Full Text of HB4709 98th General Assembly
HB4709 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB4709 Introduced , by Rep. Robert Rita SYNOPSIS AS INTRODUCED: |
| 225 ILCS 454/1-10 | | 225 ILCS 454/20-20 | |
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Amends the Real Estate License Act of 2000. Changes the definition of "broker" to include an individual, partnership, limited liability company, corporation, or registered limited liability partnership other than a real estate salesperson or leasing agent who prepares or provides a broker price opinion or comparative market analysis or similar estimate of the value of real estate. Defines "broker price opinion" and "comparative market analysis". Provides that the Department of Financial and Professional Regulation may refuse to issue or renew a license, may place on probation, suspend, or revoke any license, reprimand, or take any other disciplinary or non-disciplinary action as the Department may deem proper and impose a fine not to exceed $25,000 upon any licensee or applicant under the Act or any person who holds himself or herself out as an applicant or licensee or against a licensee in handling his or her own property, whether held by deed, option, or otherwise, for providing a broker price opinion or comparative market analysis in a manner that is not consistent with the provisions of the Uniform Standards of Professional Appraisal Practice that apply to broker price opinions and comparative market analyses, as adopted by the Appraisal Standards Board and by rule. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulations.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Real Estate License Act of 2000 is amended | 5 | | by changing Sections 1-10 and 20-20 as follows:
| 6 | | (225 ILCS 454/1-10)
| 7 | | (Section scheduled to be repealed on January 1, 2020)
| 8 | | Sec. 1-10. Definitions. In this Act, unless the context | 9 | | otherwise requires:
| 10 | | "Act" means the Real Estate License Act of 2000.
| 11 | | "Address of Record" means the designated address recorded | 12 | | by the Department in the applicant's or licensee's application | 13 | | file or license file as maintained by the Department's | 14 | | licensure maintenance unit. It is the duty of the applicant or | 15 | | licensee to inform the Department of any change of address, and | 16 | | those changes must be made either through the Department's | 17 | | website or by contacting the Department. | 18 | | "Advisory Council" means the Real Estate Education | 19 | | Advisory Council created
under Section 30-10 of this Act.
| 20 | | "Agency" means a relationship in which a real estate broker | 21 | | or licensee,
whether directly or through an affiliated | 22 | | licensee, represents a consumer by
the consumer's consent, | 23 | | whether express or implied, in a real property
transaction.
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| 1 | | "Applicant" means any person, as defined in this Section, | 2 | | who applies to
the Department for a valid license as a real | 3 | | estate broker, real estate salesperson, or
leasing agent.
| 4 | | "Blind advertisement" means any real estate advertisement | 5 | | that does not
include the sponsoring broker's business name and | 6 | | that is used by any licensee
regarding the sale or lease of | 7 | | real estate, including his or her own, licensed
activities, or | 8 | | the hiring of any licensee under this Act. The broker's
| 9 | | business name in the case of a franchise shall include the | 10 | | franchise
affiliation as well as the name of the individual | 11 | | firm.
| 12 | | "Board" means the Real Estate Administration and | 13 | | Disciplinary Board of the Department as created by Section | 14 | | 25-10 of this Act.
| 15 | | "Branch office" means a sponsoring broker's office other | 16 | | than the sponsoring
broker's principal office.
| 17 | | "Broker" means an individual, partnership, limited | 18 | | liability company,
corporation, or registered limited | 19 | | liability partnership other than a real
estate salesperson or | 20 | | leasing agent who, whether in person or through any media or | 21 | | technology, for another and for compensation, or
with the | 22 | | intention or expectation of receiving compensation, either
| 23 | | directly or indirectly:
| 24 | | (1) Sells, exchanges, purchases, rents, or leases real | 25 | | estate.
| 26 | | (2) Offers to sell, exchange, purchase, rent, or lease |
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| 1 | | real estate.
| 2 | | (3) Negotiates, offers, attempts, or agrees to | 3 | | negotiate the sale,
exchange, purchase, rental, or leasing | 4 | | of real estate.
| 5 | | (4) Lists, offers, attempts, or agrees to list real | 6 | | estate for sale,
lease, or exchange.
| 7 | | (5) Buys, sells, offers to buy or sell, or otherwise | 8 | | deals in options on
real estate or improvements thereon.
| 9 | | (6) Supervises the collection, offer, attempt, or | 10 | | agreement
to collect rent for the use of real estate.
| 11 | | (7) Advertises or represents himself or herself as | 12 | | being engaged in the
business of buying, selling, | 13 | | exchanging, renting, or leasing real estate.
| 14 | | (8) Assists or directs in procuring or referring of | 15 | | leads or prospects, intended to
result in the sale, | 16 | | exchange, lease, or rental of real estate.
| 17 | | (9) Assists or directs in the negotiation of any | 18 | | transaction intended to
result in the sale, exchange, | 19 | | lease, or rental of real estate.
| 20 | | (10) Opens real estate to the public for marketing | 21 | | purposes.
| 22 | | (11) Sells, leases, or offers for sale or lease real | 23 | | estate at
auction.
| 24 | | (12) Prepares or provides a broker price opinion or | 25 | | comparative market analysis or similar estimate of the | 26 | | value of real estate. |
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| 1 | | "Broker price opinion" means an opinion of value, other | 2 | | than an automated valuation model, that includes, but is not | 3 | | limited to, an analysis of similar competing properties, | 4 | | comparable sold properties, recommended repairs, and costs of | 5 | | suggested marketing techniques and that specifically states | 6 | | that it is not an appraisal. | 7 | | "Brokerage agreement" means a written or oral agreement | 8 | | between a sponsoring
broker and a consumer for licensed | 9 | | activities to be provided to a consumer in
return for | 10 | | compensation or the right to receive compensation from another.
| 11 | | Brokerage agreements may constitute either a bilateral or a | 12 | | unilateral
agreement between the broker and the broker's client | 13 | | depending upon the content
of the brokerage agreement. All | 14 | | exclusive brokerage agreements shall be in
writing.
| 15 | | "Client" means a person who is being represented by a | 16 | | licensee.
| 17 | | "Comparative market analysis" means an analysis of similar | 18 | | recently sold properties conducted in order to derive an | 19 | | indication of the probable sales price of a particular | 20 | | property, other than an automated valuation model, and that | 21 | | specifically states that it is not an appraisal. | 22 | | "Compensation" means the valuable consideration given by | 23 | | one person or entity
to another person or entity in exchange | 24 | | for the performance of some activity or
service. Compensation | 25 | | shall include the transfer of valuable consideration,
| 26 | | including without limitation the following:
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| 1 | | (1) commissions;
| 2 | | (2) referral fees;
| 3 | | (3) bonuses;
| 4 | | (4) prizes;
| 5 | | (5) merchandise;
| 6 | | (6) finder fees;
| 7 | | (7) performance of services;
| 8 | | (8) coupons or gift certificates;
| 9 | | (9) discounts;
| 10 | | (10) rebates;
| 11 | | (11) a chance to win a raffle, drawing, lottery, or | 12 | | similar game of chance
not prohibited by any other law or | 13 | | statute;
| 14 | | (12) retainer fee; or
| 15 | | (13) salary.
| 16 | | "Confidential information" means information obtained by a | 17 | | licensee from a
client during the term of a brokerage agreement | 18 | | that (i) was made confidential
by the written request or | 19 | | written instruction of the client, (ii) deals with
the | 20 | | negotiating position of the client, or (iii) is information the | 21 | | disclosure
of which could materially harm the negotiating | 22 | | position of the client, unless
at any time:
| 23 | | (1) the client permits the disclosure of information | 24 | | given by that client
by word or conduct;
| 25 | | (2) the disclosure is required by law; or
| 26 | | (3) the information becomes public from a source other |
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| 1 | | than the licensee.
| 2 | | "Confidential information" shall not be considered to | 3 | | include material
information about the physical condition of | 4 | | the property.
| 5 | | "Consumer" means a person or entity seeking or receiving | 6 | | licensed
activities.
| 7 | | "Continuing education school" means any person licensed by | 8 | | the Department as a school
for continuing education in | 9 | | accordance with Section 30-15 of this Act. | 10 | | "Coordinator" means the Coordinator of Real Estate created | 11 | | in Section 25-15 of this Act.
| 12 | | "Credit hour" means 50 minutes of classroom instruction in | 13 | | course work that
meets the requirements set forth in rules | 14 | | adopted by the Department.
| 15 | | "Customer" means a consumer who is not being represented by | 16 | | the licensee but
for whom the licensee is performing | 17 | | ministerial acts.
| 18 | | "Department" means the Department of Financial and | 19 | | Professional Regulation. | 20 | | "Designated agency" means a contractual relationship | 21 | | between a sponsoring
broker and a client under Section 15-50 of | 22 | | this Act in which one or more
licensees associated with or | 23 | | employed by the broker are designated as agent of
the client.
| 24 | | "Designated agent" means a sponsored licensee named by a | 25 | | sponsoring broker as
the legal agent of a client, as provided | 26 | | for in Section 15-50 of this Act.
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| 1 | | "Dual agency" means an agency relationship in which a | 2 | | licensee is
representing both buyer and seller or both landlord | 3 | | and tenant in the same
transaction. When the agency | 4 | | relationship is a designated agency, the
question of whether | 5 | | there is a dual agency shall be determined by the agency
| 6 | | relationships of the designated agent of the parties and not of | 7 | | the sponsoring
broker.
| 8 | | "Employee" or other derivative of the word "employee", when | 9 | | used to refer to,
describe, or delineate the relationship | 10 | | between a real estate broker and a real
estate salesperson, | 11 | | another real estate broker, or a leasing agent, shall be
| 12 | | construed to include an independent contractor relationship, | 13 | | provided that a
written agreement exists that clearly | 14 | | establishes and states the relationship.
All responsibilities | 15 | | of a broker shall remain.
| 16 | | "Escrow moneys" means all moneys, promissory notes or any | 17 | | other type or
manner of legal tender or financial consideration | 18 | | deposited with any person for
the benefit of the parties to the | 19 | | transaction. A transaction exists once an
agreement has been | 20 | | reached and an accepted real estate contract signed or lease
| 21 | | agreed to by the parties. Escrow moneys includes without | 22 | | limitation earnest
moneys and security deposits, except those | 23 | | security deposits in which the
person holding the security | 24 | | deposit is also the sole owner of the property
being leased and | 25 | | for which the security deposit is being held.
| 26 | | "Electronic means of proctoring" means a methodology |
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| 1 | | providing assurance that the person taking a test and | 2 | | completing the answers to questions is the person seeking | 3 | | licensure or credit for continuing education and is doing so | 4 | | without the aid of a third party or other device. | 5 | | "Exclusive brokerage agreement" means a written brokerage | 6 | | agreement that provides that the sponsoring broker has the sole | 7 | | right, through one or more sponsored licensees, to act as the | 8 | | exclusive designated agent or representative of the client and | 9 | | that meets the requirements of Section 15-75 of this Act.
| 10 | | "Inoperative" means a status of licensure where the | 11 | | licensee holds a current
license under this Act, but the | 12 | | licensee is prohibited from engaging in
licensed activities | 13 | | because the licensee is unsponsored or the license of the
| 14 | | sponsoring broker with whom the licensee is associated or by | 15 | | whom he or she is
employed is currently expired, revoked, | 16 | | suspended, or otherwise rendered
invalid under this Act.
| 17 | | "Interactive delivery method" means delivery of a course by | 18 | | an instructor through a medium allowing for 2-way communication | 19 | | between the instructor and a student in which either can | 20 | | initiate or respond to questions. | 21 | | "Leads" means the name or names of a potential buyer, | 22 | | seller, lessor, lessee, or client of a licensee. | 23 | | "Leasing Agent" means a person who is employed by a real | 24 | | estate broker to
engage in licensed activities limited to | 25 | | leasing residential real estate who
has obtained a license as | 26 | | provided for in Section 5-5 of this Act.
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| 1 | | "License" means the document issued by the Department | 2 | | certifying that the person named
thereon has fulfilled all | 3 | | requirements prerequisite to licensure under this
Act.
| 4 | | "Licensed activities" means those activities listed in the | 5 | | definition of
"broker" under this Section.
| 6 | | "Licensee" means any person, as defined in this Section, | 7 | | who holds a
valid unexpired license as a real estate broker, | 8 | | real estate salesperson, or
leasing agent.
| 9 | | "Listing presentation" means a communication between a | 10 | | real estate broker or
salesperson and a consumer in which the | 11 | | licensee is attempting to secure a
brokerage agreement with the | 12 | | consumer to market the consumer's real estate for
sale or | 13 | | lease.
| 14 | | "Managing broker" means a broker who has supervisory | 15 | | responsibilities for
licensees in one or, in the case of a | 16 | | multi-office company, more than one
office and who has been | 17 | | appointed as such by the sponsoring broker.
| 18 | | "Medium of advertising" means any method of communication | 19 | | intended to
influence the general public to use or purchase a | 20 | | particular good or service or
real estate.
| 21 | | "Ministerial acts" means those acts that a licensee may | 22 | | perform for a
consumer that are informative or clerical in | 23 | | nature and do not rise to the
level of active representation on | 24 | | behalf of a consumer. Examples of these acts
include without | 25 | | limitation (i) responding to phone inquiries by consumers as to
| 26 | | the availability and pricing of brokerage services, (ii) |
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| 1 | | responding to phone
inquiries from a consumer concerning the | 2 | | price or location of property, (iii)
attending an open house | 3 | | and responding to questions about the property from a
consumer, | 4 | | (iv) setting an appointment to view property, (v) responding to
| 5 | | questions of consumers walking into a licensee's office | 6 | | concerning brokerage
services offered or particular | 7 | | properties, (vi) accompanying an appraiser,
inspector, | 8 | | contractor, or similar third party on a visit to a property, | 9 | | (vii)
describing a property or the property's condition in | 10 | | response to a consumer's
inquiry, (viii) completing business or | 11 | | factual information for a consumer on an
offer or contract to | 12 | | purchase on behalf of a client, (ix) showing a client
through a | 13 | | property being sold by an owner on his or her own behalf, or | 14 | | (x)
referral to another broker or service provider.
| 15 | | "Office" means a real estate broker's place of business | 16 | | where the general
public is invited to transact business and | 17 | | where records may be maintained and
licenses displayed, whether | 18 | | or not it is the broker's principal place of
business.
| 19 | | "Person" means and includes individuals, entities, | 20 | | corporations, limited
liability companies, registered limited | 21 | | liability partnerships, and
partnerships, foreign or domestic, | 22 | | except that when the context otherwise
requires, the term may | 23 | | refer to a single individual or other described entity.
| 24 | | "Personal assistant" means a licensed or unlicensed person | 25 | | who has been hired
for the purpose of aiding or assisting a | 26 | | sponsored licensee in the performance
of the sponsored |
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| 1 | | licensee's job.
| 2 | | "Pocket card" means the card issued by the Department to | 3 | | signify that the person named
on the card is currently licensed | 4 | | under this Act.
| 5 | | "Pre-license school" means a school licensed by the | 6 | | Department offering courses in
subjects related to real estate | 7 | | transactions, including the subjects upon
which an applicant is | 8 | | examined in determining fitness to receive a license.
| 9 | | "Pre-renewal period" means the period between the date of | 10 | | issue of a
currently valid license and the license's expiration | 11 | | date.
| 12 | | "Proctor" means any person, including, but not limited to, | 13 | | an instructor, who has a written agreement to administer | 14 | | examinations fairly and impartially with a licensed | 15 | | pre-license school or a licensed continuing education school. | 16 | | "Real estate" means and includes leaseholds as well as any | 17 | | other interest or
estate in land, whether corporeal, | 18 | | incorporeal, freehold, or non-freehold,
including timeshare | 19 | | interests, and whether the real estate is situated in this
| 20 | | State or elsewhere.
| 21 | | "Regular employee" means a person working an average of 20 | 22 | | hours per week for a person or entity who would be considered | 23 | | as an employee under the Internal Revenue Service eleven main | 24 | | tests in three categories being behavioral control, financial | 25 | | control and the type of relationship of the parties, formerly | 26 | | the twenty factor test.
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| 1 | | "Salesperson" means any individual, other than a real | 2 | | estate broker or
leasing agent, who is employed by a real | 3 | | estate broker or is associated by
written agreement with a real | 4 | | estate broker as an independent contractor and
participates in | 5 | | any activity described in the definition of "broker" under this
| 6 | | Section.
| 7 | | "Secretary" means the Secretary of the Department of | 8 | | Financial and Professional Regulation, or a person authorized | 9 | | by the Secretary to act in the Secretary's stead. | 10 | | "Sponsoring broker" means the broker who has issued a | 11 | | sponsor card to a
licensed salesperson, another licensed | 12 | | broker, or a leasing agent.
| 13 | | "Sponsor card" means the temporary permit issued by the | 14 | | sponsoring real
estate broker certifying that the real estate | 15 | | broker, real estate salesperson,
or leasing agent named thereon | 16 | | is employed by or associated by written
agreement with the | 17 | | sponsoring real estate broker, as provided for in Section
5-40 | 18 | | of this Act.
| 19 | | (Source: P.A. 98-531, eff. 8-23-13.)
| 20 | | (225 ILCS 454/20-20)
| 21 | | (Section scheduled to be repealed on January 1, 2020)
| 22 | | Sec. 20-20. Grounds for discipline. | 23 | | (a) The Department may refuse to issue or renew a license, | 24 | | may place on probation, suspend,
or
revoke any
license, | 25 | | reprimand, or take any other disciplinary or non-disciplinary |
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| 1 | | action as the Department may deem proper and impose a
fine not | 2 | | to exceed
$25,000 upon any licensee or applicant under this Act | 3 | | or any person who holds himself or herself out as an applicant | 4 | | or licensee or against a licensee in handling his or her own | 5 | | property, whether held by deed, option, or otherwise, for any | 6 | | one or any combination of the
following causes:
| 7 | | (1) Fraud or misrepresentation in applying for, or | 8 | | procuring, a license under this Act or in connection with | 9 | | applying for renewal of a license under this Act.
| 10 | | (2) The conviction of or plea of guilty or plea of nolo | 11 | | contendere to a felony or misdemeanor in this State or any | 12 | | other jurisdiction; or the entry of an administrative | 13 | | sanction by a government agency in this State or any other | 14 | | jurisdiction. Action taken under this paragraph (2) for a | 15 | | misdemeanor or an administrative sanction is limited to a | 16 | | misdemeanor or administrative sanction that has as an
| 17 | | essential element dishonesty or fraud or involves larceny, | 18 | | embezzlement,
or obtaining money, property, or credit by | 19 | | false pretenses or by means of a
confidence
game.
| 20 | | (3) Inability to practice the profession with | 21 | | reasonable judgment, skill, or safety as a result of a | 22 | | physical illness, including, but not limited to, | 23 | | deterioration through the aging process or loss of motor | 24 | | skill, or a mental illness or disability.
| 25 | | (4) Practice under this Act as a licensee in a retail | 26 | | sales establishment from an office, desk, or space that
is |
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| 1 | | not
separated from the main retail business by a separate | 2 | | and distinct area within
the
establishment.
| 3 | | (5) Having been disciplined by another state, the | 4 | | District of Columbia, a territory, a foreign nation, or a | 5 | | governmental agency authorized to impose discipline if at | 6 | | least one of the grounds for that discipline is the same as | 7 | | or
the
equivalent of one of the grounds for which a | 8 | | licensee may be disciplined under this Act. A certified | 9 | | copy of the record of the action by the other state or | 10 | | jurisdiction shall be prima facie evidence thereof.
| 11 | | (6) Engaging in the practice of real estate brokerage
| 12 | | without a
license or after the licensee's license was | 13 | | expired or while the license was
inoperative.
| 14 | | (7) Cheating on or attempting to subvert the Real
| 15 | | Estate License Exam or continuing education exam. | 16 | | (8) Aiding or abetting an applicant
to
subvert or cheat | 17 | | on the Real Estate License Exam or continuing education | 18 | | exam
administered pursuant to this Act.
| 19 | | (9) Advertising that is inaccurate, misleading, or | 20 | | contrary to the provisions of the Act.
| 21 | | (10) Making any substantial misrepresentation or | 22 | | untruthful advertising.
| 23 | | (11) Making any false promises of a character likely to | 24 | | influence,
persuade,
or induce.
| 25 | | (12) Pursuing a continued and flagrant course of | 26 | | misrepresentation or the
making
of false promises through |
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| 1 | | licensees, employees, agents, advertising, or
otherwise.
| 2 | | (13) Any misleading or untruthful advertising, or | 3 | | using any trade name or
insignia of membership in any real | 4 | | estate organization of which the licensee is
not a member.
| 5 | | (14) Acting for more than one party in a transaction | 6 | | without providing
written
notice to all parties for whom | 7 | | the licensee acts.
| 8 | | (15) Representing or attempting to represent a broker | 9 | | other than the
sponsoring broker.
| 10 | | (16) Failure to account for or to remit any moneys or | 11 | | documents coming into
his or her possession that belong to | 12 | | others.
| 13 | | (17) Failure to maintain and deposit in a special | 14 | | account, separate and
apart from
personal and other | 15 | | business accounts, all escrow moneys belonging to others
| 16 | | entrusted to a licensee
while acting as a real estate | 17 | | broker, escrow agent, or temporary custodian of
the funds | 18 | | of others or
failure to maintain all escrow moneys on | 19 | | deposit in the account until the
transactions are
| 20 | | consummated or terminated, except to the extent that the | 21 | | moneys, or any part
thereof, shall be: | 22 | | (A)
disbursed prior to the consummation or | 23 | | termination (i) in accordance with
the
written | 24 | | direction of
the principals to the transaction or their | 25 | | duly authorized agents, (ii) in accordance with
| 26 | | directions providing for the
release, payment, or |
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| 1 | | distribution of escrow moneys contained in any written
| 2 | | contract signed by the
principals to the transaction or | 3 | | their duly authorized agents,
or (iii)
pursuant to an | 4 | | order of a court of competent
jurisdiction; or | 5 | | (B) deemed abandoned and transferred to the Office | 6 | | of the State Treasurer to be handled as unclaimed | 7 | | property pursuant to the Uniform Disposition of | 8 | | Unclaimed Property Act. Escrow moneys may be deemed | 9 | | abandoned under this subparagraph (B) only: (i) in the | 10 | | absence of disbursement under subparagraph (A); (ii) | 11 | | in the absence of notice of the filing of any claim in | 12 | | a court of competent jurisdiction; and (iii) if 6 | 13 | | months have elapsed after the receipt of a written | 14 | | demand for the escrow moneys from one of the principals | 15 | | to the transaction or the principal's duly authorized | 16 | | agent.
| 17 | | The account
shall be noninterest
bearing, unless the | 18 | | character of the deposit is such that payment of interest
| 19 | | thereon is otherwise
required by law or unless the | 20 | | principals to the transaction specifically
require, in | 21 | | writing, that the
deposit be placed in an interest bearing | 22 | | account.
| 23 | | (18) Failure to make available to the Department all | 24 | | escrow records and related documents
maintained in | 25 | | connection
with the practice of real estate within 24 hours | 26 | | of a request for those
documents by Department personnel.
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| 1 | | (19) Failing to furnish copies upon request of | 2 | | documents relating to a
real
estate transaction to a party | 3 | | who has executed that document.
| 4 | | (20) Failure of a sponsoring broker to timely provide | 5 | | information, sponsor
cards,
or termination of licenses to | 6 | | the Department.
| 7 | | (21) Engaging in dishonorable, unethical, or | 8 | | unprofessional conduct of a
character
likely to deceive, | 9 | | defraud, or harm the public.
| 10 | | (22) Commingling the money or property of others with | 11 | | his or her own money or property.
| 12 | | (23) Employing any person on a purely temporary or | 13 | | single deal basis as a
means
of evading the law regarding | 14 | | payment of commission to nonlicensees on some
contemplated
| 15 | | transactions.
| 16 | | (24) Permitting the use of his or her license as a | 17 | | broker to enable a
salesperson or
unlicensed person to | 18 | | operate a real estate business without actual
| 19 | | participation therein and control
thereof by the broker.
| 20 | | (25) Any other conduct, whether of the same or a | 21 | | different character from
that
specified in this Section, | 22 | | that constitutes dishonest dealing.
| 23 | | (26) Displaying a "for rent" or "for sale" sign on any | 24 | | property without
the written
consent of an owner or his or | 25 | | her duly authorized agent or advertising by any
means that | 26 | | any property is
for sale or for rent without the written |
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| 1 | | consent of the owner or his or her
authorized agent.
| 2 | | (27) Failing to provide information requested by the | 3 | | Department, or otherwise respond to that request, within 30 | 4 | | days of
the
request.
| 5 | | (28) Advertising by means of a blind advertisement, | 6 | | except as otherwise
permitted in Section 10-30 of this Act.
| 7 | | (29) Offering guaranteed sales plans, as defined in | 8 | | clause (A) of
this subdivision (29), except to
the extent | 9 | | hereinafter set forth:
| 10 | | (A) A "guaranteed sales plan" is any real estate | 11 | | purchase or sales plan
whereby a licensee enters into a | 12 | | conditional or unconditional written contract
with a | 13 | | seller, prior to entering into a brokerage agreement | 14 | | with the seller, by the
terms of which a licensee | 15 | | agrees to purchase a property of the seller within a
| 16 | | specified period of time
at a specific price in the | 17 | | event the property is not sold in accordance with
the | 18 | | terms of a brokerage agreement to be entered into | 19 | | between the sponsoring broker and the seller.
| 20 | | (B) A licensee offering a guaranteed sales plan | 21 | | shall provide the
details
and conditions of the plan in | 22 | | writing to the party to whom the plan is
offered.
| 23 | | (C) A licensee offering a guaranteed sales plan | 24 | | shall provide to the
party
to whom the plan is offered | 25 | | evidence of sufficient financial resources to
satisfy | 26 | | the commitment to
purchase undertaken by the broker in |
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| 1 | | the plan.
| 2 | | (D) Any licensee offering a guaranteed sales plan | 3 | | shall undertake to
market the property of the seller | 4 | | subject to the plan in the same manner in
which the | 5 | | broker would
market any other property, unless the | 6 | | agreement with the seller provides
otherwise.
| 7 | | (E) The licensee cannot purchase seller's property | 8 | | until the brokerage agreement has ended according to | 9 | | its terms or is otherwise terminated. | 10 | | (F) Any licensee who fails to perform on a | 11 | | guaranteed sales plan in
strict accordance with its | 12 | | terms shall be subject to all the penalties provided
in | 13 | | this Act for
violations thereof and, in addition, shall | 14 | | be subject to a civil fine payable
to the party injured | 15 | | by the
default in an amount of up to $25,000.
| 16 | | (30) Influencing or attempting to influence, by any | 17 | | words or acts, a
prospective
seller, purchaser, occupant, | 18 | | landlord, or tenant of real estate, in connection
with | 19 | | viewing, buying, or
leasing real estate, so as to promote | 20 | | or tend to promote the continuance
or maintenance of
| 21 | | racially and religiously segregated housing or so as to | 22 | | retard, obstruct, or
discourage racially
integrated | 23 | | housing on or in any street, block, neighborhood, or | 24 | | community.
| 25 | | (31) Engaging in any act that constitutes a violation | 26 | | of any provision of
Article 3 of the Illinois Human Rights |
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| 1 | | Act, whether or not a complaint has
been filed with or
| 2 | | adjudicated by the Human Rights Commission.
| 3 | | (32) Inducing any party to a contract of sale or lease | 4 | | or brokerage
agreement to
break the contract of sale or | 5 | | lease or brokerage agreement for the purpose of
| 6 | | substituting, in lieu
thereof, a new contract for sale or | 7 | | lease or brokerage agreement with a third
party.
| 8 | | (33) Negotiating a sale, exchange, or lease of real | 9 | | estate directly with
any person
if the licensee knows that | 10 | | the person has an exclusive brokerage
agreement with | 11 | | another
broker, unless specifically authorized by that | 12 | | broker.
| 13 | | (34) When a licensee is also an attorney, acting as the | 14 | | attorney for
either the
buyer or the seller in the same | 15 | | transaction in which the licensee is acting or
has acted as | 16 | | a broker
or salesperson.
| 17 | | (35) Advertising or offering merchandise or services | 18 | | as free if any
conditions or
obligations necessary for | 19 | | receiving the merchandise or services are not
disclosed in | 20 | | the same
advertisement or offer. These conditions or | 21 | | obligations include without
limitation the
requirement | 22 | | that the recipient attend a promotional activity or visit a | 23 | | real
estate site. As used in this
subdivision (35), "free" | 24 | | includes terms such as "award", "prize", "no charge",
"free | 25 | | of charge",
"without charge", and similar words or phrases | 26 | | that reasonably lead a person to
believe that he or she
may |
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| 1 | | receive or has been selected to receive something of value, | 2 | | without any
conditions or
obligations on the part of the | 3 | | recipient.
| 4 | | (36) Disregarding or violating any provision of the | 5 | | Land Sales
Registration Act of 1989, the Illinois Real | 6 | | Estate
Time-Share Act, or the published rules promulgated | 7 | | by the Department to enforce
those Acts.
| 8 | | (37) Violating the terms of a disciplinary order
issued | 9 | | by the Department.
| 10 | | (38) Paying or failing to disclose compensation in | 11 | | violation of Article 10 of this Act.
| 12 | | (39) Requiring a party to a transaction who is not a | 13 | | client of the
licensee
to allow the licensee to retain a | 14 | | portion of the escrow moneys for payment of
the licensee's | 15 | | commission or expenses as a condition for release of the | 16 | | escrow
moneys to that party.
| 17 | | (40) Disregarding or violating any provision of this | 18 | | Act or the published
rules
promulgated by the Department to | 19 | | enforce this Act or aiding or abetting any individual,
| 20 | | partnership, registered limited liability partnership, | 21 | | limited liability
company, or corporation in
disregarding | 22 | | any provision of this Act or the published rules | 23 | | promulgated by the Department
to enforce this Act.
| 24 | | (41) Failing to provide the minimum services required | 25 | | by Section 15-75 of this Act when acting under an exclusive | 26 | | brokerage agreement.
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| 1 | | (42) Habitual or excessive use or addiction to alcohol, | 2 | | narcotics, stimulants, or any other chemical agent or drug | 3 | | that results in a managing broker, broker, salesperson, or | 4 | | leasing agent's inability to practice with reasonable | 5 | | skill or safety. | 6 | | (43) Enabling, aiding, or abetting an auctioneer, as | 7 | | defined in the Auction License Act, to conduct a real | 8 | | estate auction in a manner that is in violation of this | 9 | | Act. | 10 | | (44) Providing a broker price opinion or comparative | 11 | | market analysis in a manner that is not consistent with the | 12 | | provisions of the Uniform Standards of Professional | 13 | | Appraisal Practice that apply to broker price opinions and | 14 | | comparative market analyses, as adopted by the Appraisal | 15 | | Standards Board and by rule. | 16 | | (b) The Department may refuse to issue or renew or may | 17 | | suspend the license of any person who fails to file a return, | 18 | | pay the tax, penalty or interest shown in a filed return, or | 19 | | pay any final assessment of tax, penalty, or interest, as | 20 | | required by any tax Act administered by the Department of | 21 | | Revenue, until such time as the requirements of that tax Act | 22 | | are satisfied in accordance with subsection (g) of Section | 23 | | 2105-15 of the Civil Administrative Code of Illinois. | 24 | | (c) The Department shall deny a license or renewal | 25 | | authorized by this Act to a person who has defaulted on an | 26 | | educational loan or scholarship provided or guaranteed by the |
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| 1 | | Illinois Student Assistance Commission or any governmental | 2 | | agency of this State in accordance with item (5) of subsection | 3 | | (a) (g) of Section 2105-15 of the Civil Administrative Code of | 4 | | Illinois. | 5 | | (d) In cases where the Department of Healthcare and Family | 6 | | Services (formerly Department of Public Aid) has previously | 7 | | determined that a licensee or a potential licensee is more than | 8 | | 30 days delinquent in the payment of child support and has | 9 | | subsequently certified the delinquency to the Department may | 10 | | refuse to issue or renew or may revoke or suspend that person's | 11 | | license or may take other disciplinary action against that | 12 | | person based solely upon the certification of delinquency made | 13 | | by the Department of Healthcare and Family Services in | 14 | | accordance with item (5) of subsection (a) (g) of Section | 15 | | 2105-15 of the Civil Administrative Code of Illinois. | 16 | | (e) In enforcing this Section, the Department or Board upon | 17 | | a showing of a possible violation may compel an individual | 18 | | licensed to practice under this Act, or who has applied for | 19 | | licensure under this Act, to submit to a mental or physical | 20 | | examination, or both, as required by and at the expense of the | 21 | | Department. The Department or Board may order the examining | 22 | | physician to present testimony concerning the mental or | 23 | | physical examination of the licensee or applicant. No | 24 | | information shall be excluded by reason of any common law or | 25 | | statutory privilege relating to communications between the | 26 | | licensee or applicant and the examining physician. The |
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| 1 | | examining physicians shall be specifically designated by the | 2 | | Board or Department. The individual to be examined may have, at | 3 | | his or her own expense, another physician of his or her choice | 4 | | present during all aspects of this examination. Failure of an | 5 | | individual to submit to a mental or physical examination, when | 6 | | directed, shall be grounds for suspension of his or her license | 7 | | until the individual submits to the examination if the | 8 | | Department finds, after notice and hearing, that the refusal to | 9 | | submit to the examination was without reasonable cause. | 10 | | If the Department or Board finds an individual unable to | 11 | | practice because of the reasons set forth in this Section, the | 12 | | Department or Board may require that individual to submit to | 13 | | care, counseling, or treatment by physicians approved or | 14 | | designated by the Department or Board, as a condition, term, or | 15 | | restriction for continued, reinstated, or renewed licensure to | 16 | | practice; or, in lieu of care, counseling, or treatment, the | 17 | | Department may file, or the Board may recommend to the | 18 | | Department to file, a complaint to immediately suspend, revoke, | 19 | | or otherwise discipline the license of the individual. An | 20 | | individual whose license was granted, continued, reinstated, | 21 | | renewed, disciplined or supervised subject to such terms, | 22 | | conditions, or restrictions, and who fails to comply with such | 23 | | terms, conditions, or restrictions, shall be referred to the | 24 | | Secretary for a determination as to whether the individual | 25 | | shall have his or her license suspended immediately, pending a | 26 | | hearing by the Department. |
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| 1 | | In instances in which the Secretary immediately suspends a | 2 | | person's license under this Section, a hearing on that person's | 3 | | license must be convened by the Department within 30 days after | 4 | | the suspension and completed without appreciable delay. The | 5 | | Department and Board shall have the authority to review the | 6 | | subject individual's record of treatment and counseling | 7 | | regarding the impairment to the extent permitted by applicable | 8 | | federal statutes and regulations safeguarding the | 9 | | confidentiality of medical records. | 10 | | An individual licensed under this Act and affected under | 11 | | this Section shall be afforded an opportunity to demonstrate to | 12 | | the Department or Board that he or she can resume practice in | 13 | | compliance with acceptable and prevailing standards under the | 14 | | provisions of his or her license. | 15 | | (Source: P.A. 97-813, eff. 7-13-12; 97-1002, eff. 8-17-12; | 16 | | 98-553, eff. 1-1-14; revised 11-14-13.)
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.
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