AUTHORITY: Implementing the Real Estate License Act of 2000 [225 ILCS 454] and authorized by Section 2105-15(7) of the Civil Administrative Code of Illinois (Department of Professional Regulation Law) [20 ILCS 2105].
SOURCE: Rules and Regulations for the Administration of the Real Estate Brokers and Salesmen License Act (General Rules), effective December 4, 1974; Rules and Regulations for the Administration of the Real Estate Brokers and Salesmen License Act (School Rules), effective July 29, 1974; amended at 3 Ill. Reg. 885, effective February 2, 1979; amended at 4 Ill. Reg. 195, effective August 12, 1980; amended at 5 Ill. Reg. 5343, effective May 6, 1981; amended at 5 Ill. Reg. 8541, effective August 10, 1981; codified at 5 Ill. Reg. 11064; emergency amendment at 6 Ill. Reg. 916, effective January 6, 1982, for a maximum of 150 days; emergency amendment at 6 Ill. Reg. 2406, effective February 3, 1982, for a maximum of 150 days; amended at 6 Ill. Reg. 8221, effective July 1, 1982; amended at 9 Ill. Reg. 341, effective January 3, 1985; transferred from Chapter I, 68 Ill. Adm. Code 450 (Department of Registration and Education) to Chapter VII, 68 Ill. Adm. Code 1450 (Department of Professional Regulation) pursuant to PA 85-225, effective January 1, 1988, at 12 Ill. Reg. 2977; amended at 12 Ill. Reg. 8036, effective April 26, 1988; amended at 15 Ill. Reg. 10416, effective July 1, 1991; amended at 16 Ill. Reg. 3204, effective February 14, 1992; emergency amendment at 19 Ill. Reg. 12003, effective August 8, 1995, for a maximum of 150 days; amended at 19 Ill. Reg. 16623, effective December 1, 1995; amended at 20 Ill. Reg. 6492, effective April 30, 1996; recodified from Chapter VII, Department of Professional Regulation, to Chapter VIII, Office of Banks and Real Estate, pursuant to PA 89-23 and PA 89-508 at 20 Ill. Reg. 11984; amended at 21 Ill. Reg. 3602, effective March 7, 1997; amended at 21 Ill. Reg. 8350, effective June 30, 1997; old Part repealed and new Part adopted by emergency rulemaking at 24 Ill. Reg. 704, effective January 1, 2000, for a maximum of 150 days; old Part repealed and new Part adopted at 24 Ill. Reg. 8263, effective May 30, 2000; amended at 27 Ill. Reg. 12018, effective July 9, 2003; amended at 28 Ill. Reg. 2141, effective January 22, 2004; amended at 30 Ill. Reg. 11075, effective June 8, 2006; amended at 32 Ill. Reg. 6503, effective April 2, 2008; former Part repealed at 35 Ill. Reg. 5414 and new Part adopted at 35 Ill. Reg. 5418, effective March 21, 2011; amended at 40 Ill. Reg. 12588, effective September 2, 2016; amended at 41 Ill. Reg. 12561, effective October 6, 2017; amended at 42 Ill. Reg. 4582, effective March 9, 2018; Subpart K recodified at 42 Ill. Reg. 16946; amended at 43 Ill. Reg. 1975, effective January 25, 2019; amended at 45 Ill. Reg. 2851, effective February 23, 2021; amended at 48 Ill. Reg. 851, effective January 1, 2024.
SUBPART A: GENERAL
Section 1450.100 Definitions
Unless otherwise clarified by this Part, definitions set forth in the Act also apply for purposes of this Part.
"Act" means the Real Estate License Act of 2000 [225 ILCS 454].
"Affidavit of Non-participation" means a sworn statement made by an unlicensed person associated with, or an unlicensed owner or member of, a licensed real estate corporation, limited liability company, partnership, limited partnership or limited liability partnership attesting that the unlicensed person is not actively directing or engaging in licensed activities as part of that association or ownership.
"Board" means the Real Estate Administration and Disciplinary Board as set forth in Section 25-10 of the Act.
"CE" is an abbreviation for continuing education.
"Compliance Agreement" means an agreement entered into between a licensee and the Division in conjunction with an administrative warning letter.
"Credit Hour" means a minimum of 50 minutes of instruction through a course approved by the Division in a classroom, by interactive webinar, online distance education, correspondence or a home study course.
"Department" means the Department of Financial and Professional Regulation.
"Designated Managing Broker" means a managing broker who:
the sponsoring broker designated to manage its real estate brokerage, pursuant to Section 1450.700; and
has the responsibilities, and supervises the activities, described in Section 1450.705.
"Director" means the Director of the Division of Real Estate with the authority delegated by the Secretary.
"Discipline" means a:
refusal to issue or renew a license;
reprimand;
probation;
suspension or revocation of a license;
fine; or
any other action the Department may deem proper.
"Division" means the Department of Financial and Professional Regulation‑Division of Real Estate with the authority delegated by the Secretary.
"Education Provider" means a school licensed by the Department offering courses in pre-license, post-license, or continuing education. [225 ILCS 454/1-10]
"Electronic Signature" means a signature in electronic form attached to or logically associated with an electronic record. [5 ILCS 175/5-105] For purposes of the Act and this Part, any application, affidavit or other document required to be signed may be signed by means of an electronic signature.
"Home Study" or "Correspondence Course" means an education course that is administered independently by the student in a self-study format, outside of a classroom, or physical or virtual meeting space, which may, but is not required to, include communication with an Illinois licensed instructor, but for which there is no requirement for the ongoing verification of the student's participation and comprehension, except for the administration of the proctored final examination required in connection with a non-interactive course. Home study or correspondence programs may include, but are not limited to, courses comprised of print, and media (i.e., audio tape recording, written materials, video tape recording, CD or DVD, or noninteractive online medium).
"Interactive Delivery Method" means delivery of a course, approved by the Department through a medium allowing for interaction with the student.
"Interactive Webinar" means delivery of a course by a licensed instructor through a medium allowing for live 2‑way communication between the licensed instructor and student in which either can initiate or respond to questions, including live instruction and real-time discussion via satellite, video or webcam that allows for student participation and comprehension.
"Learning Management System" means a software application used for the administration, documentation, tracking, reporting, and delivery of educational courses or training programs.
"Office" means a sponsoring broker's place of business where the general public is invited to transact business, or from which sponsored licensees work, where records may be maintained, and where licenses may be readily available, as set forth in Section 1450.730, whether or not it is the sponsoring broker's principal place of business. All offices must meet the requirements set forth in Section 1450.610.
"Online Distance Education" means education courses that are interactive, but not in real time, in which students independently learn and review material online, and, for verification of the student's participation and comprehension, interact with an Illinois licensed instructor or Learning Management System.
"Post-License Education" means the 45-hour post-license education required of new broker licensees pursuant to Section 5-50(b) of the Act, which is comprised of three 15-hour courses, each requiring passage of its own 50 question final examination.
"Principal Office" means the office location, whether physical or virtual, that serves as the principal place of business of a sponsoring broker.
"Proctor" means any person, including a licensed instructor, who has a written agreement with a licensed education provider to administer, in person or electronically, examinations fairly and impartially with a licensed education provider.
"Renewal Period" means, for an initial broker license, the period 180 days prior to the expiration date of that license. For all other licenses, "renewal period" means the period 90 days prior to the expiration date of the license.
"Secretary" means the Secretary of the Department of Financial and Professional Regulation.
"Self-sponsor" means a licensed managing broker who operates a real estate brokerage as a sole proprietorship.
"Sole Owner" means a person who has a 100% beneficial ownership interest in real estate, except as defined in Section 10-30(c)(2) of the Act.
"SOS" means the Illinois Secretary of State.
"Sponsoring Broker" means a person who operates a corporation, limited liability company, partnership, limited partnership, or limited liability partnership that is licensed by the Department, or an individual with a managing broker license who operates as a sole proprietor.
"Sponsoring Broker's Name" means the sponsoring broker's name as licensed by the Department or the assumed name registered by the sponsoring broker with the Division, which in the case of a franchise shall include the franchise affiliation and the name of the individual firm.
"Sponsorship" means that a sponsoring broker has certified to the Division that a broker, managing broker, or residential leasing agent is employed by, or associated with by written employment or independent contractor agreement, and the Division has registered the sponsorship (see Section 5-40 of the Act).
"Transaction", for purposes of this Part, exists once an agreement has been reached and an accepted real estate contract is signed, or a lease is agreed to, by the parties.
"Virtual Office" means an office from which real estate brokerage services are provided without a dedicated office space or fixed physical location under the supervision of the designated managing broker. Sponsored licensees provide services within the meaning of the term "Broker" as defined in Section 1-10 of the Act. All virtual offices must meet the requirements set forth in Section 1450.610.
(Source: Amended at 45 Ill. Reg. 2851, effective February 23, 2021)
Section 1450.110 Sponsorship
a) Residential Leasing Agent
1) Except for an individual working under a residential leasing agent permit (see Section 1450.240), no residential leasing agent license applicant may engage in leasing residential real estate (see Section 1450.200) until a valid sponsorship of the applicant has been registered with the Division by the sponsoring broker.
2) A sponsoring broker shall certify to the Division that the applicant whose name appears on the registration is employed by or associated with that sponsoring broker.
3) Within 24 hours after establishing the sponsorship, the sponsoring broker shall notify the Division, in a format provided by the Division, that the residential leasing agent is employed by, or associated with, the sponsoring broker.
4) A sponsoring broker may sponsor a residential leasing agent or applicant only upon the sponsoring broker's receipt of any of the following:
A) A residential leasing agent examination pass score report stating that the applicant passed the exam;
B) Termination of sponsorship by the sponsoring broker who previously employed or was associated with the residential leasing agent;
C) A current inactive residential leasing agent license; or
D) A residential leasing agent license expired for less than 2 years.
5) The applicant or licensee shall, within 24 hours after establishing sponsorship, submit to the Division, in a format provided by the Division, the following:
A) Residential Leasing Agent Applicants
i) A copy of the applicant's transcript evidencing compliance with the education requirements, if applicable;
ii) A residential leasing agent examination pass score report stating that the applicant passed the exam;
iii) A signed and completed residential leasing agent license application; and
iv) The required residential leasing agent license application fee set forth in Section 1450.130.
B) Residential Leasing Agent Licensee
i) Confirmation of sponsorship in a format provided by the Division; and
ii) The required sponsorship fee set forth in Section 1450.130.
6) A sponsoring broker shall maintain a register of all sponsored residential leasing agents and shall make the list readily available to the public (see Section 1450.730).
b) Broker and Managing Broker
1) Within 24 hours after establishing the sponsorship, the sponsoring broker shall notify the Division, in a format provided by the Division, that the broker or managing broker is employed by, or associated with, the sponsoring broker.
2) A sponsoring broker may sponsor a broker, managing broker, or applicant only upon the sponsoring broker's receipt of any of the following:
A) For applicants, a broker or managing broker real estate examination pass score report stating that the applicant passed the exam;
B) Termination of sponsorship by the sponsoring broker who previously employed or was associated with the broker or managing broker licensee;
C) A current inactive broker or managing broker license; or
D) A broker or managing broker license expired for less than 2 years.
3) The applicant or licensee shall, within 24 hours after establishing sponsorship, submit to the Division, in a format provided by the Division, the following:
A) Broker and Managing Broker Applicants
i) A copy of the transcript evidencing compliance with the education requirement, if applicable;
ii) A real estate examination pass score report stating that the applicant passed the exam;
iii) A signed and completed broker or managing broker application and other documentation set forth in Sections 1450.430 and 1450.520; and
iv) The required broker or managing broker license application fee as set forth in Section 1450.130.
B) Broker and Managing Broker Licensees
i) Confirmation of sponsorship in a format provided by the Division; and
ii) The required sponsorship fee set forth in Section 1450.130.
4) A managing broker may practice as a sole proprietor. A person or persons may form and practice as a corporation, limited liability company, partnership, limited partnership or limited liability partnership provided that, prior to engaging in licensed activities, the entity complies with the licensing requirements set forth in Section 1450.600 and submits to the Division, in a format provided by the Division, the following:
A) Confirmation of the person serving as the designated managing broker;
B) The required fee set forth in Section 1450.130;
C) A completed consent to examine and audit special accounts form; and
D) A signed and completed license application.
c) If an applicant or licensee fails to complete the requirements of this Section:
1) The sponsorship shall be void;
2) The applicant or licensee shall be considered to have never been authorized to practice; and
3) The applicant or licensee may be subject to discipline.
d) Within 30 days after registration of sponsorship, and receipt of the required fees and appropriate documentation, the Division shall issue a license to the applicant or licensee or may notify the applicant or licensee, designated managing broker, and sponsoring broker of the basis for denial.
e) Licensees shall carry a properly issued license or an electronic version of the license and shall display the license or provide evidence of licensure upon request when engaging in any licensed activities.
f) Whenever any provision of Section 5-40 of the Act or any provision of this Part requires that any license be surrendered, sent, obtained, delivered or issued by or to a licensee (including a sponsoring broker) or the Department, the manner of doing so may include electronic transmission, including the use of any electronic portal maintained by the Department.
(Source: Amended at 45 Ill. Reg. 2851, effective February 23, 2021)