Full Text of SB2266 98th General Assembly
SB2266ham001 98TH GENERAL ASSEMBLY | Rep. Robert Rita Filed: 5/3/2013
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| 1 | | AMENDMENT TO SENATE BILL 2266
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2266, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Real Estate License Act of 2000 is amended | 6 | | by changing Sections 1-10, 5-27, 5-28, 5-50, 5-70, and 10-25 as | 7 | | follows:
| 8 | | (225 ILCS 454/1-10)
| 9 | | (Section scheduled to be repealed on January 1, 2020)
| 10 | | Sec. 1-10. Definitions. In this Act, unless the context | 11 | | otherwise requires:
| 12 | | "Act" means the Real Estate License Act of 2000.
| 13 | | "Address of Record" means the designated address recorded | 14 | | by the Department in the applicant's or licensee's application | 15 | | file or license file as maintained by the Department's | 16 | | licensure maintenance unit. It is the duty of the applicant or |
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| 1 | | licensee to inform the Department of any change of address, and | 2 | | those changes must be made either through the Department's | 3 | | website or by contacting the Department. | 4 | | "Advisory Council" means the Real Estate Education | 5 | | Advisory Council created
under Section 30-10 of this Act.
| 6 | | "Agency" means a relationship in which a real estate broker | 7 | | or licensee,
whether directly or through an affiliated | 8 | | licensee, represents a consumer by
the consumer's consent, | 9 | | whether express or implied, in a real property
transaction.
| 10 | | "Applicant" means any person, as defined in this Section, | 11 | | who applies to
the Department for a valid license as a real | 12 | | estate broker, real estate salesperson, or
leasing agent.
| 13 | | "Blind advertisement" means any real estate advertisement | 14 | | that does not
include the sponsoring broker's business name and | 15 | | that is used by any licensee
regarding the sale or lease of | 16 | | real estate, including his or her own, licensed
activities, or | 17 | | the hiring of any licensee under this Act. The broker's
| 18 | | business name in the case of a franchise shall include the | 19 | | franchise
affiliation as well as the name of the individual | 20 | | firm.
| 21 | | "Board" means the Real Estate Administration and | 22 | | Disciplinary Board of the Department as created by Section | 23 | | 25-10 of this Act.
| 24 | | "Branch office" means a sponsoring broker's office other | 25 | | than the sponsoring
broker's principal office.
| 26 | | "Broker" means an individual, partnership, limited |
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| 1 | | liability company,
corporation, or registered limited | 2 | | liability partnership other than a real
estate salesperson or | 3 | | leasing agent who, whether in person or through any media or | 4 | | technology, for another and for compensation, or
with the | 5 | | intention or expectation of receiving compensation, either
| 6 | | directly or indirectly:
| 7 | | (1) Sells, exchanges, purchases, rents, or leases real | 8 | | estate.
| 9 | | (2) Offers to sell, exchange, purchase, rent, or lease | 10 | | real estate.
| 11 | | (3) Negotiates, offers, attempts, or agrees to | 12 | | negotiate the sale,
exchange, purchase, rental, or leasing | 13 | | of real estate.
| 14 | | (4) Lists, offers, attempts, or agrees to list real | 15 | | estate for sale,
lease, or exchange.
| 16 | | (5) Buys, sells, offers to buy or sell, or otherwise | 17 | | deals in options on
real estate or improvements thereon.
| 18 | | (6) Supervises the collection, offer, attempt, or | 19 | | agreement
to collect rent for the use of real estate.
| 20 | | (7) Advertises or represents himself or herself as | 21 | | being engaged in the
business of buying, selling, | 22 | | exchanging, renting, or leasing real estate.
| 23 | | (8) Assists or directs in procuring or referring of | 24 | | leads or prospects, intended to
result in the sale, | 25 | | exchange, lease, or rental of real estate.
| 26 | | (9) Assists or directs in the negotiation of any |
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| 1 | | transaction intended to
result in the sale, exchange, | 2 | | lease, or rental of real estate.
| 3 | | (10) Opens real estate to the public for marketing | 4 | | purposes.
| 5 | | (11) Sells, leases, or offers for sale or lease real | 6 | | estate at
auction.
| 7 | | "Brokerage agreement" means a written or oral agreement | 8 | | between a sponsoring
broker and a consumer for licensed | 9 | | activities to be provided to a consumer in
return for | 10 | | compensation or the right to receive compensation from another.
| 11 | | Brokerage agreements may constitute either a bilateral or a | 12 | | unilateral
agreement between the broker and the broker's client | 13 | | depending upon the content
of the brokerage agreement. All | 14 | | exclusive brokerage agreements shall be in
writing.
| 15 | | "Client" means a person who is being represented by a | 16 | | licensee.
| 17 | | "Compensation" means the valuable consideration given by | 18 | | one person or entity
to another person or entity in exchange | 19 | | for the performance of some activity or
service. Compensation | 20 | | shall include the transfer of valuable consideration,
| 21 | | including without limitation the following:
| 22 | | (1) commissions;
| 23 | | (2) referral fees;
| 24 | | (3) bonuses;
| 25 | | (4) prizes;
| 26 | | (5) merchandise;
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| 1 | | (6) finder fees;
| 2 | | (7) performance of services;
| 3 | | (8) coupons or gift certificates;
| 4 | | (9) discounts;
| 5 | | (10) rebates;
| 6 | | (11) a chance to win a raffle, drawing, lottery, or | 7 | | similar game of chance
not prohibited by any other law or | 8 | | statute;
| 9 | | (12) retainer fee; or
| 10 | | (13) salary.
| 11 | | "Confidential information" means information obtained by a | 12 | | licensee from a
client during the term of a brokerage agreement | 13 | | that (i) was made confidential
by the written request or | 14 | | written instruction of the client, (ii) deals with
the | 15 | | negotiating position of the client, or (iii) is information the | 16 | | disclosure
of which could materially harm the negotiating | 17 | | position of the client, unless
at any time:
| 18 | | (1) the client permits the disclosure of information | 19 | | given by that client
by word or conduct;
| 20 | | (2) the disclosure is required by law; or
| 21 | | (3) the information becomes public from a source other | 22 | | than the licensee.
| 23 | | "Confidential information" shall not be considered to | 24 | | include material
information about the physical condition of | 25 | | the property.
| 26 | | "Consumer" means a person or entity seeking or receiving |
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| 1 | | licensed
activities.
| 2 | | "Continuing education school" means any person licensed by | 3 | | the Department as a school
for continuing education in | 4 | | accordance with Section 30-15 of this Act. | 5 | | "Coordinator" means the Coordinator of Real Estate created | 6 | | in Section 25-15 of this Act.
| 7 | | "Credit hour" means 50 minutes of classroom instruction in | 8 | | course work that
meets the requirements set forth in rules | 9 | | adopted by the Department.
| 10 | | "Customer" means a consumer who is not being represented by | 11 | | the licensee but
for whom the licensee is performing | 12 | | ministerial acts.
| 13 | | "Department" means the Department of Financial and | 14 | | Professional Regulation. | 15 | | "Designated agency" means a contractual relationship | 16 | | between a sponsoring
broker and a client under Section 15-50 of | 17 | | this Act in which one or more
licensees associated with or | 18 | | employed by the broker are designated as agent of
the client.
| 19 | | "Designated agent" means a sponsored licensee named by a | 20 | | sponsoring broker as
the legal agent of a client, as provided | 21 | | for in Section 15-50 of this Act.
| 22 | | "Dual agency" means an agency relationship in which a | 23 | | licensee is
representing both buyer and seller or both landlord | 24 | | and tenant in the same
transaction. When the agency | 25 | | relationship is a designated agency, the
question of whether | 26 | | there is a dual agency shall be determined by the agency
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| 1 | | relationships of the designated agent of the parties and not of | 2 | | the sponsoring
broker.
| 3 | | "Employee" or other derivative of the word "employee", when | 4 | | used to refer to,
describe, or delineate the relationship | 5 | | between a real estate broker and a real
estate salesperson, | 6 | | another real estate broker, or a leasing agent, shall be
| 7 | | construed to include an independent contractor relationship, | 8 | | provided that a
written agreement exists that clearly | 9 | | establishes and states the relationship.
All responsibilities | 10 | | of a broker shall remain.
| 11 | | "Escrow moneys" means all moneys, promissory notes or any | 12 | | other type or
manner of legal tender or financial consideration | 13 | | deposited with any person for
the benefit of the parties to the | 14 | | transaction. A transaction exists once an
agreement has been | 15 | | reached and an accepted real estate contract signed or lease
| 16 | | agreed to by the parties. Escrow moneys includes without | 17 | | limitation earnest
moneys and security deposits, except those | 18 | | security deposits in which the
person holding the security | 19 | | deposit is also the sole owner of the property
being leased and | 20 | | for which the security deposit is being held.
| 21 | | "Electronic means of proctoring" means a methodology | 22 | | providing assurance that the person taking a test and | 23 | | completing the answers to questions is the person seeking | 24 | | licensure or credit for continuing education and is doing so | 25 | | without the aid of a third party or other device. | 26 | | "Exclusive brokerage agreement" means a written brokerage |
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| 1 | | agreement that provides that the sponsoring broker has the sole | 2 | | right, through one or more sponsored licensees, to act as the | 3 | | exclusive designated agent or representative of the client and | 4 | | that meets the requirements of Section 15-75 of this Act.
| 5 | | "Inoperative" means a status of licensure where the | 6 | | licensee holds a current
license under this Act, but the | 7 | | licensee is prohibited from engaging in
licensed activities | 8 | | because the licensee is unsponsored or the license of the
| 9 | | sponsoring broker with whom the licensee is associated or by | 10 | | whom he or she is
employed is currently expired, revoked, | 11 | | suspended, or otherwise rendered
invalid under this Act.
| 12 | | "Interactive delivery method" means delivery of a course by | 13 | | an instructor through a medium allowing for 2-way communication | 14 | | between the instructor and a student in which either can | 15 | | initiate or respond to questions. | 16 | | "Leads" means the name or names of a potential buyer, | 17 | | seller, lessor, lessee, or client of a licensee. | 18 | | "Leasing Agent" means a person who is employed by a real | 19 | | estate broker to
engage in licensed activities limited to | 20 | | leasing residential real estate who
has obtained a license as | 21 | | provided for in Section 5-5 of this Act.
| 22 | | "License" means the document issued by the Department | 23 | | certifying that the person named
thereon has fulfilled all | 24 | | requirements prerequisite to licensure under this
Act.
| 25 | | "Licensed activities" means those activities listed in the | 26 | | definition of
"broker" under this Section.
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| 1 | | "Licensee" means any person, as defined in this Section, | 2 | | who holds a
valid unexpired license as a real estate broker, | 3 | | real estate salesperson, or
leasing agent.
| 4 | | "Listing presentation" means a communication between a | 5 | | real estate broker or
salesperson and a consumer in which the | 6 | | licensee is attempting to secure a
brokerage agreement with the | 7 | | consumer to market the consumer's real estate for
sale or | 8 | | lease.
| 9 | | "Managing broker" means a broker who has supervisory | 10 | | responsibilities for
licensees in one or, in the case of a | 11 | | multi-office company, more than one
office and who has been | 12 | | appointed as such by the sponsoring broker.
| 13 | | "Medium of advertising" means any method of communication | 14 | | intended to
influence the general public to use or purchase a | 15 | | particular good or service or
real estate.
| 16 | | "Ministerial acts" means those acts that a licensee may | 17 | | perform for a
consumer that are informative or clerical in | 18 | | nature and do not rise to the
level of active representation on | 19 | | behalf of a consumer. Examples of these acts
include without | 20 | | limitation (i) responding to phone inquiries by consumers as to
| 21 | | the availability and pricing of brokerage services, (ii) | 22 | | responding to phone
inquiries from a consumer concerning the | 23 | | price or location of property, (iii)
attending an open house | 24 | | and responding to questions about the property from a
consumer, | 25 | | (iv) setting an appointment to view property, (v) responding to
| 26 | | questions of consumers walking into a licensee's office |
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| 1 | | concerning brokerage
services offered or particular | 2 | | properties, (vi) accompanying an appraiser,
inspector, | 3 | | contractor, or similar third party on a visit to a property, | 4 | | (vii)
describing a property or the property's condition in | 5 | | response to a consumer's
inquiry, (viii) completing business or | 6 | | factual information for a consumer on an
offer or contract to | 7 | | purchase on behalf of a client, (ix) showing a client
through a | 8 | | property being sold by an owner on his or her own behalf, or | 9 | | (x)
referral to another broker or service provider.
| 10 | | "Office" means a real estate broker's place of business | 11 | | where the general
public is invited to transact business and | 12 | | where records may be maintained and
licenses displayed, whether | 13 | | or not it is the broker's principal place of
business.
| 14 | | "Person" means and includes individuals, entities, | 15 | | corporations, limited
liability companies, registered limited | 16 | | liability partnerships, and
partnerships, foreign or domestic, | 17 | | except that when the context otherwise
requires, the term may | 18 | | refer to a single individual or other described entity.
| 19 | | "Personal assistant" means a licensed or unlicensed person | 20 | | who has been hired
for the purpose of aiding or assisting a | 21 | | sponsored licensee in the performance
of the sponsored | 22 | | licensee's job.
| 23 | | "Pocket card" means the card issued by the Department to | 24 | | signify that the person named
on the card is currently licensed | 25 | | under this Act.
| 26 | | "Pre-license school" means a school licensed by the |
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| 1 | | Department offering courses in
subjects related to real estate | 2 | | transactions, including the subjects upon
which an applicant is | 3 | | examined in determining fitness to receive a license.
| 4 | | "Pre-renewal period" means the period between the date of | 5 | | issue of a
currently valid license and the license's expiration | 6 | | date.
| 7 | | "Proctor" means any person, including, but not limited to, | 8 | | an instructor, who has a written agreement to administer | 9 | | examinations fairly and impartially with a licensed | 10 | | pre-license school or a licensed continuing education school. | 11 | | "Real estate" means and includes leaseholds as well as any | 12 | | other interest or
estate in land, whether corporeal, | 13 | | incorporeal, freehold, or non-freehold,
including timeshare | 14 | | interests, and whether the real estate is situated in this
| 15 | | State or elsewhere.
| 16 | | "Regular employee" means a person working an average of 20 | 17 | | hours per week for a person or entity who would be considered | 18 | | as an employee under the Internal Revenue Service eleven main | 19 | | tests in three categories being behavioral control, financial | 20 | | control and the type of relationship of the parties, formerly | 21 | | the twenty factor test.
| 22 | | "Salesperson" means any individual, other than a real | 23 | | estate broker or
leasing agent, who is employed by a real | 24 | | estate broker or is associated by
written agreement with a real | 25 | | estate broker as an independent contractor and
participates in | 26 | | any activity described in the definition of "broker" under this
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| 1 | | Section.
| 2 | | "Secretary" means the Secretary of the Department of | 3 | | Financial and Professional Regulation, or a person authorized | 4 | | by the Secretary to act in the Secretary's stead. | 5 | | "Sponsoring broker" means the broker who has issued a | 6 | | sponsor card to a
licensed salesperson, another licensed | 7 | | broker, or a leasing agent.
| 8 | | "Sponsor card" means the temporary permit issued by the | 9 | | sponsoring real
estate broker certifying that the real estate | 10 | | broker, real estate salesperson,
or leasing agent named thereon | 11 | | is employed by or associated by written
agreement with the | 12 | | sponsoring real estate broker, as provided for in Section
5-40 | 13 | | of this Act.
| 14 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 15 | | (225 ILCS 454/5-27) | 16 | | (Section scheduled to be repealed on January 1, 2020) | 17 | | Sec. 5-27. Requirements for licensure as a broker. | 18 | | (a) Every applicant for licensure as a broker must meet the | 19 | | following qualifications: | 20 | | (1) Be at least 21 years of age. After April 30, 2011, | 21 | | the minimum age of 21 years shall be waived for any person | 22 | | seeking a license as a broker who has attained the age of | 23 | | 18 and can provide evidence of the successful completion of | 24 | | at least 4 semesters of post-secondary school study as a | 25 | | full-time student or the equivalent, with major emphasis on |
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| 1 | | real estate courses, in a school approved by the | 2 | | Department; | 3 | | (2) Be of good moral character; | 4 | | (3) Successfully complete a 4-year course of study in a | 5 | | high school or secondary school approved by the Illinois | 6 | | State Board of Education or an equivalent course of study | 7 | | as determined by an examination conducted by the Illinois | 8 | | State Board of Education which shall be verified under oath | 9 | | by the applicant; | 10 | | (4) Prior to May 1, 2011, provide (i) satisfactory | 11 | | evidence of having completed at least 120 classroom hours, | 12 | | 45 of which shall be those hours required to obtain a | 13 | | salesperson's license plus 15 hours in brokerage | 14 | | administration courses, in real estate courses approved by | 15 | | the Advisory Council or (ii) for applicants who currently | 16 | | hold a valid real estate salesperson's license, give | 17 | | satisfactory evidence of having completed at least 75 hours | 18 | | in real estate courses, not including the courses that are | 19 | | required to obtain a salesperson's license, approved by the | 20 | | Advisory Council; | 21 | | (5) After April 30, 2011, provide satisfactory | 22 | | evidence of having completed 90 hours of instruction in | 23 | | real estate courses approved by the Advisory Council, 15 | 24 | | hours of which must consist of situational and case studies | 25 | | presented in the classroom or by other interactive delivery | 26 | | method presenting instruction and real time discussion |
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| 1 | | between the instructor and the students; | 2 | | (6) Personally take and pass a written examination | 3 | | authorized by the Department; | 4 | | (7) Present a valid application for issuance of a | 5 | | license accompanied by a sponsor card and the fees | 6 | | specified by rule. | 7 | | (b) The requirements specified in items (4) and (5) of | 8 | | subsection (a) of this Section do not apply to applicants who | 9 | | are currently admitted to practice law by the Supreme Court of | 10 | | Illinois and are currently in active standing. | 11 | | (c) No applicant shall engage in any of the activities | 12 | | covered by this Act until a valid sponsor card has been issued | 13 | | to such applicant. The sponsor card shall be valid for a | 14 | | maximum period of 45 days after the date of issuance unless | 15 | | extended for good cause as provided by rule. | 16 | | (d) All licenses should be readily available to the public | 17 | | at their place of business.
| 18 | | (e) An individual holding an active license as a managing | 19 | | broker may return the license to the Department along with a | 20 | | form provided by the Department and shall be issued a broker's | 21 | | license in exchange. Any individual obtaining a broker's | 22 | | license under this subsection (e) shall be considered as having | 23 | | obtained a broker's license by education and passing the | 24 | | required test and shall be treated as such in determining | 25 | | compliance with this Act. | 26 | | (Source: P.A. 96-856, eff. 12-31-09.) |
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| 1 | | (225 ILCS 454/5-28) | 2 | | (Section scheduled to be repealed on January 1, 2020) | 3 | | Sec. 5-28. Requirements for licensure as a managing broker. | 4 | | (a) Effective May 1, 2012, every applicant for licensure as | 5 | | a managing broker must meet the following qualifications: | 6 | | (1) be at least 21 years of age; | 7 | | (2) be of good moral character; | 8 | | (3) have been licensed at least 2 out of the preceding | 9 | | 3 years as a real estate broker or salesperson; | 10 | | (4) successfully complete a 4-year course of study in | 11 | | high school or secondary school approved by the Illinois | 12 | | State Board of Education or an equivalent course of study | 13 | | as determined by an examination conducted by the Illinois | 14 | | State Board of Education, which shall be verified under | 15 | | oath by the applicant; | 16 | | (5) provide satisfactory evidence of having completed | 17 | | at least 165 hours, 120 of which shall be those hours | 18 | | required pre and post-licensure to obtain a broker's | 19 | | license, and 45 additional hours completed within the year | 20 | | immediately preceding the filing of an application for a | 21 | | managing broker's license, which hours shall focus on | 22 | | brokerage administration and management and include at | 23 | | least 15 hours in the classroom or by other interactive | 24 | | delivery method presenting instructional and real time | 25 | | discussion between the instructor and the students; |
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| 1 | | (6) personally take and pass a written examination | 2 | | authorized by the Department; and | 3 | | (7) present a valid application for issuance of a | 4 | | license accompanied by a sponsor card, an appointment as a | 5 | | managing broker, and the fees specified by rule. | 6 | | (b) The requirements specified in item (5) of subsection | 7 | | (a) of this Section do not apply to applicants who are | 8 | | currently admitted to practice law by the Supreme Court of | 9 | | Illinois and are currently in active standing. | 10 | | (c) No applicant shall act as a managing broker for more | 11 | | than 90 days after an appointment as a managing broker has been | 12 | | filed with the Department without obtaining a managing broker's | 13 | | license.
| 14 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 15 | | (225 ILCS 454/5-50)
| 16 | | (Section scheduled to be repealed on January 1, 2020)
| 17 | | Sec. 5-50. Expiration and renewal of managing broker, | 18 | | broker, salesperson, or
leasing agent license; sponsoring | 19 | | broker;
register of licensees; pocket card. | 20 | | (a) The expiration date and renewal period for each license | 21 | | issued under
this Act shall be set by
rule, except that the | 22 | | first renewal period ending after the effective date of this | 23 | | Act for those licensed as a salesperson shall be extended | 24 | | through April 30, 2012. Except as otherwise provided in this | 25 | | Section, the holder of
a
license may renew
the license within |
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| 1 | | 90 days preceding the expiration date thereof by completing the | 2 | | continuing education required by this Act and paying the
fees | 3 | | specified by
rule.
| 4 | | (b) An individual whose first license is that of a broker | 5 | | received after April 30, 2011, must provide evidence of having | 6 | | completed 30 hours of post-license education in courses | 7 | | approved by the Advisory Council, 15 hours of which must | 8 | | consist of situational and case studies presented in the | 9 | | classroom or by other interactive delivery method presenting | 10 | | instruction and real time discussion between the instructor and | 11 | | the students, and personally take and pass an examination | 12 | | approved by the Department prior to the first renewal of their | 13 | | broker's license.
| 14 | | (c) Any salesperson until April 30, 2011 or any managing | 15 | | broker, broker, or leasing agent whose license under this Act | 16 | | has expired shall be eligible to renew the license during the | 17 | | 2-year period following the expiration date, provided the | 18 | | managing broker, broker, salesperson, or leasing agent pays the | 19 | | fees as prescribed by rule and completes continuing education | 20 | | and other requirements provided for by the Act or by rule. | 21 | | Beginning on May 1, 2012, a managing broker licensee, broker, | 22 | | or leasing agent whose license has been expired for more than 2 | 23 | | years but less than 5 years may have it restored by (i) | 24 | | applying to the Department, (ii) paying the required fee, (iii) | 25 | | completing the continuing education requirements for the most | 26 | | recent pre-renewal period that ended prior to the date of the |
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| 1 | | application for reinstatement, and (iv) filing acceptable | 2 | | proof of fitness to have his or her license restored, as set by | 3 | | rule. A managing broker, broker, or leasing agent whose license | 4 | | has been expired for more than 5 years shall be required to | 5 | | meet the requirements for a new license.
| 6 | | (d) Notwithstanding any other provisions of this Act to the | 7 | | contrary, any managing broker, broker, salesperson, or leasing | 8 | | agent whose license expired while he or she was (i) on active | 9 | | duty with the Armed Forces of the United States or called into | 10 | | service or training by the state militia, (ii) engaged in | 11 | | training or education under the supervision of the United | 12 | | States preliminary to induction into military service, or (iii) | 13 | | serving as the Coordinator of Real Estate in the State of | 14 | | Illinois or as an employee of the Department may have his or | 15 | | her license renewed, reinstated or restored without paying any | 16 | | lapsed renewal fees if within 2 years after the termination of | 17 | | the service, training or education by furnishing the Department | 18 | | with satisfactory evidence of service, training, or education | 19 | | and it has been terminated under honorable conditions. | 20 | | (e) The Department shall establish and
maintain a register | 21 | | of all persons currently licensed by the
State and shall issue | 22 | | and prescribe a form of pocket card. Upon payment by a licensee | 23 | | of the appropriate fee as prescribed by
rule for engagement in | 24 | | the activity for which the licensee is
qualified and holds a | 25 | | license for the current period, the
Department shall issue a | 26 | | pocket card to the licensee. The
pocket card shall be |
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| 1 | | verification that the required fee for the
current period has | 2 | | been paid and shall indicate that the person named thereon is | 3 | | licensed for the current renewal period as a
managing broker, | 4 | | broker, salesperson, or leasing agent as the
case may be. The | 5 | | pocket card shall further indicate that the
person named | 6 | | thereon is authorized by the Department to
engage in the | 7 | | licensed activity appropriate for his or her
status (managing | 8 | | broker, broker, salesperson, or leasing
agent). Each licensee | 9 | | shall carry on his or her person his or
her pocket card or, if | 10 | | such pocket card has not yet been
issued, a properly issued | 11 | | sponsor card when engaging in any
licensed activity and shall | 12 | | display the same on demand. | 13 | | (f) The Department shall provide to the sponsoring broker a | 14 | | notice of renewal for all sponsored licensees by mailing the | 15 | | notice to the sponsoring broker's address of record, or, at the | 16 | | Department's discretion, by an electronic means as provided for | 17 | | by rule. | 18 | | (g) Upon request from the sponsoring broker, the Department | 19 | | shall make available to the sponsoring broker, either by mail | 20 | | or by an electronic means at the discretion of the Department, | 21 | | a listing of licensees under this Act who, according to the | 22 | | records of the Department, are sponsored by that broker. Every | 23 | | licensee associated with or employed by a broker whose license | 24 | | is revoked, suspended, terminated, or expired shall be | 25 | | considered as inoperative until such time as the sponsoring | 26 | | broker's license is reinstated or renewed, or the licensee |
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| 1 | | changes employment as set forth in subsection (c) of Section | 2 | | 5-40 of this Act. | 3 | | (Source: P.A. 96-856, eff. 12-31-09; 96-989, eff. 1-1-11.)
| 4 | | (225 ILCS 454/5-70)
| 5 | | (Section scheduled to be repealed on January 1, 2020)
| 6 | | Sec. 5-70. Continuing education requirement; managing | 7 | | broker, broker, or salesperson.
| 8 | | (a) The requirements of this Section apply to all managing | 9 | | brokers, brokers, and salespersons.
| 10 | | (b) Except as otherwise
provided in this Section, each
| 11 | | person who applies for renewal of his or her license as a | 12 | | managing broker, real
estate broker, or real
estate salesperson | 13 | | must successfully complete 6 hours of real estate continuing | 14 | | education
courses approved by
the Advisory Council for each | 15 | | year of the pre-renewal period. Broker licensees must | 16 | | successfully complete a 6-hour broker management continuing | 17 | | education course approved by the Department for the pre-renewal | 18 | | period ending April 30, 2010. In addition, beginning with the | 19 | | pre-renewal period for managing broker licensees that begins | 20 | | after the effective date of this Act, those licensees renewing | 21 | | or obtaining a managing broker's license must successfully | 22 | | complete a 12-hour broker management continuing education | 23 | | course approved by the Department each pre-renewal period. The | 24 | | broker management continuing education course must be | 25 | | completed in the classroom or by other interactive delivery |
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| 1 | | method presenting instruction and real time discussion between | 2 | | the instructor and the students. Successful completion of the | 3 | | course shall include achieving a passing score as provided by | 4 | | rule on a test developed and administered in accordance with | 5 | | rules adopted by the Department. No
license may be renewed
| 6 | | except upon the successful completion of the required courses | 7 | | or their
equivalent or upon a waiver
of those requirements for | 8 | | good cause shown as determined by the Secretary
with the
| 9 | | recommendation of the Advisory Council.
The requirements of | 10 | | this Article are applicable to all managing brokers, brokers, | 11 | | and salespersons
except those brokers
and salespersons who, | 12 | | during the pre-renewal period:
| 13 | | (1) serve in the armed services of the United States;
| 14 | | (2) serve as an elected State or federal official;
| 15 | | (3) serve as a full-time employee of the Department; or
| 16 | | (4) are admitted to practice law pursuant to Illinois | 17 | | Supreme Court rule.
| 18 | | (c) A person licensed as a salesperson as of April 30, 2011 | 19 | | shall not be required to complete the 18 hours of continuing | 20 | | education for the pre-renewal period ending April 30, 2012 if | 21 | | that person takes the 30-hour post-licensing course to obtain a | 22 | | broker's license. A person licensed as a broker as of April 30, | 23 | | 2011 shall not be required to complete the 12 hours of broker | 24 | | management continuing education for the pre-renewal period | 25 | | ending April 30, 2012, unless that person passes the | 26 | | proficiency exam provided for in Section 5-47 of this Act to |
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| 1 | | qualify for a managing broker's license. | 2 | | (d) A
person receiving an initial license
during the 90 | 3 | | days before the renewal date shall not be
required to complete | 4 | | the continuing
education courses provided for in subsection (b) | 5 | | of this
Section as a condition of initial license renewal.
| 6 | | (e) The continuing education requirement for salespersons, | 7 | | brokers and managing brokers shall
consist of a core
curriculum | 8 | | and an elective curriculum, to be established by the Advisory
| 9 | | Council. In meeting the
continuing education requirements of | 10 | | this Act, at least 3 hours per year or
their equivalent, 6 | 11 | | hours for each two-year pre-renewal period, shall
be required | 12 | | to be completed in the core curriculum.
In establishing the | 13 | | core curriculum, the Advisory Council shall consider
subjects | 14 | | that will
educate licensees on recent changes in applicable | 15 | | laws and new laws and refresh
the licensee on areas
of the | 16 | | license law and the Department policy that the Advisory Council | 17 | | deems appropriate,
and any other
areas that the Advisory | 18 | | Council deems timely and applicable in order to prevent
| 19 | | violations of this Act
and to protect the public.
In | 20 | | establishing the elective curriculum, the Advisory Council | 21 | | shall consider
subjects that cover
the various aspects of the | 22 | | practice of real estate that are covered under the
scope of | 23 | | this Act.
However, the elective curriculum shall not include | 24 | | any offerings referred to in
Section 5-85 of this Act.
| 25 | | (f) The subject areas of continuing education courses | 26 | | approved by the
Advisory Council may
include without limitation |
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| 1 | | the following:
| 2 | | (1) license law and escrow;
| 3 | | (2) antitrust;
| 4 | | (3) fair housing;
| 5 | | (4) agency;
| 6 | | (5) appraisal;
| 7 | | (6) property management;
| 8 | | (7) residential brokerage;
| 9 | | (8) farm property management;
| 10 | | (9) rights and duties of sellers, buyers, and brokers;
| 11 | | (10) commercial brokerage and leasing; and
| 12 | | (11) real estate financing.
| 13 | | (g) In lieu of credit for those courses listed in | 14 | | subsection (f) of this
Section, credit may be
earned for | 15 | | serving as a licensed instructor in an approved course of | 16 | | continuing
education. The
amount of credit earned for teaching | 17 | | a course shall be the amount of continuing
education credit for
| 18 | | which the course is approved for licensees taking the course.
| 19 | | (h) Credit hours may be earned for self-study programs | 20 | | approved by the
Advisory Council.
| 21 | | (i) A broker or salesperson may earn credit for a specific | 22 | | continuing
education course only
once during the prerenewal | 23 | | period.
| 24 | | (j) No more than 6 hours of continuing education credit may | 25 | | be taken or earned in one
calendar day.
| 26 | | (k) To promote the offering of a uniform and consistent |
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| 1 | | course content, the Department may provide for the development | 2 | | of a single broker management course to be offered by all | 3 | | continuing education providers who choose to offer the broker | 4 | | management continuing education course. The Department may | 5 | | contract for the development of the 12-hour broker management | 6 | | continuing education course with an outside vendor or | 7 | | consultant and, if the course is developed in this manner, the | 8 | | Department or the outside consultant shall license the use of | 9 | | that course to all approved continuing education providers who | 10 | | wish to provide the course.
| 11 | | (l) Except as specifically provided in this Act, continuing | 12 | | education credit hours may not be earned for completion of pre | 13 | | or post-license courses. The approved 30-hour post-license | 14 | | course for broker licensees shall satisfy the continuing | 15 | | education requirement for the pre-renewal period in which the | 16 | | course is taken. The approved 45-hour brokerage administration | 17 | | and management course shall satisfy the 12-hour broker | 18 | | management continuing education requirement for the | 19 | | pre-renewal period in which the course is taken. | 20 | | (Source: P.A. 96-856, eff. 12-31-09; 97-1002, eff. 8-17-12.)
| 21 | | (225 ILCS 454/10-25)
| 22 | | (Section scheduled to be repealed on January 1, 2020)
| 23 | | Sec. 10-25. Expiration of brokerage agreement. No licensee | 24 | | shall obtain any written brokerage agreement that does not | 25 | | either provide
for automatic
expiration within a definite |
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| 1 | | period of time or provide the client with a right to terminate | 2 | | the agreement annually by giving no more than 30 days' prior | 3 | | written notice . No notice of termination at the
final | 4 | | expiration thereof
shall be required. Any written brokerage | 5 | | agreement not containing such a provision
for automatic
| 6 | | expiration shall be void. When the license of any sponsoring | 7 | | broker is
suspended or revoked, any
brokerage agreement with | 8 | | the sponsoring broker shall be deemed to expire upon
the | 9 | | effective date
of the suspension or revocation.
| 10 | | (Source: P.A. 91-245, eff. 12-31-99 .)
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.".
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