Full Text of HB5209 100th General Assembly
HB5209 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB5209 Introduced , by Rep. Tom Demmer SYNOPSIS AS INTRODUCED: |
|
225 ILCS 454/1-10 |
|
225 ILCS 454/5-10 |
|
225 ILCS 454/5-15 |
| 225 ILCS 454/5-27 | | 225 ILCS 454/5-28 | |
225 ILCS 454/5-40 |
|
225 ILCS 454/5-50 |
|
225 ILCS 454/20-20 |
|
|
Amends the Real Estate License Act of 2000. Removes provisions relating to sponsor cards issued by sponsoring brokers to managing brokers, brokers, or leasing agents. Adds provisions requiring a sponsoring broker to notify the Department of Financial and Professional Regulation within 24 hours of a sponsorship of a licensee in a manner provided by rule. When a licensee's employment with a sponsoring broker is terminated, requires the licensee and sponsoring broker to notify the Department of the termination within 24 hours in a manner provided by rule. Provides that the failure to provide that notification shall subject the sponsoring broker or licensee to discipline. Adds provisions regarding the Department's recognition of a sponsorship by a sponsoring broker. Makes conforming and other changes. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | HB5209 | | LRB100 17392 XWW 32558 b |
|
| 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 1-10, 5-10, 5-15, 5-27, 5-28, 5-40, 5-50, | 6 | | and 20-20 as follows:
| 7 | | (225 ILCS 454/1-10)
| 8 | | (Section scheduled to be repealed on January 1, 2020)
| 9 | | Sec. 1-10. Definitions. In this Act, unless the context | 10 | | otherwise requires:
| 11 | | "Act" means the Real Estate License Act of 2000.
| 12 | | "Address of record" means the designated address recorded | 13 | | by the Department in the applicant's or licensee's application | 14 | | file or license file as maintained by the Department's | 15 | | licensure maintenance unit. It is the duty of the applicant or | 16 | | licensee to inform the Department of any change of address, and | 17 | | those changes must be made either through the Department's | 18 | | website or by contacting the Department.
| 19 | | "Agency" means a relationship in which a broker or | 20 | | licensee,
whether directly or through an affiliated licensee, | 21 | | represents a consumer by
the consumer's consent, whether | 22 | | express or implied, in a real property
transaction.
| 23 | | "Applicant" means any person, as defined in this Section, |
| | | HB5209 | - 2 - | LRB100 17392 XWW 32558 b |
|
| 1 | | who applies to
the Department for a valid license as a managing | 2 | | broker, broker, or
leasing agent.
| 3 | | "Blind advertisement" means any real estate advertisement | 4 | | that does not
include the sponsoring broker's business name and | 5 | | that is used by any licensee
regarding the sale or lease of | 6 | | real estate, including his or her own, licensed
activities, or | 7 | | the hiring of any licensee under this Act. The broker's
| 8 | | business name in the case of a franchise shall include the | 9 | | franchise
affiliation as well as the name of the individual | 10 | | firm.
| 11 | | "Board" means the Real Estate Administration and | 12 | | Disciplinary Board of the Department as created by Section | 13 | | 25-10 of this Act.
| 14 | | "Branch office" means a sponsoring broker's office other | 15 | | than the sponsoring
broker's principal office.
| 16 | | "Broker" means an individual, partnership, limited | 17 | | liability company,
corporation, or registered limited | 18 | | liability partnership other than a leasing agent who, whether | 19 | | in person or through any media or technology, for another and | 20 | | for compensation, or
with the intention or expectation of | 21 | | receiving compensation, either
directly or indirectly:
| 22 | | (1) Sells, exchanges, purchases, rents, or leases real | 23 | | estate.
| 24 | | (2) Offers to sell, exchange, purchase, rent, or lease | 25 | | real estate.
| 26 | | (3) Negotiates, offers, attempts, or agrees to |
| | | HB5209 | - 3 - | LRB100 17392 XWW 32558 b |
|
| 1 | | negotiate the sale,
exchange, purchase, rental, or leasing | 2 | | of real estate.
| 3 | | (4) Lists, offers, attempts, or agrees to list real | 4 | | estate for sale,
rent, lease, or exchange.
| 5 | | (5) Buys, sells, offers to buy or sell, or otherwise | 6 | | deals in options on
real estate or improvements thereon.
| 7 | | (6) Supervises the collection, offer, attempt, or | 8 | | agreement
to collect rent for the use of real estate.
| 9 | | (7) Advertises or represents himself or herself as | 10 | | being engaged in the
business of buying, selling, | 11 | | exchanging, renting, or leasing real estate.
| 12 | | (8) Assists or directs in procuring or referring of | 13 | | leads or prospects, intended to
result in the sale, | 14 | | exchange, lease, or rental of real estate.
| 15 | | (9) Assists or directs in the negotiation of any | 16 | | transaction intended to
result in the sale, exchange, | 17 | | lease, or rental of real estate.
| 18 | | (10) Opens real estate to the public for marketing | 19 | | purposes.
| 20 | | (11) Sells, rents, leases, or offers for sale or lease | 21 | | real estate at
auction.
| 22 | | (12) Prepares or provides a broker price opinion or | 23 | | comparative market analysis as those terms are defined in | 24 | | this Act, pursuant to the provisions of Section 10-45 of | 25 | | this Act. | 26 | | "Brokerage agreement" means a written or oral agreement |
| | | HB5209 | - 4 - | LRB100 17392 XWW 32558 b |
|
| 1 | | between a sponsoring
broker and a consumer for licensed | 2 | | activities to be provided to a consumer in
return for | 3 | | compensation or the right to receive compensation from another.
| 4 | | Brokerage agreements may constitute either a bilateral or a | 5 | | unilateral
agreement between the broker and the broker's client | 6 | | depending upon the content
of the brokerage agreement. All | 7 | | exclusive brokerage agreements shall be in
writing.
| 8 | | "Broker price opinion" means an estimate or analysis of the | 9 | | probable selling price of a particular interest in real estate, | 10 | | which may provide a varying level of detail about the | 11 | | property's condition, market, and neighborhood and information | 12 | | on comparable sales. The activities of a real estate broker or | 13 | | managing broker engaging in the ordinary course of business as | 14 | | a broker, as defined in this Section, shall not be considered a | 15 | | broker price opinion if no compensation is paid to the broker | 16 | | or managing broker, other than compensation based upon the sale | 17 | | or rental of real estate. | 18 | | "Client" means a person who is being represented by a | 19 | | licensee.
| 20 | | "Comparative market analysis" is an analysis or opinion | 21 | | regarding pricing, marketing, or financial aspects relating to | 22 | | a specified interest or interests in real estate that may be | 23 | | based upon an analysis of comparative market data, the | 24 | | expertise of the real estate broker or managing broker, and | 25 | | such other factors as the broker or managing broker may deem | 26 | | appropriate in developing or preparing such analysis or |
| | | HB5209 | - 5 - | LRB100 17392 XWW 32558 b |
|
| 1 | | opinion. The activities of a real estate broker or managing | 2 | | broker engaging in the ordinary course of business as a broker, | 3 | | as defined in this Section, shall not be considered a | 4 | | comparative market analysis if no compensation is paid to the | 5 | | broker or managing broker, other than compensation based upon | 6 | | the sale or rental of real estate. | 7 | | "Compensation" means the valuable consideration given by | 8 | | one person or entity
to another person or entity in exchange | 9 | | for the performance of some activity or
service. Compensation | 10 | | shall include the transfer of valuable consideration,
| 11 | | including without limitation the following:
| 12 | | (1) commissions;
| 13 | | (2) referral fees;
| 14 | | (3) bonuses;
| 15 | | (4) prizes;
| 16 | | (5) merchandise;
| 17 | | (6) finder fees;
| 18 | | (7) performance of services;
| 19 | | (8) coupons or gift certificates;
| 20 | | (9) discounts;
| 21 | | (10) rebates;
| 22 | | (11) a chance to win a raffle, drawing, lottery, or | 23 | | similar game of chance
not prohibited by any other law or | 24 | | statute;
| 25 | | (12) retainer fee; or
| 26 | | (13) salary.
|
| | | HB5209 | - 6 - | LRB100 17392 XWW 32558 b |
|
| 1 | | "Confidential information" means information obtained by a | 2 | | licensee from a
client during the term of a brokerage agreement | 3 | | that (i) was made confidential
by the written request or | 4 | | written instruction of the client, (ii) deals with
the | 5 | | negotiating position of the client, or (iii) is information the | 6 | | disclosure
of which could materially harm the negotiating | 7 | | position of the client, unless
at any time:
| 8 | | (1) the client permits the disclosure of information | 9 | | given by that client
by word or conduct;
| 10 | | (2) the disclosure is required by law; or
| 11 | | (3) the information becomes public from a source other | 12 | | than the licensee.
| 13 | | "Confidential information" shall not be considered to | 14 | | include material
information about the physical condition of | 15 | | the property.
| 16 | | "Consumer" means a person or entity seeking or receiving | 17 | | licensed
activities.
| 18 | | "Coordinator" means the Coordinator of Real Estate created | 19 | | in Section 25-15 of this Act.
| 20 | | "Credit hour" means 50 minutes of classroom instruction in | 21 | | course work that
meets the requirements set forth in rules | 22 | | adopted by the Department.
| 23 | | "Customer" means a consumer who is not being represented by | 24 | | the licensee but
for whom the licensee is performing | 25 | | ministerial acts.
| 26 | | "Department" means the Department of Financial and |
| | | HB5209 | - 7 - | LRB100 17392 XWW 32558 b |
|
| 1 | | Professional Regulation. | 2 | | "Designated agency" means a contractual relationship | 3 | | between a sponsoring
broker and a client under Section 15-50 of | 4 | | this Act in which one or more
licensees associated with or | 5 | | employed by the broker are designated as agent of
the client.
| 6 | | "Designated agent" means a sponsored licensee named by a | 7 | | sponsoring broker as
the legal agent of a client, as provided | 8 | | for in Section 15-50 of this Act.
| 9 | | "Dual agency" means an agency relationship in which a | 10 | | licensee is
representing both buyer and seller or both landlord | 11 | | and tenant in the same
transaction. When the agency | 12 | | relationship is a designated agency, the
question of whether | 13 | | there is a dual agency shall be determined by the agency
| 14 | | relationships of the designated agent of the parties and not of | 15 | | the sponsoring
broker.
| 16 | | "Education provider" means a school licensed by the | 17 | | Department offering courses in pre-license, post-license, or | 18 | | continuing education required by this Act. | 19 | | "Employee" or other derivative of the word "employee", when | 20 | | used to refer to,
describe, or delineate the relationship | 21 | | between a sponsoring broker and a managing broker, broker, or a | 22 | | leasing agent, shall be
construed to include an independent | 23 | | contractor relationship, provided that a
written agreement | 24 | | exists that clearly establishes and states the relationship.
| 25 | | All responsibilities of a broker shall remain.
| 26 | | "Escrow moneys" means all moneys, promissory notes or any |
| | | HB5209 | - 8 - | LRB100 17392 XWW 32558 b |
|
| 1 | | other type or
manner of legal tender or financial consideration | 2 | | deposited with any person for
the benefit of the parties to the | 3 | | transaction. A transaction exists once an
agreement has been | 4 | | reached and an accepted real estate contract signed or lease
| 5 | | agreed to by the parties. Escrow moneys includes without | 6 | | limitation earnest
moneys and security deposits, except those | 7 | | security deposits in which the
person holding the security | 8 | | deposit is also the sole owner of the property
being leased and | 9 | | for which the security deposit is being held.
| 10 | | "Electronic means of proctoring" means a methodology | 11 | | providing assurance that the person taking a test and | 12 | | completing the answers to questions is the person seeking | 13 | | licensure or credit for continuing education and is doing so | 14 | | without the aid of a third party or other device. | 15 | | "Exclusive brokerage agreement" means a written brokerage | 16 | | agreement that provides that the sponsoring broker has the sole | 17 | | right, through one or more sponsored licensees, to act as the | 18 | | exclusive designated agent or representative of the client and | 19 | | that meets the requirements of Section 15-75 of this Act.
| 20 | | "Inoperative" means a status of licensure where the | 21 | | licensee holds a current
license under this Act, but the | 22 | | licensee is prohibited from engaging in
licensed activities | 23 | | because the licensee is unsponsored or the license of the
| 24 | | sponsoring broker with whom the licensee is associated or by | 25 | | whom he or she is
employed is currently expired, revoked, | 26 | | suspended, or otherwise rendered
invalid under this Act.
|
| | | HB5209 | - 9 - | LRB100 17392 XWW 32558 b |
|
| 1 | | "Interactive delivery method" means delivery of a course by | 2 | | an instructor through a medium allowing for 2-way communication | 3 | | between the instructor and a student in which either can | 4 | | initiate or respond to questions. | 5 | | "Leads" means the name or names of a potential buyer, | 6 | | seller, lessor, lessee, or client of a licensee. | 7 | | "Leasing Agent" means a person who is employed by a broker | 8 | | to
engage in licensed activities limited to leasing residential | 9 | | real estate who
has obtained a license as provided for in | 10 | | Section 5-5 of this Act.
| 11 | | "License" means the document issued by the Department | 12 | | certifying that the person named
thereon has fulfilled all | 13 | | requirements prerequisite to licensure under this
Act.
| 14 | | "Licensed activities" means those activities listed in the | 15 | | definition of
"broker" under this Section.
| 16 | | "Licensee" means any person, as defined in this Section, | 17 | | who holds a
valid unexpired license as a managing broker, | 18 | | broker, or
leasing agent.
| 19 | | "Listing presentation" means a communication between a | 20 | | managing broker or
broker and a consumer in which the licensee | 21 | | is attempting to secure a
brokerage agreement with the consumer | 22 | | to market the consumer's real estate for
sale or lease.
| 23 | | "Managing broker" means a broker who has supervisory | 24 | | responsibilities for
licensees in one or, in the case of a | 25 | | multi-office company, more than one
office and who has been | 26 | | appointed as such by the sponsoring broker.
|
| | | HB5209 | - 10 - | LRB100 17392 XWW 32558 b |
|
| 1 | | "Medium of advertising" means any method of communication | 2 | | intended to
influence the general public to use or purchase a | 3 | | particular good or service or
real estate.
| 4 | | "Ministerial acts" means those acts that a licensee may | 5 | | perform for a
consumer that are informative or clerical in | 6 | | nature and do not rise to the
level of active representation on | 7 | | behalf of a consumer. Examples of these acts
include without | 8 | | limitation (i) responding to phone inquiries by consumers as to
| 9 | | the availability and pricing of brokerage services, (ii) | 10 | | responding to phone
inquiries from a consumer concerning the | 11 | | price or location of property, (iii)
attending an open house | 12 | | and responding to questions about the property from a
consumer, | 13 | | (iv) setting an appointment to view property, (v) responding to
| 14 | | questions of consumers walking into a licensee's office | 15 | | concerning brokerage
services offered or particular | 16 | | properties, (vi) accompanying an appraiser,
inspector, | 17 | | contractor, or similar third party on a visit to a property, | 18 | | (vii)
describing a property or the property's condition in | 19 | | response to a consumer's
inquiry, (viii) completing business or | 20 | | factual information for a consumer on an
offer or contract to | 21 | | purchase on behalf of a client, (ix) showing a client
through a | 22 | | property being sold by an owner on his or her own behalf, or | 23 | | (x)
referral to another broker or service provider.
| 24 | | "Office" means a broker's place of business where the | 25 | | general
public is invited to transact business and where | 26 | | records may be maintained and
licenses displayed, whether or |
| | | HB5209 | - 11 - | LRB100 17392 XWW 32558 b |
|
| 1 | | not it is the broker's principal place of
business.
| 2 | | "Person" means and includes individuals, entities, | 3 | | corporations, limited
liability companies, registered limited | 4 | | liability partnerships, and
partnerships, foreign or domestic, | 5 | | except that when the context otherwise
requires, the term may | 6 | | refer to a single individual or other described entity.
| 7 | | "Personal assistant" means a licensed or unlicensed person | 8 | | who has been hired
for the purpose of aiding or assisting a | 9 | | sponsored licensee in the performance
of the sponsored | 10 | | licensee's job.
| 11 | | "Pocket card" means the card issued by the Department to | 12 | | signify that the person named
on the card is currently licensed | 13 | | under this Act.
| 14 | | "Pre-renewal period" means the period between the date of | 15 | | issue of a
currently valid license and the license's expiration | 16 | | date.
| 17 | | "Proctor" means any person, including, but not limited to, | 18 | | an instructor, who has a written agreement to administer | 19 | | examinations fairly and impartially with a licensed education | 20 | | provider. | 21 | | "Real estate" means and includes leaseholds as well as any | 22 | | other interest or
estate in land, whether corporeal, | 23 | | incorporeal, freehold, or non-freehold and whether the real | 24 | | estate is situated in this
State or elsewhere. "Real estate" | 25 | | does not include property sold, exchanged, or leased as a | 26 | | timeshare or similar vacation item or interest, vacation club |
| | | HB5209 | - 12 - | LRB100 17392 XWW 32558 b |
|
| 1 | | membership, or other activity formerly regulated under the Real | 2 | | Estate Timeshare Act of 1999 (repealed).
| 3 | | "Regular employee" means a person working an average of 20 | 4 | | hours per week for a person or entity who would be considered | 5 | | as an employee under the Internal Revenue Service eleven main | 6 | | tests in three categories being behavioral control, financial | 7 | | control and the type of relationship of the parties, formerly | 8 | | the twenty factor test.
| 9 | | "Secretary" means the Secretary of the Department of | 10 | | Financial and Professional Regulation, or a person authorized | 11 | | by the Secretary to act in the Secretary's stead. | 12 | | "Sponsoring broker" means the broker who sponsors has | 13 | | issued a sponsor card to a
licensed managing broker, broker, or | 14 | | a leasing agent.
| 15 | | "Sponsor card" means the temporary permit issued by the | 16 | | sponsoring broker certifying that the managing broker, broker,
| 17 | | or leasing agent named thereon is employed by or associated by | 18 | | written
agreement with the sponsoring broker, as provided for | 19 | | in Section
5-40 of this Act.
| 20 | | (Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18; | 21 | | 100-534, eff. 9-22-17; revised 10-2-17.)
| 22 | | (225 ILCS 454/5-10)
| 23 | | (Section scheduled to be repealed on January 1, 2020)
| 24 | | Sec. 5-10. Requirements for license as leasing agent; | 25 | | continuing education. |
| | | HB5209 | - 13 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (a) Every applicant for licensure as a leasing agent must | 2 | | meet the following qualifications: | 3 | | (1) be at least 18 years of age; | 4 | | (2) be of good moral
character; | 5 | | (3) successfully complete
a 4-year course of study in a | 6 | | high school or secondary school or an
equivalent course of
| 7 | | study approved by the Illinois State Board of Education; | 8 | | (4) personally take and pass a written
examination | 9 | | authorized by the Department sufficient to demonstrate the | 10 | | applicant's
knowledge of the
provisions of this Act | 11 | | relating to leasing agents and the applicant's
competence | 12 | | to engage in the
activities of a licensed leasing agent; | 13 | | (5) provide satisfactory evidence of having completed | 14 | | 15 hours of
instruction in an approved course of study | 15 | | relating to the leasing of residential real property. The | 16 | | Board shall recommend to the Department the number of hours | 17 | | each topic of study shall require. The
course of study | 18 | | shall, among other topics, cover
the provisions of this Act
| 19 | | applicable to leasing agents; fair housing issues relating | 20 | | to residential
leasing; advertising and marketing issues;
| 21 | | leases, applications, and credit reports; owner-tenant | 22 | | relationships and
owner-tenant laws; the handling of | 23 | | funds; and
environmental issues relating
to residential | 24 | | real
property; | 25 | | (6) complete any other requirements as set forth by | 26 | | rule; and
|
| | | HB5209 | - 14 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (7) present a valid application for issuance of an | 2 | | initial license accompanied by a sponsor card and the fees | 3 | | specified by rule. | 4 | | (b) No applicant shall engage in any of the activities | 5 | | covered by this Act until a valid sponsorship sponsor card has | 6 | | been recognized by the Department issued to such applicant . The | 7 | | sponsor card shall be valid for a maximum period of 45 days | 8 | | after the date of issuance unless extended for good cause as | 9 | | provided by rule. | 10 | | (c) Successfully completed course work, completed pursuant | 11 | | to the
requirements of this
Section, may be applied to the | 12 | | course work requirements to obtain a managing
broker's or
| 13 | | broker's license as provided by rule. The Board may
recommend | 14 | | to the Department and the Department may adopt requirements for | 15 | | approved courses, course
content, and the
approval of courses, | 16 | | instructors, and education providers, as well as education | 17 | | provider and instructor
fees. The Department may
establish | 18 | | continuing education requirements for licensed leasing agents, | 19 | | by
rule, consistent with the language and intent of this Act, | 20 | | with the advice of
the Board.
| 21 | | (d) The continuing education requirement for leasing | 22 | | agents shall consist of a single core curriculum to be | 23 | | established by the Department as recommended by the Board. | 24 | | Leasing agents shall be required to complete no less than 6 | 25 | | hours of continuing education in the core curriculum for each | 26 | | 2-year renewal period. |
| | | HB5209 | - 15 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18 .)
| 2 | | (225 ILCS 454/5-15)
| 3 | | (Section scheduled to be repealed on January 1, 2020)
| 4 | | Sec. 5-15. Necessity of managing broker, broker, or leasing | 5 | | agent license
or sponsor card ; ownership
restrictions. | 6 | | (a) It is unlawful for any person, corporation, limited | 7 | | liability company,
registered limited liability partnership, | 8 | | or partnership to act as
a managing broker, broker, or leasing | 9 | | agent or to advertise
or assume to act as such
managing broker, | 10 | | broker or leasing agent until a valid sponsorship has been | 11 | | recognized by the Department without a properly issued sponsor | 12 | | card or
a license issued
under this Act by the Department, | 13 | | either directly or through its authorized designee .
| 14 | | (b) No corporation shall be granted a license or engage in | 15 | | the business or
capacity, either
directly or indirectly, of a | 16 | | broker, unless every officer of the
corporation who actively
| 17 | | participates in the real estate activities of the corporation | 18 | | holds a license
as a managing broker or broker
and unless every | 19 | | employee who acts as a managing broker, broker, or leasing | 20 | | agent for the
corporation holds a
license as a managing broker, | 21 | | broker, or leasing agent.
| 22 | | (c) No partnership shall be granted a license or engage in | 23 | | the business or
serve in the capacity,
either directly or | 24 | | indirectly, of a broker, unless every general
partner in the | 25 | | partnership
holds a license as a managing broker or broker and |
| | | HB5209 | - 16 - | LRB100 17392 XWW 32558 b |
|
| 1 | | unless every employee who acts as a
managing broker, broker, or
| 2 | | leasing agent for the partnership holds a license as a managing | 3 | | broker, broker,
or leasing
agent. In the case of a registered | 4 | | limited liability partnership (LLP), every
partner in the LLP
| 5 | | must hold a license as a managing broker or broker and every | 6 | | employee who acts as a
managing broker, broker, or leasing
| 7 | | agent must hold a license as a managing broker, broker, or | 8 | | leasing
agent.
| 9 | | (d) No limited liability company shall be granted a license | 10 | | or engage in the
business or serve in
the capacity, either | 11 | | directly or indirectly, of a broker unless
every manager in
the | 12 | | limited liability company or every member in a member managed | 13 | | limited liability company holds a license as a managing broker | 14 | | or broker and
unless every other member and employee who
acts | 15 | | as a managing broker, broker, or leasing agent for the limited | 16 | | liability company holds
a license as a managing broker, broker, | 17 | | or leasing agent.
| 18 | | (e) No partnership, limited liability company, or | 19 | | corporation shall be
licensed to conduct a
brokerage business | 20 | | where an individual leasing agent, or group
of
leasing agents, | 21 | | owns or directly or indirectly controls more than 49% of the
| 22 | | shares of stock or
other ownership in the partnership, limited | 23 | | liability company, or corporation.
| 24 | | (Source: P.A. 99-227, eff. 8-3-15.)
| 25 | | (225 ILCS 454/5-27) |
| | | HB5209 | - 17 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (Section scheduled to be repealed on January 1, 2020) | 2 | | Sec. 5-27. Requirements for licensure as a broker. | 3 | | (a) Every applicant for licensure as a broker must meet the | 4 | | following qualifications: | 5 | | (1) Be at least 21 years of age. The minimum age of 21 | 6 | | years shall be waived for any person seeking a license as a | 7 | | broker who has attained the age of 18 and can provide | 8 | | evidence of the successful completion of at least 4 | 9 | | semesters of post-secondary school study as a full-time | 10 | | student or the equivalent, with major emphasis on real | 11 | | estate courses, in a school approved by the Department; | 12 | | (2) Be of good moral character; | 13 | | (3) Successfully complete a 4-year course of study in a | 14 | | high school or secondary school approved by the Illinois | 15 | | State Board of Education or an equivalent course of study | 16 | | as determined by an examination conducted by the Illinois | 17 | | State Board of Education which shall be verified under oath | 18 | | by the applicant; | 19 | | (4) (Blank); | 20 | | (5) Provide satisfactory evidence of having completed | 21 | | 90 hours of instruction in real estate courses approved by | 22 | | the Department, 15 hours of which must consist of | 23 | | situational and case studies presented in the classroom or | 24 | | by live, interactive webinar or online distance education | 25 | | courses; | 26 | | (6) Personally take and pass a written examination |
| | | HB5209 | - 18 - | LRB100 17392 XWW 32558 b |
|
| 1 | | authorized by the Department; | 2 | | (7) Present a valid application for issuance of a | 3 | | license accompanied by a sponsor card and the fees | 4 | | specified by rule. | 5 | | (b) The requirements specified in items (3) and (5) of | 6 | | subsection (a) of this Section do not apply to applicants who | 7 | | are currently admitted to practice law by the Supreme Court of | 8 | | Illinois and are currently in active standing. | 9 | | (c) No applicant shall engage in any of the activities | 10 | | covered by this Act until a valid sponsorship has been | 11 | | recognized by the Department sponsor card has been issued to | 12 | | such applicant . The sponsor card shall be valid for a maximum | 13 | | period of 45 days after the date of issuance unless extended | 14 | | for good cause as provided by rule. | 15 | | (d) All licenses should be readily available to the public | 16 | | at their place of business.
| 17 | | (e) An individual holding an active license as a managing | 18 | | broker may return the license to the Department along with a | 19 | | form provided by the Department and shall be issued a broker's | 20 | | license in exchange. Any individual obtaining a broker's | 21 | | license under this subsection (e) shall be considered as having | 22 | | obtained a broker's license by education and passing the | 23 | | required test and shall be treated as such in determining | 24 | | compliance with this Act. | 25 | | (Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18 .) |
| | | HB5209 | - 19 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (225 ILCS 454/5-28) | 2 | | (Section scheduled to be repealed on January 1, 2020) | 3 | | Sec. 5-28. Requirements for licensure as a managing broker. | 4 | | (a) Every applicant for licensure as a managing broker must | 5 | | meet the following qualifications: | 6 | | (1) be at least 21 years of age; | 7 | | (2) be of good moral character; | 8 | | (3) have been licensed at least 2 out of the preceding | 9 | | 3 years as a broker; | 10 | | (4) successfully complete a 4-year course of study in | 11 | | high school or secondary school approved by the Illinois | 12 | | State Board of Education or an equivalent course of study | 13 | | as determined by an examination conducted by the Illinois | 14 | | State Board of Education, which shall be verified under | 15 | | oath by the applicant; | 16 | | (5) provide satisfactory evidence of having completed | 17 | | at least 165 hours, 120 of which shall be those hours | 18 | | required pre and post-licensure to obtain a broker's | 19 | | license, and 45 additional hours completed within the year | 20 | | immediately preceding the filing of an application for a | 21 | | managing broker's license, which hours shall focus on | 22 | | brokerage administration and management and leasing agent | 23 | | management and include at least 15 hours in the classroom | 24 | | or by live, interactive webinar or online distance | 25 | | education courses; | 26 | | (6) personally take and pass a written examination |
| | | HB5209 | - 20 - | LRB100 17392 XWW 32558 b |
|
| 1 | | authorized by the Department; and | 2 | | (7) present a valid application for issuance of a | 3 | | license accompanied by a sponsor card, an appointment as a | 4 | | managing broker, and the fees specified by rule. | 5 | | (b) The requirements specified in item (5) of subsection | 6 | | (a) of this Section do not apply to applicants who are | 7 | | currently admitted to practice law by the Supreme Court of | 8 | | Illinois and are currently in active standing. | 9 | | (c) No applicant shall act as a managing broker for more | 10 | | than 90 days after an appointment as a managing broker has been | 11 | | filed with the Department without obtaining a managing broker's | 12 | | license.
| 13 | | (Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18 .)
| 14 | | (225 ILCS 454/5-40)
| 15 | | (Section scheduled to be repealed on January 1, 2020)
| 16 | | Sec. 5-40. Sponsorship and Sponsor card; termination | 17 | | indicated by license endorsement;
association
with new broker. | 18 | | (a) The sponsoring broker shall notify prepare upon forms | 19 | | provided by the Department of and
deliver to each
licensee | 20 | | employed by or associated with the sponsoring broker within 24 | 21 | | hours of sponsorship in a manner provided by rule. a sponsor | 22 | | card
certifying that the
person whose name appears thereon is | 23 | | in fact employed by or associated with the
sponsoring
broker . | 24 | | The sponsoring broker shall send
a duplicate of each sponsor | 25 | | card,
along with a valid
license or other authorization as |
| | | HB5209 | - 21 - | LRB100 17392 XWW 32558 b |
|
| 1 | | provided by rule and the appropriate fee, to the Department
| 2 | | within 24 hours
of issuance of the sponsor card. It is a | 3 | | violation of this Act for any broker
to issue a sponsor card to
| 4 | | any licensee or applicant unless the licensee or applicant | 5 | | presents in hand a
valid license or other
authorization as | 6 | | provided by rule.
| 7 | | (b) When a licensee terminates his or her employment or | 8 | | association with a
sponsoring broker
or the employment is | 9 | | terminated by the sponsoring broker, the licensee and | 10 | | sponsoring broker shall
obtain from the
sponsoring broker his | 11 | | or her license endorsed by the sponsoring broker
indicating the
| 12 | | termination. The
sponsoring broker shall surrender to the | 13 | | Department a copy of the license of the
licensee within 2 days | 14 | | of
the termination or shall notify the Department in writing of | 15 | | the termination within 24 hours in a manner provided by rule | 16 | | and
explain why a copy of
the license is not surrendered . | 17 | | Failure of the sponsoring broker or licensee to notify the | 18 | | Department of the termination within 24 hours surrender
the | 19 | | license shall
subject the sponsoring broker or licensee to | 20 | | discipline under Section 20-20 of this Act.
The
license of any | 21 | | licensee
whose association with a sponsoring broker is | 22 | | terminated shall automatically
become inoperative
immediately | 23 | | upon the termination and the licensee shall not be authorized | 24 | | to practice until a new valid sponsorship has been recognized | 25 | | by the Department unless the licensee accepts employment or
| 26 | | becomes associated
with a new sponsoring broker pursuant to |
| | | HB5209 | - 22 - | LRB100 17392 XWW 32558 b |
|
| 1 | | subsection (c) of this Section .
| 2 | | (c) (Blank). When a licensee accepts employment or | 3 | | association with a new sponsoring
broker, the new
sponsoring | 4 | | broker shall send to the Department a duplicate sponsor card, | 5 | | along with the
licensee's endorsed
license or an affidavit of | 6 | | the licensee of why the endorsed license is not
surrendered, | 7 | | and shall pay
the appropriate fee prescribed by rule to cover | 8 | | administrative expenses
attendant to the changes in
the | 9 | | registration of the licensee.
| 10 | | (Source: P.A. 96-856, eff. 12-31-09.)
| 11 | | (225 ILCS 454/5-50)
| 12 | | (Section scheduled to be repealed on January 1, 2020)
| 13 | | Sec. 5-50. Expiration and renewal of managing broker, | 14 | | broker, or
leasing agent license; sponsoring broker;
register | 15 | | of licensees; pocket card. | 16 | | (a) The expiration date and renewal period for each license | 17 | | issued under
this Act shall be set by
rule. Except as otherwise | 18 | | provided in this Section, the holder of
a
license may renew
the | 19 | | license within 90 days preceding the expiration date thereof by | 20 | | completing the continuing education required by this Act and | 21 | | paying the
fees specified by
rule.
| 22 | | (b) An individual whose first license is that of a broker | 23 | | received on or after the effective date of this amendatory Act | 24 | | of the 100th General Assembly, must provide evidence of having | 25 | | completed 30 hours of post-license education in courses |
| | | HB5209 | - 23 - | LRB100 17392 XWW 32558 b |
|
| 1 | | recommended by the Board and approved by the Department, 15 | 2 | | hours of which must consist of situational and case studies | 3 | | presented in a classroom or a live, interactive webinar, online | 4 | | distance education course, or home study course. Credit for | 5 | | courses taken through a home study course shall require passage | 6 | | of an examination approved by the Department prior to the first | 7 | | renewal of their broker's license.
| 8 | | (c) Any managing broker, broker, or leasing agent whose | 9 | | license under this Act has expired shall be eligible to renew | 10 | | the license during the 2-year period following the expiration | 11 | | date, provided the managing broker, broker, or leasing agent | 12 | | pays the fees as prescribed by rule and completes continuing | 13 | | education and other requirements provided for by the Act or by | 14 | | rule. Beginning on May 1, 2012, a managing broker licensee, | 15 | | broker, or leasing agent whose license has been expired for | 16 | | more than 2 years but less than 5 years may have it restored by | 17 | | (i) applying to the Department, (ii) paying the required fee, | 18 | | (iii) completing the continuing education requirements for the | 19 | | most recent pre-renewal period that ended prior to the date of | 20 | | the application for reinstatement, and (iv) filing acceptable | 21 | | proof of fitness to have his or her license restored, as set by | 22 | | rule. A managing broker, broker, or leasing agent whose license | 23 | | has been expired for more than 5 years shall be required to | 24 | | meet the requirements for a new license.
| 25 | | (d) Notwithstanding any other provisions of this Act to the | 26 | | contrary, any managing broker, broker, or leasing agent whose |
| | | HB5209 | - 24 - | LRB100 17392 XWW 32558 b |
|
| 1 | | license expired while he or she was (i) on active duty with the | 2 | | Armed Forces of the United States or called into service or | 3 | | training by the state militia, (ii) engaged in training or | 4 | | education under the supervision of the United States | 5 | | preliminary to induction into military service, or (iii) | 6 | | serving as the Coordinator of Real Estate in the State of | 7 | | Illinois or as an employee of the Department may have his or | 8 | | her license renewed, reinstated or restored without paying any | 9 | | lapsed renewal fees if within 2 years after the termination of | 10 | | the service, training or education by furnishing the Department | 11 | | with satisfactory evidence of service, training, or education | 12 | | and it has been terminated under honorable conditions. | 13 | | (e) The Department shall establish and
maintain a register | 14 | | of all persons currently licensed by the
State and shall issue | 15 | | and prescribe a form of pocket card. Upon payment by a licensee | 16 | | of the appropriate fee as prescribed by
rule for engagement in | 17 | | the activity for which the licensee is
qualified and holds a | 18 | | license for the current period, the
Department shall issue a | 19 | | pocket card to the licensee. The
pocket card shall be | 20 | | verification that the required fee for the
current period has | 21 | | been paid and shall indicate that the person named thereon is | 22 | | licensed for the current renewal period as a
managing broker, | 23 | | broker, or leasing agent as the
case may be. The pocket card | 24 | | shall further indicate that the
person named thereon is | 25 | | authorized by the Department to
engage in the licensed activity | 26 | | appropriate for his or her
status (managing broker, broker, or |
| | | HB5209 | - 25 - | LRB100 17392 XWW 32558 b |
|
| 1 | | leasing
agent). Each licensee shall carry on his or her person | 2 | | his or
her pocket card or, if such pocket card has not yet been
| 3 | | issued, a properly issued sponsor card when engaging in any
| 4 | | licensed activity and shall display the same on demand. | 5 | | (f) The Department shall provide to the sponsoring broker a | 6 | | notice of renewal for all sponsored licensees by mailing the | 7 | | notice to the sponsoring broker's address of record, or, at the | 8 | | Department's discretion, by an electronic means as provided for | 9 | | by rule. | 10 | | (g) Upon request from the sponsoring broker, the Department | 11 | | shall make available to the sponsoring broker, either by mail | 12 | | or by an electronic means at the discretion of the Department, | 13 | | a listing of licensees under this Act who, according to the | 14 | | records of the Department, are sponsored by that broker. Every | 15 | | licensee associated with or employed by a broker whose license | 16 | | is revoked, suspended, terminated, or expired shall be | 17 | | considered as inoperative until such time as the sponsoring | 18 | | broker's license is reinstated or renewed or a new valid | 19 | | sponsorship has been recognized by the Department , or the | 20 | | licensee changes employment as set forth in subsection (c) of | 21 | | Section 5-40 of this Act . | 22 | | (Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18 .)
| 23 | | (225 ILCS 454/20-20)
| 24 | | (Section scheduled to be repealed on January 1, 2020)
| 25 | | Sec. 20-20. Grounds for discipline. |
| | | HB5209 | - 26 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (a) The Department may refuse to issue or renew a license, | 2 | | may place on probation, suspend,
or
revoke any
license, | 3 | | reprimand, or take any other disciplinary or non-disciplinary | 4 | | action as the Department may deem proper and impose a
fine not | 5 | | to exceed
$25,000 upon any licensee or applicant under this Act | 6 | | or any person who holds himself or herself out as an applicant | 7 | | or licensee or against a licensee in handling his or her own | 8 | | property, whether held by deed, option, or otherwise, for any | 9 | | one or any combination of the
following causes:
| 10 | | (1) Fraud or misrepresentation in applying for, or | 11 | | procuring, a license under this Act or in connection with | 12 | | applying for renewal of a license under this Act.
| 13 | | (2) The conviction of or plea of guilty or plea of nolo | 14 | | contendere to a felony or misdemeanor in this State or any | 15 | | other jurisdiction; or the entry of an administrative | 16 | | sanction by a government agency in this State or any other | 17 | | jurisdiction. Action taken under this paragraph (2) for a | 18 | | misdemeanor or an administrative sanction is limited to a | 19 | | misdemeanor or administrative sanction that has as an
| 20 | | essential element dishonesty or fraud or involves larceny, | 21 | | embezzlement,
or obtaining money, property, or credit by | 22 | | false pretenses or by means of a
confidence
game.
| 23 | | (3) Inability to practice the profession with | 24 | | reasonable judgment, skill, or safety as a result of a | 25 | | physical illness, including, but not limited to, | 26 | | deterioration through the aging process or loss of motor |
| | | HB5209 | - 27 - | LRB100 17392 XWW 32558 b |
|
| 1 | | skill, or a mental illness or disability.
| 2 | | (4) Practice under this Act as a licensee in a retail | 3 | | sales establishment from an office, desk, or space that
is | 4 | | not
separated from the main retail business by a separate | 5 | | and distinct area within
the
establishment.
| 6 | | (5) Having been disciplined by another state, the | 7 | | District of Columbia, a territory, a foreign nation, or a | 8 | | governmental agency authorized to impose discipline if at | 9 | | least one of the grounds for that discipline is the same as | 10 | | or
the
equivalent of one of the grounds for which a | 11 | | licensee may be disciplined under this Act. A certified | 12 | | copy of the record of the action by the other state or | 13 | | jurisdiction shall be prima facie evidence thereof.
| 14 | | (6) Engaging in the practice of real estate brokerage
| 15 | | without a
license or after the licensee's license or | 16 | | temporary permit was expired or while the license was
| 17 | | inoperative.
| 18 | | (7) Cheating on or attempting to subvert the Real
| 19 | | Estate License Exam or continuing education exam. | 20 | | (8) Aiding or abetting an applicant
to
subvert or cheat | 21 | | on the Real Estate License Exam or continuing education | 22 | | exam
administered pursuant to this Act.
| 23 | | (9) Advertising that is inaccurate, misleading, or | 24 | | contrary to the provisions of the Act.
| 25 | | (10) Making any substantial misrepresentation or | 26 | | untruthful advertising.
|
| | | HB5209 | - 28 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (11) Making any false promises of a character likely to | 2 | | influence,
persuade,
or induce.
| 3 | | (12) Pursuing a continued and flagrant course of | 4 | | misrepresentation or the
making
of false promises through | 5 | | licensees, employees, agents, advertising, or
otherwise.
| 6 | | (13) Any misleading or untruthful advertising, or | 7 | | using any trade name or
insignia of membership in any real | 8 | | estate organization of which the licensee is
not a member.
| 9 | | (14) Acting for more than one party in a transaction | 10 | | without providing
written
notice to all parties for whom | 11 | | the licensee acts.
| 12 | | (15) Representing or attempting to represent a broker | 13 | | other than the
sponsoring broker.
| 14 | | (16) Failure to account for or to remit any moneys or | 15 | | documents coming into
his or her possession that belong to | 16 | | others.
| 17 | | (17) Failure to maintain and deposit in a special | 18 | | account, separate and
apart from
personal and other | 19 | | business accounts, all escrow moneys belonging to others
| 20 | | entrusted to a licensee
while acting as a broker, escrow | 21 | | agent, or temporary custodian of
the funds of others or
| 22 | | failure to maintain all escrow moneys on deposit in the | 23 | | account until the
transactions are
consummated or | 24 | | terminated, except to the extent that the moneys, or any | 25 | | part
thereof, shall be: | 26 | | (A)
disbursed prior to the consummation or |
| | | HB5209 | - 29 - | LRB100 17392 XWW 32558 b |
|
| 1 | | termination (i) in accordance with
the
written | 2 | | direction of
the principals to the transaction or their | 3 | | duly authorized agents, (ii) in accordance with
| 4 | | directions providing for the
release, payment, or | 5 | | distribution of escrow moneys contained in any written
| 6 | | contract signed by the
principals to the transaction or | 7 | | their duly authorized agents,
or (iii)
pursuant to an | 8 | | order of a court of competent
jurisdiction; or | 9 | | (B) deemed abandoned and transferred to the Office | 10 | | of the State Treasurer to be handled as unclaimed | 11 | | property pursuant to the Revised Uniform Unclaimed | 12 | | Property Act. Escrow moneys may be deemed abandoned | 13 | | under this subparagraph (B) only: (i) in the absence of | 14 | | disbursement under subparagraph (A); (ii) in the | 15 | | absence of notice of the filing of any claim in a court | 16 | | of competent jurisdiction; and (iii) if 6 months have | 17 | | elapsed after the receipt of a written demand for the | 18 | | escrow moneys from one of the principals to the | 19 | | transaction or the principal's duly authorized agent.
| 20 | | The account
shall be noninterest
bearing, unless the | 21 | | character of the deposit is such that payment of interest
| 22 | | thereon is otherwise
required by law or unless the | 23 | | principals to the transaction specifically
require, in | 24 | | writing, that the
deposit be placed in an interest bearing | 25 | | account.
| 26 | | (18) Failure to make available to the Department all |
| | | HB5209 | - 30 - | LRB100 17392 XWW 32558 b |
|
| 1 | | escrow records and related documents
maintained in | 2 | | connection
with the practice of real estate within 24 hours | 3 | | of a request for those
documents by Department personnel.
| 4 | | (19) Failing to furnish copies upon request of | 5 | | documents relating to a
real
estate transaction to a party | 6 | | who has executed that document.
| 7 | | (20) Failure of a sponsoring broker or licensee to | 8 | | timely provide sponsorship or termination of sponsorship | 9 | | information , sponsor
cards,
or termination of licenses to | 10 | | the Department.
| 11 | | (21) Engaging in dishonorable, unethical, or | 12 | | unprofessional conduct of a
character
likely to deceive, | 13 | | defraud, or harm the public.
| 14 | | (22) Commingling the money or property of others with | 15 | | his or her own money or property.
| 16 | | (23) Employing any person on a purely temporary or | 17 | | single deal basis as a
means
of evading the law regarding | 18 | | payment of commission to nonlicensees on some
contemplated
| 19 | | transactions.
| 20 | | (24) Permitting the use of his or her license as a | 21 | | broker to enable a
leasing agent or
unlicensed person to | 22 | | operate a real estate business without actual
| 23 | | participation therein and control
thereof by the broker.
| 24 | | (25) Any other conduct, whether of the same or a | 25 | | different character from
that
specified in this Section, | 26 | | that constitutes dishonest dealing.
|
| | | HB5209 | - 31 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (26) Displaying a "for rent" or "for sale" sign on any | 2 | | property without
the written
consent of an owner or his or | 3 | | her duly authorized agent or advertising by any
means that | 4 | | any property is
for sale or for rent without the written | 5 | | consent of the owner or his or her
authorized agent.
| 6 | | (27) Failing to provide information requested by the | 7 | | Department, or otherwise respond to that request, within 30 | 8 | | days of
the
request.
| 9 | | (28) Advertising by means of a blind advertisement, | 10 | | except as otherwise
permitted in Section 10-30 of this Act.
| 11 | | (29) Offering guaranteed sales plans, as defined in | 12 | | clause (A) of
this subdivision (29), except to
the extent | 13 | | hereinafter set forth:
| 14 | | (A) A "guaranteed sales plan" is any real estate | 15 | | purchase or sales plan
whereby a licensee enters into a | 16 | | conditional or unconditional written contract
with a | 17 | | seller, prior to entering into a brokerage agreement | 18 | | with the seller, by the
terms of which a licensee | 19 | | agrees to purchase a property of the seller within a
| 20 | | specified period of time
at a specific price in the | 21 | | event the property is not sold in accordance with
the | 22 | | terms of a brokerage agreement to be entered into | 23 | | between the sponsoring broker and the seller.
| 24 | | (B) A licensee offering a guaranteed sales plan | 25 | | shall provide the
details
and conditions of the plan in | 26 | | writing to the party to whom the plan is
offered.
|
| | | HB5209 | - 32 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (C) A licensee offering a guaranteed sales plan | 2 | | shall provide to the
party
to whom the plan is offered | 3 | | evidence of sufficient financial resources to
satisfy | 4 | | the commitment to
purchase undertaken by the broker in | 5 | | the plan.
| 6 | | (D) Any licensee offering a guaranteed sales plan | 7 | | shall undertake to
market the property of the seller | 8 | | subject to the plan in the same manner in
which the | 9 | | broker would
market any other property, unless the | 10 | | agreement with the seller provides
otherwise.
| 11 | | (E) The licensee cannot purchase seller's property | 12 | | until the brokerage agreement has ended according to | 13 | | its terms or is otherwise terminated. | 14 | | (F) Any licensee who fails to perform on a | 15 | | guaranteed sales plan in
strict accordance with its | 16 | | terms shall be subject to all the penalties provided
in | 17 | | this Act for
violations thereof and, in addition, shall | 18 | | be subject to a civil fine payable
to the party injured | 19 | | by the
default in an amount of up to $25,000.
| 20 | | (30) Influencing or attempting to influence, by any | 21 | | words or acts, a
prospective
seller, purchaser, occupant, | 22 | | landlord, or tenant of real estate, in connection
with | 23 | | viewing, buying, or
leasing real estate, so as to promote | 24 | | or tend to promote the continuance
or maintenance of
| 25 | | racially and religiously segregated housing or so as to | 26 | | retard, obstruct, or
discourage racially
integrated |
| | | HB5209 | - 33 - | LRB100 17392 XWW 32558 b |
|
| 1 | | housing on or in any street, block, neighborhood, or | 2 | | community.
| 3 | | (31) Engaging in any act that constitutes a violation | 4 | | of any provision of
Article 3 of the Illinois Human Rights | 5 | | Act, whether or not a complaint has
been filed with or
| 6 | | adjudicated by the Human Rights Commission.
| 7 | | (32) Inducing any party to a contract of sale or lease | 8 | | or brokerage
agreement to
break the contract of sale or | 9 | | lease or brokerage agreement for the purpose of
| 10 | | substituting, in lieu
thereof, a new contract for sale or | 11 | | lease or brokerage agreement with a third
party.
| 12 | | (33) Negotiating a sale, exchange, or lease of real | 13 | | estate directly with
any person
if the licensee knows that | 14 | | the person has an exclusive brokerage
agreement with | 15 | | another
broker, unless specifically authorized by that | 16 | | broker.
| 17 | | (34) When a licensee is also an attorney, acting as the | 18 | | attorney for
either the
buyer or the seller in the same | 19 | | transaction in which the licensee is acting or
has acted as | 20 | | a managing broker
or broker.
| 21 | | (35) Advertising or offering merchandise or services | 22 | | as free if any
conditions or
obligations necessary for | 23 | | receiving the merchandise or services are not
disclosed in | 24 | | the same
advertisement or offer. These conditions or | 25 | | obligations include without
limitation the
requirement | 26 | | that the recipient attend a promotional activity or visit a |
| | | HB5209 | - 34 - | LRB100 17392 XWW 32558 b |
|
| 1 | | real
estate site. As used in this
subdivision (35), "free" | 2 | | includes terms such as "award", "prize", "no charge",
"free | 3 | | of charge",
"without charge", and similar words or phrases | 4 | | that reasonably lead a person to
believe that he or she
may | 5 | | receive or has been selected to receive something of value, | 6 | | without any
conditions or
obligations on the part of the | 7 | | recipient.
| 8 | | (36) (Blank).
| 9 | | (37) Violating the terms of a disciplinary order
issued | 10 | | by the Department.
| 11 | | (38) Paying or failing to disclose compensation in | 12 | | violation of Article 10 of this Act.
| 13 | | (39) Requiring a party to a transaction who is not a | 14 | | client of the
licensee
to allow the licensee to retain a | 15 | | portion of the escrow moneys for payment of
the licensee's | 16 | | commission or expenses as a condition for release of the | 17 | | escrow
moneys to that party.
| 18 | | (40) Disregarding or violating any provision of this | 19 | | Act or the published
rules
promulgated by the Department to | 20 | | enforce this Act or aiding or abetting any individual,
| 21 | | partnership, registered limited liability partnership, | 22 | | limited liability
company, or corporation in
disregarding | 23 | | any provision of this Act or the published rules | 24 | | promulgated by the Department
to enforce this Act.
| 25 | | (41) Failing to provide the minimum services required | 26 | | by Section 15-75 of this Act when acting under an exclusive |
| | | HB5209 | - 35 - | LRB100 17392 XWW 32558 b |
|
| 1 | | brokerage agreement.
| 2 | | (42) Habitual or excessive use or addiction to alcohol, | 3 | | narcotics, stimulants, or any other chemical agent or drug | 4 | | that results in a managing broker, broker, or leasing | 5 | | agent's inability to practice with reasonable skill or | 6 | | safety. | 7 | | (43) Enabling, aiding, or abetting an auctioneer, as | 8 | | defined in the Auction License Act, to conduct a real | 9 | | estate auction in a manner that is in violation of this | 10 | | Act. | 11 | | (44) Permitting any leasing agent or temporary leasing | 12 | | agent permit holder to engage in activities that require a | 13 | | broker's or managing broker's license. | 14 | | (b) The Department may refuse to issue or renew or may | 15 | | suspend the license of any person who fails to file a return, | 16 | | pay the tax, penalty or interest shown in a filed return, or | 17 | | pay any final assessment of tax, penalty, or interest, as | 18 | | required by any tax Act administered by the Department of | 19 | | Revenue, until such time as the requirements of that tax Act | 20 | | are satisfied in accordance with subsection (g) of Section | 21 | | 2105-15 of the Civil Administrative Code of Illinois. | 22 | | (c) The Department shall deny a license or renewal | 23 | | authorized by this Act to a person who has defaulted on an | 24 | | educational loan or scholarship provided or guaranteed by the | 25 | | Illinois Student Assistance Commission or any governmental | 26 | | agency of this State in accordance with item (5) of subsection |
| | | HB5209 | - 36 - | LRB100 17392 XWW 32558 b |
|
| 1 | | (a) of Section 2105-15 of the Civil Administrative Code of | 2 | | Illinois. | 3 | | (d) In cases where the Department of Healthcare and Family | 4 | | Services (formerly Department of Public Aid) has previously | 5 | | determined that a licensee or a potential licensee is more than | 6 | | 30 days delinquent in the payment of child support and has | 7 | | subsequently certified the delinquency to the Department may | 8 | | refuse to issue or renew or may revoke or suspend that person's | 9 | | license or may take other disciplinary action against that | 10 | | person based solely upon the certification of delinquency made | 11 | | by the Department of Healthcare and Family Services in | 12 | | accordance with item (5) of subsection (a) of Section 2105-15 | 13 | | of the Civil Administrative Code of Illinois. | 14 | | (e) In enforcing this Section, the Department or Board upon | 15 | | a showing of a possible violation may compel an individual | 16 | | licensed to practice under this Act, or who has applied for | 17 | | licensure under this Act, to submit to a mental or physical | 18 | | examination, or both, as required by and at the expense of the | 19 | | Department. The Department or Board may order the examining | 20 | | physician to present testimony concerning the mental or | 21 | | physical examination of the licensee or applicant. No | 22 | | information shall be excluded by reason of any common law or | 23 | | statutory privilege relating to communications between the | 24 | | licensee or applicant and the examining physician. The | 25 | | examining physicians shall be specifically designated by the | 26 | | Board or Department. The individual to be examined may have, at |
| | | HB5209 | - 37 - | LRB100 17392 XWW 32558 b |
|
| 1 | | his or her own expense, another physician of his or her choice | 2 | | present during all aspects of this examination. Failure of an | 3 | | individual to submit to a mental or physical examination, when | 4 | | directed, shall be grounds for suspension of his or her license | 5 | | until the individual submits to the examination if the | 6 | | Department finds, after notice and hearing, that the refusal to | 7 | | submit to the examination was without reasonable cause. | 8 | | If the Department or Board finds an individual unable to | 9 | | practice because of the reasons set forth in this Section, the | 10 | | Department or Board may require that individual to submit to | 11 | | care, counseling, or treatment by physicians approved or | 12 | | designated by the Department or Board, as a condition, term, or | 13 | | restriction for continued, reinstated, or renewed licensure to | 14 | | practice; or, in lieu of care, counseling, or treatment, the | 15 | | Department may file, or the Board may recommend to the | 16 | | Department to file, a complaint to immediately suspend, revoke, | 17 | | or otherwise discipline the license of the individual. An | 18 | | individual whose license was granted, continued, reinstated, | 19 | | renewed, disciplined or supervised subject to such terms, | 20 | | conditions, or restrictions, and who fails to comply with such | 21 | | terms, conditions, or restrictions, shall be referred to the | 22 | | Secretary for a determination as to whether the individual | 23 | | shall have his or her license suspended immediately, pending a | 24 | | hearing by the Department. | 25 | | In instances in which the Secretary immediately suspends a | 26 | | person's license under this Section, a hearing on that person's |
| | | HB5209 | - 38 - | LRB100 17392 XWW 32558 b |
|
| 1 | | license must be convened by the Department within 30 days after | 2 | | the suspension and completed without appreciable delay. The | 3 | | Department and Board shall have the authority to review the | 4 | | subject individual's record of treatment and counseling | 5 | | regarding the impairment to the extent permitted by applicable | 6 | | federal statutes and regulations safeguarding the | 7 | | confidentiality of medical records. | 8 | | An individual licensed under this Act and affected under | 9 | | this Section shall be afforded an opportunity to demonstrate to | 10 | | the Department or Board that he or she can resume practice in | 11 | | compliance with acceptable and prevailing standards under the | 12 | | provisions of his or her license. | 13 | | (Source: P.A. 99-227, eff. 8-3-15; 100-22, eff. 1-1-18; | 14 | | 100-188, eff. 1-1-18; 100-534, eff. 9-22-17; revised 10-2-17.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
|
|