Full Text of HB1361 95th General Assembly
HB1361ham001 95TH GENERAL ASSEMBLY
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Rep. LaShawn K. Ford
Filed: 4/17/2007
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LRB095 08275 RAS 35050 a |
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| AMENDMENT TO HOUSE BILL 1361
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| AMENDMENT NO. ______. Amend House Bill 1361 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Real Estate License Act of 2000 is amended | 5 |
| by changing Section 20-20 as follows:
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| (225 ILCS 454/20-20)
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| (Section scheduled to be repealed on January 1, 2010)
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| Sec. 20-20. Disciplinary actions; causes. OBRE may refuse | 9 |
| to issue or renew a license, may place on probation, suspend,
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| or
revoke any
license, or may censure, reprimand, or otherwise | 11 |
| discipline or impose a civil
fine not to exceed
$25,000 upon | 12 |
| any licensee hereunder for any one or any combination of the
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| following causes:
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| (a) When the applicant or licensee has, by false or | 15 |
| fraudulent
representation,
obtained or sought to obtain a | 16 |
| license.
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| (b) When the applicant or licensee has been convicted of | 2 |
| any crime, an
essential element of which is dishonesty or fraud | 3 |
| or larceny, embezzlement,
or obtaining money, property, or | 4 |
| credit by false pretenses or by means of a
confidence
game, has | 5 |
| been convicted in this or another state of a crime that is a | 6 |
| felony
under
the laws of this State, or has been convicted of a | 7 |
| felony in a federal court.
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| (c) When the applicant or licensee has been adjudged to be | 9 |
| a person under
legal
disability or subject to involuntary | 10 |
| admission or to meet the standard for
judicial
admission as | 11 |
| provided in the Mental Health and Developmental Disabilities | 12 |
| Code.
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| (d) When the licensee performs or attempts to perform any | 14 |
| act as a broker
or
salesperson in a retail sales establishment | 15 |
| from an office, desk, or space that
is not
separated from the | 16 |
| main retail business by a separate and distinct area within
the
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| establishment.
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| (e) Discipline of a licensee by another state, the District | 19 |
| of Columbia,
a territory,
a foreign nation, a governmental | 20 |
| agency, or any other entity authorized to
impose
discipline if | 21 |
| at least one of the grounds for that discipline is the same as | 22 |
| or
the
equivalent of one of the grounds for discipline set | 23 |
| forth in this Act, in which
case the
only issue will be whether | 24 |
| one of the grounds for that discipline is the same
or
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| equivalent to one of the grounds for discipline under this Act.
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| (f) When the applicant or licensee has engaged in real |
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| estate activity
without a
license or after the licensee's | 2 |
| license was expired or while the license was
inoperative.
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| (g) When the applicant or licensee attempts to subvert or | 4 |
| cheat on the Real
Estate License Exam or continuing education | 5 |
| exam or aids and abets an applicant
to
subvert or cheat on the | 6 |
| Real Estate License Exam or continuing education exam
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| administered pursuant to this Act.
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| (h) When the licensee in performing, attempting to perform, | 9 |
| or pretending to
perform any act as a broker, salesperson, or | 10 |
| leasing agent or when the
licensee in
handling his or her own | 11 |
| property, whether held by deed, option, or otherwise,
is
found
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| guilty of:
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| (1) Making any substantial misrepresentation or | 14 |
| untruthful advertising.
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| (2) Making any false promises of a character likely to | 16 |
| influence,
persuade,
or induce.
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| (3) Pursuing a continued and flagrant course of | 18 |
| misrepresentation or the
making
of false promises through | 19 |
| licensees, employees, agents, advertising, or
otherwise.
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| (4) Any misleading or untruthful advertising, or using | 21 |
| any trade name or
insignia of membership in any real estate | 22 |
| organization of which the licensee is
not a member.
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| (5) Acting for more than one party in a transaction | 24 |
| without providing
written
notice to all parties for whom | 25 |
| the licensee acts.
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| (6) Representing or attempting to represent a broker |
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| other than the
sponsoring broker.
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| (7) Failure to account for or to remit any moneys or | 3 |
| documents coming into
his or her possession that belong to | 4 |
| others.
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| (8) Failure to maintain and deposit in a special | 6 |
| account, separate and
apart from
personal and other | 7 |
| business accounts, all escrow moneys belonging to others
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| entrusted to a licensee
while acting as a real estate | 9 |
| broker, escrow agent, or temporary custodian of
the funds | 10 |
| of others or
failure to maintain all escrow moneys on | 11 |
| deposit in the account until the
transactions are
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| consummated or terminated, except to the extent that the | 13 |
| moneys, or any part
thereof, shall be : | 14 |
| (A)
disbursed prior to the consummation or | 15 |
| termination (i) in accordance with (i)
the
written | 16 |
| direction of
the principals to the transaction or their | 17 |
| duly authorized agents, (ii) in accordance with
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| directions providing for the
release, payment, or | 19 |
| distribution of escrow moneys contained in any written
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| contract signed by the
principals to the transaction or | 21 |
| their duly authorized agents,
or (iii)
pursuant to an | 22 |
| order of a court of competent
jurisdiction ; or | 23 |
| (B) deemed abandoned and transferred to the Office | 24 |
| of the State Treasurer to be handled as unclaimed | 25 |
| property pursuant to the Uniform Disposition of | 26 |
| Unclaimed Property Act. Escrow moneys may be deemed |
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| abandoned under this subparagraph (B) only: (i) in the | 2 |
| absence of disbursement under subparagraph (A); (ii) | 3 |
| in the absence of notice of the filing of any claim in | 4 |
| a court of competent jurisdiction; and (iii) if 6 | 5 |
| months have elapsed after the receipt of a written | 6 |
| demand for the escrow moneys from one of the principals | 7 |
| to the transaction or the principal's duly authorized | 8 |
| agent .
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| The account
shall be noninterest
bearing, unless the | 10 |
| character of the deposit is such that payment of interest
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| thereon is otherwise
required by law or unless the | 12 |
| principals to the transaction specifically
require, in | 13 |
| writing, that the
deposit be placed in an interest bearing | 14 |
| account.
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| (9) Failure to make available to the real estate | 16 |
| enforcement personnel of
OBRE
during normal business hours | 17 |
| all escrow records and related documents
maintained in | 18 |
| connection
with the practice of real estate within 24 hours | 19 |
| of a request for those
documents by OBRE personnel.
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| (10) Failing to furnish copies upon request of all | 21 |
| documents relating to a
real
estate transaction to all | 22 |
| parties executing them.
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| (11) Failure of a sponsoring broker to timely provide | 24 |
| information, sponsor
cards,
or termination of licenses to | 25 |
| OBRE.
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| (12) Engaging in dishonorable, unethical, or |
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| unprofessional conduct of a
character
likely to deceive, | 2 |
| defraud, or harm the public.
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| (13) Commingling the money or property of others with | 4 |
| his or her own.
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| (14) Employing any person on a purely temporary or | 6 |
| single deal basis as a
means
of evading the law regarding | 7 |
| payment of commission to nonlicensees on some
contemplated
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| transactions.
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| (15) Permitting the use of his or her license as a | 10 |
| broker to enable a
salesperson or
unlicensed person to | 11 |
| operate a real estate business without actual
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| participation therein and control
thereof by the broker.
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| (16) Any other conduct, whether of the same or a | 14 |
| different character from
that
specified in this Section, | 15 |
| that constitutes dishonest dealing.
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| (17) Displaying a "for rent" or "for sale" sign on any | 17 |
| property without
the written
consent of an owner or his or | 18 |
| her duly authorized agent or advertising by any
means that | 19 |
| any property is
for sale or for rent without the written | 20 |
| consent of the owner or his or her
authorized agent.
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| (18) Failing to provide information requested by OBRE, | 22 |
| within 30 days of
the
request, either as the result of a | 23 |
| formal or informal complaint to OBRE or as a
result of a | 24 |
| random
audit conducted by OBRE, which would indicate a | 25 |
| violation of this Act.
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| (19) Advertising by means of a blind advertisement, |
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| except as otherwise
permitted in Section 10-30 of this Act.
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| (20) Offering guaranteed sales plans, as defined in | 3 |
| clause (A) of
this subdivision (20), except to
the extent | 4 |
| hereinafter set forth:
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| (A) A "guaranteed sales plan" is any real estate | 6 |
| purchase or sales plan
whereby a licensee enters into a | 7 |
| conditional or unconditional written contract
with a | 8 |
| seller by the
terms of which a licensee agrees to | 9 |
| purchase a property of the seller within a
specified | 10 |
| period of time
at a specific price in the event the | 11 |
| property is not sold in accordance with
the terms of a | 12 |
| listing
contract between the sponsoring broker and the | 13 |
| seller or on other terms
acceptable to the
seller.
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| (B) A licensee offering a guaranteed sales plan | 15 |
| shall provide the
details
and conditions of the plan in | 16 |
| writing to the party to whom the plan is
offered.
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| (C) A licensee offering a guaranteed sales plan | 18 |
| shall provide to the
party
to whom the plan is offered | 19 |
| evidence of sufficient financial resources to
satisfy | 20 |
| the commitment to
purchase undertaken by the broker in | 21 |
| the plan.
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| (D) Any licensee offering a guaranteed sales plan | 23 |
| shall undertake to
market the property of the seller | 24 |
| subject to the plan in the same manner in
which the | 25 |
| broker would
market any other property, unless the | 26 |
| agreement with the seller provides
otherwise.
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| (E) Any licensee who fails to perform on a | 2 |
| guaranteed sales plan in
strict accordance with its | 3 |
| terms shall be subject to all the penalties provided
in | 4 |
| this Act for
violations thereof and, in addition, shall | 5 |
| be subject to a civil fine payable
to the party injured | 6 |
| by the
default in an amount of up to $25,000.
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| (21) Influencing or attempting to influence, by any | 8 |
| words or acts, a
prospective
seller, purchaser, occupant, | 9 |
| landlord, or tenant of real estate, in connection
with | 10 |
| viewing, buying, or
leasing real estate, so as to promote | 11 |
| or tend to promote the continuance
or maintenance of
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| racially and religiously segregated housing or so as to | 13 |
| retard, obstruct, or
discourage racially
integrated | 14 |
| housing on or in any street, block, neighborhood, or | 15 |
| community.
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| (22) Engaging in any act that constitutes a violation | 17 |
| of any provision of
Article 3 of the Illinois Human Rights | 18 |
| Act, whether or not a complaint has
been filed with or
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| adjudicated by the Human Rights Commission.
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| (23) Inducing any party to a contract of sale or lease | 21 |
| or brokerage
agreement to
break the contract of sale or | 22 |
| lease or brokerage agreement for the purpose of
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| substituting, in lieu
thereof, a new contract for sale or | 24 |
| lease or brokerage agreement with a third
party.
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| (24) Negotiating a sale, exchange, or lease of real | 26 |
| estate directly with
any person
if the licensee knows that |
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| the person has a written exclusive brokerage
agreement with | 2 |
| another
broker, unless specifically authorized by that | 3 |
| broker.
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| (25) When a licensee is also an attorney, acting as the | 5 |
| attorney for
either the
buyer or the seller in the same | 6 |
| transaction in which the licensee is acting or
has acted as | 7 |
| a broker
or salesperson.
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| (26) Advertising or offering merchandise or services | 9 |
| as free if any
conditions or
obligations necessary for | 10 |
| receiving the merchandise or services are not
disclosed in | 11 |
| the same
advertisement or offer. These conditions or | 12 |
| obligations include without
limitation the
requirement | 13 |
| that the recipient attend a promotional activity or visit a | 14 |
| real
estate site. As used in this
subdivision (26), "free" | 15 |
| includes terms such as "award", "prize", "no charge",
"free | 16 |
| of charge",
"without charge", and similar words or phrases | 17 |
| that reasonably lead a person to
believe that he or she
may | 18 |
| receive or has been selected to receive something of value, | 19 |
| without any
conditions or
obligations on the part of the | 20 |
| recipient.
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| (27) Disregarding or violating any provision of the | 22 |
| Land Sales
Registration Act of 1989, the Illinois Real | 23 |
| Estate
Time-Share Act, or the published rules promulgated | 24 |
| by OBRE to enforce
those Acts.
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| (28) Violating the terms of a disciplinary order
issued | 26 |
| by OBRE.
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| (29) Paying compensation in violation of Article 10 of | 2 |
| this Act.
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| (30) Requiring a party to a transaction who is not a | 4 |
| client of the
licensee
to allow the licensee to retain a | 5 |
| portion of the escrow moneys for payment of
the licensee's | 6 |
| commission or expenses as a condition for release of the | 7 |
| escrow
moneys to that party.
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| (31) Disregarding or violating any provision of this | 9 |
| Act or the published
rules
promulgated by OBRE to enforce | 10 |
| this Act or aiding or abetting any individual,
partnership, | 11 |
| registered limited liability partnership, limited | 12 |
| liability
company, or corporation in
disregarding any | 13 |
| provision of this Act or the published rules promulgated by
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| OBRE
to enforce this Act.
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| (32) Failing to provide the minimum services required | 16 |
| by Section 15-75 of this Act when acting under an exclusive | 17 |
| brokerage agreement.
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| (Source: P.A. 93-957, eff. 8-19-04.)".
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