Full Text of HB5359 97th General Assembly
HB5359eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 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 5-70, 10-30, 20-20, 20-90, 20-95, and | 6 | | 20-115 and by adding Section 20-78 as follows:
| 7 | | (225 ILCS 454/5-70)
| 8 | | (Section scheduled to be repealed on January 1, 2020)
| 9 | | Sec. 5-70. Continuing education requirement; managing | 10 | | broker, broker, or salesperson.
| 11 | | (a) The requirements of this Section apply to all managing | 12 | | brokers, brokers, and salespersons.
| 13 | | (b) Except as otherwise
provided in this Section, each
| 14 | | person who applies for renewal of his or her license as a | 15 | | managing broker, real
estate broker, or real
estate salesperson | 16 | | must successfully complete 6 hours of real estate continuing | 17 | | education
courses approved by
the Advisory Council for each | 18 | | year of the pre-renewal period. Broker licensees must | 19 | | successfully complete a 6-hour broker management continuing | 20 | | education course approved by the Department for the pre-renewal | 21 | | period ending April 30, 2010. In addition, beginning with the | 22 | | pre-renewal period for managing broker licensees that begins | 23 | | after the effective date of this Act, those licensees renewing |
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| 1 | | or obtaining a managing broker's license must successfully | 2 | | complete a 12-hour broker management continuing education | 3 | | course approved by the Department each pre-renewal period. The | 4 | | broker management continuing education course must be | 5 | | completed in the classroom or by other interactive delivery | 6 | | method presenting instruction and real time discussion between | 7 | | the instructor and the students. Successful completion of the | 8 | | course shall include achieving a passing score as provided by | 9 | | rule on a test developed and administered in accordance with | 10 | | rules adopted by the Department. No
license may be renewed
| 11 | | except upon the successful completion of the required courses | 12 | | or their
equivalent or upon a waiver
of those requirements for | 13 | | good cause shown as determined by the Secretary
with the
| 14 | | recommendation of the Advisory Council.
The requirements of | 15 | | this Article are applicable to all managing brokers, brokers, | 16 | | and salespersons
except those brokers
and salespersons who, | 17 | | during the pre-renewal period:
| 18 | | (1) serve in the armed services of the United States;
| 19 | | (2) serve as an elected State or federal official;
| 20 | | (3) serve as a full-time employee of the Department; or
| 21 | | (4) are admitted to practice law pursuant to Illinois | 22 | | Supreme Court rule.
| 23 | | (c) A person licensed as a salesperson as of April 30, 2011 | 24 | | shall not be required to complete the 18 hours of continuing | 25 | | education for the pre-renewal period ending April 30, 2012 if | 26 | | that person takes the 30-hour post-licensing course to obtain a |
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| 1 | | broker's license. A person licensed as a broker as of April 30, | 2 | | 2011 shall not be required to complete the 12 hours of broker | 3 | | management continuing education for the pre-renewal period | 4 | | ending April 30, 2012, unless that person passes the | 5 | | proficiency exam provided for in Section 5-47 of this Act to | 6 | | qualify for a managing broker's license. | 7 | | (d) A
person receiving an initial license
during the 90 | 8 | | days before the renewal date shall not be
required to complete | 9 | | the continuing
education courses provided for in subsection (b) | 10 | | of this
Section as a condition of initial license renewal.
| 11 | | (e) The continuing education requirement for salespersons, | 12 | | brokers and managing brokers shall
consist of a core
curriculum | 13 | | and an elective curriculum, to be established by the Advisory
| 14 | | Council. In meeting the
continuing education requirements of | 15 | | this Act, at least 3 hours per year or
their equivalent, 6 | 16 | | hours for each two-year pre-renewal period, shall
be required | 17 | | to be completed in the core curriculum.
In establishing the | 18 | | core curriculum, the Advisory Council shall consider
subjects | 19 | | that will
educate licensees on recent changes in applicable | 20 | | laws and new laws and refresh
the licensee on areas
of the | 21 | | license law and the Department policy that the Advisory Council | 22 | | deems appropriate,
and any other
areas that the Advisory | 23 | | Council deems timely and applicable in order to prevent
| 24 | | violations of this Act
and to protect the public.
In | 25 | | establishing the elective curriculum, the Advisory Council | 26 | | shall consider
subjects that cover
the various aspects of the |
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| 1 | | practice of real estate that are covered under the
scope of | 2 | | this Act.
However, the elective curriculum shall not include | 3 | | any offerings referred to in
Section 5-85 of this Act.
| 4 | | (f) The subject areas of continuing education courses | 5 | | approved by the
Advisory Council may
include without limitation | 6 | | the following:
| 7 | | (1) license law and escrow;
| 8 | | (2) antitrust;
| 9 | | (3) fair housing;
| 10 | | (4) agency;
| 11 | | (5) appraisal;
| 12 | | (6) property management;
| 13 | | (7) residential brokerage;
| 14 | | (8) farm property management;
| 15 | | (9) rights and duties of sellers, buyers, and brokers;
| 16 | | (10) commercial brokerage and leasing; and
| 17 | | (11) real estate financing.
| 18 | | (g) In lieu of credit for those courses listed in | 19 | | subsection (f) of this
Section, credit may be
earned for | 20 | | serving as a licensed instructor in an approved course of | 21 | | continuing
education. The
amount of credit earned for teaching | 22 | | a course shall be the amount of continuing
education credit for
| 23 | | which the course is approved for licensees taking the course.
| 24 | | (h) Credit hours may be earned for self-study programs | 25 | | approved by the
Advisory Council.
| 26 | | (i) A broker or salesperson may earn credit for a specific |
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| 1 | | continuing
education course only
once during the prerenewal | 2 | | period.
| 3 | | (j) No more than 6 hours of continuing education credit may | 4 | | be taken or earned in one
calendar day.
| 5 | | (k) To promote the offering of a uniform and consistent | 6 | | course content, the Department may provide for the development | 7 | | of a single broker management course to be offered by all | 8 | | continuing education providers who choose to offer the broker | 9 | | management continuing education course. The Department may | 10 | | contract for the development of the 12-hour 6-hour broker | 11 | | management continuing education course with an outside vendor | 12 | | or consultant and, if the course is developed in this manner, | 13 | | the Department or the outside consultant shall license the use | 14 | | of that course to all approved continuing education providers | 15 | | who wish to provide the course.
| 16 | | (l) Except as specifically provided in this Act, continuing | 17 | | education credit hours may not be earned for completion of pre | 18 | | or post-license courses. The approved 30-hour post-license | 19 | | course for broker licensees shall satisfy the continuing | 20 | | education requirement for the pre-renewal period in which the | 21 | | course is taken. The approved 45-hour brokerage administration | 22 | | and management course shall satisfy the 12-hour broker | 23 | | management continuing education requirement for the | 24 | | pre-renewal period in which the course is taken. | 25 | | (Source: P.A. 96-856, eff. 12-31-09.)
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| 1 | | (225 ILCS 454/10-30)
| 2 | | (Section scheduled to be repealed on January 1, 2020)
| 3 | | Sec. 10-30. Advertising.
| 4 | | (a) No advertising, whether in print, via the Internet, or | 5 | | through any other media, shall be fraudulent, deceptive, | 6 | | inherently misleading, or
proven to be
misleading in practice. | 7 | | Advertising shall be considered misleading or untruthful if,
| 8 | | when taken as a whole,
there is a distinct and reasonable | 9 | | possibility that it will be misunderstood or
will deceive the
| 10 | | ordinary purchaser, seller, lessee, lessor, or owner. | 11 | | Advertising shall
contain all information
necessary to | 12 | | communicate the information contained therein to the public in | 13 | | an accurate,
direct, and readily
comprehensible manner.
| 14 | | (b) No blind advertisements may be used
by any licensee, in | 15 | | any media, except as provided for in this Section.
| 16 | | (c) A licensee shall disclose, in writing, to all parties | 17 | | in a transaction
his or her status as a
licensee and any and | 18 | | all interest the licensee has or may have in the real
estate | 19 | | constituting the
subject matter thereof, directly or | 20 | | indirectly, according to the following
guidelines:
| 21 | | (1) On broker yard signs or in broker advertisements, | 22 | | no disclosure of
ownership is
necessary. However, the | 23 | | ownership shall be indicated on any property data
form and | 24 | | disclosed to
persons responding to any advertisement or any | 25 | | sign. The term "broker owned"
or "agent owned"
is | 26 | | sufficient disclosure.
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| 1 | | (2) A sponsored or inoperative licensee selling or | 2 | | leasing property, owned
solely by the
sponsored or | 3 | | inoperative licensee, without utilizing brokerage services | 4 | | of
their sponsoring broker or
any other licensee, may | 5 | | advertise "By Owner". For purposes of this Section,
| 6 | | property is "solely
owned" by a sponsored or inoperative | 7 | | licensee if he or she (i) has a
100% ownership interest
| 8 | | alone, (ii) has ownership as a joint tenant or tenant by | 9 | | the entirety, or
(iii) holds a
100% beneficial
interest in | 10 | | a land trust. Sponsored or inoperative licensees selling or
| 11 | | leasing "By Owner" shall
comply with the following if | 12 | | advertising by owner:
| 13 | | (A) On "By Owner" yard signs, the sponsored or | 14 | | inoperative licensee
shall
indicate "broker owned" or | 15 | | "agent owned." "By Owner" advertisements used in
any | 16 | | medium of
advertising shall include the term "broker | 17 | | owned" or "agent owned."
| 18 | | (B) If a sponsored or inoperative licensee runs | 19 | | advertisements, for the
purpose of
purchasing or | 20 | | leasing real estate, he or she shall disclose in the
| 21 | | advertisements his or her status as a
licensee.
| 22 | | (C) A sponsored or inoperative licensee shall not | 23 | | use the sponsoring
broker's name or
the sponsoring | 24 | | broker's company name in connection with the sale, | 25 | | lease, or
advertisement of the
property nor utilize the | 26 | | sponsoring broker's or company's name in connection
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| 1 | | with the sale, lease, or
advertising of the property in | 2 | | a manner likely to create confusion among the
public as | 3 | | to whether or
not the services of a real estate company | 4 | | are being utilized or whether or not
a real estate | 5 | | company
has an ownership interest in the property.
| 6 | | (d) A sponsored licensee may not advertise under his or her | 7 | | own name.
Advertising in any media shall be
under the direct | 8 | | supervision of the sponsoring or managing broker and in the
| 9 | | sponsoring broker's
business name, which in the case of a | 10 | | franchise shall include the franchise
affiliation as well as | 11 | | the
name of the individual firm.
This provision does not apply | 12 | | under the following circumstances:
| 13 | | (1) When a licensee enters into a brokerage agreement | 14 | | relating to his or
her own
real estate, or real estate in | 15 | | which he or she has an ownership interest, with
another | 16 | | licensed broker; or
| 17 | | (2) When a licensee is selling or leasing his or her | 18 | | own real estate or
buying or
leasing real estate for | 19 | | himself or herself, after providing the appropriate
| 20 | | written disclosure of his or her ownership interest as | 21 | | required in paragraph
(2) of subsection
(c) of this | 22 | | Section.
| 23 | | (e) No licensee shall list his or her name under the | 24 | | heading or title "Real
Estate" in the
telephone directory or | 25 | | otherwise advertise in his or her own name to the
general | 26 | | public through any
medium of advertising as being in the real |
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| 1 | | estate business without listing his
or her sponsoring
broker's | 2 | | business name.
| 3 | | (f) The sponsoring broker's business name and the name of | 4 | | the licensee must
appear in all
advertisements, including | 5 | | business cards. Nothing in this Act shall be
construed to | 6 | | require specific
print size as between the broker's business | 7 | | name and the name of the licensee.
| 8 | | (g) Those individuals licensed as a managing broker and | 9 | | designated with the Department as a managing broker by their | 10 | | sponsoring broker shall identify themselves to the public in | 11 | | advertising , except on "For Sale" or similar signs, as a | 12 | | managing broker. No other individuals holding a managing | 13 | | broker's license may hold themselves out to the public or other | 14 | | licensees as a managing broker. | 15 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 16 | | (225 ILCS 454/20-20)
| 17 | | (Section scheduled to be repealed on January 1, 2020)
| 18 | | Sec. 20-20. Grounds for discipline. | 19 | | (a) The Department may refuse to issue or renew a license, | 20 | | may place on probation, suspend,
or
revoke any
license, | 21 | | reprimand, or take any other disciplinary or non-disciplinary | 22 | | action as the Department may deem proper and or impose a
fine | 23 | | not to exceed
$25,000 upon any licensee or applicant under this | 24 | | Act or any person who holds himself or herself out as an | 25 | | applicant or licensee or against a licensee in handling his or |
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| 1 | | her own property, whether held by deed, option, or otherwise, | 2 | | for any one or any combination of the
following causes:
| 3 | | (1) Fraud or misrepresentation in applying for, or | 4 | | procuring, a license under this Act or in connection with | 5 | | applying for renewal of a license under this Act.
| 6 | | (2) The entry of an administrative sanction, | 7 | | conviction of or plea of guilty or plea of nolo contendere | 8 | | in this State or any other jurisdiction to: (A) conviction | 9 | | of, plea of guilty or plea of nolo contendre to a felony or | 10 | | (B) a misdemeanor or a finding by an administrative body , | 11 | | an
essential element of which is dishonesty or fraud or | 12 | | larceny, embezzlement,
or obtaining money, property, or | 13 | | credit by false pretenses or by means of a
confidence
game , | 14 | | in this State, or any other jurisdiction .
| 15 | | (3) Inability to practice the profession with | 16 | | reasonable judgment, skill, or safety as a result of a | 17 | | 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 | | (4) Practice under this Act as a licensee in a retail | 21 | | sales establishment from an office, desk, or space that
is | 22 | | not
separated from the main retail business by a separate | 23 | | and distinct area within
the
establishment.
| 24 | | (5) Having been disciplined by another state, the | 25 | | District of Columbia, a territory, a foreign nation, a | 26 | | governmental agency, or any other entity authorized to |
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| 1 | | impose discipline Disciplinary action of another state or | 2 | | jurisdiction against the license or other authorization to | 3 | | practice as a managing broker, broker, salesperson, or | 4 | | leasing agent if at least one of the grounds for that | 5 | | discipline is the same as or
the
equivalent of one of the | 6 | | grounds for which a licensee may be disciplined under | 7 | | discipline set forth in this Act. A certified copy of the | 8 | | record of the action by the other state or jurisdiction | 9 | | shall be prima facie evidence thereof.
| 10 | | (6) Engaging in the practice of real estate brokerage
| 11 | | without a
license or after the licensee's license was | 12 | | expired or while the license was
inoperative.
| 13 | | (7) Cheating on or attempting to subvert the Real
| 14 | | Estate License Exam or continuing education exam. | 15 | | (8) Aiding or abetting an applicant
to
subvert or cheat | 16 | | on the Real Estate License Exam or continuing education | 17 | | exam
administered pursuant to this Act.
| 18 | | (9) Advertising that is inaccurate, misleading, or | 19 | | contrary to the provisions of the Act.
| 20 | | (10) Making any substantial misrepresentation or | 21 | | untruthful advertising.
| 22 | | (11) Making any false promises of a character likely to | 23 | | influence,
persuade,
or induce.
| 24 | | (12) Pursuing a continued and flagrant course of | 25 | | misrepresentation or the
making
of false promises through | 26 | | licensees, employees, agents, advertising, or
otherwise.
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| 1 | | (13) Any misleading or untruthful advertising, or | 2 | | using any trade name or
insignia of membership in any real | 3 | | estate organization of which the licensee is
not a member.
| 4 | | (14) Acting for more than one party in a transaction | 5 | | without providing
written
notice to all parties for whom | 6 | | the licensee acts.
| 7 | | (15) Representing or attempting to represent a broker | 8 | | other than the
sponsoring broker.
| 9 | | (16) Failure to account for or to remit any moneys or | 10 | | documents coming into
his or her possession that belong to | 11 | | others.
| 12 | | (17) Failure to maintain and deposit in a special | 13 | | account, separate and
apart from
personal and other | 14 | | business accounts, all escrow moneys belonging to others
| 15 | | entrusted to a licensee
while acting as a real estate | 16 | | broker, escrow agent, or temporary custodian of
the funds | 17 | | of others or
failure to maintain all escrow moneys on | 18 | | deposit in the account until the
transactions are
| 19 | | consummated or terminated, except to the extent that the | 20 | | moneys, or any part
thereof, shall be: | 21 | | (A)
disbursed prior to the consummation or | 22 | | termination (i) in accordance with
the
written | 23 | | direction of
the principals to the transaction or their | 24 | | duly authorized agents, (ii) in accordance with
| 25 | | directions providing for the
release, payment, or | 26 | | distribution of escrow moneys contained in any written
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| 1 | | contract signed by the
principals to the transaction or | 2 | | their duly authorized agents,
or (iii)
pursuant to an | 3 | | order of a court of competent
jurisdiction; or | 4 | | (B) deemed abandoned and transferred to the Office | 5 | | of the State Treasurer to be handled as unclaimed | 6 | | property pursuant to the Uniform Disposition of | 7 | | Unclaimed Property Act. Escrow moneys may be deemed | 8 | | abandoned under this subparagraph (B) only: (i) in the | 9 | | absence of disbursement under subparagraph (A); (ii) | 10 | | in the absence of notice of the filing of any claim in | 11 | | a court of competent jurisdiction; and (iii) if 6 | 12 | | months have elapsed after the receipt of a written | 13 | | demand for the escrow moneys from one of the principals | 14 | | to the transaction or the principal's duly authorized | 15 | | agent.
| 16 | | The account
shall be noninterest
bearing, unless the | 17 | | character of the deposit is such that payment of interest
| 18 | | thereon is otherwise
required by law or unless the | 19 | | principals to the transaction specifically
require, in | 20 | | writing, that the
deposit be placed in an interest bearing | 21 | | account.
| 22 | | (18) Failure to make available to the Department all | 23 | | escrow records and related documents
maintained in | 24 | | connection
with the practice of real estate within 24 hours | 25 | | of a request for those
documents by Department personnel.
| 26 | | (19) Failing to furnish copies upon request of |
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| 1 | | documents relating to a
real
estate transaction to a party | 2 | | who has executed that document.
| 3 | | (20) Failure of a sponsoring broker to timely provide | 4 | | information, sponsor
cards,
or termination of licenses to | 5 | | the Department.
| 6 | | (21) Engaging in dishonorable, unethical, or | 7 | | unprofessional conduct of a
character
likely to deceive, | 8 | | defraud, or harm the public.
| 9 | | (22) Commingling the money or property of others with | 10 | | his or her own money or property.
| 11 | | (23) Employing any person on a purely temporary or | 12 | | single deal basis as a
means
of evading the law regarding | 13 | | payment of commission to nonlicensees on some
contemplated
| 14 | | transactions.
| 15 | | (24) Permitting the use of his or her license as a | 16 | | broker to enable a
salesperson or
unlicensed person to | 17 | | operate a real estate business without actual
| 18 | | participation therein and control
thereof by the broker.
| 19 | | (25) Any other conduct, whether of the same or a | 20 | | different character from
that
specified in this Section, | 21 | | that constitutes dishonest dealing.
| 22 | | (26) Displaying a "for rent" or "for sale" sign on any | 23 | | property without
the written
consent of an owner or his or | 24 | | her duly authorized agent or advertising by any
means that | 25 | | any property is
for sale or for rent without the written | 26 | | consent of the owner or his or her
authorized agent.
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| 1 | | (27) Failing to provide information requested by the | 2 | | Department, or otherwise respond to that request, within 30 | 3 | | days of
the
request.
| 4 | | (28) Advertising by means of a blind advertisement, | 5 | | except as otherwise
permitted in Section 10-30 of this Act.
| 6 | | (29) Offering guaranteed sales plans, as defined in | 7 | | clause (A) of
this subdivision (29), except to
the extent | 8 | | hereinafter set forth:
| 9 | | (A) A "guaranteed sales plan" is any real estate | 10 | | purchase or sales plan
whereby a licensee enters into a | 11 | | conditional or unconditional written contract
with a | 12 | | seller, prior to entering into a brokerage agreement | 13 | | with the seller, by the
terms of which a licensee | 14 | | agrees to purchase a property of the seller within a
| 15 | | specified period of time
at a specific price in the | 16 | | event the property is not sold in accordance with
the | 17 | | terms of a brokerage agreement to be entered into | 18 | | between the sponsoring broker and the seller.
| 19 | | (B) A licensee offering a guaranteed sales plan | 20 | | shall provide the
details
and conditions of the plan in | 21 | | writing to the party to whom the plan is
offered.
| 22 | | (C) A licensee offering a guaranteed sales plan | 23 | | shall provide to the
party
to whom the plan is offered | 24 | | evidence of sufficient financial resources to
satisfy | 25 | | the commitment to
purchase undertaken by the broker in | 26 | | the plan.
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| 1 | | (D) Any licensee offering a guaranteed sales plan | 2 | | shall undertake to
market the property of the seller | 3 | | subject to the plan in the same manner in
which the | 4 | | broker would
market any other property, unless the | 5 | | agreement with the seller provides
otherwise.
| 6 | | (E) The licensee cannot purchase seller's property | 7 | | until the brokerage agreement has ended according to | 8 | | its terms or is otherwise terminated. | 9 | | (F) Any licensee who fails to perform on a | 10 | | guaranteed sales plan in
strict accordance with its | 11 | | terms shall be subject to all the penalties provided
in | 12 | | this Act for
violations thereof and, in addition, shall | 13 | | be subject to a civil fine payable
to the party injured | 14 | | by the
default in an amount of up to $25,000.
| 15 | | (30) Influencing or attempting to influence, by any | 16 | | words or acts, a
prospective
seller, purchaser, occupant, | 17 | | landlord, or tenant of real estate, in connection
with | 18 | | viewing, buying, or
leasing real estate, so as to promote | 19 | | or tend to promote the continuance
or maintenance of
| 20 | | racially and religiously segregated housing or so as to | 21 | | retard, obstruct, or
discourage racially
integrated | 22 | | housing on or in any street, block, neighborhood, or | 23 | | community.
| 24 | | (31) Engaging in any act that constitutes a violation | 25 | | of any provision of
Article 3 of the Illinois Human Rights | 26 | | Act, whether or not a complaint has
been filed with or
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| 1 | | adjudicated by the Human Rights Commission.
| 2 | | (32) Inducing any party to a contract of sale or lease | 3 | | or brokerage
agreement to
break the contract of sale or | 4 | | lease or brokerage agreement for the purpose of
| 5 | | substituting, in lieu
thereof, a new contract for sale or | 6 | | lease or brokerage agreement with a third
party.
| 7 | | (33) Negotiating a sale, exchange, or lease of real | 8 | | estate directly with
any person
if the licensee knows that | 9 | | the person has an exclusive brokerage
agreement with | 10 | | another
broker, unless specifically authorized by that | 11 | | broker.
| 12 | | (34) When a licensee is also an attorney, acting as the | 13 | | attorney for
either the
buyer or the seller in the same | 14 | | transaction in which the licensee is acting or
has acted as | 15 | | a broker
or salesperson.
| 16 | | (35) Advertising or offering merchandise or services | 17 | | as free if any
conditions or
obligations necessary for | 18 | | receiving the merchandise or services are not
disclosed in | 19 | | the same
advertisement or offer. These conditions or | 20 | | obligations include without
limitation the
requirement | 21 | | that the recipient attend a promotional activity or visit a | 22 | | real
estate site. As used in this
subdivision (35), "free" | 23 | | includes terms such as "award", "prize", "no charge",
"free | 24 | | of charge",
"without charge", and similar words or phrases | 25 | | that reasonably lead a person to
believe that he or she
may | 26 | | receive or has been selected to receive something of value, |
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| 1 | | without any
conditions or
obligations on the part of the | 2 | | recipient.
| 3 | | (36) Disregarding or violating any provision of the | 4 | | Land Sales
Registration Act of 1989, the Illinois Real | 5 | | Estate
Time-Share Act, or the published rules promulgated | 6 | | by the Department to enforce
those Acts.
| 7 | | (37) Violating the terms of a disciplinary order
issued | 8 | | by the Department.
| 9 | | (38) Paying or failing to disclose compensation in | 10 | | violation of Article 10 of this Act.
| 11 | | (39) Requiring a party to a transaction who is not a | 12 | | client of the
licensee
to allow the licensee to retain a | 13 | | portion of the escrow moneys for payment of
the licensee's | 14 | | commission or expenses as a condition for release of the | 15 | | escrow
moneys to that party.
| 16 | | (40) Disregarding or violating any provision of this | 17 | | Act or the published
rules
promulgated by the Department to | 18 | | enforce this Act or aiding or abetting any individual,
| 19 | | partnership, registered limited liability partnership, | 20 | | limited liability
company, or corporation in
disregarding | 21 | | any provision of this Act or the published rules | 22 | | promulgated by the Department
to enforce this Act.
| 23 | | (41) Failing to provide the minimum services required | 24 | | by Section 15-75 of this Act when acting under an exclusive | 25 | | brokerage agreement.
| 26 | | (42) Habitual or excessive use or addiction to alcohol, |
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| 1 | | narcotics, stimulants, or any other chemical agent or drug | 2 | | that results in a managing broker, broker, salesperson, or | 3 | | leasing agent's inability to practice with reasonable | 4 | | skill or safety. | 5 | | (b) The Department may refuse to issue or renew or may | 6 | | suspend the license of any person who fails to file a return, | 7 | | pay the tax, penalty or interest shown in a filed return, or | 8 | | pay any final assessment of tax, penalty, or interest, as | 9 | | required by any tax Act administered by the Department of | 10 | | Revenue, until such time as the requirements of that tax Act | 11 | | are satisfied in accordance with subsection (g) of Section | 12 | | 2105-15 of the Civil Administrative Code of Illinois. | 13 | | (c) The Department shall deny a license or renewal | 14 | | authorized by this Act to a person who has defaulted on an | 15 | | educational loan or scholarship provided or guaranteed by the | 16 | | Illinois Student Assistance Commission or any governmental | 17 | | agency of this State in accordance with item (5) of subsection | 18 | | (g) of Section 2105-15 of the Civil Administrative Code of | 19 | | Illinois. | 20 | | (d) In cases where the Department of Healthcare and Family | 21 | | Services (formerly Department of Public Aid) has previously | 22 | | determined that a licensee or a potential licensee is more than | 23 | | 30 days delinquent in the payment of child support and has | 24 | | subsequently certified the delinquency to the Department may | 25 | | refuse to issue or renew or may revoke or suspend that person's | 26 | | license or may take other disciplinary action against that |
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| 1 | | person based solely upon the certification of delinquency made | 2 | | by the Department of Healthcare and Family Services in | 3 | | accordance with item (5) of subsection (g) of Section 2105-15 | 4 | | of the Civil Administrative Code of Illinois. | 5 | | (e) In enforcing this Section, the Department or Board upon | 6 | | a showing of a possible violation may compel an individual | 7 | | licensed to practice under this Act, or who has applied for | 8 | | licensure under this Act, to submit to a mental or physical | 9 | | examination, or both, as required by and at the expense of the | 10 | | Department. The Department or Board may order the examining | 11 | | physician to present testimony concerning the mental or | 12 | | physical examination of the licensee or applicant. No | 13 | | information shall be excluded by reason of any common law or | 14 | | statutory privilege relating to communications between the | 15 | | licensee or applicant and the examining physician. The | 16 | | examining physicians shall be specifically designated by the | 17 | | Board or Department. The individual to be examined may have, at | 18 | | his or her own expense, another physician of his or her choice | 19 | | present during all aspects of this examination. Failure of an | 20 | | individual to submit to a mental or physical examination, when | 21 | | directed, shall be grounds for suspension of his or her license | 22 | | until the individual submits to the examination if the | 23 | | Department finds, after notice and hearing, that the refusal to | 24 | | submit to the examination was without reasonable cause. | 25 | | If the Department or Board finds an individual unable to | 26 | | practice because of the reasons set forth in this Section, the |
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| 1 | | Department or Board may require that individual to submit to | 2 | | care, counseling, or treatment by physicians approved or | 3 | | designated by the Department or Board, as a condition, term, or | 4 | | restriction for continued, reinstated, or renewed licensure to | 5 | | practice; or, in lieu of care, counseling, or treatment, the | 6 | | Department may file, or the Board may recommend to the | 7 | | Department to file, a complaint to immediately suspend, revoke, | 8 | | or otherwise discipline the license of the individual. An | 9 | | individual whose license was granted, continued, reinstated, | 10 | | renewed, disciplined or supervised subject to such terms, | 11 | | conditions, or restrictions, and who fails to comply with such | 12 | | terms, conditions, or restrictions, shall be referred to the | 13 | | Secretary for a determination as to whether the individual | 14 | | shall have his or her license suspended immediately, pending a | 15 | | hearing by the Department. | 16 | | In instances in which the Secretary immediately suspends a | 17 | | person's license under this Section, a hearing on that person's | 18 | | license must be convened by the Department within 30 days after | 19 | | the suspension and completed without appreciable delay. The | 20 | | Department and Board shall have the authority to review the | 21 | | subject individual's record of treatment and counseling | 22 | | regarding the impairment to the extent permitted by applicable | 23 | | federal statutes and regulations safeguarding the | 24 | | confidentiality of medical records. | 25 | | An individual licensed under this Act and affected under | 26 | | this Section shall be afforded an opportunity to demonstrate to |
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| 1 | | the Department or Board that he or she can resume practice in | 2 | | compliance with acceptable and prevailing standards under the | 3 | | provisions of his or her license. | 4 | | (Source: P.A. 95-851, eff. 1-1-09; 96-856, eff. 12-31-09; | 5 | | revised 11-18-11.)
| 6 | | (225 ILCS 454/20-78 new) | 7 | | Sec. 20-78. Confidentiality. All information collected by | 8 | | the Department in the course of an examination or investigation | 9 | | of a licensee or applicant, including, but not limited to, any | 10 | | complaint against a licensee filed with the Department and | 11 | | information collected to investigate any such complaint, shall | 12 | | be maintained for the confidential use of the Department and | 13 | | shall not be disclosed. The Department may not disclose the | 14 | | information to anyone other than law enforcement officials, | 15 | | regulatory agencies that have an appropriate regulatory | 16 | | interest as determined by the Secretary, or a party presenting | 17 | | a lawful subpoena to the Department. Information and documents | 18 | | disclosed to a federal, State, county, or local law enforcement | 19 | | agency shall not be disclosed by the agency for any purpose to | 20 | | any other agency or person. A formal complaint filed against a | 21 | | licensee by the Department or any order issued by the | 22 | | Department against a licensee or applicant shall be a public | 23 | | record, except as otherwise prohibited by law.
| 24 | | (225 ILCS 454/20-90)
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| 1 | | (Section scheduled to be repealed on January 1, 2020)
| 2 | | Sec. 20-90. Collection from Real Estate Recovery Fund; | 3 | | procedure.
| 4 | | (a) No action for a judgment that subsequently results in | 5 | | an order for
collection from the
Real Estate Recovery Fund | 6 | | shall be started later than 2 years after the date on
which the | 7 | | aggrieved
person knew, or through the use of reasonable | 8 | | diligence should have known, of
the acts or
omissions giving | 9 | | rise to a right of recovery from the Real Estate Recovery
Fund.
| 10 | | (b) When any aggrieved person commences action for a | 11 | | judgment that may
result in
collection from the Real Estate | 12 | | Recovery Fund, the aggrieved person must name
as parties
| 13 | | defendant to that action any and all individual licensees or | 14 | | their
employees who allegedly committed or are responsible for | 15 | | acts or omissions
giving rise to a right
of recovery from the | 16 | | Real Estate Recovery Fund. Failure to name as parties
defendant | 17 | | such
licensees or their employees shall preclude recovery
from | 18 | | the Real Estate
Recovery Fund of any portion of any judgment | 19 | | received in such an action. The
aggrieved party
may also name | 20 | | as additional parties defendant any corporations, limited
| 21 | | liability companies,
partnerships, registered limited | 22 | | liability partnership, or other business
associations that may | 23 | | be
responsible for acts giving rise to a right of recovery from | 24 | | the Real Estate
Recovery Fund.
| 25 | | (c) (Blank). When any aggrieved person commences action for | 26 | | a judgment that may
result in
collection from the Real Estate |
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| 1 | | Recovery Fund, the aggrieved person must notify the Department
| 2 | | in writing
to this effect within 7 days of the commencement of | 3 | | the action.
Failure to so notify the Department
shall preclude | 4 | | recovery from the Real Estate Recovery Fund of any portion
of | 5 | | any judgment
received in such an action. After receiving notice | 6 | | of the commencement of such
an action, the Department
upon | 7 | | timely application shall be permitted to intervene as a party | 8 | | defendant to
that action.
| 9 | | (d) When any aggrieved person commences action for a | 10 | | judgment that may
result in
collection from the Real Estate | 11 | | Recovery Fund, and the aggrieved person is unable to obtain | 12 | | legal
and proper service upon the defendant under the | 13 | | provisions of Illinois law concerning service of
process in | 14 | | civil actions, the aggrieved person may petition the court | 15 | | where the action to obtain
judgment was begun for an order to | 16 | | allow service of legal process on the Secretary. Service of
| 17 | | process on the Secretary shall be taken and held in that court | 18 | | to be as valid and binding as if
due service had been made upon | 19 | | the defendant. In case any process mentioned in this Section is
| 20 | | served upon the Secretary, the Secretary shall forward a copy | 21 | | of the
process by certified
mail to the licensee's last address | 22 | | on record with the Department. Any judgment obtained
after | 23 | | service of
process on the Secretary under this Act shall apply | 24 | | to and be enforceable
against the Real
Estate Recovery Fund | 25 | | only. The Department OBRE may intervene in and defend any such | 26 | | action.
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| 1 | | (e) When an aggrieved party commences action for a judgment | 2 | | that may result
in collection
from the Real Estate Recovery | 3 | | Fund, and the court before which that action is
commenced | 4 | | enters
judgment by default against the defendant and in favor | 5 | | of the aggrieved party,
the aggrieved party shall give written | 6 | | notice to the Department within 30 days after the entry of such | 7 | | default judgment and provide the Department with copies of the | 8 | | pleadings upon which the default judgment was entered and of | 9 | | the default judgment order. The the court shall upon
motion of | 10 | | the Department set aside that judgment by default. After such a | 11 | | judgment by
default has been set
aside, the Department shall | 12 | | appear as party defendant to that action, and thereafter the
| 13 | | court shall require
proof of the allegations in the pleadings | 14 | | upon which relief is sought.
| 15 | | (f) The aggrieved person shall give written notice to the | 16 | | Department within 30 days of
the entry of any
judgment that may | 17 | | result in collection from the Real Estate Recovery Fund and | 18 | | provide the Department with copies of the pleadings upon which | 19 | | the judgment was entered and of the judgment order. Notice | 20 | | provided pursuant to subsection (e) of this Section shall | 21 | | satisfy this requirement. Within 60 days after the Department | 22 | | receives such written notice of the judgment or the court has | 23 | | re-entered judgment pursuant to the procedures under | 24 | | subsection (e) of this Section, the Department shall file a | 25 | | written response with the court stating that the Department has | 26 | | no objection to a claim on the Real Estate Recovery Fund by the |
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| 1 | | aggrieved party or that the Department objects to such claim | 2 | | stating the basis for such objection. The Department, after | 3 | | receiving the written notice provided for in this subsection, | 4 | | shall be entitled to appear before the court and exercise the | 5 | | same rights in the same manner as any party . The
aggrieved | 6 | | person shall provide the Department OBRE within 20 days prior | 7 | | written notice of all
supplementary
proceedings so as to allow | 8 | | the Department to participate in all efforts to collect on the
| 9 | | judgment .
| 10 | | (g) After the Department has filed its response as required | 11 | | in subsection (f) of this Section and any supplementary | 12 | | proceedings have concluded, When any aggrieved person recovers | 13 | | a valid judgment in any court of
competent
jurisdiction against | 14 | | any licensee or an unlicensed employee of any broker, upon
the | 15 | | grounds of
fraud, misrepresentation, discrimination, or | 16 | | deceit, the aggrieved person may ,
upon the termination
of all | 17 | | proceedings, including review and appeals in connection with | 18 | | the
judgment, file a verified
claim in the court in which the | 19 | | judgment was entered and, upon 30 days' written
notice to the | 20 | | Department,
and to the person against whom the judgment was | 21 | | obtained, may apply to the
court for an order
directing payment | 22 | | out of the Real Estate Recovery Fund of the amount unpaid
upon | 23 | | the judgment,
not including interest on the judgment, and | 24 | | subject to the limitations stated
in Section 20-85 of this
Act. | 25 | | The aggrieved person must set out in that verified claim and at | 26 | | an
evidentiary hearing to be
held by the court upon the |
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| 1 | | application that the claim meets all requirements of Section | 2 | | 20-85 and this Section to be eligible for payment from the Real | 3 | | Estate Recovery Fund and the aggrieved party shall be required | 4 | | to
show that the
aggrieved person:
| 5 | | (1) Is not a spouse of the debtor or the personal | 6 | | representative of such
spouse.
| 7 | | (2) Has complied with all the requirements of this | 8 | | Section.
| 9 | | (3) Has obtained a judgment stating the amount thereof | 10 | | and the amount
owing thereon,
not including interest | 11 | | thereon, at the date of the application.
| 12 | | (4) Has made all reasonable searches and inquiries to | 13 | | ascertain whether
the judgment
debtor is possessed of real | 14 | | or personal property or other assets, liable to be
sold or | 15 | | applied in
satisfaction of the judgment.
| 16 | | (5) By such search has discovered no personal or real | 17 | | property or other
assets liable to
be sold or applied, or | 18 | | has discovered certain of them, describing them as owned
by | 19 | | the judgment
debtor and liable to be so applied and has | 20 | | taken all necessary action and
proceedings for the
| 21 | | realization thereof, and the amount thereby realized was | 22 | | insufficient to
satisfy the judgment, stating
the amount so | 23 | | realized and the balance remaining due on the judgment | 24 | | after
application of the
amount realized.
| 25 | | (6) Has diligently pursued all remedies against all the | 26 | | judgment debtors
and
all other
persons liable to the |
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| 1 | | aggrieved person in the transaction for which recovery is
| 2 | | sought from the Real
Estate Recovery Fund,
including the | 3 | | filing of an adversary action to have the debts declared
| 4 | | non-dischargeable in any bankruptcy petition matter filed | 5 | | by any judgment
debtor or person liable to the aggrieved | 6 | | person.
| 7 | | The aggrieved person shall also be required to prove the | 8 | | amount of attorney's
fees sought to be
recovered and the | 9 | | reasonableness of those fees up to the maximum allowed
pursuant | 10 | | to Section 20-85
of this Act.
| 11 | | (h) After considering the written response of the | 12 | | Department and conducting the evidentiary hearing required | 13 | | under this Section, the The court shall make an order directed | 14 | | to the Department requiring payment from
the Real Estate
| 15 | | Recovery Fund of whatever sum it finds to be payable upon the | 16 | | claim, pursuant
to and in
accordance with the limitations | 17 | | contained in Section 20-85 of this Act, if the
court is
| 18 | | satisfied, upon the hearing,
of the truth of all matters | 19 | | required to be shown by the aggrieved person under
subsection | 20 | | (g) of this
Section and that the aggrieved person has fully | 21 | | pursued and exhausted all
remedies available for
recovering the | 22 | | amount awarded by the judgment of the court.
| 23 | | (i) Should the Department pay from the Real Estate Recovery | 24 | | Fund any amount in
settlement of a claim
or toward satisfaction | 25 | | of a judgment against a licensed broker or salesperson
or an | 26 | | unlicensed
employee of a broker, the licensee's license shall |
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| 1 | | be automatically revoked terminated
upon the issuance of a
| 2 | | court order authorizing payment from the Real Estate Recovery | 3 | | Fund. No
petition for restoration of
a license shall be heard | 4 | | until repayment has been made in full, plus interest
at the | 5 | | rate prescribed in
Section 12-109 of the Code of Civil | 6 | | Procedure of the amount paid from
the Real Estate Recovery Fund | 7 | | on their account , notwithstanding any provision to the contrary | 8 | | in Section 2105-15 of the Department of Professional Regulation | 9 | | Law of the Civil Administrative Code of Illinois . A discharge | 10 | | in bankruptcy shall
not relieve a
person from the penalties and | 11 | | disabilities provided in this subsection (i).
| 12 | | (j) If, at any time, the money deposited in the Real Estate | 13 | | Recovery Fund is
insufficient to
satisfy any duly authorized | 14 | | claim or portion thereof, the Department shall, when
sufficient | 15 | | money has been
deposited in the Real Estate Recovery Fund, | 16 | | satisfy such unpaid claims or
portions thereof, in the
order | 17 | | that such claims or portions thereof were originally filed, | 18 | | plus
accumulated interest at the rate
prescribed in Section | 19 | | 12-109 of the Code of Civil Procedure.
| 20 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 21 | | (225 ILCS 454/20-95)
| 22 | | (Section scheduled to be repealed on January 1, 2020)
| 23 | | Sec. 20-95. Power of the Department to defend. When the | 24 | | Department receives any process, notice, order, or other | 25 | | document provided for
or
required under
Section 20-90 of this |
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| 1 | | Act, it may enter an appearance, file an answer, appear
at the | 2 | | court hearing,
defend the action, or take whatever other action | 3 | | it deems appropriate on behalf
and in the name of
the defendant | 4 | | or the Department and take recourse through any appropriate | 5 | | method of review on
behalf of and in the
name of the defendant | 6 | | or the Department .
| 7 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 8 | | (225 ILCS 454/20-115)
| 9 | | (Section scheduled to be repealed on January 1, 2020)
| 10 | | Sec. 20-115. Time limit on action. No action may be taken | 11 | | by the Department against any person for violation of the terms | 12 | | of
this Act or its
rules unless the action is commenced within | 13 | | 5 years after the occurrence of the
alleged violation. This | 14 | | limitation shall not apply where it is alleged that an initial | 15 | | application for licensure under this Act contains false or | 16 | | misleading information.
| 17 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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