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91st General Assembly
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Public Act 91-0702

SB239 Enrolled                                 LRB9102225ACtm

    AN ACT to amend the Real Estate License Act  of  2000  by
changing Sections 1-10 and 5-60.

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

    Section  5.   The  Real  Estate  License  Act  of 2000 is
amended by changing Sections 1-10 and 5-60 as follows:

    (225 ILCS 454/1-10)
    Sec. 1-10. Definitions.  In this Act, unless the  context
otherwise requires:
    "Act" means the Real Estate License Act of 2000 1999.
    "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 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 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  for  another and for 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
         (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
    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
         (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
    "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
         (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 OBRE as a school for continuing  education  in  accordance
with Section 30-15 of this Act.
    "Credit  hour"  means 50 minutes of classroom instruction
in course work that meets the requirements set forth in rules
adopted by OBRE.
    "Customer" means a consumer who is not being  represented
by  the  licensee  but  for  whom  the licensee is performing
ministerial acts.
    "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.
    "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.
    "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  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
    "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 of the real estate
    "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
    "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
    "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 OBRE to signify
that the person named on the card is currently licensed under
this Act.
    "Pre-license school" means  a  school  licensed  by  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.
    "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.
      "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.
    "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. 91-245, eff.  12-31-99;  91-585,  eff.  1-1-00;
91-603, eff. 1-1-00; revised 10-27-99.)

    (225 ILCS 454/5-60)
    Sec. 5-60.  Broker licensed in another state; nonresident
salesperson;  reciprocal  agreements;  agent  for  service of
    (a)  A broker's license may be issued by OBRE to a broker
licensed under the  laws  of  another  state  of  the  United
States, under the following conditions:
         (1)  the  broker  holds a broker's license in 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)  the  broker  has  been actively practicing as a
    broker in the broker's state of domicile for a period  of
    not  less  than 2 years, immediately prior to the date of
         (4)  the broker  furnishes  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; and
         (5)  the  broker completes a course of education and
    passes a test on Illinois specific real estate  brokerage
    laws; and.
         (6)  OBRE has a reciprocal agreement with that state
    that includes the provisions of this Section.
    (b)  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
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 in which he or she is domiciled;
         (2)  the salesperson is domiciled in the same  state
    as the broker with whom he or she is associated; and
         (3)  the salesperson 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 OBRE.
    (c)  As  a  condition  precedent  to  the  issuance  of a
license to a nonresident broker or salesperson, the 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 OBRE as provided in this Act.  The  agreement
shall  be  filed  with  OBRE and shall remain in force for so
long as the 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
    (d)  Prior   to  the  issuance  of  any  license  to  any
nonresident, verification of active licensure issued for  the
conduct  of  such  business  in any other state must be filed
with OBRE by the nonresident, and the same fees must be  paid
as  provided  in  this Act for the obtaining of a broker's or
salesperson's license in this State.
    (e)  Licenses   previously   granted   under   reciprocal
agreements with other states shall remain in force so long as
OBRE has a reciprocal agreement with the state that  includes
the  requirements  of  this  Section,  unless that license is
suspended, revoked, or terminated  by  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.
    (f)  Prior to the issuance of a license to a  nonresident
broker  or  salesperson, the broker or salesperson shall file
with  OBRE  a  designation  in  writing  that  appoints   the
Commissioner  to  act  as  his  or  her  agent  upon whom all
judicial and other process or legal notices directed  to  the
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
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 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  Commissioner shall forthwith mail a copy of
the same by certified mail to the last known business address
of the licensee.
    (g)  Any  person  holding  a  valid  license  under  this
Section shall be eligible to obtain a  resident  broker's  or
salesperson's  license without examination should that person
change their state of domicile to Illinois  and  that  person
otherwise  meets  the  qualifications or licensure under this
(Source: P.A. 91-245, eff. 12-31-99.)

    Section 99.   Effective  date.   This  Act  takes  effect
December 31, 1999.

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