Full Text of HB4394 95th General Assembly
HB4394 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB4394
Introduced , by Rep. LaShawn K. Ford SYNOPSIS AS INTRODUCED: |
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Amends the Real Estate License Act of 2000. Provides that, prior to the consummation or termination of a transaction, escrow moneys shall be deemed abandoned and transferred to the Office of the State Treasurer to be handled as unclaimed property pursuant to the Uniform Disposition of Unclaimed Property Act only: (i) in the absence of disbursement under certain conditions; (ii) in the absence of notice of the filing of any claim in a court of competent jurisdiction; and (iii) if 6 months have elapsed after the receipt of a written demand for the escrow moneys from one of the principals to the transaction or the principal's duly authorized agent.
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A BILL FOR
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HB4394 |
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LRB095 15584 RAS 41584 b |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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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| (Section scheduled to be repealed on January 1, 2010)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 | 18 |
| any crime, an
essential element of which is dishonesty or fraud | 19 |
| or larceny, embezzlement,
or obtaining money, property, or | 20 |
| credit by false pretenses or by means of a
confidence
game, has | 21 |
| been convicted in this or another state of a crime that is a | 22 |
| felony
under
the laws of this State, or has been convicted of a | 23 |
| felony in a federal court.
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HB4394 |
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LRB095 15584 RAS 41584 b |
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| (c) When the applicant or licensee has been adjudged to be | 2 |
| a person under
legal
disability or subject to involuntary | 3 |
| admission or to meet the standard for
judicial
admission as | 4 |
| provided in the Mental Health and Developmental Disabilities | 5 |
| Code.
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| (d) When the licensee performs or attempts to perform any | 7 |
| act as a broker
or
salesperson in a retail sales establishment | 8 |
| from an office, desk, or space that
is not
separated from the | 9 |
| 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 | 12 |
| of Columbia,
a territory,
a foreign nation, a governmental | 13 |
| agency, or any other entity authorized to
impose
discipline if | 14 |
| at least one of the grounds for that discipline is the same as | 15 |
| or
the
equivalent of one of the grounds for discipline set | 16 |
| forth in this Act, in which
case the
only issue will be whether | 17 |
| 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 | 20 |
| estate activity
without a
license or after the licensee's | 21 |
| license was expired or while the license was
inoperative.
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| (g) When the applicant or licensee attempts to subvert or | 23 |
| cheat on the Real
Estate License Exam or continuing education | 24 |
| exam or aids and abets an applicant
to
subvert or cheat on the | 25 |
| Real Estate License Exam or continuing education exam
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| administered pursuant to this Act.
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HB4394 |
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LRB095 15584 RAS 41584 b |
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| (h) When the licensee in performing, attempting to perform, | 2 |
| or pretending to
perform any act as a broker, salesperson, or | 3 |
| leasing agent or when the
licensee in
handling his or her own | 4 |
| 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 | 7 |
| untruthful advertising.
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| (2) Making any false promises of a character likely to | 9 |
| influence,
persuade,
or induce.
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| (3) Pursuing a continued and flagrant course of | 11 |
| misrepresentation or the
making
of false promises through | 12 |
| licensees, employees, agents, advertising, or
otherwise.
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| (4) Any misleading or untruthful advertising, or using | 14 |
| any trade name or
insignia of membership in any real estate | 15 |
| organization of which the licensee is
not a member.
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| (5) Acting for more than one party in a transaction | 17 |
| without providing
written
notice to all parties for whom | 18 |
| the licensee acts.
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| (6) Representing or attempting to represent a broker | 20 |
| other than the
sponsoring broker.
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| (7) Failure to account for or to remit any moneys or | 22 |
| documents coming into
his or her possession that belong to | 23 |
| others.
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| (8) Failure to maintain and deposit in a special | 25 |
| account, separate and
apart from
personal and other | 26 |
| business accounts, all escrow moneys belonging to others
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HB4394 |
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LRB095 15584 RAS 41584 b |
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| entrusted to a licensee
while acting as a real estate | 2 |
| broker, escrow agent, or temporary custodian of
the funds | 3 |
| of others or
failure to maintain all escrow moneys on | 4 |
| deposit in the account until the
transactions are
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| consummated or terminated, except to the extent that the | 6 |
| moneys, or any part
thereof, shall be : | 7 |
| (A)
disbursed prior to the consummation or | 8 |
| termination (i) in accordance with (i)
the
written | 9 |
| direction of
the principals to the transaction or their | 10 |
| duly authorized agents, (ii) in accordance with
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| directions providing for the
release, payment, or | 12 |
| distribution of escrow moneys contained in any written
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| contract signed by the
principals to the transaction or | 14 |
| their duly authorized agents,
or (iii)
pursuant to an | 15 |
| order of a court of competent
jurisdiction ; or | 16 |
| (B) deemed abandoned and transferred to the Office | 17 |
| of the State Treasurer to be handled as unclaimed | 18 |
| property pursuant to the Uniform Disposition of | 19 |
| Unclaimed Property Act. Escrow moneys may be deemed | 20 |
| abandoned under this subparagraph (B) only: (i) in the | 21 |
| absence of disbursement under subparagraph (A); (ii) | 22 |
| in the absence of notice of the filing of any claim in | 23 |
| a court of competent jurisdiction; and (iii) if 6 | 24 |
| months have elapsed after the receipt of a written | 25 |
| demand for the escrow moneys from one of the principals | 26 |
| to the transaction or the principal's duly authorized |
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HB4394 |
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LRB095 15584 RAS 41584 b |
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| agent .
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| The account
shall be noninterest
bearing, unless the | 3 |
| character of the deposit is such that payment of interest
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| thereon is otherwise
required by law or unless the | 5 |
| principals to the transaction specifically
require, in | 6 |
| writing, that the
deposit be placed in an interest bearing | 7 |
| account.
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| (9) Failure to make available to the real estate | 9 |
| enforcement personnel of
OBRE
during normal business hours | 10 |
| all escrow records and related documents
maintained in | 11 |
| connection
with the practice of real estate within 24 hours | 12 |
| of a request for those
documents by OBRE personnel.
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| (10) Failing to furnish copies upon request of all | 14 |
| documents relating to a
real
estate transaction to all | 15 |
| parties executing them.
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| (11) Failure of a sponsoring broker to timely provide | 17 |
| information, sponsor
cards,
or termination of licenses to | 18 |
| OBRE.
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| (12) Engaging in dishonorable, unethical, or | 20 |
| unprofessional conduct of a
character
likely to deceive, | 21 |
| defraud, or harm the public.
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| (13) Commingling the money or property of others with | 23 |
| his or her own.
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| (14) Employing any person on a purely temporary or | 25 |
| single deal basis as a
means
of evading the law regarding | 26 |
| payment of commission to nonlicensees on some
contemplated
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LRB095 15584 RAS 41584 b |
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| transactions.
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| (15) Permitting the use of his or her license as a | 3 |
| broker to enable a
salesperson or
unlicensed person to | 4 |
| 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 | 7 |
| different character from
that
specified in this Section, | 8 |
| that constitutes dishonest dealing.
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| (17) Displaying a "for rent" or "for sale" sign on any | 10 |
| property without
the written
consent of an owner or his or | 11 |
| her duly authorized agent or advertising by any
means that | 12 |
| any property is
for sale or for rent without the written | 13 |
| consent of the owner or his or her
authorized agent.
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| (18) Failing to provide information requested by OBRE, | 15 |
| within 30 days of
the
request, either as the result of a | 16 |
| formal or informal complaint to OBRE or as a
result of a | 17 |
| random
audit conducted by OBRE, which would indicate a | 18 |
| violation of this Act.
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| (19) Advertising by means of a blind advertisement, | 20 |
| except as otherwise
permitted in Section 10-30 of this Act.
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| (20) Offering guaranteed sales plans, as defined in | 22 |
| clause (A) of
this subdivision (20), except to
the extent | 23 |
| hereinafter set forth:
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| (A) A "guaranteed sales plan" is any real estate | 25 |
| purchase or sales plan
whereby a licensee enters into a | 26 |
| conditional or unconditional written contract
with a |
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LRB095 15584 RAS 41584 b |
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| seller by the
terms of which a licensee agrees to | 2 |
| purchase a property of the seller within a
specified | 3 |
| period of time
at a specific price in the event the | 4 |
| property is not sold in accordance with
the terms of a | 5 |
| listing
contract between the sponsoring broker and the | 6 |
| seller or on other terms
acceptable to the
seller.
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| (B) A licensee offering a guaranteed sales plan | 8 |
| shall provide the
details
and conditions of the plan in | 9 |
| writing to the party to whom the plan is
offered.
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| (C) A licensee offering a guaranteed sales plan | 11 |
| shall provide to the
party
to whom the plan is offered | 12 |
| evidence of sufficient financial resources to
satisfy | 13 |
| the commitment to
purchase undertaken by the broker in | 14 |
| the plan.
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| (D) Any licensee offering a guaranteed sales plan | 16 |
| shall undertake to
market the property of the seller | 17 |
| subject to the plan in the same manner in
which the | 18 |
| broker would
market any other property, unless the | 19 |
| agreement with the seller provides
otherwise.
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| (E) Any licensee who fails to perform on a | 21 |
| guaranteed sales plan in
strict accordance with its | 22 |
| terms shall be subject to all the penalties provided
in | 23 |
| this Act for
violations thereof and, in addition, shall | 24 |
| be subject to a civil fine payable
to the party injured | 25 |
| by the
default in an amount of up to $25,000.
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| (21) Influencing or attempting to influence, by any |
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LRB095 15584 RAS 41584 b |
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| words or acts, a
prospective
seller, purchaser, occupant, | 2 |
| landlord, or tenant of real estate, in connection
with | 3 |
| viewing, buying, or
leasing real estate, so as to promote | 4 |
| or tend to promote the continuance
or maintenance of
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| racially and religiously segregated housing or so as to | 6 |
| retard, obstruct, or
discourage racially
integrated | 7 |
| housing on or in any street, block, neighborhood, or | 8 |
| community.
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| (22) Engaging in any act that constitutes a violation | 10 |
| of any provision of
Article 3 of the Illinois Human Rights | 11 |
| 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 | 14 |
| or brokerage
agreement to
break the contract of sale or | 15 |
| lease or brokerage agreement for the purpose of
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| substituting, in lieu
thereof, a new contract for sale or | 17 |
| lease or brokerage agreement with a third
party.
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| (24) Negotiating a sale, exchange, or lease of real | 19 |
| estate directly with
any person
if the licensee knows that | 20 |
| the person has a written exclusive brokerage
agreement with | 21 |
| another
broker, unless specifically authorized by that | 22 |
| broker.
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| (25) When a licensee is also an attorney, acting as the | 24 |
| attorney for
either the
buyer or the seller in the same | 25 |
| transaction in which the licensee is acting or
has acted as | 26 |
| a broker
or salesperson.
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LRB095 15584 RAS 41584 b |
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| (26) Advertising or offering merchandise or services | 2 |
| as free if any
conditions or
obligations necessary for | 3 |
| receiving the merchandise or services are not
disclosed in | 4 |
| the same
advertisement or offer. These conditions or | 5 |
| obligations include without
limitation the
requirement | 6 |
| that the recipient attend a promotional activity or visit a | 7 |
| real
estate site. As used in this
subdivision (26), "free" | 8 |
| includes terms such as "award", "prize", "no charge",
"free | 9 |
| of charge",
"without charge", and similar words or phrases | 10 |
| that reasonably lead a person to
believe that he or she
may | 11 |
| receive or has been selected to receive something of value, | 12 |
| without any
conditions or
obligations on the part of the | 13 |
| recipient.
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| (27) Disregarding or violating any provision of the | 15 |
| Land Sales
Registration Act of 1989, the Illinois Real | 16 |
| Estate
Time-Share Act, or the published rules promulgated | 17 |
| by OBRE to enforce
those Acts.
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| (28) Violating the terms of a disciplinary order
issued | 19 |
| by OBRE.
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| (29) Paying compensation in violation of Article 10 of | 21 |
| this Act.
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| (30) Requiring a party to a transaction who is not a | 23 |
| client of the
licensee
to allow the licensee to retain a | 24 |
| portion of the escrow moneys for payment of
the licensee's | 25 |
| commission or expenses as a condition for release of the | 26 |
| escrow
moneys to that party.
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| (31) Disregarding or violating any provision of this | 2 |
| Act or the published
rules
promulgated by OBRE to enforce | 3 |
| this Act or aiding or abetting any individual,
partnership, | 4 |
| registered limited liability partnership, limited | 5 |
| liability
company, or corporation in
disregarding any | 6 |
| 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 | 9 |
| by Section 15-75 of this Act when acting under an exclusive | 10 |
| brokerage agreement.
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| (Source: P.A. 93-957, eff. 8-19-04.)
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