HB5359 EnrolledLRB097 19406 CEL 64659 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 5-70, 10-30, 20-20, 20-85, 20-90, 20-95,
6and 20-115 and by adding Section 20-78 as follows:
 
7    (225 ILCS 454/5-70)
8    (Section scheduled to be repealed on January 1, 2020)
9    Sec. 5-70. Continuing education requirement; managing
10broker, broker, or salesperson.
11    (a) The requirements of this Section apply to all managing
12brokers, brokers, and salespersons.
13    (b) Except as otherwise provided in this Section, each
14person who applies for renewal of his or her license as a
15managing broker, real estate broker, or real estate salesperson
16must successfully complete 6 hours of real estate continuing
17education courses approved by the Advisory Council for each
18year of the pre-renewal period. Broker licensees must
19successfully complete a 6-hour broker management continuing
20education course approved by the Department for the pre-renewal
21period ending April 30, 2010. In addition, beginning with the
22pre-renewal period for managing broker licensees that begins
23after the effective date of this Act, those licensees renewing

 

 

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1or obtaining a managing broker's license must successfully
2complete a 12-hour broker management continuing education
3course approved by the Department each pre-renewal period. The
4broker management continuing education course must be
5completed in the classroom or by other interactive delivery
6method presenting instruction and real time discussion between
7the instructor and the students. Successful completion of the
8course shall include achieving a passing score as provided by
9rule on a test developed and administered in accordance with
10rules adopted by the Department. No license may be renewed
11except upon the successful completion of the required courses
12or their equivalent or upon a waiver of those requirements for
13good cause shown as determined by the Secretary with the
14recommendation of the Advisory Council. The requirements of
15this Article are applicable to all managing brokers, brokers,
16and salespersons except those brokers and salespersons who,
17during the pre-renewal period:
18        (1) serve in the armed services of the United States;
19        (2) serve as an elected State or federal official;
20        (3) serve as a full-time employee of the Department; or
21        (4) are admitted to practice law pursuant to Illinois
22    Supreme Court rule.
23    (c) A person licensed as a salesperson as of April 30, 2011
24shall not be required to complete the 18 hours of continuing
25education for the pre-renewal period ending April 30, 2012 if
26that person takes the 30-hour post-licensing course to obtain a

 

 

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1broker's license. A person licensed as a broker as of April 30,
22011 shall not be required to complete the 12 hours of broker
3management continuing education for the pre-renewal period
4ending April 30, 2012, unless that person passes the
5proficiency exam provided for in Section 5-47 of this Act to
6qualify for a managing broker's license.
7    (d) A person receiving an initial license during the 90
8days before the renewal date shall not be required to complete
9the continuing education courses provided for in subsection (b)
10of this Section as a condition of initial license renewal.
11    (e) The continuing education requirement for salespersons,
12brokers and managing brokers shall consist of a core curriculum
13and an elective curriculum, to be established by the Advisory
14Council. In meeting the continuing education requirements of
15this Act, at least 3 hours per year or their equivalent, 6
16hours for each two-year pre-renewal period, shall be required
17to be completed in the core curriculum. In establishing the
18core curriculum, the Advisory Council shall consider subjects
19that will educate licensees on recent changes in applicable
20laws and new laws and refresh the licensee on areas of the
21license law and the Department policy that the Advisory Council
22deems appropriate, and any other areas that the Advisory
23Council deems timely and applicable in order to prevent
24violations of this Act and to protect the public. In
25establishing the elective curriculum, the Advisory Council
26shall consider subjects that cover the various aspects of the

 

 

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1practice of real estate that are covered under the scope of
2this Act. However, the elective curriculum shall not include
3any offerings referred to in Section 5-85 of this Act.
4    (f) The subject areas of continuing education courses
5approved by the Advisory Council may include without limitation
6the following:
7        (1) license law and escrow;
8        (2) antitrust;
9        (3) fair housing;
10        (4) agency;
11        (5) appraisal;
12        (6) property management;
13        (7) residential brokerage;
14        (8) farm property management;
15        (9) rights and duties of sellers, buyers, and brokers;
16        (10) commercial brokerage and leasing; and
17        (11) real estate financing.
18    (g) In lieu of credit for those courses listed in
19subsection (f) of this Section, credit may be earned for
20serving as a licensed instructor in an approved course of
21continuing education. The amount of credit earned for teaching
22a course shall be the amount of continuing education credit for
23which the course is approved for licensees taking the course.
24    (h) Credit hours may be earned for self-study programs
25approved by the Advisory Council.
26    (i) A broker or salesperson may earn credit for a specific

 

 

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1continuing education course only once during the prerenewal
2period.
3    (j) No more than 6 hours of continuing education credit may
4be taken or earned in one calendar day.
5    (k) To promote the offering of a uniform and consistent
6course content, the Department may provide for the development
7of a single broker management course to be offered by all
8continuing education providers who choose to offer the broker
9management continuing education course. The Department may
10contract for the development of the 12-hour 6-hour broker
11management continuing education course with an outside vendor
12or consultant and, if the course is developed in this manner,
13the Department or the outside consultant shall license the use
14of that course to all approved continuing education providers
15who wish to provide the course.
16    (l) Except as specifically provided in this Act, continuing
17education credit hours may not be earned for completion of pre
18or post-license courses. The approved 30-hour post-license
19course for broker licensees shall satisfy the continuing
20education requirement for the pre-renewal period in which the
21course is taken. The approved 45-hour brokerage administration
22and management course shall satisfy the 12-hour broker
23management continuing education requirement for the
24pre-renewal period in which the course is taken.
25(Source: P.A. 96-856, eff. 12-31-09.)
 

 

 

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1    (225 ILCS 454/10-30)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 10-30. Advertising.
4    (a) No advertising, whether in print, via the Internet, or
5through any other media, shall be fraudulent, deceptive,
6inherently misleading, or proven to be misleading in practice.
7Advertising shall be considered misleading or untruthful if,
8when taken as a whole, there is a distinct and reasonable
9possibility that it will be misunderstood or will deceive the
10ordinary purchaser, seller, lessee, lessor, or owner.
11Advertising shall contain all information necessary to
12communicate the information contained therein to the public in
13an accurate, direct, and readily comprehensible manner.
14    (b) No blind advertisements may be used by any licensee, in
15any media, except as provided for in this Section.
16    (c) A licensee shall disclose, in writing, to all parties
17in a transaction his or her status as a licensee and any and
18all interest the licensee has or may have in the real estate
19constituting the subject matter thereof, directly or
20indirectly, according to the following guidelines:
21        (1) On broker yard signs or in broker advertisements,
22    no disclosure of ownership is necessary. However, the
23    ownership shall be indicated on any property data form and
24    disclosed to persons responding to any advertisement or any
25    sign. The term "broker owned" or "agent owned" is
26    sufficient disclosure.

 

 

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1        (2) A sponsored or inoperative licensee selling or
2    leasing property, owned solely by the sponsored or
3    inoperative licensee, without utilizing brokerage services
4    of their sponsoring broker or any other licensee, may
5    advertise "By Owner". For purposes of this Section,
6    property is "solely owned" by a sponsored or inoperative
7    licensee if he or she (i) has a 100% ownership interest
8    alone, (ii) has ownership as a joint tenant or tenant by
9    the entirety, or (iii) holds a 100% beneficial interest in
10    a land trust. Sponsored or inoperative licensees selling or
11    leasing "By Owner" shall comply with the following if
12    advertising by owner:
13            (A) On "By Owner" yard signs, the sponsored or
14        inoperative licensee shall indicate "broker owned" or
15        "agent owned." "By Owner" advertisements used in any
16        medium of advertising shall include the term "broker
17        owned" or "agent owned."
18            (B) If a sponsored or inoperative licensee runs
19        advertisements, for the purpose of purchasing or
20        leasing real estate, he or she shall disclose in the
21        advertisements his or her status as a licensee.
22            (C) A sponsored or inoperative licensee shall not
23        use the sponsoring broker's name or the sponsoring
24        broker's company name in connection with the sale,
25        lease, or advertisement of the property nor utilize the
26        sponsoring broker's or company's name in connection

 

 

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1        with the sale, lease, or advertising of the property in
2        a manner likely to create confusion among the public as
3        to whether or not the services of a real estate company
4        are being utilized or whether or not a real estate
5        company has an ownership interest in the property.
6    (d) A sponsored licensee may not advertise under his or her
7own name. Advertising in any media shall be under the direct
8supervision of the sponsoring or managing broker and in the
9sponsoring broker's business name, which in the case of a
10franchise shall include the franchise affiliation as well as
11the name of the individual firm. This provision does not apply
12under the following circumstances:
13        (1) When a licensee enters into a brokerage agreement
14    relating to his or her own real estate, or real estate in
15    which he or she has an ownership interest, with another
16    licensed broker; or
17        (2) When a licensee is selling or leasing his or her
18    own real estate or buying or leasing real estate for
19    himself or herself, after providing the appropriate
20    written disclosure of his or her ownership interest as
21    required in paragraph (2) of subsection (c) of this
22    Section.
23    (e) No licensee shall list his or her name under the
24heading or title "Real Estate" in the telephone directory or
25otherwise advertise in his or her own name to the general
26public through any medium of advertising as being in the real

 

 

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1estate business without listing his or her sponsoring broker's
2business name.
3    (f) The sponsoring broker's business name and the name of
4the licensee must appear in all advertisements, including
5business cards. Nothing in this Act shall be construed to
6require specific print size as between the broker's business
7name and the name of the licensee.
8    (g) Those individuals licensed as a managing broker and
9designated with the Department as a managing broker by their
10sponsoring broker shall identify themselves to the public in
11advertising, except on "For Sale" or similar signs, as a
12managing broker. No other individuals holding a managing
13broker's license may hold themselves out to the public or other
14licensees as a managing broker.
15(Source: P.A. 96-856, eff. 12-31-09.)
 
16    (225 ILCS 454/20-20)
17    (Section scheduled to be repealed on January 1, 2020)
18    Sec. 20-20. Grounds for discipline.
19    (a) The Department may refuse to issue or renew a license,
20may place on probation, suspend, or revoke any license,
21reprimand, or take any other disciplinary or non-disciplinary
22action as the Department may deem proper and or impose a fine
23not to exceed $25,000 upon any licensee or applicant under this
24Act or any person who holds himself or herself out as an
25applicant or licensee or against a licensee in handling his or

 

 

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1her own property, whether held by deed, option, or otherwise,
2for any one or any combination of the following causes:
3        (1) Fraud or misrepresentation in applying for, or
4    procuring, a license under this Act or in connection with
5    applying for renewal of a license under this Act.
6        (2) The conviction of or plea of guilty or plea of nolo
7    contendere to conviction of, plea of guilty or plea of nolo
8    contendre to a felony or misdemeanor in this State or any
9    other jurisdiction; or the entry of an administrative
10    sanction by a government agency in this State or any other
11    jurisdiction. Action taken under this paragraph (2) for a
12    misdemeanor or an administrative sanction is limited to a
13    misdemeanor or administrative sanction that has as , an
14    essential element of which is dishonesty or fraud or
15    involves larceny, embezzlement, or obtaining money,
16    property, or credit by false pretenses or by means of a
17    confidence game, in this State, or any other jurisdiction.
18        (3) Inability to practice the profession with
19    reasonable judgment, skill, or safety as a result of a
20    physical illness, including, but not limited to,
21    deterioration through the aging process or loss of motor
22    skill, or a mental illness or disability.
23        (4) Practice under this Act as a licensee in a retail
24    sales establishment from an office, desk, or space that is
25    not separated from the main retail business by a separate
26    and distinct area within the establishment.

 

 

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1        (5) Having been disciplined by another state, the
2    District of Columbia, a territory, a foreign nation, or a
3    governmental agency authorized to impose discipline
4    Disciplinary action of another state or jurisdiction
5    against the license or other authorization to practice as a
6    managing broker, broker, salesperson, or leasing agent if
7    at least one of the grounds for that discipline is the same
8    as or the equivalent of one of the grounds for which a
9    licensee may be disciplined under discipline set forth in
10    this Act. A certified copy of the record of the action by
11    the other state or jurisdiction shall be prima facie
12    evidence thereof.
13        (6) Engaging in the practice of real estate brokerage
14    without a license or after the licensee's license was
15    expired or while the license was inoperative.
16        (7) Cheating on or attempting to subvert the Real
17    Estate License Exam or continuing education exam.
18        (8) Aiding or abetting an applicant to subvert or cheat
19    on the Real Estate License Exam or continuing education
20    exam administered pursuant to this Act.
21        (9) Advertising that is inaccurate, misleading, or
22    contrary to the provisions of the Act.
23        (10) Making any substantial misrepresentation or
24    untruthful advertising.
25        (11) Making any false promises of a character likely to
26    influence, persuade, or induce.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        (31) Engaging in any act that constitutes a violation
2    of any provision of Article 3 of the Illinois Human Rights
3    Act, whether or not a complaint has been filed with or
4    adjudicated by the Human Rights Commission.
5        (32) Inducing any party to a contract of sale or lease
6    or brokerage agreement to break the contract of sale or
7    lease or brokerage agreement for the purpose of
8    substituting, in lieu thereof, a new contract for sale or
9    lease or brokerage agreement with a third party.
10        (33) Negotiating a sale, exchange, or lease of real
11    estate directly with any person if the licensee knows that
12    the person has an exclusive brokerage agreement with
13    another broker, unless specifically authorized by that
14    broker.
15        (34) When a licensee is also an attorney, acting as the
16    attorney for either the buyer or the seller in the same
17    transaction in which the licensee is acting or has acted as
18    a broker or salesperson.
19        (35) Advertising or offering merchandise or services
20    as free if any conditions or obligations necessary for
21    receiving the merchandise or services are not disclosed in
22    the same advertisement or offer. These conditions or
23    obligations include without limitation the requirement
24    that the recipient attend a promotional activity or visit a
25    real estate site. As used in this subdivision (35), "free"
26    includes terms such as "award", "prize", "no charge", "free

 

 

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1    of charge", "without charge", and similar words or phrases
2    that reasonably lead a person to believe that he or she may
3    receive or has been selected to receive something of value,
4    without any conditions or obligations on the part of the
5    recipient.
6        (36) Disregarding or violating any provision of the
7    Land Sales Registration Act of 1989, the Illinois Real
8    Estate Time-Share Act, or the published rules promulgated
9    by the Department to enforce those Acts.
10        (37) Violating the terms of a disciplinary order issued
11    by the Department.
12        (38) Paying or failing to disclose compensation in
13    violation of Article 10 of this Act.
14        (39) Requiring a party to a transaction who is not a
15    client of the licensee to allow the licensee to retain a
16    portion of the escrow moneys for payment of the licensee's
17    commission or expenses as a condition for release of the
18    escrow moneys to that party.
19        (40) Disregarding or violating any provision of this
20    Act or the published rules promulgated by the Department to
21    enforce this Act or aiding or abetting any individual,
22    partnership, registered limited liability partnership,
23    limited liability company, or corporation in disregarding
24    any provision of this Act or the published rules
25    promulgated by the Department to enforce this Act.
26        (41) Failing to provide the minimum services required

 

 

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1    by Section 15-75 of this Act when acting under an exclusive
2    brokerage agreement.
3        (42) Habitual or excessive use or addiction to alcohol,
4    narcotics, stimulants, or any other chemical agent or drug
5    that results in a managing broker, broker, salesperson, or
6    leasing agent's inability to practice with reasonable
7    skill or safety.
8    (b) The Department may refuse to issue or renew or may
9suspend the license of any person who fails to file a return,
10pay the tax, penalty or interest shown in a filed return, or
11pay any final assessment of tax, penalty, or interest, as
12required by any tax Act administered by the Department of
13Revenue, until such time as the requirements of that tax Act
14are satisfied in accordance with subsection (g) of Section
152105-15 of the Civil Administrative Code of Illinois.
16    (c) The Department shall deny a license or renewal
17authorized by this Act to a person who has defaulted on an
18educational loan or scholarship provided or guaranteed by the
19Illinois Student Assistance Commission or any governmental
20agency of this State in accordance with item (5) of subsection
21(g) of Section 2105-15 of the Civil Administrative Code of
22Illinois.
23    (d) In cases where the Department of Healthcare and Family
24Services (formerly Department of Public Aid) has previously
25determined that a licensee or a potential licensee is more than
2630 days delinquent in the payment of child support and has

 

 

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1subsequently certified the delinquency to the Department may
2refuse to issue or renew or may revoke or suspend that person's
3license or may take other disciplinary action against that
4person based solely upon the certification of delinquency made
5by the Department of Healthcare and Family Services in
6accordance with item (5) of subsection (g) of Section 2105-15
7of the Civil Administrative Code of Illinois.
8    (e) In enforcing this Section, the Department or Board upon
9a showing of a possible violation may compel an individual
10licensed to practice under this Act, or who has applied for
11licensure under this Act, to submit to a mental or physical
12examination, or both, as required by and at the expense of the
13Department. The Department or Board may order the examining
14physician to present testimony concerning the mental or
15physical examination of the licensee or applicant. No
16information shall be excluded by reason of any common law or
17statutory privilege relating to communications between the
18licensee or applicant and the examining physician. The
19examining physicians shall be specifically designated by the
20Board or Department. The individual to be examined may have, at
21his or her own expense, another physician of his or her choice
22present during all aspects of this examination. Failure of an
23individual to submit to a mental or physical examination, when
24directed, shall be grounds for suspension of his or her license
25until the individual submits to the examination if the
26Department finds, after notice and hearing, that the refusal to

 

 

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1submit to the examination was without reasonable cause.
2    If the Department or Board finds an individual unable to
3practice because of the reasons set forth in this Section, the
4Department or Board may require that individual to submit to
5care, counseling, or treatment by physicians approved or
6designated by the Department or Board, as a condition, term, or
7restriction for continued, reinstated, or renewed licensure to
8practice; or, in lieu of care, counseling, or treatment, the
9Department may file, or the Board may recommend to the
10Department to file, a complaint to immediately suspend, revoke,
11or otherwise discipline the license of the individual. An
12individual whose license was granted, continued, reinstated,
13renewed, disciplined or supervised subject to such terms,
14conditions, or restrictions, and who fails to comply with such
15terms, conditions, or restrictions, shall be referred to the
16Secretary for a determination as to whether the individual
17shall have his or her license suspended immediately, pending a
18hearing by the Department.
19    In instances in which the Secretary immediately suspends a
20person's license under this Section, a hearing on that person's
21license must be convened by the Department within 30 days after
22the suspension and completed without appreciable delay. The
23Department and Board shall have the authority to review the
24subject individual's record of treatment and counseling
25regarding the impairment to the extent permitted by applicable
26federal statutes and regulations safeguarding the

 

 

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1confidentiality of medical records.
2    An individual licensed under this Act and affected under
3this Section shall be afforded an opportunity to demonstrate to
4the Department or Board that he or she can resume practice in
5compliance with acceptable and prevailing standards under the
6provisions of his or her license.
7(Source: P.A. 95-851, eff. 1-1-09; 96-856, eff. 12-31-09;
8revised 11-18-11.)
 
9    (225 ILCS 454/20-78 new)
10    Sec. 20-78. Confidentiality. All information collected by
11the Department in the course of an examination or investigation
12of a licensee or applicant, including, but not limited to, any
13complaint against a licensee or applicant or any person who
14holds himself or herself out as a licensee or applicant filed
15with the Department and information collected to investigate
16any such complaint, shall be maintained for the confidential
17use of the Department and shall not be disclosed. The
18Department may not disclose the information to anyone other
19than law enforcement officials, regulatory agencies that have
20an appropriate regulatory interest as determined by the
21Secretary, or a party presenting a lawful subpoena to the
22Department. Information and documents disclosed to a federal,
23State, county, or local law enforcement agency shall not be
24disclosed by the agency for any purpose to any other agency or
25person. A formal complaint filed against a licensee by the

 

 

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1Department or any order issued by the Department against a
2licensee or applicant shall be a public record, except as
3otherwise prohibited by law.
 
4    (225 ILCS 454/20-85)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 20-85. Recovery from Real Estate Recovery Fund. The
7Department shall maintain a Real Estate Recovery Fund from
8which any person aggrieved by an act, representation,
9transaction, or conduct of a licensee or unlicensed employee of
10a licensee that is in violation of this Act or the rules
11promulgated pursuant thereto, constitutes embezzlement of
12money or property, or results in money or property being
13unlawfully obtained from any person by false pretenses,
14artifice, trickery, or forgery or by reason of any fraud,
15misrepresentation, discrimination, or deceit by or on the part
16of any such licensee or the unlicensed employee of a licensee
17and that results in a loss of actual cash money, as opposed to
18losses in market value, may recover. The aggrieved person may
19recover, by a post-judgment order of the circuit court of the
20county where the violation occurred in a proceeding described
21in Section 20-90 of this Act, an amount of not more than
22$25,000 from the Fund for damages sustained by the act,
23representation, transaction, or conduct, together with costs
24of suit and attorney's fees incurred in connection therewith of
25not to exceed 15% of the amount of the recovery ordered paid

 

 

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1from the Fund. However, no licensee may recover from the Fund
2unless the court finds that the person suffered a loss
3resulting from intentional misconduct. The post-judgment court
4order shall not include interest on the judgment. The maximum
5liability against the Fund arising out of any one act shall be
6as provided in this Section, and the post-judgment judgment
7order shall spread the award equitably among all co-owners or
8otherwise aggrieved persons, if any. The maximum liability
9against the Fund arising out of the activities of any one
10licensee or one unlicensed employee of a licensee, since
11January 1, 1974, shall be $100,000. Nothing in this Section
12shall be construed to authorize recovery from the Fund unless
13the loss of the aggrieved person results from an act or
14omission of a licensee under this Act who was at the time of
15the act or omission acting in such capacity or was apparently
16acting in such capacity or their unlicensed employee and unless
17the aggrieved person has obtained a valid judgment and
18post-judgment order of the court as provided for in Section
1920-90 of this Act. No person aggrieved by an act,
20representation, or transaction that is in violation of the
21Illinois Real Estate Time-Share Act or the Land Sales
22Registration Act of 1989 may recover from the Fund.
23(Source: P.A. 96-856, eff. 12-31-09.)
 
24    (225 ILCS 454/20-90)
25    (Section scheduled to be repealed on January 1, 2020)

 

 

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1    Sec. 20-90. Collection from Real Estate Recovery Fund;
2procedure.
3    (a) No action for a judgment that subsequently results in a
4post-judgment an order for collection from the Real Estate
5Recovery Fund shall be started later than 2 years after the
6date on which the aggrieved person knew, or through the use of
7reasonable diligence should have known, of the acts or
8omissions giving rise to a right of recovery from the Real
9Estate Recovery Fund.
10    (b) When any aggrieved person commences action for a
11judgment that may result in collection from the Real Estate
12Recovery Fund, the aggrieved person must name as parties
13defendant to that action any and all individual licensees, or
14their employees, or independent contractors who allegedly
15committed or are responsible for acts or omissions giving rise
16to a right of recovery from the Real Estate Recovery Fund.
17Failure to name as parties defendant such licensees, or their
18employees, or independent contractors shall preclude recovery
19from the Real Estate Recovery Fund of any portion of any
20judgment received in such an action. These The aggrieved party
21may also name as additional parties defendant shall also
22include any corporations, limited liability companies,
23partnerships, registered limited liability partnership, or
24other business associations licensed under this Act that may be
25responsible for acts giving rise to a right of recovery from
26the Real Estate Recovery Fund.

 

 

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1    (c) (Blank). When any aggrieved person commences action for
2a judgment that may result in collection from the Real Estate
3Recovery Fund, the aggrieved person must notify the Department
4in writing to this effect within 7 days of the commencement of
5the action. Failure to so notify the Department shall preclude
6recovery from the Real Estate Recovery Fund of any portion of
7any judgment received in such an action. After receiving notice
8of the commencement of such an action, the Department upon
9timely application shall be permitted to intervene as a party
10defendant to that action.
11    (d) When any aggrieved person commences action for a
12judgment that may result in collection from the Real Estate
13Recovery Fund, and the aggrieved person is unable to obtain
14legal and proper service upon the parties defendant licensed
15under this Act under the provisions of Illinois law concerning
16service of process in civil actions, the aggrieved person may
17petition the court where the action to obtain judgment was
18begun for an order to allow service of legal process on the
19Secretary. Service of process on the Secretary shall be taken
20and held in that court to be as valid and binding as if due
21service had been made upon the parties defendant licensed under
22this Act. In case any process mentioned in this Section is
23served upon the Secretary, the Secretary shall forward a copy
24of the process by certified mail to the licensee's last address
25on record with the Department. Any judgment obtained after
26service of process on the Secretary under this Act shall apply

 

 

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1to and be enforceable against the Real Estate Recovery Fund
2only. The Department OBRE may intervene in and defend any such
3action.
4    (e) (Blank). When an aggrieved party commences action for a
5judgment that may result in collection from the Real Estate
6Recovery Fund, and the court before which that action is
7commenced enters judgment by default against the defendant and
8in favor of the aggrieved party, the court shall upon motion of
9the Department set aside that judgment by default. After such a
10judgment by default has been set aside, the Department shall
11appear as party defendant to that action, and thereafter the
12court shall require proof of the allegations in the pleadings
13upon which relief is sought.
14    (f) The aggrieved person shall give written notice to the
15Department within 30 days of the entry of any judgment that may
16result in collection from the Real Estate Recovery Fund. The
17aggrieved person shall provide the Department with OBRE within
1820 days prior written notice of all supplementary proceedings
19so as to allow the Department to intervene and participate in
20all efforts to collect on the judgment in the same manner as
21any party.
22    (g) When any aggrieved person recovers a valid judgment in
23any court of competent jurisdiction against any licensee or an
24unlicensed employee of any licensee broker, upon the grounds of
25fraud, misrepresentation, discrimination, or deceit, the
26aggrieved person may, upon the termination of all proceedings,

 

 

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1including review and appeals in connection with the judgment,
2file a verified claim in the court in which the judgment was
3entered and, upon 30 days' written notice to the Department,
4and to the person against whom the judgment was obtained, may
5apply to the court for a post-judgment an order directing
6payment out of the Real Estate Recovery Fund of the amount
7unpaid upon the judgment, not including interest on the
8judgment, and subject to the limitations stated in Section
920-85 of this Act. The aggrieved person must set out in that
10verified claim and prove at an evidentiary hearing to be held
11by the court upon the application that the claim meets all
12requirements of Section 20-85 and this Section to be eligible
13for payment from the Real Estate Recovery Fund and the
14aggrieved party shall be required to show that the aggrieved
15person:
16        (1) Is not a spouse of the debtor or debtors or the
17    personal representative of such spouse.
18        (2) Has complied with all the requirements of this
19    Section.
20        (3) Has obtained a judgment stating the amount thereof
21    and the amount owing thereon, not including interest
22    thereon, at the date of the application.
23        (4) Has made all reasonable searches and inquiries to
24    ascertain whether the judgment debtor or debtors is
25    possessed of real or personal property or other assets,
26    liable to be sold or applied in satisfaction of the

 

 

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1    judgment.
2        (5) By such search has discovered no personal or real
3    property or other assets liable to be sold or applied, or
4    has discovered certain of them, describing them as owned by
5    the judgment debtor or debtors and liable to be so applied
6    and has taken all necessary action and proceedings for the
7    realization thereof, and the amount thereby realized was
8    insufficient to satisfy the judgment, stating the amount so
9    realized and the balance remaining due on the judgment
10    after application of the amount realized.
11        (6) Has diligently pursued all remedies against all the
12    judgment debtors and all other persons liable to the
13    aggrieved person in the transaction for which recovery is
14    sought from the Real Estate Recovery Fund, including the
15    filing of an adversary action to have the debts declared
16    non-dischargeable in any bankruptcy petition matter filed
17    by any judgment debtor or person liable to the aggrieved
18    person.
19    The aggrieved person shall also be required to prove the
20amount of attorney's fees sought to be recovered and the
21reasonableness of those fees up to the maximum allowed pursuant
22to Section 20-85 of this Act.
23    (h) After conducting the evidentiary hearing required
24under this Section, the The court, in a post-judgment shall
25make an order directed to the Department, shall indicate
26whether requiring payment from the Real Estate Recovery Fund is

 

 

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1appropriate and, if so, the amount of whatever sum it finds to
2be payable upon the claim, pursuant to and in accordance with
3the limitations contained in Section 20-85 of this Act, if the
4court is satisfied, based upon the hearing, of the truth of all
5matters required to be shown by the aggrieved person under
6subsection (g) of this Section and that the aggrieved person
7has fully pursued and exhausted all remedies available for
8recovering the amount awarded by the judgment of the court.
9    (i) Should the Department pay from the Real Estate Recovery
10Fund any amount in settlement of a claim or toward satisfaction
11of a judgment against any licensee a licensed broker or
12salesperson or an unlicensed employee of a licensee broker, the
13licensee's license shall be automatically revoked terminated
14upon the issuance of a post-judgment court order authorizing
15payment from the Real Estate Recovery Fund. No petition for
16restoration of a license shall be heard until repayment has
17been made in full, plus interest at the rate prescribed in
18Section 12-109 of the Code of Civil Procedure of the amount
19paid from the Real Estate Recovery Fund on their account,
20notwithstanding any provision to the contrary in Section
212105-15 of the Department of Professional Regulation Law of the
22Civil Administrative Code of Illinois. A discharge in
23bankruptcy shall not relieve a person from the penalties and
24disabilities provided in this subsection (i).
25    (j) If, at any time, the money deposited in the Real Estate
26Recovery Fund is insufficient to satisfy any duly authorized

 

 

HB5359 Enrolled- 31 -LRB097 19406 CEL 64659 b

1claim or portion thereof, the Department shall, when sufficient
2money has been deposited in the Real Estate Recovery Fund,
3satisfy such unpaid claims or portions thereof, in the order
4that such claims or portions thereof were originally filed,
5plus accumulated interest at the rate prescribed in Section
612-109 of the Code of Civil Procedure.
7(Source: P.A. 96-856, eff. 12-31-09.)
 
8    (225 ILCS 454/20-95)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 20-95. Power of the Department to defend. When the
11Department receives any process, notice, order, or other
12document provided for or required under Section 20-90 of this
13Act, it may enter an appearance, file an answer, appear at the
14court hearing, defend the action, or take whatever other action
15it deems appropriate on behalf and in the name of the parties
16defendant licensed under this Act or the Department and take
17recourse through any appropriate method of review on behalf of
18and in the name of the parties defendant licensed under this
19Act or the Department.
20(Source: P.A. 96-856, eff. 12-31-09.)
 
21    (225 ILCS 454/20-115)
22    (Section scheduled to be repealed on January 1, 2020)
23    Sec. 20-115. Time limit on action. No action may be taken
24by the Department against any person for violation of the terms

 

 

HB5359 Enrolled- 32 -LRB097 19406 CEL 64659 b

1of this Act or its rules unless the action is commenced within
25 years after the occurrence of the alleged violation. This
3limitation shall not apply where it is alleged that an initial
4application for licensure under this Act contains false or
5misleading information.
6(Source: P.A. 96-856, eff. 12-31-09.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.