Full Text of HB3803 99th General Assembly
HB3803 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3803 Introduced , by Rep. Mark Batinick SYNOPSIS AS INTRODUCED: |
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Amends the Real Estate License Act of 2000. Removes references to salespersons under the Act (salesperson licenses were transitioned to broker licenses in 2011). Repeals provisions concerning transitions in licensure. Makes changes in provisions concerning definitions, leasing agent licenses, necessity of licenses, exemption from licensure, broker licenses, managing broker licenses, real estate auction certification, examinations, change of address, expiration of licenses, managing brokers licensed in other states, continuing education, compensation, legislative intent, penalties for unlicensed practice, disciplinary actions, injunctions, violations, the Real Estate Recovery Fund, the Real Estate Administration and Disciplinary Board, the Real Estate Research and Education Fund, licensing of continuing education schools, and savings provisions.
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| | A BILL FOR |
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| 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 Real Estate License Act of 2000 is amended | 5 | | by changing Sections 1-10, 5-5, 5-10, 5-15, 5-20, 5-26, 5-27, | 6 | | 5-28, 5-32, 5-35, 5-41, 5-50, 5-60, 5-70, 10-10, 10-15, 15-5, | 7 | | 20-10, 20-20, 20-21, 20-22, 20-85, 25-10, 25-25, 30-15, and | 8 | | 35-5 as follows:
| 9 | | (225 ILCS 454/1-10)
| 10 | | (Section scheduled to be repealed on January 1, 2020)
| 11 | | Sec. 1-10. Definitions. In this Act, unless the context | 12 | | otherwise requires:
| 13 | | "Act" means the Real Estate License Act of 2000.
| 14 | | "Address of Record" means the designated address recorded | 15 | | by the Department in the applicant's or licensee's application | 16 | | file or license file as maintained by the Department's | 17 | | licensure maintenance unit. It is the duty of the applicant or | 18 | | licensee to inform the Department of any change of address, and | 19 | | those changes must be made either through the Department's | 20 | | website or by contacting the Department. | 21 | | "Advisory Council" means the Real Estate Education | 22 | | Advisory Council created
under Section 30-10 of this Act.
| 23 | | "Agency" means a relationship in which a real estate broker |
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| 1 | | or licensee,
whether directly or through an affiliated | 2 | | licensee, represents a consumer by
the consumer's consent, | 3 | | whether express or implied, in a real property
transaction.
| 4 | | "Applicant" means any person, as defined in this Section, | 5 | | who applies to
the Department for a valid license as a managing | 6 | | real estate broker, broker real estate salesperson , or
leasing | 7 | | agent.
| 8 | | "Blind advertisement" means any real estate advertisement | 9 | | that does not
include the sponsoring broker's business name and | 10 | | that is used by any licensee
regarding the sale or lease of | 11 | | real estate, including his or her own, licensed
activities, or | 12 | | the hiring of any licensee under this Act. The broker's
| 13 | | business name in the case of a franchise shall include the | 14 | | franchise
affiliation as well as the name of the individual | 15 | | firm.
| 16 | | "Board" means the Real Estate Administration and | 17 | | Disciplinary Board of the Department as created by Section | 18 | | 25-10 of this Act.
| 19 | | "Branch office" means a sponsoring broker's office other | 20 | | than the sponsoring
broker's principal office.
| 21 | | "Broker" means an individual, partnership, limited | 22 | | liability company,
corporation, or registered limited | 23 | | liability partnership other than a real
estate salesperson or | 24 | | leasing agent who, whether in person or through any media or | 25 | | technology, for another and for compensation, or
with the | 26 | | intention or expectation of receiving compensation, either
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| 1 | | directly or indirectly:
| 2 | | (1) Sells, exchanges, purchases, rents, or leases real | 3 | | estate.
| 4 | | (2) Offers to sell, exchange, purchase, rent, or lease | 5 | | real estate.
| 6 | | (3) Negotiates, offers, attempts, or agrees to | 7 | | negotiate the sale,
exchange, purchase, rental, or leasing | 8 | | of real estate.
| 9 | | (4) Lists, offers, attempts, or agrees to list real | 10 | | estate for sale,
rent, lease, or exchange.
| 11 | | (5) Buys, sells, offers to buy or sell, or otherwise | 12 | | deals in options on
real estate or improvements thereon.
| 13 | | (6) Supervises the collection, offer, attempt, or | 14 | | agreement
to collect rent for the use of real estate.
| 15 | | (7) Advertises or represents himself or herself as | 16 | | being engaged in the
business of buying, selling, | 17 | | exchanging, renting, or leasing real estate.
| 18 | | (8) Assists or directs in procuring or referring of | 19 | | leads or prospects, intended to
result in the sale, | 20 | | exchange, lease, or rental of real estate.
| 21 | | (9) Assists or directs in the negotiation of any | 22 | | transaction intended to
result in the sale, exchange, | 23 | | lease, or rental of real estate.
| 24 | | (10) Opens real estate to the public for marketing | 25 | | purposes.
| 26 | | (11) Sells, leases, or offers for sale or lease real |
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| 1 | | estate at
auction.
| 2 | | (12) Prepares or provides a broker price opinion or | 3 | | comparative market analysis as those terms are defined in | 4 | | this Act, pursuant to the provisions of Section 10-45 of | 5 | | this Act. | 6 | | "Brokerage agreement" means a written or oral agreement | 7 | | between a sponsoring
broker and a consumer for licensed | 8 | | activities to be provided to a consumer in
return for | 9 | | compensation or the right to receive compensation from another.
| 10 | | Brokerage agreements may constitute either a bilateral or a | 11 | | unilateral
agreement between the broker and the broker's client | 12 | | depending upon the content
of the brokerage agreement. All | 13 | | exclusive brokerage agreements shall be in
writing.
| 14 | | "Broker price opinion" means an estimate or analysis of the | 15 | | probable selling price of a particular interest in real estate, | 16 | | which may provide a varying level of detail about the | 17 | | property's condition, market, and neighborhood and information | 18 | | on comparable sales. The activities of a real estate broker or | 19 | | managing broker engaging in the ordinary course of business as | 20 | | a broker, as defined in this Section, shall not be considered a | 21 | | broker price opinion if no compensation is paid to the broker | 22 | | or managing broker, other than compensation based upon the sale | 23 | | or rental of real estate. | 24 | | "Client" means a person who is being represented by a | 25 | | licensee.
| 26 | | "Comparative market analysis" is an analysis or opinion |
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| 1 | | regarding pricing, marketing, or financial aspects relating to | 2 | | a specified interest or interests in real estate that may be | 3 | | based upon an analysis of comparative market data, the | 4 | | expertise of the real estate broker or managing broker, and | 5 | | such other factors as the broker or managing broker may deem | 6 | | appropriate in developing or preparing such analysis or | 7 | | opinion. The activities of a real estate broker or managing | 8 | | broker engaging in the ordinary course of business as a broker, | 9 | | as defined in this Section, shall not be considered a | 10 | | comparative market analysis if no compensation is paid to the | 11 | | broker or managing broker, other than compensation based upon | 12 | | the sale or rental of real estate. | 13 | | "Compensation" means the valuable consideration given by | 14 | | one person or entity
to another person or entity in exchange | 15 | | for the performance of some activity or
service. Compensation | 16 | | shall include the transfer of valuable consideration,
| 17 | | including without limitation the following:
| 18 | | (1) commissions;
| 19 | | (2) referral fees;
| 20 | | (3) bonuses;
| 21 | | (4) prizes;
| 22 | | (5) merchandise;
| 23 | | (6) finder fees;
| 24 | | (7) performance of services;
| 25 | | (8) coupons or gift certificates;
| 26 | | (9) discounts;
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| 1 | | (10) rebates;
| 2 | | (11) a chance to win a raffle, drawing, lottery, or | 3 | | similar game of chance
not prohibited by any other law or | 4 | | statute;
| 5 | | (12) retainer fee; or
| 6 | | (13) salary.
| 7 | | "Confidential information" means information obtained by a | 8 | | licensee from a
client during the term of a brokerage agreement | 9 | | that (i) was made confidential
by the written request or | 10 | | written instruction of the client, (ii) deals with
the | 11 | | negotiating position of the client, or (iii) is information the | 12 | | disclosure
of which could materially harm the negotiating | 13 | | position of the client, unless
at any time:
| 14 | | (1) the client permits the disclosure of information | 15 | | given by that client
by word or conduct;
| 16 | | (2) the disclosure is required by law; or
| 17 | | (3) the information becomes public from a source other | 18 | | than the licensee.
| 19 | | "Confidential information" shall not be considered to | 20 | | include material
information about the physical condition of | 21 | | the property.
| 22 | | "Consumer" means a person or entity seeking or receiving | 23 | | licensed
activities.
| 24 | | "Continuing education school" means any person licensed by | 25 | | the Department as a school
for continuing education in | 26 | | accordance with Section 30-15 of this Act. |
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| 1 | | "Coordinator" means the Coordinator of Real Estate created | 2 | | in Section 25-15 of this Act.
| 3 | | "Credit hour" means 50 minutes of classroom instruction in | 4 | | course work that
meets the requirements set forth in rules | 5 | | adopted by the Department.
| 6 | | "Customer" means a consumer who is not being represented by | 7 | | the licensee but
for whom the licensee is performing | 8 | | ministerial acts.
| 9 | | "Department" means the Department of Financial and | 10 | | Professional Regulation. | 11 | | "Designated agency" means a contractual relationship | 12 | | between a sponsoring
broker and a client under Section 15-50 of | 13 | | this Act in which one or more
licensees associated with or | 14 | | employed by the broker are designated as agent of
the client.
| 15 | | "Designated agent" means a sponsored licensee named by a | 16 | | sponsoring broker as
the legal agent of a client, as provided | 17 | | for in Section 15-50 of this Act.
| 18 | | "Dual agency" means an agency relationship in which a | 19 | | licensee is
representing both buyer and seller or both landlord | 20 | | and tenant in the same
transaction. When the agency | 21 | | relationship is a designated agency, the
question of whether | 22 | | there is a dual agency shall be determined by the agency
| 23 | | relationships of the designated agent of the parties and not of | 24 | | the sponsoring
broker.
| 25 | | "Employee" or other derivative of the word "employee", when | 26 | | used to refer to,
describe, or delineate the relationship |
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| 1 | | between a real estate broker and a real
estate salesperson, | 2 | | another real estate broker, or a leasing agent, shall be
| 3 | | construed to include an independent contractor relationship, | 4 | | provided that a
written agreement exists that clearly | 5 | | establishes and states the relationship.
All responsibilities | 6 | | of a broker shall remain.
| 7 | | "Escrow moneys" means all moneys, promissory notes or any | 8 | | other type or
manner of legal tender or financial consideration | 9 | | deposited with any person for
the benefit of the parties to the | 10 | | transaction. A transaction exists once an
agreement has been | 11 | | reached and an accepted real estate contract signed or lease
| 12 | | agreed to by the parties. Escrow moneys includes without | 13 | | limitation earnest
moneys and security deposits, except those | 14 | | security deposits in which the
person holding the security | 15 | | deposit is also the sole owner of the property
being leased and | 16 | | for which the security deposit is being held.
| 17 | | "Electronic means of proctoring" means a methodology | 18 | | providing assurance that the person taking a test and | 19 | | completing the answers to questions is the person seeking | 20 | | licensure or credit for continuing education and is doing so | 21 | | without the aid of a third party or other device. | 22 | | "Exclusive brokerage agreement" means a written brokerage | 23 | | agreement that provides that the sponsoring broker has the sole | 24 | | right, through one or more sponsored licensees, to act as the | 25 | | exclusive designated agent or representative of the client and | 26 | | that meets the requirements of Section 15-75 of this Act.
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| 1 | | "Inoperative" means a status of licensure where the | 2 | | licensee holds a current
license under this Act, but the | 3 | | licensee is prohibited from engaging in
licensed activities | 4 | | because the licensee is unsponsored or the license of the
| 5 | | sponsoring broker with whom the licensee is associated or by | 6 | | whom he or she is
employed is currently expired, revoked, | 7 | | suspended, or otherwise rendered
invalid under this Act.
| 8 | | "Interactive delivery method" means delivery of a course by | 9 | | an instructor through a medium allowing for 2-way communication | 10 | | between the instructor and a student in which either can | 11 | | initiate or respond to questions. | 12 | | "Leads" means the name or names of a potential buyer, | 13 | | seller, lessor, lessee, or client of a licensee. | 14 | | "Leasing Agent" means a person who is employed by a real | 15 | | estate broker to
engage in licensed activities limited to | 16 | | leasing residential real estate who
has obtained a license as | 17 | | provided for in Section 5-5 of this Act.
| 18 | | "License" means the document issued by the Department | 19 | | certifying that the person named
thereon has fulfilled all | 20 | | requirements prerequisite to licensure under this
Act.
| 21 | | "Licensed activities" means those activities listed in the | 22 | | definition of
"broker" under this Section.
| 23 | | "Licensee" means any person, as defined in this Section, | 24 | | who holds a
valid unexpired license as a managing real estate | 25 | | broker, broker real estate salesperson , or
leasing agent.
| 26 | | "Listing presentation" means a communication between a |
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| 1 | | managing real estate broker or
broker salesperson and a | 2 | | consumer in which the licensee is attempting to secure a
| 3 | | brokerage agreement with the consumer to market the consumer's | 4 | | real estate for
sale or lease.
| 5 | | "Managing broker" means a broker who has supervisory | 6 | | responsibilities for
licensees in one or, in the case of a | 7 | | multi-office company, more than one
office and who has been | 8 | | appointed as such by the sponsoring broker.
| 9 | | "Medium of advertising" means any method of communication | 10 | | intended to
influence the general public to use or purchase a | 11 | | particular good or service or
real estate.
| 12 | | "Ministerial acts" means those acts that a licensee may | 13 | | perform for a
consumer that are informative or clerical in | 14 | | nature and do not rise to the
level of active representation on | 15 | | behalf of a consumer. Examples of these acts
include without | 16 | | limitation (i) responding to phone inquiries by consumers as to
| 17 | | the availability and pricing of brokerage services, (ii) | 18 | | responding to phone
inquiries from a consumer concerning the | 19 | | price or location of property, (iii)
attending an open house | 20 | | and responding to questions about the property from a
consumer, | 21 | | (iv) setting an appointment to view property, (v) responding to
| 22 | | questions of consumers walking into a licensee's office | 23 | | concerning brokerage
services offered or particular | 24 | | properties, (vi) accompanying an appraiser,
inspector, | 25 | | contractor, or similar third party on a visit to a property, | 26 | | (vii)
describing a property or the property's condition in |
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| 1 | | response to a consumer's
inquiry, (viii) completing business or | 2 | | factual information for a consumer on an
offer or contract to | 3 | | purchase on behalf of a client, (ix) showing a client
through a | 4 | | property being sold by an owner on his or her own behalf, or | 5 | | (x)
referral to another broker or service provider.
| 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 to | 20 | | signify that the person named
on the card is currently licensed | 21 | | under this Act.
| 22 | | "Pre-license school" means a school licensed by the | 23 | | Department offering courses in
subjects related to real estate | 24 | | transactions, including the subjects upon
which an applicant is | 25 | | examined in determining fitness to receive a license.
| 26 | | "Pre-renewal period" means the period between the date of |
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| 1 | | issue of a
currently valid license and the license's expiration | 2 | | date.
| 3 | | "Proctor" means any person, including, but not limited to, | 4 | | an instructor, who has a written agreement to administer | 5 | | examinations fairly and impartially with a licensed | 6 | | pre-license school or a licensed continuing education school. | 7 | | "Real estate" means and includes leaseholds as well as any | 8 | | other interest or
estate in land, whether corporeal, | 9 | | incorporeal, freehold, or non-freehold,
including timeshare | 10 | | interests, and whether the real estate is situated in this
| 11 | | State or elsewhere.
| 12 | | "Regular employee" means a person working an average of 20 | 13 | | hours per week for a person or entity who would be considered | 14 | | as an employee under the Internal Revenue Service eleven main | 15 | | tests in three categories being behavioral control, financial | 16 | | control and the type of relationship of the parties, formerly | 17 | | the twenty factor test.
| 18 | | "Salesperson" means any individual, other than a real | 19 | | estate broker or
leasing agent, who is employed by a real | 20 | | estate broker or is associated by
written agreement with a real | 21 | | estate broker as an independent contractor and
participates in | 22 | | any activity described in the definition of "broker" under this
| 23 | | Section.
| 24 | | "Secretary" means the Secretary of the Department of | 25 | | Financial and Professional Regulation, or a person authorized | 26 | | by the Secretary to act in the Secretary's stead. |
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| 1 | | "Sponsoring broker" means the broker who has issued a | 2 | | sponsor card to a
licensed managing broker salesperson , another | 3 | | licensed broker, or a leasing agent.
| 4 | | "Sponsor card" means the temporary permit issued by the | 5 | | sponsoring real
estate broker certifying that the managing real | 6 | | estate broker, broker real estate salesperson ,
or leasing agent | 7 | | named thereon is employed by or associated by written
agreement | 8 | | with the sponsoring real estate broker, as provided for in | 9 | | Section
5-40 of this Act.
| 10 | | (Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15 .)
| 11 | | (225 ILCS 454/5-5)
| 12 | | (Section scheduled to be repealed on January 1, 2020)
| 13 | | Sec. 5-5. Leasing agent license.
| 14 | | (a) The purpose of this Section is to provide for a limited | 15 | | scope license to
enable persons who
wish to engage in | 16 | | activities limited to the leasing of residential real
property | 17 | | for which a license is
required under this Act, and only those | 18 | | activities, to do so by obtaining the
license provided for
| 19 | | under this Section.
| 20 | | (b) Notwithstanding the other provisions of this Act, there | 21 | | is hereby
created a leasing agent
license that shall enable the | 22 | | licensee to engage only in residential leasing
activities for | 23 | | which a
license is required under this Act. Such activities | 24 | | include without
limitation leasing or renting
residential real | 25 | | property, or attempting, offering, or negotiating to lease or
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| 1 | | rent residential real property, or
supervising the collection, | 2 | | offer, attempt, or agreement to collect rent for
the use of
| 3 | | residential real
property. Nothing in this
Section shall be | 4 | | construed to require a licensed managing real estate broker or
| 5 | | broker salesperson to obtain a leasing
agent license in order | 6 | | to perform leasing activities for which a license is
required | 7 | | under this Act.
Licensed leasing agents must be sponsored and | 8 | | employed by a sponsoring broker.
| 9 | | (c) The Department, by rule shall provide for the
licensing | 10 | | of leasing
agents, including the issuance, renewal, and | 11 | | administration of licenses.
| 12 | | (d) Notwithstanding any other provisions of this Act to the | 13 | | contrary, a
person may engage in
residential leasing activities | 14 | | for which a license is required under this Act,
for a period of | 15 | | 120
consecutive days without being licensed, so long as the | 16 | | person is acting under
the supervision of a
licensed real | 17 | | estate broker and the broker has notified the Department that | 18 | | the person is
pursuing licensure
under this Section. During the | 19 | | 120 day period all requirements of Sections
5-10
and 5-65 of | 20 | | this Act
with respect to education, successful completion of an | 21 | | examination, and the
payment of all required
fees must be | 22 | | satisfied. The Department may adopt rules to ensure that the | 23 | | provisions of
this subsection are
not used in a manner that | 24 | | enables an unlicensed person to repeatedly or
continually | 25 | | engage in
activities for which a license is required under this | 26 | | Act.
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| 1 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 2 | | (225 ILCS 454/5-10)
| 3 | | (Section scheduled to be repealed on January 1, 2020)
| 4 | | Sec. 5-10. Requirements for license as leasing agent. | 5 | | (a) Every applicant for licensure as a leasing agent must | 6 | | meet the following qualifications: | 7 | | (1) be at least 18 years of age; | 8 | | (2) be of good moral
character; | 9 | | (3) successfully complete
a 4-year course of study in a | 10 | | high school or secondary school or an
equivalent course of
| 11 | | study approved by the Illinois State Board of Education; | 12 | | (4) personally take and pass a written
examination | 13 | | authorized by the Department sufficient to demonstrate the | 14 | | applicant's
knowledge of the
provisions of this Act | 15 | | relating to leasing agents and the applicant's
competence | 16 | | to engage in the
activities of a licensed leasing agent; | 17 | | (5) provide satisfactory evidence of having completed
| 18 | | 15 hours of
instruction in an approved course of study | 19 | | relating to the leasing of
residential real property. The
| 20 | | course of study shall, among other topics, cover
the | 21 | | provisions of this Act
applicable to leasing agents; fair | 22 | | housing issues relating to residential
leasing; | 23 | | advertising and marketing issues;
leases, applications, | 24 | | and credit reports; owner-tenant relationships and
| 25 | | owner-tenant laws; the handling of funds; and
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| 1 | | environmental issues relating
to residential real
| 2 | | property; | 3 | | (6) complete any other requirements as set forth by | 4 | | rule; and
| 5 | | (7) present a valid application for issuance of an | 6 | | initial license accompanied by a sponsor card and the fees | 7 | | specified by rule. | 8 | | (b) No applicant shall engage in any of the activities | 9 | | covered by this Act until a valid sponsor card has been issued | 10 | | to such applicant. The sponsor card shall be valid for a | 11 | | maximum period of 45 days after the date of issuance unless | 12 | | extended for good cause as provided by rule. | 13 | | (c) Successfully completed course work, completed pursuant | 14 | | to the
requirements of this
Section, may be applied to the | 15 | | course work requirements to obtain a managing real estate
| 16 | | broker's or
broker's salesperson's license as provided by rule. | 17 | | The Advisory Council may
recommend through the
Board to the | 18 | | Department and the Department may adopt requirements for | 19 | | approved courses, course
content, and the
approval of courses, | 20 | | instructors, and schools, as well as school and instructor
| 21 | | fees. The Department may
establish continuing education | 22 | | requirements for licensed leasing agents, by
rule, with the | 23 | | advice of
the Advisory Council and Board.
| 24 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 25 | | (225 ILCS 454/5-15)
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| 1 | | (Section scheduled to be repealed on January 1, 2020)
| 2 | | Sec. 5-15.
Necessity of managing broker, broker, | 3 | | salesperson, or leasing agent license
or sponsor card; | 4 | | ownership
restrictions.
| 5 | | (a) It is unlawful for any person, corporation, limited | 6 | | liability company,
registered limited liability partnership, | 7 | | or partnership to act as
a managing broker, real estate broker, | 8 | | real estate salesperson, or leasing agent or to advertise
or | 9 | | assume to act as such
broker , salesperson, or leasing agent | 10 | | without a properly issued sponsor card or
a license issued
| 11 | | under this Act by the Department, either directly or through | 12 | | its authorized designee.
| 13 | | (b) No corporation shall be granted a license or engage in | 14 | | the business or
capacity, either
directly or indirectly, of a | 15 | | real estate broker, unless every officer of the
corporation who | 16 | | actively
participates in the real estate activities of the | 17 | | corporation holds a license
as a managing broker or broker
and | 18 | | unless every employee who acts as a salesperson, or leasing | 19 | | agent for the
corporation holds a
license as a broker , | 20 | | salesperson, or leasing agent.
| 21 | | (c) No partnership shall be granted a license or engage in | 22 | | the business or
serve in the capacity,
either directly or | 23 | | indirectly, of a real estate broker, unless every general
| 24 | | partner in the partnership
holds a license as a managing broker | 25 | | or broker and unless every employee who acts as a
salesperson | 26 | | or
leasing agent for the partnership holds a license as a |
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| 1 | | managing broker, broker,
salesperson, or leasing
agent. In the | 2 | | case of a registered limited liability partnership (LLP), every
| 3 | | partner in the LLP
must hold a license as a managing broker or | 4 | | broker and every employee who acts as a
salesperson or leasing
| 5 | | agent must hold a license as a managing broker, broker, | 6 | | salesperson, or leasing
agent.
| 7 | | (d) No limited liability company shall be granted a license | 8 | | or engage in the
business or serve in
the capacity, either | 9 | | directly or indirectly, of a broker unless
every manager in
the | 10 | | limited liability company or every member in a member managed | 11 | | limited liability company holds a license as a managing broker | 12 | | or broker and
unless every other member and employee who
acts | 13 | | as a salesperson or leasing agent for the limited liability | 14 | | company holds
a license as a managing broker, broker, | 15 | | salesperson, or leasing agent.
| 16 | | (e) No partnership, limited liability company, or | 17 | | corporation shall be
licensed to conduct a
brokerage business | 18 | | where an individual salesperson or leasing agent, or group
of
| 19 | | salespersons
or leasing agents, owns or directly or indirectly | 20 | | controls more than 49% of the
shares of stock or
other | 21 | | ownership in the partnership, limited liability company, or | 22 | | corporation.
| 23 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 24 | | (225 ILCS 454/5-20)
| 25 | | (Section scheduled to be repealed on January 1, 2020)
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| 1 | | Sec. 5-20. Exemptions from managing broker, broker, | 2 | | salesperson, or leasing agent license
requirement. The | 3 | | requirement for holding a license under this Article 5 shall
| 4 | | not apply to:
| 5 | | (1) Any person, partnership, or corporation that as | 6 | | owner or lessor performs
any of the acts described in the | 7 | | definition of "broker" under Section 1-10 of
this Act with | 8 | | reference to property owned or leased by it, or to the | 9 | | regular
employees thereof with respect to the property so | 10 | | owned or leased, where such
acts are performed in the | 11 | | regular course of or as an incident to the
management, | 12 | | sale, or other disposition of such property and the | 13 | | investment
therein, provided that such regular employees | 14 | | do not perform any of the acts
described in the definition | 15 | | of "broker" under Section 1-10 of this Act in
connection | 16 | | with a vocation of selling or leasing any real estate or | 17 | | the
improvements thereon not so owned or leased.
| 18 | | (2) An attorney in fact acting under a duly executed | 19 | | and recorded power of
attorney to convey real estate from | 20 | | the owner or lessor or the services
rendered by an attorney | 21 | | at law in the performance of the attorney's duty as an
| 22 | | attorney at law.
| 23 | | (3) Any person acting as receiver, trustee in | 24 | | bankruptcy, administrator,
executor, or guardian or while | 25 | | acting under a court order or under the
authority of a will | 26 | | or testamentary trust.
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| 1 | | (4) Any person acting as a resident manager for the | 2 | | owner or any employee
acting as the resident manager for a | 3 | | broker managing an apartment building,
duplex, or | 4 | | apartment complex, when the resident manager resides on the
| 5 | | premises, the premises is his or her primary residence, and | 6 | | the resident
manager is engaged in the leasing of the | 7 | | property of which he or she is the
resident manager.
| 8 | | (5) Any officer or employee of a federal agency in the | 9 | | conduct of official
duties.
| 10 | | (6) Any officer or employee of the State government or | 11 | | any political
subdivision thereof performing official | 12 | | duties.
| 13 | | (7) Any multiple listing service or other similar | 14 | | information exchange that is
engaged in the collection
and | 15 | | dissemination of information concerning real estate | 16 | | available for sale,
purchase, lease, or
exchange for the | 17 | | purpose of providing licensees with a system by which | 18 | | licensees may cooperatively share information along with | 19 | | which no other licensed activities, as defined in Section | 20 | | 1-10 of this Act, are provided.
| 21 | | (8) Railroads and other public utilities regulated by | 22 | | the State of Illinois,
or the officers or full time | 23 | | employees thereof, unless the performance of any
licensed | 24 | | activities is in connection with the sale, purchase, lease, | 25 | | or other
disposition of real estate or investment therein | 26 | | not needing the approval of
the appropriate State |
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| 1 | | regulatory authority.
| 2 | | (9) Any medium of advertising in the routine course of | 3 | | selling or publishing
advertising along with which no other | 4 | | licensed activities, as defined in Section 1-10 of this | 5 | | Act, are provided.
| 6 | | (10) Any resident lessee of a residential dwelling unit | 7 | | who refers for
compensation to the owner of the dwelling | 8 | | unit, or to the owner's agent,
prospective lessees of | 9 | | dwelling units in the same building or complex as the
| 10 | | resident lessee's unit, but only if the resident lessee (i) | 11 | | refers no more than
3 prospective lessees in any 12-month | 12 | | period, (ii) receives compensation of no
more than $1,500 | 13 | | or the equivalent of one month's rent, whichever is less, | 14 | | in
any 12-month period, and (iii) limits his or her | 15 | | activities to referring
prospective lessees to the owner, | 16 | | or the owner's agent, and does not show a
residential | 17 | | dwelling unit to a prospective lessee, discuss terms or | 18 | | conditions
of leasing a dwelling unit with a prospective | 19 | | lessee, or otherwise participate
in the negotiation of the | 20 | | leasing of a dwelling unit.
| 21 | | (11) An exchange company registered under the Real | 22 | | Estate Timeshare Act of
1999 and the regular employees of | 23 | | that registered exchange company but only
when conducting | 24 | | an exchange program as defined in that Act.
| 25 | | (12) An existing timeshare owner who, for | 26 | | compensation, refers prospective
purchasers, but only if |
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| 1 | | the existing timeshare owner (i) refers no more than 20
| 2 | | prospective purchasers in any calendar year, (ii) receives | 3 | | no more than $1,000,
or its equivalent, for referrals in | 4 | | any calendar year and (iii) limits his or
her activities to | 5 | | referring prospective purchasers of timeshare interests to
| 6 | | the developer or the developer's employees or agents, and | 7 | | does not show,
discuss terms or conditions of purchase or | 8 | | otherwise participate in
negotiations with regard to | 9 | | timeshare interests.
| 10 | | (13) Any person who is licensed without examination | 11 | | under
Section 10-25 (now repealed) of the Auction License | 12 | | Act is exempt from holding a managing broker's or
broker's | 13 | | salesperson's license under this Act for the limited | 14 | | purpose of selling or
leasing real estate at auction, so | 15 | | long as:
| 16 | | (A) that person has made application for said | 17 | | exemption by July 1, 2000;
| 18 | | (B) that person verifies to the Department that he | 19 | | or she has sold real estate
at auction for a period of | 20 | | 5 years prior to licensure as an auctioneer;
| 21 | | (C) the person has had no lapse in his or her | 22 | | license as an
auctioneer; and
| 23 | | (D) the license issued under the Auction License | 24 | | Act has not been
disciplined for violation of those | 25 | | provisions of Article 20 of the Auction
License Act | 26 | | dealing with or related to the sale or lease of real |
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| 1 | | estate at
auction.
| 2 | | (14) A person who holds a valid license under the | 3 | | Auction License Act and a valid real estate auction | 4 | | certification and conducts auctions for the sale of real | 5 | | estate under Section 5-32 of this Act. | 6 | | (15) A hotel operator who is registered with the | 7 | | Illinois Department of
Revenue and pays taxes under the | 8 | | Hotel Operators' Occupation Tax Act and rents
a room or | 9 | | rooms in a hotel as defined in the Hotel Operators' | 10 | | Occupation Tax
Act for a period of not more than 30 | 11 | | consecutive days and not more than 60 days
in a calendar | 12 | | year.
| 13 | | (Source: P.A. 98-553, eff. 1-1-14.)
| 14 | | (225 ILCS 454/5-26) | 15 | | (Section scheduled to be repealed on January 1, 2020)
| 16 | | Sec. 5-26. License Requirements for license as a | 17 | | salesperson. | 18 | | (a) Every applicant for licensure as a salesperson must | 19 | | meet the following qualifications: | 20 | | (1) Be at least 21 years of age. The minimum age of 21 | 21 | | years shall be waived for any person seeking a license as a | 22 | | real estate salesperson who has attained the age of 18 and | 23 | | can provide evidence of the successful completion of at | 24 | | 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 | 9 | | oath by the applicant; | 10 | | (4) Provide satisfactory evidence of having completed | 11 | | at least 45 hours of instruction in real estate courses | 12 | | approved by the Advisory Council, except applicants who are | 13 | | currently admitted to practice law by the Supreme Court of | 14 | | Illinois and are currently in active standing; | 15 | | (5) Personally take and pass a written examination | 16 | | authorized by the Department; and | 17 | | (6) Present a valid application for issuance of a | 18 | | license accompanied by a sponsor card and the fees | 19 | | specified by rule. | 20 | | (b) No applicant shall engage in any of the activities | 21 | | covered by this Act until a valid sponsor card has been issued | 22 | | to the applicant. The sponsor card shall be valid for a maximum | 23 | | period of 45 days after the date of issuance unless extended | 24 | | for good cause as provided by rule. | 25 | | (c) All licenses should be readily available to the public | 26 | | at their sponsoring place of business. |
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| 1 | | (d) No new salesperson licenses shall be issued after April | 2 | | 30, 2011 and all existing salesperson licenses shall terminate | 3 | | on May 1, 2012.
| 4 | | (Source: P.A. 96-856, eff. 12-31-09; 97-333, eff. 8-12-11.) | 5 | | (225 ILCS 454/5-27) | 6 | | (Section scheduled to be repealed on January 1, 2020) | 7 | | Sec. 5-27. Requirements for licensure as a broker. | 8 | | (a) Every applicant for licensure as a broker must meet the | 9 | | following qualifications: | 10 | | (1) Be at least 21 years of age. After April 30, 2011, | 11 | | the minimum age of 21 years shall be waived for any person | 12 | | seeking a license as a broker who has attained the age of | 13 | | 18 and can provide evidence of the successful completion of | 14 | | at least 4 semesters of post-secondary school study as a | 15 | | full-time student or the equivalent, with major emphasis on | 16 | | real estate courses, in a school approved by the | 17 | | Department; | 18 | | (2) Be of good moral character; | 19 | | (3) Successfully complete a 4-year course of study in a | 20 | | high school or secondary school approved by the Illinois | 21 | | State Board of Education or an equivalent course of study | 22 | | as determined by an examination conducted by the Illinois | 23 | | State Board of Education which shall be verified under oath | 24 | | by the applicant; | 25 | | (4) (Blank); Prior to May 1, 2011, provide (i) |
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| 1 | | satisfactory evidence of having completed at least 120 | 2 | | classroom hours, 45 of which shall be those hours required | 3 | | to obtain a salesperson's license plus 15 hours in | 4 | | brokerage administration courses, in real estate courses | 5 | | approved by the Advisory Council or (ii) for applicants who | 6 | | currently hold a valid real estate salesperson's license, | 7 | | give satisfactory evidence of having completed at least 75 | 8 | | hours in real estate courses, not including the courses | 9 | | that are required to obtain a salesperson's license, | 10 | | approved by the Advisory Council; | 11 | | (5) After April 30, 2011, provide satisfactory | 12 | | evidence of having completed 90 hours of instruction in | 13 | | real estate courses approved by the Advisory Council, 15 | 14 | | hours of which must consist of situational and case studies | 15 | | presented in the classroom or by other interactive delivery | 16 | | method between the instructor and the students; | 17 | | (6) Personally take and pass a written examination | 18 | | authorized by the Department; | 19 | | (7) Present a valid application for issuance of a | 20 | | license accompanied by a sponsor card and the fees | 21 | | specified by rule. | 22 | | (b) The requirements specified in items (3) (4) and (5) of | 23 | | subsection (a) of this Section do not apply to applicants who | 24 | | are currently admitted to practice law by the Supreme Court of | 25 | | Illinois and are currently in active standing. | 26 | | (c) No applicant shall engage in any of the activities |
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| 1 | | covered by this Act until a valid sponsor card has been issued | 2 | | to such applicant. The sponsor card shall be valid for a | 3 | | maximum period of 45 days after the date of issuance unless | 4 | | extended for good cause as provided by rule. | 5 | | (d) All licenses should be readily available to the public | 6 | | at their place of business.
| 7 | | (e) An individual holding an active license as a managing | 8 | | broker may return the license to the Department along with a | 9 | | form provided by the Department and shall be issued a broker's | 10 | | license in exchange. Any individual obtaining a broker's | 11 | | license under this subsection (e) shall be considered as having | 12 | | obtained a broker's license by education and passing the | 13 | | required test and shall be treated as such in determining | 14 | | compliance with this Act. | 15 | | (Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15 .) | 16 | | (225 ILCS 454/5-28) | 17 | | (Section scheduled to be repealed on January 1, 2020) | 18 | | Sec. 5-28. Requirements for licensure as a managing broker. | 19 | | (a) Effective May 1, 2012, every applicant for licensure as | 20 | | a managing broker must meet the following qualifications: | 21 | | (1) be at least 21 years of age; | 22 | | (2) be of good moral character; | 23 | | (3) have been licensed at least 2 out of the preceding | 24 | | 3 years as a real estate broker or salesperson ; | 25 | | (4) successfully complete a 4-year course of study in |
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| 1 | | high school or secondary school approved by the Illinois | 2 | | State Board of Education or an equivalent course of study | 3 | | as determined by an examination conducted by the Illinois | 4 | | State Board of Education, which shall be verified under | 5 | | oath by the applicant; | 6 | | (5) provide satisfactory evidence of having completed | 7 | | at least 165 hours, 120 of which shall be those hours | 8 | | required pre and post-licensure to obtain a broker's | 9 | | license, and 45 additional hours completed within the year | 10 | | immediately preceding the filing of an application for a | 11 | | managing broker's license, which hours shall focus on | 12 | | brokerage administration and management and include at | 13 | | least 15 hours in the classroom or by other interactive | 14 | | delivery method between the instructor and the students; | 15 | | (6) personally take and pass a written examination | 16 | | authorized by the Department; and | 17 | | (7) present a valid application for issuance of a | 18 | | license accompanied by a sponsor card, an appointment as a | 19 | | managing broker, and the fees specified by rule. | 20 | | (b) The requirements specified in item (5) of subsection | 21 | | (a) of this Section do not apply to applicants who are | 22 | | currently admitted to practice law by the Supreme Court of | 23 | | Illinois and are currently in active standing. | 24 | | (c) No applicant shall act as a managing broker for more | 25 | | than 90 days after an appointment as a managing broker has been | 26 | | filed with the Department without obtaining a managing broker's |
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| 1 | | license.
| 2 | | (Source: P.A. 98-531, eff. 8-23-13.) | 3 | | (225 ILCS 454/5-32) | 4 | | (Section scheduled to be repealed on January 1, 2020) | 5 | | Sec. 5-32. Real estate auction certification. | 6 | | (a) An auctioneer licensed under the Auction License Act | 7 | | who does not possess a valid and active broker's or managing | 8 | | broker's license under this Act, or who is not otherwise exempt | 9 | | from licensure, may not engage in the practice of auctioning | 10 | | real estate, except as provided in this Section. | 11 | | (b) The Department shall issue a real estate auction | 12 | | certification to applicants who: | 13 | | (1) possess a valid auctioneer's license under the | 14 | | Auction License Act; | 15 | | (2) successfully complete a real estate auction course | 16 | | of at least 30 hours approved by the Department, which | 17 | | shall cover the scope of activities that may be engaged in | 18 | | by a person holding a real estate auction certification and | 19 | | the activities for which a person must hold a real estate | 20 | | license, as well as other material as provided by the | 21 | | Department; | 22 | | (3) provide documentation of the completion of the real | 23 | | estate auction course; and | 24 | | (4) successfully complete any other reasonable | 25 | | requirements as provided by rule. |
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| 1 | | (c) The auctioneer's role shall be limited to establishing | 2 | | the time, place, and method of the real estate auction, placing | 3 | | advertisements regarding the auction, and crying or calling the | 4 | | auction; any other real estate brokerage activities must be | 5 | | performed by a person holding a valid and active real estate | 6 | | broker's or managing broker's license under the provisions of | 7 | | this Act or by a person who is exempt from holding a license | 8 | | under paragraph (13) of Section 5-20 who has a certificate | 9 | | under this Section. | 10 | | (d) An auctioneer who conducts any real estate auction | 11 | | activities in violation of this Section is guilty of unlicensed | 12 | | practice under Section 20-10 of this Act. | 13 | | (e) The Department may revoke, suspend, or otherwise | 14 | | discipline the real estate auction certification of an | 15 | | auctioneer who is adjudicated to be in violation of the | 16 | | provisions of this Section or Section 20-15 of the Auction | 17 | | License Act. | 18 | | (f) Advertising for the real estate auction must contain | 19 | | the name and address of the licensed real estate broker, | 20 | | managing broker, or a licensed auctioneer under paragraph (13) | 21 | | of Section 5-20 of this Act who is providing brokerage services | 22 | | for the transaction. | 23 | | (g) The requirement to hold a real estate auction | 24 | | certification shall not apply to a person exempt from this Act | 25 | | under the provisions of paragraph (13) of Section 5-20 of this | 26 | | Act, unless that person is performing licensed activities in a |
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| 1 | | transaction in which a licensed auctioneer with a real estate | 2 | | certification is providing the limited services provided for in | 3 | | subsection (c) of this Section. | 4 | | (h) Nothing in this Section shall require a person licensed | 5 | | under this Act as a real estate broker or managing broker to | 6 | | obtain a real estate auction certification in order to auction | 7 | | real estate. | 8 | | (i) The Department may adopt rules to implement this | 9 | | Section.
| 10 | | (Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14.)
| 11 | | (225 ILCS 454/5-35)
| 12 | | (Section scheduled to be repealed on January 1, 2020)
| 13 | | Sec. 5-35. Examination; managing broker, broker, | 14 | | salesperson, or leasing agent.
| 15 | | (a) The Department shall authorize examinations at such
| 16 | | times and places as it may designate. The examination shall be | 17 | | of a character to give a fair test of the qualifications of the | 18 | | applicant to practice as a managing broker, broker, | 19 | | salesperson, or leasing agent. Applicants for examination as a | 20 | | managing broker, broker, salesperson, or leasing agent shall be | 21 | | required to pay, either to the Department or the designated | 22 | | testing service, a fee covering the cost of providing the | 23 | | examination. Failure to appear for the examination on the | 24 | | scheduled date, at the time and place specified, after the | 25 | | applicant's application for examination has been received and |
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| 1 | | acknowledged by the Department or the designated testing | 2 | | service, shall result in the forfeiture of the examination fee.
| 3 | | An applicant shall be eligible to take the
examination only | 4 | | after
successfully completing the education requirements
and
| 5 | | attaining the
minimum age provided for in Article 5 of this | 6 | | Act. Each applicant shall be required to
establish compliance | 7 | | with
the eligibility requirements in the manner provided by the | 8 | | rules
promulgated for
the administration of this Act.
| 9 | | (b) If a person who has received a passing score on the | 10 | | written examination
described in this Section fails to file an | 11 | | application and meet all
requirements for a license
under this | 12 | | Act within
one year after receiving a passing score on the | 13 | | examination, credit for the
examination shall
terminate. The | 14 | | person thereafter may make a new application for examination.
| 15 | | (c) If an applicant has failed an examination 4 times, the | 16 | | applicant must
repeat the pre-license
education required to sit | 17 | | for the examination. For the purposes of this
Section, the | 18 | | fifth attempt
shall be the same as the first. Approved | 19 | | education, as prescribed by this Act
for licensure as a
| 20 | | salesperson or broker, shall be valid for 4
years after the | 21 | | date of satisfactory completion of the education.
| 22 | | (d) The Department may employ consultants for the purposes | 23 | | of preparing and conducting examinations. | 24 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 25 | | (225 ILCS 454/5-41) |
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| 1 | | (Section scheduled to be repealed on January 1, 2020)
| 2 | | Sec. 5-41. Change of address. A licensee shall notify the | 3 | | Department of the address or addresses, and of every change of | 4 | | address, where the licensee practices as a leasing agent, | 5 | | salesperson, broker or managing broker.
| 6 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 7 | | (225 ILCS 454/5-50)
| 8 | | (Section scheduled to be repealed on January 1, 2020)
| 9 | | Sec. 5-50. Expiration and renewal of managing broker, | 10 | | broker, salesperson, or
leasing agent license; sponsoring | 11 | | broker;
register of licensees; pocket card. | 12 | | (a) The expiration date and renewal period for each license | 13 | | issued under
this Act shall be set by
rule , except that the | 14 | | first renewal period ending after the effective date of this | 15 | | Act for those licensed as a salesperson shall be extended | 16 | | through April 30, 2012 . Except as otherwise provided in this | 17 | | Section, the holder of
a
license may renew
the license within | 18 | | 90 days preceding the expiration date thereof by completing the | 19 | | continuing education required by this Act and paying the
fees | 20 | | specified by
rule.
| 21 | | (b) An individual whose first license is that of a broker | 22 | | received after April 30, 2011, must provide evidence of having | 23 | | completed 30 hours of post-license education in courses | 24 | | approved by the Advisory Council, 15 hours of which must | 25 | | consist of situational and case studies presented in the |
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| 1 | | classroom or by other interactive delivery method between the | 2 | | instructor and the students, and personally take and pass an | 3 | | examination approved by the Department prior to the first | 4 | | renewal of their broker's license.
| 5 | | (c) Any salesperson until April 30, 2011 or any managing | 6 | | broker, broker, or leasing agent whose license under this Act | 7 | | has expired shall be eligible to renew the license during the | 8 | | 2-year period following the expiration date, provided the | 9 | | managing broker, broker, salesperson, or leasing agent pays the | 10 | | fees as prescribed by rule and completes continuing education | 11 | | and other requirements provided for by the Act or by rule. | 12 | | Beginning on May 1, 2012, a managing broker licensee, broker, | 13 | | or leasing agent whose license has been expired for more than 2 | 14 | | years but less than 5 years may have it restored by (i) | 15 | | applying to the Department, (ii) paying the required fee, (iii) | 16 | | completing the continuing education requirements for the most | 17 | | recent pre-renewal period that ended prior to the date of the | 18 | | application for reinstatement, and (iv) filing acceptable | 19 | | proof of fitness to have his or her license restored, as set by | 20 | | rule. A managing broker, broker, or leasing agent whose license | 21 | | has been expired for more than 5 years shall be required to | 22 | | meet the requirements for a new license.
| 23 | | (d) Notwithstanding any other provisions of this Act to the | 24 | | contrary, any managing broker, broker, salesperson, or leasing | 25 | | agent whose license expired while he or she was (i) on active | 26 | | duty with the Armed Forces of the United States or called into |
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| 1 | | service or training by the state militia, (ii) engaged in | 2 | | training or education under the supervision of the United | 3 | | States preliminary to induction into military service, or (iii) | 4 | | serving as the Coordinator of Real Estate in the State of | 5 | | Illinois or as an employee of the Department may have his or | 6 | | her license renewed, reinstated or restored without paying any | 7 | | lapsed renewal fees if within 2 years after the termination of | 8 | | the service, training or education by furnishing the Department | 9 | | with satisfactory evidence of service, training, or education | 10 | | and it has been terminated under honorable conditions. | 11 | | (e) The Department shall establish and
maintain a register | 12 | | of all persons currently licensed by the
State and shall issue | 13 | | and prescribe a form of pocket card. Upon payment by a licensee | 14 | | of the appropriate fee as prescribed by
rule for engagement in | 15 | | the activity for which the licensee is
qualified and holds a | 16 | | license for the current period, the
Department shall issue a | 17 | | pocket card to the licensee. The
pocket card shall be | 18 | | verification that the required fee for the
current period has | 19 | | been paid and shall indicate that the person named thereon is | 20 | | licensed for the current renewal period as a
managing broker, | 21 | | broker, salesperson, or leasing agent as the
case may be. The | 22 | | pocket card shall further indicate that the
person named | 23 | | thereon is authorized by the Department to
engage in the | 24 | | licensed activity appropriate for his or her
status (managing | 25 | | broker, broker, salesperson, or leasing
agent). Each licensee | 26 | | shall carry on his or her person his or
her pocket card or, if |
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| 1 | | such pocket card has not yet been
issued, a properly issued | 2 | | sponsor card when engaging in any
licensed activity and shall | 3 | | display the same on demand. | 4 | | (f) The Department shall provide to the sponsoring broker a | 5 | | notice of renewal for all sponsored licensees by mailing the | 6 | | notice to the sponsoring broker's address of record, or, at the | 7 | | Department's discretion, by an electronic means as provided for | 8 | | by rule. | 9 | | (g) Upon request from the sponsoring broker, the Department | 10 | | shall make available to the sponsoring broker, either by mail | 11 | | or by an electronic means at the discretion of the Department, | 12 | | a listing of licensees under this Act who, according to the | 13 | | records of the Department, are sponsored by that broker. Every | 14 | | licensee associated with or employed by a broker whose license | 15 | | is revoked, suspended, terminated, or expired shall be | 16 | | considered as inoperative until such time as the sponsoring | 17 | | broker's license is reinstated or renewed, or the licensee | 18 | | changes employment as set forth in subsection (c) of Section | 19 | | 5-40 of this Act. | 20 | | (Source: P.A. 98-531, eff. 8-23-13.)
| 21 | | (225 ILCS 454/5-60)
| 22 | | (Section scheduled to be repealed on January 1, 2020)
| 23 | | Sec. 5-60. Managing broker licensed in another state; | 24 | | broker licensed in another state; salesperson licensed in | 25 | | another state;
reciprocal agreements; agent
for service
of |
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| 1 | | process. | 2 | | (a) Effective May 1, 2011, a managing broker's license may | 3 | | be issued by the Department to a managing broker or its | 4 | | equivalent licensed under the laws of another state of the | 5 | | United States, under the following conditions: | 6 | | (1) the managing broker holds a managing broker's | 7 | | license in a state that has entered into a reciprocal | 8 | | agreement with the Department; | 9 | | (2) the standards for that state for licensing as a | 10 | | managing broker are substantially equal to or greater than | 11 | | the minimum standards in the State of Illinois; | 12 | | (3) the managing broker has been actively practicing as | 13 | | a managing broker in the managing broker's state of | 14 | | licensure for a period of not less than 2 years, | 15 | | immediately prior to the date of application; | 16 | | (4) the managing broker furnishes the Department with a | 17 | | statement under seal of the proper licensing authority of | 18 | | the state in which the managing broker is licensed showing | 19 | | that the managing broker has an active managing broker's | 20 | | license, that the managing broker is in good standing, and | 21 | | that no complaints are pending against the managing broker | 22 | | in that state; | 23 | | (5) the managing broker passes a test on Illinois | 24 | | specific real estate brokerage laws; and | 25 | | (6) the managing broker was licensed by an examination | 26 | | in the state that has entered into a reciprocal agreement |
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| 1 | | with the Department. | 2 | | (b) A broker's license may be issued by the Department to a | 3 | | broker or its equivalent licensed under the
laws of another
| 4 | | state of the United States, under the following conditions:
| 5 | | (1) the broker
holds a broker's license in a state that | 6 | | has entered into a reciprocal agreement with the | 7 | | Department;
| 8 | | (2) the standards for that state for licensing as
a | 9 | | broker are substantially
equivalent to or greater than the | 10 | | minimum standards in the State of Illinois;
| 11 | | (3) if the application is made prior to May 1, 2012, | 12 | | then the broker has been
actively practicing as a broker in | 13 | | the broker's state of licensure for a period
of not less | 14 | | than 2 years,
immediately prior to the date of application;
| 15 | | (4) the broker furnishes the Department with a | 16 | | statement under
seal of the proper licensing authority of | 17 | | the state in which the broker is
licensed showing that the
| 18 | | broker has an active broker's license, that the broker is | 19 | | in good standing, and
that no
complaints are pending | 20 | | against
the broker in that state;
| 21 | | (5) the broker passes a test on
Illinois specific real | 22 | | estate brokerage laws; and
| 23 | | (6) the broker was licensed by an examination in a | 24 | | state that has entered into a reciprocal agreement with the | 25 | | Department.
| 26 | | (c) (Blank). Prior to May 1, 2011, a salesperson may, in |
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| 1 | | the discretion
of the Department, be issued a
salesperson's | 2 | | license provided all of
the following
conditions are met:
| 3 | | (1) the salesperson maintains an active license in the | 4 | | state that has entered into a reciprocal agreement with the | 5 | | Department;
| 6 | | (2) the salesperson passes a test on Illinois specific | 7 | | real estate brokerage laws; and
| 8 | | (3) the salesperson was licensed by an examination in | 9 | | the state that has entered into a reciprocal agreement with | 10 | | the Department.
| 11 | | The broker with whom the
salesperson is
associated shall | 12 | | comply with the provisions of this Act and issue the
| 13 | | salesperson a sponsor card
upon the form provided by the | 14 | | Department.
| 15 | | (d) As a condition precedent to the issuance of a license | 16 | | to a managing broker ,
or broker , or salesperson pursuant to | 17 | | this Section,
the managing broker or broker salesperson shall | 18 | | agree in writing to abide by all the provisions
of this Act | 19 | | with
respect to his or her real estate activities within the | 20 | | State of Illinois and
submit to the jurisdiction of the | 21 | | Department
as provided in this Act. The agreement shall be | 22 | | filed with the Department and shall
remain in force
for so long | 23 | | as the managing broker , or broker or salesperson is licensed by | 24 | | this State
and thereafter with
respect to acts or omissions | 25 | | committed while licensed as a managing broker or
broker | 26 | | salesperson in this State.
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| 1 | | (e) Prior to the issuance of any license to any managing | 2 | | broker , or broker , or salesperson licensed pursuant to this | 3 | | Section, verification of
active licensure issued
for the | 4 | | conduct of such business in any other state must be filed with | 5 | | the Department by
the managing broker , or broker, or | 6 | | salesperson,
and the same fees must be paid as provided in this | 7 | | Act for the obtaining of a
managing broker's , or broker's or
| 8 | | salesperson's license in this State.
| 9 | | (f) Licenses previously granted under reciprocal | 10 | | agreements with other
states shall remain in
force so long as | 11 | | the Department has a reciprocal agreement with the state that | 12 | | includes
the requirements of this Section, unless
that license | 13 | | is suspended, revoked, or terminated by the Department for any | 14 | | reason
provided for
suspension, revocation, or
termination of a | 15 | | resident licensee's license. Licenses granted under
reciprocal | 16 | | agreements may be
renewed in the same manner as a resident's | 17 | | license.
| 18 | | (g) Prior to the issuance of a license to a nonresident | 19 | | managing broker , or broker or
salesperson , the managing broker , | 20 | | or broker or
salesperson shall file with the Department a | 21 | | designation in writing that appoints the Secretary
to act as
| 22 | | his or her agent upon whom all judicial and other process or | 23 | | legal notices
directed to the managing broker , or broker or
| 24 | | salesperson may be served. Service upon the agent so designated | 25 | | shall be
equivalent to personal
service upon the licensee. | 26 | | Copies of the appointment, certified by the Secretary, shall be
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| 1 | | deemed sufficient evidence thereof and shall be admitted in | 2 | | evidence with the
same force and effect
as the original thereof | 3 | | might be admitted. In the written designation, the managing | 4 | | broker ,
or broker or salesperson
shall agree that any lawful | 5 | | process against the licensee that is served upon
the agent | 6 | | shall be of
the same legal force and validity as if served upon | 7 | | the licensee and that the
authority shall continue
in force so | 8 | | long as any liability remains outstanding in this State. Upon | 9 | | the
receipt of any process or notice, the Secretary
shall | 10 | | forthwith mail a copy of the same by certified mail to the last | 11 | | known
business address of the
licensee.
| 12 | | (h) Any person holding a valid license under this Section | 13 | | shall be eligible
to obtain a resident managing broker's | 14 | | license , or a
broker's license , or, prior to May 1, 2011, a | 15 | | salesperson's license without examination should that person | 16 | | change
their state of
domicile to Illinois and that person | 17 | | otherwise meets the qualifications for
licensure under this | 18 | | Act.
| 19 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 20 | | (225 ILCS 454/5-70)
| 21 | | (Section scheduled to be repealed on January 1, 2020)
| 22 | | Sec. 5-70. Continuing education requirement; managing | 23 | | broker , or broker , or salesperson .
| 24 | | (a) The requirements of this Section apply to all managing | 25 | | brokers , and brokers , and salespersons .
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| 1 | | (b) Except as otherwise
provided in this Section, each
| 2 | | person who applies for renewal of his or her license as a | 3 | | managing broker , or real
estate broker , or real
estate | 4 | | salesperson must successfully complete 6 hours of real estate | 5 | | continuing education
courses approved by
the Advisory Council | 6 | | for each year of the pre-renewal period. Broker licensees must | 7 | | successfully complete a 6-hour broker management continuing | 8 | | education course approved by the Department for the pre-renewal | 9 | | period ending April 30, 2010. In addition, beginning with the | 10 | | pre-renewal period for managing broker licensees that begins | 11 | | after the effective date of this Act, those licensees renewing | 12 | | or obtaining a managing broker's license must successfully | 13 | | complete a 12-hour broker management continuing education | 14 | | course approved by the Department each pre-renewal period. The | 15 | | broker management continuing education course must be | 16 | | completed in the classroom or by other interactive delivery | 17 | | method between the instructor and the students. Successful | 18 | | completion of the course shall include achieving a passing | 19 | | score as provided by rule on a test developed and administered | 20 | | in accordance with rules adopted by the Department. No
license | 21 | | may be renewed
except upon the successful completion of the | 22 | | required courses or their
equivalent or upon a waiver
of those | 23 | | requirements for good cause shown as determined by the | 24 | | Secretary
with the
recommendation of the Advisory Council.
The | 25 | | requirements of this Article are applicable to all managing | 26 | | brokers , and brokers , and salespersons
except those managing |
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| 1 | | brokers
and brokers salespersons who, during the pre-renewal | 2 | | period:
| 3 | | (1) serve in the armed services of the United States;
| 4 | | (2) serve as an elected State or federal official;
| 5 | | (3) serve as a full-time employee of the Department; or
| 6 | | (4) are admitted to practice law pursuant to Illinois | 7 | | Supreme Court rule.
| 8 | | (c) (Blank). A person licensed as a salesperson as of April | 9 | | 30, 2011 shall not be required to complete the 18 hours of | 10 | | continuing education for the pre-renewal period ending April | 11 | | 30, 2012 if that person takes the 30-hour post-licensing course | 12 | | to obtain a broker's license. A person licensed as a broker as | 13 | | of April 30, 2011 shall not be required to complete the 12 | 14 | | hours of broker management continuing education for the | 15 | | pre-renewal period ending April 30, 2012, unless that person | 16 | | passes the proficiency exam provided for in Section 5-47 of | 17 | | this Act to qualify for a managing broker's license. | 18 | | (d) A
person receiving an initial license
during the 90 | 19 | | days before the renewal date shall not be
required to complete | 20 | | the continuing
education courses provided for in subsection (b) | 21 | | of this
Section as a condition of initial license renewal.
| 22 | | (e) The continuing education requirement for salespersons, | 23 | | brokers and managing brokers shall
consist of a core
curriculum | 24 | | and an elective curriculum, to be established by the Advisory
| 25 | | Council. In meeting the
continuing education requirements of | 26 | | this Act, at least 3 hours per year or
their equivalent, 6 |
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| 1 | | hours for each two-year pre-renewal period, shall
be required | 2 | | to be completed in the core curriculum.
In establishing the | 3 | | core curriculum, the Advisory Council shall consider
subjects | 4 | | that will
educate licensees on recent changes in applicable | 5 | | laws and new laws and refresh
the licensee on areas
of the | 6 | | license law and the Department policy that the Advisory Council | 7 | | deems appropriate,
and any other
areas that the Advisory | 8 | | Council deems timely and applicable in order to prevent
| 9 | | violations of this Act
and to protect the public.
In | 10 | | establishing the elective curriculum, the Advisory Council | 11 | | shall consider
subjects that cover
the various aspects of the | 12 | | practice of real estate that are covered under the
scope of | 13 | | this Act.
However, the elective curriculum shall not include | 14 | | any offerings referred to in
Section 5-85 of this Act.
| 15 | | (f) The subject areas of continuing education courses | 16 | | approved by the
Advisory Council may
include without limitation | 17 | | the following:
| 18 | | (1) license law and escrow;
| 19 | | (2) antitrust;
| 20 | | (3) fair housing;
| 21 | | (4) agency;
| 22 | | (5) appraisal;
| 23 | | (6) property management;
| 24 | | (7) residential brokerage;
| 25 | | (8) farm property management;
| 26 | | (9) rights and duties of sellers, buyers, and brokers;
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| 1 | | (10) commercial brokerage and leasing; and
| 2 | | (11) real estate financing.
| 3 | | (g) In lieu of credit for those courses listed in | 4 | | subsection (f) of this
Section, credit may be
earned for | 5 | | serving as a licensed instructor in an approved course of | 6 | | continuing
education. The
amount of credit earned for teaching | 7 | | a course shall be the amount of continuing
education credit for
| 8 | | which the course is approved for licensees taking the course.
| 9 | | (h) Credit hours may be earned for self-study programs | 10 | | approved by the
Advisory Council.
| 11 | | (i) A managing broker or broker salesperson may earn credit | 12 | | for a specific continuing
education course only
once during the | 13 | | prerenewal period.
| 14 | | (j) No more than 6 hours of continuing education credit may | 15 | | be taken or earned in one
calendar day.
| 16 | | (k) To promote the offering of a uniform and consistent | 17 | | course content, the Department may provide for the development | 18 | | of a single broker management course to be offered by all | 19 | | continuing education providers who choose to offer the broker | 20 | | management continuing education course. The Department may | 21 | | contract for the development of the 12-hour broker management | 22 | | continuing education course with an outside vendor or | 23 | | consultant and, if the course is developed in this manner, the | 24 | | Department or the outside consultant shall license the use of | 25 | | that course to all approved continuing education providers who | 26 | | wish to provide the course.
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| 1 | | (l) Except as specifically provided in this Act, continuing | 2 | | education credit hours may not be earned for completion of pre | 3 | | or post-license courses. The approved 30-hour post-license | 4 | | course for broker licensees shall satisfy the continuing | 5 | | education requirement for the pre-renewal period in which the | 6 | | course is taken. The approved 45-hour brokerage administration | 7 | | and management course shall satisfy the 12-hour broker | 8 | | management continuing education requirement for the | 9 | | pre-renewal period in which the course is taken. | 10 | | (Source: P.A. 97-1002, eff. 8-17-12; 98-531, eff. 8-23-13.)
| 11 | | (225 ILCS 454/10-10)
| 12 | | (Section scheduled to be repealed on January 1, 2020)
| 13 | | Sec. 10-10. Disclosure of compensation.
| 14 | | (a) A licensee must disclose to a client the sponsoring | 15 | | broker's
compensation and policy with
regard to cooperating | 16 | | with brokers who represent other parties in a
transaction.
| 17 | | (b) A licensee must disclose to a client all sources of | 18 | | compensation related
to the transaction
received by the | 19 | | licensee from a third party.
| 20 | | (c) If a licensee refers a client to a third party in which | 21 | | the licensee has
greater than a 1% ownership interest
or from | 22 | | which the licensee receives or may receive dividends or other | 23 | | profit
sharing distributions, other than a
publicly held or | 24 | | traded company, for the purpose of the client obtaining
| 25 | | services related to the transaction, then the
licensee shall |
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| 1 | | disclose that fact to the client at the time of making the
| 2 | | referral.
| 3 | | (d) If in any one transaction a sponsoring broker receives | 4 | | compensation from
both the buyer
and seller or lessee and | 5 | | lessor of real estate, the sponsoring broker shall
disclose in | 6 | | writing to a
client the fact that the compensation is being | 7 | | paid by both buyer and seller or
lessee and lessor.
| 8 | | (e) Nothing in the Act shall prohibit the cooperation with | 9 | | or a payment of
compensation to a
person not domiciled in this | 10 | | State or country who is licensed as a real
estate broker in
his | 11 | | or her state or country of domicile or to a resident of a | 12 | | country
that does not require a person to be licensed to act as | 13 | | a real estate broker if
the person complies with the laws of | 14 | | the country in which that person resides
and practices there as | 15 | | a real estate broker.
| 16 | | (Source: P.A. 91-245, eff. 12-31-99; 92-217, eff. 8-2-01 .)
| 17 | | (225 ILCS 454/10-15)
| 18 | | (Section scheduled to be repealed on January 1, 2020)
| 19 | | Sec. 10-15. No compensation to persons in violation of Act; | 20 | | compensation
to unlicensed
persons; consumer. | 21 | | (a) No compensation may be paid to any unlicensed person in | 22 | | exchange for the
person
performing licensed activities in | 23 | | violation of this Act.
| 24 | | (b) No action or suit shall be instituted, nor recovery | 25 | | therein be had, in
any court of this State
by any person, |
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| 1 | | partnership, registered limited liability partnership, limited
| 2 | | liability company, or
corporation for compensation for any act | 3 | | done or service performed, the doing
or performing of
which is | 4 | | prohibited by this Act to other than licensed managing brokers, | 5 | | brokers, salespersons,
or leasing agents unless
the person, | 6 | | partnership, registered limited liability partnership, limited
| 7 | | liability company, or corporation was duly
licensed hereunder | 8 | | as a managing broker,
broker, salesperson, or leasing agent | 9 | | under this Act at the time that any such
act was done or | 10 | | service
performed that would give rise to a cause of action for | 11 | | compensation.
| 12 | | (c) A licensee may offer compensation, including prizes, | 13 | | merchandise,
services, rebates,
discounts, or other | 14 | | consideration to an unlicensed person who is a party to a
| 15 | | contract to buy or sell
real estate or is a party to a contract | 16 | | for the lease of real estate, so long
as the offer complies | 17 | | with
the provisions of subdivision (35) of subsection (a) of | 18 | | Section 20-20 of this
Act.
| 19 | | (d) A licensee may offer cash, gifts, prizes, awards, | 20 | | coupons, merchandise,
rebates or chances
to win a game of | 21 | | chance, if not prohibited by any other law or statute,
to a | 22 | | consumer as an
inducement to that consumer to use the services | 23 | | of the licensee even if the
licensee and consumer
do not | 24 | | ultimately enter into a broker-client relationship so long as | 25 | | the offer
complies with the
provisions of subdivision (35) of | 26 | | subsection (a) of Section 20-20 of this Act.
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| 1 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 2 | | (225 ILCS 454/15-5)
| 3 | | (Section scheduled to be repealed on January 1, 2020)
| 4 | | Sec. 15-5. Legislative intent.
| 5 | | (a) The General Assembly finds that application of the | 6 | | common law of agency
to the
relationships among managing real | 7 | | estate brokers and brokers salespersons and consumers of real
| 8 | | estate brokerage
services has resulted in misunderstandings | 9 | | and consequences that have been
contrary to the best
interests | 10 | | of the public. The General Assembly further finds that the real
| 11 | | estate brokerage industry
has a significant impact upon the | 12 | | economy of the State of Illinois and that it is in the best | 13 | | interest of
the public to provide codification of the | 14 | | relationships between managing real estate brokers and brokers | 15 | | salespersons
and consumers of real estate brokerage services in | 16 | | order to prevent detrimental misunderstandings
and | 17 | | misinterpretations of the relationships by consumers, managing | 18 | | real estate brokers, and brokers salespersons and
thus promote | 19 | | and provide stability in the real estate market. This Article | 20 | | 15
is enacted to govern the
relationships between consumers of | 21 | | real estate brokerage services and managing real
estate brokers | 22 | | and brokers
salespersons to the extent not governed by an | 23 | | individual written
agreement between a
sponsoring broker and a | 24 | | consumer, providing that
there is a relationship other than | 25 | | designated agency.
This
Article 15 applies to
the exclusion of |
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| 1 | | the common law concepts of principal and agent and to the
| 2 | | fiduciary duties, which
have been applied to managing real | 3 | | estate brokers, brokers salespersons , and real estate
| 4 | | brokerage services.
| 5 | | (b) The General Assembly further finds that this Article 15 | 6 | | is not intended
to
prescribe or affect
contractual | 7 | | relationships between managing brokers and real estate brokers | 8 | | and the broker's
affiliated licensees.
| 9 | | (c) This Article 15 may serve as a basis for private rights | 10 | | of action and
defenses by sellers, buyers,
landlords, tenants, | 11 | | managing brokers, and real estate brokers , and real estate | 12 | | salespersons . The
private rights of action,
however, do not | 13 | | extend to the provisions of any other Articles
of this
Act.
| 14 | | (Source: P.A. 91-245, eff. 12-31-99 .)
| 15 | | (225 ILCS 454/20-10)
| 16 | | (Section scheduled to be repealed on January 1, 2020)
| 17 | | Sec. 20-10. Unlicensed practice; civil penalty.
| 18 | | (a) Any person who practices, offers to practice, attempts | 19 | | to practice, or
holds oneself out to
practice as a managing | 20 | | real estate broker, broker real estate salesperson , or leasing | 21 | | agent
without being licensed under
this Act shall, in addition | 22 | | to any other penalty provided by law, pay a civil penalty
to | 23 | | the Department in an
amount not to exceed $25,000 for each | 24 | | offense as determined by the Department. The civil penalty
| 25 | | shall be
assessed by the Department after a hearing is held in |
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| 1 | | accordance with the provisions set
forth in this Act
regarding | 2 | | the provision of a hearing for the discipline of a license.
| 3 | | (b) The Department has the authority and power to | 4 | | investigate any and all unlicensed
activity.
| 5 | | (c) The civil penalty shall be paid within 60 days after | 6 | | the effective date of
the order imposing the
civil penalty. The | 7 | | order shall constitute a judgment and may be filed and
| 8 | | execution had thereon in the
same manner from any court of | 9 | | record.
| 10 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 11 | | (225 ILCS 454/20-20)
| 12 | | (Section scheduled to be repealed on January 1, 2020)
| 13 | | Sec. 20-20. Grounds for discipline. | 14 | | (a) The Department may refuse to issue or renew a license, | 15 | | may place on probation, suspend,
or
revoke any
license, | 16 | | reprimand, or take any other disciplinary or non-disciplinary | 17 | | action as the Department may deem proper and impose a
fine not | 18 | | to exceed
$25,000 upon any licensee or applicant under this Act | 19 | | or any person who holds himself or herself out as an applicant | 20 | | or licensee or against a licensee in handling his or her own | 21 | | property, whether held by deed, option, or otherwise, for any | 22 | | one or any combination of the
following causes:
| 23 | | (1) Fraud or misrepresentation in applying for, or | 24 | | procuring, a license under this Act or in connection with | 25 | | applying for renewal of a license under this Act.
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| 1 | | (2) The conviction of or plea of guilty or plea of nolo | 2 | | contendere to a felony or misdemeanor in this State or any | 3 | | other jurisdiction; or the entry of an administrative | 4 | | sanction by a government agency in this State or any other | 5 | | jurisdiction. Action taken under this paragraph (2) for a | 6 | | misdemeanor or an administrative sanction is limited to a | 7 | | misdemeanor or administrative sanction that has as an
| 8 | | essential element dishonesty or fraud or involves larceny, | 9 | | embezzlement,
or obtaining money, property, or credit by | 10 | | false pretenses or by means of a
confidence
game.
| 11 | | (3) Inability to practice the profession with | 12 | | reasonable judgment, skill, or safety as a result of a | 13 | | physical illness, including, but not limited to, | 14 | | deterioration through the aging process or loss of motor | 15 | | skill, or a mental illness or disability.
| 16 | | (4) Practice under this Act as a licensee in a retail | 17 | | sales establishment from an office, desk, or space that
is | 18 | | not
separated from the main retail business by a separate | 19 | | and distinct area within
the
establishment.
| 20 | | (5) Having been disciplined by another state, the | 21 | | District of Columbia, a territory, a foreign nation, or a | 22 | | governmental agency authorized to impose discipline if at | 23 | | least one of the grounds for that discipline is the same as | 24 | | or
the
equivalent of one of the grounds for which a | 25 | | licensee may be disciplined under this Act. A certified | 26 | | copy of the record of the action by the other state or |
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| 1 | | jurisdiction shall be prima facie evidence thereof.
| 2 | | (6) Engaging in the practice of real estate brokerage
| 3 | | without a
license or after the licensee's license was | 4 | | expired or while the license was
inoperative.
| 5 | | (7) Cheating on or attempting to subvert the Real
| 6 | | Estate License Exam or continuing education exam. | 7 | | (8) Aiding or abetting an applicant
to
subvert or cheat | 8 | | on the Real Estate License Exam or continuing education | 9 | | exam
administered pursuant to this Act.
| 10 | | (9) Advertising that is inaccurate, misleading, or | 11 | | contrary to the provisions of the Act.
| 12 | | (10) Making any substantial misrepresentation or | 13 | | untruthful advertising.
| 14 | | (11) Making any false promises of a character likely to | 15 | | influence,
persuade,
or induce.
| 16 | | (12) Pursuing a continued and flagrant course of | 17 | | misrepresentation or the
making
of false promises through | 18 | | licensees, employees, agents, advertising, or
otherwise.
| 19 | | (13) Any misleading or untruthful advertising, or | 20 | | using any trade name or
insignia of membership in any real | 21 | | estate organization of which the licensee is
not a member.
| 22 | | (14) Acting for more than one party in a transaction | 23 | | without providing
written
notice to all parties for whom | 24 | | the licensee acts.
| 25 | | (15) Representing or attempting to represent a broker | 26 | | other than the
sponsoring broker.
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| 1 | | (16) Failure to account for or to remit any moneys or | 2 | | documents coming into
his or her possession that belong to | 3 | | others.
| 4 | | (17) Failure to maintain and deposit in a special | 5 | | account, separate and
apart from
personal and other | 6 | | business accounts, all escrow moneys belonging to others
| 7 | | entrusted to a licensee
while acting as a real estate | 8 | | broker, escrow agent, or temporary custodian of
the funds | 9 | | of others or
failure to maintain all escrow moneys on | 10 | | deposit in the account until the
transactions are
| 11 | | consummated or terminated, except to the extent that the | 12 | | moneys, or any part
thereof, shall be: | 13 | | (A)
disbursed prior to the consummation or | 14 | | termination (i) in accordance with
the
written | 15 | | direction of
the principals to the transaction or their | 16 | | duly authorized agents, (ii) in accordance with
| 17 | | directions providing for the
release, payment, or | 18 | | distribution of escrow moneys contained in any written
| 19 | | contract signed by the
principals to the transaction or | 20 | | their duly authorized agents,
or (iii)
pursuant to an | 21 | | order of a court of competent
jurisdiction; or | 22 | | (B) deemed abandoned and transferred to the Office | 23 | | of the State Treasurer to be handled as unclaimed | 24 | | property pursuant to the Uniform Disposition of | 25 | | Unclaimed Property Act. Escrow moneys may be deemed | 26 | | abandoned under this subparagraph (B) only: (i) in the |
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| 1 | | absence of disbursement under subparagraph (A); (ii) | 2 | | in the absence of notice of the filing of any claim in | 3 | | a court of competent jurisdiction; and (iii) if 6 | 4 | | months have elapsed after the receipt of a written | 5 | | demand for the escrow moneys from one of the principals | 6 | | to the transaction or the principal's duly authorized | 7 | | agent.
| 8 | | The account
shall be noninterest
bearing, unless the | 9 | | character of the deposit is such that payment of interest
| 10 | | 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 | | (18) Failure to make available to the Department all | 15 | | escrow records and related documents
maintained in | 16 | | connection
with the practice of real estate within 24 hours | 17 | | of a request for those
documents by Department personnel.
| 18 | | (19) Failing to furnish copies upon request of | 19 | | documents relating to a
real
estate transaction to a party | 20 | | who has executed that document.
| 21 | | (20) Failure of a sponsoring broker to timely provide | 22 | | information, sponsor
cards,
or termination of licenses to | 23 | | the Department.
| 24 | | (21) Engaging in dishonorable, unethical, or | 25 | | unprofessional conduct of a
character
likely to deceive, | 26 | | defraud, or harm the public.
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| 1 | | (22) Commingling the money or property of others with | 2 | | his or her own money or property.
| 3 | | (23) Employing any person on a purely temporary or | 4 | | single deal basis as a
means
of evading the law regarding | 5 | | payment of commission to nonlicensees on some
contemplated
| 6 | | transactions.
| 7 | | (24) Permitting the use of his or her license as a | 8 | | broker to enable a
leasing agent salesperson or
unlicensed | 9 | | person to operate a real estate business without actual
| 10 | | participation therein and control
thereof by the broker.
| 11 | | (25) Any other conduct, whether of the same or a | 12 | | different character from
that
specified in this Section, | 13 | | that constitutes dishonest dealing.
| 14 | | (26) Displaying a "for rent" or "for sale" sign on any | 15 | | property without
the written
consent of an owner or his or | 16 | | her duly authorized agent or advertising by any
means that | 17 | | any property is
for sale or for rent without the written | 18 | | consent of the owner or his or her
authorized agent.
| 19 | | (27) Failing to provide information requested by the | 20 | | Department, or otherwise respond to that request, within 30 | 21 | | days of
the
request.
| 22 | | (28) Advertising by means of a blind advertisement, | 23 | | except as otherwise
permitted in Section 10-30 of this Act.
| 24 | | (29) Offering guaranteed sales plans, as defined in | 25 | | clause (A) of
this subdivision (29), except to
the extent | 26 | | hereinafter set forth:
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| 1 | | (A) A "guaranteed sales plan" is any real estate | 2 | | purchase or sales plan
whereby a licensee enters into a | 3 | | conditional or unconditional written contract
with a | 4 | | seller, prior to entering into a brokerage agreement | 5 | | with the seller, by the
terms of which a licensee | 6 | | agrees to purchase a property of the seller within a
| 7 | | specified period of time
at a specific price in the | 8 | | event the property is not sold in accordance with
the | 9 | | terms of a brokerage agreement to be entered into | 10 | | between the sponsoring broker and the seller.
| 11 | | (B) A licensee offering a guaranteed sales plan | 12 | | shall provide the
details
and conditions of the plan in | 13 | | writing to the party to whom the plan is
offered.
| 14 | | (C) A licensee offering a guaranteed sales plan | 15 | | shall provide to the
party
to whom the plan is offered | 16 | | evidence of sufficient financial resources to
satisfy | 17 | | the commitment to
purchase undertaken by the broker in | 18 | | the plan.
| 19 | | (D) Any licensee offering a guaranteed sales plan | 20 | | shall undertake to
market the property of the seller | 21 | | subject to the plan in the same manner in
which the | 22 | | broker would
market any other property, unless the | 23 | | agreement with the seller provides
otherwise.
| 24 | | (E) The licensee cannot purchase seller's property | 25 | | until the brokerage agreement has ended according to | 26 | | its terms or is otherwise terminated. |
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| 1 | | (F) Any licensee who fails to perform on a | 2 | | guaranteed sales plan in
strict accordance with its | 3 | | terms shall be subject to all the penalties provided
in | 4 | | this Act for
violations thereof and, in addition, shall | 5 | | be subject to a civil fine payable
to the party injured | 6 | | by the
default in an amount of up to $25,000.
| 7 | | (30) Influencing or attempting to influence, by any | 8 | | words or acts, a
prospective
seller, purchaser, occupant, | 9 | | landlord, or tenant of real estate, in connection
with | 10 | | viewing, buying, or
leasing real estate, so as to promote | 11 | | or tend to promote the continuance
or maintenance of
| 12 | | racially and religiously segregated housing or so as to | 13 | | retard, obstruct, or
discourage racially
integrated | 14 | | housing on or in any street, block, neighborhood, or | 15 | | community.
| 16 | | (31) Engaging in any act that constitutes a violation | 17 | | of any provision of
Article 3 of the Illinois Human Rights | 18 | | Act, whether or not a complaint has
been filed with or
| 19 | | adjudicated by the Human Rights Commission.
| 20 | | (32) Inducing any party to a contract of sale or lease | 21 | | or brokerage
agreement to
break the contract of sale or | 22 | | lease or brokerage agreement for the purpose of
| 23 | | substituting, in lieu
thereof, a new contract for sale or | 24 | | lease or brokerage agreement with a third
party.
| 25 | | (33) Negotiating a sale, exchange, or lease of real | 26 | | estate directly with
any person
if the licensee knows that |
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| 1 | | the person has an exclusive brokerage
agreement with | 2 | | another
broker, unless specifically authorized by that | 3 | | broker.
| 4 | | (34) When a licensee is also an attorney, acting as the | 5 | | attorney for
either the
buyer or the seller in the same | 6 | | transaction in which the licensee is acting or
has acted as | 7 | | a managing broker
or broker salesperson .
| 8 | | (35) Advertising or offering merchandise or services | 9 | | as free if any
conditions or
obligations necessary for | 10 | | receiving the merchandise or services are not
disclosed in | 11 | | the same
advertisement or offer. These conditions or | 12 | | obligations include without
limitation the
requirement | 13 | | that the recipient attend a promotional activity or visit a | 14 | | real
estate site. As used in this
subdivision (35), "free" | 15 | | includes terms such as "award", "prize", "no charge",
"free | 16 | | of charge",
"without charge", and similar words or phrases | 17 | | that reasonably lead a person to
believe that he or she
may | 18 | | receive or has been selected to receive something of value, | 19 | | without any
conditions or
obligations on the part of the | 20 | | recipient.
| 21 | | (36) Disregarding or violating any provision of the | 22 | | Land Sales
Registration Act of 1989, the Illinois Real | 23 | | Estate
Time-Share Act, or the published rules promulgated | 24 | | by the Department to enforce
those Acts.
| 25 | | (37) Violating the terms of a disciplinary order
issued | 26 | | by the Department.
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| 1 | | (38) Paying or failing to disclose compensation in | 2 | | violation of Article 10 of this Act.
| 3 | | (39) Requiring a party to a transaction who is not a | 4 | | client of the
licensee
to allow the licensee to retain a | 5 | | portion of the escrow moneys for payment of
the licensee's | 6 | | commission or expenses as a condition for release of the | 7 | | escrow
moneys to that party.
| 8 | | (40) Disregarding or violating any provision of this | 9 | | Act or the published
rules
promulgated by the Department to | 10 | | enforce this Act or aiding or abetting any individual,
| 11 | | partnership, registered limited liability partnership, | 12 | | limited liability
company, or corporation in
disregarding | 13 | | any provision of this Act or the published rules | 14 | | promulgated by the Department
to enforce this Act.
| 15 | | (41) Failing to provide the minimum services required | 16 | | by Section 15-75 of this Act when acting under an exclusive | 17 | | brokerage agreement.
| 18 | | (42) Habitual or excessive use or addiction to alcohol, | 19 | | narcotics, stimulants, or any other chemical agent or drug | 20 | | that results in a managing broker, broker, salesperson, or | 21 | | leasing agent's inability to practice with reasonable | 22 | | skill or safety. | 23 | | (43) Enabling, aiding, or abetting an auctioneer, as | 24 | | defined in the Auction License Act, to conduct a real | 25 | | estate auction in a manner that is in violation of this | 26 | | Act. |
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| 1 | | (b) The Department may refuse to issue or renew or may | 2 | | suspend the license of any person who fails to file a return, | 3 | | pay the tax, penalty or interest shown in a filed return, or | 4 | | pay any final assessment of tax, penalty, or interest, as | 5 | | required by any tax Act administered by the Department of | 6 | | Revenue, until such time as the requirements of that tax Act | 7 | | are satisfied in accordance with subsection (g) of Section | 8 | | 2105-15 of the Civil Administrative Code of Illinois. | 9 | | (c) The Department shall deny a license or renewal | 10 | | authorized by this Act to a person who has defaulted on an | 11 | | educational loan or scholarship provided or guaranteed by the | 12 | | Illinois Student Assistance Commission or any governmental | 13 | | agency of this State in accordance with item (5) of subsection | 14 | | (a) of Section 2105-15 of the Civil Administrative Code of | 15 | | Illinois. | 16 | | (d) In cases where the Department of Healthcare and Family | 17 | | Services (formerly Department of Public Aid) has previously | 18 | | determined that a licensee or a potential licensee is more than | 19 | | 30 days delinquent in the payment of child support and has | 20 | | subsequently certified the delinquency to the Department may | 21 | | refuse to issue or renew or may revoke or suspend that person's | 22 | | license or may take other disciplinary action against that | 23 | | person based solely upon the certification of delinquency made | 24 | | by the Department of Healthcare and Family Services in | 25 | | accordance with item (5) of subsection (a) of Section 2105-15 | 26 | | of the Civil Administrative Code of Illinois. |
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| 1 | | (e) In enforcing this Section, the Department or Board upon | 2 | | a showing of a possible violation may compel an individual | 3 | | licensed to practice under this Act, or who has applied for | 4 | | licensure under this Act, to submit to a mental or physical | 5 | | examination, or both, as required by and at the expense of the | 6 | | Department. The Department or Board may order the examining | 7 | | physician to present testimony concerning the mental or | 8 | | physical examination of the licensee or applicant. No | 9 | | information shall be excluded by reason of any common law or | 10 | | statutory privilege relating to communications between the | 11 | | licensee or applicant and the examining physician. The | 12 | | examining physicians shall be specifically designated by the | 13 | | Board or Department. The individual to be examined may have, at | 14 | | his or her own expense, another physician of his or her choice | 15 | | present during all aspects of this examination. Failure of an | 16 | | individual to submit to a mental or physical examination, when | 17 | | directed, shall be grounds for suspension of his or her license | 18 | | until the individual submits to the examination if the | 19 | | Department finds, after notice and hearing, that the refusal to | 20 | | submit to the examination was without reasonable cause. | 21 | | If the Department or Board finds an individual unable to | 22 | | practice because of the reasons set forth in this Section, the | 23 | | Department or Board may require that individual to submit to | 24 | | care, counseling, or treatment by physicians approved or | 25 | | designated by the Department or Board, as a condition, term, or | 26 | | restriction for continued, reinstated, or renewed licensure to |
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| 1 | | practice; or, in lieu of care, counseling, or treatment, the | 2 | | Department may file, or the Board may recommend to the | 3 | | Department to file, a complaint to immediately suspend, revoke, | 4 | | or otherwise discipline the license of the individual. An | 5 | | individual whose license was granted, continued, reinstated, | 6 | | renewed, disciplined or supervised subject to such terms, | 7 | | conditions, or restrictions, and who fails to comply with such | 8 | | terms, conditions, or restrictions, shall be referred to the | 9 | | Secretary for a determination as to whether the individual | 10 | | shall have his or her license suspended immediately, pending a | 11 | | hearing by the Department. | 12 | | In instances in which the Secretary immediately suspends a | 13 | | person's license under this Section, a hearing on that person's | 14 | | license must be convened by the Department within 30 days after | 15 | | the suspension and completed without appreciable delay. The | 16 | | Department and Board shall have the authority to review the | 17 | | subject individual's record of treatment and counseling | 18 | | regarding the impairment to the extent permitted by applicable | 19 | | federal statutes and regulations safeguarding the | 20 | | confidentiality of medical records. | 21 | | An individual licensed under this Act and affected under | 22 | | this Section shall be afforded an opportunity to demonstrate to | 23 | | the Department or Board that he or she can resume practice in | 24 | | compliance with acceptable and prevailing standards under the | 25 | | provisions of his or her license. | 26 | | (Source: P.A. 97-813, eff. 7-13-12; 97-1002, eff. 8-17-12; |
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| 1 | | 98-553, eff. 1-1-14; 98-756, eff. 7-16-14.)
| 2 | | (225 ILCS 454/20-21) | 3 | | (Section scheduled to be repealed on January 1, 2020) | 4 | | Sec. 20-21. Injunctions; cease and 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, through the Attorney General of the State of Illinois | 8 | | or the State's Attorney for any county in which the action is | 9 | | brought, petition for an order enjoining the violation or for | 10 | | an order enforcing compliance with this Act. Upon the filing of | 11 | | a verified petition in court, the court may issue a temporary | 12 | | restraining order, without notice or condition, and may | 13 | | preliminarily and permanently enjoin the violation. If it is | 14 | | established that the person has violated or is violating the | 15 | | injunction, the Court may punish the offender for contempt of | 16 | | court. Proceedings under this Section shall be in addition to, | 17 | | and not in lieu of, all other remedies and penalties provided | 18 | | by this Act. | 19 | | (b) Whenever in the opinion of the Department a person | 20 | | violates a provision of this Act, the Department may issue a | 21 | | ruling to show cause why an order to cease and desist should | 22 | | not be entered against that person. The rule shall clearly set | 23 | | forth the grounds relied upon by the Department and shall allow | 24 | | at least 7 days from the date of the rule to file an answer to | 25 | | the satisfaction of the Department. Failure to answer to the |
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| 1 | | satisfaction of the Department shall cause an order to cease | 2 | | and desist to be issued immediately. | 3 | | (c) Other than as provided in Section 5-20 of this Act, if | 4 | | any person practices as a managing real estate broker, broker, | 5 | | real estate salesperson or leasing agent or holds himself or | 6 | | herself out as a licensed sponsoring broker, managing broker, | 7 | | real estate broker, real estate salesperson or leasing agent | 8 | | under this Act without being issued a valid existing license by | 9 | | the Department, then any licensed sponsoring broker, managing | 10 | | broker, real estate broker, real estate salesperson, leasing | 11 | | agent, any interested party, or any person injured thereby may, | 12 | | in addition to the Secretary, petition for relief as provided | 13 | | in subsection (a) of this Section.
| 14 | | (Source: P.A. 96-856, eff. 12-31-09.) | 15 | | (225 ILCS 454/20-22) | 16 | | (Section scheduled to be repealed on January 1, 2020) | 17 | | Sec. 20-22. Violations. Any person who is found working or | 18 | | acting as a managing broker, real estate broker, real estate | 19 | | salesperson, or leasing agent or holding himself or herself out | 20 | | as a licensed sponsoring broker, managing broker, real estate | 21 | | broker, real estate salesperson, or leasing agent without being | 22 | | issued a valid existing license is guilty of a Class A | 23 | | misdemeanor and on conviction of a second or subsequent offense | 24 | | the violator shall be guilty of a Class 4 felony.
| 25 | | (Source: P.A. 96-856, eff. 12-31-09.)
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| 1 | | (225 ILCS 454/20-85)
| 2 | | (Section scheduled to be repealed on January 1, 2020)
| 3 | | Sec. 20-85. Recovery from Real Estate Recovery Fund. The | 4 | | Department shall maintain a Real Estate Recovery Fund from | 5 | | which any person aggrieved
by an act,
representation, | 6 | | transaction, or conduct of a licensee or unlicensed employee of
| 7 | | a licensee that is
in violation of this Act or the rules | 8 | | promulgated pursuant thereto,
constitutes
embezzlement of | 9 | | money or property, or results in money or property being
| 10 | | unlawfully obtained
from any person by false pretenses, | 11 | | artifice, trickery, or forgery or by reason
of any fraud,
| 12 | | misrepresentation, discrimination, or deceit by or on the part | 13 | | of any such
licensee or the unlicensed
employee of a licensee | 14 | | and that results in a loss of actual cash money, as
opposed to | 15 | | losses in
market value, rent, or security deposits, may | 16 | | recover. The aggrieved person may recover, by a post-judgment | 17 | | order of the
circuit court of the
county where the violation | 18 | | occurred in a proceeding described in Section 20-90 of this | 19 | | Act, an amount of not more than $25,000 from
the Fund for
| 20 | | damages sustained by the act, representation, transaction, or | 21 | | conduct, together
with costs of suit and
attorney's fees | 22 | | incurred in connection therewith of not to exceed 15% of the
| 23 | | amount of the recovery
ordered paid from the Fund. However, no | 24 | | person licensee may
recover from the
Fund unless the court | 25 | | finds that the person suffered a loss resulting from
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| 1 | | intentional misconduct.
The post-judgment order shall not | 2 | | include interest on the judgment.
The maximum liability against | 3 | | the Fund arising out of any one act shall be as
provided in | 4 | | this
Section, and the post-judgment order shall spread the | 5 | | award equitably among all
co-owners or otherwise
aggrieved | 6 | | persons, if any. The maximum liability against the Fund arising | 7 | | out
of the activities of
any one licensee or one unlicensed | 8 | | employee of a licensee, since January 1,
1974, shall be | 9 | | $100,000.
Nothing in this Section shall be construed to | 10 | | authorize recovery from the Fund
unless the loss of the | 11 | | aggrieved person results from an act or omission of a licensee | 12 | | under this Act
who was at the time of the act or omission
| 13 | | acting in such
capacity or was apparently acting in such | 14 | | capacity or their unlicensed employee and unless the aggrieved
| 15 | | person has obtained a
valid judgment and post-judgment order of | 16 | | the court as provided for in Section 20-90 of this Act.
No | 17 | | person aggrieved by an act, representation, or transaction that | 18 | | is in
violation of the Illinois
Real Estate Time-Share Act or | 19 | | the Land Sales Registration Act of 1989 may
recover from the
| 20 | | Fund.
| 21 | | (Source: P.A. 96-856, eff. 12-31-09; 97-1002, eff. 8-17-12.)
| 22 | | (225 ILCS 454/25-10)
| 23 | | (Section scheduled to be repealed on January 1, 2020)
| 24 | | Sec. 25-10. Real Estate Administration and Disciplinary
| 25 | | Board;
duties.
There is created the Real Estate Administration |
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| 1 | | and Disciplinary Board.
The Board shall be composed of 9 | 2 | | persons appointed by the Governor. Members
shall be
appointed | 3 | | to the Board subject to the following conditions:
| 4 | | (1) All members shall have been residents and citizens | 5 | | of this State for
at least 6 years
prior to the date of | 6 | | appointment.
| 7 | | (2) Six members shall have been actively engaged as | 8 | | managing brokers or
brokers salespersons or both for
at | 9 | | least the 10 years prior to the appointment.
| 10 | | (3) Three members of the Board shall be public members | 11 | | who represent
consumer
interests.
| 12 | | None of these members shall be (i) a person who is licensed | 13 | | under this
Act or a similar Act of another jurisdiction, (ii) | 14 | | the spouse or family member of a licensee, (iii) a person who | 15 | | has an ownership interest in a
real estate brokerage
business, | 16 | | or (iv) a person the Department determines to have any other | 17 | | connection with a real estate brokerage business or a licensee.
| 18 | | The members' terms shall be 4 years or until their successor is | 19 | | appointed, and the expiration of their terms shall be
| 20 | | staggered.
Appointments to fill vacancies shall be for the | 21 | | unexpired portion of the term.
The membership of the Board | 22 | | should reasonably reflect the geographic
distribution of the | 23 | | licensee
population in this State. In making the appointments, | 24 | | the Governor shall give
due consideration
to the | 25 | | recommendations by members and organizations of the | 26 | | profession.
The Governor may terminate the appointment of any |
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| 1 | | member for cause that in the
opinion of the
Governor reasonably | 2 | | justifies the termination. Cause for termination shall
include | 3 | | without limitation
misconduct, incapacity, neglect of duty, or | 4 | | missing 4 board meetings during any
one
calendar year.
Each | 5 | | member of the Board may receive a per diem stipend in an amount | 6 | | to be
determined by the Secretary. Each member shall be paid | 7 | | his or her necessary expenses while
engaged in the
performance | 8 | | of his or her duties. Such compensation and expenses shall be | 9 | | paid
out of the Real Estate
License Administration Fund.
The | 10 | | Secretary shall consider the recommendations of the Board on | 11 | | questions
involving
standards of professional conduct, | 12 | | discipline, and examination of candidates
under this Act. The | 13 | | Department, after notifying and considering the | 14 | | recommendations of the Board, if any,
may issue rules,
| 15 | | consistent with the provisions of this Act, for the | 16 | | administration and
enforcement thereof and may
prescribe forms | 17 | | that shall be used in connection therewith. Five Board members | 18 | | shall constitute a quorum. A quorum is required for all Board | 19 | | decisions.
| 20 | | (Source: P.A. 98-1109, eff. 1-1-15 .)
| 21 | | (225 ILCS 454/25-25)
| 22 | | (Section scheduled to be repealed on January 1, 2020)
| 23 | | Sec. 25-25. Real Estate Research and Education Fund. A | 24 | | special fund to be known as the Real Estate Research and | 25 | | Education Fund is
created and shall be
held in trust in the |
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| 1 | | State Treasury. Annually, on September 15th, the State
| 2 | | Treasurer shall cause a
transfer of $125,000 to the Real Estate | 3 | | Research and Education Fund from the
Real Estate License
| 4 | | Administration Fund. The Real Estate Research and Education | 5 | | Fund shall be
administered by
the Department. Money deposited | 6 | | in the Real Estate Research and Education Fund may be
used for | 7 | | research and
education at state
institutions of higher | 8 | | education or other organizations for research and the
| 9 | | advancement of
education in the real estate industry.
Of the | 10 | | $125,000 annually transferred into the Real Estate Research and
| 11 | | Education Fund, $15,000
shall be used to fund a scholarship | 12 | | program for persons of minority racial
origin who wish to
| 13 | | pursue a course of study in the field of real estate. For the | 14 | | purposes of this
Section, "course of
study" means a course or | 15 | | courses that are part of a program of courses in the
field of | 16 | | real estate
designed to further an individual's knowledge or | 17 | | expertise in the field of real
estate. These courses
shall | 18 | | include without limitation courses that a salesperson licensed | 19 | | under this
Act must
complete to qualify for a real estate | 20 | | broker's license, courses that a broker licensed under this Act | 21 | | must complete to qualify for a managing broker's license, | 22 | | courses required to
obtain the Graduate
Realtors Institute | 23 | | designation, and any other courses or programs offered by
| 24 | | accredited colleges,
universities, or other institutions of | 25 | | higher education in Illinois. The
scholarship program shall be
| 26 | | administered by the Department or its designee.
Moneys in the |
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| 1 | | Real Estate Research and Education Fund may be invested and
| 2 | | reinvested in the
same manner as funds in the Real Estate | 3 | | Recovery Fund and all earnings,
interest, and dividends
| 4 | | received from such investments shall be deposited in the Real | 5 | | Estate Research
and Education Fund
and may be used for the same | 6 | | purposes as moneys transferred to the Real Estate
Research and | 7 | | Education Fund. Moneys in the Real Estate Research and | 8 | | Education Fund may be transferred to the Professions Indirect | 9 | | Cost Fund as authorized under Section 2105-300 of the | 10 | | Department of Professional Regulation Law of the Civil | 11 | | Administrative Code of Illinois.
| 12 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 13 | | (225 ILCS 454/30-15)
| 14 | | (Section scheduled to be repealed on January 1, 2020)
| 15 | | Sec. 30-15. Licensing of continuing education schools; | 16 | | approval of
courses. | 17 | | (a) Only continuing education schools in possession of a | 18 | | valid continuing
education
school license
may provide real | 19 | | estate continuing education courses that will satisfy the
| 20 | | requirements of this
Act. Pre-license schools licensed to offer | 21 | | pre-license education courses for
salespersons, brokers and
| 22 | | managing brokers shall qualify for a continuing education | 23 | | school license upon completion
of an application
and the | 24 | | submission of the required fee. Every entity that desires to | 25 | | obtain a
continuing education
school license shall make |
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| 1 | | application to the Department in writing in forms prescribed by | 2 | | the Department
and pay
the fee prescribed by rule. In addition | 3 | | to any other information required to
be contained in the
| 4 | | application, every application for an original or renewed | 5 | | license shall include
the applicant's Social
Security number.
| 6 | | (b) The criteria for a continuing education license
shall | 7 | | include the
following:
| 8 | | (1) A sound financial base for establishing, | 9 | | promoting, and delivering the
necessary
courses. Budget | 10 | | planning for the School's courses should be clearly | 11 | | projected.
| 12 | | (2) A sufficient number of qualified, licensed | 13 | | instructors as provided by
rule.
| 14 | | (3) Adequate support personnel to assist with | 15 | | administrative matters and
technical
assistance.
| 16 | | (4) Maintenance and availability of records of | 17 | | participation for
licensees.
| 18 | | (5) The ability to provide each participant who | 19 | | successfully completes an
approved
program with a | 20 | | certificate of completion signed by the administrator of a
| 21 | | licensed continuing
education school on forms provided by | 22 | | the Department.
| 23 | | (6) The continuing education school must have a written | 24 | | policy dealing
with
procedures for the management of | 25 | | grievances and fee refunds.
| 26 | | (7) The continuing education school shall maintain |
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| 1 | | lesson plans and
examinations for
each course.
| 2 | | (8) The continuing education school shall require a 70% | 3 | | passing grade for
successful
completion of any continuing | 4 | | education course.
| 5 | | (9) The continuing education school shall identify and | 6 | | use instructors who
will teach
in a planned program. | 7 | | Suggested criteria for instructor selections include:
| 8 | | (A) appropriate credentials;
| 9 | | (B) competence as a teacher;
| 10 | | (C) knowledge of content area; and
| 11 | | (D) qualification by experience.
| 12 | | (10) The continuing education school shall provide a | 13 | | proctor or an electronic means of proctoring for each | 14 | | examination. The continuing education school shall be | 15 | | responsible for the conduct of the proctor. The duties and | 16 | | responsibilities of a proctor shall be established by rule. | 17 | | (11) The continuing education school must provide for | 18 | | closed book examinations for each course unless the | 19 | | Advisory Council excuses this requirement based on the | 20 | | complexity of the course material. | 21 | | (c) Advertising and promotion of continuing education | 22 | | activities must be
carried out in
a responsible fashion, | 23 | | clearly showing the educational objectives of the
activity, the | 24 | | nature of the
audience that may benefit from the activity, the | 25 | | cost of the activity to the
participant and the items
covered | 26 | | by the cost, the amount of credit that can be earned, and the
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| 1 | | credentials of the faculty.
| 2 | | (d) The Department may or upon request of the Advisory | 3 | | Council shall, after notice,
cause a
continuing education | 4 | | school to attend an informal conference before the
Advisory | 5 | | Council for
failure to comply with any requirement for | 6 | | licensure or for failure to comply
with any provision of
this | 7 | | Act or the rules for the administration of this Act. The | 8 | | Advisory Council
shall make a
recommendation to the Board as a | 9 | | result of its findings at the conclusion of
any such informal
| 10 | | conference.
| 11 | | (e) All continuing education schools shall maintain these | 12 | | minimum criteria
and pay
the required fee in order to retain | 13 | | their continuing education school license.
| 14 | | (f) All continuing education schools shall submit, at the | 15 | | time of initial
application and
with each license renewal, a | 16 | | list of courses with course materials to be
offered by the | 17 | | continuing
education school. The Department, however, shall | 18 | | establish a mechanism whereby
continuing education
schools may | 19 | | apply for and obtain approval for continuing education courses | 20 | | that
are submitted
after the time of initial application or | 21 | | renewal. The Department shall provide to each
continuing | 22 | | education
school a certificate for each approved continuing | 23 | | education course. All
continuing education
courses shall be | 24 | | valid for the period coinciding with the term of license of
the | 25 | | continuing education
school. All continuing education schools | 26 | | shall provide a copy of the
certificate of the continuing
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| 1 | | education course within the course materials given to each | 2 | | student or shall
display a copy of the
certificate of the | 3 | | continuing education course in a conspicuous place at the
| 4 | | location of the class.
| 5 | | (g) Each continuing education school shall provide to the | 6 | | Department a monthly report
in a
format determined by the | 7 | | Department, with information concerning students who
| 8 | | successfully completed all
approved continuing education | 9 | | courses offered by the continuing education
school for the | 10 | | prior
month.
| 11 | | (h) The Department, upon the recommendation of the Advisory | 12 | | Council, may temporarily
suspend a licensed continuing | 13 | | education school's approved courses without
hearing and refuse | 14 | | to
accept successful completion of or participation in any of | 15 | | these continuing
education courses for
continuing education | 16 | | credit from that school upon the failure of that
continuing | 17 | | education school
to comply with the provisions of this Act or | 18 | | the rules for the administration
of this Act, until such
time | 19 | | as the Department receives satisfactory assurance of | 20 | | compliance. The Department shall notify
the continuing
| 21 | | education school of the noncompliance and may initiate | 22 | | disciplinary
proceedings pursuant to
this Act. The Department
| 23 | | may refuse to issue, suspend, revoke, or otherwise discipline | 24 | | the license
of a continuing
education school or may withdraw | 25 | | approval of a continuing education course for
good cause.
| 26 | | Failure to comply with the requirements of this Section or any |
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| 1 | | other
requirements
established by rule shall
be deemed to be | 2 | | good cause. Disciplinary proceedings shall be conducted by the
| 3 | | Board in the same
manner as other disciplinary proceedings | 4 | | under this Act.
| 5 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 6 | | (225 ILCS 454/35-5)
| 7 | | (Section scheduled to be repealed on January 1, 2020)
| 8 | | Sec. 35-5. Savings provisions.
| 9 | | (a) This Act is intended to replace the Real Estate License | 10 | | Act of 1983 in
all respects.
| 11 | | (b) The Beginning December 31, 1999, the rights, powers, | 12 | | and duties exercised by
the
Office of Banks and
Real Estate | 13 | | under the Real Estate License Act of 1983 shall continue to be
| 14 | | vested in, be the
obligation of, and shall be exercised by the | 15 | | Division of Real Estate of the Department of Financial and | 16 | | Professional Regulation Office of Banks and Real Estate
under | 17 | | the provisions of
this Act.
| 18 | | (c) This Act does not affect any act done, ratified, or | 19 | | cancelled, or any
right occurring or
established, or any action | 20 | | or proceeding had or commenced in an administrative,
civil, or | 21 | | criminal
cause before December 31, 1999, by the Office of Banks | 22 | | and Real Estate under
the
Real Estate License
Act of 1983, and | 23 | | those actions or proceedings may be prosecuted and continued
by | 24 | | the Division of Real Estate of the Department of Financial and | 25 | | Professional Regulation Office of
Banks and Real Estate under |
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| 1 | | this Act.
| 2 | | (d) This Act does not affect any license, certificate, | 3 | | permit, or other form
of licensure or
authorization issued by | 4 | | the Office of Banks and Real Estate under the Real
Estate | 5 | | License Act of
1983 or by the Division of Professional | 6 | | Regulation of the Department of Financial and Professional | 7 | | Regulation under this Act , and all such licenses, certificates, | 8 | | permits, or other form of licensure
or authorization shall
| 9 | | continue to be valid under the terms and conditions of this | 10 | | Act.
| 11 | | (e) The rules adopted by the Office of Banks and Real | 12 | | Estate relating to the
Real Estate License
Act of 1983, unless | 13 | | inconsistent with the provisions of this Act, are not
affected | 14 | | by this Act, and on
December 31, 1999 those rules become the | 15 | | rules under this Act. The Office of
Banks
and Real Estate | 16 | | shall,
as soon as practicable, adopt new or amended rules | 17 | | consistent with the
provisions of this Act.
| 18 | | (f) This Act does not affect any discipline, suspension, or | 19 | | termination
taken under the Real
Estate License Act of 1983 and | 20 | | that discipline, suspension, or termination
shall be continued | 21 | | under
this Act.
| 22 | | (g) This Act does not affect any appointments, term | 23 | | limitations, years
served, or other matters
relating to | 24 | | individuals serving on any board or council under the Real | 25 | | Estate
License Act of 1983,
and these appointments, term | 26 | | limitations, years served, and other matters shall
be continued |
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| 1 | | under
this Act.
| 2 | | (Source: P.A. 91-245, eff. 12-31-99 .)
| 3 | | (225 ILCS 454/5-46 rep.) | 4 | | (225 ILCS 454/5-47 rep.) | 5 | | Section 10. The Real Estate License Act of 2000 is amended | 6 | | by repealing Sections 5-46 and 5-47.
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 225 ILCS 454/1-10 | | | 4 | | 225 ILCS 454/5-5 | | | 5 | | 225 ILCS 454/5-10 | | | 6 | | 225 ILCS 454/5-15 | | | 7 | | 225 ILCS 454/5-20 | | | 8 | | 225 ILCS 454/5-26 | | | 9 | | 225 ILCS 454/5-27 | | | 10 | | 225 ILCS 454/5-28 | | | 11 | | 225 ILCS 454/5-32 | | | 12 | | 225 ILCS 454/5-35 | | | 13 | | 225 ILCS 454/5-41 | | | 14 | | 225 ILCS 454/5-50 | | | 15 | | 225 ILCS 454/5-60 | | | 16 | | 225 ILCS 454/5-70 | | | 17 | | 225 ILCS 454/10-10 | | | 18 | | 225 ILCS 454/10-15 | | | 19 | | 225 ILCS 454/15-5 | | | 20 | | 225 ILCS 454/20-10 | | | 21 | | 225 ILCS 454/20-20 | | | 22 | | 225 ILCS 454/20-21 | | | 23 | | 225 ILCS 454/20-22 | | | 24 | | 225 ILCS 454/20-85 | | | 25 | | 225 ILCS 454/25-10 | | |
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| 1 | | 225 ILCS 454/25-25 | | | 2 | | 225 ILCS 454/30-15 | | | 3 | | 225 ILCS 454/35-5 | | | 4 | | 225 ILCS 454/5-46 rep. | | | 5 | | 225 ILCS 454/5-47 rep. | |
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