Public Act 096-0856
 
SB1894 Enrolled LRB096 09530 ASK 19687 b

    AN ACT concerning professional regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Regulatory Sunset Act is amended by changing
Section 4.20 and by adding Section 4.30 as follows:
 
    (5 ILCS 80/4.20)
    Sec. 4.20. Acts repealed on January 1, 2010 and December
31, 2010.
    (a) The following Acts are repealed on January 1, 2010:
        The Auction License Act.
        The Illinois Architecture Practice Act of 1989.
        The Illinois Landscape Architecture Act of 1989.
        The Illinois Professional Land Surveyor Act of 1989.
        The Land Sales Registration Act of 1999.
        The Orthotics, Prosthetics, and Pedorthics Practice
    Act.
        The Perfusionist Practice Act.
        The Professional Engineering Practice Act of 1989.
        The Real Estate License Act of 2000.
        The Structural Engineering Practice Act of 1989.
    (b) The following Act is repealed on December 31, 2010:
        The Medical Practice Act of 1987.
(Source: P.A. 95-1018, eff. 12-18-08.)
 
    (5 ILCS 80/4.30 new)
    Sec. 4.30. Act repealed on January 1, 2020. The following
Act is repealed on January 1, 2020:
    The Real Estate License Act of 2000.
 
    Section 10. The Illinois Municipal Code is amended by
changing Sections 11-20-7, 11-20-8, 11-20-12, and 11-20-13 and
by adding Sections 11-20-15, 11-20-15.1, and 11-31-1.01 as
follows:
 
    (65 ILCS 5/11-20-7)  (from Ch. 24, par. 11-20-7)
    Sec. 11-20-7. Cutting and removal of neglected weeds,
grass, trees, and bushes.
    (a) The corporate authorities of each municipality may
provide for the removal of nuisance greenery from any parcel of
private property within the municipality if the owners of that
parcel, after reasonable notice, refuse or neglect to remove
the nuisance greenery. The municipality may collect, from the
owners of that parcel, the reasonable removal cost.
    (b) The municipality's removal cost under this Section is a
lien upon the underlying parcel in accordance with Section
11-20-15.
    (c) For the purpose of this Section:
    "Removal of nuisance greenery" or "removal activities"
means the cutting of weeds or grass, the trimming of trees or
bushes, and the removal of nuisance bushes or trees.
    "Removal cost" means the total cost of the removal
activity.
    (d) In the case of an abandoned residential property as
defined in Section 11-20-15.1, the municipality may elect to
obtain a lien for the removal cost pursuant to Section
11-20-15.1, in which case the provisions of Section 11-20-15.1
shall be the exclusive remedy for the removal cost.
    The provisions of this subsection (d), other than this
sentence, are inoperative upon certification by the Secretary
of the Illinois Department of Financial and Professional
Regulation, after consultation with the United States
Department of Housing and Urban Development, that the Mortgage
Electronic Registration System program is effectively
registering substantially all mortgaged residential properties
located in the State of Illinois, is available for access by
all municipalities located in the State of Illinois without
charge to them, and such registration includes the telephone
number for the mortgage servicer.
(Source: P.A. 95-183, eff. 8-14-07; 96-462, eff. 8-14-09.)
 
    (65 ILCS 5/11-20-8)  (from Ch. 24, par. 11-20-8)
    Sec. 11-20-8. Pest extermination; liens.
    (a) The corporate authorities of each municipality may
provide pest-control activities on any parcel of private
property in the municipality if, after reasonable notice, the
owners of that parcel refuse or neglect to prevent the ingress
of pests to their property or to exterminate pests on their
property. The municipality may collect, from the owners of the
underlying parcel, the reasonable removal cost.
    (b) The municipality's removal cost under this Section is a
lien upon the underlying parcel in accordance with Section
11-20-15.
    (c) For the purpose of this Section:
    "Pests" means mean undesirable arthropods (including
certain insects, spiders, mites, ticks, and related
organisms), wood infesting organisms, rats, mice, and other
obnoxious undesirable animals, but does not include a feral
cat, a "companion animal" as that term is defined in the Humane
Care for Animals Act (510 ILCS 70/), "animals" as that term is
defined in the Illinois Diseased Animals Act (510 ILCS 50/), or
animals protected by the Wildlife Code (520 ILCS 5/).
    "Pest-control activity" means the extermination of pests
or the prevention of the ingress of pests.
    "Removal cost" means the total cost of the pest-control
activity.
    (d) In the case of an abandoned residential property as
defined in Section 11-20-15.1, the municipality may elect to
obtain a lien for the removal cost pursuant to Section
11-20-15.1, in which case the provisions of Section 11-20-15.1
shall be the exclusive remedy for the removal cost.
    The provisions of this subsection (d), other than this
sentence, are inoperative upon certification by the Secretary
of the Illinois Department of Financial and Professional
Regulation, after consultation with the United States
Department of Housing and Urban Development, that the Mortgage
Electronic Registration System program is effectively
registering substantially all mortgaged residential properties
located in the State of Illinois, is available for access by
all municipalities located in the State of Illinois without
charge to them, and such registration includes the telephone
number for the mortgage servicer.
(Source: P.A. 96-462, eff. 8-14-09.)
 
    (65 ILCS 5/11-20-12)  (from Ch. 24, par. 11-20-12)
    Sec. 11-20-12. Removal of infected trees.
    (a) The corporate authorities of each municipality may
provide for the removal of elm trees infected with Dutch elm
disease or ash trees infected with the emerald ash borer
(Agrilus planipennis Fairmaire) from any parcel of private
property within the municipality if the owners of that parcel,
after reasonable notice, refuse or neglect to remove the
infected trees. The municipality may collect, from the owners
of the parcel, the reasonable removal cost.
    (b) The municipality's removal cost under this Section is a
lien upon the underlying parcel in accordance with Section
11-20-15.
    (c) For the purpose of this Section, "removal cost" means
the total cost of the removal of the infected trees.
    (d) In the case of an abandoned residential property as
defined in Section 11-20-15.1, the municipality may elect to
obtain a lien for the removal cost pursuant to Section
11-20-15.1, in which case the provisions of Section 11-20-15.1
shall be the exclusive remedy for the removal cost.
    The provisions of this subsection (d), other than this
sentence, are inoperative upon certification by the Secretary
of the Illinois Department of Financial and Professional
Regulation, after consultation with the United States
Department of Housing and Urban Development, that the Mortgage
Electronic Registration System program is effectively
registering substantially all mortgaged residential properties
located in the State of Illinois, is available for access by
all municipalities located in the State of Illinois without
charge to them, and such registration includes the telephone
number for the mortgage servicer.
(Source: P.A. 95-183, eff. 8-14-07; 96-462, eff. 8-14-09.)
 
    (65 ILCS 5/11-20-13)  (from Ch. 24, par. 11-20-13)
    Sec. 11-20-13. Removal of garbage, debris, and graffiti.
    (a) The corporate authorities of each municipality may
provide for the removal of garbage, debris, and graffiti from
any parcel of private property within the municipality if the
owner of that parcel, after reasonable notice, refuses or
neglects to remove the garbage, debris, and graffiti. The
municipality may collect, from the owner of the parcel, the
reasonable removal cost.
    (b) The municipality's removal cost under this Section is a
lien upon the underlying parcel in accordance with Section
11-20-15.
    (c) This amendatory Act of 1973 does not apply to any
municipality which is a home rule unit.
    (d) For the purpose of this Section, "removal cost" means
the total cost of the removal of garbage and debris. The term
"removal cost" does not include any cost associated with the
removal of graffiti.
    (e) In the case of an abandoned residential property as
defined in Section 11-20-15.1, the municipality may elect to
obtain a lien for the removal cost pursuant to Section
11-20-15.1, in which case the provisions of Section 11-20-15.1
shall be the exclusive remedy for the removal cost.
    The provisions of this subsection (e), other than this
sentence, are inoperative upon certification by the Secretary
of the Illinois Department of Financial and Professional
Regulation, after consultation with the United States
Department of Housing and Urban Development, that the Mortgage
Electronic Registration System program is effectively
registering substantially all mortgaged residential properties
located in the State of Illinois, is available for access by
all municipalities located in the State of Illinois without
charge to them, and such registration includes the telephone
number for the mortgage servicer.
(Source: P.A. 96-462, eff. 8-14-09.)
 
    (65 ILCS 5/11-20-15)
    Sec. 11-20-15. Lien for removal costs.
    (a) If the municipality incurs a removal cost under Section
11-20-7, 11-20-8, 11-20-12, or 11-20-13 with respect to any
underlying parcel, then that cost is a lien upon that
underlying parcel. This lien is superior to all other liens and
encumbrances, except tax liens and as otherwise provided in
subsection (c) of this Section.
    (b) To perfect a lien under this Section, the municipality
must, within one year after the removal cost is incurred, file
notice of lien in the office of the recorder in the county in
which the underlying parcel is located or, if the underlying
parcel is registered under the Torrens system, in the office of
the Registrar of Titles of that county. The notice must consist
of a sworn statement setting out:
        (1) a description of the underlying parcel that
    sufficiently identifies the parcel;
        (2) the amount of the removal cost; and
        (3) the date or dates when the removal cost was
    incurred by the municipality.
    If, for any one parcel, the municipality engaged in any
removal activity on more than one occasion during the course of
one year, then the municipality may combine any or all of the
costs of each of those activities into a single notice of lien.
    (c) A lien under this Section is not valid as to: (i) any
purchaser whose rights in and to the underlying parcel arose
after the removal activity but before the filing of the notice
of lien; or (ii) any mortgagee, judgment creditor, or other
lienor whose rights in and to the underlying parcel arose
before the filing of the notice of lien.
    (d) The removal cost is not a lien on the underlying parcel
unless a notice is personally served on, or sent by certified
mail to, the person to whom was sent the tax bill for the
general taxes on the property for the taxable year immediately
preceding the removal activities. The notice must be delivered
or sent after the removal activities have been performed, and
it must: (i) state the substance of this Section and the
substance of any ordinance of the municipality implementing
this Section; (ii) identify the underlying parcel, by common
description; and (iii) describe the removal activity.
    (e) A lien under this Section may be enforced by
proceedings to foreclose as in case of mortgages or mechanics'
liens. An action to foreclose a lien under this Section must be
commenced within 2 years after the date of filing notice of
lien.
    (f) Any person who performs a removal activity by the
authority of the municipality may, in his or her own name, file
a lien and foreclose on that lien in the same manner as a
municipality under this Section.
    (g) A failure to file a foreclosure action does not, in any
way, affect the validity of the lien against the underlying
parcel.
    (h) Upon payment of the lien cost by the owner of the
underlying parcel after notice of lien has been filed, the
municipality (or its agent under subsection (f)) shall release
the lien, and the release may be filed of record by the owner
at his or her sole expense as in the case of filing notice of
lien.
    (i) For the purposes of this Section:
    "Lien cost" means the removal cost and the filing costs for
any notice of lien under subsection (b).
    "Removal activity" means any activity for which a removal
cost was incurred.
    "Removal cost" means a removal cost as defined under
Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13.
    "Underlying parcel" means a parcel of private property upon
which a removal activity was performed.
    "Year" means a 365-day period.
    (j) This Section applies only to liens filed after August
14, 2009 (the effective date of Public Act 96-462) this
amendatory Act of the 96th General Assembly.
    (k) This Section shall not apply to a lien filed pursuant
to Section 11-20-15.1.
(Source: P.A. 96-462, eff. 8-14-09; revised 10-7-09.)
 
    (65 ILCS 5/11-20-15.1 new)
    Sec. 11-20-15.1. Lien for costs of removal, securing, and
enclosing on abandoned residential property.
    (a) If the municipality elects to incur a removal cost
pursuant to subsection (d) of Section 11-20-7, subsection (d)
of Section 11-20-8, subsection (d) of Section 11-20-12, or
subsection (e) of Section 11-20-13, or a securing or enclosing
cost pursuant to Section 11-31-1.01 with respect to an
abandoned residential property, then that cost is a lien upon
the underlying parcel of that abandoned residential property.
This lien is superior to all other liens and encumbrances,
except tax liens and as otherwise provided in this Section.
    (b) To perfect a lien under this Section, the municipality
must, within one year after the cost is incurred for the
activity, file notice of the lien in the office of the recorder
in the county in which the abandoned residential property is
located or, if the abandoned residential property is registered
under the Torrens system, in the office of the Registrar of
Titles of that county, a sworn statement setting out:
        (1) a description of the abandoned residential
    property that sufficiently identifies the parcel;
        (2) the amount of the cost of the activity;
        (3) the date or dates when the cost for the activity
    was incurred by the municipality; and
        (4) a statement that the lien has been filed pursuant
    to subsection (d) of Section 11-20-7, subsection (d) of
    Section 11-20-8, subsection (d) of Section 11-20-12,
    subsection (e) of Section 11-20-13, or Section 11-31-1.01,
    as applicable.
    If, for any abandoned residential property, the
municipality engaged in any activity on more than one occasion
during the course of one year, then the municipality may
combine any or all of the costs of each of those activities
into a single notice of lien.
    (c) To enforce a lien pursuant to this Section, the
municipality must maintain contemporaneous records that
include, at a minimum: (i) a dated statement of finding by the
municipality that the property for which the work is to be
performed has become abandoned residential property, which
shall include (1) the date when the property was first known or
observed to be unoccupied by any lawful occupant or occupants,
(2) a description of the actions taken by the municipality to
contact the legal owner or owners of the property identified on
the recorded mortgage, or, if known, any agent of the owner or
owners, including the dates such actions were taken, and (3) a
statement that no contacts were made with the legal owner or
owners or their agents as a result of such actions, (ii) a
dated certification by an authorized official of the
municipality of the necessity and specific nature of the work
to be performed, (iii) a copy of the agreement with the person
or entity performing the work that includes the legal name of
the person or entity, the rate or rates to be charged for
performing the work, and an estimate of the total cost of the
work to be performed, (iv) detailed invoices and payment
vouchers for all payments made by the municipality for such
work, and (v) a statement as to whether the work was engaged
through a competitive bidding process, and if so, a copy of all
proposals submitted by the bidders for such work.
    (d) A lien under this Section shall be enforceable
exclusively at the hearing for confirmation of sale of the
abandoned residential property that is held pursuant to
subsection (b) of Section 15-1508 of the Code of Civil
Procedure and shall be limited to a claim of interest in the
proceeds of the sale and subject to the requirements of this
Section. Any mortgagee who holds a mortgage on the property, or
any beneficiary or trustee who holds a deed of trust on the
property, may contest the lien or the amount of the lien at any
time during the foreclosure proceeding upon motion and notice
in accordance with court rules applicable to motions generally.
Grounds for forfeiture of the lien or the superior status of
the lien granted by subsection (a) of this Section shall
include, but not be limited to, a finding by the court that:
(i) the municipality has not complied with subsection (b) or
(c) of this Section, (ii) the scope of the work was not
reasonable under the circumstances, (iii) the work exceeded the
authorization for the work to be performed under subsection (a)
of Section 11-20-7, subsection (a) of Section 11-20-8,
subsection (a) of Section 11-20-12, subsection (a) of Section
11-20-13, or subsection (a) of Section 11-31-1.01, as
applicable, or (iv) the cost of the services rendered or
materials provided was not commercially reasonable. Forfeiture
of the superior status of the lien otherwise granted by this
Section shall not constitute a forfeiture of the lien as a
subordinate lien.
    (e) Upon payment of the amount of a lien filed under this
Section by the mortgagee, servicer, owner, or any other person,
the municipality shall release the lien, and the release may be
filed of record by the person making such payment at the
person's sole expense as in the case of filing notice of lien.
    (f) Notwithstanding any other provision of this Section, a
municipality may not file a lien pursuant to this Section for
activities performed pursuant to Section 11-20-7, Section
11-20-8, Section 11-20-12, Section 11-20-13, or Section
11-31-1.01, if: (i) the mortgagee or servicer of the abandoned
residential property has provided notice to the municipality
that the mortgagee or servicer has performed or will perform
the remedial actions specified in the notice that the
municipality otherwise might perform pursuant to subsection
(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
subsection (d) of Section 11-20-12, subsection (e) of Section
11-20-13, or Section 11-31-1.01, provided that the remedial
actions specified in the notice have been performed or are
performed or initiated in good faith within 30 days of such
notice; or (ii) the municipality has provided notice to the
mortgagee or servicer of a problem with the property requiring
the remedial actions specified in the notice that the
municipality otherwise would perform pursuant to subsection
(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
subsection (d) of Section 11-20-12, subsection (e) of Section
11-20-13, or Section 11-31-1.01, and the mortgagee or servicer
has performed or performs or initiates in good faith the
remedial actions specified in the notice within 30 days of such
notice.
    (g) This Section and subsection (d) of Section 11-20-7,
subsection (d) of Section 11-20-8, subsection (d) of Section
11-20-12, subsection (e) of Section 11-20-13, or Section
11-31-1.01 shall apply only to activities performed, costs
incurred, and liens filed after the effective date of this
amendatory Act of the 96th General Assembly.
    (h) For the purposes of this Section and subsection (d) of
Section 11-20-7, subsection (d) of Section 11-20-8, subsection
(d) of Section 11-20-12, subsection (e) of Section 11-20-13, or
Section 11-31-1.01:
    "Abandoned residential property" means any type of
permanent residential dwelling unit, including detached single
family structures, and townhouses, condominium units and
multifamily rental apartments covering the entire property,
and manufactured homes treated under Illinois law as real
estate and not as personal property, that has been unoccupied
by any lawful occupant or occupants for at least 90 days, and
for which after such 90 day period, the municipality has made
good faith efforts to contact the legal owner or owners of the
property identified on the recorded mortgage, or, if known, any
agent of the owner or owners, and no contact has been made. A
property for which the municipality has been given notice of
the order of confirmation of sale pursuant to subsection (b-10)
of Section 15-1508 of the Code of Civil Procedure shall not be
deemed to be an abandoned residential property for the purposes
of subsection (d) of Section 11-20-7, subsection (d) of Section
11-20-8, subsection (d) of Section 11-20-12, subsection (e) of
Section 11-20-13, and Section 11-31-1.01 of this Code.
    "MERS program" means the nationwide Mortgage Electronic
Registration System approved by Fannie Mae, Freddie Mac, and
Ginnie Mae that has been created by the mortgage banking
industry with the mission of registering every mortgage loan in
the United States to lawfully make information concerning each
residential mortgage loan and the property securing it
available by Internet access to mortgage originators,
servicers, warehouse lenders, wholesale lenders, retail
lenders, document custodians, settlement agents, title
companies, insurers, investors, county recorders, units of
local government, and consumers.
    (i) Any entity or person who performs a removal, securing,
or enclosing activity pursuant to the authority of a
municipality under subsection (d) of Section 11-20-7,
subsection (d) of Section 11-20-8, subsection (d) of Section
11-20-12, subsection (e) of Section 11-20-13, or Section
11-31-1.01, may, in its, his, or her own name, file a lien
pursuant to subsection (b) of this Section and appear in a
foreclosure action on that lien pursuant to subsection (d) of
this Section in the place of the municipality, provided that
the municipality shall remain subject to subsection (c) of this
Section, and such party shall be subject to all of the
provisions in this Section as if such party were the
municipality.
    (j) If prior to subsection (d) of Section 11-20-7,
subsection (d) of Section 11-20-8, subsection (d) of Section
11-20-12, and subsection (e) of Section 11-20-13 becoming
inoperative a lien is filed pursuant to any of those
subsections, then the lien shall remain in full force and
effect after the subsections have become inoperative, subject
to all of the provisions of this Section. If prior to the
repeal of Section 11-31-1.01 a lien is filed pursuant to
Section 11-31-1.01, then the lien shall remain in full force
and effect after the repeal of Section 11-31-1.01, subject to
all of the provisions of this Section.
 
    (65 ILCS 5/11-31-1.01 new)
    Sec. 11-31-1.01. Securing or enclosing abandoned
residential property.
    (a) In the case of securing or enclosing an abandoned
residential property as defined in Section 11-20-15.1, the
municipality may elect to secure or enclose the exterior of a
building or the underlying parcel on which it is located under
this Section without application to the circuit court, in which
case the provisions of Section 11-20-15.1 shall be the
exclusive remedy for the recovery of the costs of such
activity.
    (b) For the purposes of this Section:
        (1) "Secure" or "securing" means boarding up, closing
    off, or locking windows or entrances or otherwise making
    the interior of a building inaccessible to the general
    public; and
        (2) "Enclose" or "enclosing" means surrounding part or
    all of the abandoned residential property's underlying
    parcel with a fence or wall or otherwise making part or all
    of the abandoned residential property's underlying parcel
    inaccessible to the general public.
    (c) This Section is repealed upon certification by the
Secretary of the Illinois Department of Financial and
Professional Regulation, after consultation with the United
States Department of Housing and Urban Development, that the
Mortgage Electronic Registration System program is effectively
registering substantially all mortgaged residential properties
located in the State of Illinois, is available for access by
all municipalities located in the State of Illinois without
charge to them, and such registration includes the telephone
number for the mortgage servicer.
 
    Section 15. The Illinois Banking Act is amended by changing
Section 5c as follows:
 
    (205 ILCS 5/5c)  (from Ch. 17, par. 312.2)
    Sec. 5c. Ownership of a bankers' bank. A bank may acquire
shares of stock of a bank or holding company which owns or
controls such bank if the stock of such bank or company is
owned exclusively (except to the extent directors' qualifying
shares are required by law) by depository institutions or
depository institution holding companies and such bank or
company and all subsidiaries thereof are engaged exclusively in
providing services to or for other financial institutions,
their holding companies, and the officers, directors, and
employees of such institutions and companies, and in providing
services at the request of other financial institutions or
their holding companies (also referred to as a "bankers'
bank"). The bank may also provide products and services to its
officers, directors, and employees. In no event shall the total
amount of such stock held by a bank in such bank or holding
company exceed 10 percent of its capital and surplus (including
undivided profits) and in no event shall a bank acquire more
than 15 5 percent of any class of voting securities of such
bank or company.
(Source: P.A. 95-924, eff. 8-26-08.)
 
    Section 20. The Real Estate License Act of 2000 is amended
by changing Sections 1-10, 5-5, 5-10, 5-15, 5-20, 5-25, 5-35,
5-40, 5-45, 5-50, 5-60, 5-65, 5-70, 5-80, 5-85, 10-15, 10-30,
15-15, 15-35, 15-45, 15-65, 20-5, 20-10, 20-20, 20-25, 20-50,
20-55, 20-60, 20-65, 20-75, 20-85, 20-90, 20-95, 20-100,
20-110, 20-115, 25-5, 25-10, 25-13, 25-14, 25-15, 25-20, 25-25,
25-30, 25-35, 25-37, 30-5, 30-10, 30-15, 30-20, and 30-25 and
by adding Sections 5-6, 5-7, 5-26, 5-27, 5-28, 5-41, 5-46,
5-47, 10-35, 10-40, 20-21, 20-22, 20-62, 20-63, 20-64, 20-66,
20-67, 20-68, 20-69, 20-72, 20-73, 20-82, and 25-21 as follows:
 
    (225 ILCS 454/1-10)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 1-10. Definitions. In this Act, unless the context
otherwise requires:
    "Act" means the Real Estate License Act of 2000.
    "Address of Record" means the designated address recorded
by the Department in the applicant's or licensee's application
file or license file as maintained by the Department's
licensure maintenance unit. It is the duty of the applicant or
licensee to inform the Department of any change of address, and
those changes must be made either through the Department's
website or by contacting the Department.
    "Advisory Council" means the Real Estate Education
Advisory Council created under Section 30-10 of this Act.
    "Agency" means a relationship in which a real estate broker
or licensee, whether directly or through an affiliated
licensee, represents a consumer by the consumer's consent,
whether express or implied, in a real property transaction.
    "Applicant" means any person, as defined in this Section,
who applies to the Department OBRE for a valid license as a
real estate broker, real estate salesperson, or leasing agent.
    "Blind advertisement" means any real estate advertisement
that does not include the sponsoring broker's business name and
that is used by any licensee regarding the sale or lease of
real estate, including his or her own, licensed activities, or
the hiring of any licensee under this Act. The broker's
business name in the case of a franchise shall include the
franchise affiliation as well as the name of the individual
firm.
    "Board" means the Real Estate Administration and
Disciplinary Board of the Department as created by Section
25-10 of this Act OBRE.
    "Branch office" means a sponsoring broker's office other
than the sponsoring broker's principal office.
    "Broker" means an individual, partnership, limited
liability company, corporation, or registered limited
liability partnership other than a real estate salesperson or
leasing agent who, whether in person or through any media or
technology, for another and for compensation, or with the
intention or expectation of receiving compensation, either
directly or indirectly:
        (1) Sells, exchanges, purchases, rents, or leases real
    estate.
        (2) Offers to sell, exchange, purchase, rent, or lease
    real estate.
        (3) Negotiates, offers, attempts, or agrees to
    negotiate the sale, exchange, purchase, rental, or leasing
    of real estate.
        (4) Lists, offers, attempts, or agrees to list real
    estate for sale, lease, or exchange.
        (5) Buys, sells, offers to buy or sell, or otherwise
    deals in options on real estate or improvements thereon.
        (6) Supervises the collection, offer, attempt, or
    agreement to collect rent for the use of real estate.
        (7) Advertises or represents himself or herself as
    being engaged in the business of buying, selling,
    exchanging, renting, or leasing real estate.
        (8) Assists or directs in procuring or referring of
    leads or prospects, intended to result in the sale,
    exchange, lease, or rental of real estate.
        (9) Assists or directs in the negotiation of any
    transaction intended to result in the sale, exchange,
    lease, or rental of real estate.
        (10) Opens real estate to the public for marketing
    purposes.
        (11) Sells, leases, or offers for sale or lease real
    estate at auction.
    "Brokerage agreement" means a written or oral agreement
between a sponsoring broker and a consumer for licensed
activities to be provided to a consumer in return for
compensation or the right to receive compensation from another.
Brokerage agreements may constitute either a bilateral or a
unilateral agreement between the broker and the broker's client
depending upon the content of the brokerage agreement. All
exclusive brokerage agreements shall be in writing.
    "Client" means a person who is being represented by a
licensee.
    "Commissioner" means the Commissioner of Banks and Real
Estate or a person authorized by the Commissioner, the Office
of Banks and Real Estate Act, or this Act to act in the
Commissioner's stead.
    "Compensation" means the valuable consideration given by
one person or entity to another person or entity in exchange
for the performance of some activity or service. Compensation
shall include the transfer of valuable consideration,
including without limitation the following:
        (1) commissions;
        (2) referral fees;
        (3) bonuses;
        (4) prizes;
        (5) merchandise;
        (6) finder fees;
        (7) performance of services;
        (8) coupons or gift certificates;
        (9) discounts;
        (10) rebates;
        (11) a chance to win a raffle, drawing, lottery, or
    similar game of chance not prohibited by any other law or
    statute;
        (12) retainer fee; or
        (13) salary.
    "Confidential information" means information obtained by a
licensee from a client during the term of a brokerage agreement
that (i) was made confidential by the written request or
written instruction of the client, (ii) deals with the
negotiating position of the client, or (iii) is information the
disclosure of which could materially harm the negotiating
position of the client, unless at any time:
        (1) the client permits the disclosure of information
    given by that client by word or conduct;
        (2) the disclosure is required by law; or
        (3) the information becomes public from a source other
    than the licensee.
    "Confidential information" shall not be considered to
include material information about the physical condition of
the property.
    "Consumer" means a person or entity seeking or receiving
licensed activities.
    "Continuing education school" means any person licensed by
the Department OBRE as a school for continuing education in
accordance with Section 30-15 of this Act.
    "Coordinator" means the Coordinator of Real Estate created
in Section 25-15 of this Act.
    "Credit hour" means 50 minutes of classroom instruction in
course work that meets the requirements set forth in rules
adopted by the Department OBRE.
    "Customer" means a consumer who is not being represented by
the licensee but for whom the licensee is performing
ministerial acts.
    "Department" means the Department of Financial and
Professional Regulation.
    "Designated agency" means a contractual relationship
between a sponsoring broker and a client under Section 15-50 of
this Act in which one or more licensees associated with or
employed by the broker are designated as agent of the client.
    "Designated agent" means a sponsored licensee named by a
sponsoring broker as the legal agent of a client, as provided
for in Section 15-50 of this Act.
    "Director" means the Director of the Real Estate Division,
OBRE.
    "Dual agency" means an agency relationship in which a
licensee is representing both buyer and seller or both landlord
and tenant in the same transaction. When the agency
relationship is a designated agency, the question of whether
there is a dual agency shall be determined by the agency
relationships of the designated agent of the parties and not of
the sponsoring broker.
    "Employee" or other derivative of the word "employee", when
used to refer to, describe, or delineate the relationship
between a real estate broker and a real estate salesperson,
another real estate broker, or a leasing agent, shall be
construed to include an independent contractor relationship,
provided that a written agreement exists that clearly
establishes and states the relationship. All responsibilities
of a broker shall remain.
    "Escrow moneys" means all moneys, promissory notes or any
other type or manner of legal tender or financial consideration
deposited with any person for the benefit of the parties to the
transaction. A transaction exists once an agreement has been
reached and an accepted real estate contract signed or lease
agreed to by the parties. Escrow moneys includes without
limitation earnest moneys and security deposits, except those
security deposits in which the person holding the security
deposit is also the sole owner of the property being leased and
for which the security deposit is being held.
    "Exclusive brokerage agreement" means a written brokerage
agreement that provides that the sponsoring broker has the sole
right, through one or more sponsored licensees, to act as the
exclusive designated agent or representative of the client and
that meets the requirements of Section 15-75 of this Act.
    "Inoperative" means a status of licensure where the
licensee holds a current license under this Act, but the
licensee is prohibited from engaging in licensed activities
because the licensee is unsponsored or the license of the
sponsoring broker with whom the licensee is associated or by
whom he or she is employed is currently expired, revoked,
suspended, or otherwise rendered invalid under this Act.
    "Leads" means the name or names of a potential buyer,
seller, lessor, lessee, or client of a licensee.
    "Leasing Agent" means a person who is employed by a real
estate broker to engage in licensed activities limited to
leasing residential real estate who has obtained a license as
provided for in Section 5-5 of this Act.
    "License" means the document issued by the Department OBRE
certifying that the person named thereon has fulfilled all
requirements prerequisite to licensure under this Act.
    "Licensed activities" means those activities listed in the
definition of "broker" under this Section.
    "Licensee" means any person, as defined in this Section,
who holds a valid unexpired license as a real estate broker,
real estate salesperson, or leasing agent.
    "Listing presentation" means a communication between a
real estate broker or salesperson and a consumer in which the
licensee is attempting to secure a brokerage agreement with the
consumer to market the consumer's real estate for sale or
lease.
    "Managing broker" means a broker who has supervisory
responsibilities for licensees in one or, in the case of a
multi-office company, more than one office and who has been
appointed as such by the sponsoring broker.
    "Medium of advertising" means any method of communication
intended to influence the general public to use or purchase a
particular good or service or real estate.
    "Ministerial acts" means those acts that a licensee may
perform for a consumer that are informative or clerical in
nature and do not rise to the level of active representation on
behalf of a consumer. Examples of these acts include without
limitation (i) responding to phone inquiries by consumers as to
the availability and pricing of brokerage services, (ii)
responding to phone inquiries from a consumer concerning the
price or location of property, (iii) attending an open house
and responding to questions about the property from a consumer,
(iv) setting an appointment to view property, (v) responding to
questions of consumers walking into a licensee's office
concerning brokerage services offered or particular
properties, (vi) accompanying an appraiser, inspector,
contractor, or similar third party on a visit to a property,
(vii) describing a property or the property's condition in
response to a consumer's inquiry, (viii) completing business or
factual information for a consumer on an offer or contract to
purchase on behalf of a client, (ix) showing a client through a
property being sold by an owner on his or her own behalf, or
(x) referral to another broker or service provider.
    "OBRE" means the Office of Banks and Real Estate.
    "Office" means a real estate broker's place of business
where the general public is invited to transact business and
where records may be maintained and licenses displayed, whether
or not it is the broker's principal place of business.
    "Person" means and includes individuals, entities,
corporations, limited liability companies, registered limited
liability partnerships, and partnerships, foreign or domestic,
except that when the context otherwise requires, the term may
refer to a single individual or other described entity.
    "Personal assistant" means a licensed or unlicensed person
who has been hired for the purpose of aiding or assisting a
sponsored licensee in the performance of the sponsored
licensee's job.
    "Pocket card" means the card issued by the Department OBRE
to signify that the person named on the card is currently
licensed under this Act.
    "Pre-license school" means a school licensed by the
Department OBRE offering courses in subjects related to real
estate transactions, including the subjects upon which an
applicant is examined in determining fitness to receive a
license.
    "Pre-renewal period" means the period between the date of
issue of a currently valid license and the license's expiration
date.
    "Proctor" means any person, including, but not limited to,
an instructor, who has a written agreement to administer
examinations fairly and impartially with a licensed
pre-license school or a licensed continuing education school.
    "Real estate" means and includes leaseholds as well as any
other interest or estate in land, whether corporeal,
incorporeal, freehold, or non-freehold, including timeshare
interests, and whether the real estate is situated in this
State or elsewhere.
    "Regular employee" means a person working an average of 20
hours per week for a person or entity who would be considered
as an employee under the Internal Revenue Service eleven main
tests in three categories being behavioral control, financial
control and the type of relationship of the parties, formerly
the twenty factor test.
    "Real Estate Administration and Disciplinary Board" or
"Board" means the Real Estate Administration and Disciplinary
Board created by Section 25-10 of this Act.
    "Salesperson" means any individual, other than a real
estate broker or leasing agent, who is employed by a real
estate broker or is associated by written agreement with a real
estate broker as an independent contractor and participates in
any activity described in the definition of "broker" under this
Section.
    "Secretary" means the Secretary of the Department of
Financial and Professional Regulation, or a person authorized
by the Secretary to act in the Secretary's stead.
    "Sponsoring broker" means the broker who has issued a
sponsor card to a licensed salesperson, another licensed
broker, or a leasing agent.
    "Sponsor card" means the temporary permit issued by the
sponsoring real estate broker certifying that the real estate
broker, real estate salesperson, or leasing agent named thereon
is employed by or associated by written agreement with the
sponsoring real estate broker, as provided for in Section 5-40
of this Act.
(Source: P.A. 92-217, eff. 8-2-01; 93-957, eff. 8-19-04.)
 
    (225 ILCS 454/5-5)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-5. Leasing agent license.
    (a) The purpose of this Section is to provide for a limited
scope license to enable persons who wish to engage in
activities limited to the leasing of residential real property
for which a license is required under this Act, and only those
activities, to do so by obtaining the license provided for
under this Section.
    (b) Notwithstanding the other provisions of this Act, there
is hereby created a leasing agent license that shall enable the
licensee to engage only in residential leasing activities for
which a license is required under this Act. Such activities
include without limitation leasing or renting residential real
property, or attempting, offering, or negotiating to lease or
rent residential real property, or supervising the collection,
offer, attempt, or agreement to collect rent for the use of
residential real property. Nothing in this Section shall be
construed to require a licensed real estate broker or
salesperson to obtain a leasing agent license in order to
perform leasing activities for which a license is required
under this Act. Licensed leasing agents must be sponsored and
employed by a sponsoring broker.
    (c) The Department OBRE, by rule, with the advice of the
Board, shall provide for the licensing of leasing agents,
including the issuance, renewal, and administration of
licenses.
    (d) Notwithstanding any other provisions of this Act to the
contrary, a person may engage in residential leasing activities
for which a license is required under this Act, for a period of
120 consecutive days without being licensed, so long as the
person is acting under the supervision of a licensed real
estate broker and the broker has notified the Department OBRE
that the person is pursuing licensure under this Section.
During the 120 day period all requirements of Sections 5-10 and
5-65 of this Act with respect to education, successful
completion of an examination, and the payment of all required
fees must be satisfied. The Department OBRE may adopt rules to
ensure that the provisions of this subsection are not used in a
manner that enables an unlicensed person to repeatedly or
continually engage in activities for which a license is
required under this Act.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/5-6 new)
    Sec. 5-6. Social Security Number or Tax Identification
Number on license application. In addition to any other
information required to be contained in the application, every
application for an original or renewal license under this Act
shall include the applicant's Social Security Number or Tax
Identification Number.
 
    (225 ILCS 454/5-7 new)
    Sec. 5-7. Application for leasing agent license. Every
person who desires to obtain a leasing agent license shall
apply to the Department in writing on forms provided by the
Department which application shall be accompanied by the
required non-refundable fee. Any such application shall
require such information as in the judgment of the Department
will enable the Department to pass on the qualifications of the
applicant for licensure.
 
    (225 ILCS 454/5-10)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-10. Requirements for license as leasing agent.
Application for leasing agent license.
    (a) Every applicant for licensure as a leasing agent must
meet the following qualifications:
        (1) Every person who desires to obtain a leasing agent
    license shall apply to OBRE in writing on forms provided by
    OBRE. In addition to any other information required to be
    contained in the application, every application for an
    original or renewed leasing agent license shall include the
    applicant's Social Security number. All application or
    license fees must accompany the application. Each
    applicant must be at least 18 years of age;
        (2) , must be of good moral character; , shall have
        (3) successfully complete completed a 4-year course of
    study in a high school or secondary school or an equivalent
    course of study approved by the Illinois State Board of
    Education; , and shall successfully complete
        (4) personally take and pass a written examination
    authorized by the Department OBRE sufficient to
    demonstrate the applicant's knowledge of the provisions of
    this Act relating to leasing agents and the applicant's
    competence to engage in the activities of a licensed
    leasing agent; . Applicants must successfully complete
        (5) provide satisfactory evidence of having completed
    15 hours of instruction in an approved course of study
    relating to the leasing of residential real property. The
    course of study shall, among other topics, cover the
    provisions of this Act applicable to leasing agents; fair
    housing issues relating to residential leasing;
    advertising and marketing issues; leases, applications,
    and credit reports; owner-tenant relationships and
    owner-tenant laws; the handling of funds; and
    environmental issues relating to residential real
    property; .
        (6) complete any other requirements as set forth by
    rule; and
        (7) present a valid application for issuance of an
    initial license accompanied by a sponsor card and the fees
    specified by rule.
    (b) No applicant shall engage in any of the activities
covered by this Act until a valid sponsor card has been issued
to such applicant. The sponsor card shall be valid for a
maximum period of 45 days after the date of issuance unless
extended for good cause as provided by rule.
    (c) Successfully completed course work, completed pursuant
to the requirements of this Section, may be applied to the
course work requirements to obtain a real estate broker's or
salesperson's license as provided by rule. The Advisory Council
may shall recommend through the Board to the Department OBRE
and the Department may OBRE shall adopt requirements for
approved courses, course content, and the approval of courses,
instructors, and schools, as well as school and instructor
fees. The Department OBRE may establish continuing education
requirements for licensed leasing agents, by rule, with the
advice of the Advisory Council and Board.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/5-15)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-15. Necessity of managing broker, broker,
salesperson, or leasing agent license or sponsor card;
ownership restrictions.
    (a) It is unlawful for any person, corporation, limited
liability company, registered limited liability partnership,
or partnership to act as a managing broker, real estate broker,
real estate salesperson, or leasing agent or to advertise or
assume to act as such broker, salesperson, or leasing agent
without a properly issued sponsor card or a license issued
under this Act by the Department OBRE, either directly or
through its authorized designee.
    (b) No corporation shall be granted a license or engage in
the business or capacity, either directly or indirectly, of a
real estate broker, unless every officer of the corporation who
actively participates in the real estate activities of the
corporation holds a license as a managing broker or real estate
broker and unless every employee who acts as a salesperson, or
leasing agent for the corporation holds a license as a real
estate broker, salesperson, or leasing agent.
    (c) No partnership shall be granted a license or engage in
the business or serve in the capacity, either directly or
indirectly, of a real estate broker, unless every general
partner in the partnership holds a license as a managing broker
or real estate broker and unless every employee who acts as a
salesperson or leasing agent for the partnership holds a
license as a real estate broker, salesperson, or leasing agent.
In the case of a registered limited liability partnership
(LLP), every partner in the LLP must hold a license as a
managing broker or real estate broker and every employee who
acts as a salesperson or leasing agent must hold a license as a
real estate broker, salesperson, or leasing agent.
    (d) No limited liability company shall be granted a license
or engage in the business or serve in the capacity, either
directly or indirectly, of a real estate broker unless every
manager in the limited liability company or every member in a
member managed limited liability company holds a license as a
managing broker or real estate broker and unless every other
member and employee who acts as a salesperson or leasing agent
for the limited liability company holds a license as a real
estate broker, salesperson, or leasing agent.
    (e) No partnership, limited liability company, or
corporation shall be licensed to conduct a brokerage business
where an individual salesperson or leasing agent, or group of
salespersons or leasing agents, owns or directly or indirectly
controls more than 49% of the shares of stock or other
ownership in the partnership, limited liability company, or
corporation.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/5-20)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-20. Exemptions from broker, salesperson, or leasing
agent license requirement. The requirement for holding a
license under this Article 5 shall not apply to:
        (1) Any person, partnership, or corporation that as
    owner or lessor performs any of the acts described in the
    definition of "broker" under Section 1-10 of this Act with
    reference to property owned or leased by it, or to the
    regular employees thereof with respect to the property so
    owned or leased, where such acts are performed in the
    regular course of or as an incident to the management,
    sale, or other disposition of such property and the
    investment therein, provided that such regular employees
    do not perform any of the acts described in the definition
    of "broker" under Section 1-10 of this Act in connection
    with a vocation of selling or leasing any real estate or
    the improvements thereon not so owned or leased.
        (2) An attorney in fact acting under a duly executed
    and recorded power of attorney to convey real estate from
    the owner or lessor or the services rendered by an attorney
    at law in the performance of the attorney's duty as an
    attorney at law.
        (3) Any person acting as receiver, trustee in
    bankruptcy, administrator, executor, or guardian or while
    acting under a court order or under the authority of a will
    or testamentary trust.
        (4) Any person acting as a resident manager for the
    owner or any employee acting as the resident manager for a
    broker managing an apartment building, duplex, or
    apartment complex, when the resident manager resides on the
    premises, the premises is his or her primary residence, and
    the resident manager is engaged in the leasing of the
    property of which he or she is the resident manager.
        (5) Any officer or employee of a federal agency in the
    conduct of official duties.
        (6) Any officer or employee of the State government or
    any political subdivision thereof performing official
    duties.
    (7) Any multiple listing service or other similar
information exchange that is engaged in the collection and
dissemination of information concerning real estate available
for sale, purchase, lease, or exchange for the purpose of
providing licensees with a system by which licensees may
cooperatively share information along with which no other
licensed activities, as defined in Section 1-10 of this Act,
are provided.
        (8) Railroads and other public utilities regulated by
    the State of Illinois, or the officers or full time
    employees thereof, unless the performance of any licensed
    activities is in connection with the sale, purchase, lease,
    or other disposition of real estate or investment therein
    not needing the approval of the appropriate State
    regulatory authority.
        (9) Any medium of advertising in the routine course of
    selling or publishing advertising along with which no other
    licensed activities, as defined in Section 1-10 of this
    Act, are provided.
        (10) Any resident lessee of a residential dwelling unit
    who refers for compensation to the owner of the dwelling
    unit, or to the owner's agent, prospective lessees of
    dwelling units in the same building or complex as the
    resident lessee's unit, but only if the resident lessee (i)
    refers no more than 3 prospective lessees in any 12-month
    period, (ii) receives compensation of no more than $1,500
    $1,000 or the equivalent of one month's rent, whichever is
    less, in any 12-month period, and (iii) limits his or her
    activities to referring prospective lessees to the owner,
    or the owner's agent, and does not show a residential
    dwelling unit to a prospective lessee, discuss terms or
    conditions of leasing a dwelling unit with a prospective
    lessee, or otherwise participate in the negotiation of the
    leasing of a dwelling unit.
        (11) An exchange company registered under the Real
    Estate Timeshare Act of 1999 and the regular employees of
    that registered exchange company but only when conducting
    an exchange program as defined in that Act.
        (12) An existing timeshare owner who, for
    compensation, refers prospective purchasers, but only if
    the existing timeshare owner (i) refers no more than 20
    prospective purchasers in any calendar year, (ii) receives
    no more than $1,000, or its equivalent, for referrals in
    any calendar year and (iii) limits his or her activities to
    referring prospective purchasers of timeshare interests to
    the developer or the developer's employees or agents, and
    does not show, discuss terms or conditions of purchase or
    otherwise participate in negotiations with regard to
    timeshare interests.
        (13) Any person who is licensed without examination
    under Section 10-25 (now repealed) of the Auction License
    Act is exempt from holding a broker's or salesperson's
    license under this Act for the limited purpose of selling
    or leasing real estate at auction, so long as:
            (A) that person has made application for said
        exemption by July 1, 2000;
            (B) that person verifies to the Department OBRE
        that he or she has sold real estate at auction for a
        period of 5 years prior to licensure as an auctioneer;
            (C) the person has had no lapse in his or her
        license as an auctioneer; and
            (D) the license issued under the Auction License
        Act has not been disciplined for violation of those
        provisions of Article 20 of the Auction License Act
        dealing with or related to the sale or lease of real
        estate at auction.
        (14) A hotel operator who is registered with the
    Illinois Department of Revenue and pays taxes under the
    Hotel Operators' Occupation Tax Act and rents a room or
    rooms in a hotel as defined in the Hotel Operators'
    Occupation Tax Act for a period of not more than 30
    consecutive days and not more than 60 days in a calendar
    year.
(Source: P.A. 96-328, eff. 8-11-09.)
 
    (225 ILCS 454/5-25)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-25. Good moral character. Application for and
issuance of broker or salesperson license.
    (a) Every person who desires to obtain a license shall make
application to OBRE in writing upon forms prepared and
furnished by OBRE. In addition to any other information
required to be contained in the application, every application
for an original or renewed license shall include the
applicant's Social Security number. Each applicant shall be at
least 21 years of age, be of good moral character, and have
successfully completed a 4-year course of study in a high
school or secondary school approved by the Illinois State Board
of Education or an equivalent course of study as determined by
an examination conducted by the Illinois State Board of
Education and shall be verified under oath by the applicant.
The minimum age of 21 years shall be waived for any person
seeking a license as a real estate salesperson who has attained
the age of 18 and can provide evidence of the successful
completion of at least 4 semesters of post-secondary school
study as a full-time student or the equivalent, with major
emphasis on real estate courses, in a school approved by OBRE.
    (b) When an applicant has had his or her license revoked on
a prior occasion or when an applicant is found to have
committed any of the practices enumerated in Section 20-20 of
this Act or when an applicant has been convicted of or enters a
plea of guilty or nolo contendere to forgery, embezzlement,
obtaining money under false pretenses, larceny, extortion,
conspiracy to defraud, or any other similar offense or offenses
or has been convicted of a felony involving moral turpitude in
any court of competent jurisdiction in this or any other state,
district, or territory of the United States or of a foreign
country, the Board may consider the prior revocation, conduct,
or conviction in its determination of the applicant's moral
character and whether to grant the applicant a license. In its
consideration of the prior revocation, conduct, or conviction,
the Board shall take into account the nature of the conduct,
any aggravating or extenuating circumstances, the time elapsed
since the revocation, conduct, or conviction, the
rehabilitation or restitution performed by the applicant, and
any other factors that the Board deems relevant. When an
applicant has made a false statement of material fact on his or
her application, the false statement may in itself be
sufficient grounds to revoke or refuse to issue a license.
    (c) Every valid application for issuance of an initial
license shall be accompanied by a sponsor card and the fees
specified by rule.
    (d) No applicant shall engage in any of the activities
covered by this Act until a valid sponsor card has been issued
to such applicant. The sponsor card shall be valid for a
maximum period of 45 days from the date of issuance unless
extended for good cause as provided by rule.
    (e) OBRE shall issue to each applicant entitled thereto a
license in such form and size as shall be prescribed by OBRE.
The procedure for terminating a license shall be printed on the
reverse side of the license. Each license shall bear the name
of the person so qualified, shall specify whether the person is
qualified to act in a broker or salesperson capacity, and shall
contain such other information as shall be recommended by the
Board and approved by OBRE. Each person licensed under this Act
shall display his or her license conspicuously in his or her
place of business.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/5-26 new)
    Sec. 5-26. Requirements for license as a salesperson.
    (a) Every applicant for licensure as a salesperson must
meet the following qualifications:
        (1) Be at least 21 years of age. The minimum age of 21
    years shall be waived for any person seeking a license as a
    real estate salesperson who has attained the age of 18 and
    can provide evidence of the successful completion of at
    least 4 semesters of post-secondary school study as a
    full-time student or the equivalent, with major emphasis on
    real estate courses, in a school approved by the
    Department;
        (2) Be of good moral character;
        (3) Successfully complete a 4-year course of study in a
    high school or secondary school approved by the Illinois
    State Board of Education or an equivalent course of study
    as determined by an examination conducted by the Illinois
    State Board of Education, which shall be verified under
    oath by the applicant;
        (4) Provide satisfactory evidence of having completed
    at least 45 hours of instruction in real estate courses
    approved by the Advisory Council, except applicants who are
    currently admitted to practice law by the Supreme Court of
    Illinois and are currently in active standing;
        (5) Shall personally take and pass a written
    examination authorized by the Department; and
        (6) Present a valid application for issuance of a
    license accompanied by a sponsor card and the fees
    specified by rule.
    (b) No applicant shall engage in any of the activities
covered by this Act until a valid sponsor card has been issued
to the applicant. The sponsor card shall be valid for a maximum
period of 45 days after the date of issuance unless extended
for good cause as provided by rule.
    (c) All licenses should be readily available to the public
at their sponsoring place of business.
    (d) No new salesperson licenses shall be issued after April
30, 2011 and all existing salesperson licenses shall terminate
on May 1, 2012.
 
    (225 ILCS 454/5-27 new)
    Sec. 5-27. Requirements for licensure as a broker.
    (a) Every applicant for licensure as a broker must meet the
following qualifications:
        (1) Be at least 21 years of age. After April 30, 2011,
    the minimum age of 21 years shall be waived for any person
    seeking a license as a broker who has attained the age of
    18 and can provide evidence of the successful completion of
    at least 4 semesters of post-secondary school study as a
    full-time student or the equivalent, with major emphasis on
    real estate courses, in a school approved by the
    Department;
        (2) Be of good moral character;
        (3) Successfully complete a 4-year course of study in a
    high school or secondary school approved by the Illinois
    State Board of Education or an equivalent course of study
    as determined by an examination conducted by the Illinois
    State Board of Education which shall be verified under oath
    by the applicant;
        (4) Prior to May 1, 2011, provide (i) satisfactory
    evidence of having completed at least 120 classroom hours,
    45 of which shall be those hours required to obtain a
    salesperson's license plus 15 hours in brokerage
    administration courses, in real estate courses approved by
    the Advisory Council or (ii) for applicants who currently
    hold a valid real estate salesperson's license, give
    satisfactory evidence of having completed at least 75 hours
    in real estate courses, not including the courses that are
    required to obtain a salesperson's license, approved by the
    Advisory Council;
        (5) After April 30, 2011, provide satisfactory
    evidence of having completed 90 hours of instruction in
    real estate courses approved by the Advisory Council, 15
    hours of which must consist of situational and case studies
    presented in the classroom or by other interactive delivery
    method presenting instruction and real time discussion
    between the instructor and the students;
        (6) Personally take and pass a written examination
    authorized by the Department;
        (7) Present a valid application for issuance of a
    license accompanied by a sponsor card and the fees
    specified by rule.
    (b) The requirements specified in items (4) and (5) of
subsection (a) of this Section do not apply to applicants who
are currently admitted to practice law by the Supreme Court of
Illinois and are currently in active standing.
    (c) No applicant shall engage in any of the activities
covered by this Act until a valid sponsor card has been issued
to such applicant. The sponsor card shall be valid for a
maximum period of 45 days after the date of issuance unless
extended for good cause as provided by rule.
    (d) All licenses should be readily available to the public
at their place of business.
 
    (225 ILCS 454/5-28 new)
    Sec. 5-28. Requirements for licensure as a managing broker.
    (a) Effective May 1, 2012, every applicant for licensure as
a managing broker must meet the following qualifications:
        (1) be at least 21 years of age;
        (2) be of good moral character;
        (3) have been licensed at least 2 out of the preceding
    3 years as a real estate broker or salesperson;
        (4) successfully complete a 4-year course of study in
    high school or secondary school approved by the Illinois
    State Board of Education or an equivalent course of study
    as determined by an examination conducted by the Illinois
    State Board of Education, which shall be verified under
    oath by the applicant;
        (5) provide satisfactory evidence of having completed
    at least 165 hours, 120 of which shall be those hours
    required pre and post-licensure to obtain a broker's
    license, and 45 additional hours completed within the year
    immediately preceding the filing of an application for a
    managing broker's license, which hours shall focus on
    brokerage administration and management and include at
    least 15 hours in the classroom or by other interactive
    delivery method presenting instructional and real time
    discussion between the instructor and the students;
        (6) personally take and pass a written examination
    authorized by the Department; and
        (7) present a valid application for issuance of a
    license accompanied by a sponsor card, an appointment as a
    managing broker, and the fees specified by rule.
    (b) The requirements specified in item (5) of subsection
(a) of this Section do not apply to applicants who are
currently admitted to practice law by the Supreme Court of
Illinois and are currently in active standing.
    (c) No applicant shall act as a managing broker for more
than 90 days after an appointment as a managing broker has been
filed with the Department without obtaining a managing broker's
license.
 
    (225 ILCS 454/5-35)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-35. Examination; managing broker, broker, or
salesperson, or leasing agent.
    (a) The Department shall authorize Every person who makes
application for an original license as a broker or salesperson
shall personally take and pass a written examination authorized
by OBRE and answer any questions that may be required to
determine the good moral character of the applicant and the
applicant's competency to transact the business of broker or
salesperson, as the case may be, in such a manner as to
safeguard the interests of the public. In determining this
competency, OBRE shall require proof that the applicant has a
good understanding and the knowledge to conduct real estate
brokerage and of the provisions of this Act. The examination
shall be prepared by an independent testing service designated
by OBRE, subject to the approval of the examinations by the
Board. The designated independent testing service shall
conduct the examinations at such times and places as it may
designate. The examination shall be of a character to give a
fair test of the qualifications of the applicant to practice as
a managing broker, broker, salesperson, or leasing agent.
Applicants for examination as a managing broker, broker,
salesperson, or leasing agent shall be required to pay, either
to the Department or the designated testing service, a fee
covering the cost of providing the examination. Failure to
appear for the examination on the scheduled date, at the time
and place specified, after the applicant's application for
examination has been received and acknowledged by the
Department or the designated testing service, shall result in
the forfeiture of the examination fee. OBRE shall approve. In
addition, every person who desires to take the written
examination shall make application to do so to OBRE or to the
designated independent testing service in writing upon forms
approved by OBRE. An applicant shall be eligible to take the
examination only after successfully completing the education
requirements, set forth in Section 5-30 of this Act, and
attaining the minimum age provided for specified in Article 5
of this Act. Each applicant shall be required to establish
compliance with the eligibility requirements in the manner
provided by the rules promulgated for the administration of
this Act.
    (b) If a person who has received a passing score on the
written examination described in this Section fails to file an
application and meet all requirements for a license under this
Act within one year after receiving a passing score on the
examination, credit for the examination shall terminate. The
person thereafter may make a new application for examination.
    (c) If an applicant has failed an examination 4 3 times,
the applicant must repeat the pre-license education required to
sit for the examination. For the purposes of this Section, the
fifth fourth attempt shall be the same as the first. Approved
education, as prescribed by this Act for licensure as a
salesperson or broker, shall be valid for 4 3 years after the
date of satisfactory completion of the education.
    (d) The Department may employ consultants for the purposes
of preparing and conducting examinations.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/5-40)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-40. Sponsor card; termination indicated by license
endorsement; association with new broker.
    (a) The sponsoring broker shall prepare upon forms provided
by the Department OBRE and deliver to each licensee employed by
or associated with the sponsoring broker a sponsor card
certifying that the person whose name appears thereon is in
fact employed by or associated with the sponsoring broker. The
sponsoring broker shall send, by certified mail, return receipt
requested, or other delivery service requiring a signature upon
delivery, a duplicate of each sponsor card, along with a valid
license or other authorization as provided by rule and the
appropriate fee, to the Department OBRE within 24 hours of
issuance of the sponsor card. It is a violation of this Act for
any broker to issue a sponsor card to any licensee or applicant
unless the licensee or applicant presents in hand a valid
license or other authorization as provided by rule.
    (b) When a licensee terminates his or her employment or
association with a sponsoring broker or the employment is
terminated by the sponsoring broker, the licensee shall obtain
from the sponsoring broker his or her license endorsed by the
sponsoring broker indicating the termination. The sponsoring
broker shall surrender to the Department OBRE a copy of the
license of the licensee within 2 days of the termination or
shall notify the Department OBRE in writing of the termination
and explain why a copy of the license is not surrendered.
Failure of the sponsoring broker to surrender the license shall
subject the sponsoring broker to discipline under Section 20-20
of this Act. The license of any licensee whose association with
a sponsoring broker is terminated shall automatically become
inoperative immediately upon the termination unless the
licensee accepts employment or becomes associated with a new
sponsoring broker pursuant to subsection (c) of this Section.
    (c) When a licensee accepts employment or association with
a new sponsoring broker, the new sponsoring broker shall send
to the Department , by certified mail, return receipt requested,
or other delivery service requiring a signature upon delivery,
to OBRE a duplicate sponsor card, along with the licensee's
endorsed license or an affidavit of the licensee of why the
endorsed license is not surrendered, and shall pay the
appropriate fee prescribed by rule to cover administrative
expenses attendant to the changes in the registration of the
licensee.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/5-41 new)
    Sec. 5-41. Change of address. A licensee shall notify the
Department of the address or addresses, and of every change of
address, where the licensee practices as a leasing agent,
salesperson, broker or managing broker.
 
    (225 ILCS 454/5-45)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-45. Offices.
    (a) If a sponsoring broker maintains more than one office
within the State, the sponsoring broker shall apply for a
branch office license for each office other than the sponsoring
broker's principal place of business. The branch office license
shall be displayed conspicuously in each branch office. The
name of each branch office shall be the same as that of the
sponsoring broker's principal office or shall clearly
delineate the branch office's relationship with the principal
office.
    (b) The sponsoring broker shall name a managing broker for
each branch office and the sponsoring broker shall be
responsible for supervising all managing brokers. The
sponsoring broker shall notify the Department OBRE in writing
of the name of all managing brokers of the sponsoring broker
and the office or offices they manage. Any person initially
named as a managing broker after April 30, 2011 must either (i)
be licensed as a managing broker or (ii) meet all the
requirements to be licensed as a managing broker except the
required education and examination and secure the managing
broker's license within 90 days of being named as a managing
broker. Any changes in managing brokers shall be reported to
the Department OBRE in writing within 15 days of the change.
Failure to do so shall subject the sponsoring broker to
discipline under Section 20-20 of this Act.
    (c) The sponsoring broker shall immediately notify the
Department OBRE in writing of any opening, closing, or change
in location of any principal or branch office.
    (d) Except as provided in this Section, each sponsoring
broker shall maintain a definite office, or place of business
within this State for the transaction of real estate business,
shall conspicuously display an identification sign on the
outside of his or her office of adequate size and visibility,
and shall conspicuously display his or her license in his or
her office or place of business and also the licenses of all
persons associated with or employed by the sponsoring broker
who primarily work at that location. The office or place of
business shall not be located in any retail or financial
business establishment unless it is separated from the other
business by a separate and distinct area within the
establishment. A broker who is licensed in this State by
examination or pursuant to the provisions of Section 5-60 of
this Act shall not be required to maintain a definite office or
place of business in this State provided all of the following
conditions are met:
        (1) the broker maintains an active broker's license in
    the broker's state of domicile;
        (2) the broker maintains an office in the broker's
    state of domicile; and
        (3) the broker has filed with the Department OBRE
    written statements appointing the Secretary Commissioner
    to act as the broker's agent upon whom all judicial and
    other process or legal notices directed to the licensee may
    be served and agreeing to abide by all of the provisions of
    this Act with respect to his or her real estate activities
    within the State of Illinois and submitting to the
    jurisdiction of the Department OBRE.
    The statements under subdivision (3) of this Section shall
be in form and substance the same as those statements required
under Section 5-60 of this Act and shall operate to the same
extent.
    (e) Upon the loss of a managing broker who is not replaced
by the sponsoring broker or in the event of the death or
adjudicated disability of the sole proprietor of an office, a
written request for authorization allowing the continued
operation of the office may be submitted to the Department OBRE
within 15 days of the loss. The Department OBRE may issue a
written authorization allowing the continued operation,
provided that a licensed broker, or in the case of the death or
adjudicated disability of a sole proprietor, the
representative of the estate, assumes responsibility, in
writing, for the operation of the office and agrees to
personally supervise the operation of the office. No such
written authorization shall be valid for more than 60 days
unless extended by the Department OBRE for good cause shown and
upon written request by the broker or representative.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/5-46 new)
    Sec. 5-46. Transition from salesperson's license to
broker's license.
    (a) No new salesperson licenses shall be issued by the
Department after April 30, 2011 and existing salesperson
licenses shall end as of 11:59 p.m. on April 30, 2012. The
following transition rules shall apply to individuals holding a
salesperson's license as of April 30, 2011 and seeking to
obtain a broker's license:
        (1) provide evidence of having completed 30 hours of
    post-license education in courses approved by the Advisory
    Council and having passed a written examination approved by
    the Department and administered by a licensed pre-license
    school; or
        (2) provide evidence of passing a Department-approved
    proficiency examination administered by a licensed
    pre-license school, which proficiency examination may only
    be taken one time by any one individual salesperson; and
        (3) present a valid application for a broker's license
    no later than April 30, 2012 accompanied by a sponsor card
    and the fees specified by rule.
    (b) The education requirements specified in clause (1) of
subsection (a) of this Section do not apply to applicants who
are currently admitted to practice law by the Supreme Court of
Illinois and are currently in active standing.
    (c) No applicant may engage in any of the activities
covered by this Act until a valid sponsor card has been issued
to such applicant. The sponsor card shall be valid for a
maximum period of 45 days after the date of issuance unless
extended for good cause as provided by rule.
 
    (225 ILCS 454/5-47 new)
    Sec. 5-47. Transition to managing broker's license.
    (a) A new license for managing brokers is created effective
May 1, 2011. The following transition rules shall apply for
those brokers listed as managing brokers with the Department as
of April 30, 2011. Those individuals licensed as brokers and
listed as managing brokers with the Department as of April 30,
2011 must meet the following qualifications to obtain a
managing broker's license:
        (1) provide evidence of having completed the 45 hours
    of broker management education approved by the Advisory
    Council and having passed a written examination approved by
    the Department and administered by a licensed pre-license
    school; or
        (2) provide evidence of passing a Department-approved
    proficiency examination administered by a licensed
    pre-license school, which proficiency examination may only
    be taken one time by any one individual broker; and
        (3) present a valid application for a managing broker's
    license no later than April 30, 2012 accompanied by a
    sponsor card and the fees specified by rule.
    (b) The education requirements specified in item (1) of
subsection (a) of this Section do not apply to applicants who
are currently admitted to practice law by the Supreme Court of
Illinois and are currently in active standing.
 
    (225 ILCS 454/5-50)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-50. Expiration date and renewal period of managing
broker, broker, salesperson, or leasing agent license;
sponsoring broker; register of licensees; pocket card.
    (a) The expiration date and renewal period for each license
issued under this Act shall be set by rule, except that the
first renewal period ending after the effective date of this
Act for those licensed as a salesperson shall be extended
through April 30, 2012. Except as otherwise provided in this
Section 5-55 of this Act, the holder of a license may renew the
license within 90 days preceding the expiration date thereof by
completing the continuing education required by this Act and
paying the fees specified by rule. Upon written request from
the sponsoring broker, OBRE shall prepare and mail to the
sponsoring broker a listing of licensees under this Act who,
according to the records of OBRE, are sponsored by that broker.
Every licensee associated with or employed by a broker whose
license is revoked, suspended, terminated, or expired shall be
considered as inoperative until such time as the sponsoring
broker's license is reinstated or renewed, or the licensee
changes employment as set forth in subsection (c) of Section
5-40 of this Act.
    (b) An individual whose first license is that of a broker
received after April 30, 2011, must provide evidence of having
completed 30 hours of post-license education in courses
approved by the Advisory Council, 15 hours of which must
consist of situational and case studies presented in the
classroom or by other interactive delivery method presenting
instruction and real time discussion between the instructor and
the students, and personally take and pass an examination
approved by the Department prior to the first renewal of their
broker's license. OBRE shall establish and maintain a register
of all persons currently licensed by the State and shall issue
and prescribe a form of pocket card. Upon payment by a licensee
of the appropriate fee as prescribed by rule for engagement in
the activity for which the licensee is qualified and holds a
license for the current period, OBRE shall issue a pocket card
to the licensee. The pocket card shall be verification that the
required fee for the current period has been paid and shall
indicate that the person named thereon is licensed for the
current renewal period as a broker, salesperson, or leasing
agent as the case may be. The pocket card shall further
indicate that the person named thereon is authorized by OBRE to
engage in the licensed activity appropriate for his or her
status (broker, salesperson, or leasing agent). Each licensee
shall carry on his or her person his or her pocket card or, if
such pocket card has not yet been issued, a properly issued
sponsor card when engaging in any licensed activity and shall
display the same on demand.
    (c) Any managing broker, broker, salesperson or leasing
agent whose license under this Act has expired shall be
eligible to renew the license during the 2-year period
following the expiration date, provided the managing broker,
broker, salesperson or leasing agent pays the fees as
prescribed by rule and completes continuing education and other
requirements provided for by the Act or by rule. A managing
broker, broker, salesperson or leasing agent whose license has
been expired for more than 2 years shall be required to meet
the requirements for a new license. Any person licensed as a
broker shall be entitled at any renewal date to change his or
her license status from broker to salesperson.
    (d) Notwithstanding any other provisions of this Act to the
contrary, any managing broker, broker, salesperson or leasing
agent whose license expired while he or she was (i) on active
duty with the Armed Forces of the United States or called into
service or training by the state militia, (ii) engaged in
training or education under the supervision of the United
States preliminary to induction into military service, or (iii)
serving as the Coordinator of Real Estate in the State of
Illinois or as an employee of the Department may have his or
her license renewed, reinstated or restored without paying any
lapsed renewal fees if within 2 years after the termination of
the service, training or education by furnishing the Department
with satisfactory evidence of service, training, or education
and it has been terminated under honorable conditions.
     (e) The Department shall establish and maintain a register
of all persons currently licensed by the State and shall issue
and prescribe a form of pocket card. Upon payment by a licensee
of the appropriate fee as prescribed by rule for engagement in
the activity for which the licensee is qualified and holds a
license for the current period, the Department shall issue a
pocket card to the licensee. The pocket card shall be
verification that the required fee for the current period has
been paid and shall indicate that the person named thereon is
licensed for the current renewal period as a managing broker,
broker, salesperson, or leasing agent as the case may be. The
pocket card shall further indicate that the person named
thereon is authorized by the Department to engage in the
licensed activity appropriate for his or her status (managing
broker, broker, salesperson, or leasing agent). Each licensee
shall carry on his or her person his or her pocket card or, if
such pocket card has not yet been issued, a properly issued
sponsor card when engaging in any licensed activity and shall
display the same on demand.
    (f) The Department shall provide to the sponsoring broker a
notice of renewal for all sponsored licensees by mailing the
notice to the sponsoring broker's address of record, or, at the
Department's discretion, by an electronic means as provided for
by rule.
    (g) Upon request from the sponsoring broker, the Department
shall make available to the sponsoring broker, either by mail
or by an electronic means at the discretion of the Department,
a listing of licensees under this Act who, according to the
records of the Department, are sponsored by that broker. Every
licensee associated with or employed by a broker whose license
is revoked, suspended, terminated, or expired shall be
considered as inoperative until such time as the sponsoring
broker's license is reinstated or renewed, or the licensee
changes employment as set forth in subsection (c) of Section
5-40 of this Act.
(Source: P.A. 93-957, eff. 8-19-04.)
 
    (225 ILCS 454/5-60)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-60. Managing broker Broker licensed in another
state; broker licensed in another state; nonresident
salesperson licensed in another state; reciprocal agreements;
agent for service of process.
    (a) Effective May 1, 2011, a managing broker's license may
be issued by the Department to a managing broker or its
equivalent licensed under the laws of another state of the
United States, under the following conditions:
        (1) the managing broker holds a managing broker's
    license in a state that has entered into a reciprocal
    agreement with the Department;
        (2) the standards for that state for licensing as a
    managing broker are substantially equal to or greater than
    the minimum standards in the State of Illinois;
        (3) the managing broker has been actively practicing as
    a managing broker in the managing broker's state of
    licensure for a period of not less than 2 years,
    immediately prior to the date of application;
        (4) the managing broker furnishes the Department with a
    statement under seal of the proper licensing authority of
    the state in which the managing broker is licensed showing
    that the managing broker has an active managing broker's
    license, that the managing broker is in good standing, and
    that no complaints are pending against the managing broker
    in that state;
        (5) the managing broker passes a test on Illinois
    specific real estate brokerage laws; and
        (6) the managing broker was licensed by an examination
    in the state that has entered into a reciprocal agreement
    with the Department.
    (b) A broker's license may be issued by the Department OBRE
to a broker or its equivalent licensed under the laws of
another state of the United States, under the following
conditions:
        (1) the broker holds a broker's license in a state that
    has entered into a reciprocal agreement with the Department
    his or her state of domicile;
        (2) the standards for that state for licensing as a
    broker are substantially equivalent to or greater than the
    minimum standards in the State of Illinois;
        (3) if the application is made prior to May 1, 2012,
    then the broker has been actively practicing as a broker in
    the broker's state of licensure domicile for a period of
    not less than 2 years, immediately prior to the date of
    application;
        (4) the broker furnishes the Department OBRE with a
    statement under seal of the proper licensing authority of
    the state in which the broker is licensed showing that the
    broker has an active broker's license, that the broker is
    in good standing, and that no complaints are pending
    against the broker in that state;
        (5) the broker completes a course of education and
    passes a test on Illinois specific real estate brokerage
    laws; and
        (6) the broker was licensed by an examination in a
    state that has entered into OBRE has a reciprocal agreement
    with the Department that state that includes the provisions
    of this Section.
    (c) (b) Prior to May 1, 2011, a salesperson A nonresident
salesperson employed by or associated with a nonresident broker
holding a broker's license in this State pursuant to this
Section may, in the discretion of the Department OBRE, be
issued a nonresident salesperson's license under the
nonresident broker provided all of the following conditions are
met:
        (1) the salesperson maintains an active license in the
    state that has entered into a reciprocal agreement with the
    Department in which he or she is domiciled;
        (2) the salesperson passes a test on Illinois specific
    real estate brokerage laws; and is domiciled in the same
    state as the broker with whom he or she is associated;
        (3) the salesperson was licensed by an examination in
    the state that has entered into a reciprocal agreement with
    the Department. completes a course of education and passes
    a test on Illinois specific real estate brokerage laws; and
        (4) OBRE has a reciprocal agreement with that state
    that includes the provisions of this Section.
    The nonresident broker with whom the salesperson is
associated shall comply with the provisions of this Act and
issue the salesperson a sponsor card upon the form provided by
the Department OBRE.
    (d) (c) As a condition precedent to the issuance of a
license to a managing broker, nonresident broker, or
salesperson pursuant to this Section, the managing broker or
salesperson shall agree in writing to abide by all the
provisions of this Act with respect to his or her real estate
activities within the State of Illinois and submit to the
jurisdiction of the Department OBRE as provided in this Act.
The agreement shall be filed with the Department OBRE and shall
remain in force for so long as the managing broker, nonresident
broker or salesperson is licensed by this State and thereafter
with respect to acts or omissions committed while licensed as a
broker or salesperson in this State.
    (e) (d) Prior to the issuance of any license to any
managing broker, broker, or salesperson licensed pursuant to
this Section nonresident, verification of active licensure
issued for the conduct of such business in any other state must
be filed with the Department OBRE by the managing broker,
broker, or salesperson nonresident, and the same fees must be
paid as provided in this Act for the obtaining of a managing
broker's, broker's or salesperson's license in this State.
    (f) (e) Licenses previously granted under reciprocal
agreements with other states shall remain in force so long as
the Department OBRE has a reciprocal agreement with the state
that includes the requirements of this Section, unless that
license is suspended, revoked, or terminated by the Department
OBRE for any reason provided for suspension, revocation, or
termination of a resident licensee's license. Licenses granted
under reciprocal agreements may be renewed in the same manner
as a resident's license.
    (g) (f) Prior to the issuance of a license to a nonresident
managing broker, broker or salesperson, the managing broker,
broker or salesperson shall file with the Department OBRE a
designation in writing that appoints the Secretary
Commissioner to act as his or her agent upon whom all judicial
and other process or legal notices directed to the managing
broker, broker or salesperson may be served. Service upon the
agent so designated shall be equivalent to personal service
upon the licensee. Copies of the appointment, certified by the
Secretary Commissioner, shall be deemed sufficient evidence
thereof and shall be admitted in evidence with the same force
and effect as the original thereof might be admitted. In the
written designation, the managing broker, broker or
salesperson shall agree that any lawful process against the
licensee that is served upon the agent shall be of the same
legal force and validity as if served upon the licensee and
that the authority shall continue in force so long as any
liability remains outstanding in this State. Upon the receipt
of any process or notice, the Secretary Commissioner shall
forthwith mail a copy of the same by certified mail to the last
known business address of the licensee.
    (h) (g) Any person holding a valid license under this
Section shall be eligible to obtain a resident managing
broker's license, a broker's license, or, prior to May 1, 2011,
a salesperson's license without examination should that person
change their state of domicile to Illinois and that person
otherwise meets the qualifications for or licensure under this
Act.
(Source: P.A. 91-245, eff. 12-31-99; 91-702, eff. 5-12-00.)
 
    (225 ILCS 454/5-65)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-65. Fees. The Department OBRE shall provide by rule
for fees to be paid by applicants and licensees to cover the
reasonable costs of the Department OBRE in administering and
enforcing the provisions of this Act. The Department OBRE may
also provide by rule for general fees to cover the reasonable
expenses of carrying out other functions and responsibilities
under this Act.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/5-70)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-70. Continuing education requirement; managing
broker, broker, or salesperson.
    (a) The requirements of this Section apply to all managing
brokers, brokers, and salespersons licensees.
    (b) Except as otherwise provided in this Section, each
person who applies for renewal of his or her license as a
managing broker, real estate broker, or real estate salesperson
must successfully complete 6 hours of real estate continuing
education courses approved by the Advisory Council for each
year of the pre-renewal period. Broker licensees must
successfully complete a 6-hour broker management continuing
education course approved by the Department for the pre-renewal
period ending April 30, 2010 at the rate of 6 hours per year or
its equivalent. In addition, beginning with the pre-renewal
period for managing broker licensees that begins after the
effective date of this Act, those licensees renewing or
obtaining a managing amendatory Act of the 93rd General
Assembly, to renew a real estate broker's license, the licensee
must successfully complete a 12-hour 6-hour broker management
continuing education course approved by the Department each
pre-renewal period. The broker management continuing education
course must be completed in the classroom or by other
interactive delivery method presenting instruction and real
time discussion between the instructor and the students OBRE.
Successful completion of the course shall include achieving a
passing score as provided by rule on a test developed and
administered in accordance with rules adopted by the Department
OBRE. Beginning on the first day of the pre-renewal period for
broker licensees that begins after the effective date of this
amendatory Act of the 93rd General Assembly, the 6-hour broker
management continuing education course must be completed by all
persons receiving their initial broker's license within 180
days after the date of initial licensure as a broker. No
license may be renewed except upon the successful completion of
the required courses or their equivalent or upon a waiver of
those requirements for good cause shown as determined by the
Secretary Commissioner with the recommendation of the Advisory
Council. The requirements of this Article are applicable to all
managing brokers, brokers, and salespersons except those
brokers and salespersons who, during the pre-renewal period:
        (1) serve in the armed services of the United States;
        (2) serve as an elected State or federal official;
        (3) serve as a full-time employee of the Department
    OBRE; or
        (4) are admitted to practice law pursuant to Illinois
    Supreme Court rule.
    (c) A person licensed as a salesperson as of April 30, 2011
who is issued an initial license as a real estate salesperson
less than one year prior to the expiration date of that license
shall not be required to complete the 18 hours of continuing
education for the pre-renewal period ending April 30, 2012 if
that person takes the 30-hour post-licensing course to obtain a
broker's license. A person licensed as a broker as of April 30,
2011 shall not be required to complete the 12 hours of broker
management continuing education for the pre-renewal period
ending April 30, 2012, unless that person passes the
proficiency exam provided for in Section 5-47 of this Act to
qualify for a managing broker's license continuing education as
a condition of license renewal. A person who is issued an
initial license as a real estate broker less than one year
prior to the expiration date of that license and who has not
been licensed as a real estate salesperson during the
pre-renewal period shall not be required to complete continuing
education as a condition of license renewal.
    (d) A person receiving an initial license as a real estate
broker during the 90 days before the broker renewal date shall
not be required to complete the broker management continuing
education courses course provided for in subsection (b) of this
Section as a condition of initial license renewal.
    (e) (d) The continuing education requirement for
salespersons, brokers and managing brokers shall consist of a
core curriculum and an elective curriculum, to be established
by the Advisory Council. In meeting the continuing education
requirements of this Act, at least 3 hours per year or their
equivalent, 6 hours for each two-year pre-renewal period, shall
be required to be completed in the core curriculum. In
establishing the core curriculum, the Advisory Council shall
consider subjects that will educate licensees on recent changes
in applicable laws and new laws and refresh the licensee on
areas of the license law and the Department OBRE policy that
the Advisory Council deems appropriate, and any other areas
that the Advisory Council deems timely and applicable in order
to prevent violations of this Act and to protect the public. In
establishing the elective curriculum, the Advisory Council
shall consider subjects that cover the various aspects of the
practice of real estate that are covered under the scope of
this Act. However, the elective curriculum shall not include
any offerings referred to in Section 5-85 of this Act.
    (f) (e) The subject areas of continuing education courses
approved by the Advisory Council may include without limitation
the following:
        (1) license law and escrow;
        (2) antitrust;
        (3) fair housing;
        (4) agency;
        (5) appraisal;
        (6) property management;
        (7) residential brokerage;
        (8) farm property management;
        (9) rights and duties of sellers, buyers, and brokers;
        (10) commercial brokerage and leasing; and
        (11) real estate financing.
    (g) (f) In lieu of credit for those courses listed in
subsection (f) (e) of this Section, credit may be earned for
serving as a licensed instructor in an approved course of
continuing education. The amount of credit earned for teaching
a course shall be the amount of continuing education credit for
which the course is approved for licensees taking the course.
    (h) (g) Credit hours may be earned for self-study programs
approved by the Advisory Council.
    (i) (h) A broker or salesperson may earn credit for a
specific continuing education course only once during the
prerenewal period.
    (j) (i) No more than 6 hours of continuing education credit
may be taken or earned in one calendar day.
    (k) (j) To promote the offering of a uniform and consistent
course content, the Department OBRE may provide for the
development of a single broker management course to be offered
by all continuing education providers who choose to offer the
broker management continuing education course. The Department
OBRE may contract for the development of the 6-hour broker
management continuing education course with an outside vendor
or consultant and, if the course is developed in this manner,
the Department or the outside consultant OBRE shall license the
use of that course to all approved continuing education
providers who wish to provide the course.
    (l) Except as specifically provided in this Act, continuing
education credit hours may not be earned for completion of pre
or post-license courses. The approved 30-hour post-license
course for broker licensees shall satisfy the continuing
education requirement for the pre-renewal period in which the
course is taken. The approved 45-hour brokerage administration
and management course shall satisfy the 12-hour broker
management continuing education requirement for the
pre-renewal period in which the course is taken.
(Source: P.A. 93-957, eff. 8-19-04.)
 
    (225 ILCS 454/5-80)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-80. Evidence of compliance with continuing
education requirements.
    (a) Each renewal applicant shall certify, on his or her
renewal application, full compliance with continuing education
requirements set forth in Section 5-70. The continuing
education school shall retain and submit to the Department OBRE
after the completion of each course evidence of those
successfully completing the course as provided by rule.
    (b) The Department OBRE may require additional evidence
demonstrating compliance with the continuing education
requirements. The renewal applicant shall retain and produce
the evidence of compliance upon request of the Department OBRE.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/5-85)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5-85. Offerings not meeting continuing education
requirements. The following offerings do not meet the
continuing education requirements:
        (1) Examination preparation offerings, except as
    provided in Section 5-70 of this Act.
        (2) Offerings in mechanical office and business skills
    such as typing, speed reading, memory improvement,
    advertising, or psychology of sales.
        (3) Sales promotion or other meetings held in
    conjunction with the general business of the attendee or
    his or her employer.
        (4) Meetings that are a normal part of in-house staff
    or employee training.
    The offerings listed in this Section do not limit the
Advisory Council's authority to disapprove any course that
fails to meet the standards of this Article 5 or rules adopted
by the Department OBRE.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/10-15)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 10-15. No compensation to persons in violation of Act;
compensation to unlicensed persons; consumer.
    (a) No compensation may be paid to any unlicensed person in
exchange for the person performing licensed activities in
violation of this Act.
    (b) No action or suit shall be instituted, nor recovery
therein be had, in any court of this State by any person,
partnership, registered limited liability partnership, limited
liability company, or corporation for compensation for any act
done or service performed, the doing or performing of which is
prohibited by this Act to other than licensed managing brokers,
brokers, salespersons, or leasing agents unless the person,
partnership, registered limited liability partnership, limited
liability company, or corporation was duly licensed hereunder
as a managing broker, broker, salesperson, or leasing agent
under this Act at the time that any such act was done or
service performed that would give rise to a cause of action for
compensation.
    (c) A licensee may offer compensation, including prizes,
merchandise, services, rebates, discounts, or other
consideration to an unlicensed person who is a party to a
contract to buy or sell real estate or is a party to a contract
for the lease of real estate, so long as the offer complies
with the provisions of subdivision (35) (26) of subsection (a)
(h) of Section 20-20 of this Act.
    (d) A licensee may offer cash, gifts, prizes, awards,
coupons, merchandise, rebates or chances to win a game of
chance, if not prohibited by any other law or statute, to a
consumer as an inducement to that consumer to use the services
of the licensee even if the licensee and consumer do not
ultimately enter into a broker-client relationship so long as
the offer complies with the provisions of subdivision (35) (26)
of subsection (a) (h) of Section 20-20 of this Act.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/10-30)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 10-30. Advertising.
    (a) No advertising, whether in print, via the Internet, or
through any other media, shall be fraudulent, deceptive,
inherently misleading, or proven to be misleading in practice.
Advertising It shall be considered misleading or untruthful if,
when taken as a whole, there is a distinct and reasonable
possibility that it will be misunderstood or will deceive the
ordinary purchaser, seller, lessee, lessor, or owner.
Advertising shall contain all information necessary to
communicate the information contained therein to the public in
an accurate, a direct, and readily comprehensible manner.
    (b) No blind advertisements may be used by any licensee, in
any media, except as provided for in this Section.
    (c) A licensee shall disclose, in writing, to all parties
in a transaction his or her status as a licensee and any and
all interest the licensee has or may have in the real estate
constituting the subject matter thereof, directly or
indirectly, according to the following guidelines:
        (1) On broker yard signs or in broker advertisements,
    no disclosure of ownership is necessary. However, the
    ownership shall be indicated on any property data form and
    disclosed to persons responding to any advertisement or any
    sign. The term "broker owned" or "agent owned" is
    sufficient disclosure.
        (2) A sponsored or inoperative licensee selling or
    leasing property, owned solely by the sponsored or
    inoperative licensee, without utilizing brokerage services
    of their sponsoring broker or any other licensee, may
    advertise "By Owner". For purposes of this Section,
    property is "solely owned" by a sponsored or inoperative
    licensee if he or she (i) has a 100% ownership interest
    alone, (ii) has ownership as a joint tenant or tenant by
    the entirety, or (iii) holds a 100% beneficial interest in
    a land trust. Sponsored or inoperative licensees selling or
    leasing "By Owner" shall comply with the following if
    advertising by owner:
            (A) On "By Owner" yard signs, the sponsored or
        inoperative licensee shall indicate "broker owned" or
        "agent owned." "By Owner" advertisements used in any
        medium of advertising shall include the term "broker
        owned" or "agent owned."
            (B) If a sponsored or inoperative licensee runs
        advertisements, for the purpose of purchasing or
        leasing real estate, he or she shall disclose in the
        advertisements his or her status as a licensee.
            (C) A sponsored or inoperative licensee shall not
        use the sponsoring broker's name or the sponsoring
        broker's company name in connection with the sale,
        lease, or advertisement of the property nor utilize the
        sponsoring broker's or company's name in connection
        with the sale, lease, or advertising of the property in
        a manner likely to create confusion among the public as
        to whether or not the services of a real estate company
        are being utilized or whether or not a real estate
        company has an ownership interest in the property.
    (d) A sponsored licensee may not advertise under his or her
own name. Advertising in any media shall be under the direct
supervision of the sponsoring or managing broker and in the
sponsoring broker's business name, which in the case of a
franchise shall include the franchise affiliation as well as
the name of the individual firm. This provision does not apply
under the following circumstances:
        (1) When a licensee enters into a brokerage agreement
    relating to his or her own real estate, or real estate in
    which he or she has an ownership interest, with another
    licensed broker; or
        (2) When a licensee is selling or leasing his or her
    own real estate or buying or leasing real estate for
    himself or herself, after providing the appropriate
    written disclosure of his or her ownership interest as
    required in paragraph (2) of subsection (c) of this
    Section.
    (e) No licensee shall list his or her name under the
heading or title "Real Estate" in the telephone directory or
otherwise advertise in his or her own name to the general
public through any medium of advertising as being in the real
estate business without listing his or her sponsoring broker's
business name.
    (f) The sponsoring broker's business name and the name of
the licensee must appear in all advertisements, including
business cards. Nothing in this Act shall be construed to
require specific print size as between the broker's business
name and the name of the licensee.
    (g) Those individuals licensed as a managing broker and
designated with the Department as a managing broker by their
sponsoring broker shall identify themselves to the public in
advertising as a managing broker. No other individuals holding
a managing broker's license may hold themselves out to the
public or other licensees as a managing broker.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/10-35 new)
    Sec. 10-35. Internet and related advertising.
    (a) Licensees intending to sell or share consumer
information gathered from or through the Internet or other
electronic communication media shall disclose that intention
to consumers in a timely and readily apparent manner.
    (b) A licensee using Internet or other similar electronic
advertising media must not:
        (1) use a URL or domain name that is deceptive or
    misleading;
        (2) deceptively or without authorization frame another
    real estate brokerage or multiple listing service website;
    or
        (3) engage in the deceptive use of metatags, keywords
    or other devices and methods to direct, drive or divert
    Internet traffic or otherwise mislead consumers.
 
    (225 ILCS 454/10-40 new)
    Sec. 10-40. Company policy. Every brokerage company or
entity, other than a sole proprietorship with no other
sponsored licensees, shall adopt a company or office policy
dealing with topics such as:
        (1) the agency policy of the entity;
        (2) fair housing, nondiscrimination and harassment;
        (3) confidentiality of client information;
        (4) advertising;
        (5) training and supervision of sponsored licensees;
        (6) required disclosures and use of forms;
        (7) handling of risk management matters; and
        (8) handling of earnest money and escrows.
    These topics are provided as an example and are not
intended to be inclusive or exclusive of other topics.
 
    (225 ILCS 454/15-15)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 15-15. Duties of licensees representing clients.
    (a) A licensee representing a client shall:
        (1) Perform the terms of the brokerage agreement
    between a broker and the client.
        (2) Promote the best interest of the client by:
            (A) Seeking a transaction at the price and terms
        stated in the brokerage agreement or at a price and
        terms otherwise acceptable to the client.
            (B) Timely presenting all offers to and from the
        client, unless the client has waived this duty.
            (C) Disclosing to the client material facts
        concerning the transaction of which the licensee has
        actual knowledge, unless that information is
        confidential information. Material facts do not
        include the following when located on or related to
        real estate that is not the subject of the transaction:
        (i) physical conditions that do not have a substantial
        adverse effect on the value of the real estate, (ii)
        fact situations, or (iii) occurrences.
            (D) Timely accounting for all money and property
        received in which the client has, may have, or should
        have had an interest.
            (E) Obeying specific directions of the client that
        are not otherwise contrary to applicable statutes,
        ordinances, or rules.
            (F) Acting in a manner consistent with promoting
        the client's best interests as opposed to a licensee's
        or any other person's self-interest.
        (3) Exercise reasonable skill and care in the
    performance of brokerage services.
        (4) Keep confidential all confidential information
    received from the client.
        (5) Comply with all requirements of this Act and all
    applicable statutes and regulations, including without
    limitation fair housing and civil rights statutes.
    (b) A licensee representing a client does not breach a duty
or obligation to the client by showing alternative properties
to prospective buyers or tenants, or by showing properties in
which the client is interested to other prospective buyers or
tenants, or by making or preparing contemporaneous offers or
contracts to purchase or lease the same property. However, a
licensee shall provide written disclosure to all clients for
whom the licensee is preparing or making contemporaneous offers
or contracts to purchase or lease the same property and shall
refer to another designated agent any client that requests such
referral.
    (c) A licensee representing a buyer or tenant client will
not be presumed to have breached a duty or obligation to that
client by working on the basis that the licensee will receive a
higher fee or compensation based on higher selling price or
lease cost.
    (d) A licensee shall not be liable to a client for
providing false information to the client if the false
information was provided to the licensee by a customer unless
the licensee knew or should have known the information was
false.
    (e) Nothing in the Section shall be construed as changing a
licensee's duty under common law as to negligent or fraudulent
misrepresentation of material information.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/15-35)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 15-35. Agency relationship disclosure.
    (a) A licensee shall advise a consumer in writing shall be
advised of the following no later than beginning to work as a
designated agent on behalf of the consumer entering into a
brokerage agreement with the sponsoring broker:
        (1) That a designated agency relationship exists,
    unless there is written agreement between the sponsoring
    broker and the consumer providing for a different brokerage
    relationship.
        (2) The name or names of his or her designated agent or
    agents. The written disclosure can be included in a
    brokerage agreement or be a separate document, a copy of
    which is retained by the sponsoring broker for the licensee
    in writing.
    (b) (3) The licensee representing the consumer shall
discuss with the consumer the sponsoring broker's compensation
and policy with regard to cooperating with brokers who
represent other parties in a transaction.
    (c) (b) A licensee shall disclose in writing to a customer
that the licensee is not acting as the agent of the customer at
a time intended to prevent disclosure of confidential
information from a customer to a licensee, but in no event
later than the preparation of an offer to purchase or lease
real property. This subsection (b) does not apply to
residential lease or rental transactions unless the lease or
rental agreement includes an option to purchase real estate.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/15-45)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 15-45. Dual agency.
    (a) A licensee may act as a dual agent only with the
informed written consent of all clients. Informed written
consent shall be presumed to have been given by any client who
signs a document that includes the following:
        "The undersigned (insert name(s)), ("Licensee"), may
    undertake a dual representation (represent both the seller
    or landlord and the buyer or tenant) for the sale or lease
    of property. The undersigned acknowledge they were
    informed of the possibility of this type of representation.
    Before signing this document please read the following:
    Representing more than one party to a transaction presents
    a conflict of interest since both clients may rely upon
    Licensee's advice and the client's respective interests
    may be adverse to each other. Licensee will undertake this
    representation only with the written consent of ALL clients
    in the transaction. Any agreement between the clients as to
    a final contract price and other terms is a result of
    negotiations between the clients acting in their own best
    interests and on their own behalf. You acknowledge that
    Licensee has explained the implications of dual
    representation, including the risks involved, and
    understand that you have been advised to seek independent
    advice from your advisors or attorneys before signing any
    documents in this transaction.
WHAT A LICENSEE CAN DO FOR CLIENTS
WHEN ACTING AS A DUAL AGENT
    1. Treat all clients honestly.
    2. Provide information about the property to the buyer or
    tenant.
    3. Disclose all latent material defects in the property
    that are known to the Licensee.
    4. Disclose financial qualification of the buyer or tenant
    to the seller or landlord.
    5. Explain real estate terms.
    6. Help the buyer or tenant to arrange for property
    inspections.
    7. Explain closing costs and procedures.
    8. Help the buyer compare financing alternatives.
    9. Provide information about comparable properties that
    have sold so both clients may make educated decisions on
    what price to accept or offer.
WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
ACTING AS A DUAL AGENT
    1. Confidential information that Licensee may know about a
    client, without that client's permission.
    2. The price or terms the seller or landlord will take
    other than the listing price without permission of the
    seller or landlord.
    3. The price or terms the buyer or tenant is willing to pay
    without permission of the buyer or tenant.
    4. A recommended or suggested price or terms the buyer or
    tenant should offer.
    5. A recommended or suggested price or terms the seller or
    landlord should counter with or accept.
        If either client is uncomfortable with this disclosure
    and dual representation, please let Licensee know. You are
    not required to sign this document unless you want to allow
    Licensee to proceed as a Dual Agent in this transaction. By
    signing below, you acknowledge that you have read and
    understand this form and voluntarily consent to Licensee
    acting as a Dual Agent (that is, to represent BOTH the
    seller or landlord and the buyer or tenant) should that
    become necessary."
    (b) The dual agency disclosure form provided for in
subsection (a) of this Section must be presented by a licensee,
who offers dual representation, to the client at the time the
brokerage agreement is entered into and may be signed by the
client at that time or at any time before the licensee acts as
a dual agent as to the client.
    (c) A licensee acting in a dual agency capacity in a
transaction must obtain a written confirmation from the
licensee's clients of their prior consent for the licensee to
act as a dual agent in the transaction. This confirmation
should be obtained at the time the clients are executing any
offer or contract to purchase or lease in a transaction in
which the licensee is acting as a dual agent. This confirmation
may be included in another document, such as a contract to
purchase, in which case the client must not only sign the
document but also initial the confirmation of dual agency
provision. That confirmation must state, at a minimum, the
following:
        "The undersigned confirm that they have previously
    consented to (insert name(s)), ("Licensee"), acting as a
    Dual Agent in providing brokerage services on their behalf
    and specifically consent to Licensee acting as a Dual Agent
    in regard to the transaction referred to in this document."
    (d) No cause of action shall arise on behalf of any person
against a dual agent for making disclosures allowed or required
by this Article, and the dual agent does not terminate any
agency relationship by making the allowed or required
disclosures.
    (e) In the case of dual agency, each client and the
licensee possess only actual knowledge and information. There
shall be no imputation of knowledge or information among or
between clients, brokers, or their affiliated licensees.
    (f) In any transaction, a licensee may without liability
withdraw from representing a client who has not consented to a
disclosed dual agency. The withdrawal shall not prejudice the
ability of the licensee to continue to represent the other
client in the transaction or limit the licensee from
representing the client in other transactions. When a
withdrawal as contemplated in this subsection (f) occurs, the
licensee shall not receive a referral fee for referring a
client to another licensee unless written disclosure is made to
both the withdrawing client and the client that continues to be
represented by the licensee.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/15-65)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 15-65. Regulatory enforcement. Nothing contained in
this Article limits the Department OBRE in its regulation of
licensees under other Articles of this Act and the substantive
rules adopted by the Department OBRE. The Department OBRE, with
the advice of the Board, is authorized to promulgate any rules
that may be necessary for the implementation and enforcement of
this Article 15.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-5)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-5. Index of decisions. The Department OBRE shall
maintain an index of formal decisions regarding the issuance,
refusal to issue, renewal, refusal to renew, revocation, and
suspension of licenses and probationary or other disciplinary
action taken under this Act on or after December 31, 1999. The
decisions shall be indexed according to the Sections of
statutes and the administrative rules, if any, that are the
basis for the decision. The index shall be available to the
public during regular business hours.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-10)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-10. Unlicensed practice; civil penalty.
    (a) Any person who practices, offers to practice, attempts
to practice, or holds oneself out to practice as a real estate
broker, real estate salesperson, or leasing agent without being
licensed under this Act shall, in addition to any other penalty
provided by law, pay a civil penalty fine to the Department
OBRE in an amount not to exceed $25,000 for each offense as
determined by the Department OBRE. The civil penalty fine shall
be assessed by the Department OBRE after a hearing is held in
accordance with the provisions set forth in this Act regarding
the provision of a hearing for the discipline of a license.
    (b) The Department OBRE has the authority and power to
investigate any and all unlicensed activity.
    (c) The civil penalty fine shall be paid within 60 days
after the effective date of the order imposing the civil
penalty fine. The order shall constitute a judgment judgement
and may be filed and execution had thereon in the same manner
from any court of record.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-20)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-20. Grounds for discipline Disciplinary actions;
causes.
    (a) The Department OBRE may refuse to issue or renew a
license, may place on probation, suspend, or revoke any
license, or may censure, reprimand, or take any other
disciplinary or non-disciplinary action as the Department may
deem proper otherwise discipline or impose a civil fine not to
exceed $25,000 upon any licensee under this Act or against a
licensee in handling his or her own property, whether held by
deed, option, or otherwise, hereunder for any one or any
combination of the following causes:
        (1) Fraud or misrepresentation in applying for, or
    procuring, a license under this Act or in connection with
    applying for renewal of a license under this Act. (a) When
    the applicant or licensee has, by false or fraudulent
    representation, obtained or sought to obtain a license.
        (2) The conviction of, plea of guilty or plea of nolo
    contendre to a felony or misdemeanor (b) When the applicant
    or licensee has been convicted of any crime, an essential
    element of which is dishonesty or fraud or larceny,
    embezzlement, or obtaining money, property, or credit by
    false pretenses or by means of a confidence game, in has
    been convicted in this or another state of a crime that is
    a felony under the laws of this State, or any other
    jurisdiction has been convicted of a felony in a federal
    court.
        (3) Inability to practice the profession with
    reasonable judgment, skill, or safety as a result of a
    physical illness, including, but not limited to,
    deterioration through the aging process or loss of motor
    skill, or a mental illness or disability (c) When the
    applicant or licensee has been adjudged to be a person
    under legal disability or subject to involuntary admission
    or to meet the standard for judicial admission as provided
    in the Mental Health and Developmental Disabilities Code.
        (4) Practice under this Act as a (d) When the licensee
    performs or attempts to perform any act as a broker or
    salesperson in a retail sales establishment from an office,
    desk, or space that is not separated from the main retail
    business by a separate and distinct area within the
    establishment.
        (5) Disciplinary action of another state or
    jurisdiction against the license or other authorization to
    practice as a managing broker, broker, salesperson, or
    leasing agent (e) Discipline of a licensee by another
    state, the District of Columbia, a territory, a foreign
    nation, a governmental agency, or any other entity
    authorized to impose discipline if at least one of the
    grounds for that discipline is the same as or the
    equivalent of one of the grounds for discipline set forth
    in this Act. A certified copy of the record of the action
    by the other state or jurisdiction shall be prima facie
    evidence thereof , in which case the only issue will be
    whether one of the grounds for that discipline is the same
    or equivalent to one of the grounds for discipline under
    this Act.
        (6) Engaging in the practice of (f) When the applicant
    or licensee has engaged in real estate brokerage activity
    without a license or after the licensee's license was
    expired or while the license was inoperative.
        (7) Cheating on or attempting (g) When the applicant or
    licensee attempts to subvert or cheat on the Real Estate
    License Exam or continuing education exam.
        (8) Aiding or abetting aids and abets an applicant to
    subvert or cheat on the Real Estate License Exam or
    continuing education exam administered pursuant to this
    Act.
        (9) Advertising that is inaccurate, misleading, or
    contrary to the provisions of the Act. (h) When the
    licensee in performing, attempting to perform, or
    pretending to perform any act as a broker, salesperson, or
    leasing agent or when the licensee in handling his or her
    own property, whether held by deed, option, or otherwise,
    is found guilty of:
        (10) (1) Making any substantial misrepresentation or
    untruthful advertising.
        (11) (2) Making any false promises of a character
    likely to influence, persuade, or induce.
        (12) (3) Pursuing a continued and flagrant course of
    misrepresentation or the making of false promises through
    licensees, employees, agents, advertising, or otherwise.
        (13) (4) Any misleading or untruthful advertising, or
    using any trade name or insignia of membership in any real
    estate organization of which the licensee is not a member.
        (14) (5) Acting for more than one party in a
    transaction without providing written notice to all
    parties for whom the licensee acts.
        (15) (6) Representing or attempting to represent a
    broker other than the sponsoring broker.
        (16) (7) Failure to account for or to remit any moneys
    or documents coming into his or her possession that belong
    to others.
        (17) (8) Failure to maintain and deposit in a special
    account, separate and apart from personal and other
    business accounts, all escrow moneys belonging to others
    entrusted to a licensee while acting as a real estate
    broker, escrow agent, or temporary custodian of the funds
    of others or failure to maintain all escrow moneys on
    deposit in the account until the transactions are
    consummated or terminated, except to the extent that the
    moneys, or any part thereof, shall be:
            (A) disbursed prior to the consummation or
        termination (i) in accordance with the written
        direction of the principals to the transaction or their
        duly authorized agents, (ii) in accordance with
        directions providing for the release, payment, or
        distribution of escrow moneys contained in any written
        contract signed by the principals to the transaction or
        their duly authorized agents, or (iii) pursuant to an
        order of a court of competent jurisdiction; or
            (B) deemed abandoned and transferred to the Office
        of the State Treasurer to be handled as unclaimed
        property pursuant to the Uniform Disposition of
        Unclaimed Property Act. Escrow moneys may be deemed
        abandoned under this subparagraph (B) only: (i) in the
        absence of disbursement under subparagraph (A); (ii)
        in the absence of notice of the filing of any claim in
        a court of competent jurisdiction; and (iii) if 6
        months have elapsed after the receipt of a written
        demand for the escrow moneys from one of the principals
        to the transaction or the principal's duly authorized
        agent.
    The account shall be noninterest bearing, unless the
    character of the deposit is such that payment of interest
    thereon is otherwise required by law or unless the
    principals to the transaction specifically require, in
    writing, that the deposit be placed in an interest bearing
    account.
        (18) (9) Failure to make available to the Department
    real estate enforcement personnel of OBRE during normal
    business hours all escrow records and related documents
    maintained in connection with the practice of real estate
    within 24 hours of a request for those documents by
    Department OBRE personnel.
        (19) (10) Failing to furnish copies upon request of all
    documents relating to a real estate transaction to a party
    who has executed that document all parties executing them.
        (20) (11) Failure of a sponsoring broker to timely
    provide information, sponsor cards, or termination of
    licenses to the Department OBRE.
        (21) (12) Engaging in dishonorable, unethical, or
    unprofessional conduct of a character likely to deceive,
    defraud, or harm the public.
        (22) (13) Commingling the money or property of others
    with his or her own money or property.
        (23) (14) Employing any person on a purely temporary or
    single deal basis as a means of evading the law regarding
    payment of commission to nonlicensees on some contemplated
    transactions.
        (24) (15) Permitting the use of his or her license as a
    broker to enable a salesperson or unlicensed person to
    operate a real estate business without actual
    participation therein and control thereof by the broker.
        (25) (16) Any other conduct, whether of the same or a
    different character from that specified in this Section,
    that constitutes dishonest dealing.
        (26) (17) Displaying a "for rent" or "for sale" sign on
    any property without the written consent of an owner or his
    or her duly authorized agent or advertising by any means
    that any property is for sale or for rent without the
    written consent of the owner or his or her authorized
    agent.
        (27) (18) Failing to provide information requested by
    the Department, or otherwise respond to that request OBRE,
    within 30 days of the request, either as the result of a
    formal or informal complaint to OBRE or as a result of a
    random audit conducted by OBRE, which would indicate a
    violation of this Act.
        (28) (19) Advertising by means of a blind
    advertisement, except as otherwise permitted in Section
    10-30 of this Act.
        (29) (20) Offering guaranteed sales plans, as defined
    in clause (A) of this subdivision (29) (20), except to the
    extent hereinafter set forth:
            (A) A "guaranteed sales plan" is any real estate
        purchase or sales plan whereby a licensee enters into a
        conditional or unconditional written contract with a
        seller, prior to entering into a brokerage agreement
        with the seller, by the terms of which a licensee
        agrees to purchase a property of the seller within a
        specified period of time at a specific price in the
        event the property is not sold in accordance with the
        terms of a brokerage agreement to be entered into
        listing contract between the sponsoring broker and the
        seller or on other terms acceptable to the seller.
            (B) A licensee offering a guaranteed sales plan
        shall provide the details and conditions of the plan in
        writing to the party to whom the plan is offered.
            (C) A licensee offering a guaranteed sales plan
        shall provide to the party to whom the plan is offered
        evidence of sufficient financial resources to satisfy
        the commitment to purchase undertaken by the broker in
        the plan.
            (D) Any licensee offering a guaranteed sales plan
        shall undertake to market the property of the seller
        subject to the plan in the same manner in which the
        broker would market any other property, unless the
        agreement with the seller provides otherwise.
            (E) The licensee cannot purchase seller's property
        until the brokerage agreement has ended according to
        its terms or is otherwise terminated.
            (F) Any licensee who fails to perform on a
        guaranteed sales plan in strict accordance with its
        terms shall be subject to all the penalties provided in
        this Act for violations thereof and, in addition, shall
        be subject to a civil fine payable to the party injured
        by the default in an amount of up to $25,000.
        (30) (21) Influencing or attempting to influence, by
    any words or acts, a prospective seller, purchaser,
    occupant, landlord, or tenant of real estate, in connection
    with viewing, buying, or leasing real estate, so as to
    promote or tend to promote the continuance or maintenance
    of racially and religiously segregated housing or so as to
    retard, obstruct, or discourage racially integrated
    housing on or in any street, block, neighborhood, or
    community.
        (31) (22) Engaging in any act that constitutes a
    violation of any provision of Article 3 of the Illinois
    Human Rights Act, whether or not a complaint has been filed
    with or adjudicated by the Human Rights Commission.
        (32) (23) Inducing any party to a contract of sale or
    lease or brokerage agreement to break the contract of sale
    or lease or brokerage agreement for the purpose of
    substituting, in lieu thereof, a new contract for sale or
    lease or brokerage agreement with a third party.
        (33) (24) Negotiating a sale, exchange, or lease of
    real estate directly with any person if the licensee knows
    that the person has an a written exclusive brokerage
    agreement with another broker, unless specifically
    authorized by that broker.
        (34) (25) When a licensee is also an attorney, acting
    as the attorney for either the buyer or the seller in the
    same transaction in which the licensee is acting or has
    acted as a broker or salesperson.
        (35) (26) Advertising or offering merchandise or
    services as free if any conditions or obligations necessary
    for receiving the merchandise or services are not disclosed
    in the same advertisement or offer. These conditions or
    obligations include without limitation the requirement
    that the recipient attend a promotional activity or visit a
    real estate site. As used in this subdivision (35) (26),
    "free" includes terms such as "award", "prize", "no
    charge", "free of charge", "without charge", and similar
    words or phrases that reasonably lead a person to believe
    that he or she may receive or has been selected to receive
    something of value, without any conditions or obligations
    on the part of the recipient.
        (36) (27) Disregarding or violating any provision of
    the Land Sales Registration Act of 1989, the Illinois Real
    Estate Time-Share Act, or the published rules promulgated
    by the Department OBRE to enforce those Acts.
        (37) (28) Violating the terms of a disciplinary order
    issued by the Department OBRE.
        (38) (29) Paying or failing to disclose compensation in
    violation of Article 10 of this Act.
        (39) (30) Requiring a party to a transaction who is not
    a client of the licensee to allow the licensee to retain a
    portion of the escrow moneys for payment of the licensee's
    commission or expenses as a condition for release of the
    escrow moneys to that party.
        (40) (31) Disregarding or violating any provision of
    this Act or the published rules promulgated by the
    Department OBRE to enforce this Act or aiding or abetting
    any individual, partnership, registered limited liability
    partnership, limited liability company, or corporation in
    disregarding any provision of this Act or the published
    rules promulgated by the Department OBRE to enforce this
    Act.
        (41) (32) Failing to provide the minimum services
    required by Section 15-75 of this Act when acting under an
    exclusive brokerage agreement.
        (42) Habitual or excessive use or addiction to alcohol,
    narcotics, stimulants, or any other chemical agent or drug
    that results in a managing broker, broker, salesperson, or
    leasing agent's inability to practice with reasonable
    skill or safety.
    (b) The Department may refuse to issue or renew or may
suspend the license of any person who fails to file a return,
pay the tax, penalty or interest shown in a filed return, or
pay any final assessment of tax, penalty, or interest, as
required by any tax Act administered by the Department of
Revenue, until such time as the requirements of that tax Act
are satisfied in accordance with subsection (g) of Section
2105-15 of the Civil Administrative Code of Illinois.
    (c) The Department shall deny a license or renewal
authorized by this Act to a person who has defaulted on an
educational loan or scholarship provided or guaranteed by the
Illinois Student Assistance Commission or any governmental
agency of this State in accordance with item (5) of subsection
(g) of Section 2105-15 of the Civil Administrative Code of
Illinois.
    (d) In cases where the Department of Healthcare and Family
Services (formerly Department of Public Aid) has previously
determined that a licensee or a potential licensee is more than
30 days delinquent in the payment of child support and has
subsequently certified the delinquency to the Department may
refuse to issue or renew or may revoke or suspend that person's
license or may take other disciplinary action against that
person based solely upon the certification of delinquency made
by the Department of Healthcare and Family Services in
accordance with item (5) of subsection (g) of Section 2105-15
of the Civil Administrative Code of Illinois.
    (e) In enforcing this Section, the Department or Board upon
a showing of a possible violation may compel an individual
licensed to practice under this Act, or who has applied for
licensure under this Act, to submit to a mental or physical
examination, or both, as required by and at the expense of the
Department. The Department or Board may order the examining
physician to present testimony concerning the mental or
physical examination of the licensee or applicant. No
information shall be excluded by reason of any common law or
statutory privilege relating to communications between the
licensee or applicant and the examining physician. The
examining physicians shall be specifically designated by the
Board or Department. The individual to be examined may have, at
his or her own expense, another physician of his or her choice
present during all aspects of this examination. Failure of an
individual to submit to a mental or physical examination, when
directed, shall be grounds for suspension of his or her license
until the individual submits to the examination if the
Department finds, after notice and hearing, that the refusal to
submit to the examination was without reasonable cause.
    If the Department or Board finds an individual unable to
practice because of the reasons set forth in this Section, the
Department or Board may require that individual to submit to
care, counseling, or treatment by physicians approved or
designated by the Department or Board, as a condition, term, or
restriction for continued, reinstated, or renewed licensure to
practice; or, in lieu of care, counseling, or treatment, the
Department may file, or the Board may recommend to the
Department to file, a complaint to immediately suspend, revoke,
or otherwise discipline the license of the individual. An
individual whose license was granted, continued, reinstated,
renewed, disciplined or supervised subject to such terms,
conditions, or restrictions, and who fails to comply with such
terms, conditions, or restrictions, shall be referred to the
Secretary for a determination as to whether the individual
shall have his or her license suspended immediately, pending a
hearing by the Department.
    In instances in which the Secretary immediately suspends a
person's license under this Section, a hearing on that person's
license must be convened by the Department within 30 days after
the suspension and completed without appreciable delay. The
Department and Board shall have the authority to review the
subject individual's record of treatment and counseling
regarding the impairment to the extent permitted by applicable
federal statutes and regulations safeguarding the
confidentiality of medical records.
    An individual licensed under this Act and affected under
this Section shall be afforded an opportunity to demonstrate to
the Department or Board that he or she can resume practice in
compliance with acceptable and prevailing standards under the
provisions of his or her license.
(Source: P.A. 95-851, eff. 1-1-09.)
 
    (225 ILCS 454/20-21 new)
    Sec. 20-21. Injunctions; cease and desist order.
    (a) If any person violates the provisions of this Act, the
Secretary may, in the name of the People of the State of
Illinois, through the Attorney General of the State of Illinois
or the State's Attorney for any county in which the action is
brought, petition for an order enjoining the violation or for
an order enforcing compliance with this Act. Upon the filing of
a verified petition in court, the court may issue a temporary
restraining order, without notice or condition, and may
preliminarily and permanently enjoin the violation. If it is
established that the person has violated or is violating the
injunction, the Court may punish the offender for contempt of
court. Proceedings under this Section shall be in addition to,
and not in lieu of, all other remedies and penalties provided
by this Act.
    (b) Whenever in the opinion of the Department a person
violates a provision of this Act, the Department may issue a
ruling to show cause why an order to cease and desist should
not be entered against that person. The rule shall clearly set
forth the grounds relied upon by the Department and shall allow
at least 7 days from the date of the rule to file an answer to
the satisfaction of the Department. Failure to answer to the
satisfaction of the Department shall cause an order to cease
and desist to be issued immediately.
    (c) Other than as provided in Section 5-20 of this Act, if
any person practices as a real estate broker, real estate
salesperson or leasing agent or holds himself or herself out as
a licensed sponsoring broker, managing broker, real estate
broker, real estate salesperson or leasing agent under this Act
without being issued a valid existing license by the
Department, then any licensed sponsoring broker, managing
broker, real estate broker, real estate salesperson, leasing
agent, any interested party, or any person injured thereby may,
in addition to the Secretary, petition for relief as provided
in subsection (a) of this Section.
 
    (225 ILCS 454/20-22 new)
    Sec. 20-22. Violations. Any person who is found working or
acting as a managing broker, real estate broker, real estate
salesperson, or leasing agent or holding himself or herself out
as a licensed sponsoring broker, managing broker, real estate
broker, real estate salesperson, or leasing agent without being
issued a valid existing license is guilty of a Class A
misdemeanor and on conviction of a second or subsequent offense
the violator shall be guilty of a Class 4 felony.
 
    (225 ILCS 454/20-25)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-25. Returned checks; fees. Any person who delivers
a check or other payment to the Department OBRE that is
returned to the Department OBRE unpaid by the financial
institution upon which it is drawn shall pay to the Department
OBRE, in addition to the amount already owed to the Department
OBRE, a fee of $50. The Department OBRE shall notify the person
that payment of fees and fines shall be paid to the Department
OBRE by certified check or money order within 30 calendar days
of the notification. If, after the expiration of 30 days from
the date of the notification, the person has failed to submit
the necessary remittance, the Department OBRE shall
automatically terminate the license or deny the application,
without hearing. If, after termination or denial, the person
seeks a license, he or she shall apply to the Department OBRE
for restoration or issuance of the license and pay all fees and
fines due to the Department OBRE. The Department OBRE may
establish a fee for the processing of an application for
restoration of a license to pay all expenses of processing this
application. The Secretary Commissioner may waive the fees due
under this Section in individual cases where the Secretary
Commissioner finds that the fees would be unreasonable or
unnecessarily burdensome.
(Source: P.A. 91-245, eff. 12-31-99; 92-146, eff. 1-1-02.)
 
    (225 ILCS 454/20-50)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-50. Illegal discrimination. When there has been an
adjudication in a civil or criminal proceeding that a licensee
has illegally discriminated while engaged in any activity for
which a license is required under this Act, the Department
OBRE, upon the recommendation of the Board as to the extent of
the suspension or revocation, shall suspend or revoke the
license of that licensee in a timely manner, unless the
adjudication is in the appeal process. When there has been an
order in an administrative proceeding finding that a licensee
has illegally discriminated while engaged in any activity for
which a license is required under this Act, the Department
OBRE, upon recommendation of the Board as to the nature and
extent of the discipline, shall take one or more of the
disciplinary actions provided for in Section 20-20 of this Act
in a timely manner, unless the administrative order is in the
appeal process.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-55)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-55. Illinois Administrative Procedure Act. The
Illinois Administrative Procedure Act is hereby expressly
adopted and incorporated herein as if all of the provisions of
that Act were included in this Act, except that the provision
of subsection (d) of Section 10-65 of the Illinois
Administrative Procedure Act that provides that at hearings the
licensee has the right to show compliance with all lawful
requirements for retention, continuation, or renewal of the
license is specifically excluded. For the purposes of this Act,
the notice required under the Illinois Administrative
Procedure Act is deemed sufficient when mailed to the last
known address of record a party.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-60)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-60. Investigations Hearing; investigation; notice
and hearing ; disciplinary consent order. The Department may
investigate the actions of any applicant or of any person or
persons rendering or offering to render services or any person
holding or claiming to hold a license under this Act. The
Department shall, before revoking, (a) OBRE may conduct
hearings through the Board or a duly appointed hearing officer
on proceedings to suspend, revoke, or to refuse to issue or
renew licenses of persons applying for licensure or licensed
under this Act or to censure, reprimand, or impose a civil fine
not to exceed $25,000 upon any licensee hereunder and may
revoke, suspend, or refuse to issue or renew these licenses or
censure, reprimand, or impose a civil fine not to exceed
$25,000 upon any licensee hereunder. (b) Upon the motion of
either OBRE or the Board or upon the verified complaint in
writing of any persons setting forth facts that if proven would
constitute grounds for suspension or revocation under this Act,
OBRE, the Board, or its subcommittee shall cause to be
investigated the actions of any person so accused who holds a
license or is holding himself or herself out to be a licensee.
This person is hereinafter called the accused. (c) Prior to
initiating any formal disciplinary proceedings resulting from
an investigation conducted pursuant to subsection (b) of this
Section, that matter shall be reviewed by a subcommittee of the
Board according to procedures established by rule. The
subcommittee shall make a recommendation to the full Board as
to the validity of the complaint and may recommend that the
Board not proceed with formal disciplinary proceedings if the
complaint is determined to be frivolous or without merit. (d)
Except as provided for in Section 20-65 of this Act, OBRE
shall, before suspending, revoking, placing on probation,
reprimanding probationary status, or taking any other
disciplinary action under Article 20 of this Act, at least 30
days before the date set for the hearing, (i) as OBRE may deem
proper with regard to any license: (1) notify the accused in
writing of the at least 30 days prior to the date set for the
hearing of any charges made and the time and place for the
hearing on of the charges, (ii) direct him or her to file a
written answer to the charges with to be heard before the Board
under oath within 20 days after the service on him or her of
the notice, and (iii) ; and (2) inform the accused that if he or
she fails to answer upon failure to file an answer and request
a hearing before the date originally set for the hearing,
default will be taken against him or her or that the accused
and his or her license may be suspended, revoked, or placed on
probationary status, or other disciplinary action taken with
regard to the license, including limiting the scope, nature, or
extent of his or her practice, as the Department may consider
proper. At the time and place fixed in the notice, the Board
shall proceed to hear the charges and the parties or their
counsel shall be accorded ample opportunity to present any
pertinent statements, testimony, evidence, and arguments. The
Board may continue the hearing from time to time. In case the
person, after receiving the the accused's practice, as OBRE may
deem proper, may be taken with regard thereto. In case the
person fails to file an answer after receiving notice, fails to
file an answer, his or her license may, in the discretion of
the Department OBRE, be suspended, revoked, or placed on
probationary status, or the Department OBRE may take whatever
disciplinary action considered deemed proper, including
limiting the scope, nature, or extent of the person's practice
or the imposition of a fine, without a hearing, if the act or
acts charged constitute sufficient grounds for that such action
under this Act. The written notice may be served by personal
delivery or by certified mail to the address specified by the
accused in his or her last notification with the Department.
    (e) At the time and place fixed in the notice, the Board
shall proceed to hearing of the charges and both the accused
person and the complainant shall be accorded ample opportunity
to present in person or by counsel such statements, testimony,
evidence and argument as may be pertinent to the charges or to
any defense thereto. The Board or its hearing officer may
continue a hearing date upon its own motion or upon an
accused's motion for one period not to exceed 30 days. The
Board or its hearing officer may grant further continuances for
periods not to exceed 30 days only upon good cause being shown
by the moving party. The non-moving party shall have the
opportunity to object to a continuance on the record at a
hearing upon the motion to continue. All motions for
continuances and any denial or grant thereof shall be in
writing. All motions shall be submitted not later than 48 hours
before the scheduled hearing unless made upon an emergency
basis. In determining whether good cause for a continuance is
shown, the Board or its hearing officer shall consider such
factors as the volume of cases pending, the nature and
complexity of legal issues raised, the diligence of the party
making the request, the availability of party's legal
representative or witnesses, and the number of previous
requests for continuance.
    (f) Any unlawful act or violation of any of the provisions
of this Act upon the part of any licensees employed by a real
estate broker or associated by written agreement with the real
estate broker, or unlicensed employee of a licensed broker,
shall not be cause for the revocation of the license of any
such broker, partial or otherwise, unless it appears to the
satisfaction of OBRE that the broker had knowledge thereof.
    (g) OBRE or the Board has power to subpoena any persons or
documents for the purpose of investigation or hearing with the
same fees and mileage and in the same manner as prescribed by
law for judicial procedure in civil cases in courts of this
State. The Commissioner, the Director, any member of the Board,
a certified court reporter, or a hearing officer shall each
have power to administer oaths to witnesses at any hearing
which OBRE is authorized under this Act to conduct.
    (h) Any circuit court or any judge thereof, upon the
application of the accused person, complainant, OBRE, or the
Board, may, by order entered, require the attendance of
witnesses and the production of relevant books and papers
before the Board in any hearing relative to the application for
or refusal, recall, suspension, or revocation of a license, and
the court or judge may compel obedience to the court's or the
judge's order by proceedings for contempt.
    (i) OBRE, at its expense, shall preserve a record of all
proceedings at the formal hearing of any case involving the
refusal to issue or the revocation, suspension, or other
discipline of a licensee. The notice of hearing, complaint and
all other documents in the nature of pleadings and written
motions filed in the proceedings, the transcript of testimony,
the report of the Board, and the orders of OBRE shall be the
record of the proceeding. At all hearings or pre-hearing
conferences, OBRE and the accused shall be entitled to have a
court reporter in attendance for purposes of transcribing the
proceeding or pre-hearing conference at the expense of the
party requesting the court reporter's attendance. A copy of the
transcribed proceeding shall be available to the other party
for the cost of a copy of the transcript.
    (j) The Board shall present to the Commissioner its written
report of its findings and recommendations. A copy of the
report shall be served upon the accused, either personally or
by certified mail as provided in this Act for the service of
the citation. Within 20 days after the service, the accused may
present to the Commissioner a motion in writing for a rehearing
that shall specify the particular grounds therefor. If the
accused shall order and pay for a transcript of the record as
provided in this Act, the time elapsing thereafter and before
the transcript is ready for delivery to the accused shall not
be counted as part of the 20 days. Whenever the Commissioner is
satisfied that substantial justice has not been done, the
Commissioner may order a rehearing by the Board or other
special committee appointed by the Commissioner or may remand
the matter to the Board for their reconsideration of the matter
based on the pleadings and evidence presented to the Board. In
all instances, under this Act, in which the Board has rendered
a recommendation to the Commissioner with respect to a
particular licensee or applicant, the Commissioner shall, in
the event that he or she disagrees with or takes action
contrary to the recommendation of the Board, file with the
Board and the Secretary of State his specific written reasons
of disagreement with the Board. The reasons shall be filed
within 60 days of the Board's recommendation to the
Commissioner and prior to any contrary action. At the
expiration of the time specified for filing a motion for a
rehearing, the Commissioner shall have the right to take the
action recommended by the Board. Upon the suspension or
revocation of a license, the licensee shall be required to
surrender his or her license to OBRE, and upon failure or
refusal to do so, OBRE shall have the right to seize the
license.
    (k) At any time after the suspension, temporary suspension,
or revocation of any license, OBRE may restore it to the
accused without examination, upon the written recommendation
of the Board.
    (l) An order of revocation or suspension or a certified
copy thereof, over the seal of OBRE and purporting to be signed
by the Commissioner, shall be prima facie proof that:
        (1) The signature is the genuine signature of the
    Commissioner.
        (2) The Commissioner is duly appointed and qualified.
        (3) The Board and the members thereof are qualified.
Such proof may be rebutted.
    (m) Notwithstanding any provisions concerning the conduct
of hearings and recommendations for disciplinary actions, OBRE
as directed by the Commissioner has the authority to negotiate
agreements with licensees and applicants resulting in
disciplinary consent orders. These consent orders may provide
for any of the forms of discipline provided in this Act. These
consent orders shall provide that they were not entered into as
a result of any coercion by OBRE. Any such consent order shall
be filed with the Commissioner along with the Board's
recommendation and accepted or rejected by the Commissioner
within 60 days of the Board's recommendation.
(Source: P.A. 91-245, eff. 12-31-99; 92-217, eff. 8-2-01.)
 
    (225 ILCS 454/20-62 new)
    Sec. 20-62. Record of proceedings; transcript. The
Department, at its expense, shall preserve a record of all
proceedings at the formal hearing of any case. The notice of
hearing, complaint, all other documents in the nature of
pleadings, written motions filed in the proceedings, the
transcripts of testimony, the report of the Board, and orders
of the Department shall be in the record of the proceeding.
 
    (225 ILCS 454/20-63 new)
    Sec. 20-63. Subpoenas; depositions; oaths. The Department
has the power to subpoena documents, books, records, or other
materials and to bring before it any person and to take
testimony either orally or by deposition, or both, with the
same fees and mileage and in the same manner as prescribed in
civil cases in the courts of this State. The Secretary, the
designated hearing officer, and every member of the Board has
the power to administer oaths to witnesses at any hearing that
the Department is authorized to conduct, and any other oaths
authorized in an Act that is administered by the Department.
 
    (225 ILCS 454/20-64 new)
    Sec. 20-64. Board; rehearing. At the conclusion of a
hearing, a copy of the Board's report shall be served upon the
applicant or licensee by the Department, either personally or
as provided in this Act for the service of a notice of hearing.
Within 20 days after service, the applicant or licensee may
present to the Department a motion in writing for a rehearing,
which shall specify the particular grounds for rehearing. The
Department may respond to the motion, or if a motion for
rehearing is denied, then upon denial, and except as provided
in Section 20-72 of this Act, the Secretary may enter an order
in accordance with the recommendations of the Board. If the
applicant or licensee orders from the reporting service and
pays for a transcript of the record within the time for filing
a motion for rehearing, then the 20-day period within which a
motion may be filed shall commence upon the delivery of the
transcript to the applicant or licensee.
 
    (225 ILCS 454/20-65)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-65. Temporary suspension. The Secretary
Commissioner may temporarily suspend the license of a licensee
without a hearing, simultaneously with the institution of
proceedings for a hearing provided for in Section 20-61 20-60
of this Act, if the Secretary Commissioner finds that the
evidence indicates that the public interest, safety, or welfare
imperatively requires emergency action. In the event that the
Secretary Commissioner temporarily suspends the license
without a hearing before the Board, a hearing shall be
commenced held within 30 days after the suspension has
occurred. The suspended licensee may seek a continuance of the
hearing during which the suspension shall remain in effect. The
proceeding shall be concluded without appreciable delay.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-66 new)
    Sec. 20-66. Appointment of a hearing officer. The Secretary
has the authority to appoint any attorney licensed to practice
law in the State of Illinois to serve as the hearing officer in
any action for refusal to issue, restore, or renew a license or
to discipline a licensee. The hearing officer has full
authority to conduct the hearing. Any Board member may attend
the hearing. The hearing officer shall report his or her
findings of fact, conclusions of law, and recommendations to
the Board. The Board shall review the report of the hearing
officer and present its findings of fact, conclusions of law,
and recommendations to the Secretary and all parties to the
proceeding. If the Secretary disagrees with a recommendation of
the Board or of the hearing officer, then the Secretary may
issue an order in contravention of the recommendation.
 
    (225 ILCS 454/20-67 new)
    Sec. 20-67. Order or certified copy; prima facie proof. An
order, or certified copy of an order, over the seal of the
Department and purporting to be signed by the Secretary is
prima facie proof that (i) the signature is the genuine
signature of the Secretary, (ii) the Secretary is duly
appointed and qualified, and (iii) the Board and its members
are qualified to act.
 
    (225 ILCS 454/20-68 new)
    Sec. 20-68. Surrender of license. Upon the revocation or
suspension of a license, the licensee shall immediately
surrender his or her license to the Department. If the licensee
fails to do so, the Department has the right to seize the
license.
 
    (225 ILCS 454/20-69 new)
    Sec. 20-69. Restoration of a suspended or revoked license.
At any time after the successful completion of a term of
suspension or revocation of a license, the Department may
restore it to the licensee, upon the written recommendation of
the Board, unless after an investigation and a hearing the
Board determines that restoration is not in the public
interest.
 
    (225 ILCS 454/20-72 new)
    Sec. 20-72. Secretary; rehearing. If the Secretary
believes that substantial justice has not been done in the
revocation, suspension, or refusal to issue, restore, or renew
a license, or any other discipline of an applicant or licensee,
then he or she may order a rehearing by the same or other
examiners.
 
    (225 ILCS 454/20-73 new)
    Sec. 20-73. Certifications of record; costs. The
Department shall not be required to certify any record to the
court, to file an answer in court, or to otherwise appear in
any court in a judicial review proceeding unless there is filed
in the court, with the complaint, a receipt from the Department
acknowledging payment of the costs of furnishing and certifying
the record, which costs shall be determined by the Department.
Failure on the part of the plaintiff to file the receipt in
court is grounds for dismissal of the action.
 
    (225 ILCS 454/20-75)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-75. Administrative Review venue Law; certification
fee; summary report of final disciplinary actions.
    (a) All final administrative decisions of the Department
are OBRE shall be subject to judicial review under pursuant to
the provisions of the Administrative Review Law and its the
rules adopted pursuant thereto. The term "administrative
decision" is defined in Section 3-101 of the Code of Civil
Procedure Administrative Review Law.
    (b) Proceedings for judicial review shall be commenced in
the circuit court of the court in which the party applying for
review resides, but if the party is not a resident of Illinois,
the venue shall be in Sangamon County. OBRE shall not be
required to certify any record or file any answer or otherwise
appear unless the party filing the complaint pays to OBRE the
certification fee provided for by rule representing costs of
the certification. Failure on the part of the plaintiff to make
such a deposit shall be grounds for dismissal of the action.
OBRE shall prepare from time to time, but in no event less
often than once every other month, a summary report of final
disciplinary actions taken since the previous summary report.
The summary report shall contain a brief description of the
action that brought about the discipline and the final
disciplinary action taken. The summary report shall be made
available upon request.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-82 new)
    Sec. 20-82. Fines and penalties; Real Estate Recovery Fund.
All fines and penalties collected under this Act by the
Department shall be deposited in the Real Estate Recovery Fund.
 
    (225 ILCS 454/20-85)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-85. Recovery from Real Estate Recovery Fund. The
Department OBRE shall maintain a Real Estate Recovery Fund from
which any person aggrieved by an act, representation,
transaction, or conduct of a licensee or unlicensed employee of
a licensee that is in violation of this Act or the rules
promulgated pursuant thereto, constitutes embezzlement of
money or property, or results in money or property being
unlawfully obtained from any person by false pretenses,
artifice, trickery, or forgery or by reason of any fraud,
misrepresentation, discrimination, or deceit by or on the part
of any such licensee or the unlicensed employee of a licensee
and that results in a loss of actual cash money, as opposed to
losses in market value, may recover. The aggrieved person may
recover, by order of the circuit court of the county where the
violation occurred, an amount of not more than $25,000 $10,000
from the Fund for damages sustained by the act, representation,
transaction, or conduct, together with costs of suit and
attorney's fees incurred in connection therewith of not to
exceed 15% of the amount of the recovery ordered paid from the
Fund. However, no licensee licensed broker or salesperson may
recover from the Fund unless the court finds that the person
suffered a loss resulting from intentional misconduct. The
court order shall not include interest on the judgment. The
maximum liability against the Fund arising out of any one act
shall be as provided in this Section, and the judgment order
shall spread the award equitably among all co-owners or
otherwise aggrieved persons, if any. The maximum liability
against the Fund arising out of the activities of any one
licensee or one unlicensed employee of a licensee, since
January 1, 1974, shall be $100,000 $50,000. Nothing in this
Section shall be construed to authorize recovery from the Fund
unless the loss of the aggrieved person results from an act or
omission of a licensee under this Act licensed broker,
salesperson, or unlicensed employee who was at the time of the
act or omission acting in such capacity or was apparently
acting in such capacity and unless the aggrieved person has
obtained a valid judgment as provided in Section 20-90 of this
Act. No person aggrieved by an act, representation, or
transaction that is in violation of the Illinois Real Estate
Time-Share Act or the Land Sales Registration Act of 1989 may
recover from the Fund.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-90)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-90. Collection from Real Estate Recovery Fund;
procedure.
    (a) No action for a judgment that subsequently results in
an order for collection from the Real Estate Recovery Fund
shall be started later than 2 years after the date on which the
aggrieved person knew, or through the use of reasonable
diligence should have known, of the acts or omissions giving
rise to a right of recovery from the Real Estate Recovery Fund.
    (b) When any aggrieved person commences action for a
judgment that may result in collection from the Real Estate
Recovery Fund, the aggrieved person must name as parties
defendant to that action any and all individual licensees real
estate brokers, real estate salespersons, or their employees
who allegedly committed or are responsible for acts or
omissions giving rise to a right of recovery from the Real
Estate Recovery Fund. Failure to name as parties defendant such
licensees individual brokers, salespersons, or their employees
shall preclude recovery from the Real Estate Recovery Fund of
any portion of any judgment received in such an action. The
aggrieved party may also name as additional parties defendant
any corporations, limited liability companies, partnerships,
registered limited liability partnership, or other business
associations that may be responsible for acts giving rise to a
right of recovery from the Real Estate Recovery Fund.
    (c) When any aggrieved person commences action for a
judgment that may result in collection from the Real Estate
Recovery Fund, the aggrieved person must notify the Department
OBRE in writing to this effect within 7 days of the
commencement of the action. Failure to so notify the Department
OBRE shall preclude recovery from the Real Estate Recovery Fund
of any portion of any judgment received in such an action.
After receiving notice of the commencement of such an action,
the Department OBRE upon timely application shall be permitted
to intervene as a party defendant to that action.
    (d) When any aggrieved person commences action for a
judgment that may result in collection from the Real Estate
Recovery Fund, and the aggrieved person is unable to obtain
legal and proper service upon the defendant under the
provisions of Illinois law concerning service of process in
civil actions, the aggrieved person may petition the court
where the action to obtain judgment was begun for an order to
allow service of legal process on the Secretary Commissioner.
Service of process on the Secretary Commissioner shall be taken
and held in that court to be as valid and binding as if due
service had been made upon the defendant. In case any process
mentioned in this Section is served upon the Secretary
Commissioner, the Secretary Commissioner shall forward a copy
of the process by certified mail to the licensee's last address
on record with the Department OBRE. Any judgment obtained after
service of process on the Secretary Commissioner under this Act
shall apply to and be enforceable against the Real Estate
Recovery Fund only. OBRE may intervene in and defend any such
action.
    (e) When an aggrieved party commences action for a judgment
that may result in collection from the Real Estate Recovery
Fund, and the court before which that action is commenced
enters judgment by default against the defendant and in favor
of the aggrieved party, the court shall upon motion of the
Department OBRE set aside that judgment by default. After such
a judgment by default has been set aside, the Department OBRE
shall appear as party defendant to that action, and thereafter
the court shall require proof of the allegations in the
pleadings upon which relief is sought.
    (f) The aggrieved person shall give written notice to the
Department OBRE within 30 days of the entry of any judgment
that may result in collection from the Real Estate Recovery
Fund. The aggrieved person shall provide OBRE within 20 days
prior written notice of all supplementary proceedings so as to
allow the Department OBRE to participate in all efforts to
collect on the judgment.
    (g) When any aggrieved person recovers a valid judgment in
any court of competent jurisdiction against any licensee or an
unlicensed employee of any broker, upon the grounds of fraud,
misrepresentation, discrimination, or deceit, the aggrieved
person may, upon the termination of all proceedings, including
review and appeals in connection with the judgment, file a
verified claim in the court in which the judgment was entered
and, upon 30 days' written notice to the Department OBRE, and
to the person against whom the judgment was obtained, may apply
to the court for an order directing payment out of the Real
Estate Recovery Fund of the amount unpaid upon the judgment,
not including interest on the judgment, and subject to the
limitations stated in Section 20-85 of this Act. The aggrieved
person must set out in that verified claim and at an
evidentiary hearing to be held by the court upon the
application the aggrieved party shall be required to show that
the aggrieved person:
        (1) Is not a spouse of the debtor or the personal
    representative of such spouse.
        (2) Has complied with all the requirements of this
    Section.
        (3) Has obtained a judgment stating the amount thereof
    and the amount owing thereon, not including interest
    thereon, at the date of the application.
        (4) Has made all reasonable searches and inquiries to
    ascertain whether the judgment debtor is possessed of real
    or personal property or other assets, liable to be sold or
    applied in satisfaction of the judgment.
        (5) By such search has discovered no personal or real
    property or other assets liable to be sold or applied, or
    has discovered certain of them, describing them as owned by
    the judgment debtor and liable to be so applied and has
    taken all necessary action and proceedings for the
    realization thereof, and the amount thereby realized was
    insufficient to satisfy the judgment, stating the amount so
    realized and the balance remaining due on the judgment
    after application of the amount realized.
        (6) Has diligently pursued all remedies against all the
    judgment debtors and all other persons liable to the
    aggrieved person in the transaction for which recovery is
    sought from the Real Estate Recovery Fund, including the
    filing of an adversary action to have the debts declared
    non-dischargeable in any bankruptcy petition matter filed
    by any judgment debtor or person liable to the aggrieved
    person.
    The aggrieved person shall also be required to prove the
amount of attorney's fees sought to be recovered and the
reasonableness of those fees up to the maximum allowed pursuant
to Section 20-85 of this Act.
    (h) The court shall make an order directed to the
Department OBRE requiring payment from the Real Estate Recovery
Fund of whatever sum it finds to be payable upon the claim,
pursuant to and in accordance with the limitations contained in
Section 20-85 of this Act, if the court is satisfied, upon the
hearing, of the truth of all matters required to be shown by
the aggrieved person under subsection (g) of this Section and
that the aggrieved person has fully pursued and exhausted all
remedies available for recovering the amount awarded by the
judgment of the court.
    (i) Should the Department OBRE pay from the Real Estate
Recovery Fund any amount in settlement of a claim or toward
satisfaction of a judgment against a licensed broker or
salesperson or an unlicensed employee of a broker, the
licensee's license shall be automatically terminated upon the
issuance of a court order authorizing payment from the Real
Estate Recovery Fund. No petition for restoration of a license
shall be heard until repayment has been made in full, plus
interest at the rate prescribed in Section 12-109 of the Code
of Civil Procedure of the amount paid from the Real Estate
Recovery Fund on their account. A discharge in bankruptcy shall
not relieve a person from the penalties and disabilities
provided in this subsection (i).
    (j) If, at any time, the money deposited in the Real Estate
Recovery Fund is insufficient to satisfy any duly authorized
claim or portion thereof, the Department OBRE shall, when
sufficient money has been deposited in the Real Estate Recovery
Fund, satisfy such unpaid claims or portions thereof, in the
order that such claims or portions thereof were originally
filed, plus accumulated interest at the rate prescribed in
Section 12-109 of the Code of Civil Procedure.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-95)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-95. Power of the Department OBRE to defend. When
the Department OBRE receives any process, notice, order, or
other document provided for or required under Section 20-90 of
this Act, it may enter an appearance, file an answer, appear at
the court hearing, defend the action, or take whatever other
action it deems appropriate on behalf and in the name of the
defendant and take recourse through any appropriate method of
review on behalf of and in the name of the defendant.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-100)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-100. Subrogation of the Department OBRE to rights
of judgment creditor. When, upon the order of the court, the
Department OBRE has paid from the Real Estate Recovery Fund any
sum to the judgment creditor, the Department OBRE shall be
subrogated to all of the rights of the judgment creditor and
the judgment creditor shall assign all rights, title, and
interest in the judgment to the Department OBRE and any amount
and interest so recovered by the Department OBRE on the
judgment shall be deposited in the Real Estate Recovery Fund.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-110)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-110. Disciplinary actions of the Department OBRE
not limited. Nothing contained in Sections 20-80 through 20-100
of this Act limits the authority of the Department OBRE to take
disciplinary action against any licensee for a violation of
this Act or the rules of the Department OBRE, nor shall the
repayment in full of all obligations to the Real Estate
Recovery Fund by any licensee nullify or modify the effect of
any other disciplinary proceeding brought pursuant to this Act.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/20-115)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 20-115. Time limit on action. No action may be taken
by the Department OBRE against any person for violation of the
terms of this Act or its rules unless the action is commenced
within 5 years after the occurrence of the alleged violation.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/25-5)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-5. The Department OBRE; powers and duties. The
Department OBRE shall exercise the powers and duties prescribed
by the Civil Administrative Code of Illinois for the
administration of licensing acts and shall exercise such other
powers and duties as are prescribed by this Act. The Department
OBRE may contract with third parties for services or the
development of courses necessary for the proper administration
of this Act.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/25-10)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-10. Real Estate Administration and Disciplinary
Board; duties. There is created the Real Estate Administration
and Disciplinary Board. The Board shall be composed of 9
persons appointed by the Governor. Members shall be appointed
to the Board subject to the following conditions:
        (1) All members shall have been residents and citizens
    of this State for at least 6 years prior to the date of
    appointment.
        (2) Six members shall have been actively engaged as
    brokers or salespersons or both for at least the 10 years
    prior to the appointment.
        (3) Three members of the Board shall be public members
    who represent consumer interests.
    None of these members shall be (i) a person who is licensed
under this Act or a similar Act of another jurisdiction, (ii)
the spouse or family member of a licensee, (iii) , the spouse of
a person licensed under this Act, or a person who has an
ownership interest in a real estate brokerage business, or (iv)
a person the Department determines to have any other connection
with a real estate brokerage business or a licensee. The
members' terms shall be 4 years or until their successor is
appointed, and the expiration of their terms shall be
staggered. Appointments to fill vacancies shall be for the
unexpired portion of the term. No A member shall be reappointed
to the Board for a term that would cause his or her service on
the Board to be longer than 12 years in a lifetime may be
reappointed for successive terms but no person shall be
appointed to more than 2 terms or any part thereof in his or
her lifetime. Persons holding office as members of the Board
immediately prior to December 31, 1999 under the Real Estate
License Act of 1983 shall continue as members of the Board
until the expiration of the term for which they were appointed
and until their successors are appointed and qualified. The
membership of the Board should reasonably reflect the
geographic distribution of the licensee population in this
State. In making the appointments, the Governor shall give due
consideration to the recommendations by members and
organizations of the profession. The Governor may terminate the
appointment of any member for cause that in the opinion of the
Governor reasonably justifies the termination. Cause for
termination shall include without limitation misconduct,
incapacity, neglect of duty, or missing 4 board meetings during
any one calendar year. Each member of the Board may shall
receive a per diem stipend in an amount to be determined by the
Secretary Commissioner. Each member shall be paid his or her
necessary expenses while engaged in the performance of his or
her duties. Such compensation and expenses shall be paid out of
the Real Estate License Administration Fund. The Secretary
Commissioner shall consider the recommendations of the Board on
questions involving standards of professional conduct,
discipline, and examination of candidates under this Act. The
Department OBRE, after notifying and considering the
recommendations of the Board, if any, may issue rules,
consistent with the provisions of this Act, for the
administration and enforcement thereof and may prescribe forms
that shall be used in connection therewith. Five Board members
shall constitute a quorum. A quorum is required for all Board
decisions None of the functions, powers, or duties enumerated
in Sections 20-20 and 30-5 and subsections (a) and (j) of
Section 20-60 of this Act shall be exercised by OBRE except
upon the action and report in writing of the Board.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/25-13)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-13. Rules. The Department OBRE, after notifying and
considering the recommendations of the Board, if any, shall
adopt, promulgate, and issue any rules that may be necessary
for the implementation and enforcement of this Act.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/25-14)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-14. Reliance on advisory letters. Licensees or
their representatives may seek an advisory letter from the
Department OBRE as to matters arising under this Act or the
rules promulgated pursuant to this Act. The Department OBRE
shall promulgate rules as to the process of seeking and
obtaining an advisory letter and topics and areas on which
advisory rules will be issued by the Department OBRE. A
licensee is entitled to rely upon an advisory letter from the
Department OBRE and will not be disciplined by the Department
OBRE for actions taken in reliance on the advisory letter.
(Source: P.A. 92-217, eff. 8-2-01.)
 
    (225 ILCS 454/25-15)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-15. Director of Real Estate Coordinator; duties.
There shall be in the Department a OBRE a Director and a Deputy
Director of Real Estate Coordinator, appointed by the Secretary
Commissioner, who shall hold a currently valid broker's
license, which shall be surrendered to the Department OBRE
during the appointment. The Director of Real Estate Coordinator
shall have report to the Commissioner and shall do the
following duties and responsibilities:
        (1) act as Chairperson of the Board, ex-officio,
    without vote;
        (2) be the direct liaison between the Department OBRE,
    the profession, and real estate organizations and
    associations;
        (3) prepare and circulate to licensees any educational
    and informational material that the Department OBRE deems
    necessary for providing guidance or assistance to
    licensees;
        (4) appoint any necessary committees to assist in the
    performance of the functions and duties of the Department
    OBRE under this Act; and
        (5) subject to the administrative approval of the
    Secretary Commissioner, supervise all real estate
    activities of OBRE.
    The Commissioner shall appoint, for a term of 4 years, a
Deputy Director of Real Estate who shall hold a currently valid
broker's license, which shall be surrendered to OBRE during the
appointment. Under direction of the Director of Real Estate,
the Deputy Director of Real Estate shall be responsible for the
administration of the licensing, disciplinary, and education
provisions of this Act. The Deputy Director shall also assist
the Director of Real Estate in the performance of his or her
duties.
    In designating the Director and Deputy Director of Real
Estate Coordinator, the Secretary Commissioner shall give due
consideration to recommendations by members and organizations
of the profession.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/25-20)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-20. Staff. The Department OBRE shall employ a
minimum of one investigator per 10,000 licensees and one
prosecutor per 20,000 licensees in order to have sufficient
staff to perform the Department's obligations under the Act.
carry out the provisions of this Act.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/25-21 new)
    Sec. 25-21. Peer review advisors. The Department may
contract with licensees meeting qualifications established by
the Department to serve as peer review advisors for complaints
and alleged violations of the Act. A peer review advisor is
authorized to investigate and determine the facts of a
complaint. The peer review advisor shall, at the direction of
the Department, interview witnesses, the complainant and any
licensees involved in the alleged matter and make a
recommendation as to the findings of fact to the Department.
The Department shall have 30 days from receipt of the
recommendation to accept, reject or modify the recommended
findings of fact. Peer review advisors shall be compensated
from the Real Estate Audit Fund at a rate of not to exceed
$15,000.00 per advisor annually. A peer review advisor shall
not investigate a complaint from a marketplace in which the
peer review advisor does business.
 
    (225 ILCS 454/25-25)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-25. Real Estate Research and Education Fund. A
special fund to be known as the Real Estate Research and
Education Fund is created and shall be held in trust in the
State Treasury. Annually, on September 15th, the State
Treasurer shall cause a transfer of $125,000 to the Real Estate
Research and Education Fund from the Real Estate License
Administration Fund. The Real Estate Research and Education
Fund shall be administered by the Department OBRE. Money
deposited in the Real Estate Research and Education Fund may be
used for research and education at state institutions of higher
education or other organizations for research and the
advancement of education in the real estate industry. Of the
$125,000 annually transferred into the Real Estate Research and
Education Fund, $15,000 shall be used to fund a scholarship
program for persons of minority racial origin who wish to
pursue a course of study in the field of real estate. For the
purposes of this Section, "course of study" means a course or
courses that are part of a program of courses in the field of
real estate designed to further an individual's knowledge or
expertise in the field of real estate. These courses shall
include without limitation courses that a salesperson licensed
under this Act must complete to qualify for a real estate
broker's license, courses that a broker licensed under this Act
must complete to qualify for a managing broker's license,
courses required to obtain the Graduate Realtors Institute
designation, and any other courses or programs offered by
accredited colleges, universities, or other institutions of
higher education in Illinois. The scholarship program shall be
administered by the Department OBRE or its designee. Moneys in
the Real Estate Research and Education Fund may be invested and
reinvested in the same manner as funds in the Real Estate
Recovery Fund and all earnings, interest, and dividends
received from such investments shall be deposited in the Real
Estate Research and Education Fund and may be used for the same
purposes as moneys transferred to the Real Estate Research and
Education Fund. Moneys in the Real Estate Research and
Education Fund may be transferred to the Professions Indirect
Cost Fund as authorized under Section 2105-300 of the
Department of Professional Regulation Law of the Civil
Administrative Code of Illinois.
(Source: P.A. 94-91, eff. 7-1-05.)
 
    (225 ILCS 454/25-30)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-30. Real Estate License Administration Fund;
audit. A special fund to be known as the Real Estate License
Administration Fund is created in the State Treasury. All fees
received by the Department OBRE under this Act shall be
deposited in the Real Estate License Administration Fund. The
moneys deposited in the Real Estate License Administration Fund
shall be appropriated to the Department OBRE for expenses of
the Department OBRE and the Board in the administration of this
Act and for the administration of any Act administered by the
Department OBRE providing revenue to this Fund. Moneys in the
Real Estate License Administration Fund may be invested and
reinvested in the same manner as funds in the Real Estate
Recovery Fund. All earnings received from such investment shall
be deposited in the Real Estate License Administration Fund and
may be used for the same purposes as fees deposited in the Real
Estate License Administration Fund. Moneys in the Real Estate
License Administration Fund may be transferred to the
Professions Indirect Cost Fund as authorized under Section
2105-300 of the Department of Professional Regulation Law of
the Civil Administrative Code of Illinois. Upon the completion
of any audit of the Department OBRE, as prescribed by the
Illinois State Auditing Act, which includes an audit of the
Real Estate License Administration Fund, the Department OBRE
shall make the audit open to inspection by any interested
person.
(Source: P.A. 94-91, eff. 7-1-05.)
 
    (225 ILCS 454/25-35)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-35. Real Estate Recovery Fund. A special fund to be
known as the Real Estate Recovery Fund is created in the State
Treasury. All fines and penalties The sums received by the
Department OBRE pursuant to Article 20 the provisions of
Sections 20-20, 20-30, and 20-80 through 20-100 of this Act
shall be deposited into the State Treasury and held in the Real
Estate Recovery Fund. The money in the Real Estate Recovery
Fund shall be used by the Department OBRE exclusively for
carrying out the purposes established by this Act. If, at any
time, the balance remaining in the Real Estate Recovery Fund is
less than $750,000, the State Treasurer shall cause a transfer
of moneys to the Real Estate Recovery Fund from the Real Estate
License Administration Fund in an amount necessary to establish
a balance of $800,000 in the Real Estate Recovery Fund. These
funds may be invested and reinvested in the same manner as
authorized for pension funds in Article 1 14 of the Illinois
Pension Code. All earnings, interest, and dividends received
from investment of funds in the Real Estate Recovery Fund shall
be deposited into the Real Estate License Administration Fund
and shall be used for the same purposes as other moneys
deposited in the Real Estate License Administration Fund.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/25-37)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 25-37. Real Estate Audit Fund; audit of special
accounts; audit of fund.
    (a) A special fund to be known as the Real Estate Audit
Fund is created in the State Treasury. The State Treasurer
shall cause a transfer of $200,000 from the Real Estate License
Administration Fund to the Real Estate Audit Fund on January 1,
2002. If, at any time, the balance in the Real Estate Audit
Fund is less than $25,000, the State Treasurer shall cause a
transfer of $200,000 from the Real Estate License
Administration Fund to the Real Estate Audit Fund. The moneys
held in the Real Estate Audit Fund shall be used exclusively by
the Department OBRE to conduct audits of special accounts of
moneys belonging to others held by a broker.
    (b) Upon receipt of a complaint or evidence by the
Department OBRE sufficient to cause the Department OBRE to
reasonably believe that funds required to be maintained in a
special account by a broker have been misappropriated, the
broker shall, within 30 days of written notice, submit to an
audit of all special accounts. Such audit shall be performed by
a licensed certified public accountant, shall result in a
written report by the accountant, and shall specifically refer
to the escrow and record-keeping requirements of this Act and
the rules adopted under this Act. If it is found, pursuant to
an order issued by the Secretary Commissioner, that moneys
required to be maintained in a special account by a broker were
misappropriated, as further defined by rule, the broker shall
reimburse the Department OBRE, in addition to any other
discipline or civil penalty imposed, for the cost of the audit
performed pursuant to this Section. The Department OBRE may
file in circuit court for a judgment to enforce the collection
of the reimbursement of the cost of such audit. Any
reimbursement collected by the Department OBRE shall be
deposited into the Real Estate Audit Fund.
    (c) Moneys in the Real Estate Audit Fund may be invested
and reinvested in the same manner as funds in the Real Estate
Recovery Fund. All earnings received from such investment shall
be deposited in the Real Estate Audit Fund and may be used for
the same purpose as other moneys deposited in the Real Estate
Audit Fund. Moneys in the Real Estate Audit Fund may be
transferred to the Professions Indirect Cost Fund as authorized
under Section 2105-300 of the Department of Professional
Regulation Law of the Civil Administrative Code of Illinois.
Upon completion of any audit of the Department OBRE, prescribed
by the Illinois State Auditing Act, which includes an audit of
the Real Estate Audit Fund, the Department OBRE shall make the
audit open to inspection by any interested person.
(Source: P.A. 94-91, eff. 7-1-05.)
 
    (225 ILCS 454/30-5)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 30-5. Licensing of pre-license schools, school
branches, and instructors.
    (a) No person shall operate a pre-license school or school
branch without possessing a valid pre-license school or school
branch license issued by the Department OBRE. No person shall
act as a pre-license instructor at a pre-license school or
school branch without possessing a valid pre-license
instructor license issued by the Department OBRE. Every person
who desires to obtain a pre-license school, school branch, or
pre-license instructor license shall make application to the
Department OBRE in writing in form and substance satisfactory
to the Department OBRE and pay the required fees prescribed by
rule. In addition to any other information required to be
contained in the application, every application for an original
or renewed license shall include the applicant's Social
Security number. The Department OBRE shall issue a pre-license
school, school branch, or pre-license instructor license to
applicants who meet qualification criteria established by
rule. The Department OBRE may refuse to issue, suspend, revoke,
or otherwise discipline a pre-license school, school branch, or
pre-license instructor license or may withdraw approval of a
course offered by a pre-license school for good cause.
Disciplinary proceedings shall be conducted by the Board in the
same manner as other disciplinary proceedings under this Act.
    (b) All pre-license instructors must teach at least one
course within the period of licensure or take an instructor
training program approved by the Department OBRE in lieu
thereof. A pre-license instructor may teach at more than one
licensed pre-license school.
    (c) The term of license for pre-license schools, branches,
and instructors shall be 2 years as established by rule.
    (d) The Department OBRE or the Advisory Council may, after
notice, cause a pre-license school to attend an informal
conference before the Advisory Council for failure to comply
with any requirement for licensure or for failure to comply
with any provision of this Act or the rules for the
administration of this Act. The Advisory Council shall make a
recommendation to the Board as a result of its findings at the
conclusion of any such informal conference.
    (e) For purposes of this Section, the term "pre-license"
shall also include the 30-hour post-license course required to
be taken to retain a broker's license.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/30-10)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 30-10. Advisory Council; powers and duties. There is
created within the Department OBRE an Advisory Council to be
comprised of 5 7 members appointed by the Governor. The
members' terms shall be 4 years or until their successor is
appointed and the expiration of their terms shall be staggered
for 4-year staggered terms. No member shall be reappointed to
the Advisory Council for a term that would cause his or her
service on the Advisory Council to be longer than 12 serve more
than 8 years in a lifetime. Two Three of the members shall be
licensees who are current members of the Board, one member
shall be a representative of an Illinois real estate trade
organization who is not a member of the Board, one member shall
be a representative of a licensed pre-license school or
continuing education school, and one member shall be a
representative of an institution of higher education that
offers pre-license and continuing education courses. The Real
Estate Coordinator Director shall serve as the chairman of the
Advisory Council, ex officio, without vote. Three Advisory
Council members shall constitute a quorum. A quorum is required
for all Advisory Council decisions. The Advisory Council shall
recommend criteria for the licensing and renewal of pre-license
schools, pre-license instructors, continuing education
schools, and continuing education instructors; review
applications for these licenses to determine if the applicants
meet the qualifications for licensure established in this Act
and by rule; approve pre-license school and continuing
education curricula; and make recommendations to the Board
regarding rules to be adopted for the conduct of schools and
instructors and the administration of the education provisions
of this Act.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/30-15)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 30-15. Licensing of continuing education schools;
approval of courses.
    (a) Only continuing education schools in possession of a
valid continuing education school license may provide real
estate continuing education courses that will satisfy the
requirements of this Act. Pre-license schools licensed to offer
pre-license education courses for salespersons, brokers and
managing brokers shall qualify for a continuing education
school license upon completion of an application and the
submission of the required fee. Every entity that desires to
obtain a continuing education school license shall make
application to the Department OBRE in writing in forms
prescribed by the Department OBRE and pay the fee prescribed by
rule. In addition to any other information required to be
contained in the application, every application for an original
or renewed license shall include the applicant's Social
Security number.
    (b) The criteria for a continuing education license shall
include the following:
        (1) A sound financial base for establishing,
    promoting, and delivering the necessary courses. Budget
    planning for the School's courses should be clearly
    projected.
        (2) A sufficient number of qualified, licensed
    instructors as provided by rule.
        (3) Adequate support personnel to assist with
    administrative matters and technical assistance.
        (4) Maintenance and availability of records of
    participation for licensees.
        (5) The ability to provide each participant who
    successfully completes an approved program with a
    certificate of completion signed by the administrator of a
    licensed continuing education school on forms provided by
    the Department OBRE.
        (6) The continuing education school must have a written
    policy dealing with procedures for the management of
    grievances and fee refunds.
        (7) The continuing education school shall maintain
    lesson plans and examinations for each course.
        (8) The continuing education school shall require a 70%
    passing grade for successful completion of any continuing
    education course.
        (9) The continuing education school shall identify and
    use instructors who will teach in a planned program.
    Suggested criteria for instructor selections include:
            (A) appropriate credentials;
            (B) competence as a teacher;
            (C) knowledge of content area; and
            (D) qualification by experience.
        (10) The continuing education school shall provide a
    proctor or an electronic means of proctoring for each
    examination. The continuing education school shall be
    responsible for the conduct of the proctor. The duties and
    responsibilities of a proctor shall be established by rule.
        (11) The continuing education school must provide for
    closed book examinations for each course unless the
    Advisory Council excuses this requirement based on the
    complexity of the course material.
    (c) Advertising and promotion of continuing education
activities must be carried out in a responsible fashion,
clearly showing the educational objectives of the activity, the
nature of the audience that may benefit from the activity, the
cost of the activity to the participant and the items covered
by the cost, the amount of credit that can be earned, and the
credentials of the faculty.
    (d) The Department OBRE may or upon request of the Advisory
Council shall, after notice, cause a continuing education
school to attend an informal conference before the Advisory
Council for failure to comply with any requirement for
licensure or for failure to comply with any provision of this
Act or the rules for the administration of this Act. The
Advisory Council shall make a recommendation to the Board as a
result of its findings at the conclusion of any such informal
conference.
    (e) All continuing education schools shall maintain these
minimum criteria and pay the required fee in order to retain
their continuing education school license.
    (f) All continuing education schools shall submit, at the
time of initial application and with each license renewal, a
list of courses with course materials to be offered by the
continuing education school. The Department OBRE, however,
shall establish a mechanism whereby continuing education
schools may apply for and obtain approval for continuing
education courses that are submitted after the time of initial
application or renewal. The Department OBRE shall provide to
each continuing education school a certificate for each
approved continuing education course. All continuing education
courses shall be valid for the period coinciding with the term
of license of the continuing education school. All continuing
education schools shall provide a copy of the certificate of
the continuing education course within the course materials
given to each student or shall display a copy of the
certificate of the continuing education course in a conspicuous
place at the location of the class.
    (g) Each continuing education school shall provide to the
Department OBRE a monthly report in a format determined by the
Department OBRE, with information concerning students who
successfully completed all approved continuing education
courses offered by the continuing education school for the
prior month.
    (h) The Department OBRE, upon the recommendation of the
Advisory Council, may temporarily suspend a licensed
continuing education school's approved courses without hearing
and refuse to accept successful completion of or participation
in any of these continuing education courses for continuing
education credit from that school upon the failure of that
continuing education school to comply with the provisions of
this Act or the rules for the administration of this Act, until
such time as the Department OBRE receives satisfactory
assurance of compliance. The Department OBRE shall notify the
continuing education school of the noncompliance and may
initiate disciplinary proceedings pursuant to this Act. The
Department OBRE may refuse to issue, suspend, revoke, or
otherwise discipline the license of a continuing education
school or may withdraw approval of a continuing education
course for good cause. Failure to comply with the requirements
of this Section or any other requirements established by rule
shall be deemed to be good cause. Disciplinary proceedings
shall be conducted by the Board in the same manner as other
disciplinary proceedings under this Act.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/30-20)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 30-20. Fees for continuing education school license;
renewal; term. All applications for a continuing education
school license shall be accompanied by a nonrefundable
application fee in an amount established by rule. All
continuing education schools shall be required to submit a
renewal application, the required fee as established by rule,
and a listing of the courses to be offered during the year to
renew their continuing education school licenses. The term for
a continuing education school license shall be 2 years and as
established by rule. The fees collected under this Article 30
shall be deposited in the Real Estate License Administration
Fund and shall be used to defray the cost of administration of
the program and per diem of the Advisory Council as determined
by the Secretary Commissioner.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    (225 ILCS 454/30-25)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 30-25. Licensing of continuing education instructors.
    (a) No such person shall act as a continuing education
instructor at a continuing education school or branch without
possessing Only persons approved by the Advisory Council and in
possession of a valid continuing education instructor license
and satisfying any other qualification criteria established by
the Department by rule issued by OBRE may instruct continuing
education courses.
    (b) After the effective date of this Act, every person who
desires to obtain a continuing education instructor's license
shall attend and successfully complete a one-day instructor
development workshop, as approved by the Department. The term
of licensure for a continuing education instructor shall be 2
years and as established by rule. Every person who desires to
obtain a continuing education instructor license shall make
application to the Department OBRE in writing on forms
prescribed by the Office, accompanied by the fee prescribed by
rule. In addition to any other information required to be
contained in the application, every application for an original
or renewed license shall include the applicant's Social
Security number. The Department OBRE shall issue a continuing
education instructor license to applicants who meet
qualification criteria established by this Act or rule.
    (c) The Department OBRE may refuse to issue, suspend,
revoke, or otherwise discipline a continuing education
instructor for good cause. Disciplinary proceedings shall be
conducted by the Board in the same manner as other disciplinary
proceedings under this Act. All The term of a license for a
continuing education instructors instructor shall be 2 years
and as established by rule. All Continuing Education
Instructors must teach at least one course within the period of
licensure or take an instructor training program approved by
the Department OBRE in lieu thereof.
(Source: P.A. 91-245, eff. 12-31-99.)
 
    Section 25. The Code of Civil Procedure is amended by
changing Sections 15-1503 and 15-1508 as follows:
 
    (735 ILCS 5/15-1503)  (from Ch. 110, par. 15-1503)
    Sec. 15-1503. Notice of Foreclosure.
    (a) A notice of foreclosure, whether the foreclosure is
initiated by complaint or counterclaim, made in accordance with
this Section and recorded in the county in which the mortgaged
real estate is located shall be constructive notice of the
pendency of the foreclosure to every person claiming an
interest in or lien on the mortgaged real estate, whose
interest or lien has not been recorded prior to the recording
of such notice of foreclosure. Such notice of foreclosure must
be executed by any party or any party's attorney and shall
include (i) the names of all plaintiffs and the case number,
(ii) the court in which the action was brought, (iii) the names
of title holders of record, (iv) a legal description of the
real estate sufficient to identify it with reasonable
certainty, (v) a common address or description of the location
of the real estate and (vi) identification of the mortgage
sought to be foreclosed. An incorrect common address or
description of the location, or an immaterial error in the
identification of a plaintiff or title holder of record, shall
not invalidate the lis pendens effect of the notice under this
Section. A notice which complies with this Section shall be
deemed to comply with Section 2-1901 of the Code of Civil
Procedure and shall have the same effect as a notice filed
pursuant to that Section; however, a notice which complies with
Section 2-1901 shall not be constructive notice unless it also
complies with the requirements of this Section.
    (b) With respect to residential real estate, a copy of the
notice of foreclosure described in subsection (a) of Section
15-1503 shall be sent by first class mail, postage prepaid, to
the municipality within the boundary of which the mortgaged
real estate is located, or to the county within the boundary of
which the mortgaged real estate is located if the mortgaged
real estate is located in an unincorporated territory. A
municipality or county must clearly publish on its website a
single address to which such notice shall be sent. If a
municipality or county does not maintain a website, then the
municipality or county must publicly post in its main office a
single address to which such notice shall be sent. In the event
that a municipality or county has not complied with the
publication requirement in this subsection (b), then such
notice to the municipality or county shall be provided pursuant
to Section 2-211 of the Code of Civil Procedure.
(Source: P.A. 86-974.)
 
    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
    Sec. 15-1508. Report of Sale and Confirmation of Sale.
    (a) Report. The person conducting the sale shall promptly
make a report to the court, which report shall include a copy
of all receipts and, if any, certificate of sale.
    (b) Hearing. Upon motion and notice in accordance with
court rules applicable to motions generally, which motion shall
not be made prior to sale, the court shall conduct a hearing to
confirm the sale. Unless the court finds that (i) a notice
required in accordance with subsection (c) of Section 15-1507
was not given, (ii) the terms of sale were unconscionable,
(iii) the sale was conducted fraudulently or (iv) that justice
was otherwise not done, the court shall then enter an order
confirming the sale. The confirmation order shall include a
name, address, and telephone number of the holder of the
certificate of sale or deed issued pursuant to that certificate
or, if no certificate or deed was issued, the purchaser, whom a
municipality or county may contact with concerns about the real
estate. The confirmation order may also:
        (1) approve the mortgagee's fees and costs arising
    between the entry of the judgment of foreclosure and the
    confirmation hearing, those costs and fees to be allowable
    to the same extent as provided in the note and mortgage and
    in Section 15-1504;
        (2) provide for a personal judgment against any party
    for a deficiency; and
        (3) determine the priority of the judgments of parties
    who deferred proving the priority pursuant to subsection
    (h) of Section 15-1506, but the court shall not defer
    confirming the sale pending the determination of such
    priority.
    (b-5) Notice with respect to residential real estate. With
respect to residential real estate, the notice required under
subsection (b) of this Section shall be sent to the mortgagor
even if the mortgagor has previously been held in default. In
the event the mortgagor has filed an appearance, the notice
shall be sent to the address indicated on the appearance. In
all other cases, the notice shall be sent to the mortgagor at
the common address of the foreclosed property. The notice shall
be sent by first class mail. Unless the right to possession has
been previously terminated by the court, the notice shall
include the following language in 12-point boldface
capitalized type:
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
ILLINOIS MORTGAGE FORECLOSURE LAW.
    (b-10) Notice of confirmation order sent to municipality or
county. A copy of the confirmation order required under
subsection (b) shall be sent to the municipality in which the
foreclosed property is located, or to the county within the
boundary of which the foreclosed property is located if the
foreclosed property is located in an unincorporated territory.
A municipality or county must clearly publish on its website a
single address to which such notice shall be sent. If a
municipality or county does not maintain a website, then the
municipality or county must publicly post in its main office a
single address to which such notice shall be sent. In the event
that a municipality or county has not complied with the
publication requirement in this subsection (b-10), then such
notice to the municipality or county shall be provided pursuant
to Section 2-211 of the Code of Civil Procedure.
    (c) Failure to Give Notice. If any sale is held without
compliance with subsection (c) of Section 15-1507 of this
Article, any party entitled to the notice provided for in
paragraph (3) of that subsection (c) who was not so notified
may, by motion supported by affidavit made prior to
confirmation of such sale, ask the court which entered the
judgment to set aside the sale. Any such party shall guarantee
or secure by bond a bid equal to the successful bid at the
prior sale, unless the party seeking to set aside the sale is
the mortgagor, the real estate sold at the sale is residential
real estate, and the mortgagor occupies the residential real
estate at the time the motion is filed. In that event, no
guarantee or bond shall be required of the mortgagor. Any
subsequent sale is subject to the same notice requirement as
the original sale.
    (d) Validity of Sale. Except as provided in subsection (c)
of Section 15-1508, no sale under this Article shall be held
invalid or be set aside because of any defect in the notice
thereof or in the publication of the same, or in the
proceedings of the officer conducting the sale, except upon
good cause shown in a hearing pursuant to subsection (b) of
Section 15-1508. At any time after a sale has occurred, any
party entitled to notice under paragraph (3) of subsection (c)
of Section 15-1507 may recover from the mortgagee any damages
caused by the mortgagee's failure to comply with such paragraph
(3). Any party who recovers damages in a judicial proceeding
brought under this subsection may also recover from the
mortgagee the reasonable expenses of litigation, including
reasonable attorney's fees.
    (e) Deficiency Judgment. In any order confirming a sale
pursuant to the judgment of foreclosure, the court shall also
enter a personal judgment for deficiency against any party (i)
if otherwise authorized and (ii) to the extent requested in the
complaint and proven upon presentation of the report of sale in
accordance with Section 15-1508. Except as otherwise provided
in this Article, a judgment may be entered for any balance of
money that may be found due to the plaintiff, over and above
the proceeds of the sale or sales, and enforcement may be had
for the collection of such balance, the same as when the
judgment is solely for the payment of money. Such judgment may
be entered, or enforcement had, only in cases where personal
service has been had upon the persons personally liable for the
mortgage indebtedness, unless they have entered their
appearance in the foreclosure action.
    (f) Satisfaction. Upon confirmation of the sale, the
judgment stands satisfied to the extent of the sale price less
expenses and costs. If the order confirming the sale includes a
deficiency judgment, the judgment shall become a lien in the
manner of any other judgment for the payment of money.
    (g) The order confirming the sale shall include,
notwithstanding any previous orders awarding possession during
the pendency of the foreclosure, an award to the purchaser of
possession of the mortgaged real estate, as of the date 30 days
after the entry of the order, against the parties to the
foreclosure whose interests have been terminated.
    An order of possession authorizing the removal of a person
from possession of the mortgaged real estate shall be entered
and enforced only against those persons personally named as
individuals in the complaint or the petition under subsection
(h) of Section 15-1701 and in the order of possession and shall
not be entered and enforced against any person who is only
generically described as an unknown owner or nonrecord claimant
or by another generic designation in the complaint.
    Notwithstanding the preceding paragraph, the failure to
personally name, include, or seek an award of possession of the
mortgaged real estate against a person in the confirmation
order shall not abrogate any right that the purchaser may have
to possession of the mortgaged real estate and to maintain a
proceeding against that person for possession under Article 9
of this Code or subsection (h) of Section 15-1701; and
possession against a person who (1) has not been personally
named as a party to the foreclosure and (2) has not been
provided an opportunity to be heard in the foreclosure
proceeding may be sought only by maintaining a proceeding under
Article 9 of this Code or subsection (h) of Section 15-1701.
(Source: P.A. 95-826, eff. 8-14-08; 96-265, eff. 8-11-09.)
 
    Section 30. The Residential Real Property Disclosure Act is
amended by changing Section 70 as follows:
 
    (765 ILCS 77/70)
    Sec. 70. Predatory lending database program.
    (a) As used in this Article:
    "Adjustable rate mortgage" or "ARM" means a closed-end
mortgage transaction that allows adjustments of the loan
interest rate during the first 3 years of the loan term.
    "Borrower" means a person seeking a mortgage loan.
    "Broker" means a "broker" or "loan broker", as defined in
subsection (p) of Section 1-4 of the Residential Mortgage
License Act of 1987.
    "Closing agent" means an individual assigned by a title
insurance company or a broker or originator to ensure that the
execution of documents related to the closing of a real estate
sale or the refinancing of a real estate loan and the
disbursement of closing funds are in conformity with the
instructions of the entity financing the transaction.
    "Counseling" means in-person counseling provided by a
counselor employed by a HUD-certified counseling agency to all
borrowers, or documented telephone counseling where a hardship
would be imposed on one or more borrowers. A hardship shall
exist in instances in which the borrower is confined to his or
her home due to medical conditions, as verified in writing by a
physician, or the borrower resides 50 miles or more from the
nearest participating HUD-certified housing counseling agency.
In instances of telephone counseling, the borrower must supply
all necessary documents to the counselor at least 72 hours
prior to the scheduled telephone counseling session.
    "Counselor" means a counselor employed by a HUD-certified
housing counseling agency.
    "Credit score" means a credit risk score as defined by the
Fair Isaac Corporation, or its successor, and reported under
such names as "BEACON", "EMPIRICA", and "FAIR ISAAC RISK SCORE"
by one or more of the following credit reporting agencies or
their successors: Equifax, Inc., Experian Information
Solutions, Inc., and TransUnion LLC. If the borrower's credit
report contains credit scores from 2 reporting agencies, then
the broker or loan originator shall report the lower score. If
the borrower's credit report contains credit scores from 3
reporting agencies, then the broker or loan originator shall
report the middle score.
    "Department" means the Department of Financial and
Professional Regulation.
    "Exempt person" means that term as it is defined in
subsections (d)(1) and (d)(1.5) of Section 1-4 of the
Residential Mortgage License Act of 1987.
    "First-time homebuyer" means a borrower who has not held an
ownership interest in residential property.
    "HUD-certified counseling" or "counseling" means
counseling given to a borrower by a counselor employed by a
HUD-certified housing counseling agency.
    "Interest only" means a closed-end loan that permits one or
more payments of interest without any reduction of the
principal balance of the loan, other than the first payment on
the loan.
    "Lender" means that term as it is defined in subsection (g)
of Section 1-4 of the Residential Mortgage License Act of 1987.
    "Licensee" means that term as it is defined in subsection
(e) of Section 1-4 of the Residential Mortgage License Act of
1987.
    "Mortgage loan" means that term as it is defined in
subsection (f) of Section 1-4 of the Residential Mortgage
License Act of 1987.
    "Negative amortization" means an amortization method under
which the outstanding balance may increase at any time over the
course of the loan because the regular periodic payment does
not cover the full amount of interest due.
    "Originator" means a "loan originator" as defined in
subsection (hh) of Section 1-4 of the Residential Mortgage
License Act of 1987, except an exempt person.
    "Points and fees" has the meaning ascribed to that term in
Section 10 of the High Risk Home Loan Act.
    "Prepayment penalty" means a charge imposed by a lender
under a mortgage note or rider when the loan is paid before the
expiration of the term of the loan.
    "Refinancing" means a loan secured by the borrower's or
borrowers' primary residence where the proceeds are not used as
purchase money for the residence.
    "Title insurance company" means any domestic company
organized under the laws of this State for the purpose of
conducting the business of guaranteeing or insuring titles to
real estate and any title insurance company organized under the
laws of another State, the District of Columbia, or a foreign
government and authorized to transact the business of
guaranteeing or insuring titles to real estate in this State.
    (a-5) A predatory lending database program shall be
established within Cook County. The program shall be
administered in accordance with this Article. The inception
date of the program shall be July 1, 2008. A predatory lending
database program shall be expanded to include Kane, Peoria, and
Will counties. The inception date of the expansion of the
program as it applies to Kane, Peoria, and Will counties shall
be July 1, 2010. Until the inception date, none of the duties,
obligations, contingencies, or consequences of or from the
program shall be imposed. The program shall apply to all
mortgage applications that are governed by this Article and
that are made or taken on or after the inception of the
program.
    (b) The database created under this program shall be
maintained and administered by the Department. The database
shall be designed to allow brokers, originators, counselors,
title insurance companies, and closing agents to submit
information to the database online. The database shall not be
designed to allow those entities to retrieve information from
the database, except as otherwise provided in this Article.
Information submitted by the broker or originator to the
Department may be used to populate the online form submitted by
a counselor, title insurance company, or closing agent.
    (c) Within 10 days after taking a mortgage application, the
broker or originator for any mortgage on residential property
within the program area must submit to the predatory lending
database all of the information required under Section 72 and
any other information required by the Department by rule.
Within 7 days after receipt of the information, the Department
shall compare that information to the housing counseling
standards in Section 73 and issue to the borrower and the
broker or originator a determination of whether counseling is
recommended for the borrower. The borrower may not waive
counseling. If at any time after submitting the information
required under Section 72 the broker or originator (i) changes
the terms of the loan or (ii) issues a new commitment to the
borrower, then, within 5 days thereafter, the broker or
originator shall re-submit all of the information required
under Section 72 and, within 4 days after receipt of the
information re-submitted by the broker or originator, the
Department shall compare that information to the housing
counseling standards in Section 73 and shall issue to the
borrower and the broker or originator a new determination of
whether re-counseling is recommended for the borrower based on
the information re-submitted by the broker or originator. The
Department shall require re-counseling if the loan terms have
been modified to meet another counseling standard in Section
73, or if the broker has increased the interest rate by more
than 200 basis points.
    (d) If the Department recommends counseling for the
borrower under subsection (c), then the Department shall notify
the borrower of all participating HUD-certified counseling
agencies located within the State and direct the borrower to
interview with a counselor associated with one of those
agencies. Within 10 days after receipt of the notice of
HUD-certified counseling agencies, the borrower shall select
one of those agencies and shall engage in an interview with a
counselor associated with that agency. Within 7 days after
interviewing the borrower, the counselor must submit to the
predatory lending database all of the information required
under Section 74 and any other information required by the
Department by rule. Reasonable and customary costs not to
exceed $300 associated with counseling provided under the
program shall be paid by the broker or originator. The
Department shall annually calculate to the nearest dollar an
adjusted rate for inflation. A counselor shall not recommend or
suggest that a borrower contact any specific mortgage
origination company, financial institution, or entity that
deals in mortgage finance to obtain a loan, another quote, or
for any other reason related to the specific mortgage
transaction; however, a counselor may suggest that the borrower
seek an opinion or a quote from another mortgage origination
company, financial institution, or entity that deals in
mortgage finance. A counselor or housing counseling agency that
in good faith provides counseling shall not be liable to a
broker or originator or borrower for civil damages, except for
willful or wanton misconduct on the part of the counselor in
providing the counseling.
    (e) The broker or originator and the borrower may not take
any legally binding action concerning the loan transaction
until the later of the following:
        (1) the Department issues a determination not to
    recommend HUD-certified counseling for the borrower in
    accordance with subsection (c); or
        (2) the Department issues a determination that
    HUD-certified counseling is recommended for the borrower
    and the counselor submits all required information to the
    database in accordance with subsection (d).
    (f) Within 10 days after closing, the title insurance
company or closing agent must submit to the predatory lending
database all of the information required under Section 76 and
any other information required by the Department by rule.
    (g) The title insurance company or closing agent shall
attach to the mortgage a certificate of compliance with the
requirements of this Article, as generated by the database. If
the title insurance company or closing agent fails to attach
the certificate of compliance, then the mortgage is not
recordable. In addition, if any lis pendens for a residential
mortgage foreclosure is recorded on the property within the
program area, a certificate of service must be simultaneously
recorded that affirms that a copy of the lis pendens was filed
with the Department. If the certificate of service is not
recorded, then the lis pendens pertaining to the residential
mortgage foreclosure in question is not recordable and is of no
force and effect.
    (h) All information provided to the predatory lending
database under the program is confidential and is not subject
to disclosure under the Freedom of Information Act, except as
otherwise provided in this Article. Information or documents
obtained by employees of the Department in the course of
maintaining and administering the predatory lending database
are deemed confidential. Employees are prohibited from making
disclosure of such confidential information or documents. Any
request for production of information from the predatory
lending database, whether by subpoena, notice, or any other
source, shall be referred to the Department of Financial and
Professional Regulation. Any borrower may authorize in writing
the release of database information. The Department may use the
information in the database without the consent of the
borrower: (i) for the purposes of administering and enforcing
the program; (ii) to provide relevant information to a
counselor providing counseling to a borrower under the program;
or (iii) to the appropriate law enforcement agency or the
applicable administrative agency if the database information
demonstrates criminal, fraudulent, or otherwise illegal
activity.
    (i) Nothing in this Article is intended to prevent a
borrower from making his or her own decision as to whether to
proceed with a transaction.
    (j) Any person who violates any provision of this Article
commits an unlawful practice within the meaning of the Consumer
Fraud and Deceptive Business Practices Act.
    (k) During the existence of the program, the Department
shall submit semi-annual reports to the Governor and to the
General Assembly by May 1 and November 1 of each year detailing
its findings regarding the program. The report shall include,
by county, at least the following information for each
reporting period:
        (1) the number of loans registered with the program;
        (2) the number of borrowers receiving counseling;
        (3) the number of loans closed;
        (4) the number of loans requiring counseling for each
    of the standards set forth in Section 73;
        (5) the number of loans requiring counseling where the
    mortgage originator changed the loan terms subsequent to
    counseling; .
        (6) the number of licensed mortgage brokers and loan
    originators entering information into the database;
        (7) the number of investigations based on information
    obtained from the database, including the number of
    licensees fined, the number of licenses suspended, and the
    number of licenses revoked;
        (8) a summary of the types of non-traditional mortgage
    products being offered; and
        (9) a summary of how the Department is actively
    utilizing the program to combat mortgage fraud.
(Source: P.A. 95-691, eff. 6-1-08; 96-328, eff. 8-11-09.)
 
    (225 ILCS 454/5-30 rep.)
    (225 ILCS 454/5-55 rep.)
    (225 ILCS 454/20-30 rep.)
    (225 ILCS 454/20-35 rep.)
    (225 ILCS 454/20-40 rep.)
    (225 ILCS 454/20-45 rep.)
    (225 ILCS 454/20-80 rep.)
    (225 ILCS 454/20-120 rep.)
    (225 ILCS 454/30-30 rep.)
    Section 95. The Real Estate License Act of 2000 is amended
by repealing Sections 5-30, 5-55, 20-30, 20-35, 20-40, 20-45,
20-80, 20-120, and 30-30.
 
    Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
 
    Section 99. Effective date. This Act takes effect upon
becoming law, except that Sections 5, 20, and 95 take effect on
December 31, 2009 and Sections 10 and 25 take effect 60 days
after becoming law.