98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB1232

 

Introduced , by Rep. Jim Sacia

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 407/5-10
225 ILCS 407/20-15
225 ILCS 454/5-20
225 ILCS 454/5-32 new
225 ILCS 454/10-5
225 ILCS 454/20-20

    Amends the Real Estate License Act of 2000. Creates an exemption from the licensing requirements under the Act for any person who holds a valid license under the Auction License Act while conducting an auction for the sale of real estate, provided that certain provisions are complied with. Creates a new provision that provides the Department of Financial and Professional Regulation shall issue a real estate auction certification to applicants who meet certain qualifications. Provides that enabling, aiding, or abetting an auctioneer to conduct a real estate auction in a manner that is in violation of the Act shall be grounds for discipline. Makes corresponding changes in the Auction License Act. Effective 12 months after becoming law.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1232LRB098 07830 MGM 37912 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 Auction License Act is amended by changing
5Sections 5-10 and 20-15 as follows:
 
6    (225 ILCS 407/5-10)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 5-10. Definitions. As used in this Act:
9    "Advertisement" means any written, oral, or electronic
10communication that contains a promotion, inducement, or offer
11to conduct an auction or offer to provide an auction service,
12including but not limited to brochures, pamphlets, radio and
13television scripts, telephone and direct mail solicitations,
14electronic media, and other means of promotion.
15    "Advisory Board" or "Board" means the Auctioneer Advisory
16Board.
17    "Associate auctioneer" means a person who conducts an
18auction, but who is under the direct supervision of, and is
19sponsored by, a licensed auctioneer or auction firm.
20    "Auction" means the sale or lease of property, real or
21personal, by means of exchanges between an auctioneer and
22prospective purchasers or lessees, which consists of a series
23of invitations for offers made by the auctioneer and offers by

 

 

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1prospective purchasers or lessees for the purpose of obtaining
2an acceptable offer for the sale or lease of the property,
3including the sale or lease of property via mail,
4telecommunications, or the Internet.
5    "Auction contract" means a written agreement between an
6auctioneer or auction firm and a seller or sellers.
7    "Auction firm" means any corporation, partnership, or
8limited liability company that acts as an auctioneer and
9provides an auction service.
10    "Auction school" means any educational institution, public
11or private, which offers a curriculum of auctioneer education
12and training approved by the Department.
13    "Auction service" means the service of arranging,
14managing, advertising, or conducting auctions.
15    "Auctioneer" means a person or entity who, for another, for
16a fee, compensation, commission, or any other valuable
17consideration at auction or with the intention or expectation
18of receiving valuable consideration by the means of or process
19of an auction or sale at auction or providing an auction
20service, offers, negotiates, or attempts to negotiate an
21auction contract, sale, purchase, or exchange of goods,
22chattels, merchandise, personal property, real property, or
23any commodity that may be lawfully kept or offered for sale by
24or at auction.
25    "Address of Record" means the designated address recorded
26by the Department in the applicant's or licensee's application

 

 

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1file or license file maintained by the Department. It is the
2duty of the applicant or licensee to inform the Department of
3any change of address, and such changes must be made either
4through the Department's website or by directly contacting the
5Department.
6    "Buyer premium" means any fee or compensation paid by the
7successful purchaser of property sold or leased at or by
8auction, to the auctioneer, auction firms, seller, lessor, or
9other party to the transaction, other than the purchase price.
10    "Department" means the Department of Financial and
11Professional Regulation.
12    "Goods" means chattels, movable goods, merchandise, or
13personal property or commodities of any form or type that may
14be lawfully kept or offered for sale.
15    "Licensee" means any person licensed under this Act.
16    "Managing auctioneer" means any person licensed as an
17auctioneer who manages and supervises licensees sponsored by an
18auction firm or auctioneer.
19    "Person" means an individual, association, partnership,
20corporation, or limited liability company or the officers,
21directors, or employees of the same.
22    "Pre-renewal period" means the 24 months prior to the
23expiration date of a license issued under this Act.
24    "Real estate" means real estate as defined in Section 1-10
25of the Real Estate License Act of 2000 or its successor Acts.
26    "Secretary" means the Secretary of the Department of

 

 

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1Financial and Professional Regulation or his or her designee.
2    "Sponsoring auctioneer" means the auctioneer or auction
3firm who has issued a sponsor card to a licensed auctioneer.
4    "Sponsor card" means the temporary permit issued by the
5sponsoring auctioneer certifying that the licensee named
6thereon is employed by or associated with the sponsoring
7auctioneer and the sponsoring auctioneer shall be responsible
8for the actions of the sponsored licensee.
9(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
 
10    (225 ILCS 407/20-15)
11    (Section scheduled to be repealed on January 1, 2020)
12    Sec. 20-15. Disciplinary actions; grounds. The Department
13may refuse to issue or renew a license, may place on probation
14or administrative supervision, suspend, or revoke any license
15or may reprimand or take other disciplinary or non-disciplinary
16action as the Department may deem proper, including the
17imposition of fines not to exceed $10,000 for each violation
18upon anyone licensed under this Act for any of the following
19reasons:
20        (1) False or fraudulent representation or material
21    misstatement in furnishing information to the Department
22    in obtaining or seeking to obtain a license.
23        (2) Violation of any provision of this Act or the rules
24    promulgated pursuant to this Act.
25        (3) Conviction of or entry of a plea of guilty or nolo

 

 

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1    contendere to any crime that is a felony under the laws of
2    the United States or any state or territory thereof, or
3    that is a misdemeanor, an essential element of which is
4    dishonesty, or any crime that is directly related to the
5    practice of the profession.
6        (4) Being adjudged to be a person under legal
7    disability or subject to involuntary admission or to meet
8    the standard for judicial admission as provided in the
9    Mental Health and Developmental Disabilities Code.
10        (5) Discipline of a licensee by another state, the
11    District of Columbia, a territory of the United States, a
12    foreign nation, a governmental agency, or any other entity
13    authorized to impose discipline if at least one of the
14    grounds for that discipline is the same as or the
15    equivalent to one of the grounds for discipline set forth
16    in this Act or for failing to report to the Department,
17    within 30 days, any adverse final action taken against the
18    licensee by any other licensing jurisdiction, government
19    agency, law enforcement agency, or court, or liability for
20    conduct that would constitute grounds for action as set
21    forth in this Act.
22        (6) Engaging in the practice of auctioneering,
23    conducting an auction, or providing an auction service
24    without a license or after the license was expired,
25    revoked, suspended, or terminated or while the license was
26    inoperative.

 

 

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1        (7) Attempting to subvert or cheat on the auctioneer
2    exam or any continuing education exam, or aiding or
3    abetting another to do the same.
4        (8) Directly or indirectly giving to or receiving from
5    a person, firm, corporation, partnership, or association a
6    fee, commission, rebate, or other form of compensation for
7    professional service not actually or personally rendered,
8    except that an auctioneer licensed under this Act may
9    receive a fee from another licensed auctioneer from this
10    State or jurisdiction for the referring of a client or
11    prospect for auction services to the licensed auctioneer.
12        (9) Making any substantial misrepresentation or
13    untruthful advertising.
14        (10) Making any false promises of a character likely to
15    influence, persuade, or induce.
16        (11) Pursuing a continued and flagrant course of
17    misrepresentation or the making of false promises through a
18    licensee, agent, employee, advertising, or otherwise.
19        (12) Any misleading or untruthful advertising, or
20    using any trade name or insignia of membership in any
21    auctioneer association or organization of which the
22    licensee is not a member.
23        (13) Commingling funds of others with his or her own
24    funds or failing to keep the funds of others in an escrow
25    or trustee account.
26        (14) Failure to account for, remit, or return any

 

 

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1    moneys, property, or documents coming into his or her
2    possession that belong to others, acquired through the
3    practice of auctioneering, conducting an auction, or
4    providing an auction service within 30 days of the written
5    request from the owner of said moneys, property, or
6    documents.
7        (15) Failure to maintain and deposit into a special
8    account, separate and apart from any personal or other
9    business accounts, all moneys belonging to others
10    entrusted to a licensee while acting as an auctioneer,
11    associate auctioneer, auction firm, or as a temporary
12    custodian of the funds of others.
13        (16) Failure to make available to Department personnel
14    during normal business hours all escrow and trustee records
15    and related documents maintained in connection with the
16    practice of auctioneering, conducting an auction, or
17    providing an auction service within 24 hours after a
18    request from Department personnel.
19        (17) Making or filing false records or reports in his
20    or her practice, including but not limited to false records
21    or reports filed with State agencies.
22        (18) Failing to voluntarily furnish copies of all
23    written instruments prepared by the auctioneer and signed
24    by all parties to all parties at the time of execution.
25        (19) Failing to provide information within 30 days in
26    response to a written request made by the Department.

 

 

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1        (20) Engaging in any act that constitutes a violation
2    of Section 2-102, 3-103, or 3-105 of the Illinois Human
3    Rights Act.
4        (21) (Blank).
5        (22) Engaging in dishonorable, unethical, or
6    unprofessional conduct of a character likely to deceive,
7    defraud, or harm the public.
8        (23) Offering or advertising real estate for sale or
9    lease at auction without a valid broker or managing
10    broker's salesperson's license under the Real Estate
11    License Act of 1983, or any successor Act, unless exempt
12    from licensure under the terms of the Real Estate License
13    Act of 2000, or any successor Act, except as provided for
14    in Section 5-32 of the Real Estate License Act of 2000.
15        (24) Inability to practice the profession with
16    reasonable judgment judgement, skill, or safety as a result
17    of a physical illness, including, but not limited to,
18    deterioration through the aging process or loss of motor
19    skill, or a mental illness or disability.
20        (25) A pattern of practice or other behavior that
21    demonstrates incapacity or incompetence to practice under
22    this Act.
23        (26) Being named as a perpetrator in an indicated
24    report by the Department of Children and Family Services
25    under the Abused and Neglected Child Reporting Act and upon
26    proof by clear and convincing evidence that the licensee

 

 

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1    has caused a child to be an abused child or a neglected
2    child as defined in the Abused and Neglected Child
3    Reporting Act.
4        (27) Inability to practice with reasonable judgment
5    judgement, skill, or safety as a result of habitual or
6    excessive use or addiction to alcohol, narcotics,
7    stimulants, or any other chemical agent or drug.
8        (28) Wilfully failing to report an instance of
9    suspected child abuse or neglect as required by the Abused
10    and Neglected Child Reporting Act.
11    The entry of an order by a circuit court establishing that
12any person holding a license under this Act is subject to
13involuntary admission or judicial admission, as provided for in
14the Mental Health and Developmental Disabilities Code,
15operates as an automatic suspension of that license. That
16person may have his or her license restored only upon the
17determination by a circuit court that the patient is no longer
18subject to involuntary admission or judicial admission and the
19issuance of an order so finding and discharging the patient and
20upon the Board's recommendation to the Department that the
21license be restored. Where circumstances so indicate, the Board
22may recommend to the Department that it require an examination
23prior to restoring a suspended license.
24    If the Department or Board finds an individual unable to
25practice because of the reasons set forth in this Section, the
26Department or Board may require that individual to submit to

 

 

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

 

 

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1provisions of his or her license.
2    In enforcing this Section, the Department or Board, upon a
3showing of a possible violation, may compel an individual
4licensed to practice under this Act, or who has applied for
5licensure under this Act, to submit to a mental or physical
6examination, or both, as required by and at the expense of the
7Department. The Department or Board may order the examining
8physician to present testimony concerning the mental or
9physical examination of the licensee or applicant. No
10information shall be excluded by reason of any common law or
11statutory privilege relating to communications between the
12licensee or applicant and the examining physician. The
13examining physicians shall be specifically designated by the
14Board or Department. The individual to be examined may have, at
15his or her own expense, another physician of his or her choice
16present during all aspects of this examination. Failure of an
17individual to submit to a mental or physical examination when
18directed shall be grounds for suspension of his or her license
19until the individual submits to the examination, if the
20Department finds that, after notice and hearing, the refusal to
21submit to the examination was without reasonable cause.
22(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
 
23    Section 10. The Real Estate License Act of 2000 is amended
24by changing Sections 5-20, 10-5, and 20-20 and by adding
25Section 5-32 as follows:
 

 

 

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1    (225 ILCS 454/5-20)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 5-20. Exemptions from broker, salesperson, or leasing
4agent license requirement. The requirement for holding a
5license under this Article 5 shall not apply to:
6        (1) Any person, partnership, or corporation that as
7    owner or lessor performs any of the acts described in the
8    definition of "broker" under Section 1-10 of this Act with
9    reference to property owned or leased by it, or to the
10    regular employees thereof with respect to the property so
11    owned or leased, where such acts are performed in the
12    regular course of or as an incident to the management,
13    sale, or other disposition of such property and the
14    investment therein, provided that such regular employees
15    do not perform any of the acts described in the definition
16    of "broker" under Section 1-10 of this Act in connection
17    with a vocation of selling or leasing any real estate or
18    the improvements thereon not so owned or leased.
19        (2) An attorney in fact acting under a duly executed
20    and recorded power of attorney to convey real estate from
21    the owner or lessor or the services rendered by an attorney
22    at law in the performance of the attorney's duty as an
23    attorney at law.
24        (3) Any person acting as receiver, trustee in
25    bankruptcy, administrator, executor, or guardian or while

 

 

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1    acting under a court order or under the authority of a will
2    or testamentary trust.
3        (4) Any person acting as a resident manager for the
4    owner or any employee acting as the resident manager for a
5    broker managing an apartment building, duplex, or
6    apartment complex, when the resident manager resides on the
7    premises, the premises is his or her primary residence, and
8    the resident manager is engaged in the leasing of the
9    property of which he or she is the resident manager.
10        (5) Any officer or employee of a federal agency in the
11    conduct of official duties.
12        (6) Any officer or employee of the State government or
13    any political subdivision thereof performing official
14    duties.
15        (7) Any multiple listing service or other similar
16    information exchange that is engaged in the collection and
17    dissemination of information concerning real estate
18    available for sale, purchase, lease, or exchange for the
19    purpose of providing licensees with a system by which
20    licensees may cooperatively share information along with
21    which no other licensed activities, as defined in Section
22    1-10 of this Act, are provided.
23        (8) Railroads and other public utilities regulated by
24    the State of Illinois, or the officers or full time
25    employees thereof, unless the performance of any licensed
26    activities is in connection with the sale, purchase, lease,

 

 

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1    or other disposition of real estate or investment therein
2    not needing the approval of the appropriate State
3    regulatory authority.
4        (9) Any medium of advertising in the routine course of
5    selling or publishing advertising along with which no other
6    licensed activities, as defined in Section 1-10 of this
7    Act, are provided.
8        (10) Any resident lessee of a residential dwelling unit
9    who refers for compensation to the owner of the dwelling
10    unit, or to the owner's agent, prospective lessees of
11    dwelling units in the same building or complex as the
12    resident lessee's unit, but only if the resident lessee (i)
13    refers no more than 3 prospective lessees in any 12-month
14    period, (ii) receives compensation of no more than $1,500
15    or the equivalent of one month's rent, whichever is less,
16    in any 12-month period, and (iii) limits his or her
17    activities to referring prospective lessees to the owner,
18    or the owner's agent, and does not show a residential
19    dwelling unit to a prospective lessee, discuss terms or
20    conditions of leasing a dwelling unit with a prospective
21    lessee, or otherwise participate in the negotiation of the
22    leasing of a dwelling unit.
23        (11) An exchange company registered under the Real
24    Estate Timeshare Act of 1999 and the regular employees of
25    that registered exchange company but only when conducting
26    an exchange program as defined in that Act.

 

 

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1        (12) An existing timeshare owner who, for
2    compensation, refers prospective purchasers, but only if
3    the existing timeshare owner (i) refers no more than 20
4    prospective purchasers in any calendar year, (ii) receives
5    no more than $1,000, or its equivalent, for referrals in
6    any calendar year and (iii) limits his or her activities to
7    referring prospective purchasers of timeshare interests to
8    the developer or the developer's employees or agents, and
9    does not show, discuss terms or conditions of purchase or
10    otherwise participate in negotiations with regard to
11    timeshare interests.
12        (13) Any person who is licensed without examination
13    under Section 10-25 (now repealed) of the Auction License
14    Act is exempt from holding a broker's or salesperson's
15    license under this Act for the limited purpose of selling
16    or leasing real estate at auction, so long as:
17            (A) that person has made application for said
18        exemption by July 1, 2000;
19            (B) that person verifies to the Department that he
20        or she has sold real estate at auction for a period of
21        5 years prior to licensure as an auctioneer;
22            (C) the person has had no lapse in his or her
23        license as an auctioneer; and
24            (D) the license issued under the Auction License
25        Act has not been disciplined for violation of those
26        provisions of Article 20 of the Auction License Act

 

 

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1        dealing with or related to the sale or lease of real
2        estate at auction.
3        (14) A person who holds a valid license under the
4    Auction License Act and a valid real estate auction
5    certification and conducts auctions for the sale of real
6    estate under Section 5-32 of this Act.
7        (15) (14) A hotel operator who is registered with the
8    Illinois Department of Revenue and pays taxes under the
9    Hotel Operators' Occupation Tax Act and rents a room or
10    rooms in a hotel as defined in the Hotel Operators'
11    Occupation Tax Act for a period of not more than 30
12    consecutive days and not more than 60 days in a calendar
13    year.
14(Source: P.A. 96-328, eff. 8-11-09; 96-856, eff. 12-31-09.)
 
15    (225 ILCS 454/5-32 new)
16    Sec. 5-32. Real estate auction certification.
17    (a) An auctioneer licensed under the Auction License Act
18who does not possess a valid and active broker's or managing
19broker's license under this Act, or who is not otherwise exempt
20from licensure, may not engage in the practice of auctioning
21real estate, except as provided in this Section.
22    (b) The Department shall issue a real estate auction
23certification to applicants who:
24        (1) possess a valid auctioneer's license under the
25    Auction License Act;

 

 

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1        (2) successfully complete a real estate auction course
2    of at least 30 hours approved by the Real Estate Education
3    Advisory Council, which shall cover the scope of activities
4    that may be engaged in by a person holding a real estate
5    auction certification and the activities for which a person
6    must hold a real estate license, as well as other material
7    as provided by the Advisory Council;
8        (3) successfully complete an examination provided for
9    by the Department; and
10        (4) successfully complete any other reasonable
11    requirements as provided by rule.
12    (c) The auctioneer's role shall be limited to establishing
13the time, place, and method of the real estate auction, placing
14advertisements regarding the auction, and crying or calling the
15auction; any other real estate brokerage activities must be
16performed by a person holding a valid and active real estate
17broker's or managing broker's license under the provisions of
18this Act or by a person who is otherwise exempt from licensure
19under this Act.
20    (d) An auctioneer who conducts any real estate auction
21activities in violation of this Section is guilty of unlicensed
22practice under Section 20-10 of this Act.
23    (e) The Department may revoke, suspend, or otherwise
24discipline the real estate auction certification of an
25auctioneer who is adjudicated to be in violation of the
26provisions of Section 20-15 of the Auction License Act.

 

 

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1    (f) Advertising for the real estate auction must contain
2the name and address of the licensed real estate broker or
3managing broker who is providing brokerage services for the
4transaction.
5    (g) The requirement to hold a real estate auction
6certification shall not apply to a person exempt from this Act
7under the provisions of paragraph (13) of subsection 5-20 of
8this Act, unless that person is performing licensed activities
9in a transaction in which a licensed auctioneer with a real
10estate certification is providing the limited services
11provided for in subsection (c) of this Section.
12    (h) Nothing in this Section shall require a person licensed
13under this Act as a real estate broker or managing broker to
14obtain a real estate auction certification in order to auction
15real estate.
16    (i) The Department may adopt rules to implement this
17Section.
 
18    (225 ILCS 454/10-5)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 10-5. Payment of compensation.
21    (a) No licensee shall pay compensation directly to a
22licensee sponsored by another broker for the performance of
23licensed activities. No licensee sponsored by a broker may pay
24compensation to any licensee other than his or her sponsoring
25broker for the performance of licensed activities unless the

 

 

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1licensee paying the compensation is a principal to the
2transaction. However, a non-sponsoring broker may pay
3compensation directly to a licensee sponsored by another or a
4person who is not sponsored by a broker if the payments are
5made pursuant to terms of an employment agreement that was
6previously in place between a licensee and the non-sponsoring
7broker, and the payments are for licensed activity performed by
8that person while previously sponsored by the now
9non-sponsoring broker.
10    (b) No licensee sponsored by a broker shall accept
11compensation for the performance of activities under this Act
12except from the broker by whom the licensee is sponsored,
13except as provided in this Section.
14    (c) Any person that is a licensed personal assistant for
15another licensee may only be compensated in his or her capacity
16as a personal assistant by the sponsoring broker for that
17licensed personal assistant.
18    (d) One sponsoring broker may pay compensation directly to
19another sponsoring broker for the performance of licensed
20activities.
21    (e) Notwithstanding any other provision of this Act, a
22sponsoring broker may pay compensation to a person currently
23licensed under the Auction License Act who is in compliance
24with and providing services under Section 5-32 of this Act.
25(Source: P.A. 91-245, eff. 12-31-99.)
 

 

 

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1    (225 ILCS 454/20-20)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 20-20. Grounds for discipline.
4    (a) The Department may refuse to issue or renew a license,
5may place on probation, suspend, or revoke any license,
6reprimand, or take any other disciplinary or non-disciplinary
7action as the Department may deem proper and impose a fine not
8to exceed $25,000 upon any licensee or applicant under this Act
9or any person who holds himself or herself out as an applicant
10or licensee or against a licensee in handling his or her own
11property, whether held by deed, option, or otherwise, for any
12one or any combination of the following causes:
13        (1) Fraud or misrepresentation in applying for, or
14    procuring, a license under this Act or in connection with
15    applying for renewal of a license under this Act.
16        (2) The conviction of or plea of guilty or plea of nolo
17    contendere to a felony or misdemeanor in this State or any
18    other jurisdiction; or the entry of an administrative
19    sanction by a government agency in this State or any other
20    jurisdiction. Action taken under this paragraph (2) for a
21    misdemeanor or an administrative sanction is limited to a
22    misdemeanor or administrative sanction that has as an
23    essential element dishonesty or fraud or involves larceny,
24    embezzlement, or obtaining money, property, or credit by
25    false pretenses or by means of a confidence game.
26        (3) Inability to practice the profession with

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    racially and religiously segregated housing or so as to
2    retard, obstruct, or discourage racially integrated
3    housing on or in any street, block, neighborhood, or
4    community.
5        (31) Engaging in any act that constitutes a violation
6    of any provision of Article 3 of the Illinois Human Rights
7    Act, whether or not a complaint has been filed with or
8    adjudicated by the Human Rights Commission.
9        (32) Inducing any party to a contract of sale or lease
10    or brokerage agreement to break the contract of sale or
11    lease or brokerage agreement for the purpose of
12    substituting, in lieu thereof, a new contract for sale or
13    lease or brokerage agreement with a third party.
14        (33) Negotiating a sale, exchange, or lease of real
15    estate directly with any person if the licensee knows that
16    the person has an exclusive brokerage agreement with
17    another broker, unless specifically authorized by that
18    broker.
19        (34) When a licensee is also an attorney, acting as the
20    attorney for either the buyer or the seller in the same
21    transaction in which the licensee is acting or has acted as
22    a broker or salesperson.
23        (35) Advertising or offering merchandise or services
24    as free if any conditions or obligations necessary for
25    receiving the merchandise or services are not disclosed in
26    the same advertisement or offer. These conditions or

 

 

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1    obligations include without limitation the requirement
2    that the recipient attend a promotional activity or visit a
3    real estate site. As used in this subdivision (35), "free"
4    includes terms such as "award", "prize", "no charge", "free
5    of charge", "without charge", and similar words or phrases
6    that reasonably lead a person to believe that he or she may
7    receive or has been selected to receive something of value,
8    without any conditions or obligations on the part of the
9    recipient.
10        (36) Disregarding or violating any provision of the
11    Land Sales Registration Act of 1989, the Illinois Real
12    Estate Time-Share Act, or the published rules promulgated
13    by the Department to enforce those Acts.
14        (37) Violating the terms of a disciplinary order issued
15    by the Department.
16        (38) Paying or failing to disclose compensation in
17    violation of Article 10 of this Act.
18        (39) Requiring a party to a transaction who is not a
19    client of the licensee to allow the licensee to retain a
20    portion of the escrow moneys for payment of the licensee's
21    commission or expenses as a condition for release of the
22    escrow moneys to that party.
23        (40) Disregarding or violating any provision of this
24    Act or the published rules promulgated by the Department to
25    enforce this Act or aiding or abetting any individual,
26    partnership, registered limited liability partnership,

 

 

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1    limited liability company, or corporation in disregarding
2    any provision of this Act or the published rules
3    promulgated by the Department to enforce this Act.
4        (41) Failing to provide the minimum services required
5    by Section 15-75 of this Act when acting under an exclusive
6    brokerage agreement.
7        (42) Habitual or excessive use or addiction to alcohol,
8    narcotics, stimulants, or any other chemical agent or drug
9    that results in a managing broker, broker, salesperson, or
10    leasing agent's inability to practice with reasonable
11    skill or safety.
12        (43) Enabling, aiding, or abetting an auctioneer, as
13    defined in the Auction License Act, to conduct a real
14    estate auction in a manner that is in violation of this
15    Act.
16    (b) The Department may refuse to issue or renew or may
17suspend the license of any person who fails to file a return,
18pay the tax, penalty or interest shown in a filed return, or
19pay any final assessment of tax, penalty, or interest, as
20required by any tax Act administered by the Department of
21Revenue, until such time as the requirements of that tax Act
22are satisfied in accordance with subsection (g) of Section
232105-15 of the Civil Administrative Code of Illinois.
24    (c) The Department shall deny a license or renewal
25authorized by this Act to a person who has defaulted on an
26educational loan or scholarship provided or guaranteed by the

 

 

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1Illinois Student Assistance Commission or any governmental
2agency of this State in accordance with item (5) of subsection
3(g) of Section 2105-15 of the Civil Administrative Code of
4Illinois.
5    (d) In cases where the Department of Healthcare and Family
6Services (formerly Department of Public Aid) has previously
7determined that a licensee or a potential licensee is more than
830 days delinquent in the payment of child support and has
9subsequently certified the delinquency to the Department may
10refuse to issue or renew or may revoke or suspend that person's
11license or may take other disciplinary action against that
12person based solely upon the certification of delinquency made
13by the Department of Healthcare and Family Services in
14accordance with item (5) of subsection (g) of Section 2105-15
15of the Civil Administrative Code of Illinois.
16    (e) In enforcing this Section, the Department or Board upon
17a showing of a possible violation may compel an individual
18licensed to practice under this Act, or who has applied for
19licensure under this Act, to submit to a mental or physical
20examination, or both, as required by and at the expense of the
21Department. The Department or Board may order the examining
22physician to present testimony concerning the mental or
23physical examination of the licensee or applicant. No
24information shall be excluded by reason of any common law or
25statutory privilege relating to communications between the
26licensee or applicant and the examining physician. The

 

 

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

 

 

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1    In instances in which the Secretary immediately suspends a
2person's license under this Section, a hearing on that person's
3license must be convened by the Department within 30 days after
4the suspension and completed without appreciable delay. The
5Department and Board shall have the authority to review the
6subject individual's record of treatment and counseling
7regarding the impairment to the extent permitted by applicable
8federal statutes and regulations safeguarding the
9confidentiality of medical records.
10    An individual licensed under this Act and affected under
11this Section shall be afforded an opportunity to demonstrate to
12the Department or Board that he or she can resume practice in
13compliance with acceptable and prevailing standards under the
14provisions of his or her license.
15(Source: P.A. 96-856, eff. 12-31-09; 97-813, eff. 7-13-12;
1697-1002, eff. 8-17-12.)
 
17    Section 99. Effective date. This Act takes effect 12 months
18after becoming law.