Fund.
3 (Source: P.A. 91-245, eff. 12-31-99.)
 
4     (225 ILCS 454/25-37)
5     (Section scheduled to be repealed on January 1, 2010)
6     Sec. 25-37. Real Estate Audit Fund; audit of special
7 accounts; audit of fund.
8     (a) A special fund to be known as the Real Estate Audit
9 Fund is created in the State Treasury. The State Treasurer
10 shall cause a transfer of $200,000 from the Real Estate License
11 Administration Fund to the Real Estate Audit Fund on January 1,
12 2002. If, at any time, the balance in the Real Estate Audit
13 Fund is less than $25,000, the State Treasurer shall cause a
14 transfer of $200,000 from the Real Estate License
15 Administration Fund to the Real Estate Audit Fund. The moneys
16 held in the Real Estate Audit Fund shall be used exclusively by
17 the Department OBRE to conduct audits of special accounts of
18 moneys belonging to others held by a broker.
19     (b) Upon receipt of a complaint or evidence by the
20 Department OBRE sufficient to cause the Department OBRE to
21 reasonably believe that funds required to be maintained in a
22 special account by a broker have been misappropriated, the
23 broker shall, within 30 days of written notice, submit to an
24 audit of all special accounts. Such audit shall be performed by
25 a licensed certified public accountant, shall result in a

 

 

SB0571 - 98 - LRB095 09919 RAS 30130 b

1 written report by the accountant, and shall specifically refer
2 to the escrow and record-keeping requirements of this Act and
3 the rules adopted under this Act. If it is found, pursuant to
4 an order issued by the Commissioner, that moneys required to be
5 maintained in a special account by a broker were
6 misappropriated, as further defined by rule, the broker shall
7 reimburse the Department OBRE, in addition to any other
8 discipline or civil penalty imposed, for the cost of the audit
9 performed pursuant to this Section. The Department OBRE may
10 file in circuit court for a judgment to enforce the collection
11 of the reimbursement of the cost of such audit. Any
12 reimbursement collected by the Department OBRE shall be
13 deposited into the Real Estate Audit Fund.
14     (c) Moneys in the Real Estate Audit Fund may be invested
15 and reinvested in the same manner as funds in the Real Estate
16 Recovery Fund. All earnings received from such investment shall
17 be deposited in the Real Estate Audit Fund and may be used for
18 the same purpose as other moneys deposited in the Real Estate
19 Audit Fund. Moneys in the Real Estate Audit Fund may be
20 transferred to the Professions Indirect Cost Fund as authorized
21 under Section 2105-300 of the Department of Professional
22 Regulation Law of the Civil Administrative Code of Illinois.
23 Upon completion of any audit of the Department OBRE, prescribed
24 by the Illinois State Auditing Act, which includes an audit of
25 the Real Estate Audit Fund, the Department OBRE shall make the
26 audit open to inspection by any interested person.

 

 

SB0571 - 99 - LRB095 09919 RAS 30130 b

1 (Source: P.A. 94-91, eff. 7-1-05.)
 
2     (225 ILCS 454/30-5)
3     (Section scheduled to be repealed on January 1, 2010)
4     Sec. 30-5. Licensing of pre-license schools, school
5 branches, and instructors.
6     (a) No person shall operate a pre-license school or school
7 branch without possessing a valid pre-license school or school
8 branch license issued by the Department OBRE. No person shall
9 act as a pre-license instructor at a pre-license school or
10 school branch without possessing a valid pre-license
11 instructor license issued by the Department OBRE. Every person
12 who desires to obtain a pre-license school, school branch, or
13 pre-license instructor license shall make application to the
14 Department OBRE in writing in form and substance satisfactory
15 to the Department OBRE and pay the required fees prescribed by
16 rule. In addition to any other information required to be
17 contained in the application, every application for an original
18 or renewed license shall include the applicant's Social
19 Security number. The Department OBRE shall issue a pre-license
20 school, school branch, or pre-license instructor license to
21 applicants who meet qualification criteria established by
22 rule. The Department OBRE may refuse to issue, suspend, revoke,
23 or otherwise discipline a pre-license school, school branch, or
24 pre-license instructor license or may withdraw approval of a
25 course offered by a pre-license school for good cause.

 

 

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1 Disciplinary proceedings shall be conducted by the Board in the
2 same manner as other disciplinary proceedings under this Act.
3     (b) All pre-license instructors must teach at least one
4 course within the period of licensure or take an instructor
5 training program approved by the Department OBRE in lieu
6 thereof. A pre-license instructor may teach at more than one
7 licensed pre-license school.
8     (c) The term of license for pre-license schools, branches,
9 and instructors shall be 2 years as established by rule.
10     (d) The Department OBRE or the Advisory Council may, after
11 notice, cause a pre-license school to attend an informal
12 conference before the Advisory Council for failure to comply
13 with any requirement for licensure or for failure to comply
14 with any provision of this Act or the rules for the
15 administration of this Act. The Advisory Council shall make a
16 recommendation to the Board as a result of its findings at the
17 conclusion of any such informal conference.
18 (Source: P.A. 91-245, eff. 12-31-99.)
 
19     (225 ILCS 454/30-10)
20     (Section scheduled to be repealed on January 1, 2010)
21     Sec. 30-10. Advisory Council; powers and duties. There is
22 created within the Department OBRE an Advisory Council to be
23 comprised of 6 7 members appointed by the Governor for 4-year
24 staggered terms. The members' terms shall be 4 years or until a
25 successor is appointed and the expiration of terms shall be

 

 

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1 staggered as determined by the Governor. No member shall be
2 reappointed to the Board for a term that would cause his or her
3 continuous service on the Board to be longer than 12 years in a
4 lifetime. No member shall serve more than 8 years in a
5 lifetime. Three of the members shall be licensees who are
6 current members of the Board, one member shall be a
7 representative of an Illinois real estate trade organization
8 who is not a member of the Board, one member shall be a
9 representative of a licensed pre-license school or continuing
10 education school, and one member shall be a representative of
11 an institution of higher education that offers pre-license and
12 continuing education courses. The Real Estate Coordinator
13 Director shall serve as the chairman of the Advisory Council,
14 ex officio, without vote. A majority of Advisory Council
15 members shall constitute a quorum. A vacancy in the membership
16 of the Advisory Council shall not impair the right of a quorum
17 to exercise all the rights and perform all the duties of the
18 Advisory Council. The Advisory Council shall recommend
19 criteria for the licensing of pre-license schools, pre-license
20 instructors, continuing education schools, and continuing
21 education instructors; review applications for these licenses
22 to determine if the applicants meet the qualifications for
23 licensure established in this Act and by rule; approve
24 pre-license school and continuing education curricula; and
25 make recommendations to the Board regarding rules to be adopted
26 for the administration of the education provisions of this Act.

 

 

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1 (Source: P.A. 91-245, eff. 12-31-99.)
 
2     (225 ILCS 454/30-15)
3     (Section scheduled to be repealed on January 1, 2010)
4     Sec. 30-15. Licensing of continuing education schools;
5 approval of courses.
6     (a) Only continuing education schools in possession of a
7 valid continuing education school license may provide real
8 estate continuing education courses that will satisfy the
9 requirements of this Act. Pre-license schools licensed to offer
10 pre-license education courses for salespersons and brokers
11 shall qualify for a continuing education school license upon
12 completion of an application and the submission of the required
13 fee. Every entity that desires to obtain a continuing education
14 school license shall make application to the Department OBRE in
15 writing in forms prescribed by the Department OBRE and pay the
16 fee prescribed by rule. In addition to any other information
17 required to be contained in the application, every application
18 for an original or renewed license shall include the
19 applicant's Social Security number.
20     (b) The criteria for a continuing education license shall
21 include the following:
22         (1) A sound financial base for establishing,
23     promoting, and delivering the necessary courses. Budget
24     planning for the School's courses should be clearly
25     projected.

 

 

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1         (2) A sufficient number of qualified, licensed
2     instructors as provided by rule.
3         (3) Adequate support personnel to assist with
4     administrative matters and technical assistance.
5         (4) Maintenance and availability of records of
6     participation for licensees.
7         (5) The ability to provide each participant who
8     successfully completes an approved program with a
9     certificate of completion signed by the administrator of a
10     licensed continuing education school on forms provided by
11     the Department OBRE.
12         (6) The continuing education school must have a written
13     policy dealing with procedures for the management of
14     grievances and fee refunds.
15         (7) The continuing education school shall maintain
16     lesson plans and examinations for each course.
17         (8) The continuing education school shall require a 70%
18     passing grade for successful completion of any continuing
19     education course.
20         (9) The continuing education school shall identify and
21     use instructors who will teach in a planned program.
22     Suggested criteria for instructor selections include:
23             (A) appropriate credentials;
24             (B) competence as a teacher;
25             (C) knowledge of content area; and
26             (D) qualification by experience.

 

 

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1         (10) The continuing education school must provide for
2     closed book examinations for each course.
3         (11) The continuing education school shall provide a
4     proctor for each examination and shall be responsible for
5     the conduct of the proctor. The duties and responsibilities
6     of a proctor shall be established by the Department by
7     rule.
8     (c) Advertising and promotion of continuing education
9 activities must be carried out in a responsible fashion,
10 clearly showing the educational objectives of the activity, the
11 nature of the audience that may benefit from the activity, the
12 cost of the activity to the participant and the items covered
13 by the cost, the amount of credit that can be earned, and the
14 credentials of the faculty.
15     (d) The Department OBRE may or upon request of the Advisory
16 Council shall, after notice, cause a continuing education
17 school to attend an informal conference before the Advisory
18 Council for failure to comply with any requirement for
19 licensure or for failure to comply with any provision of this
20 Act or the rules for the administration of this Act. The
21 Advisory Council shall make a recommendation to the Board as a
22 result of its findings at the conclusion of any such informal
23 conference.
24     (e) All continuing education schools shall maintain these
25 minimum criteria and pay the required fee in order to retain
26 their continuing education school license.

 

 

SB0571 - 105 - LRB095 09919 RAS 30130 b

1     (f) All continuing education schools shall submit, at the
2 time of initial application and with each license renewal, a
3 list of courses with course materials to be offered by the
4 continuing education school. The Department OBRE, however,
5 shall establish a mechanism whereby continuing education
6 schools may apply for and obtain approval for continuing
7 education courses that are submitted after the time of initial
8 application or renewal. The Department OBRE shall provide to
9 each continuing education school a certificate for each
10 approved continuing education course. All continuing education
11 courses shall be valid for the period coinciding with the term
12 of license of the continuing education school. All continuing
13 education schools shall provide a copy of the certificate of
14 the continuing education course within the course materials
15 given to each student or shall display a copy of the
16 certificate of the continuing education course in a conspicuous
17 place at the location of the class.
18     (g) Each continuing education school shall provide to the
19 Department OBRE a monthly report in a format determined by the
20 Department OBRE, with information concerning students who
21 successfully completed all approved continuing education
22 courses offered by the continuing education school for the
23 prior month.
24     (h) The Department OBRE, upon the recommendation of the
25 Advisory Council, may temporarily suspend a licensed
26 continuing education school's approved courses without hearing

 

 

SB0571 - 106 - LRB095 09919 RAS 30130 b

1 and refuse to accept successful completion of or participation
2 in any of these continuing education courses for continuing
3 education credit from that school upon the failure of that
4 continuing education school to comply with the provisions of
5 this Act or the rules for the administration of this Act, until
6 such time as the Department OBRE receives satisfactory
7 assurance of compliance. The Department OBRE shall notify the
8 continuing education school of the noncompliance and may
9 initiate disciplinary proceedings pursuant to this Act. The
10 Department OBRE may refuse to issue, suspend, revoke, or
11 otherwise discipline the license of a continuing education
12 school or may withdraw approval of a continuing education
13 course for good cause. Failure to comply with the requirements
14 of this Section or any other requirements established by rule
15 shall be deemed to be good cause. Disciplinary proceedings
16 shall be conducted by the Board in the same manner as other
17 disciplinary proceedings under this Act.
18 (Source: P.A. 91-245, eff. 12-31-99.)
 
19     (225 ILCS 454/30-25)
20     (Section scheduled to be repealed on January 1, 2010)
21     Sec. 30-25. Licensing of continuing education instructors.
22     (a) No person shall act as a core curriculum continuing
23 education instructor at a continuing education school or branch
24 without possessing a valid continuing education instructor
25 license and satisfying any other criteria established by the

 

 

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1 Department by rule. Only persons approved by the Advisory
2 Council and in possession of a valid continuing education
3 instructor license issued by OBRE may instruct continuing
4 education courses.
5     (b) Every person who desires to obtain a continuing
6 education instructor license shall make application to the
7 Department OBRE in writing on forms prescribed by the Office,
8 accompanied by the fee prescribed by rule. In addition to any
9 other information required to be contained in the application,
10 every application for an original or renewed license shall
11 include the applicant's Social Security number. The Department
12 OBRE shall issue a continuing education instructor license to
13 applicants who meet qualification criteria established by this
14 Act or rule. Upon the effective date of this amendatory Act of
15 the 95th General Assembly, every person who desires to obtain
16 or renew a continuing education instructor's license shall
17 attend and successfully complete a one-day instructor
18 development workshop, as approved by the Department. All
19 continuing education instructors must teach at least one course
20 within the period of licensure. The term of licensure for a
21 continuing education instructor shall be 2 years and as
22 established by rule.
23     (c) The Department OBRE may refuse to issue, suspend,
24 revoke, or otherwise discipline a continuing education
25 instructor for good cause. Disciplinary proceedings shall be
26 conducted by the Board in the same manner as other disciplinary

 

 

SB0571 - 108 - LRB095 09919 RAS 30130 b

1 proceedings under this Act. The term of a license for a
2 continuing education instructor shall be 2 years and as
3 established by rule. All Continuing Education Instructors must
4 teach at least one course within the period of licensure or
5 take an instructor training program approved by OBRE in lieu
6 thereof.
7 (Source: P.A. 91-245, eff. 12-31-99.)
 
8     (225 ILCS 454/35-5)
9     (Section scheduled to be repealed on January 1, 2010)
10     Sec. 35-5. Savings provisions.
11     (a) This Act is intended to replace the Real Estate License
12 Act of 1983 in all respects.
13     (b) Beginning December 31, 1999, the rights, powers, and
14 duties exercised by the Office of Banks and Real Estate under
15 the Real Estate License Act of 1983 shall continue to be vested
16 in, be the obligation of, and shall be exercised by the
17 Department of Financial and Professional Regulation Office of
18 Banks and Real Estate under the provisions of this Act.
19     (c) This Act does not affect any act done, ratified, or
20 cancelled, or any right occurring or established, or any action
21 or proceeding had or commenced in an administrative, civil, or
22 criminal cause before December 31, 1999, by the Office of Banks
23 and Real Estate under the Real Estate License Act of 1983, and
24 those actions or proceedings may be prosecuted and continued by
25 the Office of Banks and Real Estate under this Act.

 

 

SB0571 - 109 - LRB095 09919 RAS 30130 b

1     (d) This Act does not affect any license, certificate,
2 permit, or other form of licensure or authorization issued by
3 the Office of Banks and Real Estate under the Real Estate
4 License Act of 1983, and all such licenses, certificates,
5 permits, or other form of licensure or authorization shall
6 continue to be valid under the terms and conditions of this
7 Act.
8     (e) The rules adopted by the Office of Banks and Real
9 Estate relating to the Real Estate License Act of 1983, unless
10 inconsistent with the provisions of this Act, are not affected
11 by this Act, and on December 31, 1999 those rules become the
12 rules under this Act. The Office of Banks and Real Estate
13 shall, as soon as practicable, adopt new or amended rules
14 consistent with the provisions of this Act.
15     (f) This Act does not affect any discipline, suspension, or
16 termination taken under the Real Estate License Act of 1983 and
17 that discipline, suspension, or termination shall be continued
18 under this Act.
19     (g) This Act does not affect any appointments, term
20 limitations, years served, or other matters relating to
21 individuals serving on any board or council under the Real
22 Estate License Act of 1983, and these appointments, term
23 limitations, years served, and other matters shall be continued
24 under this Act.
25 (Source: P.A. 91-245, eff. 12-31-99.)
 

 

 

SB0571 - 110 - LRB095 09919 RAS 30130 b

1     (225 ILCS 454/5-10 rep.)
2     (225 ILCS 454/5-25 rep.)
3     (225 ILCS 454/5-30 rep.)
4     (225 ILCS 454/5-55 rep.)
5     (225 ILCS 454/20-80 rep.)
6     (225 ILCS 454/20-120 rep.)
7     Section 15. The Real Estate License Act of 2000 is amended
8 by repealing Sections 5-10, 5-25, 5-30, 5-55, 20-80, and
9 20-120.
 
10     Section 99. Effective date. This Act takes effect upon
11 becoming law.

 

 

SB0571 - 111 - LRB095 09919 RAS 30130 b

1 INDEX
2 Statutes amended in order of appearance
3     5 ILCS 80/4.20
4     5 ILCS 80/4.27
5     225 ILCS 454/1-10
6     225 ILCS 454/5-5
7     225 ILCS 454/5-6 new
8     225 ILCS 454/5-7 new
9     225 ILCS 454/5-10
10     225 ILCS 454/5-15
11     225 ILCS 454/5-20
12     225 ILCS 454/5-26 new
13     225 ILCS 454/5-27 new
14     225 ILCS 454/5-28 new
15     225 ILCS 454/5-35
16     225 ILCS 454/5-40
17     225 ILCS 454/5-41 new
18     225 ILCS 454/5-45
19     225 ILCS 454/5-50
20     225 ILCS 454/5-60
21     225 ILCS 454/5-65
22     225 ILCS 454/5-70
23     225 ILCS 454/5-80
24     225 ILCS 454/5-85
25     225 ILCS 454/15-65

 

 

SB0571 - 112 - LRB095 09919 RAS 30130 b

1     225 ILCS 454/20-5
2     225 ILCS 454/20-10
3     225 ILCS 454/20-20
4     225 ILCS 454/20-21 new
5     225 ILCS 454/20-22 new
6     225 ILCS 454/20-25
7     225 ILCS 454/20-30
8     225 ILCS 454/20-35
9     225 ILCS 454/20-40
10     225 ILCS 454/20-45
11     225 ILCS 454/20-50
12     225 ILCS 454/20-60
13     225 ILCS 454/20-65
14     225 ILCS 454/20-75
15     225 ILCS 454/20-85
16     225 ILCS 454/20-90
17     225 ILCS 454/20-95
18     225 ILCS 454/20-100
19     225 ILCS 454/20-110
20     225 ILCS 454/20-115
21     225 ILCS 454/25-5
22     225 ILCS 454/25-10
23     225 ILCS 454/25-13
24     225 ILCS 454/25-14
25     225 ILCS 454/25-15
26     225 ILCS 454/25-20

 

 

SB0571 - 113 - LRB095 09919 RAS 30130 b

1     225 ILCS 454/25-25
2     225 ILCS 454/25-30
3     225 ILCS 454/25-35
4     225 ILCS 454/25-37
5     225 ILCS 454/30-5
6     225 ILCS 454/30-10
7     225 ILCS 454/30-15
8     225 ILCS 454/30-25
9     225 ILCS 454/35-5
10     225 ILCS 454/5-10 rep.
11     225 ILCS 454/5-25 rep.
12     225 ILCS 454/5-30 rep.
13     225 ILCS 454/5-55 rep.
14     225 ILCS 454/20-80 rep.
15     225 ILCS 454/20-120 rep.