Full Text of SB1697 99th General Assembly
SB1697 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB1697 Introduced 2/20/2015, by Sen. William E. Brady SYNOPSIS AS INTRODUCED: |
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Amends the Real Estate License Act of 2000. Changes the definition of "managing broker" to provide that a supervising broker may have supervisory responsibilities for licensees in more than one brokerage company or entity (rather than for licensees in one or more than one office). Effective immediately.
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| | A BILL FOR |
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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 Section 1-10 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| 7 | | (Section scheduled to be repealed on January 1, 2020)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 as those terms are defined in | 26 | | this Act, pursuant to the provisions of Section 10-45 of |
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| 1 | | this Act. | 2 | | "Brokerage agreement" means a written or oral agreement | 3 | | between a sponsoring
broker and a consumer for licensed | 4 | | activities to be provided to a consumer in
return for | 5 | | compensation or the right to receive compensation from another.
| 6 | | Brokerage agreements may constitute either a bilateral or a | 7 | | unilateral
agreement between the broker and the broker's client | 8 | | depending upon the content
of the brokerage agreement. All | 9 | | exclusive brokerage agreements shall be in
writing.
| 10 | | "Broker price opinion" means an estimate or analysis of the | 11 | | probable selling price of a particular interest in real estate, | 12 | | which may provide a varying level of detail about the | 13 | | property's condition, market, and neighborhood and information | 14 | | on comparable sales. The activities of a real estate broker or | 15 | | managing broker engaging in the ordinary course of business as | 16 | | a broker, as defined in this Section, shall not be considered a | 17 | | broker price opinion if no compensation is paid to the broker | 18 | | or managing broker, other than compensation based upon the sale | 19 | | or rental of real estate. | 20 | | "Client" means a person who is being represented by a | 21 | | licensee.
| 22 | | "Comparative market analysis" is an analysis or opinion | 23 | | regarding pricing, marketing, or financial aspects relating to | 24 | | a specified interest or interests in real estate that may be | 25 | | based upon an analysis of comparative market data, the | 26 | | expertise of the real estate broker or managing broker, and |
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| 1 | | such other factors as the broker or managing broker may deem | 2 | | appropriate in developing or preparing such analysis or | 3 | | opinion. The activities of a real estate broker or managing | 4 | | broker engaging in the ordinary course of business as a broker, | 5 | | as defined in this Section, shall not be considered a | 6 | | comparative market analysis if no compensation is paid to the | 7 | | broker or managing broker, other than compensation based upon | 8 | | the sale or rental of real estate. | 9 | | "Compensation" means the valuable consideration given by | 10 | | one person or entity
to another person or entity in exchange | 11 | | for the performance of some activity or
service. Compensation | 12 | | shall include the transfer of valuable consideration,
| 13 | | including without limitation the following:
| 14 | | (1) commissions;
| 15 | | (2) referral fees;
| 16 | | (3) bonuses;
| 17 | | (4) prizes;
| 18 | | (5) merchandise;
| 19 | | (6) finder fees;
| 20 | | (7) performance of services;
| 21 | | (8) coupons or gift certificates;
| 22 | | (9) discounts;
| 23 | | (10) rebates;
| 24 | | (11) a chance to win a raffle, drawing, lottery, or | 25 | | similar game of chance
not prohibited by any other law or | 26 | | statute;
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| 1 | | (12) retainer fee; or
| 2 | | (13) salary.
| 3 | | "Confidential information" means information obtained by a | 4 | | licensee from a
client during the term of a brokerage agreement | 5 | | that (i) was made confidential
by the written request or | 6 | | written instruction of the client, (ii) deals with
the | 7 | | negotiating position of the client, or (iii) is information the | 8 | | disclosure
of which could materially harm the negotiating | 9 | | position of the client, unless
at any time:
| 10 | | (1) the client permits the disclosure of information | 11 | | given by that client
by word or conduct;
| 12 | | (2) the disclosure is required by law; or
| 13 | | (3) the information becomes public from a source other | 14 | | than the licensee.
| 15 | | "Confidential information" shall not be considered to | 16 | | include material
information about the physical condition of | 17 | | the property.
| 18 | | "Consumer" means a person or entity seeking or receiving | 19 | | licensed
activities.
| 20 | | "Continuing education school" means any person licensed by | 21 | | the Department as a school
for continuing education in | 22 | | accordance with Section 30-15 of this Act. | 23 | | "Coordinator" means the Coordinator of Real Estate created | 24 | | in Section 25-15 of this Act.
| 25 | | "Credit hour" means 50 minutes of classroom instruction in | 26 | | course work that
meets the requirements set forth in rules |
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| 1 | | adopted by the Department.
| 2 | | "Customer" means a consumer who is not being represented by | 3 | | the licensee but
for whom the licensee is performing | 4 | | ministerial acts.
| 5 | | "Department" means the Department of Financial and | 6 | | Professional Regulation. | 7 | | "Designated agency" means a contractual relationship | 8 | | between a sponsoring
broker and a client under Section 15-50 of | 9 | | this Act in which one or more
licensees associated with or | 10 | | employed by the broker are designated as agent of
the client.
| 11 | | "Designated agent" means a sponsored licensee named by a | 12 | | sponsoring broker as
the legal agent of a client, as provided | 13 | | for in Section 15-50 of this Act.
| 14 | | "Dual agency" means an agency relationship in which a | 15 | | licensee is
representing both buyer and seller or both landlord | 16 | | and tenant in the same
transaction. When the agency | 17 | | relationship is a designated agency, the
question of whether | 18 | | there is a dual agency shall be determined by the agency
| 19 | | relationships of the designated agent of the parties and not of | 20 | | the sponsoring
broker.
| 21 | | "Employee" or other derivative of the word "employee", when | 22 | | used to refer to,
describe, or delineate the relationship | 23 | | between a real estate broker and a real
estate salesperson, | 24 | | another real estate broker, or a leasing agent, shall be
| 25 | | construed to include an independent contractor relationship, | 26 | | provided that a
written agreement exists that clearly |
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| 1 | | establishes and states the relationship.
All responsibilities | 2 | | of a broker shall remain.
| 3 | | "Escrow moneys" means all moneys, promissory notes or any | 4 | | other type or
manner of legal tender or financial consideration | 5 | | deposited with any person for
the benefit of the parties to the | 6 | | transaction. A transaction exists once an
agreement has been | 7 | | reached and an accepted real estate contract signed or lease
| 8 | | agreed to by the parties. Escrow moneys includes without | 9 | | limitation earnest
moneys and security deposits, except those | 10 | | security deposits in which the
person holding the security | 11 | | deposit is also the sole owner of the property
being leased and | 12 | | for which the security deposit is being held.
| 13 | | "Electronic means of proctoring" means a methodology | 14 | | providing assurance that the person taking a test and | 15 | | completing the answers to questions is the person seeking | 16 | | licensure or credit for continuing education and is doing so | 17 | | without the aid of a third party or other device. | 18 | | "Exclusive brokerage agreement" means a written brokerage | 19 | | agreement that provides that the sponsoring broker has the sole | 20 | | right, through one or more sponsored licensees, to act as the | 21 | | exclusive designated agent or representative of the client and | 22 | | that meets the requirements of Section 15-75 of this Act.
| 23 | | "Inoperative" means a status of licensure where the | 24 | | licensee holds a current
license under this Act, but the | 25 | | licensee is prohibited from engaging in
licensed activities | 26 | | because the licensee is unsponsored or the license of the
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| 1 | | sponsoring broker with whom the licensee is associated or by | 2 | | whom he or she is
employed is currently expired, revoked, | 3 | | suspended, or otherwise rendered
invalid under this Act.
| 4 | | "Interactive delivery method" means delivery of a course by | 5 | | an instructor through a medium allowing for 2-way communication | 6 | | between the instructor and a student in which either can | 7 | | initiate or respond to questions. | 8 | | "Leads" means the name or names of a potential buyer, | 9 | | seller, lessor, lessee, or client of a licensee. | 10 | | "Leasing Agent" means a person who is employed by a real | 11 | | estate broker to
engage in licensed activities limited to | 12 | | leasing residential real estate who
has obtained a license as | 13 | | provided for in Section 5-5 of this Act.
| 14 | | "License" means the document issued by the Department | 15 | | certifying that the person named
thereon has fulfilled all | 16 | | requirements prerequisite to licensure under this
Act.
| 17 | | "Licensed activities" means those activities listed in the | 18 | | definition of
"broker" under this Section.
| 19 | | "Licensee" means any person, as defined in this Section, | 20 | | who holds a
valid unexpired license as a real estate broker, | 21 | | real estate salesperson, or
leasing agent.
| 22 | | "Listing presentation" means a communication between a | 23 | | real estate broker or
salesperson and a consumer in which the | 24 | | licensee is attempting to secure a
brokerage agreement with the | 25 | | consumer to market the consumer's real estate for
sale or | 26 | | lease.
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| 1 | | "Managing broker" means a broker who has supervisory | 2 | | responsibilities for
licensees in one or , in the case of a | 3 | | multi-office company, more brokerage companies or entities, | 4 | | than one
office and who has been appointed as such by the | 5 | | sponsoring broker.
| 6 | | "Medium of advertising" means any method of communication | 7 | | intended to
influence the general public to use or purchase a | 8 | | particular good or service or
real estate.
| 9 | | "Ministerial acts" means those acts that a licensee may | 10 | | perform for a
consumer that are informative or clerical in | 11 | | nature and do not rise to the
level of active representation on | 12 | | behalf of a consumer. Examples of these acts
include without | 13 | | limitation (i) responding to phone inquiries by consumers as to
| 14 | | the availability and pricing of brokerage services, (ii) | 15 | | responding to phone
inquiries from a consumer concerning the | 16 | | price or location of property, (iii)
attending an open house | 17 | | and responding to questions about the property from a
consumer, | 18 | | (iv) setting an appointment to view property, (v) responding to
| 19 | | questions of consumers walking into a licensee's office | 20 | | concerning brokerage
services offered or particular | 21 | | properties, (vi) accompanying an appraiser,
inspector, | 22 | | contractor, or similar third party on a visit to a property, | 23 | | (vii)
describing a property or the property's condition in | 24 | | response to a consumer's
inquiry, (viii) completing business or | 25 | | factual information for a consumer on an
offer or contract to | 26 | | purchase on behalf of a client, (ix) showing a client
through a |
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| 1 | | property being sold by an owner on his or her own behalf, or | 2 | | (x)
referral to another broker or service provider.
| 3 | | "Office" means a real estate broker's place of business | 4 | | where the general
public is invited to transact business and | 5 | | where records may be maintained and
licenses displayed, whether | 6 | | or not it is the broker's principal place of
business.
| 7 | | "Person" means and includes individuals, entities, | 8 | | corporations, limited
liability companies, registered limited | 9 | | liability partnerships, and
partnerships, foreign or domestic, | 10 | | except that when the context otherwise
requires, the term may | 11 | | refer to a single individual or other described entity.
| 12 | | "Personal assistant" means a licensed or unlicensed person | 13 | | who has been hired
for the purpose of aiding or assisting a | 14 | | sponsored licensee in the performance
of the sponsored | 15 | | licensee's job.
| 16 | | "Pocket card" means the card issued by the Department to | 17 | | signify that the person named
on the card is currently licensed | 18 | | under this Act.
| 19 | | "Pre-license school" means a school licensed by the | 20 | | Department offering courses in
subjects related to real estate | 21 | | transactions, including the subjects upon
which an applicant is | 22 | | examined in determining fitness to receive a license.
| 23 | | "Pre-renewal period" means the period between the date of | 24 | | issue of a
currently valid license and the license's expiration | 25 | | date.
| 26 | | "Proctor" means any person, including, but not limited to, |
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| 1 | | an instructor, who has a written agreement to administer | 2 | | examinations fairly and impartially with a licensed | 3 | | pre-license school or a licensed continuing education school. | 4 | | "Real estate" means and includes leaseholds as well as any | 5 | | other interest or
estate in land, whether corporeal, | 6 | | incorporeal, freehold, or non-freehold,
including timeshare | 7 | | interests, and whether the real estate is situated in this
| 8 | | State or elsewhere.
| 9 | | "Regular employee" means a person working an average of 20 | 10 | | hours per week for a person or entity who would be considered | 11 | | as an employee under the Internal Revenue Service eleven main | 12 | | tests in three categories being behavioral control, financial | 13 | | control and the type of relationship of the parties, formerly | 14 | | the twenty factor test.
| 15 | | "Salesperson" means any individual, other than a real | 16 | | estate broker or
leasing agent, who is employed by a real | 17 | | estate broker or is associated by
written agreement with a real | 18 | | estate broker as an independent contractor and
participates in | 19 | | any activity described in the definition of "broker" under this
| 20 | | Section.
| 21 | | "Secretary" means the Secretary of the Department of | 22 | | Financial and Professional Regulation, or a person authorized | 23 | | by the Secretary to act in the Secretary's stead. | 24 | | "Sponsoring broker" means the broker who has issued a | 25 | | sponsor card to a
licensed salesperson, another licensed | 26 | | broker, or a leasing agent.
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| 1 | | "Sponsor card" means the temporary permit issued by the | 2 | | sponsoring real
estate broker certifying that the real estate | 3 | | broker, real estate salesperson,
or leasing agent named thereon | 4 | | is employed by or associated by written
agreement with the | 5 | | sponsoring real estate broker, as provided for in Section
5-40 | 6 | | of this Act.
| 7 | | (Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15 .)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
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