State of Illinois
91st General Assembly
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[ Introduced ][ Enrolled ][ House Amendment 001 ]

91_HB0902eng

 
HB0902 Engrossed                              LRB9104235LDmbA

 1        AN ACT concerning real estate, amending named Acts.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4                   ARTICLE 1.  GENERAL PROVISIONS

 5        Section 1-1.  Short title;  Act  supersedes  Real  Estate
 6    License Act of 1983. This Act shall be known and may be cited
 7    as  the  Real  Estate  License  Act  of  2000,  and  it shall
 8    supersede the Real Estate License Act  of  1983  repealed  by
 9    this Act.

10        Section  1-5.   Legislative  intent.  The  intent  of the
11    General Assembly in enacting this statute is to evaluate  the
12    competency of persons engaged in the real estate business and
13    to regulate this business for the protection of the public.

14        Section  1-10.   Definitions.  In  this  Act,  unless the
15    context otherwise requires:
16        "Act" means the Real Estate License Act of 2000.
17        "Advisory  Council"  means  the  Real  Estate   Education
18    Advisory Council created under Section 30-10 of this Act.
19        "Agency"  means  a  relationship  in  which a real estate
20    broker or licensee, whether directly or through an affiliated
21    licensee, represents a consumer by  the  consumer's  consent,
22    whether express or implied, in a real property transaction.
23        "Applicant" means any person, as defined in this Section,
24    who  applies  to  OBRE  for  a valid license as a real estate
25    broker, real estate salesperson, or leasing agent.
26        "Blind advertisement" means any real estate advertisement
27    that does not include the sponsoring broker's  business  name
28    and  that is used by any licensee regarding the sale or lease
29    of  real  estate,  including  his  or   her   own,   licensed
 
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 1    activities,  or  the  hiring  of any licensee under this Act.
 2    The broker's business name in the case of a  franchise  shall
 3    include  the franchise affiliation as well as the name of the
 4    individual firm.
 5        "Board"  means  the  Real   Estate   Administration   and
 6    Disciplinary Board of OBRE.
 7        "Branch  office" means a sponsoring broker's office other
 8    than the sponsoring broker's principal office.
 9        "Broker"  means  an  individual,   partnership,   limited
10    liability   company,   corporation,   or  registered  limited
11    liability partnership other than a real estate salesperson or
12    leasing agent who for another  and  for  compensation  either
13    directly or indirectly:
14             (1)  Sells,  exchanges,  purchases, rents, or leases
15        real estate.
16             (2)  Offers to sell, exchange,  purchase,  rent,  or
17        lease real estate.
18             (3)  Negotiates,  offers,  attempts,  or  agrees  to
19        negotiate   the  sale,  exchange,  purchase,  rental,  or
20        leasing of real estate.
21             (4)  Lists, offers, attempts, or agrees to list real
22        estate for sale, lease, or exchange.
23             (5)  Buys,  sells,  offers  to  buy  or   sell,   or
24        otherwise deals in options on real estate or improvements
25        thereon.
26             (6)  Supervises  the  collection, offer, attempt, or
27        agreement to collect rent for the use of real estate.
28             (7)  Advertises or represents himself or herself  as
29        being   engaged  in  the  business  of  buying,  selling,
30        exchanging, renting, or leasing real estate.
31             (8)  Assists or directs in procuring or referring of
32        prospects, intended to  result  in  the  sale,  exchange,
33        lease, or rental of real estate.
34             (9)  Assists  or  directs  in the negotiation of any
 
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 1        transaction intended to result  in  the  sale,  exchange,
 2        lease, or rental of real estate.
 3             (10)  Opens  real estate to the public for marketing
 4        purposes.
 5        "Brokerage agreement" means a written or  oral  agreement
 6    between  a  sponsoring  broker  and  a  consumer for licensed
 7    activities to  be  provided  to  a  consumer  in  return  for
 8    compensation  or  the  right  to  receive  compensation  from
 9    another.   Brokerage   agreements  may  constitute  either  a
10    bilateral or a unilateral agreement between  the  broker  and
11    the  broker's  client  depending  upon  the  content  of  the
12    brokerage agreement. All exclusive brokerage agreements shall
13    be in writing.
14        "Client"  means  a  person  who is being represented by a
15    licensee.
16        "Commissioner" means the Commissioner of Banks  and  Real
17    Estate or a person authorized by the Commissioner, the Office
18    of  Banks  and  Real  Estate  Act,  or this Act to act in the
19    Commissioner's stead.
20        "Compensation" means the valuable consideration given  by
21    one  person or entity to another person or entity in exchange
22    for  the   performance   of   some   activity   or   service.
23    Compensation   shall   include   the   transfer  of  valuable
24    consideration, including without limitation the following:
25             (1)  commissions;
26             (2)  referral fees;
27             (3)  bonuses;
28             (4)  prizes;
29             (5)  merchandise;
30             (6)  finder fees;
31             (7)  performance of services;
32             (8)  coupons or gift certificates;
33             (9)  discounts;
34             (10)  rebates;
 
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 1             (11)  a chance to win a raffle, drawing, lottery, or
 2        similar game of chance not prohibited by any other law or
 3        statute;
 4             (12)  retainer fee; or
 5             (13)  salary.
 6        "Confidential information" means information obtained  by
 7    a  licensee  from  a  client  during  the term of a brokerage
 8    agreement that (i)  was  made  confidential  by  the  written
 9    request or written instruction of the client, (ii) deals with
10    the   negotiating   position  of  the  client,  or  (iii)  is
11    information the disclosure of which could materially harm the
12    negotiating position of the client, unless at any time:
13             (1)  the   client   permits   the   disclosure    of
14        information given by that client by word or conduct;
15             (2)  the disclosure is required by law; or
16             (3)  the  information  becomes  public from a source
17        other than the licensee.
18        "Confidential information" shall  not  be  considered  to
19    include  material information about the physical condition of
20    the property.
21        "Consumer" means a person or entity seeking or  receiving
22    licensed activities.
23        "Continuing  education  school" means any person licensed
24    by OBRE as a school for continuing  education  in  accordance
25    with Section 30-15 of this Act.
26        "Credit  hour"  means 50 minutes of classroom instruction
27    in course work that meets the requirements set forth in rules
28    adopted by OBRE.
29        "Customer" means a consumer who is not being  represented
30    by  the  licensee  but  for  whom  the licensee is performing
31    ministerial acts.
32        "Designated  agency"  means  a  contractual  relationship
33    between a sponsoring broker and a client under Section  15-50
34    of this Act in which one or more licensees associated with or
 
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 1    employed by the broker are designated as agent of the client.
 2        "Designated  agent" means a sponsored licensee named by a
 3    sponsoring broker as the legal agent of a client, as provided
 4    for in Section 15-50 of this Act.
 5        "Director"  means  the  Director  of  the   Real   Estate
 6    Division, OBRE.
 7        "Dual  agency"  means  an  agency relationship in which a
 8    licensee is  representing  both  buyer  and  seller  or  both
 9    landlord and tenant in the same transaction.  When the agency
10    relationship  is a designated agency, the question of whether
11    there is a dual agency shall  be  determined  by  the  agency
12    relationships  of the designated agent of the parties and not
13    of the sponsoring broker.
14        "Employee" or other derivative of  the  word  "employee",
15    when   used   to   refer   to,  describe,  or  delineate  the
16    relationship between a real estate broker and a  real  estate
17    salesperson,  another real estate broker, or a leasing agent,
18    shall be  construed  to  include  an  independent  contractor
19    relationship,  provided  that a written agreement exists that
20    clearly  establishes  and  states  the   relationship.    All
21    responsibilities of a broker shall remain.
22        "Escrow moneys" means all moneys, promissory notes or any
23    other   type   or   manner   of  legal  tender  or  financial
24    consideration deposited with any person for  the  benefit  of
25    the parties to the transaction.  A transaction exists once an
26    agreement  has  been  reached  and  an  accepted  real estate
27    contract signed or lease agreed to by  the  parties.   Escrow
28    moneys   includes   without  limitation  earnest  moneys  and
29    security deposits, except those security  deposits  in  which
30    the  person  holding  the  security  deposit is also the sole
31    owner of the property being leased and for which the security
32    deposit is being held.
33        "Inoperative" means  a  status  of  licensure  where  the
34    licensee  holds  a  current  license  under this Act, but the
 
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 1    licensee is prohibited from engaging in  licensed  activities
 2    because  the  licensee  is  unsponsored or the license of the
 3    sponsoring broker with whom the licensee is associated or  by
 4    whom  he  or  she  is employed is currently expired, revoked,
 5    suspended, or otherwise rendered invalid under this Act.
 6        "Leasing Agent" means a person who is employed by a  real
 7    estate  broker  to  engage  in licensed activities limited to
 8    leasing residential real estate who has obtained a license as
 9    provided for in Section 5-5 of this Act.
10        "License" means the document issued  by  OBRE  certifying
11    that  the person named thereon has fulfilled all requirements
12    prerequisite to licensure under this Act.
13        "Licensed activities" means those  activities  listed  in
14    the definition of "broker" under this Section.
15        "Licensee"  means any person, as defined in this Section,
16    who holds a valid unexpired license as a real estate  broker,
17    real estate salesperson, or leasing agent.
18        "Listing  presentation"  means  a communication between a
19    real estate broker or salesperson and a consumer in which the
20    licensee is attempting to secure a brokerage  agreement  with
21    the consumer to market the consumer's real estate for sale or
22    lease.
23        "Managing  broker"  means  a  broker  who has supervisory
24    responsibilities for licensees in one or, in the  case  of  a
25    multi-office  company,  more than one office and who has been
26    appointed as such by the sponsoring broker of the real estate
27    firm.
28        "Medium of advertising" means any method of communication
29    intended to influence the general public to use or purchase a
30    particular good or service or real estate.
31        "Ministerial acts" means those acts that a  licensee  may
32    perform  for  a  consumer that are informative or clerical in
33    nature and do not rise to the level of active  representation
34    on  behalf  of  a  consumer.   Examples of these acts include
 
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 1    without limitation  (i)  responding  to  phone  inquiries  by
 2    consumers  as  to  the  availability and pricing of brokerage
 3    services, (ii) responding to phone inquiries from a  consumer
 4    concerning the price or location of property, (iii) attending
 5    an  open house and responding to questions about the property
 6    from  a  consumer,  (iv)  setting  an  appointment  to   view
 7    property,  (v)  responding  to questions of consumers walking
 8    into  a  licensee's  office  concerning  brokerage   services
 9    offered   or  particular  properties,  (vi)  accompanying  an
10    appraiser, inspector, contractor, or similar third party on a
11    visit to a property,  (vii)  describing  a  property  or  the
12    property's  condition  in  response  to a consumer's inquiry,
13    (viii) completing  business  or  factual  information  for  a
14    consumer  on  an offer or contract to purchase on behalf of a
15    client, (ix) showing a client through a property  being  sold
16    by  an  owner  on  his  or her own behalf, or (x) referral to
17    another broker or service provider.
18        "OBRE" means the Office of Banks and Real Estate.
19        "Office" means a real estate broker's place  of  business
20    where  the general public is invited to transact business and
21    where records  may  be  maintained  and  licenses  displayed,
22    whether  or  not  it  is  the  broker's  principal  place  of
23    business.
24        "Person"   means   and  includes  individuals,  entities,
25    corporations, limited liability companies, registered limited
26    liability  partnerships,   and   partnerships,   foreign   or
27    domestic,  except  that  when the context otherwise requires,
28    the term may refer to a single individual or other  described
29    entity.
30        "Personal  assistant"  means  a  licensed  or  unlicensed
31    person  who  has  been  hired  for  the  purpose of aiding or
32    assisting a sponsored licensee  in  the  performance  of  the
33    sponsored licensee's job.
34        "Pocket  card"  means  the card issued by OBRE to signify
 
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 1    that the person named on the card is currently licensed under
 2    this Act.
 3        "Pre-license school" means  a  school  licensed  by  OBRE
 4    offering   courses   in   subjects  related  to  real  estate
 5    transactions, including the subjects upon which an  applicant
 6    is examined in determining fitness to receive a license.
 7        "Pre-renewal period" means the period between the date of
 8    issue  of  a  currently    valid  license  and  the license's
 9    expiration date.
10        "Real estate" means and includes leaseholds  as  well  as
11    any  other  interest  or  estate  in land, whether corporeal,
12    incorporeal, freehold, or non-freehold and whether  the  real
13    estate is situated in this State or elsewhere.
14          "Real  Estate Administration and Disciplinary Board" or
15    "Board" means the Real Estate Administration and Disciplinary
16    Board created by Section 25-10 of this Act.
17        "Salesperson" means any individual,  other  than  a  real
18    estate  broker  or  leasing  agent, who is employed by a real
19    estate broker or is associated by written  agreement  with  a
20    real   estate   broker   as  an  independent  contractor  and
21    participates in any activity described in the  definition  of
22    "broker" under this Section.
23        "Sponsoring  broker"  means  the  broker who has issued a
24    sponsor card to  a  licensed  salesperson,  another  licensed
25    broker, or a leasing agent.
26        "Sponsor  card"  means the temporary permit issued by the
27    sponsoring real estate broker certifying that the real estate
28    broker, real  estate  salesperson,  or  leasing  agent  named
29    thereon  is  employed  by  or associated by written agreement
30    with the sponsoring real estate broker, as  provided  for  in
31    Section 5-40 of this Act.

32                 ARTICLE 5. LICENSING AND EDUCATION
 
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 1        Section 5-5.  Leasing agent license.
 2        (a)  The  purpose  of  this  Section  is to provide for a
 3    limited scope license to enable persons who wish to engage in
 4    activities  limited  to  the  leasing  of  residential   real
 5    property  for which a license is required under this Act, and
 6    only those activities, to do  so  by  obtaining  the  license
 7    provided for under this Section.
 8        (b)  Notwithstanding  the  other  provisions of this Act,
 9    there is hereby created a leasing agent  license  that  shall
10    enable  the  licensee  to  engage only in residential leasing
11    activities for which a license is required  under  this  Act.
12    Such activities include without limitation leasing or renting
13    residential   real  property,  or  attempting,  offering,  or
14    negotiating to lease or rent residential  real  property,  or
15    supervising  the  collection, offer, attempt, or agreement to
16    collect rent  for  the  use  of  residential  real  property.
17    Nothing  in  this  Section  shall  be  construed to require a
18    licensed real  estate  broker  or  salesperson  to  obtain  a
19    leasing  agent license in order to perform leasing activities
20    for which a license is  required  under  this  Act.  Licensed
21    leasing agents must be sponsored and employed by a sponsoring
22    broker.
23        (c)  OBRE,  by  rule, with the advice of the Board, shall
24    provide for the licensing of leasing  agents,  including  the
25    issuance, renewal, and administration of licenses.
26        (d)  Notwithstanding  any other provisions of this Act to
27    the contrary, a person  may  engage  in  residential  leasing
28    activities  for  which  a license is required under this Act,
29    for a period of 120 consecutive days without being  licensed,
30    so  long  as  the person is acting under the supervision of a
31    licensed real estate broker and the broker has notified  OBRE
32    that  the  person  is  pursuing licensure under this Section.
33    During the 120 day period all requirements of  Sections  5-10
34    and  5-65  of  this Act with respect to education, successful
 
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 1    completion of an examination, and the payment of all required
 2    fees must be satisfied.  OBRE may adopt rules to ensure  that
 3    the  provisions  of this subsection are not  used in a manner
 4    that  enables  an  unlicensed   person   to   repeatedly   or
 5    continually  engage  in  activities  for  which  a license is
 6    required under this Act.

 7        Section 5-10.  Application  for  leasing  agent  license.
 8    Every  person  who  desires to obtain a leasing agent license
 9    shall apply to OBRE in writing on forms provided by OBRE.  In
10    addition to any other information required to be contained in
11    the application, every application for an original or renewed
12    leasing agent license shall include  the  applicant's  Social
13    Security  number.   All  application  or  license  fees  must
14    accompany  the  application.  Each applicant must be at least
15    18 years of age, must be of good moral character, shall  have
16    successfully  completed  a  4-year  course of study in a high
17    school or secondary school or an equivalent course  of  study
18    approved  by the Illinois State Board of Education, and shall
19    successfully complete a  written  examination  authorized  by
20    OBRE  sufficient  to demonstrate the applicant's knowledge of
21    the provisions of this Act relating to leasing agents and the
22    applicant's competence to  engage  in  the  activities  of  a
23    licensed   leasing   agent.    Applicants  must  successfully
24    complete 15 hours of instruction in  an  approved  course  of
25    study  relating  to the leasing of residential real property.
26    The course of study shall,  among  other  topics,  cover  the
27    provisions  of  this  Act  applicable to leasing agents; fair
28    housing issues relating to residential  leasing;  advertising
29    and   marketing  issues;  leases,  applications,  and  credit
30    reports; owner-tenant relationships  and  owner-tenant  laws;
31    the  handling  of funds; and environmental issues relating to
32    residential  real  property.  Successfully  completed  course
33    work, completed pursuant to the requirements of this Section,
 
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 1    may be applied to the course work requirements  to  obtain  a
 2    real estate broker's  or salesperson's license as provided by
 3    rule.  The Advisory Council shall recommend through the Board
 4    to  OBRE  and  OBRE  shall  adopt  requirements  for approved
 5    courses,  course  content,  and  the  approval  of   courses,
 6    instructors,  and  schools,  as well as school and instructor
 7    fees.  OBRE may establish continuing  education  requirements
 8    for  licensed leasing agents, by rule, with the advice of the
 9    Advisory Council and Board.

10        Section  5-15.   Necessity  of  broker,  salesperson,  or
11    leasing   agent   license   or   sponsor   card;    ownership
12    restrictions.
13        (a)  It  is unlawful for any person, corporation, limited
14    liability company, registered limited liability  partnership,
15    or  partnership  to  act as a real estate broker, real estate
16    salesperson, or leasing agent or to advertise  or  assume  to
17    act  as  such broker, salesperson, or leasing agent without a
18    properly issued sponsor card or a license issued  under  this
19    Act  by  OBRE,  either  directly  or  through  its authorized
20    designee.
21        (b)  No corporation shall be granted a license or  engage
22    in  the  business or capacity, either directly or indirectly,
23    of  a  real  estate  broker,  unless  every  officer  of  the
24    corporation who actively  participates  in  the  real  estate
25    activities  of  the  corporation  holds  a  license as a real
26    estate broker  and  unless  every  employee  who  acts  as  a
27    salesperson,  or  leasing  agent  for the corporation holds a
28    license as a real  estate  broker,  salesperson,  or  leasing
29    agent.
30        (c)  No  partnership shall be granted a license or engage
31    in the business or serve in the capacity, either directly  or
32    indirectly,  of  a  real  estate broker, unless every general
33    partner in the partnership holds a license as a  real  estate
 
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 1    broker and unless every employee who acts as a salesperson or
 2    leasing  agent  for the partnership holds a license as a real
 3    estate broker, salesperson, or leasing agent.  In the case of
 4    a  registered  limited  liability  partnership  (LLP),  every
 5    partner in the LLP must hold  a  license  as  a  real  estate
 6    broker  and  every  employee  who  acts  as  a salesperson or
 7    leasing agent must hold a license as a  real  estate  broker,
 8    salesperson, or leasing agent.
 9        (d)  No  limited  liability  company  shall  be granted a
10    license or engage in the business or serve in  the  capacity,
11    either directly or indirectly, of a real estate broker unless
12    every  manager  in  the  limited  liability  company  holds a
13    license as a real estate broker and unless every  member  and
14    employee  who  acts as a salesperson or leasing agent for the
15    limited liability company holds a license as  a  real  estate
16    broker, salesperson, or leasing agent.
17        (e)  No   partnership,   limited  liability  company,  or
18    corporation shall be licensed to conduct a brokerage business
19    where an individual salesperson or leasing agent, or group of
20    salespersons  or  leasing  agents,  owns   or   directly   or
21    indirectly  controls  more than 49% of the shares of stock or
22    other  ownership  in  the  partnership,   limited   liability
23    company, or corporation.

24        Section  5-20.   Exemptions  from broker, salesperson, or
25    leasing  agent  license  requirement.  The  requirement   for
26    holding a license under this Article 5 shall not apply to:
27        (1)  Any  person,  partnership,  or  corporation  that as
28    owner or lessor performs any of the  acts  described  in  the
29    definition  of  "broker"  under Section 1-10 of this Act with
30    reference to property owned  or  leased  by  it,  or  to  the
31    regular  employees  thereof  with  respect to the property so
32    owned or leased, where such acts are performed in the regular
33    course of or as an incident to the management, sale, or other
 
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 1    disposition of such  property  and  the  investment  therein,
 2    provided  that  such  regular employees do not perform any of
 3    the acts  described  in  the  definition  of  "broker"  under
 4    Section  1-10  of  this  Act in connection with a vocation of
 5    selling or  leasing  any  real  estate  or  the  improvements
 6    thereon not so owned or leased.
 7        (2)  An attorney in fact acting under a duly executed and
 8    recorded  power  of  attorney  to convey real estate from the
 9    owner or lessor or the services rendered by  an  attorney  at
10    law  in the performance of the attorney's duty as an attorney
11    at law.
12        (3)  Any  person   acting   as   receiver,   trustee   in
13    bankruptcy,  administrator,  executor,  or  guardian or while
14    acting under a court order or under the authority of  a  will
15    or testamentary trust.
16        (4)  Any  person  acting  as  a  resident manager for the
17    owner or any employee acting as the resident  manager  for  a
18    broker  managing  an apartment building, duplex, or apartment
19    complex, when the resident manager resides on  the  premises,
20    the  premises  is  his  or  her  primary  residence,  and the
21    resident manager is engaged in the leasing of the property of
22    which he or she is the resident manager.
23        (5)  Any officer or employee of a federal agency  in  the
24    conduct of official duties.
25        (6)  Any  officer  or employee of the State government or
26    any political subdivision thereof performing official duties.
27        (7)  Any multiple listing service  or  other  information
28    exchange  that is engaged in the collection and dissemination
29    of information concerning real  estate  available  for  sale,
30    purchase,  lease,  or  exchange  along  with  which  no other
31    licensed activities are provided.
32        (8)  Railroads and other public  utilities  regulated  by
33    the State of Illinois, or the officers or full time employees
34    thereof, unless the performance of any licensed activities is
 
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 1    in  connection  with  the  sale,  purchase,  lease,  or other
 2    disposition of real estate or investment therein not  needing
 3    the approval of the appropriate State regulatory authority.
 4        (9)  Any  medium  of advertising in the routine course of
 5    selling or publishing advertising along with which  no  other
 6    licensed activities are provided.
 7        (10)  Any  resident lessee of a residential dwelling unit
 8    who refers for compensation to  the  owner  of  the  dwelling
 9    unit,  or  to  the  owner's  agent,  prospective  lessees  of
10    dwelling  units  in  the  same  building  or  complex  as the
11    resident lessee's unit, but only if the resident  lessee  (i)
12    refers  no  more  than  3 prospective lessees in any 12-month
13    period, (ii) receives compensation of no more than $1,000  or
14    the equivalent of one month's rent, whichever is less, in any
15    12-month  period,  and  (iii) limits his or her activities to
16    referring prospective lessees to the owner,  or  the  owner's
17    agent,  and  does  not  show a residential dwelling unit to a
18    prospective lessee, discuss terms or conditions of leasing  a
19    dwelling   unit  with  a  prospective  lessee,  or  otherwise
20    participate in the negotiation of the leasing of  a  dwelling
21    unit.

22        Section  5-25.  Application for and issuance of broker or
23    salesperson license.
24        (a)  Every person who desires to obtain a  license  shall
25    make  application  to OBRE in writing upon forms prepared and
26    furnished by OBRE.  In  addition  to  any  other  information
27    required   to   be   contained   in  the  application,  every
28    application for an original or renewed license shall  include
29    the applicant's Social Security number.  Each applicant shall
30    be  at least 21 years of age, be of good moral character, and
31    have successfully completed a 4-year course  of  study  in  a
32    high  school  or  secondary  school  approved by the Illinois
33    State Board of Education or an equivalent course of study  as
 
HB0902 Engrossed            -15-              LRB9104235LDmbA
 1    determined  by an examination conducted by the Illinois State
 2    Board of Education and shall be verified under  oath  by  the
 3    applicant.   The  minimum age of 21 years shall be waived for
 4    any person seeking a license as a real estate salesperson who
 5    has attained the age of 18 and can provide  evidence  of  the
 6    successful   completion   of   at   least   4   semesters  of
 7    post-secondary school study as a  full-time  student  or  the
 8    equivalent,  with major emphasis on real estate courses, in a
 9    school approved by OBRE.
10        (b)  When an applicant has had his or her license revoked
11    on a prior occasion or when an applicant  is  found  to  have
12    committed any of the practices enumerated in Section 20-20 of
13    this  Act or when an applicant has been convicted of forgery,
14    embezzlement, obtaining money under false pretenses, larceny,
15    extortion,  conspiracy  to  defraud,  or  any  other  similar
16    offense or  offenses  or  has  been  convicted  of  a  felony
17    involving   moral   turpitude   in  any  court  of  competent
18    jurisdiction  in  this  or  any  other  state,  district,  or
19    territory of the United States or of a foreign  country,  the
20    Board   may   consider  the  prior  revocation,  conduct,  or
21    conviction in its  determination  of  the  applicant's  moral
22    character  and  whether to grant the applicant a license.  In
23    its  consideration  of  the  prior  revocation,  conduct,  or
24    conviction, the Board shall take into account the  nature  of
25    the  conduct,  any  aggravating or extenuating circumstances,
26    the  time  elapsed  since   the   revocation,   conduct,   or
27    conviction,  the  rehabilitation  or restitution performed by
28    the applicant, and any other factors  that  the  Board  deems
29    relevant.    When  an applicant has made a false statement of
30    material fact on his or her application, the false  statement
31    may  in  itself  be sufficient grounds to revoke or refuse to
32    issue a license.
33        (c)  Every valid application for issuance of  an  initial
34    license  shall  be accompanied by a sponsor card and the fees
 
HB0902 Engrossed            -16-              LRB9104235LDmbA
 1    specified by rule.
 2        (d)  No applicant shall engage in any of  the  activities
 3    covered  by  this  Act  until  a  valid sponsor card has been
 4    issued to such applicant.  The sponsor card  shall  be  valid
 5    for  a  maximum  period  of 45 days from the date of issuance
 6    unless extended for good cause as provided by rule.
 7        (e)  OBRE shall issue to each applicant entitled  thereto
 8    a  license  in  such  form and size as shall be prescribed by
 9    OBRE.  The procedure  for  terminating  a  license  shall  be
10    printed  on  the  reverse  side of the license.  Each license
11    shall bear the name of the person so qualified, shall specify
12    whether the person  is  qualified  to  act  in  a  broker  or
13    salesperson   capacity,   and   shall   contain   such  other
14    information as shall be recommended by the Board and approved
15    by OBRE.  Each person licensed under this Act  shall  display
16    his  or  her  license  conspicuously  in  his or her place of
17    business.

18        Section  5-30.  Education  requirements  to   obtain   an
19    original broker or salesperson license.
20        (a)  All   applicants  for  a  broker's  license,  except
21    applicants who meet the criteria set forth in subsection  (c)
22    of  this  Section  shall   (i)  give satisfactory evidence of
23    having completed at least 120 classroom hours,  45  of  which
24    shall  be  those  hours  required  to  obtain a salesperson's
25    license plus 15 hours in brokerage administration courses, in
26    real estate courses approved by the Advisory Council or  (ii)
27    for  applicants  who  currently  hold  a  valid  real  estate
28    salesperson's  license,  give satisfactory evidence of having
29    completed at least 75  hours  in  real  estate  courses,  not
30    including   the   courses  that  are  required  to  obtain  a
31    salesperson's license, approved by the Advisory Council.
32        (b)  All applicants for a salesperson's  license,  except
33    applicants  who meet the criteria set forth in subsection (c)
 
HB0902 Engrossed            -17-              LRB9104235LDmbA
 1    of this Section shall give satisfactory  evidence  that  they
 2    have  completed  at  least  45  hours  of instruction in real
 3    estate courses approved by the Advisory Council.
 4        (c)  The requirements specified in  subsections  (a)  and
 5    (b) of this Section do not apply to applicants who:
 6             (1)  are  currently  admitted to practice law by the
 7        Supreme Court of Illinois and  are  currently  in  active
 8        standing; or
 9             (2)  show  evidence  of  receiving  a  baccalaureate
10        degree including courses involving real estate or related
11        material  from  a  college  or university approved by the
12        Advisory Council.
13        (d)  A minimum of 15 of the required hours of pre-license
14    education shall be in the areas of Article 15  of  this  Act,
15    disclosure  and  environmental issues, or any other currently
16    topical areas that are determined by the Advisory Council.

17        Section 5-35.  Examination; broker or salesperson.
18        (a)  Every person who makes application for  an  original
19    license  as a broker or salesperson shall personally take and
20    pass a written examination authorized by OBRE and answer  any
21    questions  that  may  be required to determine the good moral
22    character of the applicant and the applicant's competency  to
23    transact  the  business of broker or salesperson, as the case
24    may be, in such a manner as to safeguard the interests of the
25    public.  In determining this competency, OBRE  shall  require
26    proof  that  the  applicant  has a good understanding and the
27    knowledge  to  conduct  real  estate  brokerage  and  of  the
28    provisions of this Act.  The examination shall be prepared by
29    an independent testing service designated by OBRE, subject to
30    the  approval  of  the  examinations  by  the   Board.    The
31    designated  independent  testing  service  shall  conduct the
32    examinations at such times and places as OBRE shall  approve.
33    In  addition,  every  person  who desires to take the written
 
HB0902 Engrossed            -18-              LRB9104235LDmbA
 1    examination shall make application to do so to OBRE or to the
 2    designated independent testing service in writing upon  forms
 3    approved by OBRE.  An applicant shall be eligible to take the
 4    examination  only after successfully completing the education
 5    requirements, set forth in Section  5-30  of  this  Act,  and
 6    attaining  the  minimum  age  specified  in  this  Act.  Each
 7    applicant shall be required to establish compliance with  the
 8    eligibility  requirements in the manner provided by the rules
 9    promulgated for the administration of this Act.
10        (b)  If a person who has received a passing score on  the
11    written  examination  described in this Section fails to file
12    an application and meet all requirements for a license  under
13    this  Act  within one year after receiving a passing score on
14    the examination, credit for the examination shall  terminate.
15    The   person  thereafter  may  make  a  new  application  for
16    examination.
17        (c)  If an applicant has failed an examination  3  times,
18    the  applicant must repeat the pre-license education required
19    to sit  for  the  examination.   For  the  purposes  of  this
20    Section,  the  fourth attempt shall be the same as the first.
21    Approved education, as prescribed by this Act  for  licensure
22    as  a salesperson or broker, shall be valid for 3 years after
23    the date of satisfactory completion of the education.

24        Section 5-40.  Sponsor  card;  termination  indicated  by
25    license endorsement; association with new broker.
26        (a)  The  sponsoring  broker  shall  prepare  upon  forms
27    provided  by OBRE and deliver to each licensee employed by or
28    associated  with  the  sponsoring  broker  a   sponsor   card
29    certifying  that  the person whose name appears thereon is in
30    fact employed by or associated with  the  sponsoring  broker.
31    The  sponsoring  broker shall send, by certified mail, return
32    receipt requested, or  other  delivery  service  requiring  a
33    signature  upon  delivery,  a duplicate of each sponsor card,
 
HB0902 Engrossed            -19-              LRB9104235LDmbA
 1    along with a valid license or other authorization as provided
 2    by rule and the appropriate fee, to OBRE within 24  hours  of
 3    issuance  of the sponsor card.  It is a violation of this Act
 4    for any broker to issue a sponsor card  to  any  licensee  or
 5    applicant unless the licensee or applicant presents in hand a
 6    valid license or other authorization as provided by rule.
 7        (b)  When  a licensee terminates his or her employment or
 8    association with a sponsoring broker  or  the  employment  is
 9    terminated  by  the  sponsoring  broker,  the  licensee shall
10    obtain from the sponsoring broker his or her license endorsed
11    by the sponsoring broker  indicating  the  termination.   The
12    sponsoring  broker  shall  surrender  to  OBRE  a copy of the
13    license of the licensee within 2 days of the  termination  or
14    shall  notify  OBRE in writing of the termination and explain
15    why a copy of the license is not surrendered.  Failure of the
16    sponsoring broker to surrender the license shall subject  the
17    sponsoring  broker  to discipline under Section 20-20 of this
18    Act.  The license of any licensee whose  association  with  a
19    sponsoring  broker  is  terminated shall automatically become
20    inoperative  immediately  upon  the  termination  unless  the
21    licensee accepts employment or becomes associated with a  new
22    sponsoring broker pursuant to subsection (c) of this Section.
23        (c)  When  a  licensee  accepts employment or association
24    with a new sponsoring broker, the new sponsoring broker shall
25    send, by certified mail, return receipt requested,  or  other
26    delivery service requiring a signature upon delivery, to OBRE
27    a  duplicate sponsor card, along with the licensee's endorsed
28    license or an affidavit of the licensee of why  the  endorsed
29    license is not surrendered, and shall pay the appropriate fee
30    prescribed by rule to cover administrative expenses attendant
31    to the changes in the registration of the licensee.

32        Section 5-45.  Offices.
33        (a)  If  a  sponsoring  broker  maintains  more  than one
 
HB0902 Engrossed            -20-              LRB9104235LDmbA
 1    office within the State, the sponsoring  broker  shall  apply
 2    for  a  branch  office license for each office other than the
 3    sponsoring broker's principal place of business.  The  branch
 4    office  license  shall  be  displayed  conspicuously  in each
 5    branch office.  The name of each branch office shall  be  the
 6    same  as  that of the sponsoring broker's principal office or
 7    shall clearly delineate the branch office's relationship with
 8    the principal office.
 9        (b)  The sponsoring broker shall name a  managing  broker
10    for  each  branch  office  and the sponsoring broker shall be
11    responsible  for  supervising  all  managing  brokers.    The
12    sponsoring broker shall notify OBRE in writing of the name of
13    all managing brokers of the sponsoring broker.   Any  changes
14    in  managing  brokers  shall  be  reported to OBRE in writing
15    within 15 days of the change.  Failure to do so shall subject
16    the sponsoring broker to discipline under  Section  20-20  of
17    this Act.
18        (c)  The  sponsoring broker shall immediately notify OBRE
19    in writing of any opening, closing, or change in location  of
20    any principal or branch office.
21        (d)  Except  as provided in this Section, each sponsoring
22    broker shall maintain a definite office, or place of business
23    within  this  State  for  the  transaction  of  real   estate
24    business,  shall conspicuously display an identification sign
25    on the outside of his or her  office  of  adequate  size  and
26    visibility,  and  shall  conspicuously  display  his  or  her
27    license  in  his  or her office or place of business and also
28    the licenses of all persons associated with  or  employed  by
29    the  sponsoring  broker  who primarily work at that location.
30    The office or place of business shall not be located  in  any
31    retail  or  financial  business  establishment  unless  it is
32    separated from the other business by a separate and  distinct
33    area  within  the establishment.  A broker who is licensed in
34    this State by examination or pursuant to  the  provisions  of
 
HB0902 Engrossed            -21-              LRB9104235LDmbA
 1    Section  5-60 of this Act shall not be required to maintain a
 2    definite office or place of business in this  State  provided
 3    all of the following conditions are met:
 4             (1)  the broker maintains an active broker's license
 5        in the broker's state of domicile;
 6             (2)  the  broker maintains an office in the broker's
 7        state of domicile; and
 8             (3)  the  broker  has  filed   with   OBRE   written
 9        statements  appointing  the  Commissioner  to  act as the
10        broker's agent upon whom all judicial and  other  process
11        or  legal  notices directed to the licensee may be served
12        and agreeing to abide by all of the  provisions  of  this
13        Act  with  respect  to  his or her real estate activities
14        within the  State  of  Illinois  and  submitting  to  the
15        jurisdiction of OBRE.
16        The  statements  under  subdivision  (3)  of this Section
17    shall be in form and substance the same as  those  statements
18    required  under Section 5-60 of this Act and shall operate to
19    the same extent.
20        (e)  Upon the loss  of  a  managing  broker  who  is  not
21    replaced  by  the  sponsoring  broker  or in the event of the
22    death or adjudicated disability of the sole proprietor of  an
23    office,  a  written  request  for  authorization allowing the
24    continued operation of the office may be  submitted  to  OBRE
25    within  15  days  of  the  loss.   OBRE  may  issue a written
26    authorization allowing the continued operation, provided that
27    a licensed broker, or in the case of the death or adjudicated
28    disability of a sole proprietor, the  representative  of  the
29    estate, assumes responsibility, in writing, for the operation
30    of   the  office  and  agrees  to  personally  supervise  the
31    operation of the office.  No such written authorization shall
32    be valid for more than 60 days unless extended  by  OBRE  for
33    good  cause  shown  and upon written request by the broker or
34    representative.
 
HB0902 Engrossed            -22-              LRB9104235LDmbA
 1        Section 5-50.  Expiration  date  and  renewal  period  of
 2    broker,  salesperson,  or  leasing  agent license; sponsoring
 3    broker; register of licensees; pocket card.
 4        (a)  The expiration date  and  renewal  period  for  each
 5    license  issued  under this Act shall be set by rule.  Except
 6    as otherwise provided in Section 5-55 of this Act, the holder
 7    of a license may renew the license within 90  days  preceding
 8    the  expiration  date thereof by paying the fees specified by
 9    rule.   Upon written request from the sponsoring broker, OBRE
10    shall prepare and mail to the sponsoring broker a listing  of
11    licensees  under  this  Act  who, according to the records of
12    OBRE,  are  sponsored  by  that   broker.    Every   licensee
13    associated  with  or  employed  by  a broker whose license is
14    revoked,  suspended,  terminated,   or   expired   shall   be
15    considered  as  inoperative until such time as the sponsoring
16    broker's license is reinstated or renewed,  or  the  licensee
17    changes  employment as set forth in subsection (c) of Section
18    5-40 of this Act.
19        (b)  OBRE shall establish and maintain a register of  all
20    persons  currently  licensed by the State and shall issue and
21    prescribe a form of pocket card.  Upon payment by a  licensee
22    of  the  appropriate fee as prescribed by rule for engagement
23    in the activity for which the licensee is qualified and holds
24    a license for the current period, OBRE shall issue  a  pocket
25    card  to the licensee.  The pocket card shall be verification
26    that the required fee for the current period  has  been  paid
27    and  shall indicate that the person named thereon is licensed
28    for the current renewal period as a broker,  salesperson,  or
29    leasing  agent  as  the  case  may be.  The pocket card shall
30    further indicate that the person named thereon is  authorized
31    by  OBRE  to  engage in the licensed activity appropriate for
32    his or her status (broker, salesperson,  or  leasing  agent).
33    Each  licensee  shall  carry  on his or her person his or her
34    pocket card or, if such pocket card has not yet been  issued,
 
HB0902 Engrossed            -23-              LRB9104235LDmbA
 1    a  properly issued sponsor card when engaging in any licensed
 2    activity and shall display the same on demand.

 3        Section  5-55.   Expiration  and  renewal  of  broker  or
 4    salesperson license.
 5        (a)  Any broker or salesperson whose license  under  this
 6    Act  has expired shall be eligible to renew the license for a
 7    period of 2 years following the expiration date, provided the
 8    broker or salesperson pays the fees as prescribed by rule.  A
 9    broker or salesperson whose license has been expired for more
10    than 2 years shall be required to meet the requirements for a
11    new license.
12        (b)  Notwithstanding any other provisions of this Act  to
13    the  contrary,  any broker or salesperson whose license under
14    this Act has expired is eligible to renew the license without
15    paying any lapsed renewal fees or reinstatement fee, provided
16    that the license expired while the broker or salesperson was:
17             (1)  on active duty with  the  United  States  Army,
18        United  States  Navy,  United States Marine Corps, United
19        States Air Force, United States Coast Guard, or the State
20        Militia called into the service or training of the United
21        States;
22             (2)  engaged in  training  or  education  under  the
23        supervision  of the United States prior to induction into
24        military service; or
25             (3)  serving as the Director of Real Estate  in  the
26        State of Illinois or as an employee of OBRE.
27        A  broker  or  salesperson  shall  be eligible to renew a
28    license under the provisions of this Section for a period  of
29    2  years following the termination of the service, education,
30    or training, provided that the termination was by other  than
31    dishonorable   discharge   and  provided  that  the  licensee
32    furnishes OBRE an affidavit specifying  that  the  broker  or
33    salesperson  has  been  so  engaged  and  that  the  service,
 
HB0902 Engrossed            -24-              LRB9104235LDmbA
 1    education, or training has been so terminated.

 2        Section   5-60.    Broker   licensed  in  another  state;
 3    nonresident salesperson;  reciprocal  agreements;  agent  for
 4    service of process.
 5        (a)  A broker's license may be issued by OBRE to a broker
 6    licensed  under  the  laws  of  another  state  of the United
 7    States, under the following conditions:
 8             (1)  the broker holds a broker's license in  his  or
 9        her state of domicile;
10             (2)  the standards for that state for licensing as a
11        broker  are  substantially  equivalent to or greater than
12        the minimum standards in the State of Illinois;
13             (3)  the broker has been actively  practicing  as  a
14        broker  in the broker's state of domicile for a period of
15        not less than 2 years, immediately prior to the  date  of
16        application;
17             (4)  the  broker  furnishes  OBRE  with  a statement
18        under seal of the proper licensing authority of the state
19        in which the broker is licensed showing that  the  broker
20        has  an  active  broker's  license, that the broker is in
21        good standing, and that no complaints are pending against
22        the broker in that state; and
23             (5)  the broker completes a course of education  and
24        passes  a test on Illinois specific real estate brokerage
25        laws.
26        (b)  A nonresident salesperson employed by or  associated
27    with  a nonresident broker holding a broker's license in this
28    State pursuant to this Section  may,  in  the  discretion  of
29    OBRE, be issued a nonresident salesperson's license under the
30    nonresident  broker  provided all of the following conditions
31    are met:
32             (1)  the salesperson maintains an active license  in
33        the state in which he or she is domiciled;
 
HB0902 Engrossed            -25-              LRB9104235LDmbA
 1             (2)  the  salesperson is domiciled in the same state
 2        as the broker with whom he or she is associated; and
 3             (3)  the salesperson completes a course of education
 4        and passes  a  test  on  Illinois  specific  real  estate
 5        brokerage laws.
 6        The  nonresident  broker  with  whom  the  salesperson is
 7    associated shall comply with the provisions of this  Act  and
 8    issue  the  salesperson a sponsor card upon the form provided
 9    by OBRE.
10        (c)  As a  condition  precedent  to  the  issuance  of  a
11    license to a nonresident broker or salesperson, the broker or
12    salesperson  shall  agree  in  writing  to  abide  by all the
13    provisions of this Act with respect to his or her real estate
14    activities within the State of Illinois  and  submit  to  the
15    jurisdiction  of OBRE as provided in this Act.  The agreement
16    shall be filed with OBRE and shall remain  in  force  for  so
17    long  as the nonresident broker or salesperson is licensed by
18    this State and thereafter with respect to acts  or  omissions
19    committed  while  licensed as a broker or salesperson in this
20    State.
21        (d)  Prior  to  the  issuance  of  any  license  to   any
22    nonresident,  verification of active licensure issued for the
23    conduct of such business in any other  state  must  be  filed
24    with  OBRE by the nonresident, and the same fees must be paid
25    as provided in this Act for the obtaining of  a  broker's  or
26    salesperson's license in this State.
27        (e)  Licenses   previously   granted   under   reciprocal
28    agreements  shall remain in force, unless suspended, revoked,
29    or terminated by OBRE for any reason provided for suspension,
30    revocation, or termination of a resident licensee's  license.
31    Licenses  granted  under reciprocal agreements may be renewed
32    in the same manner as a resident's license.
33        (f)  Prior to the issuance of a license to a  nonresident
34    broker  or  salesperson, the broker or salesperson shall file
 
HB0902 Engrossed            -26-              LRB9104235LDmbA
 1    with  OBRE  a  designation  in  writing  that  appoints   the
 2    Commissioner  to  act  as  his  or  her  agent  upon whom all
 3    judicial and other process or legal notices directed  to  the
 4    broker  or salesperson may be served.  Service upon the agent
 5    so designated shall be equivalent to  personal  service  upon
 6    the  licensee.   Copies  of the appointment, certified by the
 7    Commissioner, shall be deemed sufficient evidence thereof and
 8    shall be admitted in evidence with the same force and  effect
 9    as  the  original  thereof might be admitted.  In the written
10    designation, the broker or salesperson shall agree  that  any
11    lawful  process  against the licensee that is served upon the
12    agent shall be of the same legal force  and  validity  as  if
13    served  upon  the  licensee  and  that  the  authority  shall
14    continue   in   force   so  long  as  any  liability  remains
15    outstanding in this State.  Upon the receipt of  any  process
16    or  notice,  the  Commissioner shall forthwith mail a copy of
17    the same by certified mail to the last known business address
18    of the licensee.
19        (g)  Any  person  holding  a  valid  license  under  this
20    Section shall be eligible to obtain a  resident  broker's  or
21    salesperson's  license without examination should that person
22    change their state of domicile to Illinois  and  that  person
23    otherwise  meets  the  qualifications or licensure under this
24    Act.

25        Section 5-65. Fees. OBRE shall provide by rule  for  fees
26    to   be  paid  by  applicants  and  licensees  to  cover  the
27    reasonable costs of OBRE in administering and  enforcing  the
28    provisions  of  this  Act.  OBRE may also provide by rule for
29    general fees to cover the reasonable expenses of carrying out
30    other functions and responsibilities under this Act.

31        Section 5-70.  Continuing education  requirement;  broker
32    or salesperson.
 
HB0902 Engrossed            -27-              LRB9104235LDmbA
 1        (a)  The  requirements  of  this  Section  apply  to  all
 2    licensees who have had a license for less than 15 years as of
 3    January 1, 1992.
 4        (b)  Except  as  otherwise provided in this Section, each
 5    person who applies for renewal of his or  her  license  as  a
 6    real   estate   broker   or   real  estate  salesperson  must
 7    successfully  complete  real  estate   continuing   education
 8    courses  approved  by  the  Advisory Council at the rate of 6
 9    hours per year or its equivalent.  No license may be  renewed
10    except upon the successful completion of the required courses
11    or  their  equivalent  or upon a waiver of those requirements
12    for good cause shown as determined by the  Commissioner  with
13    the  recommendation of the Advisory Council. The requirements
14    of  this  Article  are  applicable   to   all   brokers   and
15    salespersons  except  those  brokers  and  salespersons  who,
16    during the pre-renewal period:
17             (1)  serve  in  the  armed  services  of  the United
18        States;
19             (2)  serve as an elected State or federal official;
20             (3)  serve as a full-time employee of OBRE; or
21             (4)  are  admitted  to  practice  law  pursuant   to
22        Illinois Supreme Court rule.
23        (c)  A  person who is issued an initial license as a real
24    estate salesperson less than one year prior to the expiration
25    date of that  license  shall  not  be  required  to  complete
26    continuing  education  as  a condition of license renewal.  A
27    person who is issued an initial  license  as  a  real  estate
28    broker  less  than  one  year prior to the expiration date of
29    that license and who has not been licensed as a  real  estate
30    salesperson  during  the  pre-renewal  period  shall  not  be
31    required  to  complete continuing education as a condition of
32    license renewal.
33        (d)  The    continuing    education    requirement    for
34    salespersons and brokers shall consist of a  core  curriculum
 
HB0902 Engrossed            -28-              LRB9104235LDmbA
 1    and an elective curriculum, to be established by the Advisory
 2    Council.  In meeting the continuing education requirements of
 3    this Act, at least 3 hours per year or their equivalent shall
 4    be  required  to  be  completed  in  the  core curriculum. In
 5    establishing the core curriculum, the Advisory Council  shall
 6    consider  subjects  that  will  educate  licensees  on recent
 7    changes in applicable laws  and  new  laws  and  refresh  the
 8    licensee on areas of the license law and OBRE policy that the
 9    Advisory  Council deems appropriate, and any other areas that
10    the Advisory Council deems timely and applicable in order  to
11    prevent  violations of this Act and to protect the public. In
12    establishing the elective curriculum,  the  Advisory  Council
13    shall consider subjects that cover the various aspects of the
14    practice  of  real estate that are covered under the scope of
15    this Act.  However, the elective curriculum shall not include
16    any offerings referred to in Section 5-85 of this Act.
17        (e)  The subject areas of  continuing  education  courses
18    approved   by   the  Advisory  Council  may  include  without
19    limitation the following:
20             (1)  license law and escrow;
21             (2)  antitrust;
22             (3)  fair housing;
23             (4)  agency;
24             (5)  appraisal;
25             (6)  property management;
26             (7)  residential brokerage;
27             (8)  farm property management;
28             (9)  rights  and  duties  of  sellers,  buyers,  and
29        brokers;
30             (10)  commercial brokerage and leasing; and
31             (11)  real estate financing.
32        (f)  In lieu  of  credit  for  those  courses  listed  in
33    subsection  (e)  of  this  Section,  credit may be earned for
34    serving as a licensed instructor in  an  approved  course  of
 
HB0902 Engrossed            -29-              LRB9104235LDmbA
 1    continuing  education.   The  amount  of  credit  earned  for
 2    teaching a course shall be the amount of continuing education
 3    credit  for which the course is approved for licensees taking
 4    the course.
 5        (g)  Credit hours may be earned for  self-study  programs
 6    approved by the Advisory Council.
 7        (h)  A  broker  or  salesperson  may  earn  credit  for a
 8    specific continuing education course  only  once  during  the
 9    prerenewal period.
10        (i)  No  more than 6 hours of continuing education credit
11    may be earned in one calendar day.

12        Section 5-75.  Out-of-state continuing education  credit.
13    If  a renewal applicant has earned continuing education hours
14    in another state or territory for which he or she is claiming
15    credit toward  full  compliance  in  Illinois,  the  Advisory
16    Council  shall  review,  approve,  or  disapprove those hours
17    based upon whether the course is one that would  be  approved
18    under  Section 5-70 of this Act, whether the course meets the
19    basic requirements for continuing education under  this  Act,
20    and any other criteria that is provided by statute or rule.

21        Section  5-80.   Evidence  of  compliance with continuing
22    education requirements.
23        (a)  Each renewal applicant shall certify, on his or  her
24    renewal   application,   full   compliance   with  continuing
25    education  requirements  set  forth  in  Section  5-70.   The
26    continuing education school shall retain and submit  to  OBRE
27    after  the  completion  of  each  course  evidence  of  those
28    successfully completing the course as provided by rule.
29        (b)  OBRE  may  require additional evidence demonstrating
30    compliance with the continuing education  requirements.   The
31    renewal  applicant  shall  retain and produce the evidence of
32    compliance upon request of OBRE.
 
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 1        Section 5-85.  Offerings not meeting continuing education
 2    requirements.  The  following  offerings  do  not  meet   the
 3    continuing education requirements:
 4             (1)  Examination  preparation  offerings,  except as
 5        provided in Section 5-70 of this Act.
 6             (2)  Offerings in  mechanical  office  and  business
 7        skills such as typing, speed reading, memory improvement,
 8        advertising, or psychology of sales.
 9             (3)  Sales  promotion  or  other  meetings  held  in
10        conjunction  with the general business of the attendee or
11        his or her employer.
12             (4)  Meetings that are a  normal  part  of  in-house
13        staff or employee training.
14        The  offerings  listed  in  this Section do not limit the
15    Advisory Council's authority to disapprove  any  course  that
16    fails  to  meet  the  standards  of  this  Article 5 or rules
17    adopted by OBRE.

18          ARTICLE 10.  COMPENSATION AND BUSINESS PRACTICES

19        Section 10-5.  Payment of compensation.
20        (a)  No licensee shall pay  compensation  directly  to  a
21    licensee  sponsored  by another broker for the performance of
22    licensed activities.  No licensee sponsored by a  broker  may
23    pay  compensation  to  any  licensee  other  than  his or her
24    sponsoring broker for the performance of licensed  activities
25    unless the licensee paying the compensation is a principal to
26    the  transaction.    However, a non-sponsoring broker may pay
27    compensation directly to a licensee sponsored by another or a
28    person who is not sponsored by a broker if the  payments  are
29    made  pursuant  to  terms of an employment agreement that was
30    previously in place between a licensee and the non-sponsoring
31    broker, and the payments are for licensed activity  performed
32    by   that  person  while  previously  sponsored  by  the  now
 
HB0902 Engrossed            -31-              LRB9104235LDmbA
 1    non-sponsoring broker.
 2        (b)  No licensee  sponsored  by  a  broker  shall  accept
 3    compensation for the performance of activities under this Act
 4    except  from  the  broker  by whom the licensee is sponsored,
 5    except as provided in this Section.
 6        (c)  Any person that is a licensed personal assistant for
 7    another licensee may  only  be  compensated  in  his  or  her
 8    capacity as a personal assistant by the sponsoring broker for
 9    that licensed personal assistant.
10        (d)  One  sponsoring broker may pay compensation directly
11    to another sponsoring broker for the performance of  licensed
12    activities.

13        Section 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
21    which the licensee has greater than a 1%  ownership  interest
22    or  from which the licensee receives or may receive dividends
23    or other profit sharing distributions, other than a  publicly
24    held  or  traded  company,  for  the  purpose  of  the client
25    obtaining services  related  to  the  transaction,  then  the
26    licensee  shall  disclose that fact to the client at the time
27    of making the referral.
28        (d)  If  in  any  one  transaction  a  sponsoring  broker
29    receives compensation from  both  the  buyer  and  seller  or
30    lessee and lessor of real estate, the sponsoring broker shall
31    disclose   in   writing   to  a  client  the  fact  that  the
32    compensation is being paid by both buyer and seller or lessee
33    and lessor.
 
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 1        (e)  Nothing in the Act shall  prohibit  the  cooperation
 2    with  or  a payment of compensation to a person not domiciled
 3    in this State who is licensed as a real estate broker in  his
 4    or her state of domicile.

 5        Section  10-15.   No compensation to persons in violation
 6    of Act; compensation to unlicensed persons; consumer.
 7        (a)  No compensation may be paid to any unlicensed person
 8    in exchange for the person performing licensed activities  in
 9    violation of this Act.
10        (b)  No  action or suit shall be instituted, nor recovery
11    therein be had, in any court of this  State  by  any  person,
12    partnership,   registered   limited   liability  partnership,
13    limited liability company, or  corporation  for  compensation
14    for   any  act  done  or  service  performed,  the  doing  or
15    performing of which is prohibited by this Act to  other  than
16    licensed  brokers, salespersons, or leasing agents unless the
17    person,    partnership,    registered    limited    liability
18    partnership, limited liability company,  or  corporation  was
19    duly  licensed hereunder as a broker, salesperson, or leasing
20    agent under this Act at the time that any such act  was  done
21    or  service  performed  that  would  give  rise to a cause of
22    action for compensation.
23        (c)  A licensee may offer compensation, including prizes,
24    merchandise,   services,   rebates,   discounts,   or   other
25    consideration to an unlicensed person who is  a  party  to  a
26    contract  to  buy  or  sell  real  estate  or is a party to a
27    contract for the lease of real estate, so long as  the  offer
28    complies   with   the   provisions  of  subdivision  (26)  of
29    subsection (h) of Section 20-20 of this Act.
30        (d)  A licensee may offer cash,  gifts,  prizes,  awards,
31    coupons,  merchandise,  rebates  or  chances to win a game of
32    chance, if not prohibited by any other law or statute,  to  a
33    consumer  as  an  inducement  to  that  consumer  to  use the
 
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 1    services of the licensee even if the licensee and consumer do
 2    not ultimately enter into  a  broker-client  relationship  so
 3    long as the offer complies with the provisions of subdivision
 4    (26) of subsection (h) of Section 20-20 of this Act.

 5        Section 10-20.  Sponsoring broker; employment agreement.
 6        (a)  A licensee may perform activities as a licensee only
 7    for  his or her sponsoring broker.  A licensee must have only
 8    one sponsoring broker at any one time.
 9        (b)  Every  broker  who  employs  licensees  or  has   an
10    independent  contractor  relationship  with  a licensee shall
11    have a written employment agreement with each such licensee.
12    The broker having this written employment agreement with  the
13    licensee must be that licensee's sponsoring broker.
14        (c)  Every   sponsoring   broker   must  have  a  written
15    employment agreement with each licensee the broker  sponsors.
16    The  agreement  shall  address  the employment or independent
17    contractor relationship terms, including  without  limitation
18    supervision, duties, compensation, and termination.
19        (d)  Every   sponsoring   broker   must  have  a  written
20    employment agreement with each  licensed  personal  assistant
21    who  assists  a  licensee sponsored by the sponsoring broker.
22    This requirement applies to all licensed personal  assistants
23    whether  or  not  they  perform  licensed activities in their
24    capacity as a personal assistant. The agreement shall address
25    the employment or independent contractor relationship  terms,
26    including    without    limitation    supervision,    duties,
27    compensation, and termination.
28        (e)  Notwithstanding  the  fact  that a sponsoring broker
29    has an employment agreement with  a  licensee,  a  sponsoring
30    broker  may pay compensation directly to a corporation solely
31    owned by that licensee that has been formed for  the  purpose
32    of   receiving  compensation  earned  by  the  licensee.    A
33    corporation formed for the  purpose  herein  stated  in  this
 
HB0902 Engrossed            -34-              LRB9104235LDmbA
 1    subsection  (e)  shall  not  be required to be licensed under
 2    this Act so long as the person who is the sole shareholder of
 3    the corporation is licensed.

 4        Section 10-25.  Expiration  of  brokerage  agreement.  No
 5    licensee  shall  obtain  any written brokerage agreement that
 6    does not provide for automatic expiration within  a  definite
 7    period  of  time.   No  notice  of  termination  at the final
 8    expiration thereof shall be required.  Any written  brokerage
 9    agreement not containing a provision for automatic expiration
10    shall  be void.  When the license of any sponsoring broker is
11    suspended or  revoked,   any  brokerage  agreement  with  the
12    sponsoring   broker  shall  be  deemed  to  expire  upon  the
13    effective date of the suspension or revocation.

14        Section  10-27.  Disclosure  of  licensee  status.   Each
15    licensee shall disclose, in writing, his or her status  as  a
16    licensee to all parties in a transaction when the licensee is
17    selling,  leasing,  or  purchasing  any  interest,  direct or
18    indirect, in the real estate  that  is  the  subject  of  the
19    transaction.

20        Section 10-30.  Advertising.
21        (a)  No   advertising  shall  be  fraudulent,  deceptive,
22    inherently  misleading,  or  proven  to  be   misleading   in
23    practice.   It  shall  be considered misleading or untruthful
24    if, when taken as a whole, there is a distinct and reasonable
25    possibility that it will be misunderstood or will deceive the
26    ordinary  purchaser,  seller,  lessee,  lessor,   or   owner.
27    Advertising   shall  contain  all  information  necessary  to
28    communicate the information contained therein to  the  public
29    in a direct and readily comprehensible manner.
30        (b)  No  blind advertisements may be used by any licensee
31    except as provided for in this Section.
 
HB0902 Engrossed            -35-              LRB9104235LDmbA
 1        (c)  A  licensee  shall  disclose,  in  writing,  to  all
 2    parties in a transaction his or her status as a licensee  and
 3    any and all interest the licensee has or may have in the real
 4    estate  constituting  the subject matter thereof, directly or
 5    indirectly, according to the following guidelines:
 6             (1)  On   broker   yard   signs   or    in    broker
 7        advertisements,  no disclosure of ownership is necessary.
 8        However, the ownership shall be indicated on any property
 9        data form and disclosed  to  persons  responding  to  any
10        advertisement  or  any  sign.  The term "broker owned" or
11        "agent owned" is sufficient disclosure.
12             (2)  A sponsored or inoperative licensee selling  or
13        leasing  property,  owned  solely  by  the  sponsored  or
14        inoperative   licensee,   without   utilizing   brokerage
15        services   of   their  sponsoring  broker  or  any  other
16        licensee, may advertise "By Owner".  For purposes of this
17        Section, property is "solely owned"  by  a  sponsored  or
18        inoperative  licensee  if  he  or  she  (i)  has  a  100%
19        ownership  interest  alone, (ii) has ownership as a joint
20        tenant or tenant by the entirety, or (iii) holds  a  100%
21        beneficial  interest  in  a  land  trust.   Sponsored  or
22        inoperative licensees selling or leasing "By Owner" shall
23        comply with the following if advertising by owner:
24                  (A)  On "By Owner" yard signs, the sponsored or
25             inoperative  licensee  shall indicate "broker owned"
26             or "agent owned."  "By Owner" advertisements used in
27             any medium of advertising  shall  include  the  term
28             "broker owned" or "agent owned."
29                  (B)  If  a  sponsored  or  inoperative licensee
30             runs advertisements, for the purpose  of  purchasing
31             or  leasing real estate, he or she shall disclose in
32             the advertisements his or her status as a licensee.
33                  (C)  A sponsored or inoperative licensee  shall
34             not   use   the  sponsoring  broker's  name  or  the
 
HB0902 Engrossed            -36-              LRB9104235LDmbA
 1             sponsoring broker's company name in connection  with
 2             the  sale,  lease,  or advertisement of the property
 3             nor utilize the  sponsoring  broker's  or  company's
 4             name   in   connection  with  the  sale,  lease,  or
 5             advertising of the property in a  manner  likely  to
 6             create  confusion  among the public as to whether or
 7             not the services of a real estate company are  being
 8             utilized or whether or not a real estate company has
 9             an ownership interest in the property.
10        (d)  A  sponsored licensee may not advertise under his or
11    her  own  name.    Advertising  shall  be  under  the  direct
12    supervision of the sponsoring or managing broker and  in  the
13    sponsoring  broker's  business  name,  which in the case of a
14    franchise shall include the franchise affiliation as well  as
15    the  name  of  the  individual firm.  This provision does not
16    apply under the following circumstances:
17             (1)  When  a  licensee  enters  into   a   brokerage
18        agreement relating to his or her own real estate, or real
19        estate in which he or she has an ownership interest, with
20        another licensed broker; or
21             (2)  When  a  licensee  is selling or leasing his or
22        her own real estate or buying or leasing real estate  for
23        himself  or  herself,  after  providing  the  appropriate
24        written  disclosure  of  his or her ownership interest as
25        required in paragraph  (2)  of  subsection  (c)  of  this
26        Section.
27        (e)  No  licensee  shall  list  his or her name under the
28    heading or title "Real Estate" in the telephone directory  or
29    otherwise  advertise  in  his  or her own name to the general
30    public through any medium of advertising as being in the real
31    estate  business  without  listing  his  or  her   sponsoring
32    broker's business name.
33        (f)  The  sponsoring  broker's business name and the name
34    of the licensee must appear in all advertisements,  including
 
HB0902 Engrossed            -37-              LRB9104235LDmbA
 1    business  cards.   Nothing  in this Act shall be construed to
 2    require specific print size as between the broker's  business
 3    name and the name of the licensee.

 4                  ARTICLE 15.  AGENCY RELATIONSHIPS

 5        Section 15-5.  Legislative intent.
 6        (a)  The  General  Assembly finds that application of the
 7    common law of agency to the relationships among  real  estate
 8    brokers   and  salespersons  and  consumers  of  real  estate
 9    brokerage services  has  resulted  in  misunderstandings  and
10    consequences that have been contrary to the best interests of
11    the public.  The General Assembly further finds that the real
12    estate  brokerage  industry has a significant impact upon the
13    economy of the State of Illinois and that it is in  the  best
14    interest  of  the  public  to  provide  codification  of  the
15    relationships  between  real  estate brokers and salespersons
16    and consumers of real estate brokerage services in  order  to
17    prevent  detrimental misunderstandings and misinterpretations
18    of the relationships by consumers, real estate  brokers,  and
19    salespersons  and  thus  promote and provide stability in the
20    real estate market.  This Article 15 is enacted to govern the
21    relationships between  consumers  of  real  estate  brokerage
22    services  and  real  estate  brokers  and salespersons to the
23    extent  not  governed  by  an  individual  written  agreement
24    between a sponsoring broker and a  consumer,  providing  that
25    there  is  a  relationship other than designated agency. This
26    Article 15  applies  to  the  exclusion  of  the  common  law
27    concepts  of principal and agent and to the fiduciary duties,
28    which have been applied to real estate brokers, salespersons,
29    and real estate brokerage services.
30        (b)  The General Assembly further finds that this Article
31    15  is  not  intended  to  prescribe  or  affect  contractual
32    relationships between real estate brokers  and  the  broker's
 
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 1    affiliated licensees.
 2        (c)  This  Article  15  may  serve as a basis for private
 3    rights of action and defenses by sellers, buyers,  landlords,
 4    tenants,  real  estate brokers, and real estate salespersons.
 5    The private rights of action, however, do not extend  to  the
 6    provisions of any other Articles of this Act.

 7        Section   15-10.   Relationships  between  licensees  and
 8    consumers. Licensees shall be considered to  be  representing
 9    the  consumer they are working with as a designated agent for
10    the consumer unless:
11             (1)  there  is  a  written  agreement  between   the
12        sponsoring  broker  and the consumer providing that there
13        is a different relationship; or
14             (2)  the licensee  is  performing  only  ministerial
15        acts on behalf of the consumer.

16        Section 15-15.  Duties of licensees representing clients.
17        (a)  A licensee representing a client shall:
18             (1)  Perform  the  terms  of the brokerage agreement
19        between a broker and the client.
20             (2)  Promote the best interest of the client by:
21                  (A)  Seeking a transaction  at  the  price  and
22             terms  stated  in  the  brokerage  agreement or at a
23             price and terms otherwise acceptable to the client.
24                  (B)  Timely presenting all offers to  and  from
25             the client, unless the client has waived this duty.
26                  (C)  Disclosing  to  the  client material facts
27             concerning the transaction of which the licensee has
28             actual  knowledge,  unless   that   information   is
29             confidential  information.   Material  facts  do not
30             include the following when located on or related  to
31             real   estate   that  is  not  the  subject  of  the
32             transaction: (i) physical  conditions  that  do  not
 
HB0902 Engrossed            -39-              LRB9104235LDmbA
 1             have  a  substantial  adverse effect on the value of
 2             the real estate,  (ii)  fact  situations,  or  (iii)
 3             occurrences.
 4                  (D)  Timely   accounting   for  all  money  and
 5             property received in which the client has, may have,
 6             or should have had an interest.
 7                  (E)  Obeying specific directions of the  client
 8             that   are  not  otherwise  contrary  to  applicable
 9             statutes, ordinances, or rules.
10                  (F)  Acting  in  a   manner   consistent   with
11             promoting  the client's best interests as opposed to
12             a licensee's or any other person's self-interest.
13             (3)  Exercise  reasonable  skill  and  care  in  the
14        performance of brokerage services.
15             (4)  Keep confidential all confidential  information
16        received from the client.
17             (5)  Comply  with  all  requirements of this Act and
18        all  applicable  statutes  and   regulations,   including
19        without   limitation   fair   housing  and  civil  rights
20        statutes.
21        (b)  A licensee representing a client does not  breach  a
22    duty  or  obligation  to  the  client  by showing alternative
23    properties to prospective buyers or  tenants  or  by  showing
24    properties  in  which  the  client  is  interested  to  other
25    prospective buyers or tenants.
26        (c)  A  licensee  representing  a  buyer or tenant client
27    will not be presumed to have breached a duty or obligation to
28    that client by working on the basis that  the  licensee  will
29    receive  a higher fee or compensation based on higher selling
30    price or lease cost.
31        (d)  A licensee shall not  be  liable  to  a  client  for
32    providing  false  information  to  the  client  if  the false
33    information was provided to the licensee by a customer unless
34    the licensee knew or should have known  the  information  was
 
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 1    false.
 2        (e)  Nothing   in  the  Section  shall  be  construed  as
 3    changing a licensee's duty under common law as  to  negligent
 4    or fraudulent misrepresentation of material information.

 5        Section  15-20.   Failure  to  disclose  information  not
 6    affecting  physical condition. No cause of action shall arise
 7    against a licensee for the failure to disclose: (i)  that  an
 8    occupant   of   the   property   was   afflicted  with  Human
 9    Immunodeficiency Virus (HIV) or any other  medical  condition
10    (ii)  that  the property was the site of an act or occurrence
11    that had no effect on the physical condition of the  property
12    or  its  environment or the structures located thereon; (iii)
13    fact situations on property that is not the  subject  of  the
14    transaction;  or (iv) physical conditions located on property
15    that is not the subject of the transaction that do not have a
16    substantial adverse effect on the value of  the  real  estate
17    that is the subject of the transaction.

18        Section 15-25.  Licensee's relationship with customers.
19        (a)  Licensees  shall  treat  all  customers honestly and
20    shall  not  negligently  or   knowingly   give   them   false
21    information.   A  licensee  engaged  by a seller client shall
22    timely disclose to customers who are prospective  buyers  all
23    latent  material  adverse  facts  pertaining  to the physical
24    condition of the property that  are  actually  known  by  the
25    licensee  and  that  could  not be discovered by a reasonably
26    diligent inspection of  the  property  by  the  customer.   A
27    licensee  shall  not  be  liable  to a customer for providing
28    false information to the customer if  the  false  information
29    was provided to the licensee by the licensee's client and the
30    licensee  did  not have actual knowledge that the information
31    was false.  No cause of action shall arise on behalf  of  any
32    person  against  a  licensee  for  revealing  information  in
 
HB0902 Engrossed            -41-              LRB9104235LDmbA
 1    compliance with this Section.
 2        (b)  A  licensee  representing  a client in a real estate
 3    transaction  may  provide  assistance  to   a   customer   by
 4    performing  ministerial  acts.   Performing those ministerial
 5    acts shall not be construed in a manner  that  would  violate
 6    the brokerage agreement with the client, and performing those
 7    ministerial acts for the customer shall not be construed in a
 8    manner as to form a brokerage agreement with the customer.

 9        Section  15-30.   Duties  after  termination of brokerage
10    agreement. Except as may be provided in a  written  agreement
11    between  the  broker  and  the  client,  neither a sponsoring
12    broker nor any licensee affiliated with the sponsoring broker
13    owes any further duties  to  the  client  after  termination,
14    expiration,  or  completion  of  performance of the brokerage
15    agreement, except:
16             (1)  to account for all moneys and property relating
17        to the transaction; and
18             (2)  to   keep   confidential    all    confidential
19        information  received  during the course of the brokerage
20        agreement.

21        Section 15-35.  Agency relationship disclosure.
22        (a)  A consumer shall be  advised  of  the  following  no
23    later  than  entering  into  a  brokerage  agreement with the
24    sponsoring broker:
25             (1)  That a designated agency  relationship  exists,
26        unless  there is written agreement between the sponsoring
27        broker  and  the  consumer  providing  for  a   different
28        brokerage relationship.
29             (2)  The  name  or  names  of  his or her designated
30        agent or agents in writing.
31             (3)  The sponsoring broker's compensation and policy
32        with regard to cooperating  with  brokers  who  represent
 
HB0902 Engrossed            -42-              LRB9104235LDmbA
 1        other parties in a transaction.
 2        (b)  A  licensee  shall disclose in writing to a customer
 3    that the licensee is not acting as the agent of the  customer
 4    at  a  time  intended  to  prevent disclosure of confidential
 5    information from a customer to a licensee, but  in  no  event
 6    later  than  the preparation of an offer to purchase or lease
 7    real  property.   This  subsection  (b)  does  not  apply  to
 8    residential lease or rental transactions unless the lease  or
 9    rental agreement includes an option to purchase real estate.

10        Section  15-40.   Compensation does not determine agency.
11    Compensation does not  determine  agency  relationship.   The
12    payment  or  promise of payment of compensation to a licensee
13    is not determinative of whether an  agency  relationship  has
14    been created between any licensee and a consumer.

15        Section 15-45.  Dual agency.
16        (a)  A  licensee  may  act  as a dual agent only with the
17    informed written consent of all clients.    Informed  written
18    consent  shall  be  presumed to have been given by any client
19    who signs a document that includes the following:
20             "The undersigned (insert name(s)), ("Licensee"), may
21        undertake  a  dual  representation  (represent  both  the
22        seller or landlord and the buyer or tenant) for the  sale
23        or  lease  of property.  The undersigned acknowledge they
24        were  informed  of  the  possibility  of  this  type   of
25        representation.  Before signing this document please read
26        the  following:  Representing  more  than  one party to a
27        transaction presents a conflict of  interest  since  both
28        clients  may rely upon Licensee's advice and the client's
29        respective  interests  may  be  adverse  to  each  other.
30        Licensee will undertake this representation only with the
31        written consent of ALL clients in  the  transaction.  Any
32        agreement  between  the  clients  as  to a final contract
 
HB0902 Engrossed            -43-              LRB9104235LDmbA
 1        price and other terms is a result of negotiations between
 2        the clients acting in their own  best  interests  and  on
 3        their  own  behalf.   You  acknowledge  that Licensee has
 4        explained  the  implications  of   dual   representation,
 5        including  the  risks  involved,  and understand that you
 6        have been advised to seek independent  advice  from  your
 7        advisors  or  attorneys  before  signing any documents in
 8        this transaction.
 9                 WHAT A LICENSEE CAN DO FOR CLIENTS
10                     WHEN ACTING AS A DUAL AGENT
11        1.  Treat all clients honestly.
12        2.  Provide information about the property to  the  buyer
13        or tenant.
14        3.  Disclose  all latent material defects in the property
15        that are known to the Licensee.
16        4.  Disclose financial  qualification  of  the  buyer  or
17        tenant to the seller or landlord.
18        5.  Explain real estate terms.
19        6.  Help  the  buyer  or  tenant  to arrange for property
20        inspections.
21        7.  Explain closing costs and procedures.
22        8.  Help the buyer compare financing alternatives.
23        9.  Provide information about comparable properties  that
24        have  sold so both clients may make educated decisions on
25        what price to accept or offer.
26            WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
27                       ACTING AS A DUAL AGENT
28        1.  Confidential information that Licensee may know about
29        a client, without that client's permission.
30        2.  The price the seller or landlord will take other than
31        the listing price without permission  of  the  seller  or
32        landlord.
33        3.  The  price  the  buyer  or  tenant  is willing to pay
34        without permission of the buyer or tenant.
 
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 1        4.  A recommended or suggested price the buyer or  tenant
 2        should offer.
 3        5.  A  recommended  or  suggested  price  the  seller  or
 4        landlord should counter with or accept.
 5             If   either   client   is  uncomfortable  with  this
 6        disclosure and dual representation, please  let  Licensee
 7        know.  You  are not required to sign this document unless
 8        you want to allow Licensee to proceed as a Dual Agent  in
 9        this  transaction. By signing below, you acknowledge that
10        you have read and understand this  form  and  voluntarily
11        consent  to  Licensee acting as a Dual Agent (that is, to
12        represent BOTH the seller or landlord and  the  buyer  or
13        tenant) should that become necessary."
14        (b)  The  dual  agency  disclosure  form  provided for in
15    subsection (a)  of  this  Section  must  be  presented  by  a
16    licensee,  who  offers  dual representation, to the client at
17    the time the brokerage agreement is entered into and  may  be
18    signed  by  the client at that time or at any time before the
19    licensee acts as a dual agent as to the client.
20        (c)  A licensee acting in a dual  agency  capacity  in  a
21    transaction  must  obtain  a  written  confirmation  from the
22    licensee's clients of their prior consent for the licensee to
23    act as a dual agent in  the  transaction.  This  confirmation
24    should  be obtained at the time the clients are executing any
25    offer or contract to purchase or lease in  a  transaction  in
26    which   the  licensee  is  acting  as  a  dual  agent.   This
27    confirmation may be included in another document, such  as  a
28    contract  to purchase, in which case the client must not only
29    sign the document but also initial the confirmation  of  dual
30    agency   provision.   That  confirmation  must  state,  at  a
31    minimum, the following:
32             "The undersigned confirm that they  have  previously
33        consented  to (insert name(s)), ("Licensee"), acting as a
34        Dual Agent  in  providing  brokerage  services  on  their
 
HB0902 Engrossed            -45-              LRB9104235LDmbA
 1        behalf  and  specifically consent to Licensee acting as a
 2        Dual Agent in regard to the transaction  referred  to  in
 3        this document."
 4        (d)  No  cause  of  action  shall  arise on behalf of any
 5    person against a dual agent for making disclosures allowed or
 6    required by  this  Article,  and  the  dual  agent  does  not
 7    terminate  any  agency  relationship by making the allowed or
 8    required disclosures.
 9        (e)  In the case of dual  agency,  each  client  and  the
10    licensee  possess  only  actual  knowledge  and  information.
11    There  shall  be  no  imputation  of knowledge or information
12    among  or  between  clients,  brokers,  or  their  affiliated
13    licensees.
14        (f)  In any transaction, a licensee may without liability
15    withdraw from representing a client who has not consented  to
16    a  disclosed dual agency.  The withdrawal shall not prejudice
17    the ability of the licensee  to  continue  to  represent  the
18    other  client  in  the transaction or limit the licensee from
19    representing  the  client  in  other  transactions.   When  a
20    withdrawal as contemplated in this subsection (f) occurs, the
21    licensee shall not receive a referral  fee  for  referring  a
22    client  to another licensee unless written disclosure is made
23    to both the withdrawing client and the client that  continues
24    to be represented by the licensee.

25        Section 15-50.  Designated agency.
26        (a)  A  sponsoring broker entering into an agreement with
27    any person for the listing of property or for the purpose  of
28    representing  any  person in the buying, selling, exchanging,
29    renting, or leasing of real estate may specifically designate
30    those licensees employed by or affiliated with the sponsoring
31    broker who will be acting as legal agents of that  person  to
32    the   exclusion   of  all  other  licensees  employed  by  or
33    affiliated with the sponsoring broker.  A  sponsoring  broker
 
HB0902 Engrossed            -46-              LRB9104235LDmbA
 1    entering  into  an  agreement  under  the  provisions of this
 2    Section shall not be considered to be acting  for  more  than
 3    one  party  in  a  transaction  if the licensees specifically
 4    designated as legal agents of a person are  not  representing
 5    more than one party in a transaction.
 6        (b)  A sponsoring broker designating affiliated licensees
 7    to act as agents of clients shall take ordinary and necessary
 8    care  to  protect  confidential  information  disclosed  by a
 9    client to his or her designated agent.
10        (c)  A designated  agent  may  disclose  to  his  or  her
11    sponsoring  broker  or  persons  specified  by the sponsoring
12    broker confidential information of a client for  the  purpose
13    of seeking advice or assistance for the benefit of the client
14    in   regard   to   a   possible  transaction.    Confidential
15    information shall not be disclosed by the  sponsoring  broker
16    or  other  specified  representative of the sponsoring broker
17    unless  otherwise  required  by  this  Act  or  requested  or
18    permitted  by  the  client  who  originally   disclosed   the
19    confidential information.

20        Section  15-55.  No subagency. A broker is not considered
21    to be a subagent of a client  of  another  broker  solely  by
22    reason of membership or other affiliation by the brokers in a
23    multiple listing service or other similar information source,
24    and  an offer of subagency may not be made through a multiple
25    listing service or other similar information source.

26        Section 15-60.  Vicarious liability. A consumer shall not
27    be vicariously liable for the acts or omissions of a licensee
28    in providing licensed activities for  or  on  behalf  of  the
29    consumer.

30        Section 15-65.  Regulatory enforcement. Nothing contained
31    in  this  Article  limits OBRE in its regulation of licensees
 
HB0902 Engrossed            -47-              LRB9104235LDmbA
 1    under other Articles of this Act and  the  substantive  rules
 2    adopted  by  OBRE.   OBRE,  with  the advice of the Board, is
 3    authorized to promulgate any rules that may be necessary  for
 4    the implementation and enforcement of this Article 15.

 5        Section 15-70.  Actions for damages.
 6        (a)  In  any  action  brought  under this Article 15, the
 7    court may, in its discretion, award only actual  damages  and
 8    court costs or grant injunctive relief, when appropriate.
 9        (b)  Any  action  under  this Article 15 shall be forever
10    barred unless commenced  within  2  years  after  the  person
11    bringing  the  action knew or should reasonably have known of
12    such act or omission.   In  no  event  shall  the  action  be
13    brought  more than 5 years after the date on which the act or
14    omission occurred.  If  the  person  entitled  to  bring  the
15    action  is  under the age of 18 or under legal disability the
16    period of limitations  shall  not  begin  to  run  until  the
17    disability is removed.

18                 ARTICLE 20. DISCIPLINARY PROVISIONS

19        Section 20-5.  Index of decisions. OBRE shall maintain an
20    index  of formal decisions regarding the issuance, refusal to
21    issue, renewal, refusal to renew, revocation, and  suspension
22    of  licenses  and  probationary  or other disciplinary action
23    taken under this Act on or  after  December  31,  1999.   The
24    decisions  shall  be  indexed  according  to  the Sections of
25    statutes and the administrative rules, if any, that  are  the
26    basis  for the decision.  The index shall be available to the
27    public during regular business hours.

28        Section 20-10.  Unlicensed practice; civil penalty.
29        (a)  Any  person  who  practices,  offers  to   practice,
30    attempts  to  practice, or holds oneself out to practice as a
 
HB0902 Engrossed            -48-              LRB9104235LDmbA
 1    real estate broker, real estate salesperson, or leasing agent
 2    without being licensed under this Act shall, in  addition  to
 3    any  other  penalty provided by law, pay a civil fine to OBRE
 4    in an amount not  to  exceed  $25,000  for  each  offense  as
 5    determined by OBRE.  The civil fine shall be assessed by OBRE
 6    after a hearing is held in accordance with the provisions set
 7    forth  in  this  Act regarding the provision of a hearing for
 8    the discipline of a license.
 9        (b)  OBRE has the authority and power to investigate  any
10    and all unlicensed activity.
11        (c)  The  civil  fine  shall be paid within 60 days after
12    the effective date of the order imposing the civil fine.  The
13    order shall constitute a  judgement  and  may  be  filed  and
14    execution  had  thereon  in the same manner from any court of
15    record.

16        Section 20-15.  Violations. The commission  of  a  single
17    act  prohibited  by  this  Act  or  prohibited  by  the rules
18    promulgated under this Act or a violation of  a  disciplinary
19    order  issued  under this Act constitutes a violation of this
20    Act.

21        Section 20-20.  Disciplinary actions;  causes.  OBRE  may
22    refuse  to  issue or renew a license, may place on probation,
23    suspend, or revoke any license, or may censure, reprimand, or
24    otherwise discipline or impose a civil  fine  not  to  exceed
25    $25,000  upon  any  licensee  hereunder  for  any  one or any
26    combination of the following causes:
27        (a)  When the applicant or  licensee  has,  by  false  or
28    fraudulent  representation,  obtained  or  sought to obtain a
29    license.
30        (b)  When the applicant or licensee has been convicted of
31    any crime, an essential element of  which  is  dishonesty  or
32    fraud or larceny, embezzlement, or obtaining money, property,
 
HB0902 Engrossed            -49-              LRB9104235LDmbA
 1    or  credit  by  false  pretenses  or by means of a confidence
 2    game, has been convicted in this or another state of a  crime
 3    that  is  a  felony under the laws of this State, or has been
 4    convicted of a felony in a federal court.
 5        (c)  When the applicant or licensee has been adjudged  to
 6    be  a person under legal disability or subject to involuntary
 7    admission or to meet the standard for judicial  admission  as
 8    provided  in the Mental Health and Developmental Disabilities
 9    Code.
10        (d)  When the licensee performs or  attempts  to  perform
11    any  act  as  a  broker  or  salesperson  in  a  retail sales
12    establishment from an office, desk,  or  space  that  is  not
13    separated  from  the  main  retail business by a separate and
14    distinct area within the establishment.
15        (e)  Discipline of  a  licensee  by  another  state,  the
16    District  of  Columbia,  a  territory,  a  foreign  nation, a
17    governmental agency, or any other entity authorized to impose
18    discipline if at least one of the grounds for that discipline
19    is the same as or the equivalent of one of  the  grounds  for
20    discipline  set  forth  in  this  Act, in which case the only
21    issue will be whether one of the grounds for that  discipline
22    is  the  same  or  equivalent  to  one  of  the  grounds  for
23    discipline under this Act.
24        (f)  When  the  applicant or licensee has engaged in real
25    estate activity without a license  or  after  the  licensee's
26    license was expired or while the license was inoperative.
27        (g)  When  the  applicant or licensee attempts to subvert
28    or cheat on  the  Real  Estate  License  Exam  or  continuing
29    education  exam  or aids and abets an applicant to subvert or
30    cheat on the Real Estate License Exam or continuing education
31    exam administered pursuant to this Act.
32        (h)  When  the  licensee  in  performing,  attempting  to
33    perform, or pretending  to  perform  any  act  as  a  broker,
34    salesperson,  or  leasing  agent  or  when  the  licensee  in
 
HB0902 Engrossed            -50-              LRB9104235LDmbA
 1    handling  his  or  her  own  property,  whether held by deed,
 2    option, or otherwise, is found guilty of:
 3             (1)  Making  any  substantial  misrepresentation  or
 4        untruthful advertising.
 5             (2)  Making any false promises of a character likely
 6        to influence, persuade, or induce.
 7             (3)  Pursuing a continued  and  flagrant  course  of
 8        misrepresentation or the making of false promises through
 9        licensees, employees, agents, advertising, or otherwise.
10             (4)  Any  misleading  or  untruthful advertising, or
11        using any trade name or insignia  of  membership  in  any
12        real  estate  organization of which the licensee is not a
13        member.
14             (5)  Acting for more than one party in a transaction
15        without providing written notice to all parties for  whom
16        the licensee acts.
17             (6)  Representing   or  attempting  to  represent  a
18        broker other than the sponsoring broker.
19             (7)  Failure to account for or to remit  any  moneys
20        or  documents  coming  into  his  or  her possession that
21        belong to others.
22             (8)  Failure to maintain and deposit  in  a  special
23        account,  separate  and  apart  from  personal  and other
24        business accounts, all escrow moneys belonging to  others
25        entrusted  to  a  licensee  while acting as a real estate
26        broker, escrow agent, or temporary custodian of the funds
27        of others or failure to maintain  all  escrow  moneys  on
28        deposit   in  the  account  until  the  transactions  are
29        consummated or terminated, except to the extent that  the
30        moneys,  or any part thereof, shall be disbursed prior to
31        the consummation or termination in  accordance  with  (i)
32        the   written   direction   of   the  principals  to  the
33        transaction  or  their  duly  authorized   agents,   (ii)
34        directions   providing   for  the  release,  payment,  or
 
HB0902 Engrossed            -51-              LRB9104235LDmbA
 1        distribution of escrow moneys contained  in  any  written
 2        contract  signed  by the principals to the transaction or
 3        their duly authorized agents, or  (iii)  pursuant  to  an
 4        order  of  a court of competent jurisdiction. The account
 5        shall be noninterest bearing, unless the character of the
 6        deposit is such  that  payment  of  interest  thereon  is
 7        otherwise required by law or unless the principals to the
 8        transaction  specifically  require,  in writing, that the
 9        deposit be placed in an interest bearing account.
10             (9)  Failure to make available to  the  real  estate
11        enforcement  personnel  of  OBRE  during  normal business
12        hours all escrow records and related documents maintained
13        in connection with the practice of real estate within  24
14        hours of a request for those documents by OBRE personnel.
15             (10)  Failing  to furnish copies upon request of all
16        documents relating to a real estate  transaction  to  all
17        parties executing them.
18             (11)  Failure  of  a  sponsoring  broker  to  timely
19        provide  information,  sponsor  cards,  or termination of
20        licenses to OBRE.
21             (12)  Engaging  in   dishonorable,   unethical,   or
22        unprofessional  conduct of a character likely to deceive,
23        defraud, or harm the public.
24             (13)  Commingling the money or  property  of  others
25        with his or her own.
26             (14)  Employing  any person on a purely temporary or
27        single deal basis as a means of evading the law regarding
28        payment   of   commission   to   nonlicensees   on   some
29        contemplated transactions.
30             (15)  Permitting the use of his or her license as  a
31        broker  to  enable  a salesperson or unlicensed person to
32        operate   a   real   estate   business   without   actual
33        participation therein and control thereof by the broker.
34             (16)  Any other conduct, whether of the  same  or  a
 
HB0902 Engrossed            -52-              LRB9104235LDmbA
 1        different  character from that specified in this Section,
 2        that constitutes dishonest dealing.
 3             (17)  Displaying a "for rent" or "for sale" sign  on
 4        any  property  without the written consent of an owner or
 5        his or her duly authorized agent or  advertising  by  any
 6        means  that  any property is for sale or for rent without
 7        the written consent of the owner or his or her authorized
 8        agent.
 9             (18)  Failing to provide  information  requested  by
10        OBRE, within 30 days of the request, either as the result
11        of  a formal or informal complaint to OBRE or as a result
12        of a random audit conducted by OBRE, which would indicate
13        a violation of this Act.
14             (19)  Advertising by means of a blind advertisement,
15        except as otherwise permitted in Section  10-30  of  this
16        Act.
17             (20)  Offering guaranteed sales plans, as defined in
18        clause (A) of this subdivision (20), except to the extent
19        hereinafter set forth:
20                  (A)  A  "guaranteed  sales  plan"  is  any real
21             estate purchase or sales  plan  whereby  a  licensee
22             enters  into  a conditional or unconditional written
23             contract with a seller  by  the  terms  of  which  a
24             licensee agrees to purchase a property of the seller
25             within  a  specified  period  of  time at a specific
26             price in the event  the  property  is  not  sold  in
27             accordance  with  the  terms  of  a listing contract
28             between the sponsoring broker and the seller  or  on
29             other terms acceptable to the seller.
30                  (B)  A  licensee  offering  a  guaranteed sales
31             plan shall provide the details and conditions of the
32             plan in writing to the party to  whom  the  plan  is
33             offered.
34                  (C)  A  licensee  offering  a  guaranteed sales
 
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 1             plan shall provide to the party to whom the plan  is
 2             offered  evidence  of sufficient financial resources
 3             to satisfy the commitment to purchase undertaken  by
 4             the broker in the plan.
 5                  (D)  Any  licensee  offering a guaranteed sales
 6             plan shall undertake to market the property  of  the
 7             seller  subject  to  the  plan in the same manner in
 8             which the broker would market  any  other  property,
 9             unless   the  agreement  with  the  seller  provides
10             otherwise.
11                  (E)  Any licensee who fails  to  perform  on  a
12             guaranteed  sales plan in strict accordance with its
13             terms shall be subject to all the penalties provided
14             in this Act for violations thereof and, in addition,
15             shall be subject to a  civil  fine  payable  to  the
16             party  injured  by the default in an amount of up to
17             $25,000.
18             (21)  Influencing or attempting to influence, by any
19        words or acts, a prospective seller, purchaser, occupant,
20        landlord, or tenant of real estate,  in  connection  with
21        viewing, buying, or leasing real estate, so as to promote
22        or  tend  to  promote  the  continuance or maintenance of
23        racially and religiously segregated housing or so  as  to
24        retard,   obstruct,  or  discourage  racially  integrated
25        housing on or in  any  street,  block,  neighborhood,  or
26        community.
27             (22)  Engaging   in   any  act  that  constitutes  a
28        violation of any provision of Article 3 of  the  Illinois
29        Human  Rights  Act,  whether  or not a complaint has been
30        filed with or adjudicated by the Human Rights Commission.
31             (23)  Inducing any party to a contract  of  sale  or
32        lease  or  brokerage  agreement  to break the contract of
33        sale or lease or brokerage agreement for the  purpose  of
34        substituting, in lieu thereof, a new contract for sale or
 
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 1        lease or brokerage agreement with a third party.
 2             (24)  Negotiating a sale, exchange, or lease of real
 3        estate  directly  with  any  person if the licensee knows
 4        that  the  person  has  a  written  exclusive   brokerage
 5        agreement   with   another  broker,  unless  specifically
 6        authorized by that broker.
 7             (25)  When a licensee is also an attorney, acting as
 8        the attorney for either the buyer or the  seller  in  the
 9        same  transaction  in which the licensee is acting or has
10        acted as a broker or salesperson.
11             (26)  Advertising   or   offering   merchandise   or
12        services  as  free  if  any  conditions  or   obligations
13        necessary  for  receiving the merchandise or services are
14        not disclosed in the same advertisement or offer.   These
15        conditions  or obligations include without limitation the
16        requirement  that  the  recipient  attend  a  promotional
17        activity or visit a real estate site.  As  used  in  this
18        subdivision  (26), "free" includes terms such as "award",
19        "prize", "no charge", "free of charge", "without charge",
20        and similar words  or  phrases  that  reasonably  lead  a
21        person  to believe that he or she may receive or has been
22        selected to  receive  something  of  value,  without  any
23        conditions or obligations on the part of the recipient.
24             (27)  Disregarding or violating any provision of the
25        Land  Sales  Registration  Act of 1989, the Illinois Real
26        Estate Time-Share Act, or the published rules promulgated
27        by OBRE to enforce those Acts.
28             (28)  Violating the terms of  a  disciplinary  order
29        issued by OBRE.
30             (29)  Paying compensation in violation of Article 10
31        of this Act.
32             (30)  Requiring  a party to a transaction who is not
33        a client of the licensee to allow the licensee to  retain
34        a  portion  of  the  escrow  moneys  for  payment  of the
 
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 1        licensee's commission or  expenses  as  a  condition  for
 2        release of the escrow moneys to that party.
 3             (31)  Disregarding  or  violating  any  provision of
 4        this Act or the published rules promulgated  by  OBRE  to
 5        enforce  this  Act  or aiding or abetting any individual,
 6        partnership, registered  limited  liability  partnership,
 7        limited liability company, or corporation in disregarding
 8        any   provision  of  this  Act  or  the  published  rules
 9        promulgated by OBRE to enforce this Act.

10        Section 20-25.  Returned checks;  fees.  Any  person  who
11    delivers a check or other payment to OBRE that is returned to
12    OBRE  unpaid  by  the  financial institution upon which it is
13    drawn shall pay to OBRE, in addition to  the  amount  already
14    owed to OBRE, a fee of $50.  The fees imposed by this Section
15    are  in  addition to any other discipline provided under this
16    Act for unlicensed  practice  or  practice  on  a  nonrenewed
17    license.  OBRE  shall  notify the person that payment of fees
18    and fines shall be paid to OBRE by certified check  or  money
19    order within 30 calendar days of the notification.  If, after
20    the  expiration of 30 days from the date of the notification,
21    the person has failed to  submit  the  necessary  remittance,
22    OBRE  shall  automatically  terminate the license or deny the
23    application,  without  hearing.   If,  after  termination  or
24    denial, the person seeks a license, he or she shall apply  to
25    OBRE  for  restoration or issuance of the license and pay all
26    fees and fines due to OBRE. OBRE may establish a fee for  the
27    processing  of an application for restoration of a license to
28    pay  all  expenses  of  processing  this  application.    The
29    Commissioner  may  waive  the  fees due under this Section in
30    individual cases where the Commissioner finds that  the  fees
31    would be unreasonable or unnecessarily burdensome.

32        Section  20-30.  Standards of practice of leasing agents;
 
HB0902 Engrossed            -56-              LRB9104235LDmbA
 1    disciplinary procedures. OBRE may by rule, with the advice of
 2    the Board, prescribe standards of practice to be followed  by
 3    licensed leasing agents.  Standards of practice shall include
 4    without  limitation acts or omissions that leasing agents are
 5    prohibited from engaging  in,  disciplinary  procedures,  and
 6    penalties for violating provisions of this Act.  Disciplinary
 7    procedures  shall  conform  with  disciplinary procedures for
 8    licensed real estate brokers and  salespersons.    Complaints
 9    shall be heard as provided for in this Act.

10        Section  20-35.   Violations of tax Acts. OBRE may refuse
11    to issue or renew or may suspend the license  of  any  person
12    who fails to file a return, pay the tax, penalty, or interest
13    shown  in a filed return, or pay any final assessment of tax,
14    penalty, or interest, as required by any tax Act administered
15    by  the  Department  of  Revenue,  until  such  time  as  the
16    requirements of any such tax Act are satisfied.

17        Section 20-40.  Disciplinary action for educational  loan
18    defaults.  OBRE shall deny a license or renewal authorized by
19    this Act to a person who has defaulted on an educational loan
20    or scholarship provided or guaranteed by the Illinois Student
21    Assistance Commission or  any  governmental  agency  of  this
22    State;  however,  OBRE  may issue a license or renewal if the
23    person has established a  satisfactory  repayment  record  as
24    determined  by  the Illinois Student Assistance Commission or
25    other  appropriate  governmental  agency   of   this   State.
26    Additionally,  a  license  issued by OBRE may be suspended or
27    revoked if the Commissioner,  after  the  opportunity  for  a
28    hearing  under  this  Article,  finds  that  the licensee has
29    failed to make satisfactory repayment to the Illinois Student
30    Assistance Commission for a delinquent or defaulted loan.

31        Section 20-45.  Nonpayment of child support. In cases  in
 
HB0902 Engrossed            -57-              LRB9104235LDmbA
 1    which  the Department of Public Aid has previously determined
 2    that a licensee or a potential licensee is more than 30  days
 3    delinquent   in   the   payment  of  child  support  and  has
 4    subsequently certified the  delinquency  to  OBRE,  OBRE  may
 5    refuse  to  issue  or  renew  or  may  revoke or suspend that
 6    person's  license  or  may  take  other  disciplinary  action
 7    against that person based solely upon  the  certification  of
 8    delinquency   made   by   the   Department   of  Public  Aid.
 9    Redetermination of the  delinquency  by  OBRE  shall  not  be
10    required.   In cases regarding the renewal of a license, OBRE
11    shall not renew any license if the Department of  Public  Aid
12    has certified the licensee to be more than 30 days delinquent
13    in  the  payment  of  child  support  unless the licensee has
14    arranged for  payment  of  past  and  current  child  support
15    obligations  in  a  manner  satisfactory to the Department of
16    Public Aid.  OBRE may  impose  conditions,  restrictions,  or
17    disciplinary action upon that renewal.

18        Section  20-50.   Illegal discrimination.  When there has
19    been an adjudication in a civil or criminal proceeding that a
20    licensee has illegally discriminated  while  engaged  in  any
21    activity  for  which  a  license  is required under this Act,
22    OBRE, upon the recommendation of the Board as to  the  extent
23    of  the suspension or revocation, shall suspend or revoke the
24    license of that licensee  in  a  timely  manner,  unless  the
25    adjudication is in the appeal process. When there has been an
26    order in an administrative proceeding finding that a licensee
27    has illegally discriminated while engaged in any activity for
28    which  a  license  is  required  under  this  Act, OBRE, upon
29    recommendation of the Board as to the nature  and  extent  of
30    the  discipline,  shall  take one or more of the disciplinary
31    actions provided for in Section 20-20 of this Act in a timely
32    manner, unless the administrative  order  is  in  the  appeal
33    process.
 
HB0902 Engrossed            -58-              LRB9104235LDmbA
 1        Section  20-55.   Illinois  Administrative Procedure Act.
 2    The Illinois Administrative Procedure Act is hereby expressly
 3    adopted and incorporated herein as if all of  the  provisions
 4    of  that  Act  were  included  in  this  Act, except that the
 5    provision of subsection (d) of Section 10-65 of the  Illinois
 6    Administrative  Procedure  Act that provides that at hearings
 7    the licensee has the right to show compliance with all lawful
 8    requirements for retention, continuation, or renewal  of  the
 9    license  is  specifically excluded.  For the purposes of this
10    Act, the notice required under  the  Illinois  Administrative
11    Procedure  Act  is  deemed sufficient when mailed to the last
12    known address of a party.

13        Section   20-60.    Hearing;    investigation;    notice;
14    disciplinary consent order.
15        (a)  OBRE  may  conduct  hearings  through the Board or a
16    duly appointed hearing officer  on  proceedings  to  suspend,
17    revoke,  or  to  refuse to issue or renew licenses of persons
18    applying for licensure or  licensed  under  this  Act  or  to
19    censure,  reprimand,  or  impose  a  civil fine not to exceed
20    $25,000 upon any licensee hereunder and may revoke,  suspend,
21    or  refuse  to  issue  or  renew  these  licenses or censure,
22    reprimand, or impose a civil fine not to exceed $25,000  upon
23    any licensee hereunder.
24        (b)  Upon  the motion of either OBRE or the Board or upon
25    the verified complaint in  writing  of  any  persons  setting
26    forth  facts  that  if  proven  would  constitute grounds for
27    suspension or revocation under this Act, OBRE, the Board,  or
28    its  subcommittee  shall cause to be investigated the actions
29    of any person so accused who holds a license  or  is  holding
30    himself  or  herself  out  to  be a licensee.  This person is
31    hereinafter called the accused.
32        (c)  Prior  to   initiating   any   formal   disciplinary
33    proceedings   resulting   from   an  investigation  conducted
 
HB0902 Engrossed            -59-              LRB9104235LDmbA
 1    pursuant to subsection (b) of this Section, that matter shall
 2    be reviewed by a  subcommittee  of  the  Board  according  to
 3    procedures established by rule. The subcommittee shall make a
 4    recommendation  to  the  full Board as to the validity of the
 5    complaint and may recommend that the Board not  proceed  with
 6    formal   disciplinary   proceedings   if   the  complaint  is
 7    determined to be frivolous or without merit.
 8        (d)  Except as provided for in Section 20-65 of this Act,
 9    OBRE  shall,  before   suspending,   revoking,   placing   on
10    probationary  status, or taking any other disciplinary action
11    as OBRE may deem proper with regard to any license:
12             (1)  notify the accused in writing at least 30  days
13        prior to the date set for the hearing of any charges made
14        and  the time and place for the hearing of the charges to
15        be heard before the Board under oath; and
16             (2)  inform the accused that upon failure to file an
17        answer and request a hearing before the  date  originally
18        set  for  the  hearing, default will be taken against the
19        accused and his or her license may be suspended, revoked,
20        or placed on probationary status, or  other  disciplinary
21        action,  including  limiting the scope, nature, or extent
22        of the accused's practice, as OBRE may deem  proper,  may
23        be taken with regard thereto.
24        In  case  the  person  fails  to  file  an  answer  after
25    receiving  notice,  his or her license may, in the discretion
26    of OBRE, be suspended, revoked,  or  placed  on  probationary
27    status,  or OBRE may take whatever disciplinary action deemed
28    proper, including limiting the scope, nature,  or  extent  of
29    the  person's practice or the imposition of a fine, without a
30    hearing, if the act or  acts  charged  constitute  sufficient
31    grounds for such action under this Act.
32        (e)  At the time and place fixed in the notice, the Board
33    shall  proceed to hearing of the charges and both the accused
34    person  and  the  complainant   shall   be   accorded   ample
 
HB0902 Engrossed            -60-              LRB9104235LDmbA
 1    opportunity   to   present  in  person  or  by  counsel  such
 2    statements,  testimony,  evidence  and  argument  as  may  be
 3    pertinent to the charges or  to  any  defense  thereto.   The
 4    Board or its hearing officer may continue a hearing date upon
 5    its own motion or upon an accused's motion for one period not
 6    to  exceed  30  days.   The  Board or its hearing officer may
 7    grant further continuances for periods not to exceed 30  days
 8    only  upon  good  cause being shown by the moving party.  The
 9    non-moving party shall have the opportunity to  object  to  a
10    continuance  on  the  record  at a hearing upon the motion to
11    continue. All motions for  continuances  and  any  denial  or
12    grant  thereof  shall  be  in  writing.  All motions shall be
13    submitted not  later  than  48  hours  before  the  scheduled
14    hearing  unless made upon an emergency basis.  In determining
15    whether good cause for a continuance is shown, the  Board  or
16    its hearing officer shall consider such factors as the volume
17    of  cases  pending, the nature and complexity of legal issues
18    raised, the diligence of the party making  the  request,  the
19    availability  of  party's  legal representative or witnesses,
20    and the number of previous requests for continuance.
21        (f)  Any  unlawful  act  or  violation  of  any  of   the
22    provisions  of  this  Act  upon  the  part  of  any licensees
23    employed by a real estate broker  or  associated  by  written
24    agreement with the real estate broker, or unlicensed employee
25    of  a  licensed broker, shall not be cause for the revocation
26    of the license of any  such  broker,  partial  or  otherwise,
27    unless it appears to the satisfaction of OBRE that the broker
28    had knowledge thereof.
29        (g)  OBRE  or the Board has power to subpoena any persons
30    or documents for the purpose of investigation or hearing with
31    the  same  fees  and  mileage  and  in  the  same  manner  as
32    prescribed by law for judicial procedure in  civil  cases  in
33    courts  of  this  State.  The Commissioner, the Director, any
34    member of the Board, a certified court reporter, or a hearing
 
HB0902 Engrossed            -61-              LRB9104235LDmbA
 1    officer  shall  each  have  power  to  administer  oaths   to
 2    witnesses  at any hearing which OBRE is authorized under this
 3    Act to conduct.
 4        (h)  Any circuit court or any  judge  thereof,  upon  the
 5    application  of the accused person, complainant, OBRE, or the
 6    Board, may, by  order  entered,  require  the  attendance  of
 7    witnesses  and  the  production  of relevant books and papers
 8    before the Board in any hearing relative to  the  application
 9    for  or  refusal,  recall,  suspension,  or  revocation  of a
10    license, and the court or judge may compel obedience  to  the
11    court's or the judge's order by proceedings for contempt.
12        (i)  OBRE, at its expense, shall preserve a record of all
13    proceedings  at  the formal hearing of any case involving the
14    refusal to issue or  the  revocation,  suspension,  or  other
15    discipline  of  a licensee.  The notice of hearing, complaint
16    and all other  documents  in  the  nature  of  pleadings  and
17    written  motions  filed in the proceedings, the transcript of
18    testimony, the report of the Board, and the  orders  of  OBRE
19    shall  be  the  record  of the proceeding. At all hearings or
20    pre-hearing  conferences,  OBRE  and  the  accused  shall  be
21    entitled to have a court reporter in attendance for  purposes
22    of  transcribing  the proceeding or pre-hearing conference at
23    the expense of the  party  requesting  the  court  reporter's
24    attendance.  A  copy  of  the transcribed proceeding shall be
25    available to the other party for the cost of a  copy  of  the
26    transcript.
27        (j)  The  Board  shall  present  to  the Commissioner its
28    written report of its findings and recommendations.   A  copy
29    of  the  report  shall  be  served  upon  the accused, either
30    personally or by certified mail as provided in this  Act  for
31    the  service  of  the  citation.   Within  20  days after the
32    service, the accused may present to the Commissioner a motion
33    in writing for a rehearing that shall specify the  particular
34    grounds  therefor.   If the accused shall order and pay for a
 
HB0902 Engrossed            -62-              LRB9104235LDmbA
 1    transcript of the record as provided in this  Act,  the  time
 2    elapsing  thereafter  and  before the transcript is ready for
 3    delivery to the accused shall not be counted as part  of  the
 4    20   days.   Whenever  the  Commissioner  is  satisfied  that
 5    substantial justice has not been done, the  Commissioner  may
 6    order  a  rehearing  by  the Board or other special committee
 7    appointed by the Commissioner or may remand the matter to the
 8    Board for their reconsideration of the matter  based  on  the
 9    pleadings  and  evidence  presented  to  the  Board.   In all
10    instances, under this Act, in which the Board has rendered  a
11    recommendation   to   the  Commissioner  with  respect  to  a
12    particular licensee or applicant, the Commissioner shall,  in
13    the  event  that  he  or  she  disagrees with or takes action
14    contrary to the recommendation of the Board,  file  with  the
15    Board and the Secretary of State his specific written reasons
16    of  disagreement  with the Board.  The reasons shall be filed
17    within  60  days  of  the  Board's  recommendation   to   the
18    Commissioner  and  prior  to  any  contrary  action.   At the
19    expiration of the time specified for filing a  motion  for  a
20    rehearing,  the Commissioner shall have the right to take the
21    action recommended by the  Board.   Upon  the  suspension  or
22    revocation  of  a  license, the licensee shall be required to
23    surrender his or her license to OBRE,  and  upon  failure  or
24    refusal  to  do  so,  OBRE  shall have the right to seize the
25    license.
26        (k)  At any time after the suspension  or  revocation  of
27    any  license,  OBRE  may  restore  it  to the accused without
28    examination, upon the written recommendation of the Board.
29        (l)  An order of revocation or suspension or a  certified
30    copy  thereof,  over  the  seal  of OBRE and purporting to be
31    signed by the Commissioner, shall be prima facie proof that:
32             (1)  The signature is the genuine signature  of  the
33        Commissioner.
34             (2)  The   Commissioner   is   duly   appointed  and
 
HB0902 Engrossed            -63-              LRB9104235LDmbA
 1        qualified.
 2             (3)  The  Board  and   the   members   thereof   are
 3        qualified.
 4    Such proof may be rebutted.
 5        (m)  Notwithstanding   any   provisions   concerning  the
 6    conduct of  hearings  and  recommendations  for  disciplinary
 7    actions,  OBRE  as  directed  by  the  Commissioner  has  the
 8    authority   to   negotiate   agreements  with  licensees  and
 9    applicants resulting in disciplinary consent  orders.   These
10    consent orders may provide for any of the forms of discipline
11    provided  in  this  Act.   These consent orders shall provide
12    that they were not entered into as a result of  any  coercion
13    by  OBRE.   Any  such  consent  order shall be filed with the
14    Commissioner  along  with  the  Board's  recommendation   and
15    accepted  or  rejected  by the Commissioner within 60 days of
16    the Board's recommendation.

17        Section 20-65.  Temporary  suspension.  The  Commissioner
18    may  temporarily  suspend the license of a licensee without a
19    hearing, simultaneously with the institution  of  proceedings
20    for  a  hearing provided for in Section 20-60 of this Act, if
21    the Commissioner finds that the evidence indicates  that  the
22    public  interest,  safety,  or  welfare imperatively requires
23    emergency  action.   In  the  event  that  the   Commissioner
24    temporarily suspends the license without a hearing before the
25    Board,  a  hearing  shall  be  held  within 30 days after the
26    suspension has occurred.  The suspended licensee may  seek  a
27    continuance  of the hearing during which the suspension shall
28    remain in effect.  The proceeding shall be concluded  without
29    appreciable delay.

30        Section  20-70.   Restoration  of  license.   At any time
31    after the suspension, revocation, placement  on  probationary
32    status,  or  other  disciplinary  action taken under this Act
 
HB0902 Engrossed            -64-              LRB9104235LDmbA
 1    with reference to any license, OBRE may restore  the  license
 2    to   the  licensee  without  examination,  upon  the  written
 3    recommendation of the Board.

 4        Section 20-75.  Administrative Review Law;  certification
 5    fee;  summary report of final disciplinary actions. All final
 6    administrative decisions of OBRE shall be subject to judicial
 7    review pursuant  to  the  provisions  of  the  Administrative
 8    Review  Law and the rules adopted pursuant thereto.  The term
 9    "administrative decision" is defined in Section 3-101 of  the
10    Administrative  Review  Law.  OBRE  shall  not be required to
11    certify any record or file any  answer  or  otherwise  appear
12    unless  the  party  filing  the  complaint  pays  to OBRE the
13    certification fee provided for by rule representing costs  of
14    the  certification.   Failure on the part of the plaintiff to
15    make such a deposit shall be grounds  for  dismissal  of  the
16    action. OBRE shall prepare from time to time, but in no event
17    less  often  than once every other month, a summary report of
18    final disciplinary actions taken since the  previous  summary
19    report.  The summary report shall contain a brief description
20    of the action that brought about the discipline and the final
21    disciplinary  action taken.  The summary report shall be made
22    available upon request.

23        Section  20-80.   Penalties;   injunction.   Any   person
24    violating  any  provision  of this Act other than subdivision
25    (4) of subsection (h) of Section 20-20 and other than Section
26    5-15 or any person failing to account for  or  to  remit  any
27    moneys  coming  into  his  or  her  possession that belong to
28    others or commingling the money or other property of  his  or
29    her  principal  with  his or her own, upon conviction for the
30    first offense, is guilty of a Class C misdemeanor, and  if  a
31    limited   liability  company,  registered  limited  liability
32    partnership, or corporation, is guilty of a business  offense
 
HB0902 Engrossed            -65-              LRB9104235LDmbA
 1    and shall be fined not to exceed $2,000. Upon conviction of a
 2    second  or subsequent offense the violator, if an individual,
 3    is guilty  of  a  Class  A  misdemeanor,  and  if  a  limited
 4    liability  company, registered limited liability partnership,
 5    or corporation, is guilty of a business offense and shall  be
 6    fined  not less than $2,000 nor more than $5,000. Any person,
 7    limited  liability  company,  registered  limited   liability
 8    partnership,   or  corporation  violating  any  provision  of
 9    Section 5-15 of this  Act,  upon  conviction  for  the  first
10    offense,   if   an   individual,  is  guilty  of  a  Class  A
11    misdemeanor, and if a limited liability  company,  registered
12    limited liability partnership, or corporation, is guilty of a
13    business  offense  and  shall be fined not to exceed $10,000.
14    Upon  conviction  of  a  second  or  subsequent  offense  the
15    violator, if an individual, is guilty of a  Class  4  felony,
16    and  if  a  limited  liability  company,  registered  limited
17    liability   partnership,  or  corporation,  is  guilty  of  a
18    business offense and shall be fined not less than $10,000 nor
19    more than $25,000. Any officer or agent of a  corporation  or
20    member  or agent of a partnership, limited liability company,
21    or  registered  limited  liability  partnership   who   shall
22    personally participate in or be an accessory to any violation
23    of  this  Act  by the corporation, limited liability company,
24    registered  limited  liability  partnership,  or  partnership
25    shall be subject  to  the  penalties  herein  prescribed  for
26    individuals, and the State's Attorney of the county where the
27    offense  is  committed  shall prosecute all persons violating
28    the provisions of this Act upon proper complaint being  made.
29    All fines and penalties shall be deposited in the Real Estate
30    Recovery Fund in the State Treasury. OBRE shall have the duty
31    and  the  right  on  behalf  of  the  People  of the State of
32    Illinois to  originate  injunction  proceedings  against  any
33    person  acting  or  purporting to act as a licensee without a
34    license issued under the provisions of this Act.  OBRE  shall
 
HB0902 Engrossed            -66-              LRB9104235LDmbA
 1    also  have  the duty and the right on behalf of the People of
 2    the State of Illinois  to  originate  injunction  proceedings
 3    against  any  licensee  to  enjoin  acts by the licensee that
 4    constitute violations of this Act.

 5        Section 20-85.  Recovery from Real Estate Recovery  Fund.
 6    OBRE  shall  maintain  a Real Estate Recovery Fund from which
 7    any person aggrieved by an act, representation,  transaction,
 8    or conduct of a licensee or unlicensed employee of a licensee
 9    that  is  in  violation  of this Act or the rules promulgated
10    pursuant  thereto,  constitutes  embezzlement  of  money   or
11    property,  or  results  in money or property being unlawfully
12    obtained  from  any  person  by  false  pretenses,  artifice,
13    trickery,  or  forgery   or   by   reason   of   any   fraud,
14    misrepresentation,  discrimination,  or  deceit  by or on the
15    part of any such licensee or the  unlicensed  employee  of  a
16    licensee  and that results in a loss of actual cash money, as
17    opposed to losses in market value, may recover. The aggrieved
18    person may recover, by order of  the  circuit  court  of  the
19    county  where  the  violation occurred, an amount of not more
20    than $10,000 from the Fund for damages sustained by the  act,
21    representation,  transaction, or conduct, together with costs
22    of suit and attorney's fees incurred in connection  therewith
23    of  not  to  exceed 15% of the amount of the recovery ordered
24    paid  from  the  Fund.   However,  no  licensed   broker   or
25    salesperson  may recover from the Fund unless the court finds
26    that the person suffered a loss  resulting  from  intentional
27    misconduct.    The  court order shall not include interest on
28    the judgment. The maximum liability against the Fund  arising
29    out  of any one act shall be as provided in this Section, and
30    the judgment order shall spread the award equitably among all
31    co-owners or otherwise aggrieved persons, if any. The maximum
32    liability against the Fund arising out of the  activities  of
33    any  one  licensee  or one unlicensed employee of a licensee,
 
HB0902 Engrossed            -67-              LRB9104235LDmbA
 1    since January 1, 1974, shall  be  $50,000.  Nothing  in  this
 2    Section  shall  be  construed  to authorize recovery from the
 3    Fund unless the loss of the aggrieved person results from  an
 4    act  or  omission  of  a  licensed  broker,  salesperson,  or
 5    unlicensed  employee  who  was  at  the  time  of  the act or
 6    omission acting in such capacity or was apparently acting  in
 7    such  capacity and unless the aggrieved person has obtained a
 8    valid judgment as provided in Section 20-90 of this  Act.  No
 9    person  aggrieved  by  an act, representation, or transaction
10    that is in violation of the Illinois Real  Estate  Time-Share
11    Act  or  the  Land Sales Registration Act of 1989 may recover
12    from the Fund.

13        Section 20-90.   Collection  from  Real  Estate  Recovery
14    Fund; procedure.
15        (a)  No  action  for a judgment that subsequently results
16    in an order for collection from the Real Estate Recovery Fund
17    shall be started later than 2 years after the date  on  which
18    the  aggrieved  person knew, or through the use of reasonable
19    diligence should have known, of the acts or omissions  giving
20    rise  to  a  right  of recovery from the Real Estate Recovery
21    Fund.
22        (b)  When any aggrieved person  commences  action  for  a
23    judgment  that  may result in collection from the Real Estate
24    Recovery Fund, the aggrieved  person  must  name  as  parties
25    defendant  to  that action any and all individual real estate
26    brokers, real estate salespersons,  or  their  employees  who
27    allegedly  committed or are responsible for acts or omissions
28    giving rise to a right  of  recovery  from  the  Real  Estate
29    Recovery  Fund.   Failure  to  name as parties defendant such
30    individual brokers, salespersons, or  their  employees  shall
31    preclude  recovery  from the Real Estate Recovery Fund of any
32    portion of any judgment received  in  such  an  action.   The
33    aggrieved party may also name as additional parties defendant
 
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 1    any  corporations, limited liability companies, partnerships,
 2    registered limited liability partnership, or  other  business
 3    associations  that may be responsible for acts giving rise to
 4    a right of recovery from the Real Estate Recovery Fund.
 5        (c)  When any aggrieved person  commences  action  for  a
 6    judgment  that  may result in collection from the Real Estate
 7    Recovery Fund, the  aggrieved  person  must  notify  OBRE  in
 8    writing  to  this effect within 7 days of the commencement of
 9    the action.    Failure  to  so  notify  OBRE  shall  preclude
10    recovery from the Real Estate Recovery Fund of any portion of
11    any  judgment  received  in  such an action.  After receiving
12    notice of the commencement  of  such  an  action,  OBRE  upon
13    timely application shall be permitted to intervene as a party
14    defendant to that action.
15        (d)  When  any  aggrieved  person  commences action for a
16    judgment that may result in collection from the  Real  Estate
17    Recovery  Fund,  and the aggrieved person is unable to obtain
18    legal  and  proper  service  upon  the  defendant  under  the
19    provisions of Illinois law concerning service of  process  in
20    civil  actions,  the  aggrieved person may petition the court
21    where the action to obtain judgment was begun for an order to
22    allow service of legal process on the  Commissioner.  Service
23    of  process  on  the  Commissioner shall be taken and held in
24    that court to be as valid and binding as if due  service  had
25    been  made  upon the defendant. In case any process mentioned
26    in  this  Section  is  served  upon  the  Commissioner,   the
27    Commissioner shall forward a copy of the process by certified
28    mail  to the licensee's last address on record with OBRE. Any
29    judgment  obtained  after   service   of   process   on   the
30    Commissioner under this Act shall apply to and be enforceable
31    against   the  Real  Estate  Recovery  Fund  only.  OBRE  may
32    intervene in and defend any such action.
33        (e)  When an  aggrieved  party  commences  action  for  a
34    judgment  that  may result in collection from the Real Estate
 
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 1    Recovery Fund, and the court  before  which  that  action  is
 2    commenced  enters  judgment  by default against the defendant
 3    and in favor of the aggrieved party,  the  court  shall  upon
 4    motion  of  OBRE  set  aside that judgment by default.  After
 5    such a judgment by default has been  set  aside,  OBRE  shall
 6    appear  as party defendant to that action, and thereafter the
 7    court shall require proof of the allegations in the pleadings
 8    upon which relief is sought.
 9        (f)  The aggrieved person shall give  written  notice  to
10    OBRE  within  30  days  of the entry of any judgment that may
11    result in collection from the Real Estate Recovery Fund.  The
12    aggrieved  person  shall  provide  OBRE  within 20 days prior
13    written notice of all  supplementary  proceedings  so  as  to
14    allow  OBRE  to  participate in all efforts to collect on the
15    judgment.
16        (g)  When any aggrieved person recovers a valid  judgment
17    in  any  court of competent jurisdiction against any licensee
18    or an unlicensed employee of any broker, upon the grounds  of
19    fraud,  misrepresentation,  discrimination,  or  deceit,  the
20    aggrieved   person   may,   upon   the   termination  of  all
21    proceedings, including review and appeals in connection  with
22    the judgment, file a verified claim in the court in which the
23    judgment  was  entered  and,  upon 30 days' written notice to
24    OBRE, and  to  the  person  against  whom  the  judgment  was
25    obtained,  may  apply  to  the  court  for an order directing
26    payment out of the Real Estate Recovery Fund  of  the  amount
27    unpaid  upon  the  judgment,  not  including  interest on the
28    judgment, and subject to the limitations  stated  in  Section
29    20-85 of this Act.  The aggrieved person must set out in that
30    verified  claim  and  at an evidentiary hearing to be held by
31    the court upon the application the aggrieved party  shall  be
32    required to show that the aggrieved person:
33             (1)  Is  not  a spouse of the debtor or the personal
34        representative of such spouse.
 
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 1             (2)  Has complied with all the requirements of  this
 2        Section.
 3             (3)  Has  obtained  a  judgment  stating  the amount
 4        thereof and  the  amount  owing  thereon,  not  including
 5        interest thereon, at the date of the application.
 6             (4)  Has  made all reasonable searches and inquiries
 7        to ascertain whether the judgment debtor is possessed  of
 8        real  or  personal property or other assets, liable to be
 9        sold or applied in satisfaction of the judgment.
10             (5)  By such search has discovered  no  personal  or
11        real  property  or  other  assets  liable  to  be sold or
12        applied, or has discovered certain  of  them,  describing
13        them  as owned by the judgment debtor and liable to be so
14        applied  and  has  taken   all   necessary   action   and
15        proceedings  for  the realization thereof, and the amount
16        thereby  realized  was  insufficient   to   satisfy   the
17        judgment,  stating the amount so realized and the balance
18        remaining due on the judgment after  application  of  the
19        amount realized.
20             (6)  Has diligently pursued all remedies against all
21        the  judgment debtors and all other persons liable to the
22        aggrieved person in the transaction for which recovery is
23        sought from the Real Estate Recovery Fund, including  the
24        filing  of an adversary action to have the debts declared
25        non-dischargeable in any bankruptcy petition matter filed
26        by any judgment debtor or person liable to the  aggrieved
27        person.
28        The  aggrieved person shall also be required to prove the
29    amount of attorney's fees sought  to  be  recovered  and  the
30    reasonableness  of  those  fees  up  to  the  maximum allowed
31    pursuant to Section 20-85 of this Act.
32        (h)  The court shall  make  an  order  directed  to  OBRE
33    requiring  payment  from  the  Real  Estate  Recovery Fund of
34    whatever sum it finds to be payable upon the claim,  pursuant
 
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 1    to  and  in  accordance  with  the  limitations  contained in
 2    Section 20-85 of this Act, if the court  is  satisfied,  upon
 3    the hearing, of the truth of all matters required to be shown
 4    by  the aggrieved person under subsection (g) of this Section
 5    and that the aggrieved person has fully pursued and exhausted
 6    all remedies available for recovering the amount  awarded  by
 7    the judgment of the court.
 8        (i)  Should  OBRE  pay from the Real Estate Recovery Fund
 9    any amount in settlement of a claim or toward satisfaction of
10    a judgment against a licensed broker  or  salesperson  or  an
11    unlicensed employee of a broker, the licensee's license shall
12    be  automatically  terminated  upon  the  issuance of a court
13    order authorizing payment from the Real Estate Recovery Fund.
14    No petition for restoration of a license shall be heard until
15    repayment has been made in full, plus interest  at  the  rate
16    prescribed  in  Section 12-109 of the Code of Civil Procedure
17    of the amount paid from the  Real  Estate  Recovery  Fund  on
18    their  account. A discharge in bankruptcy shall not relieve a
19    person from the penalties and disabilities provided  in  this
20    subsection (i).
21        (j)  If,  at  any  time,  the money deposited in the Real
22    Estate Recovery Fund is  insufficient  to  satisfy  any  duly
23    authorized   claim  or  portion  thereof,  OBRE  shall,  when
24    sufficient money  has  been  deposited  in  the  Real  Estate
25    Recovery   Fund,  satisfy  such  unpaid  claims  or  portions
26    thereof, in the order that such claims  or  portions  thereof
27    were  originally filed, plus accumulated interest at the rate
28    prescribed in Section 12-109 of the Code of Civil Procedure.

29        Section 20-95.   Power  of  OBRE  to  defend.  When  OBRE
30    receives  any  process,  notice,  order,  or  other  document
31    provided  for or required under Section 20-90 of this Act, it
32    may enter an appearance, file an answer, appear at the  court
33    hearing,  defend the action, or take whatever other action it
 
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 1    deems appropriate on behalf and in the name of the  defendant
 2    and take recourse through any appropriate method of review on
 3    behalf of and in the name of the defendant.

 4        Section   20-100.   Subrogation  of  OBRE  to  rights  of
 5    judgment creditor. When, upon the order of  the  court,  OBRE
 6    has  paid  from  the Real Estate Recovery Fund any sum to the
 7    judgment creditor, OBRE shall be subrogated  to  all  of  the
 8    rights  of  the  judgment  creditor and the judgment creditor
 9    shall assign all rights, title, and interest in the  judgment
10    to  OBRE  and any amount and interest so recovered by OBRE on
11    the judgment shall be deposited in the Real  Estate  Recovery
12    Fund.

13        Section  20-105.  Waiver of rights for failure to comply.
14    The failure of an aggrieved person to comply  with  this  Act
15    relating  to the Real Estate Recovery Fund shall constitute a
16    waiver of any rights under Sections 20-85 and 20-90  of  this
17    Act.

18        Section   20-110.    Disciplinary  actions  of  OBRE  not
19    limited. Nothing contained in Sections 20-80  through  20-100
20    of this Act limits the authority of OBRE to take disciplinary
21    action  against  any  licensee for a violation of this Act or
22    the rules of OBRE, nor shall the repayment  in  full  of  all
23    obligations  to the Real Estate Recovery Fund by any licensee
24    nullify or  modify  the  effect  of  any  other  disciplinary
25    proceeding brought pursuant to this Act.

26        Section  20-115.   Time limit on action. No action may be
27    taken by OBRE against any person for violation of  the  terms
28    of  this  Act  or  its  rules  unless the action is commenced
29    within 5 years after the occurrence of the alleged violation.
 
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 1        Section 20-120.  Action to enjoin. Engaging  in  business
 2    as  a  licensee  by  any  person  in violation of this Act is
 3    declared to be harmful to the public  welfare  and  to  be  a
 4    public  nuisance.   An  action to enjoin any person from such
 5    unlawful activity may be maintained in the name of the People
 6    of the State of Illinois by  the  Attorney  General,  by  the
 7    State's  Attorney  of  the  county  in  which  the  action is
 8    brought, by OBRE, or by any resident  citizen.   This  remedy
 9    shall be in addition to other remedies provided for violation
10    of this Act.

11        Section  20-125.   No  private right of action. Except as
12    otherwise expressly provided for in this Act, nothing in this
13    Act shall be construed to grant to any person a private right
14    of action for damages or to enforce the  provisions  of  this
15    Act or the rules issued under this Act.

16               ARTICLE 25.  ADMINISTRATION OF LICENSES

17        Section  25-5.   OBRE;  powers  and  duties.  OBRE  shall
18    exercise  the  powers  and  duties  prescribed  by  the Civil
19    Administrative Code of Illinois  for  the  administration  of
20    licensing  acts  and  shall  exercise  such  other powers and
21    duties as are prescribed by this Act.  OBRE may contract with
22    third  parties  for  services  necessary   for   the   proper
23    administration of this Act.

24        Section    25-10.    Real   Estate   Administration   and
25    Disciplinary Board; duties. There is created the Real  Estate
26    Administration  and  Disciplinary  Board.  The Board shall be
27    composed of 9 persons  appointed  by  the  Governor.  Members
28    shall  be  appointed  to  the  Board subject to the following
29    conditions:
30             (1)  All  members  shall  have  been  residents  and
 
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 1        citizens of this State for at least 6 years prior to  the
 2        date of appointment.
 3             (2)  Six members shall have been actively engaged as
 4        brokers or salespersons or both for at least the 10 years
 5        prior to the appointment.
 6             (3)  Three  members  of  the  Board  shall be public
 7        members who represent consumer interests.
 8        None of these members shall be a person who  is  licensed
 9    under  this  Act,  the spouse of a person licensed under this
10    Act, or a person who has an  ownership  interest  in  a  real
11    estate  brokerage  business.  The  members'  terms shall be 4
12    years and the expiration of their terms shall  be  staggered.
13    Appointments  to  fill  vacancies  shall be for the unexpired
14    portion  of  the  term.  A  member  may  be  reappointed  for
15    successive terms but no person shall  be  appointed  to  more
16    than  2  terms  or  any  part thereof in his or her lifetime.
17    Persons holding office as members of  the  Board  immediately
18    prior  to December 31, 1999 under the Real Estate License Act
19    of 1983 shall continue as members  of  the  Board  until  the
20    expiration  of  the  term  for  which they were appointed and
21    until their  successors  are  appointed  and  qualified.  The
22    membership   of  the  Board  should  reasonably  reflect  the
23    geographic distribution of the licensee  population  in  this
24    State.   In  making the appointments, the Governor shall give
25    due consideration  to  the  recommendations  by  members  and
26    organizations  of  the profession. The Governor may terminate
27    the appointment of any member for cause that in  the  opinion
28    of  the  Governor reasonably justifies the termination. Cause
29    for termination shall include without limitation  misconduct,
30    incapacity,  neglect  of  duty,  or  missing 4 board meetings
31    during any one calendar year. Each member of the Board  shall
32    receive  a  per diem stipend in an amount to be determined by
33    the Commissioner.  Each member  shall  be  paid  his  or  her
34    necessary expenses while engaged in the performance of his or
 
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 1    her duties.  Such compensation and expenses shall be paid out
 2    of   the   Real   Estate  License  Administration  Fund.  The
 3    Commissioner shall consider the recommendations of the  Board
 4    on  questions  involving  standards  of professional conduct,
 5    discipline, and examination of  candidates  under  this  Act.
 6    OBRE,  after notifying and considering the recommendations of
 7    the Board, if any,  may  issue  rules,  consistent  with  the
 8    provisions   of   this   Act,   for  the  administration  and
 9    enforcement thereof and may prescribe  forms  that  shall  be
10    used  in connection therewith. None of the functions, powers,
11    or  duties  enumerated  in  Sections  20-20  and   30-5   and
12    subsections (a) and (j) of Section 20-60 of this Act shall be
13    exercised  by  OBRE  except  upon  the  action  and report in
14    writing of the Board.

15        Section  25-13.   Rules.  OBRE,   after   notifying   and
16    considering  the  recommendations of the Board, if any, shall
17    adopt, promulgate, and issue any rules that may be  necessary
18    for the implementation and enforcement of this Act.

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

21        Section 25-20.  Staff. OBRE shall employ sufficient staff
22    to carry out the provisions of this Act.

23        Section  25-25.  Real Estate Research and Education Fund.
24    A special fund to be known as the Real  Estate  Research  and
25    Education  Fund  is created and shall be held in trust in the
26    State Treasury.   Annually,  on  September  15th,  the  State
27    Treasurer  shall  cause  a  transfer  of $125,000 to the Real
28    Estate Research and  Education  Fund  from  the  Real  Estate
29    License  Administration  Fund.   The Real Estate Research and
30    Education  Fund  shall  be  administered  by   OBRE.    Money
31    deposited  in the Real Estate Research and Education Fund may
32    be used for research and education at state  institutions  of
 
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 1    higher  education or other organizations for research and the
 2    advancement of education in the real estate industry. Of  the
 3    $125,000  annually  transferred into the Real Estate Research
 4    and  Education  Fund,  $15,000  shall  be  used  to  fund   a
 5    scholarship program for persons of minority racial origin who
 6    wish to pursue a course of study in the field of real estate.
 7    For  the  purposes of this Section, "course of study" means a
 8    course or courses that are part of a program  of  courses  in
 9    the  field of real estate designed to further an individual's
10    knowledge or expertise in the field  of  real  estate.  These
11    courses  shall  include  without  limitation  courses  that a
12    salesperson licensed under this Act must complete to  qualify
13    for  a  real  estate  broker's  license,  courses required to
14    obtain the Graduate Realtors Institute designation,  and  any
15    other  courses  or  programs  offered by accredited colleges,
16    universities, or other institutions of  higher  education  in
17    Illinois.   The  scholarship program shall be administered by
18    OBRE or its designee. Moneys in the Real Estate Research  and
19    Education  Fund  may  be  invested and reinvested in the same
20    manner as funds in the Real  Estate  Recovery  Fund  and  all
21    earnings,   interest,   and   dividends  received  from  such
22    investments shall be deposited in the  Real  Estate  Research
23    and  Education  Fund and may be used for the same purposes as
24    moneys transferred to the Real Estate Research and  Education
25    Fund.

26        Section  25-30.  Real Estate License Administration Fund;
27    audit. A special fund to be known as the Real Estate  License
28    Administration  Fund  is  created in the State Treasury.  All
29    fees received by OBRE under this Act shall  be  deposited  in
30    the  Real  Estate  License  Administration  Fund.  The moneys
31    deposited in the  Real  Estate  License  Administration  Fund
32    shall  be  appropriated  to OBRE for expenses of OBRE and the
33    Board  in  the  administration  of  this  Act  and  for   the
 
HB0902 Engrossed            -78-              LRB9104235LDmbA
 1    administration  of  any  Act  administered  by OBRE providing
 2    revenue to this Fund.  Moneys  in  the  Real  Estate  License
 3    Administration  Fund  may  be  invested and reinvested in the
 4    same manner as funds in the Real Estate Recovery  Fund.   All
 5    earnings  received from such investment shall be deposited in
 6    the Real Estate License Administration Fund and may  be  used
 7    for  the  same  purposes as fees deposited in the Real Estate
 8    License Administration Fund. Upon the completion of any audit
 9    of OBRE, as prescribed by the Illinois  State  Auditing  Act,
10    which   includes   an   audit  of  the  Real  Estate  License
11    Administration Fund,  OBRE  shall  make  the  audit  open  to
12    inspection by any interested person.

13        Section 25-35.  Real Estate Recovery Fund. A special fund
14    to  be  known  as the Real Estate Recovery Fund is created in
15    the State Treasury.  The sums received by  OBRE  pursuant  to
16    the  provisions  of  Sections 20-20, 20-30, and 20-80 through
17    20-100 of this Act shall be deposited into the State Treasury
18    and held in the Real Estate Recovery Fund.  The money in  the
19    Real  Estate  Recovery Fund shall be used by OBRE exclusively
20    for carrying out the purposes established by this  Act.   If,
21    at  any  time,  the  balance  remaining  in  the  Real Estate
22    Recovery Fund is less  than  $750,000,  the  State  Treasurer
23    shall  cause a transfer of moneys to the Real Estate Recovery
24    Fund from the Real Estate License Administration Fund  in  an
25    amount  necessary  to  establish a balance of $800,000 in the
26    Real Estate Recovery Fund.  These funds may be  invested  and
27    reinvested in the same manner as authorized for pension funds
28    in  Article  14  of the Illinois Pension Code.  All earnings,
29    interest, and dividends received from investment of funds  in
30    the  Real  Estate  Recovery  Fund shall be deposited into the
31    Real Estate License Administration Fund and shall be used for
32    the same purposes as  other  moneys  deposited  in  the  Real
33    Estate License Administration Fund.
 
HB0902 Engrossed            -79-              LRB9104235LDmbA
 1        Section  25-40.   Exclusive  State  powers and functions;
 2    municipal powers. It is declared to be the public  policy  of
 3    this  State,  pursuant to paragraphs (h) and (i) of Section 6
 4    of Article VII of the Illinois Constitution of 1970, that any
 5    power or function set forth in this Act to  be  exercised  by
 6    the  State  is  an  exclusive  State power or function.  Such
 7    power or function shall not be exercised concurrently, either
 8    directly or indirectly, by  any  unit  of  local  government,
 9    including  home  rule  units, except as otherwise provided in
10    this Act. Nothing in  this  Section  shall  be  construed  to
11    affect  or  impair  the  validity of Section 11-11.1-1 of the
12    Illinois Municipal Code,  as  amended,  or  to  deny  to  the
13    corporate  authorities of any municipality the powers granted
14    in  the  Illinois  Municipal   Code   to   enact   ordinances
15    prescribing  fair  housing practices; defining unfair housing
16    practices;  establishing  Fair  Housing  or  Human  Relations
17    Commissions  and  standards  for  the  operation   of   these
18    commissions  in  the  administration  and enforcement of such
19    ordinances; prohibiting discrimination based on race,  color,
20    creed,  ancestry,  national  origin  or  physical  or  mental
21    handicap   in   the   listing,  sale,  assignment,  exchange,
22    transfer, lease, rental, or financing of  real  property  for
23    the   purpose  of  the  residential  occupancy  thereof;  and
24    prescribing penalties for violations of such ordinances.

25                ARTICLE 30.  SCHOOLS AND INSTRUCTORS

26        Section 30-5.  Licensing of pre-license  schools,  school
27    branches, and instructors.
28        (a)  No  person  shall  operate  a  pre-license school or
29    school branch without possessing a valid  pre-license  school
30    or school branch license issued by OBRE.  No person shall act
31    as a pre-license instructor at a pre-license school or school
32    branch  without  possessing  a  valid  pre-license instructor
 
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 1    license issued by OBRE.  Every person who desires to obtain a
 2    pre-license school, school branch, or pre-license  instructor
 3    license shall make application to OBRE in writing in form and
 4    substance  satisfactory  to  OBRE  and  pay the required fees
 5    prescribed by rule.  In addition  to  any  other  information
 6    required   to   be   contained   in  the  application,  every
 7    application for an original or renewed license shall  include
 8    the  applicant's  Social Security number.  OBRE shall issue a
 9    pre-license school, school branch, or pre-license  instructor
10    license   to   applicants  who  meet  qualification  criteria
11    established by rule.  OBRE  may  refuse  to  issue,  suspend,
12    revoke,  or otherwise discipline a pre-license school, school
13    branch, or pre-license instructor  license  or  may  withdraw
14    approval of a course offered by a pre-license school for good
15    cause.    Disciplinary  proceedings shall be conducted by the
16    Board in the same manner as  other  disciplinary  proceedings
17    under this Act.
18        (b)  All  pre-license instructors must teach at least one
19    course within the period of licensure or take  an  instructor
20    training  program  approved  by  OBRE  in  lieu  thereof.   A
21    pre-license  instructor  may  teach at more than one licensed
22    pre-license school.
23        (c)  The  term  of  license  for   pre-license   schools,
24    branches,  and instructors shall be 2 years as established by
25    rule.
26        (d)  OBRE or the  Advisory  Council  may,  after  notice,
27    cause  a  pre-license school to attend an informal conference
28    before the Advisory Council for failure to  comply  with  any
29    requirement  for  licensure or for failure to comply with any
30    provision of this Act or the rules for the administration  of
31    this  Act.   The Advisory Council shall make a recommendation
32    to the Board as a result of its findings at the conclusion of
33    any such informal conference.
 
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 1        Section 30-10.   Advisory  Council;  powers  and  duties.
 2    There  is  created  within  OBRE  an  Advisory  Council to be
 3    comprised of 7 members appointed by the Governor  for  4-year
 4    staggered  terms.  No member shall serve more than 8 years in
 5    a lifetime.  Three of the members shall be licensees who  are
 6    current   members  of  the  Board,  one  member  shall  be  a
 7    representative of an Illinois real estate trade  organization
 8    who  is  not  a  member  of  the Board, one member shall be a
 9    representative of a licensed pre-license school or continuing
10    education school, and one member shall be a representative of
11    an institution of higher education  that  offers  pre-license
12    and  continuing  education courses.  The Director shall serve
13    as the chairman of the Advisory Council, ex officio,  without
14    vote.  The  Advisory Council shall recommend criteria for the
15    licensing of pre-license  schools,  pre-license  instructors,
16    continuing   education   schools,  and  continuing  education
17    instructors;  review  applications  for  these  licenses   to
18    determine  if  the  applicants  meet  the  qualifications for
19    licensure established  in  this  Act  and  by  rule;  approve
20    pre-license  school  and  continuing education curricula; and
21    make recommendations to  the  Board  regarding  rules  to  be
22    adopted for the administration of the education provisions of
23    this Act.

24        Section   30-15.    Licensing   of  continuing  education
25    schools; approval of courses.
26        (a)  Only continuing education schools in possession of a
27    valid continuing education school license  may  provide  real
28    estate  continuing  education  courses  that will satisfy the
29    requirements of this Act.  Pre-license  schools  licensed  to
30    offer  pre-license  education  courses  for  salespersons and
31    brokers shall  qualify  for  a  continuing  education  school
32    license  upon completion of an application and the submission
33    of the required fee.  Every entity that desires to  obtain  a
 
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 1    continuing education school license shall make application to
 2    OBRE  in  writing in forms prescribed by OBRE and pay the fee
 3    prescribed by rule.  In addition  to  any  other  information
 4    required   to   be   contained   in  the  application,  every
 5    application for an original or renewed license shall  include
 6    the applicant's Social Security number.
 7        (b)  The  criteria  for  a  continuing  education license
 8    shall include the following:
 9             (1)  A  sound  financial  base   for   establishing,
10        promoting,  and delivering the necessary courses.  Budget
11        planning for  the  School's  courses  should  be  clearly
12        projected.
13             (2)  A  sufficient  number  of  qualified,  licensed
14        instructors as provided by rule.
15             (3)  Adequate   support  personnel  to  assist  with
16        administrative matters and technical assistance.
17             (4)  Maintenance  and  availability  of  records  of
18        participation for licensees.
19             (5)  The ability to  provide  each  participant  who
20        successfully   completes   an  approved  program  with  a
21        certificate of completion signed by the administrator  of
22        a  licensed continuing education school on forms provided
23        by OBRE.
24             (6)  The continuing education  school  must  have  a
25        written policy dealing with procedures for the management
26        of grievances and fee refunds.
27             (7)  The  continuing education school shall maintain
28        lesson plans and examinations for each course.
29             (8)  The continuing education school shall require a
30        70%  passing  grade  for  successful  completion  of  any
31        continuing education course.
32             (9)  The continuing education school shall  identify
33        and  use instructors who will teach in a planned program.
34        Suggested criteria for instructor selections include:
 
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 1                  (A)  appropriate credentials;
 2                  (B)  competence as a teacher;
 3                  (C)  knowledge of content area; and
 4                  (D)  qualification by experience.
 5        (c)  Advertising and promotion  of  continuing  education
 6    activities  must  be  carried  out  in a responsible fashion,
 7    clearly showing the educational objectives of  the  activity,
 8    the  nature  of  the  audience  that  may  benefit  from  the
 9    activity, the cost of the activity to the participant and the
10    items  covered  by the cost, the amount of credit that can be
11    earned, and the credentials of the faculty.
12        (d)  OBRE may or upon request  of  the  Advisory  Council
13    shall,  after  notice, cause a continuing education school to
14    attend an informal conference before the Advisory Council for
15    failure to comply with any requirement for licensure  or  for
16    failure to comply with any provision of this Act or the rules
17    for  the  administration  of  this Act.  The Advisory Council
18    shall make a recommendation to the Board as a result  of  its
19    findings at the conclusion of any such informal conference.
20        (e)  All  continuing  education  schools  shall  maintain
21    these  minimum  criteria and pay the required fee in order to
22    retain their continuing education school license.
23        (f)  All continuing education schools  shall  submit,  at
24    the  time  of  initial  application  and  with  each  license
25    renewal,  a  list  of  courses  with  course  materials to be
26    offered by the continuing education school.   OBRE,  however,
27    shall  establish  a  mechanism  whereby  continuing education
28    schools may apply for  and  obtain  approval  for  continuing
29    education  courses  that  are  submitted  after  the  time of
30    initial application or renewal.  OBRE shall provide  to  each
31    continuing  education  school a certificate for each approved
32    continuing  education  course.   All   continuing   education
33    courses  shall  be  valid  for the period coinciding with the
34    term of license of  the  continuing  education  school.   All
 
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 1    continuing  education  schools  shall  provide  a copy of the
 2    certificate of the continuing  education  course  within  the
 3    course  materials  given  to  each student or shall display a
 4    copy of the certificate of the continuing education course in
 5    a conspicuous place at the location of the class.
 6        (g)  Each continuing education school  shall  provide  to
 7    OBRE  a  monthly  report in a format determined by OBRE, with
 8    information concerning students  who  successfully  completed
 9    all  approved  continuing  education  courses  offered by the
10    continuing education school for the prior month.
11        (h)  OBRE,  upon  the  recommendation  of  the   Advisory
12    Council,   may  temporarily  suspend  a  licensed  continuing
13    education  school's  approved  courses  without  hearing  and
14    refuse to accept successful completion of or participation in
15    any of these  continuing  education  courses  for  continuing
16    education  credit  from  that school upon the failure of that
17    continuing education school to comply with the provisions  of
18    this  Act  or  the  rules for the administration of this Act,
19    until such time as OBRE receives  satisfactory  assurance  of
20    compliance.   OBRE  shall  notify  the  continuing  education
21    school  of  the  noncompliance  and may initiate disciplinary
22    proceedings pursuant to this Act. OBRE may refuse  to  issue,
23    suspend,  revoke,  or  otherwise  discipline the license of a
24    continuing education school or may  withdraw  approval  of  a
25    continuing  education  course  for  good  cause.   Failure to
26    comply with the requirements of this  Section  or  any  other
27    requirements  established  by rule shall be deemed to be good
28    cause.  Disciplinary proceedings shall be  conducted  by  the
29    Board  in  the  same manner as other disciplinary proceedings
30    under this Act.

31        Section 30-20.   Fees  for  continuing  education  school
32    license;  renewal;  term.  All  applications for a continuing
33    education  school  license  shall   be   accompanied   by   a
 
HB0902 Engrossed            -85-              LRB9104235LDmbA
 1    nonrefundable  application  fee  in  an amount established by
 2    rule. All continuing education schools shall be  required  to
 3    submit a renewal application, the required fee as established
 4    by  rule,  and  a listing of the courses to be offered during
 5    the year to renew their continuing education school licenses.
 6    The term for a continuing education school license shall be 2
 7    years and as established by rule. The  fees  collected  under
 8    this Article 30 shall be deposited in the Real Estate License
 9    Administration  Fund  and shall be used to defray the cost of
10    administration of the program and per diem  of  the  Advisory
11    Council as determined by the Commissioner.

12        Section   30-25.    Licensing   of  continuing  education
13    instructors.
14        (a)  Only persons approved by the Advisory Council and in
15    possession of a valid continuing education instructor license
16    issued by OBRE may instruct continuing education courses.
17        (b)  Every person who  desires  to  obtain  a  continuing
18    education  instructor  license shall make application to OBRE
19    in writing on forms prescribed by the Office, accompanied  by
20    the  fee  prescribed  by  rule.   In  addition  to  any other
21    information required to  be  contained  in  the  application,
22    every  application  for  an original or renewed license shall
23    include the applicant's Social Security number.   OBRE  shall
24    issue a continuing education instructor license to applicants
25    who  meet  qualification  criteria established by this Act or
26    rule.
27        (c)  OBRE  may  refuse  to  issue,  suspend,  revoke,  or
28    otherwise discipline a continuing  education  instructor  for
29    good  cause.   Disciplinary proceedings shall be conducted by
30    the  Board  in  the  same  manner   as   other   disciplinary
31    proceedings  under  this  Act.   The  term of a license for a
32    continuing education instructor  shall  be  2  years  and  as
33    established  by  rule.   All Continuing Education Instructors
 
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 1    must teach at least one course within the period of licensure
 2    or take an instructor training program approved  by  OBRE  in
 3    lieu thereof.

 4        Section  30-30.   Recommendation  of  rules. The Advisory
 5    Council shall recommend to the Board rules that  provide  for
 6    the  administration  of  this  Article 30.  These rules shall
 7    include without limitation the following provisions:
 8             (1)  The  rules  shall  define  what  constitutes  a
 9        school or a  school  branch  offering  work  in  subjects
10        relating  to  real estate transactions that shall include
11        the subjects upon  which  an  applicant  is  examined  in
12        determining  fitness  to  receive  a  license.  The rules
13        shall provide for the  establishment  of  a  uniform  and
14        reasonable  standard of instruction and maintenance to be
15        observed by these schools.
16             (2)  The rules shall establish minimum  criteria  to
17        qualify  for  and  maintain  a  license  as a pre-license
18        school,   pre-license   school   instructor,   continuing
19        education school, and continuing education instructor.
20             (3)  The rules shall provide for acts and  omissions
21        for   which   the   license   of  a  pre-license  school,
22        pre-license  school  instructor,   continuing   education
23        school,   or   continuing  education  instructor  may  be
24        disciplined under this Act.
25             (4)  The rules shall provide for the term,  date  of
26        expiration,  and  renewal  process  for  the  licenses of
27        pre-license  schools,  pre-license  school   instructors,
28        continuing  education  schools,  and continuing education
29        school instructors.

30                    ARTICLE 35.  TRANSITION RULES

31        Section 35-5.  Savings provisions.
 
HB0902 Engrossed            -87-              LRB9104235LDmbA
 1        (a)  This Act is intended  to  replace  the  Real  Estate
 2    License Act of 1983 in all respects.
 3        (b)  Beginning December 31, 1999, the rights, powers, and
 4    duties exercised by the Office of Banks and Real Estate under
 5    the  Real  Estate  License  Act  of 1983 shall continue to be
 6    vested in, be the obligation of, and shall  be  exercised  by
 7    the  Office  of Banks and Real Estate under the provisions of
 8    this Act.
 9        (c)  This Act does not affect any act done, ratified,  or
10    cancelled,  or  any  right  occurring  or established, or any
11    action or proceeding had or commenced in  an  administrative,
12    civil,  or  criminal  cause  before December 31, 1999, by the
13    Office of Banks and Real Estate under the Real Estate License
14    Act  of  1983,  and  those  actions  or  proceedings  may  be
15    prosecuted and continued by the  Office  of  Banks  and  Real
16    Estate under this Act.
17        (d)  This  Act  does not affect any license, certificate,
18    permit, or other form of licensure or authorization issued by
19    the Office of Banks and Real Estate  under  the  Real  Estate
20    License  Act  of  1983,  and all such licenses, certificates,
21    permits, or other form of licensure  or  authorization  shall
22    continue  to  be valid under the terms and conditions of this
23    Act.
24        (e)  The rules adopted by the Office of  Banks  and  Real
25    Estate  relating  to  the  Real  Estate  License Act of 1983,
26    unless inconsistent with the provisions of this Act, are  not
27    affected  by  this  Act, and on December 31, 1999 those rules
28    become the rules under this Act.  The  Office  of  Banks  and
29    Real  Estate  shall,  as  soon  as  practicable, adopt new or
30    amended rules consistent with the provisions of this Act.
31        (f)  This Act does not affect any discipline, suspension,
32    or termination taken under the Real  Estate  License  Act  of
33    1983 and that discipline, suspension, or termination shall be
34    continued under this Act.
 
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 1        (g)  This  Act  does  not  affect  any appointments, term
 2    limitations, years  served,  or  other  matters  relating  to
 3    individuals  serving  on  any board or council under the Real
 4    Estate License Act of  1983,  and  these  appointments,  term
 5    limitations,   years  served,  and  other  matters  shall  be
 6    continued under this Act.

 7        Section 35-10.  Money in Funds.  Transfer of  moneys  and
 8    appropriations  moneys  held in or appropriations to the Real
 9    Estate License  Administration  Fund,  Real  Estate  Recovery
10    Fund,  or  Real  Estate  Research  and Education Fund for the
11    purpose  of  administering  and  enforcing  the  Real  Estate
12    License Act of 1983 shall be transferred to and held in those
13    same funds for the purpose of administering and enforcing the
14    provisions of this Act.

15                 ARTICLE 905.  AMENDATORY PROVISIONS

16        Section 905-5.   The  Regulatory  Agency  Sunset  Act  is
17    amended  by  changing Section 4.10 and adding Section 4.20 as
18    follows:

19        (5 ILCS 80/4.10) (from Ch. 127, par. 1904.10)
20        Sec. 4.10.  The following Acts are repealed December  31,
21    1999:
22        The  Fire  Equipment  Distributor and Employee Regulation
23    Act.
24        The Professional Engineering Practice Act of 1989.
25        The Structural Engineering Licensing Act of 1989.
26        The Illinois Architecture Practice Act of 1989.
27        The Illinois Landscape Architecture Act of 1989.
28        The Illinois Professional Land Surveyor Act of 1989.
29        The Land Sales Registration Act of 1989.
30        The Real Estate License Act of 1983.
 
HB0902 Engrossed            -89-              LRB9104235LDmbA
 1    (Source: P.A. 86-667; 86-702; 86-711; 86-925; 86-932; 86-987;
 2    86-1007; 86-1028.)

 3        (5 ILCS 80/4.20 new)
 4        Sec. 4.20.  Act  repealed  on  December  31,  2009.   The
 5    following Act is repealed on December 31, 2009:
 6        The Real Estate License Act of 2000.

 7        Section   905-10.    The  Civil  Administrative  Code  of
 8    Illinois is amended by changing Section 60 as follows:

 9        (20 ILCS 2105/60) (from Ch. 127, par. 60)
10        Sec.  60.  Powers  and   duties.    The   Department   of
11    Professional Regulation shall have, subject to the provisions
12    of this Act, the following powers and duties:
13        1.  To authorize examinations in English to ascertain the
14    qualifications  and  fitness  of  applicants  to exercise the
15    profession, trade, or occupation for which the examination is
16    held.
17        2.  To prescribe rules and regulations  for  a  fair  and
18    wholly  impartial  method  of  examination  of  candidates to
19    exercise the respective professions, trades, or occupations.
20        3.  To pass upon the  qualifications  of  applicants  for
21    licenses,   certificates,   and   authorities,   whether   by
22    examination, by reciprocity, or by endorsement.
23        4.  To  prescribe rules and regulations defining, for the
24    respective professions, trades, and occupations,  what  shall
25    constitute a school, college, or university, or department of
26    a  university,  or  other institutions, reputable and in good
27    standing and to determine the reputability and good  standing
28    of  a  school,  college,  or  university,  or department of a
29    university, or  other  institution,  reputable  and  in  good
30    standing  by  reference  to  a compliance with such rules and
31    regulations:  provided,   that   no   school,   college,   or
 
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 1    university,   or   department   of   a  university  or  other
 2    institution that refuses admittance to applicants  solely  on
 3    account  of race, color, creed, sex, or national origin shall
 4    be considered reputable and in good standing.
 5        5.  To  conduct  hearings  on  proceedings   to   revoke,
 6    suspend,  refuse  to  renew, place on probationary status, or
 7    take other disciplinary action as may be  authorized  in  any
 8    licensing  Act  administered by the Department with regard to
 9    licenses, certificates, or authorities of persons  exercising
10    the  respective  professions,  trades, or occupations, and to
11    revoke, suspend,  refuse  to  renew,  place  on  probationary
12    status,   or   take  other  disciplinary  action  as  may  be
13    authorized  in  any  licensing  Act   administered   by   the
14    Department  with  regard  to  such licenses, certificates, or
15    authorities.   The   Department   shall   issue   a   monthly
16    disciplinary  report.   The Department shall deny any license
17    or renewal authorized by this  Act  to  any  person  who  has
18    defaulted  on  an educational loan or scholarship provided by
19    or guaranteed by the Illinois Student  Assistance  Commission
20    or  any  governmental  agency  of  this  State;  however, the
21    Department  may  issue  a   license   or   renewal   if   the
22    aforementioned   persons   have  established  a  satisfactory
23    repayment  record  as  determined  by  the  Illinois  Student
24    Assistance  Commission  or  other  appropriate   governmental
25    agency  of this State.  Additionally, beginning June 1, 1996,
26    any license issued by the  Department  may  be  suspended  or
27    revoked  if  the  Department,  after  the  opportunity  for a
28    hearing under the appropriate licensing Act, finds  that  the
29    licensee  has  failed  to  make satisfactory repayment to the
30    Illinois Student Assistance Commission for  a  delinquent  or
31    defaulted   loan.   For   the   purposes   of  this  Section,
32    "satisfactory repayment record" shall be defined by rule. The
33    Department shall refuse to issue or renew a  license  to,  or
34    shall  suspend  or revoke a license of, any person who, after
 
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 1    receiving notice, fails to comply with a subpoena or  warrant
 2    relating   to   a  paternity  or  child  support  proceeding.
 3    However, the Department may issue a license or  renewal  upon
 4    compliance with the subpoena or warrant.
 5        The  Department,  without  further  process  or hearings,
 6    shall  revoke,  suspend,  or  deny  any  license  or  renewal
 7    authorized by this Act to a person who is  certified  by  the
 8    Illinois  Department of Public Aid as being more than 30 days
 9    delinquent in complying  with  a  child  support  order;  the
10    Department  may,  however,  issue a license or renewal if the
11    person has established a  satisfactory  repayment  record  as
12    determined  by  the  Illinois  Department of Public Aid.  The
13    Department may implement this paragraph as  added  by  Public
14    Act  89-6  through  the  use of emergency rules in accordance
15    with Section 5-45 of the  Illinois  Administrative  Procedure
16    Act.   For  purposes of the Illinois Administrative Procedure
17    Act, the adoption of rules to implement this paragraph  shall
18    be  considered  an  emergency  and  necessary  for the public
19    interest, safety, and welfare.
20        6.  To transfer jurisdiction  of  any  realty  under  the
21    control  of  the  Department  to  any other Department of the
22    State Government, or to acquire or accept Federal lands, when
23    such transfer, acquisition or acceptance is  advantageous  to
24    the State and is approved in writing by the Governor.
25        7.  To   formulate   rules  and  regulations  as  may  be
26    necessary for the enforcement of any act administered by  the
27    Department.
28        8.  To  exchange  with  the Illinois Department of Public
29    Aid information that may be necessary for the enforcement  of
30    child  support orders entered pursuant to the Illinois Public
31    Aid Code, the Illinois Marriage and Dissolution  of  Marriage
32    Act,  the Non-Support of Spouse and Children Act, the Revised
33    Uniform Reciprocal Enforcement of Support  Act,  the  Uniform
34    Interstate  Family Support Act, or the Illinois Parentage Act
 
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 1    of 1984. Notwithstanding any provisions in this Code  to  the
 2    contrary, the Department of Professional Regulation shall not
 3    be  liable  under  any federal or State law to any person for
 4    any disclosure of information to the Illinois  Department  of
 5    Public  Aid  under  this  paragraph 8 or for any other action
 6    taken in good faith to comply with the requirements  of  this
 7    paragraph 8.
 8        9.   To perform such other duties as may be prescribed by
 9    law.
10        The  Department  may,  when  a  fee  is  payable  to  the
11    Department for a wall certificate of registration provided by
12    the  Department  of Central Management Services, require that
13    portion of the payment for printing and distribution costs be
14    made directly or through the Department, to the Department of
15    Central Management Services for  deposit  in  the  Paper  and
16    Printing  Revolving Fund, the remainder shall be deposited in
17    the General Revenue Fund.
18        For the purpose of securing and preparing  evidence,  and
19    for  the  purchase  of  controlled  substances,  professional
20    services, and equipment necessary for enforcement activities,
21    recoupment   of  investigative  costs  and  other  activities
22    directed at suppressing the misuse and  abuse  of  controlled
23    substances,  including those activities set forth in Sections
24    504 and 508 of the Illinois Controlled  Substances  Act,  the
25    Director  and agents appointed and authorized by the Director
26    may  expend  such  sums  from  the  Professional   Regulation
27    Evidence  Fund  as  the  Director  deems  necessary  from the
28    amounts appropriated for that purpose and such  sums  may  be
29    advanced  to the agent when the Director deems such procedure
30    to be in the  public  interest.  Sums  for  the  purchase  of
31    controlled  substances,  professional services, and equipment
32    necessary for enforcement activities and other activities  as
33    set  forth in this Section shall be advanced to the agent who
34    is to make such purchase  from  the  Professional  Regulation
 
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 1    Evidence  Fund  on  vouchers  signed  by  the  Director.  The
 2    Director and such agents are authorized to  maintain  one  or
 3    more  commercial  checking  accounts  with  any State banking
 4    corporation or corporations organized under or subject to the
 5    Illinois Banking Act for the deposit and withdrawal of moneys
 6    to be used for  the  purposes  set  forth  in  this  Section;
 7    provided,  that  no  check  may be written nor any withdrawal
 8    made from any such account except upon the written signatures
 9    of 2 persons designated by the Director to write such  checks
10    and  make  such  withdrawals.  Vouchers for such expenditures
11    must be signed by the  Director  and  all  such  expenditures
12    shall  be  audited  by  the  Director  and the audit shall be
13    submitted to the Department of  Central  Management  Services
14    for approval.
15        Whenever  the Department is authorized or required by law
16    to  consider  some  aspect   of   criminal   history   record
17    information  for  the  purpose  of carrying out its statutory
18    powers and responsibilities, then, upon request  and  payment
19    of fees in conformance with the requirements of subsection 22
20    of  Section 55a of the Civil Administrative Code of Illinois,
21    the Department of State  Police  is  authorized  to  furnish,
22    pursuant   to   positive   identification,  such  information
23    contained in State files  as  is  necessary  to  fulfill  the
24    request.
25        The  provisions  of  this Section do not apply to private
26    business and vocational schools as defined by  Section  1  of
27    the Private Business and Vocational Schools Act.
28        Beginning  July  1,  1995, this Section does not apply to
29    those professions, trades, and occupations licensed under the
30    Real Estate License Act of 2000 1983 nor does it apply to any
31    permits, certificates, or other authorizations to do business
32    provided for in the Land Sales Registration Act  of  1989  or
33    the Illinois Real Estate Time-Share Act.
34    (Source:  P.A. 89-6, eff. 3-6-95; 89-23, eff. 7-1-95; 89-237,
 
HB0902 Engrossed            -94-              LRB9104235LDmbA
 1    eff. 8-4-95; 89-411, eff. 6-1-96; 89-626, eff. 8-9-96; 90-18,
 2    eff. 7-1-97.)

 3        Section  905-15.  The Residential Mortgage License Act of
 4    1987 is amended by changing Section 1-4 as follows:

 5        (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
 6        Sec. 1-4.  Definitions.
 7        (a)  "Residential real  property"  or  "residential  real
 8    estate"  shall  mean  real  property  located  in  this State
 9    improved by a one-to-four family dwelling used  or  occupied,
10    wholly  or  partly,  as  the home or residence of one or more
11    persons  and  may  refer,  subject  to  regulations  of   the
12    Commissioner,  to  unimproved  real property upon which those
13    kinds dwellings are to be constructed.
14        (b)  "Making a residential mortgage loan" or  "funding  a
15    residential  mortgage  loan"  shall  mean for compensation or
16    gain, either  directly  or  indirectly,  advancing  funds  or
17    making  a commitment to advance funds to a loan applicant for
18    a residential mortgage loan.
19        (c)  "Soliciting, processing, placing, or  negotiating  a
20    residential  mortgage  loan"  shall  mean for compensation or
21    gain, either directly or indirectly, accepting or offering to
22    accept  an  application  for  a  residential  mortgage  loan,
23    assisting or offering to  assist  in  the  processing  of  an
24    application  for  a  residential mortgage loan on behalf of a
25    borrower, or negotiating or offering to negotiate  the  terms
26    or conditions of a residential mortgage loan with a lender on
27    behalf  of  a  borrower  including,  but  not limited to, the
28    submission of credit packages for the  approval  of  lenders,
29    the   preparation   of   residential  mortgage  loan  closing
30    documents, including a closing in the name of a broker.
31        (d)  "Exempt entity" shall mean the following:
32             (1) (i)  Any banking organization or foreign banking
 
HB0902 Engrossed            -95-              LRB9104235LDmbA
 1        corporation licensed  by  the  Illinois  Commissioner  of
 2        Banks and Real Estate or the United States Comptroller of
 3        the Currency to transact business in this State; (ii) any
 4        national  bank,  federally  chartered  savings  and  loan
 5        association,  federal savings bank, federal credit union;
 6        (iii) any  pension  trust,  bank  trust,  or  bank  trust
 7        company;  (iv)  any savings and loan association, savings
 8        bank, or credit union organized under the laws of this or
 9        any other state; (v) any  Illinois  Consumer  Installment
10        Loan  Act licensee; (vi) any insurance company authorized
11        to transact business in  this  State;  (vii)  any  entity
12        engaged solely in commercial mortgage lending; (viii) any
13        service  corporation of a savings and loan association or
14        savings bank organized under the laws of  this  State  or
15        the  service corporation of a federally chartered savings
16        and loan association or savings bank having its principal
17        place of business in this State,  other  than  a  service
18        corporation licensed or entitled to reciprocity under the
19        Real  Estate  License Act of 2000 1983; or (ix) any first
20        tier subsidiary of a bank, the charter of which is issued
21        under  the  Illinois  Banking   Act   by   the   Illinois
22        Commissioner  of Banks and Real Estate, or the first tier
23        subsidiary of a  bank  chartered  by  the  United  States
24        Comptroller  of  the  Currency and that has its principal
25        place of business in this State, provided that the  first
26        tier  subsidiary  is  regularly  examined by the Illinois
27        Commissioner of Banks and Real Estate or the  Comptroller
28        of  the Currency, or a consumer compliance examination is
29        regularly conducted by the Federal Reserve Board.
30             (2)  Any person or entity  that  either  (i)  has  a
31        physical  presence in Illinois or (ii) does not originate
32        mortgage loans in the ordinary course of business  making
33        or  acquiring  residential mortgage loans with his or her
34        or its own funds for his or her  or  its  own  investment
 
HB0902 Engrossed            -96-              LRB9104235LDmbA
 1        without  intent  to make, acquire, or resell more than 10
 2        residential mortgage loans in any one calendar year.
 3             (3)  Any person employed by a licensee to assist  in
 4        the  performance  of the activities regulated by this Act
 5        who is compensated in any manner by only one licensee.
 6             (4)  Any person licensed pursuant to the Real Estate
 7        License Act of 2000 1983, who engages only in the  taking
 8        of  applications  and credit and appraisal information to
 9        forward to a licensee or an exempt entity under this  Act
10        and  who is compensated by either a licensee or an exempt
11        entity under this Act, but is not compensated  by  either
12        the buyer (applicant) or the seller.
13             (5)  Any  individual,  corporation,  partnership, or
14        other  entity  that  originates,  services,  or   brokers
15        residential  mortgage  loans,  as  these  activities  are
16        defined  in  this  Act,  and  who  or  which  receives no
17        compensation  for  those  activities,  subject   to   the
18        Commissioner's  regulations with regard to the nature and
19        amount of compensation.
20             (6)  A person who prepares supporting  documentation
21        for  a  residential  mortgage loan application taken by a
22        licensee and performs  ministerial functions pursuant  to
23        specific   instructions   of  the  licensee  who  neither
24        requires nor permits the preparer to exercise his or  her
25        discretion  or  judgment;  provided that this activity is
26        engaged in  pursuant  to  a  binding,  written  agreement
27        between the licensee and the preparer that:
28                  (A)  holds  the  licensee fully accountable for
29             the preparer's action; and
30                  (B)  otherwise meets the requirements  of  this
31             Section   and  this  Act,  does  not  undermine  the
32             purposes  of  this  Act,  and  is  approved  by  the
33             Commissioner.
34        (e)  "Licensee" or "residential mortgage licensee"  shall
 
HB0902 Engrossed            -97-              LRB9104235LDmbA
 1    mean  a person, partnership, association, corporation, or any
 2    other entity who or which is licensed pursuant to this Act to
 3    engage in the activities regulated by this Act.
 4        (f)  "Mortgage loan" "residential mortgage loan" or "home
 5    mortgage loan" shall mean a loan to or for the benefit of any
 6    natural  person  made  primarily  for  personal,  family,  or
 7    household use, primarily secured  by  either  a  mortgage  on
 8    residential  real  property or certificates of stock or other
 9    evidence of ownership interests  in  and  proprietary  leases
10    from,   corporations,   partnerships,  or  limited  liability
11    companies formed for the purpose of cooperative ownership  of
12    residential real property, all located in Illinois.
13        (g)  "Lender"   shall   mean   any  person,  partnership,
14    association, corporation, or  any  other  entity  who  either
15    lends or invests money in residential mortgage loans.
16        (h)  "Ultimate  equitable owner" shall mean a person who,
17    directly  or  indirectly,  owns  or  controls  an   ownership
18    interest   in   a  corporation,  foreign  corporation,  alien
19    business organization, trust, or any other form  of  business
20    organization   regardless  of  whether  the  person  owns  or
21    controls the ownership interest through one or  more  persons
22    or  one  or  more  proxies,  powers  of  attorney,  nominees,
23    corporations, associations, partnerships, trusts, joint stock
24    companies,  or  other entities or devices, or any combination
25    thereof.
26        (i)  "Residential mortgage financing  transaction"  shall
27    mean  the  negotiation, acquisition, sale, or arrangement for
28    or the offer to negotiate, acquire, sell, or arrange  for,  a
29    residential   mortgage  loan  or  residential  mortgage  loan
30    commitment.
31        (j)  "Personal residence address"  shall  mean  a  street
32    address and shall not include a post office box number.
33        (k)  "Residential  mortgage loan commitment" shall mean a
34    contract for residential mortgage loan financing.
 
HB0902 Engrossed            -98-              LRB9104235LDmbA
 1        (l)  "Party   to   a   residential   mortgage   financing
 2    transaction" shall mean a borrower, lender, or loan broker in
 3    a residential mortgage financing transaction.
 4        (m)  "Payments" shall mean payment of all or any  of  the
 5    following: principal, interest and escrow reserves for taxes,
 6    insurance  and  other related reserves, and reimbursement for
 7    lender advances.
 8        (n)  "Commissioner" shall mean the Commissioner of  Banks
 9    and  Real  Estate or a person authorized by the Commissioner,
10    the Office of Banks and Real Estate Act, or this Act  to  act
11    in the Commissioner's stead.
12        (o)  "Loan   brokering",   "brokering",   or   "brokerage
13    service" shall mean the act of helping to obtain from another
14    entity,  for  a  borrower, a loan secured by residential real
15    estate situated  in  Illinois  or  assisting  a  borrower  in
16    obtaining  a loan secured by residential real estate situated
17    in Illinois in return for consideration to be paid by  either
18    the  borrower  or  the  lender including, but not limited to,
19    contracting for the delivery of residential mortgage loans to
20    a third party lender and soliciting, processing, placing,  or
21    negotiating residential mortgage loans.
22        (p)  "Loan  broker"  or  "broker"  shall  mean  a person,
23    partnership, association, corporation, or  limited  liability
24    company,    other    than    those   persons,   partnerships,
25    associations, corporations, or  limited  liability  companies
26    exempted  from  licensing pursuant to Section 1-4, subsection
27    (d), of this Act, who performs the  activities  described  in
28    subsections (c) and (o) of this Section.
29        (q)  "Servicing"  shall mean the collection or remittance
30    for or the right or obligation to collect or  remit  for  any
31    lender,  noteowner,  noteholder,  or  for  a  licensee's  own
32    account,  of  payments, interests, principal, and trust items
33    such as hazard insurance and taxes on a residential  mortgage
34    loan in accordance with the terms of the residential mortgage
 
HB0902 Engrossed            -99-              LRB9104235LDmbA
 1    loan;  and  includes loan payment follow-up, delinquency loan
 2    follow-up,  loan  analysis  and  any  notifications  to   the
 3    borrower  that  are  necessary to enable the borrower to keep
 4    the loan current and in good standing.
 5        (r)  "Full service office" shall mean office and staff in
 6    Illinois   reasonably   adequate   to   handle    efficiently
 7    communications,  questions, and other matters relating to any
 8    application for, or an  existing  home  mortgage  secured  by
 9    residential  real estate situated in Illinois with respect to
10    which  the  licensee  is  brokering,   funding   originating,
11    purchasing,  or  servicing.   The management and operation of
12    each full service office  must  include  observance  of  good
13    business  practices such as adequate, organized, and accurate
14    books and records; ample  phone  lines,  hours  of  business,
15    staff training and supervision, and provision for a mechanism
16    to resolve consumer inquiries, complaints, and problems.  The
17    Commissioner  shall  issue  regulations  with regard to these
18    requirements and shall include an  evaluation  of  compliance
19    with  this Section in his or her periodic examination of each
20    licensee.
21        (s)  "Purchasing" shall mean the purchase of conventional
22    or government-insured mortgage loans secured  by  residential
23    real  estate  situated  in Illinois from either the lender or
24    from the secondary market.
25        (t)  "Borrower" shall mean the person or persons who seek
26    the services of a loan broker, originator, or lender.
27        (u)  "Originating" shall mean the issuing of  commitments
28    for and funding of residential mortgage loans.
29        (v)  "Loan  brokerage  agreement"  shall  mean  a written
30    agreement in which a broker  or  loan  broker  agrees  to  do
31    either of the following:
32             (1)  obtain  a  residential  mortgage  loan  for the
33        borrower  or  assist  the   borrower   in   obtaining   a
34        residential mortgage loan; or
 
HB0902 Engrossed            -100-             LRB9104235LDmbA
 1             (2)  consider  making a residential mortgage loan to
 2        the borrower.
 3        (w)  "Advertisement"   shall   mean   the   attempt    by
 4    publication,   dissemination,   or   circulation  to  induce,
 5    directly  or  indirectly,  any  person  to   enter   into   a
 6    residential  mortgage  loan agreement or residential mortgage
 7    loan brokerage agreement relative to a  mortgage  secured  by
 8    residential real estate situated in Illinois.
 9        (x)  "Residential   Mortgage   Board"   shall   mean  the
10    Residential Mortgage Board created in  Section  1-5  of  this
11    Act.
12        (y)  "Government-insured  mortgage  loan"  shall mean any
13    mortgage loan made on the security of residential real estate
14    insured by the Department of Housing and Urban Development or
15    Farmers  Home  Loan  Administration,  or  guaranteed  by  the
16    Veterans Administration.
17        (z)  "Annual audit" shall mean a certified audit  of  the
18    licensee's  books and records and systems of internal control
19    performed by a certified public accountant in accordance with
20    generally  accepted  accounting  principles   and   generally
21    accepted auditing standards.
22        (aa)  "Financial  institution"  shall  mean a savings and
23    loan association, savings  bank,  credit  union,  or  a  bank
24    organized  under  the  laws of Illinois or a savings and loan
25    association, savings bank, credit union or a  bank  organized
26    under  the  laws  of  the  United States and headquartered in
27    Illinois.
28        (bb)  "Escrow agent" shall mean a third party, individual
29    or entity charged with the fiduciary obligation  for  holding
30    escrow  funds  on  a  residential mortgage loan pending final
31    payout of those funds in accordance with  the  terms  of  the
32    residential mortgage loan.
33        (cc)  "Net worth" shall have the meaning ascribed thereto
34    in Section 3-5 of this Act.
 
HB0902 Engrossed            -101-             LRB9104235LDmbA
 1        (dd)  "Affiliate" shall mean:
 2             (1)  any   entity   that  directly  controls  or  is
 3        controlled by the licensee and any other company that  is
 4        directly  affecting activities regulated by this Act that
 5        is controlled by the company that controls the licensee;
 6             (2)  any entity:
 7                  (A)  that   is    controlled,    directly    or
 8             indirectly,  by  a trust or otherwise, by or for the
 9             benefit  of   shareholders   who   beneficially   or
10             otherwise  control, directly or indirectly, by trust
11             or otherwise,  the  licensee  or  any  company  that
12             controls the licensee; or
13                  (B)  a majority of the directors or trustees of
14             which  constitute  a majority of the persons holding
15             any such office with the  licensee  or  any  company
16             that controls the licensee;
17             (3)  any company, including a real estate investment
18        trust,  that  is  sponsored  and advised on a contractual
19        basis by the licensee or any subsidiary or  affiliate  of
20        the licensee.
21        The  Commissioner  may  define by rule and regulation any
22    terms  used  in  this  Act  for  the  efficient   and   clear
23    administration of this Act.
24        (ee)  "First   tier   subsidiary"  shall  be  defined  by
25    regulation incorporating the comparable definitions  used  by
26    the  Office  of  the  Comptroller  of  the  Currency  and the
27    Illinois Commissioner of Banks and Real Estate.
28        (ff)  "Gross  delinquency  rate"   means   the   quotient
29    determined  by  dividing  (1)  the  sum  of (i) the number of
30    government-insured  residential  mortgage  loans  funded   or
31    purchased  by  a licensee in the preceding calendar year that
32    are  delinquent  and  (ii)   the   number   of   conventional
33    residential   mortgage  loans  funded  or  purchased  by  the
34    licensee in the preceding calendar year that  are  delinquent
 
HB0902 Engrossed            -102-             LRB9104235LDmbA
 1    by  (2)  the  sum  of  (i)  the  number of government-insured
 2    residential  mortgage  loans  funded  or  purchased  by   the
 3    licensee  in  the preceding calendar year and (ii) the number
 4    of  conventional  residential  mortgage   loans   funded   or
 5    purchased by the licensee in the preceding calendar year.
 6        (gg)  "Delinquency  rate  factor" means the factor set by
 7    rule of the Commissioner that is multiplied  by  the  average
 8    gross  delinquency rate of licensees, determined annually for
 9    the immediately preceding calendar year, for the  purpose  of
10    determining   which   licensees  shall  be  examined  by  the
11    Commissioner pursuant to subsection (b)  of  Section  4-8  of
12    this Act.
13    (Source:  P.A.  89-355,  eff.  8-17-95;  89-508, eff. 7-3-96;
14    90-772, eff. 1-1-99.)

15        Section  905-20.  The Title Insurance Act is  amended  by
16    changing Section 3 as follows:

17        (215 ILCS 155/3) (from Ch. 73, par. 1403)
18        Sec.  3.   As  used  in  this  Act, the words and phrases
19    following  shall  have  the  following  meanings  unless  the
20    context requires otherwise:
21        (1)  "Business of guaranteeing or insuring titles to real
22    estate"  means  the  making  as  insurer  or  guarantor,   or
23    proposing to make as insurer or guarantor, of any contract or
24    policy  of  title  insurance; the transacting or proposing to
25    transact, any phase of  title  insurance,  including,  as  an
26    insurer  or  guarantor,  examination  of title, solicitation,
27    negotiation preliminary to the execution  of  a  contract  of
28    title  insurance,  and  execution  of  a  contract  of  title
29    insurance, insuring and transacting matters subsequent to the
30    execution  of  the contract and arising out of it, other than
31    reinsurance; the performance of any  service  in  conjunction
32    with  the  issuance  of  any  contract  or  policy  of  title
 
HB0902 Engrossed            -103-             LRB9104235LDmbA
 1    insurance,  including  but not limited to the handling of any
 2    escrow, settlement  or  closing,  if  conducted  by  a  title
 3    insurance  company or title insurance agent; or the doing, or
 4    proposing to do, any business in substance equivalent to  any
 5    of the foregoing in a manner designed to evade the provisions
 6    of this Act.
 7        (2)  "Title insurance company" means any domestic company
 8    organized  under  the  laws  of this State for the purpose of
 9    conducting the business of guaranteeing or insuring titles to
10    real estate and any title insurance company  organized  under
11    the  laws  of  another  State,  the  District  of Columbia or
12    foreign government and authorized to transact the business of
13    guaranteeing or insuring titles to real estate in this State.
14        (3)  "Title  insurance  agent"  means  a  person,   firm,
15    partnership,  association,  corporation or other legal entity
16    registered by a title insurance  company  and  authorized  by
17    such company to determine insurability of title in accordance
18    with generally acceptable underwriting rules and standards in
19    reliance  on  either  the  public records or a search package
20    prepared from a title  plant,  or  both,  and  authorized  in
21    addition to do any of the following:  act as an escrow agent,
22    solicit   title  insurance,  collect  premiums,  issue  title
23    reports, binders or commitments to insure and policies in its
24    behalf, provided, however, the term "title  insurance  agent"
25    shall  not  include  officers  and  salaried employees of any
26    title insurance company.
27        (4)  "Producer of title business" is  any  person,  firm,
28    partnership,  association,  corporation or other legal entity
29    engaged in this State in the trade, business,  occupation  or
30    profession  of  (i)  buying  or  selling  interests  in  real
31    property,  (ii)  making  loans  secured  by interests in real
32    property, or (iii) acting  as  broker,  agent,  attorney,  or
33    representative  of  natural  persons  or other legal entities
34    that buy or sell interests in  real  property  or  that  lend
 
HB0902 Engrossed            -104-             LRB9104235LDmbA
 1    money with such interests as security.
 2        (5)  "Associate"  is  any firm, association, partnership,
 3    corporation or other legal entity  organized  for  profit  in
 4    which a producer of title business is a director, officer, or
 5    partner thereof, or owner of a financial interest, as defined
 6    herein,  in  such  entity; any legal entity that controls, is
 7    controlled by, or is under common control with a producer  of
 8    title  business;  and any natural person or legal entity with
 9    whom  a  producer  of  title  business  has  any   agreement,
10    arrangement,  or  understanding  or  pursues  any  course  of
11    conduct  the  purpose  of which is to evade the provisions of
12    this Act.
13        (6)  "Financial  interest"  is  any  ownership  interest,
14    legal or beneficial,  except  ownership  of  publicly  traded
15    stock.
16        (7)  "Refer"  means to place or cause to be placed, or to
17    exercise any power or influence over  the  placing  of  title
18    business, whether or not the consent or approval of any other
19    person is sought or obtained with respect to the referral.
20        (8)  "Escrow  Agent" means any title insurance company or
21    any title  insurance  agent  acting  on  behalf  of  a  title
22    insurance company which receives deposits, in trust, of funds
23    or documents, or both, for the purpose of effecting the sale,
24    transfer, encumbrance or lease of real property to be held by
25    such  escrow  agent  until title to the real property that is
26    the subject of the escrow is in a prescribed condition.
27        (9)  "Independent  Escrowee"  means  any  firm,   person,
28    partnership,  association, corporation or other legal entity,
29    other than a title insurance company  or  a  title  insurance
30    agent,  which  receives  deposits,  in  trust,  of  funds  or
31    documents,  or  both,  for the purpose of effecting the sale,
32    transfer, encumbrance or lease of real property to be held by
33    such escrowee until title to the real property  that  is  the
34    subject  of the escrow is in a prescribed condition.  Federal
 
HB0902 Engrossed            -105-             LRB9104235LDmbA
 1    and State chartered banks,  savings  and  loan  associations,
 2    credit  unions,  mortgage  bankers,  banks or trust companies
 3    authorized  to  do  business  under  the  Illinois  Corporate
 4    Fiduciary Act, licensees under the Consumer Installment  Loan
 5    Act, real estate brokers licensed pursuant to the Real Estate
 6    License  Act  of 2000 1983, as such Acts are now or hereafter
 7    amended,  and  licensed  attorneys  when   engaged   in   the
 8    attorney-client  relationship  are  exempt  from  the  escrow
 9    provisions of this Act.
10        (10)  "Single risk" means the insured amount of any title
11    insurance policy, except that where 2 or more title insurance
12    policies are issued simultaneously covering different estates
13    in the same real property, "single risk" means the sum of the
14    insured  amounts  of  all such title insurance policies.  Any
15    title insurance policy insuring a mortgage interest, a  claim
16    payment  under  which  reduces the insured amount of a fee or
17    leasehold  title  insurance  policy,  shall  be  excluded  in
18    computing the amount of a single risk to the extent that  the
19    insured  amount  of  the mortgage title insurance policy does
20    not exceed the insured amount of the fee or  leasehold  title
21    insurance policy.
22        (11)  "Department"  means  the  Department  of  Financial
23    Institutions.
24        (12)  "Director"   means   the   Director   of  Financial
25    Institutions.
26    (Source: P.A. 86-239.)

27        Section  905-25.  The Illinois Highway Code is amended by
28    changing Section 5-907 as follows:

29        (605 ILCS 5/5-907) (from Ch. 121, par. 5-907)
30        Sec. 5-907. Advisory Committee. A road improvement impact
31    fee advisory committee shall be created by the unit of  local
32    government  intending  to  impose  impact fees.  The Advisory
 
HB0902 Engrossed            -106-             LRB9104235LDmbA
 1    Committee shall consist of not less than 10 members  and  not
 2    more  than  20  members.  Not less than 40% of the members of
 3    the committee shall be representatives of  the  real  estate,
 4    development,   and   building   industries   and   the  labor
 5    communities and may not be employees or officials of the unit
 6    of local government.
 7        The members of the Advisory Committee shall  be  selected
 8    as follows:
 9             (1)  The  representatives  of  real  estate shall be
10        licensed under the Real Estate License Act of  2000  1983
11        and  shall be designated by the President of the Illinois
12        Association of Realtors  from  a  local  Board  from  the
13        service area or areas of the unit of local government.
14             (2)  The representatives of the development industry
15        shall   be   designated   by   the   Regional  Developers
16        Association.
17             (3)  The representatives of  the  building  industry
18        shall  be designated representatives of the Regional Home
19        Builders representing  the  unit  of  local  government's
20        geographic  area  as  appointed from time to time by that
21        Association's president.
22             (4)  The labor representatives shall  be  chosen  by
23        either  the  Central  Labor  Council  or the Building and
24        Construction Trades Council  having  jurisdiction  within
25        the unit of local government.
26        If the unit of local government is a county, at least 30%
27    of   the   members   serving   on   the  commission  must  be
28    representatives of the municipalities within the county.  The
29    municipal representatives shall be selected by  a  convention
30    of   mayors  in  the  county,  who  shall  elect  from  their
31    membership municipal representatives to serve on the Advisory
32    Committee.  The members  representing  the  county  shall  be
33    appointed by the chief executive officer of the county.
34        If  the  unit  of local government is a municipality, the
 
HB0902 Engrossed            -107-             LRB9104235LDmbA
 1    non-public representatives shall be appointed  by  the  chief
 2    executive officer of the municipality.
 3        If  the unit of local government has a planning or zoning
 4    commission, the unit of local government may elect to use its
 5    planning or  zoning  commission  to  serve  as  the  Advisory
 6    Committee,  provided  that not less than 40% of the committee
 7    members  include  representatives   of   the   real   estate,
 8    development,   and   building   industries   and   the  labor
 9    communities who are not employees or officials of the unit of
10    local government.  A unit of  local  government  may  appoint
11    additional  members  to  serve  on  the  planning  or  zoning
12    commission  as ad hoc voting members whenever the planning or
13    zoning  commission  functions  as  the  Advisory   Committee;
14    provided  that  no  less  than  40%  of  the  members include
15    representatives of the real estate, development, and building
16    industries and the labor communities.
17    (Source: P.A. 86-97.)

18        Section  905-30.  The Illinois Real Estate Time-Share Act
19    is amended by changing Sections 19, 33, and 34 as follows:

20        (765 ILCS 100/19) (from Ch. 30, par. 719)
21        Sec. 19.  (a)  Any person acting as a sales  agent  of  a
22    time-share  estate  of  real  property  without  having first
23    complied with the Real Estate License Act of 2000 1983  shall
24    be guilty of a Class A misdemeanor.
25        Upon conviction of a second offense the violator shall be
26    guilty of a Class A misdemeanor.
27        Upon  conviction  of  a  third  or subsequent offense the
28    violator shall be guilty of a Class 4  felony  and  shall  be
29    fined not less than $15,000 nor more than $50,000.
30        (b)  In addition to any other remedies, the Commissioner,
31    through  the  Attorney  General,  is  authorized  to  file  a
32    complaint and apply to any circuit court wherein such alleged
 
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 1    acts  are  occurring, and such circuit court may upon hearing
 2    and for cause shown, grant a temporary restraining order or a
 3    preliminary   or   permanent   injunction,   without    bond,
 4    restraining any person from violating this Act whether or not
 5    there exists other judicial remedies.
 6        (c)  The Commissioner by and through the Attorney General
 7    may file a complaint for violation of this Act.
 8        (d)  The  penalties  and  remedies  provided  by this Act
 9    shall not be exclusive, but shall be in addition to all other
10    penalties or remedies provided by law.
11    (Source: P.A. 89-508, eff. 7-3-96.)

12        (765 ILCS 100/33) (from Ch. 30, par. 733)
13        Sec. 33.  If a time-share program involves the  offering,
14    sale,  exchange  or  lease  of  real property, then any sales
15    agent, involved in the transaction must comply with the  Real
16    Estate License Act of 2000 1983.
17    (Source: P.A. 84-821.)

18        (765 ILCS 100/34) (from Ch. 30, par. 734)
19        Sec.   34.   All  fees  in  the  Real  Estate  Time-Share
20    Registration Fund on the effective date  of  this  amendatory
21    Act  of  1986  shall be transferred by the State Treasurer to
22    the Real Estate License Administration Fund,  established  in
23    Section  17 of the Real Estate License Act of 2000 1983.  All
24    fees received under this Act on or after that date  shall  be
25    deposited into the Real Estate License Administration Fund.
26    (Source: P.A. 89-508, eff. 7-3-96.)

27        Section   905-35.  The Commercial Real Estate Broker Lien
28    Act is amended by changing Section 5 as follows:

29        (770 ILCS 15/5) (from Ch. 82, par. 655)
30        Sec. 5.  Definitions.  As used in this Act:
 
HB0902 Engrossed            -109-             LRB9104235LDmbA
 1        "Commercial real estate" means any real estate located in
 2    Illinois other than (i)  real  estate  containing  one  to  6
 3    residential  units, (ii) real estate on which no buildings or
 4    structures are located, or (iii) real  estate  classified  as
 5    farmland for assessment purposes under the Property Tax Code.
 6    Commercial  real  estate  shall  not  include  single  family
 7    residential  units such as condominiums, townhouses, or homes
 8    in a subdivision when sold, leased, or otherwise conveyed  on
 9    a unit by unit basis even though these units may be part of a
10    larger building or parcel of real estate containing more than
11    6 residential units.
12        "Real estate", "broker", and "employee" are defined as in
13    the Real Estate License Act of 2000 1983.
14        "Interest  in  commercial  real  estate"  shall  include,
15    without  limitation,  any interest in a land trust as defined
16    in Section 15-1205 of the Code of Civil Procedure.
17    (Source: P.A. 87-779; 88-354; 88-670, eff. 12-2-94.)

18        Section  905-40.  The Illinois Business  Brokers  Act  of
19    1995 is amended by changing Section 10-80 as follows:

20        (815 ILCS 307/10-80)
21        Sec.  10-80.  Persons  exempt from registration and other
22    duties under law;  burden of proof thereof.
23        (a)  The  following   persons   are   exempt   from   the
24    requirements of this Act:
25             (1)  Any  attorney  who  is  licensed to practice in
26        this State, while engaged in  the  practice  of  law  and
27        whose   service   in  relation  to  the  business  broker
28        transaction is incidental to the attorney's practice.
29             (2)  Any person licensed as a real estate broker  or
30        salesperson under the Illinois Real Estate License Act of
31        2000 1983 who is primarily engaged in business activities
32        for  which  a license is required under that Act and who,
 
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 1        on an incidental basis, acts as a business broker.
 2             (3)  Any dealer, salesperson, or investment  adviser
 3        registered  pursuant  to  the  Illinois Securities Law of
 4        1953 or any investment  adviser  representative,  or  any
 5        person  who  is  regularly  engaged  in  the  business of
 6        offering or selling securities in a transaction  exempted
 7        under  subsection C, H, M, R, Q, or S of Section 4 of the
 8        Illinois Securities  Law  of  1953  or  subsection  G  of
 9        Section 4 of the Illinois Securities Law of 1953 provided
10        that  such  person  is  registered  pursuant  to  federal
11        securities law.
12             (4)  An  associated  person described in subdivision
13        (h)(2) of Section 15 of the Federal 1934 Act.
14             (5)  An investment adviser  registered  pursuant  to
15        Section 203 of the Federal 1940 Investment Advisors Act.
16             (6)  A  person  described  in subdivision (a)(11) of
17        Section 202 of the Federal 1940 Investment Advisors Act.
18             (7)  Any person who is selling a business  owned  or
19        operated  (in  whole or  in part) by that person in a one
20        time transaction.
21        (b)  This Act shall not be deemed to apply in any manner,
22    directly or indirectly, to: (i)  a  State  bank  or  national
23    bank, as those terms are defined in the Illinois Banking Act,
24    or  any  subsidiary  of a State bank or national bank; (ii) a
25    bank holding company, as that term is defined in the Illinois
26    Bank Holding Company Act of 1957, or any subsidiary of a bank
27    holding company; (iii) a foreign banking corporation, as that
28    term is defined in the Foreign Banking  Office  Act,  or  any
29    subsidiary   of   a   foreign  banking  corporation;  (iv)  a
30    representative  office,  as  that  term  is  defined  in  the
31    Foreign  Bank  Representative  Office  Act;  (v)  a corporate
32    fiduciary, as that term is defined in the Corporate Fiduciary
33    Act, or any subsidiary  of  a  corporate  fiduciary;  (vi)  a
34    savings  bank  organized  under  the  Savings  Bank Act, or a
 
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 1    federal savings bank organized  under  federal  law,  or  any
 2    subsidiary of a savings bank or federal savings bank; (vii) a
 3    savings bank holding company organized under the Savings Bank
 4    Act,  or  any  subsidiary  of a savings bank holding company;
 5    (viii) an association or federal association, as those  terms
 6    are  defined in the Illinois Savings and Loan Act of 1985, or
 7    any subsidiary of an association or federal association; (ix)
 8    a foreign savings and loan  association  or  foreign  savings
 9    bank subject to the Illinois Savings and Loan Act of 1985, or
10    any  subsidiary  of a foreign savings and loan association or
11    foreign savings bank; or (x) a savings and  loan  association
12    holding  company,  as  that  term  is defined in the Illinois
13    Savings and Loan Act of 1985, or any subsidiary of a  savings
14    and loan association holding company.
15        (b-1)  Persons  registered  under  the Illinois Franchise
16    Disclosure Act of 1987 (and their employees) are exempt  from
17    the  requirements  of  this  Act  as  to: offers and sales in
18    connection with franchising activities; or assisting  any  of
19    their  franchisees in the offer or sale of a franchise by any
20    such franchisee for the franchisee's own  account  regardless
21    of  whether the sale is effected by or through the registered
22    persons.
23        (b-2)  Any  certified  public  accountant   licensed   to
24    practice  in  Illinois,  while  engaged  in the practice as a
25    certified public accountant and whose service in relation  to
26    the  business  broker transaction is incidental to his or her
27    practice, is exempt from the requirements of this Act.
28        (b-3)  Any  publisher,  or  regular  employee   of   such
29    publisher,  of  a  bona  fide   newspaper or news magazine of
30    regular and established paid circulation who, in the  routine
31    course of selling advertising, advertises businesses for sale
32    and in which no other related services are provided is exempt
33    from the requirements of this Act.
34        (c)  The   burden   of   proof   of   any   exemption  or
 
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 1    classification provided in this Act shall  be  on  the  party
 2    claiming the exemption or classification.
 3    (Source:  P.A.  89-209,  eff.  1-1-96;  89-665, eff. 8-14-96;
 4    90-70, eff. 7-8-97.)

 5        Section  905-45.   The  Telephone  Solicitations  Act  is
 6    amended by changing Section 10 as follows:

 7        (815 ILCS 413/10)
 8        Sec. 10.  Jurisdiction.  No person shall solicit the sale
 9    of  goods or services in this State except in accordance with
10    this Act. The provisions of  this  Act  shall  not  apply  to
11    telecommunications carriers as defined in Article XIII of the
12    Public  Utilities Act or to  any bank, trust company, savings
13    and  loan  association,  credit  union,  licensee  under  the
14    Consumer Installment Loan  Act,  licensed  insurer,  licensee
15    under  the  Real  Estate  License  Act  of  2000 1983, or any
16    affiliate,  subsidiary,  employee,  or  agent  of  any   such
17    entities.
18    (Source: P.A. 90-541, eff. 6-1-98.)

19                       ARTICLE 990.  REPEALER

20        (225 ILCS 455/Act rep.)
21        Section  990-90.   The Real Estate License Act of 1983 is
22    repealed.

23                    ARTICLE 999.  EFFECTIVE DATE

24        Section 999-99.  Effective date.  This Act  takes  effect
25    December 31, 1999.

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