Full Text of HB0598 98th General Assembly
HB0598ham001 98TH GENERAL ASSEMBLY | Rep. Keith Farnham Filed: 4/17/2013
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| 1 | | AMENDMENT TO HOUSE BILL 598
| 2 | | AMENDMENT NO. ______. Amend House Bill 598 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Real Estate License Act of 2000 is amended | 5 | | by changing Section 10-10 as follows:
| 6 | | (225 ILCS 454/10-10)
| 7 | | (Section scheduled to be repealed on January 1, 2020)
| 8 | | Sec. 10-10. Disclosure of compensation.
| 9 | | (a) A licensee must disclose to a client the sponsoring | 10 | | broker's
compensation and policy with
regard to cooperating | 11 | | with brokers who represent other parties in a
transaction.
| 12 | | (b) A licensee must disclose to a client all sources of | 13 | | compensation related
to the transaction
received by the | 14 | | licensee from a third party.
| 15 | | (c) If a licensee refers a client to a third party in which | 16 | | the licensee has
greater than a 1% ownership interest
or from |
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| 1 | | which the licensee receives or may receive dividends or other | 2 | | profit
sharing distributions, other than a
publicly held or | 3 | | traded company, for the purpose of the client obtaining
| 4 | | services related to the transaction, then the
licensee shall | 5 | | disclose that fact to the client at the time of making the
| 6 | | referral.
| 7 | | (d) If in any one transaction a sponsoring broker receives | 8 | | compensation from
both the buyer
and seller or lessee and | 9 | | lessor of real estate, the sponsoring broker shall
disclose in | 10 | | writing to a
client the fact that the compensation is being | 11 | | paid by both buyer and seller or
lessee and lessor.
| 12 | | (e) Nothing in the Act shall prohibit the cooperation with | 13 | | or a payment of
compensation to a
person not domiciled in this | 14 | | State or country who is licensed as a real
estate broker in
his | 15 | | or her state or country of domicile or to a resident of a | 16 | | country
that does not require a person to be licensed to act as | 17 | | a real estate broker if
the person complies with the laws of | 18 | | the country in which that person resides
and practices there as | 19 | | a real estate broker.
| 20 | | (f) Any broker or other party representing an individual, | 21 | | company, or other entity
seeking to lease commercial real | 22 | | estate, including retail, office, or industrial property, but | 23 | | not
residential property, in excess of 3,000 square feet of | 24 | | floor space for a term of one year or
more, shall, before | 25 | | engaging in any activity in connection with the
representation, | 26 | | provide the tenant with a written statement setting forth, in |
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| 1 | | reasonable detail, the basis on which the broker intends to | 2 | | charge a commission or fee for the representation,
such as | 3 | | percentage of rent, charge per square foot of floor space per | 4 | | year, a fixed amount, or any other other
charge, and a | 5 | | reasonable estimate of the dollar amount of the fee. | 6 | | (g) Any owner of commercial real estate shall, before | 7 | | leasing floor space in excess of 3,000 square feet for a period | 8 | | of one year or more, provide the tenant with a written | 9 | | statement of all commissions to be paid to a broker in | 10 | | connection with the transaction. | 11 | | (h) Any broker or owner of commercial real estate who fails | 12 | | to comply with the requirements of subsections (f) and (g) of | 13 | | this Section in connection with any signed lease shall be | 14 | | liable to the tenant under the lease in an amount up to 3 times | 15 | | the amount of the commission or other fees charged from the | 16 | | transaction, plus any reasonable legal fees incurred in | 17 | | enforcing this subsection (h). | 18 | | (Source: P.A. 91-245, eff. 12-31-99; 92-217, eff. 8-2-01 .)".
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