100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5209

 

Introduced , by Rep. Tom Demmer

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 454/1-10
225 ILCS 454/5-10
225 ILCS 454/5-15
225 ILCS 454/5-27
225 ILCS 454/5-28
225 ILCS 454/5-40
225 ILCS 454/5-50
225 ILCS 454/20-20

    Amends the Real Estate License Act of 2000. Removes provisions relating to sponsor cards issued by sponsoring brokers to managing brokers, brokers, or leasing agents. Adds provisions requiring a sponsoring broker to notify the Department of Financial and Professional Regulation within 24 hours of a sponsorship of a licensee in a manner provided by rule. When a licensee's employment with a sponsoring broker is terminated, requires the licensee and sponsoring broker to notify the Department of the termination within 24 hours in a manner provided by rule. Provides that the failure to provide that notification shall subject the sponsoring broker or licensee to discipline. Adds provisions regarding the Department's recognition of a sponsorship by a sponsoring broker. Makes conforming and other changes. Effective immediately.


LRB100 17392 XWW 32558 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5209LRB100 17392 XWW 32558 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Real Estate License Act of 2000 is amended
5by changing Sections 1-10, 5-10, 5-15, 5-27, 5-28, 5-40, 5-50,
6and 20-20 as follows:
 
7    (225 ILCS 454/1-10)
8    (Section scheduled to be repealed on January 1, 2020)
9    Sec. 1-10. Definitions. In this Act, unless the context
10otherwise requires:
11    "Act" means the Real Estate License Act of 2000.
12    "Address of record" means the designated address recorded
13by the Department in the applicant's or licensee's application
14file or license file as maintained by the Department's
15licensure maintenance unit. It is the duty of the applicant or
16licensee to inform the Department of any change of address, and
17those changes must be made either through the Department's
18website or by contacting the Department.
19    "Agency" means a relationship in which a broker or
20licensee, whether directly or through an affiliated licensee,
21represents a consumer by the consumer's consent, whether
22express or implied, in a real property transaction.
23    "Applicant" means any person, as defined in this Section,

 

 

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1who applies to the Department for a valid license as a managing
2broker, broker, or leasing agent.
3    "Blind advertisement" means any real estate advertisement
4that does not include the sponsoring broker's business name and
5that is used by any licensee regarding the sale or lease of
6real estate, including his or her own, licensed activities, or
7the hiring of any licensee under this Act. The broker's
8business name in the case of a franchise shall include the
9franchise affiliation as well as the name of the individual
10firm.
11    "Board" means the Real Estate Administration and
12Disciplinary Board of the Department as created by Section
1325-10 of this Act.
14    "Branch office" means a sponsoring broker's office other
15than the sponsoring broker's principal office.
16    "Broker" means an individual, partnership, limited
17liability company, corporation, or registered limited
18liability partnership other than a leasing agent who, whether
19in person or through any media or technology, for another and
20for compensation, or with the intention or expectation of
21receiving compensation, either directly or indirectly:
22        (1) Sells, exchanges, purchases, rents, or leases real
23    estate.
24        (2) Offers to sell, exchange, purchase, rent, or lease
25    real estate.
26        (3) Negotiates, offers, attempts, or agrees to

 

 

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1    negotiate the sale, exchange, purchase, rental, or leasing
2    of real estate.
3        (4) Lists, offers, attempts, or agrees to list real
4    estate for sale, rent, lease, or exchange.
5        (5) Buys, sells, offers to buy or sell, or otherwise
6    deals in options on real estate or improvements thereon.
7        (6) Supervises the collection, offer, attempt, or
8    agreement to collect rent for the use of real estate.
9        (7) Advertises or represents himself or herself as
10    being engaged in the business of buying, selling,
11    exchanging, renting, or leasing real estate.
12        (8) Assists or directs in procuring or referring of
13    leads or prospects, intended to result in the sale,
14    exchange, lease, or rental of real estate.
15        (9) Assists or directs in the negotiation of any
16    transaction intended to result in the sale, exchange,
17    lease, or rental of real estate.
18        (10) Opens real estate to the public for marketing
19    purposes.
20        (11) Sells, rents, leases, or offers for sale or lease
21    real estate at auction.
22        (12) Prepares or provides a broker price opinion or
23    comparative market analysis as those terms are defined in
24    this Act, pursuant to the provisions of Section 10-45 of
25    this Act.
26    "Brokerage agreement" means a written or oral agreement

 

 

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1between a sponsoring broker and a consumer for licensed
2activities to be provided to a consumer in return for
3compensation or the right to receive compensation from another.
4Brokerage agreements may constitute either a bilateral or a
5unilateral agreement between the broker and the broker's client
6depending upon the content of the brokerage agreement. All
7exclusive brokerage agreements shall be in writing.
8    "Broker price opinion" means an estimate or analysis of the
9probable selling price of a particular interest in real estate,
10which may provide a varying level of detail about the
11property's condition, market, and neighborhood and information
12on comparable sales. The activities of a real estate broker or
13managing broker engaging in the ordinary course of business as
14a broker, as defined in this Section, shall not be considered a
15broker price opinion if no compensation is paid to the broker
16or managing broker, other than compensation based upon the sale
17or rental of real estate.
18    "Client" means a person who is being represented by a
19licensee.
20    "Comparative market analysis" is an analysis or opinion
21regarding pricing, marketing, or financial aspects relating to
22a specified interest or interests in real estate that may be
23based upon an analysis of comparative market data, the
24expertise of the real estate broker or managing broker, and
25such other factors as the broker or managing broker may deem
26appropriate in developing or preparing such analysis or

 

 

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1opinion. The activities of a real estate broker or managing
2broker engaging in the ordinary course of business as a broker,
3as defined in this Section, shall not be considered a
4comparative market analysis if no compensation is paid to the
5broker or managing broker, other than compensation based upon
6the sale or rental of real estate.
7    "Compensation" means the valuable consideration given by
8one person or entity to another person or entity in exchange
9for the performance of some activity or service. Compensation
10shall include the transfer of valuable consideration,
11including without limitation the following:
12        (1) commissions;
13        (2) referral fees;
14        (3) bonuses;
15        (4) prizes;
16        (5) merchandise;
17        (6) finder fees;
18        (7) performance of services;
19        (8) coupons or gift certificates;
20        (9) discounts;
21        (10) rebates;
22        (11) a chance to win a raffle, drawing, lottery, or
23    similar game of chance not prohibited by any other law or
24    statute;
25        (12) retainer fee; or
26        (13) salary.

 

 

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1    "Confidential information" means information obtained by a
2licensee from a client during the term of a brokerage agreement
3that (i) was made confidential by the written request or
4written instruction of the client, (ii) deals with the
5negotiating position of the client, or (iii) is information the
6disclosure of which could materially harm the negotiating
7position of the client, unless at any time:
8        (1) the client permits the disclosure of information
9    given by that client by word or conduct;
10        (2) the disclosure is required by law; or
11        (3) the information becomes public from a source other
12    than the licensee.
13    "Confidential information" shall not be considered to
14include material information about the physical condition of
15the property.
16    "Consumer" means a person or entity seeking or receiving
17licensed activities.
18    "Coordinator" means the Coordinator of Real Estate created
19in Section 25-15 of this Act.
20    "Credit hour" means 50 minutes of classroom instruction in
21course work that meets the requirements set forth in rules
22adopted by the Department.
23    "Customer" means a consumer who is not being represented by
24the licensee but for whom the licensee is performing
25ministerial acts.
26    "Department" means the Department of Financial and

 

 

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1Professional Regulation.
2    "Designated agency" means a contractual relationship
3between a sponsoring broker and a client under Section 15-50 of
4this Act in which one or more licensees associated with or
5employed by the broker are designated as agent of the client.
6    "Designated agent" means a sponsored licensee named by a
7sponsoring broker as the legal agent of a client, as provided
8for in Section 15-50 of this Act.
9    "Dual agency" means an agency relationship in which a
10licensee is representing both buyer and seller or both landlord
11and tenant in the same transaction. When the agency
12relationship is a designated agency, the question of whether
13there is a dual agency shall be determined by the agency
14relationships of the designated agent of the parties and not of
15the sponsoring broker.
16    "Education provider" means a school licensed by the
17Department offering courses in pre-license, post-license, or
18continuing education required by this Act.
19    "Employee" or other derivative of the word "employee", when
20used to refer to, describe, or delineate the relationship
21between a sponsoring broker and a managing broker, broker, or a
22leasing agent, shall be construed to include an independent
23contractor relationship, provided that a written agreement
24exists that clearly establishes and states the relationship.
25All responsibilities of a broker shall remain.
26    "Escrow moneys" means all moneys, promissory notes or any

 

 

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1other type or manner of legal tender or financial consideration
2deposited with any person for the benefit of the parties to the
3transaction. A transaction exists once an agreement has been
4reached and an accepted real estate contract signed or lease
5agreed to by the parties. Escrow moneys includes without
6limitation earnest moneys and security deposits, except those
7security deposits in which the person holding the security
8deposit is also the sole owner of the property being leased and
9for which the security deposit is being held.
10    "Electronic means of proctoring" means a methodology
11providing assurance that the person taking a test and
12completing the answers to questions is the person seeking
13licensure or credit for continuing education and is doing so
14without the aid of a third party or other device.
15    "Exclusive brokerage agreement" means a written brokerage
16agreement that provides that the sponsoring broker has the sole
17right, through one or more sponsored licensees, to act as the
18exclusive designated agent or representative of the client and
19that meets the requirements of Section 15-75 of this Act.
20    "Inoperative" means a status of licensure where the
21licensee holds a current license under this Act, but the
22licensee is prohibited from engaging in licensed activities
23because the licensee is unsponsored or the license of the
24sponsoring broker with whom the licensee is associated or by
25whom he or she is employed is currently expired, revoked,
26suspended, or otherwise rendered invalid under this Act.

 

 

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1    "Interactive delivery method" means delivery of a course by
2an instructor through a medium allowing for 2-way communication
3between the instructor and a student in which either can
4initiate or respond to questions.
5    "Leads" means the name or names of a potential buyer,
6seller, lessor, lessee, or client of a licensee.
7    "Leasing Agent" means a person who is employed by a broker
8to engage in licensed activities limited to leasing residential
9real estate who has obtained a license as provided for in
10Section 5-5 of this Act.
11    "License" means the document issued by the Department
12certifying that the person named thereon has fulfilled all
13requirements prerequisite to licensure under this Act.
14    "Licensed activities" means those activities listed in the
15definition of "broker" under this Section.
16    "Licensee" means any person, as defined in this Section,
17who holds a valid unexpired license as a managing broker,
18broker, or leasing agent.
19    "Listing presentation" means a communication between a
20managing broker or broker and a consumer in which the licensee
21is attempting to secure a brokerage agreement with the consumer
22to market the consumer's real estate for sale or lease.
23    "Managing broker" means a broker who has supervisory
24responsibilities for licensees in one or, in the case of a
25multi-office company, more than one office and who has been
26appointed as such by the sponsoring broker.

 

 

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1    "Medium of advertising" means any method of communication
2intended to influence the general public to use or purchase a
3particular good or service or real estate.
4    "Ministerial acts" means those acts that a licensee may
5perform for a consumer that are informative or clerical in
6nature and do not rise to the level of active representation on
7behalf of a consumer. Examples of these acts include without
8limitation (i) responding to phone inquiries by consumers as to
9the availability and pricing of brokerage services, (ii)
10responding to phone inquiries from a consumer concerning the
11price or location of property, (iii) attending an open house
12and responding to questions about the property from a consumer,
13(iv) setting an appointment to view property, (v) responding to
14questions of consumers walking into a licensee's office
15concerning brokerage services offered or particular
16properties, (vi) accompanying an appraiser, inspector,
17contractor, or similar third party on a visit to a property,
18(vii) describing a property or the property's condition in
19response to a consumer's inquiry, (viii) completing business or
20factual information for a consumer on an offer or contract to
21purchase on behalf of a client, (ix) showing a client through a
22property being sold by an owner on his or her own behalf, or
23(x) referral to another broker or service provider.
24    "Office" means a broker's place of business where the
25general public is invited to transact business and where
26records may be maintained and licenses displayed, whether or

 

 

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1not it is the broker's principal place of business.
2    "Person" means and includes individuals, entities,
3corporations, limited liability companies, registered limited
4liability partnerships, and partnerships, foreign or domestic,
5except that when the context otherwise requires, the term may
6refer to a single individual or other described entity.
7    "Personal assistant" means a licensed or unlicensed person
8who has been hired for the purpose of aiding or assisting a
9sponsored licensee in the performance of the sponsored
10licensee's job.
11    "Pocket card" means the card issued by the Department to
12signify that the person named on the card is currently licensed
13under this Act.
14    "Pre-renewal period" means the period between the date of
15issue of a currently valid license and the license's expiration
16date.
17    "Proctor" means any person, including, but not limited to,
18an instructor, who has a written agreement to administer
19examinations fairly and impartially with a licensed education
20provider.
21    "Real estate" means and includes leaseholds as well as any
22other interest or estate in land, whether corporeal,
23incorporeal, freehold, or non-freehold and whether the real
24estate is situated in this State or elsewhere. "Real estate"
25does not include property sold, exchanged, or leased as a
26timeshare or similar vacation item or interest, vacation club

 

 

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1membership, or other activity formerly regulated under the Real
2Estate Timeshare Act of 1999 (repealed).
3    "Regular employee" means a person working an average of 20
4hours per week for a person or entity who would be considered
5as an employee under the Internal Revenue Service eleven main
6tests in three categories being behavioral control, financial
7control and the type of relationship of the parties, formerly
8the twenty factor test.
9    "Secretary" means the Secretary of the Department of
10Financial and Professional Regulation, or a person authorized
11by the Secretary to act in the Secretary's stead.
12    "Sponsoring broker" means the broker who sponsors has
13issued a sponsor card to a licensed managing broker, broker, or
14a leasing agent.
15    "Sponsor card" means the temporary permit issued by the
16sponsoring broker certifying that the managing broker, broker,
17or leasing agent named thereon is employed by or associated by
18written agreement with the sponsoring broker, as provided for
19in Section 5-40 of this Act.
20(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18;
21100-534, eff. 9-22-17; revised 10-2-17.)
 
22    (225 ILCS 454/5-10)
23    (Section scheduled to be repealed on January 1, 2020)
24    Sec. 5-10. Requirements for license as leasing agent;
25continuing education.

 

 

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1    (a) Every applicant for licensure as a leasing agent must
2meet the following qualifications:
3        (1) be at least 18 years of age;
4        (2) be of good moral character;
5        (3) successfully complete a 4-year course of study in a
6    high school or secondary school or an equivalent course of
7    study approved by the Illinois State Board of Education;
8        (4) personally take and pass a written examination
9    authorized by the Department sufficient to demonstrate the
10    applicant's knowledge of the provisions of this Act
11    relating to leasing agents and the applicant's competence
12    to engage in the activities of a licensed leasing agent;
13        (5) provide satisfactory evidence of having completed
14    15 hours of instruction in an approved course of study
15    relating to the leasing of residential real property. The
16    Board shall recommend to the Department the number of hours
17    each topic of study shall require. The course of study
18    shall, among other topics, cover the provisions of this Act
19    applicable to leasing agents; fair housing issues relating
20    to residential leasing; advertising and marketing issues;
21    leases, applications, and credit reports; owner-tenant
22    relationships and owner-tenant laws; the handling of
23    funds; and environmental issues relating to residential
24    real property;
25        (6) complete any other requirements as set forth by
26    rule; and

 

 

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1        (7) present a valid application for issuance of an
2    initial license accompanied by a sponsor card and the fees
3    specified by rule.
4    (b) No applicant shall engage in any of the activities
5covered by this Act until a valid sponsorship sponsor card has
6been recognized by the Department issued to such applicant. The
7sponsor card shall be valid for a maximum period of 45 days
8after the date of issuance unless extended for good cause as
9provided by rule.
10    (c) Successfully completed course work, completed pursuant
11to the requirements of this Section, may be applied to the
12course work requirements to obtain a managing broker's or
13broker's license as provided by rule. The Board may recommend
14to the Department and the Department may adopt requirements for
15approved courses, course content, and the approval of courses,
16instructors, and education providers, as well as education
17provider and instructor fees. The Department may establish
18continuing education requirements for licensed leasing agents,
19by rule, consistent with the language and intent of this Act,
20with the advice of the Board.
21    (d) The continuing education requirement for leasing
22agents shall consist of a single core curriculum to be
23established by the Department as recommended by the Board.
24Leasing agents shall be required to complete no less than 6
25hours of continuing education in the core curriculum for each
262-year renewal period.

 

 

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1(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
 
2    (225 ILCS 454/5-15)
3    (Section scheduled to be repealed on January 1, 2020)
4    Sec. 5-15. Necessity of managing broker, broker, or leasing
5agent license or sponsor card; ownership restrictions.
6    (a) It is unlawful for any person, corporation, limited
7liability company, registered limited liability partnership,
8or partnership to act as a managing broker, broker, or leasing
9agent or to advertise or assume to act as such managing broker,
10broker or leasing agent until a valid sponsorship has been
11recognized by the Department without a properly issued sponsor
12card or a license issued under this Act by the Department,
13either directly or through its authorized designee.
14    (b) No corporation shall be granted a license or engage in
15the business or capacity, either directly or indirectly, of a
16broker, unless every officer of the corporation who actively
17participates in the real estate activities of the corporation
18holds a license as a managing broker or broker and unless every
19employee who acts as a managing broker, broker, or leasing
20agent for the corporation holds a license as a managing broker,
21broker, or leasing agent.
22    (c) No partnership shall be granted a license or engage in
23the business or serve in the capacity, either directly or
24indirectly, of a broker, unless every general partner in the
25partnership holds a license as a managing broker or broker and

 

 

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1unless every employee who acts as a managing broker, broker, or
2leasing agent for the partnership holds a license as a managing
3broker, broker, or leasing agent. In the case of a registered
4limited liability partnership (LLP), every partner in the LLP
5must hold a license as a managing broker or broker and every
6employee who acts as a managing broker, broker, or leasing
7agent must hold a license as a managing broker, broker, or
8leasing agent.
9    (d) No limited liability company shall be granted a license
10or engage in the business or serve in the capacity, either
11directly or indirectly, of a broker unless every manager in the
12limited liability company or every member in a member managed
13limited liability company holds a license as a managing broker
14or broker and unless every other member and employee who acts
15as a managing broker, broker, or leasing agent for the limited
16liability company holds a license as a managing broker, broker,
17or leasing agent.
18    (e) No partnership, limited liability company, or
19corporation shall be licensed to conduct a brokerage business
20where an individual leasing agent, or group of leasing agents,
21owns or directly or indirectly controls more than 49% of the
22shares of stock or other ownership in the partnership, limited
23liability company, or corporation.
24(Source: P.A. 99-227, eff. 8-3-15.)
 
25    (225 ILCS 454/5-27)

 

 

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1    (Section scheduled to be repealed on January 1, 2020)
2    Sec. 5-27. Requirements for licensure as a broker.
3    (a) Every applicant for licensure as a broker must meet the
4following qualifications:
5        (1) Be at least 21 years of age. The minimum age of 21
6    years shall be waived for any person seeking a license as a
7    broker who has attained the age of 18 and can provide
8    evidence of the successful completion of at least 4
9    semesters of post-secondary school study as a full-time
10    student or the equivalent, with major emphasis on real
11    estate courses, in a school approved by the Department;
12        (2) Be of good moral character;
13        (3) Successfully complete a 4-year course of study in a
14    high school or secondary school approved by the Illinois
15    State Board of Education or an equivalent course of study
16    as determined by an examination conducted by the Illinois
17    State Board of Education which shall be verified under oath
18    by the applicant;
19        (4) (Blank);
20        (5) Provide satisfactory evidence of having completed
21    90 hours of instruction in real estate courses approved by
22    the Department, 15 hours of which must consist of
23    situational and case studies presented in the classroom or
24    by live, interactive webinar or online distance education
25    courses;
26        (6) Personally take and pass a written examination

 

 

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1    authorized by the Department;
2        (7) Present a valid application for issuance of a
3    license accompanied by a sponsor card and the fees
4    specified by rule.
5    (b) The requirements specified in items (3) and (5) of
6subsection (a) of this Section do not apply to applicants who
7are currently admitted to practice law by the Supreme Court of
8Illinois and are currently in active standing.
9    (c) No applicant shall engage in any of the activities
10covered by this Act until a valid sponsorship has been
11recognized by the Department sponsor card has been issued to
12such applicant. The sponsor card shall be valid for a maximum
13period of 45 days after the date of issuance unless extended
14for good cause as provided by rule.
15    (d) All licenses should be readily available to the public
16at their place of business.
17    (e) An individual holding an active license as a managing
18broker may return the license to the Department along with a
19form provided by the Department and shall be issued a broker's
20license in exchange. Any individual obtaining a broker's
21license under this subsection (e) shall be considered as having
22obtained a broker's license by education and passing the
23required test and shall be treated as such in determining
24compliance with this Act.
25(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
 

 

 

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1    (225 ILCS 454/5-28)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 5-28. Requirements for licensure as a managing broker.
4    (a) Every applicant for licensure as a managing broker must
5meet the following qualifications:
6        (1) be at least 21 years of age;
7        (2) be of good moral character;
8        (3) have been licensed at least 2 out of the preceding
9    3 years as a broker;
10        (4) successfully complete a 4-year course of study in
11    high school or secondary school approved by the Illinois
12    State Board of Education or an equivalent course of study
13    as determined by an examination conducted by the Illinois
14    State Board of Education, which shall be verified under
15    oath by the applicant;
16        (5) provide satisfactory evidence of having completed
17    at least 165 hours, 120 of which shall be those hours
18    required pre and post-licensure to obtain a broker's
19    license, and 45 additional hours completed within the year
20    immediately preceding the filing of an application for a
21    managing broker's license, which hours shall focus on
22    brokerage administration and management and leasing agent
23    management and include at least 15 hours in the classroom
24    or by live, interactive webinar or online distance
25    education courses;
26        (6) personally take and pass a written examination

 

 

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1    authorized by the Department; and
2        (7) present a valid application for issuance of a
3    license accompanied by a sponsor card, an appointment as a
4    managing broker, and the fees specified by rule.
5    (b) The requirements specified in item (5) of subsection
6(a) of this Section do not apply to applicants who are
7currently admitted to practice law by the Supreme Court of
8Illinois and are currently in active standing.
9    (c) No applicant shall act as a managing broker for more
10than 90 days after an appointment as a managing broker has been
11filed with the Department without obtaining a managing broker's
12license.
13(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
 
14    (225 ILCS 454/5-40)
15    (Section scheduled to be repealed on January 1, 2020)
16    Sec. 5-40. Sponsorship and Sponsor card; termination
17indicated by license endorsement; association with new broker.
18    (a) The sponsoring broker shall notify prepare upon forms
19provided by the Department of and deliver to each licensee
20employed by or associated with the sponsoring broker within 24
21hours of sponsorship in a manner provided by rule. a sponsor
22card certifying that the person whose name appears thereon is
23in fact employed by or associated with the sponsoring broker.
24The sponsoring broker shall send a duplicate of each sponsor
25card, along with a valid license or other authorization as

 

 

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1provided by rule and the appropriate fee, to the Department
2within 24 hours of issuance of the sponsor card. It is a
3violation of this Act for any broker to issue a sponsor card to
4any licensee or applicant unless the licensee or applicant
5presents in hand a valid license or other authorization as
6provided by rule.
7    (b) When a licensee terminates his or her employment or
8association with a sponsoring broker or the employment is
9terminated by the sponsoring broker, the licensee and
10sponsoring broker shall obtain from the sponsoring broker his
11or her license endorsed by the sponsoring broker indicating the
12termination. The sponsoring broker shall surrender to the
13Department a copy of the license of the licensee within 2 days
14of the termination or shall notify the Department in writing of
15the termination within 24 hours in a manner provided by rule
16and explain why a copy of the license is not surrendered.
17Failure of the sponsoring broker or licensee to notify the
18Department of the termination within 24 hours surrender the
19license shall subject the sponsoring broker or licensee to
20discipline under Section 20-20 of this Act. The license of any
21licensee whose association with a sponsoring broker is
22terminated shall automatically become inoperative immediately
23upon the termination and the licensee shall not be authorized
24to practice until a new valid sponsorship has been recognized
25by the Department unless the licensee accepts employment or
26becomes associated with a new sponsoring broker pursuant to

 

 

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1subsection (c) of this Section.
2    (c) (Blank). When a licensee accepts employment or
3association with a new sponsoring broker, the new sponsoring
4broker shall send to the Department a duplicate sponsor card,
5along with the licensee's endorsed license or an affidavit of
6the licensee of why the endorsed license is not surrendered,
7and shall pay the appropriate fee prescribed by rule to cover
8administrative expenses attendant to the changes in the
9registration of the licensee.
10(Source: P.A. 96-856, eff. 12-31-09.)
 
11    (225 ILCS 454/5-50)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 5-50. Expiration and renewal of managing broker,
14broker, or leasing agent license; sponsoring broker; register
15of licensees; pocket card.
16    (a) The expiration date and renewal period for each license
17issued under this Act shall be set by rule. Except as otherwise
18provided in this Section, the holder of a license may renew the
19license within 90 days preceding the expiration date thereof by
20completing the continuing education required by this Act and
21paying the fees specified by rule.
22    (b) An individual whose first license is that of a broker
23received on or after the effective date of this amendatory Act
24of the 100th General Assembly, must provide evidence of having
25completed 30 hours of post-license education in courses

 

 

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1recommended by the Board and approved by the Department, 15
2hours of which must consist of situational and case studies
3presented in a classroom or a live, interactive webinar, online
4distance education course, or home study course. Credit for
5courses taken through a home study course shall require passage
6of an examination approved by the Department prior to the first
7renewal of their broker's license.
8    (c) Any managing broker, broker, or leasing agent whose
9license under this Act has expired shall be eligible to renew
10the license during the 2-year period following the expiration
11date, provided the managing broker, broker, or leasing agent
12pays the fees as prescribed by rule and completes continuing
13education and other requirements provided for by the Act or by
14rule. Beginning on May 1, 2012, a managing broker licensee,
15broker, or leasing agent whose license has been expired for
16more than 2 years but less than 5 years may have it restored by
17(i) applying to the Department, (ii) paying the required fee,
18(iii) completing the continuing education requirements for the
19most recent pre-renewal period that ended prior to the date of
20the application for reinstatement, and (iv) filing acceptable
21proof of fitness to have his or her license restored, as set by
22rule. A managing broker, broker, or leasing agent whose license
23has been expired for more than 5 years shall be required to
24meet the requirements for a new license.
25    (d) Notwithstanding any other provisions of this Act to the
26contrary, any managing broker, broker, or leasing agent whose

 

 

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1license expired while he or she was (i) on active duty with the
2Armed Forces of the United States or called into service or
3training by the state militia, (ii) engaged in training or
4education under the supervision of the United States
5preliminary to induction into military service, or (iii)
6serving as the Coordinator of Real Estate in the State of
7Illinois or as an employee of the Department may have his or
8her license renewed, reinstated or restored without paying any
9lapsed renewal fees if within 2 years after the termination of
10the service, training or education by furnishing the Department
11with satisfactory evidence of service, training, or education
12and it has been terminated under honorable conditions.
13    (e) The Department shall establish and maintain a register
14of all persons currently licensed by the State and shall issue
15and prescribe a form of pocket card. Upon payment by a licensee
16of the appropriate fee as prescribed by rule for engagement in
17the activity for which the licensee is qualified and holds a
18license for the current period, the Department shall issue a
19pocket card to the licensee. The pocket card shall be
20verification that the required fee for the current period has
21been paid and shall indicate that the person named thereon is
22licensed for the current renewal period as a managing broker,
23broker, or leasing agent as the case may be. The pocket card
24shall further indicate that the person named thereon is
25authorized by the Department to engage in the licensed activity
26appropriate for his or her status (managing broker, broker, or

 

 

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1leasing agent). Each licensee shall carry on his or her person
2his or her pocket card or, if such pocket card has not yet been
3issued, a properly issued sponsor card when engaging in any
4licensed activity and shall display the same on demand.
5    (f) The Department shall provide to the sponsoring broker a
6notice of renewal for all sponsored licensees by mailing the
7notice to the sponsoring broker's address of record, or, at the
8Department's discretion, by an electronic means as provided for
9by rule.
10    (g) Upon request from the sponsoring broker, the Department
11shall make available to the sponsoring broker, either by mail
12or by an electronic means at the discretion of the Department,
13a listing of licensees under this Act who, according to the
14records of the Department, are sponsored by that broker. Every
15licensee associated with or employed by a broker whose license
16is revoked, suspended, terminated, or expired shall be
17considered as inoperative until such time as the sponsoring
18broker's license is reinstated or renewed or a new valid
19sponsorship has been recognized by the Department , or the
20licensee changes employment as set forth in subsection (c) of
21Section 5-40 of this Act.
22(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
 
23    (225 ILCS 454/20-20)
24    (Section scheduled to be repealed on January 1, 2020)
25    Sec. 20-20. Grounds for discipline.

 

 

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1    (a) The Department may refuse to issue or renew a license,
2may place on probation, suspend, or revoke any license,
3reprimand, or take any other disciplinary or non-disciplinary
4action as the Department may deem proper and impose a fine not
5to exceed $25,000 upon any licensee or applicant under this Act
6or any person who holds himself or herself out as an applicant
7or licensee or against a licensee in handling his or her own
8property, whether held by deed, option, or otherwise, for any
9one or any combination of the following causes:
10        (1) Fraud or misrepresentation in applying for, or
11    procuring, a license under this Act or in connection with
12    applying for renewal of a license under this Act.
13        (2) The conviction of or plea of guilty or plea of nolo
14    contendere to a felony or misdemeanor in this State or any
15    other jurisdiction; or the entry of an administrative
16    sanction by a government agency in this State or any other
17    jurisdiction. Action taken under this paragraph (2) for a
18    misdemeanor or an administrative sanction is limited to a
19    misdemeanor or administrative sanction that has as an
20    essential element dishonesty or fraud or involves larceny,
21    embezzlement, or obtaining money, property, or credit by
22    false pretenses or by means of a confidence game.
23        (3) Inability to practice the profession with
24    reasonable judgment, skill, or safety as a result of a
25    physical illness, including, but not limited to,
26    deterioration through the aging process or loss of motor

 

 

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1    skill, or a mental illness or disability.
2        (4) Practice under this Act as a licensee in a retail
3    sales establishment from an office, desk, or space that is
4    not separated from the main retail business by a separate
5    and distinct area within the establishment.
6        (5) Having been disciplined by another state, the
7    District of Columbia, a territory, a foreign nation, or a
8    governmental agency authorized to impose discipline if at
9    least one of the grounds for that discipline is the same as
10    or the equivalent of one of the grounds for which a
11    licensee may be disciplined under this Act. A certified
12    copy of the record of the action by the other state or
13    jurisdiction shall be prima facie evidence thereof.
14        (6) Engaging in the practice of real estate brokerage
15    without a license or after the licensee's license or
16    temporary permit was expired or while the license was
17    inoperative.
18        (7) Cheating on or attempting to subvert the Real
19    Estate License Exam or continuing education exam.
20        (8) Aiding or abetting an applicant to subvert or cheat
21    on the Real Estate License Exam or continuing education
22    exam administered pursuant to this Act.
23        (9) Advertising that is inaccurate, misleading, or
24    contrary to the provisions of the Act.
25        (10) Making any substantial misrepresentation or
26    untruthful advertising.

 

 

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1        (11) Making any false promises of a character likely to
2    influence, persuade, or induce.
3        (12) Pursuing a continued and flagrant course of
4    misrepresentation or the making of false promises through
5    licensees, employees, agents, advertising, or otherwise.
6        (13) Any misleading or untruthful advertising, or
7    using any trade name or insignia of membership in any real
8    estate organization of which the licensee is not a member.
9        (14) Acting for more than one party in a transaction
10    without providing written notice to all parties for whom
11    the licensee acts.
12        (15) Representing or attempting to represent a broker
13    other than the sponsoring broker.
14        (16) Failure to account for or to remit any moneys or
15    documents coming into his or her possession that belong to
16    others.
17        (17) Failure to maintain and deposit in a special
18    account, separate and apart from personal and other
19    business accounts, all escrow moneys belonging to others
20    entrusted to a licensee while acting as a broker, escrow
21    agent, or temporary custodian of the funds of others or
22    failure to maintain all escrow moneys on deposit in the
23    account until the transactions are consummated or
24    terminated, except to the extent that the moneys, or any
25    part thereof, shall be:
26            (A) disbursed prior to the consummation or

 

 

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1        termination (i) in accordance with the written
2        direction of the principals to the transaction or their
3        duly authorized agents, (ii) in accordance with
4        directions providing for the release, payment, or
5        distribution of escrow moneys contained in any written
6        contract signed by the principals to the transaction or
7        their duly authorized agents, or (iii) pursuant to an
8        order of a court of competent jurisdiction; or
9            (B) deemed abandoned and transferred to the Office
10        of the State Treasurer to be handled as unclaimed
11        property pursuant to the Revised Uniform Unclaimed
12        Property Act. Escrow moneys may be deemed abandoned
13        under this subparagraph (B) only: (i) in the absence of
14        disbursement under subparagraph (A); (ii) in the
15        absence of notice of the filing of any claim in a court
16        of competent jurisdiction; and (iii) if 6 months have
17        elapsed after the receipt of a written demand for the
18        escrow moneys from one of the principals to the
19        transaction or the principal's duly authorized agent.
20    The account shall be noninterest bearing, unless the
21    character of the deposit is such that payment of interest
22    thereon is otherwise required by law or unless the
23    principals to the transaction specifically require, in
24    writing, that the deposit be placed in an interest bearing
25    account.
26        (18) Failure to make available to the Department all

 

 

HB5209- 30 -LRB100 17392 XWW 32558 b

1    escrow records and related documents maintained in
2    connection with the practice of real estate within 24 hours
3    of a request for those documents by Department personnel.
4        (19) Failing to furnish copies upon request of
5    documents relating to a real estate transaction to a party
6    who has executed that document.
7        (20) Failure of a sponsoring broker or licensee to
8    timely provide sponsorship or termination of sponsorship
9    information, sponsor cards, or termination of licenses to
10    the Department.
11        (21) Engaging in dishonorable, unethical, or
12    unprofessional conduct of a character likely to deceive,
13    defraud, or harm the public.
14        (22) Commingling the money or property of others with
15    his or her own money or property.
16        (23) Employing any person on a purely temporary or
17    single deal basis as a means of evading the law regarding
18    payment of commission to nonlicensees on some contemplated
19    transactions.
20        (24) Permitting the use of his or her license as a
21    broker to enable a leasing agent or unlicensed person to
22    operate a real estate business without actual
23    participation therein and control thereof by the broker.
24        (25) Any other conduct, whether of the same or a
25    different character from that specified in this Section,
26    that constitutes dishonest dealing.

 

 

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1        (26) Displaying a "for rent" or "for sale" sign on any
2    property without the written consent of an owner or his or
3    her duly authorized agent or advertising by any means that
4    any property is for sale or for rent without the written
5    consent of the owner or his or her authorized agent.
6        (27) Failing to provide information requested by the
7    Department, or otherwise respond to that request, within 30
8    days of the request.
9        (28) Advertising by means of a blind advertisement,
10    except as otherwise permitted in Section 10-30 of this Act.
11        (29) Offering guaranteed sales plans, as defined in
12    clause (A) of this subdivision (29), except to the extent
13    hereinafter set forth:
14            (A) A "guaranteed sales plan" is any real estate
15        purchase or sales plan whereby a licensee enters into a
16        conditional or unconditional written contract with a
17        seller, prior to entering into a brokerage agreement
18        with the seller, by the terms of which a licensee
19        agrees to purchase a property of the seller within a
20        specified period of time at a specific price in the
21        event the property is not sold in accordance with the
22        terms of a brokerage agreement to be entered into
23        between the sponsoring broker and the seller.
24            (B) A licensee offering a guaranteed sales plan
25        shall provide the details and conditions of the plan in
26        writing to the party to whom the plan is offered.

 

 

HB5209- 32 -LRB100 17392 XWW 32558 b

1            (C) A licensee offering a guaranteed sales plan
2        shall provide to the party to whom the plan is offered
3        evidence of sufficient financial resources to satisfy
4        the commitment to purchase undertaken by the broker in
5        the plan.
6            (D) Any licensee offering a guaranteed sales plan
7        shall undertake to market the property of the seller
8        subject to the plan in the same manner in which the
9        broker would market any other property, unless the
10        agreement with the seller provides otherwise.
11            (E) The licensee cannot purchase seller's property
12        until the brokerage agreement has ended according to
13        its terms or is otherwise terminated.
14            (F) Any licensee who fails to perform on a
15        guaranteed sales plan in strict accordance with its
16        terms shall be subject to all the penalties provided in
17        this Act for violations thereof and, in addition, shall
18        be subject to a civil fine payable to the party injured
19        by the default in an amount of up to $25,000.
20        (30) Influencing or attempting to influence, by any
21    words or acts, a prospective seller, purchaser, occupant,
22    landlord, or tenant of real estate, in connection with
23    viewing, buying, or leasing real estate, so as to promote
24    or tend to promote the continuance or maintenance of
25    racially and religiously segregated housing or so as to
26    retard, obstruct, or discourage racially integrated

 

 

HB5209- 33 -LRB100 17392 XWW 32558 b

1    housing on or in any street, block, neighborhood, or
2    community.
3        (31) Engaging in any act that constitutes a violation
4    of any provision of Article 3 of the Illinois Human Rights
5    Act, whether or not a complaint has been filed with or
6    adjudicated by the Human Rights Commission.
7        (32) Inducing any party to a contract of sale or lease
8    or brokerage agreement to break the contract of sale or
9    lease or brokerage agreement for the purpose of
10    substituting, in lieu thereof, a new contract for sale or
11    lease or brokerage agreement with a third party.
12        (33) Negotiating a sale, exchange, or lease of real
13    estate directly with any person if the licensee knows that
14    the person has an exclusive brokerage agreement with
15    another broker, unless specifically authorized by that
16    broker.
17        (34) When a licensee is also an attorney, acting as the
18    attorney for either the buyer or the seller in the same
19    transaction in which the licensee is acting or has acted as
20    a managing broker or broker.
21        (35) Advertising or offering merchandise or services
22    as free if any conditions or obligations necessary for
23    receiving the merchandise or services are not disclosed in
24    the same advertisement or offer. These conditions or
25    obligations include without limitation the requirement
26    that the recipient attend a promotional activity or visit a

 

 

HB5209- 34 -LRB100 17392 XWW 32558 b

1    real estate site. As used in this subdivision (35), "free"
2    includes terms such as "award", "prize", "no charge", "free
3    of charge", "without charge", and similar words or phrases
4    that reasonably lead a person to believe that he or she may
5    receive or has been selected to receive something of value,
6    without any conditions or obligations on the part of the
7    recipient.
8        (36) (Blank).
9        (37) Violating the terms of a disciplinary order issued
10    by the Department.
11        (38) Paying or failing to disclose compensation in
12    violation of Article 10 of this Act.
13        (39) Requiring a party to a transaction who is not a
14    client of the licensee to allow the licensee to retain a
15    portion of the escrow moneys for payment of the licensee's
16    commission or expenses as a condition for release of the
17    escrow moneys to that party.
18        (40) Disregarding or violating any provision of this
19    Act or the published rules promulgated by the Department to
20    enforce this Act or aiding or abetting any individual,
21    partnership, registered limited liability partnership,
22    limited liability company, or corporation in disregarding
23    any provision of this Act or the published rules
24    promulgated by the Department to enforce this Act.
25        (41) Failing to provide the minimum services required
26    by Section 15-75 of this Act when acting under an exclusive

 

 

HB5209- 35 -LRB100 17392 XWW 32558 b

1    brokerage agreement.
2        (42) Habitual or excessive use or addiction to alcohol,
3    narcotics, stimulants, or any other chemical agent or drug
4    that results in a managing broker, broker, or leasing
5    agent's inability to practice with reasonable skill or
6    safety.
7        (43) Enabling, aiding, or abetting an auctioneer, as
8    defined in the Auction License Act, to conduct a real
9    estate auction in a manner that is in violation of this
10    Act.
11        (44) Permitting any leasing agent or temporary leasing
12    agent permit holder to engage in activities that require a
13    broker's or managing broker's license.
14    (b) The Department may refuse to issue or renew or may
15suspend the license of any person who fails to file a return,
16pay the tax, penalty or interest shown in a filed return, or
17pay any final assessment of tax, penalty, or interest, as
18required by any tax Act administered by the Department of
19Revenue, until such time as the requirements of that tax Act
20are satisfied in accordance with subsection (g) of Section
212105-15 of the Civil Administrative Code of Illinois.
22    (c) The Department shall deny a license or renewal
23authorized by this Act to a person who has defaulted on an
24educational loan or scholarship provided or guaranteed by the
25Illinois Student Assistance Commission or any governmental
26agency of this State in accordance with item (5) of subsection

 

 

HB5209- 36 -LRB100 17392 XWW 32558 b

1(a) of Section 2105-15 of the Civil Administrative Code of
2Illinois.
3    (d) In cases where the Department of Healthcare and Family
4Services (formerly Department of Public Aid) has previously
5determined that a licensee or a potential licensee is more than
630 days delinquent in the payment of child support and has
7subsequently certified the delinquency to the Department may
8refuse to issue or renew or may revoke or suspend that person's
9license or may take other disciplinary action against that
10person based solely upon the certification of delinquency made
11by the Department of Healthcare and Family Services in
12accordance with item (5) of subsection (a) of Section 2105-15
13of the Civil Administrative Code of Illinois.
14    (e) In enforcing this Section, the Department or Board upon
15a showing of a possible violation may compel an individual
16licensed to practice under this Act, or who has applied for
17licensure under this Act, to submit to a mental or physical
18examination, or both, as required by and at the expense of the
19Department. The Department or Board may order the examining
20physician to present testimony concerning the mental or
21physical examination of the licensee or applicant. No
22information shall be excluded by reason of any common law or
23statutory privilege relating to communications between the
24licensee or applicant and the examining physician. The
25examining physicians shall be specifically designated by the
26Board or Department. The individual to be examined may have, at

 

 

HB5209- 37 -LRB100 17392 XWW 32558 b

1his or her own expense, another physician of his or her choice
2present during all aspects of this examination. Failure of an
3individual to submit to a mental or physical examination, when
4directed, shall be grounds for suspension of his or her license
5until the individual submits to the examination if the
6Department finds, after notice and hearing, that the refusal to
7submit to the examination was without reasonable cause.
8    If the Department or Board finds an individual unable to
9practice because of the reasons set forth in this Section, the
10Department or Board may require that individual to submit to
11care, counseling, or treatment by physicians approved or
12designated by the Department or Board, as a condition, term, or
13restriction for continued, reinstated, or renewed licensure to
14practice; or, in lieu of care, counseling, or treatment, the
15Department may file, or the Board may recommend to the
16Department to file, a complaint to immediately suspend, revoke,
17or otherwise discipline the license of the individual. An
18individual whose license was granted, continued, reinstated,
19renewed, disciplined or supervised subject to such terms,
20conditions, or restrictions, and who fails to comply with such
21terms, conditions, or restrictions, shall be referred to the
22Secretary for a determination as to whether the individual
23shall have his or her license suspended immediately, pending a
24hearing by the Department.
25    In instances in which the Secretary immediately suspends a
26person's license under this Section, a hearing on that person's

 

 

HB5209- 38 -LRB100 17392 XWW 32558 b

1license must be convened by the Department within 30 days after
2the suspension and completed without appreciable delay. The
3Department and Board shall have the authority to review the
4subject individual's record of treatment and counseling
5regarding the impairment to the extent permitted by applicable
6federal statutes and regulations safeguarding the
7confidentiality of medical records.
8    An individual licensed under this Act and affected under
9this Section shall be afforded an opportunity to demonstrate to
10the Department or Board that he or she can resume practice in
11compliance with acceptable and prevailing standards under the
12provisions of his or her license.
13(Source: P.A. 99-227, eff. 8-3-15; 100-22, eff. 1-1-18;
14100-188, eff. 1-1-18; 100-534, eff. 9-22-17; revised 10-2-17.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.