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90_HB1214enr
New Act
5 ILCS 80/4.18 new
225 ILCS 455/15 from Ch. 111, par. 5815
225 ILCS 455/23 from Ch. 111, par. 5823
225 ILCS 455/Art. 2 rep.
Creates the Real Estate Appraiser Licensing Act to
regulate the practice of real estate appraisal through
licensing requirements. Repeals Article 2 of the Real Estate
License Act of 1983. Amends the Regulatory Agency Sunset Act
to sunset the new Act on January 1, 2008. Effective October
1, 1997.
LRB9003012DPccB
HB1214 Enrolled LRB9003012DPccB
1 AN ACT to create the Real Estate Appraiser Licensing Act.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Real Estate Appraiser Licensing Act.
6 Section 5. Legislative purpose. The purpose of this Act
7 is to repeal and replace Article 2 of the Real Estate License
8 Act of 1983 and, in order to protect the public, to require
9 real estate appraisers in federally related transactions to
10 obtain a real estate appraiser license. It is the intent of
11 the General Assembly that this Act be consistent with the
12 provisions of Title XI of the federal Financial Institutions
13 Reform, Recovery and Enforcement Act of 1989, Title VIII of
14 the Civil Rights Act of 1968 (Fair Housing Act), and the
15 Illinois Human Rights Act.
16 Section 10. Definitions. As used in this Act:
17 "Appraisal" means an analysis, opinion or conclusion
18 relating to the nature, quality, value or utility of
19 specified interests in, or aspects of, identified real
20 estate, for or in expectation of compensation. An appraisal
21 may be classified by purpose into either a valuation or an
22 analysis. A "valuation" is an estimate of the value of real
23 estate or real property. An "analysis" is a study of real
24 estate or real property other than estimating value.
25 "Appraisal assignment" means an engagement for which an
26 appraiser is employed or retained to act, or would be
27 perceived by third parties or the public as acting, as a
28 disinterested third party in rendering an unbiased analysis,
29 opinion, or conclusion relating to the nature, quality,
30 value, or utility of specified interests in or aspects of
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1 identified real estate. "Appraisal assignment" includes
2 valuation work and analysis work.
3 "Appraiser" or "real estate appraiser" means a person who
4 performs appraisals.
5 "Commissioner" means the Commissioner of Banks and Real
6 Estate.
7 "Director" means the Director of the Real Estate
8 Appraisal Administration Division of the Office of Banks and
9 Real Estate.
10 "Federally related transaction" means any real estate
11 related financial transaction that requires a licensed or
12 certified real estate appraiser under federal law or
13 regulation.
14 "Financial institution" means a bank, savings bank,
15 savings and loan association, credit union, mortgage broker,
16 mortgage banker, licensee under the Consumer Installment Loan
17 Act or the Sales Finance Agency Act or a corporate fiduciary,
18 subsidiary, affiliate, parent company, or holding company of
19 any such licensee.
20 "Office" means the Office of Banks and Real Estate.
21 "Real estate" means an identified parcel or tract of
22 land, including improvements, if any.
23 "Real Estate Appraisal Board" or "Board" means the Real
24 Estate Appraisal Board established in this Act.
25 "Real estate related financial transaction" means any
26 transaction involving:
27 (1) the sale, lease, purchase, investment in
28 property or exchange of real property, or the financing
29 of the real property;
30 (2) the refinancing of real property or interests
31 in real property; or
32 (3) the use of real property or interests in
33 property as security for a loan or investment, including
34 but not limited to mortgage-backed securities.
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1 "Real property" means the interest, benefits, and rights
2 inherent in the ownership of real estate.
3 "Report" means any communication, written or oral, of an
4 appraisal, review, or consulting service that is transmitted
5 to a client of a licensee.
6 "State Certified Residential Real Estate Appraiser" means
7 a real estate appraiser who holds (i) a license issued for
8 that title under Article 2 of the Real Estate License Act of
9 1983 before the effective date of this Act, (ii) a license
10 issued under this Act upon application for examination
11 received by the Office before the effective date of this Act
12 but issued after that date, or (iii) a license issued for
13 that title under this Act.
14 "State Certified General Real Estate Appraiser" means a
15 real estate appraiser who holds (i) a license issued for that
16 title under Article 2 of the Real Estate License Act of 1983
17 before the effective date of this Act, (ii) a license issued
18 under this Act upon application for examination received by
19 the Office before the effective date of this Act but issued
20 after that date, or (iii) a license issued for that title
21 under this Act.
22 "State Licensed Real Estate Appraiser" means a real
23 estate appraiser who holds (i) an active license issued for
24 that title under Article 2 of the Real Estate License Act of
25 1983 before the effective date of this Act, (ii) a license
26 issued under this Act upon application for examination
27 received by the Office before the effective date of this Act
28 but issued after that date, or (iii) a license issued for
29 that title under this Act.
30 "Uniform Standards of Professional Appraisal Practice" or
31 "USPAP" means the standards of professional appraisal
32 practice as promulgated by the Appraisal Standards Board of
33 the Appraisal Foundation.
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1 Section 15. License requirement; title; exemptions.
2 (a) No person shall engage in the business of, act in
3 the capacity of, advertise, or assume to act as a real estate
4 appraiser, develop or report real estate appraisals, or
5 appraise real estate, in a federally related transaction,
6 without a license to practice as a real estate appraiser
7 issued by the Office under this Act. A person who violates
8 this subsection is guilty of a Class A misdemeanor.
9 (b) No person, other than a State Certified General Real
10 Estate Appraiser, State Certified Residential Real Estate
11 Appraiser, or State Licensed Real Estate Appraiser, shall
12 assume or use these titles or any other title, designation,
13 or abbreviation likely to create the impression that the
14 person is licensed by the State of Illinois as a real estate
15 appraiser.
16 Section 20. Director of Real Estate Appraisal
17 Administration.
18 (a) The Commissioner shall appoint a Director of Real
19 Estate Appraisal Administration. The person appointed as the
20 Director must hold either a current State Certified General
21 Real Estate Appraiser license or a current State Certified
22 Residential Real Estate Appraiser license and be a designated
23 member of at least one of the appraisal organizations that,
24 at the time of appointment, are represented on the Appraisal
25 Foundation. The Director shall be credited with all fees and
26 continuing education requirements that come due during the
27 term of employment.
28 (b) The Director shall:
29 (1) be the direct liaison between the Office of
30 Banks and Real Estate and the Real Estate Appraisal Board
31 and shall assist the Board in carrying out its functions
32 and duties under this Act;
33 (2) be the direct liaison between the Office of
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1 Banks and Real Estate and real estate appraisers, real
2 estate appraisal organizations, and other real estate
3 related organizations;
4 (3) administer the provisions of this Act, direct
5 and supervise the Real Estate Appraisal Administration
6 Division of the Office of Banks and Real Estate, subject
7 to the approval of the Commissioner;
8 (4) prepare and circulate to licensed appraisers
9 educational and informational materials that the Office
10 of Banks and Real Estate deems necessary for guidance or
11 assistance to licensed appraisers; and
12 (5) appoint committees and hire contractors as
13 necessary to assist in the administration and enforcement
14 of this Act.
15 Section 25. Real Estate Appraisal Board.
16 (a) There is hereby established the Real Estate
17 Appraisal Board which shall consist of the following 10
18 voting members appointed by the Governor:
19 (1) Seven members shall be real estate appraisers
20 who have been licensed real estate appraisers in the
21 State of Illinois for not less than 5 years immediately
22 preceding their appointment. Of those 7 members, at least
23 4 members shall be State Certified General Real Estate
24 Appraisers or State Certified Residential Real Estate
25 Appraisers and at least 2 members shall be State
26 Certified General Real Estate Appraisers. At least 2 of
27 the 7 members appointed under this subdivision (1) shall
28 be members in good standing of an association that
29 represents the Statewide real estate industry. At least 2
30 members appointed under this subdivision (1) shall be
31 members in good standing of an Illinois not-for-profit
32 corporation incorporated after 1993 that represents and
33 promotes the interests of the Statewide appraisal
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1 profession.
2 The membership of a person appointed to the Board
3 under this subdivision shall automatically terminate in
4 the event that any such member's license goes to a status
5 other than active and in good standing. Each of the 7
6 appraiser members shall be credited with all fees and
7 continuing education requirements that come due during
8 his or her appointed term and active service on the
9 Board.
10 (2) One member shall be a representative of a
11 financial institution, as evidenced by his or her
12 employment with an institution that is a member of a
13 financial institution association that represents the
14 interests of Illinois financial institutions.
15 (3) Two members shall be members of the general
16 public. The public members shall not be employed by a
17 financial institution or registered in any state as a
18 real estate appraiser.
19 (b) In meeting the appointment criteria prescribed in
20 this Section, each appointee shall be attributed as being a
21 member of the Board from only one of the 4 classifications
22 set forth in subdivisions (1), (2), and (3).
23 (c) The Director shall act as a member of the Board, but
24 shall not vote.
25 (d) Members shall be appointed to 4-year terms, except
26 that of the initial appointments, 3 members shall be
27 appointed to serve 4-year terms, 3 members to serve 3-year
28 terms, 3 members to serve 2-year terms, and 1 member to serve
29 a one-year term. Appointments to fill vacancies shall be
30 made in the same manner as original appointments and shall be
31 for the unexpired portion of the term. A member may be
32 reappointed for successive terms, but no member shall serve
33 more than 10 years during his or her lifetime. Upon
34 expiration of their terms, members of the Board shall
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1 continue to hold office until the appointment of their
2 successors or until their resignation. Members of the Real
3 Estate Appraisal Committee, created under the Real Estate
4 License Act of 1983, who are serving on that Board on the day
5 preceding the effective date of this Act, shall comprise the
6 Real Estate Appraisal Board until the Governor makes the
7 initial appointments in accordance with subsection (a).
8 (e) The membership of the Board should reasonably
9 reflect representation from the various geographic and
10 demographic areas of the State.
11 (f) The Board shall meet at least quarterly to conduct
12 its business. Special meetings may be called by the
13 chairperson or by 3 voting members by providing written
14 notice of the meeting to all voting members. Written notice
15 of the time and place of each meeting shall be given to each
16 voting member of the Board at least 10 days before the
17 scheduled date of a meeting. Upon the written waiver of the
18 10-day notice requirement by all of the voting members of the
19 Board, the Board may meet after less notice.
20 (g) A majority of the duly appointed and actively
21 serving voting members of the Board shall constitute a
22 quorum. If a quorum is present, the action of a majority of
23 those voting members present shall constitute the action of
24 the Board.
25 (h) The voting members of the Board shall annually
26 elect, at the first regular meeting of the calendar year, a
27 chairperson and a vice-chairperson from among the voting
28 members to preside over meetings and a secretary who may be a
29 non-member. The member elected as chairperson shall serve as
30 chairperson for a term of one year. The vice-chairperson
31 shall preside over meetings when the chairperson is absent.
32 If the elected chairperson dies, resigns as chairperson or is
33 so physically or mentally disabled that he or she can no
34 longer serve as chairperson, the Board shall elect a new
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1 chairperson from among the voting members. A member may serve
2 as chairperson more than once, but no person shall serve as
3 chairperson for more than 2 consecutive full terms.
4 (i) Each member shall receive a per diem stipend as the
5 Commissioner shall determine. Each member shall be paid
6 necessary expenses while engaged in the performance of his or
7 her Board duties. Subject to appropriation, the Commissioner
8 shall disburse per diem stipends and expenses from moneys in
9 the Appraisal Administration Fund.
10 (j) The Governor may terminate the appointment of a
11 member for cause which in the opinion of the Governor
12 reasonably justifies the termination. Cause for termination
13 shall include, but not be limited to, misconduct, incapacity,
14 neglect of duty, or missing 4 Board meetings during one
15 calendar year.
16 Section 30. Powers and duties of the Board. The Real
17 Estate Appraisal Board has the following powers and duties:
18 (a) The Board shall conduct hearings on charges against
19 licensees under this Act for violations of this Act and shall
20 report its findings on the charges to the Office of Banks and
21 Real Estate.
22 (b) The Board shall make recommendations to the Office
23 of Banks and Real Estate on rules and procedures to implement
24 the provisions and policies of this Act.
25 Section 35. Powers and duties of the Office of Banks and
26 Real Estate.
27 (a) None of the functions, powers, or duties enumerated
28 in Section 70, 90, 95, 105, or 110 shall be exercised by the
29 Office of Banks and Real Estate except upon the action and
30 report in writing by the Board.
31 (b) The Office of Banks and Real Estate, after
32 considering the recommendations of the Board, may adopt rules
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1 consistent with the provisions of this Act to administer and
2 enforce this Act. The Office of Banks and Real Estate may, no
3 later than 60 days after the effective date of this Act,
4 adopt emergency rules pursuant to Section 5-45 of the
5 Illinois Administrative Procedure Act for the implementation
6 of this Act. For purposes of the Illinois Administrative
7 Procedure Act, the adoption of initial rules shall be
8 considered an emergency and necessary for the public
9 interest, safety, and welfare.
10 (c) The Office of Banks and Real Estate has the
11 following additional powers and duties:
12 (1) to receive applications for State appraiser
13 licensing, for licensing of appraisal course providers,
14 and for approval of appraisal education courses;
15 (2) to establish the administrative procedures for
16 processing applications for State licensing of
17 appraisers, appraisal course providers, and appraisal
18 education courses;
19 (3) to approve or disapprove applications and to
20 issue licenses;
21 (4) to maintain a registry of the names and
22 addresses of all licenses issued under this Act and to
23 transmit the registry, along with any National registry
24 fees that may be required, to the entity specified by,
25 and in a manner consistent with, Title XI of the federal
26 Financial Institutions Reform, Recovery and Enforcement
27 Act of 1989;
28 (5) to retain records and application materials
29 submitted to it;
30 (6) to assist the Board in any other manner the
31 Board may request.
32 (d) The Commissioner has the power to refuse to issue or
33 renew a license or to suspend, revoke, reprimand, place on
34 probation, or otherwise discipline a license issued under
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1 this Act, upon recommendation of the Board pursuant to the
2 disciplinary proceedings provided for in this Act.
3 The Commissioner shall give due consideration to all
4 recommendations of the Board on questions involving the
5 administration of this Act, standards of professional
6 conduct, and the discipline and examination of candidates
7 under this Act.
8 If the Commissioner disagrees with or takes action
9 contrary to a recommendation of the Board, the Commissioner
10 shall provide the Board with a written and specific
11 explanation of the disagreement or action within 30 days of
12 the date that the written recommendation is delivered to the
13 Commissioner.
14 (e) The Office of Banks and Real Estate shall adopt or
15 amend rules in accordance with federal laws and regulations
16 concerning appraisals in federally related transactions.
17 (f) Without in any manner limiting the power of the
18 Office of Banks and Real Estate to conduct investigations,
19 the Director of Real Estate Appraisal Administration may
20 appoint one or more State Certified Residential Real Estate
21 Appraisers or State Certified General Real Estate Appraisers
22 to conduct or assist in any investigation pursuant to this
23 Act. Appraisers appointed under this subsection may receive
24 remuneration as determined by the Commissioner.
25 Section 40. Fees; Appraisal Administration Fund.
26 (a) The Office of Banks and Real Estate may provide by
27 rule for fees to be paid by applicants, licensees, and other
28 persons under this Act to cover the reasonable costs of the
29 Office of Banks and Real Estate in administering the
30 provisions of the Act.
31 (b) All fees collected under this Act shall be deposited
32 into the Appraisal Administration Fund, created in the State
33 Treasury under the Real Estate License Act of 1983. Pursuant
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1 to appropriation, moneys deposited into the Fund may be used
2 by the Office of Banks and Real Estate to administer and
3 enforce this Act and for other purposes as provided by law.
4 Section 45. Licensing process.
5 (a) The Office of Banks and Real Estate, directly or
6 through its authorized designee, shall issue a license to
7 each applicant who qualifies for a license under this Act in
8 the form and size as shall be prescribed by the Office.
9 Applications for original licensure, renewal licensure, and
10 examinations as an appraiser, an appraisal education
11 provider, or for approval of an appraisal course shall be
12 made in writing to the Office of Banks and Real Estate on
13 forms prescribed by the Office.
14 When an applicant (i) has had his or her license revoked
15 or otherwise disciplined or supervised on a prior occasion,
16 (ii) is found to have committed a practice enumerated in
17 Section 90, or (iii) has been convicted of forgery,
18 embezzlement, obtaining money under false pretenses, larceny,
19 extortion, conspiracy to defraud, or a similar offense or has
20 been convicted of a felony involving moral turpitude in a
21 court of competent jurisdiction in this State or another
22 state, district, or territory of the United States or of a
23 foreign country, the Office of Banks and Real Estate shall
24 consider the prior revocation, conduct, or conviction in its
25 determination of the applicant's moral character and whether
26 to grant the applicant a license. In its consideration of the
27 prior revocation, conduct, or conviction, the Office of Banks
28 and Real Estate shall take into account the nature of the
29 conduct, any aggravating or extenuating circumstances, the
30 time elapsed since the revocation, conduct, or conviction,
31 the rehabilitation or restitution performed by the applicant,
32 and any other factors the Office of Banks and Real Estate
33 deems relevant. When an applicant has made a false statement
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1 of material fact on his or her application, the false
2 statement may in itself be sufficient grounds to refuse to
3 issue or renew a license, to suspend or revoke a license, or
4 to reprimand, place on probation, or otherwise discipline a
5 licensee.
6 (b) Appropriate fees, as set by rule, shall accompany
7 all applications for original licensure, renewal licensure,
8 and examination. All fees are nonrefundable.
9 (c) At the time of filing an application for licensure,
10 an applicant shall sign a pledge to comply with this Act and
11 shall state that he or she understands the types of
12 misconduct for which disciplinary proceedings may be
13 initiated against a real estate appraiser under this Act.
14 Section 50. Examination requirement.
15 (a) A license as a real estate appraiser shall not be
16 issued to a person who has not demonstrated, through a
17 comprehensive written examination process provided for by
18 rule, competence to transact the business of a real estate
19 appraiser, within the rank for which the applicant has
20 applied.
21 (b) The Office of Banks and Real Estate, or its
22 designated testing service, shall conduct examinations for
23 appraiser licensure at times and places that the Office of
24 Banks and Real Estate determines are sufficient and
25 appropriate.
26 Section 55. Examination prerequisites. As a prerequisite
27 to taking the examination for a rank of appraiser licensure,
28 an applicant shall (i) present evidence of successful
29 completion of a 4-year course of study in a high school or
30 secondary school approved by the Illinois State Board of
31 Education or an equivalent course of study as determined by
32 an examination conducted by the Illinois State Board of
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1 Education which shall be verified under oath by the applicant
2 and (ii) present evidence, satisfactory to the Office of
3 Banks and Real Estate, that the applicant has successfully
4 completed not less than 150 classroom hours in the case of an
5 applicant for a State Certified General Real Estate Appraiser
6 license, 90 classroom hours in the case of an applicant for a
7 State Certified Residential Real Estate Appraiser license, or
8 60 classroom hours in the case of an applicant for a State
9 Licensed Real Estate Appraiser license, or that amount
10 mandated under Title XI of the federal Financial Institutions
11 Reform, Recovery and Enforcement Act of 1989, whichever is
12 greater, or their equivalent as provided by rule, of courses
13 in subjects relating to real estate appraisal. In addition,
14 the applicant shall present evidence of successful completion
15 of 15 classroom hours relating to standards of professional
16 practice. The classroom hours required by this Section shall
17 be obtained from one or more of the following entities
18 approved by the Office of Banks and Real Estate:
19 (1) a college or university;
20 (2) a community college or junior college;
21 (3) a real estate appraisal or real estate related
22 organization;
23 (4) a trade association or organization that
24 consists in whole or in part of members engaged in real
25 estate appraising; or
26 (5) any other provider approved by the Office of
27 Banks and Real Estate.
28 The Office of Banks and Real Estate shall require by rule
29 completion of course work in fair housing and fair lending,
30 which shall be included within the requirements of this
31 Section.
32 Section 60. Experience requirement.
33 (a) A license as a State Certified General Real Estate
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1 Appraiser or State Certified Residential Real Estate
2 Appraiser shall not be issued to a person who does not
3 possess 2 years of experience, or that amount mandated under
4 Title XI of the federal Financial Institutions Reform,
5 Recovery and Enforcement Act of 1989, whichever is greater,
6 or their equivalent as provided by rule of the Office of
7 Banks and Real Estate. For the purposes of this Section, one
8 year of experience means 1,000 hours of experience.
9 Approved experience shall include fee appraisal, staff
10 appraisal, mass appraisal in accordance with the USPAP, ad
11 valorem tax appraisal, mass ad valorem tax appraisal in
12 accordance with the USPAP, review appraisal in accordance
13 with the USPAP, highest and best use analysis, feasibility
14 analysis or study in accordance with the USPAP, real estate
15 sales and brokerage, real estate consulting in accordance
16 with the USPAP, real property management, and other related
17 experience approved by the Office of Banks and Real Estate
18 and in accordance with the USPAP. Nevertheless, the amount of
19 credit granted for this experience shall be equivalent to the
20 amount of credit that may be granted for the experience under
21 Title XI of the federal Financial Institutions Reform,
22 Recovery and Enforcement Act of 1989.
23 An applicant for a license shall provide to the Office of
24 Banks and Real Estate on forms prescribed by rule of the
25 Office a summary of the level and type of experience for
26 which the applicant is claiming credit. To obtain experience
27 credit for the preparation of a written appraisal report, the
28 applicant shall provide in the experience summary the date of
29 appraisal, the type of property, the approximate size of the
30 property (including land and improvements), and the general
31 location of the property. Nothing in this Section shall
32 require, as a condition of obtaining experience credit, that
33 a real estate appraiser disclose the identity of the client
34 for whom the appraisal was performed. The Office of Banks and
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1 Real Estate may require that an applicant provide samples of
2 the applicant's work for which experience is claimed.
3 Of the total experience requirement, at least 50% must be
4 earned in one or more of the following areas: fee appraisal,
5 staff appraisal, ad valorem tax appraisal, review appraisal,
6 or real estate consulting.
7 (b) An applicant who has been engaged in appraising
8 real property for ad valorem purposes as a local assessment
9 officer, as defined in Section 1-85 of the Property Tax Code
10 or as a deputy or employee of a local assessment officer,
11 shall receive experience credit for the number of hours the
12 applicant was engaged in one or more of the following duties:
13 (1) the analysis and establishment of the value of
14 properties through the cost, income, and market sale
15 appraisal techniques;
16 (2) model development and calibration in relation
17 to mass ad valorem tax assessments; and
18 (3) the review and analysis of appraisals employing
19 cost, income, and market sale appraisal techniques.
20 The experience under this subsection (b) shall not be
21 required to be set forth in the form of the experience
22 summary as provided in subsection (a) of Section 60. All
23 persons who seek experience credit under this subsection (b)
24 shall attach his or her own affidavit as a supporting
25 document to the application form of the Office of Banks and
26 Real Estate. The applicant's affidavit shall detail the
27 experience for which credit is being claimed and the length
28 of time the applicant was engaged in these duties as a local
29 assessment officer, or deputy or employee of a local
30 assessment officer. The applicant shall attach to this
31 affidavit an Assessment Experience Certification form
32 executed by the local assessment officer or his or her
33 designee in the following form:
34 "Assessment Experience Certification.
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1 Pursuant to the provisions of subsection (b) of
2 Section 60 of the Real Estate Appraiser Licensing Act, it
3 is hereby certified that (Applicant's Name) was engaged
4 in appraising (residential .....%) (nonresidential....%)
5 real estate for ad valorem tax purposes as a local
6 assessment officer, or as a deputy or employee of a local
7 assessment officer, from (date) through (date) and
8 during this time period was engaged in one or more of the
9 following duties: (1) the analysis and establishment of
10 the value of properties through the cost, income, and
11 market sale appraisal techniques; (2) model development
12 and calibration in relation to mass ad valorem tax
13 assessments; (3) the review and analysis of appraisals
14 employing cost, income, and market sale appraisal
15 techniques, and that the experience is accurately
16 described in the affidavit to which this Certificate is
17 attached and supported by assessment records available
18 under Section 14-30 of the Property Tax Code or the
19 Freedom of Information Act.
20 By:
21 _________________________
22 Local Assessment Officer"
23 Upon submission of the application, affidavit, and the
24 Assessment Experience Certification form, the Commissioner
25 shall grant the experience credit set forth in this
26 subsection. Notwithstanding other provisions of this Act, the
27 amount of experience credit granted for appraising real
28 property for ad valorem tax purposes as a local assessment
29 officer, or deputy or employee of a local assessment officer,
30 shall be equivalent to the amount of credit that may be
31 granted for that experience under the provisions of Title XI
32 of the federal Financial Institutions Reform, Recovery and
33 Enforcement Act of 1989.
34 (c) An applicant who has been licensed for 5 of the
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1 previous 7 years with the Office of Banks and Real Estate as
2 a real estate broker or real estate salesperson shall receive
3 credit for appraisal experience equal to 40% of the total
4 experience requirement. This experience as a real estate
5 broker or real estate salesperson shall not be required to be
6 set forth in the form required in subsection (a). The balance
7 of the experience requirement shall be set forth in the form
8 of the experience summary as provided in subsection (a).
9 (d) Of the total experience requirement for State
10 Certified General Real Estate Appraisers, at least 50% must
11 be approved experience relating to nonresidential real
12 estate.
13 (e) Of the total experience required for State Certified
14 Residential Real Estate Appraisers, at least 50% must be
15 approved experience relating to residential real estate.
16 (f) Proof of experience shall not be required for
17 licensure as a State Licensed Real Estate Appraiser. The
18 license of a State Licensed Real Estate Appraiser who has
19 been licensed for a period of 2 years shall be renewed only
20 if the licensee meets the following experience requirements:
21 (1) Prior to the first renewal after the licensee
22 has been licensed for 2 years, the licensee possesses at
23 least 500 hours of experience. A licensee may, at the
24 time of applying for the first renewal, submit 1,000
25 hours of experience.
26 (2) Unless the licensee submitted 1,000 hours of
27 experience under the provisions of subdivision (1), prior
28 to the second renewal after the licensee has been
29 licensed for a period of 2 years, the licensee possesses
30 500 hours experience. The experience required under this
31 subdivision must be earned after the first renewal after
32 the licensee has been licensed for a period of 2 years.
33 All real estate appraisal experience granted shall be in
34 accordance with this Section.
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1 (g) The Office of Banks and Real Estate may waive the
2 experience requirement of this Section for good cause. A
3 renewal applicant seeking renewal of a license without having
4 fully complied with the experience requirement of subsection
5 (a) shall file with the Office of Banks and Real Estate a
6 renewal application, the required renewal fee, an affidavit
7 setting forth the facts concerning the noncompliance, a
8 request for waiver of the experience requirement on the basis
9 of those facts, and a waiver processing fee of $25. If the
10 Office of Banks and Real Estate finds from the affidavit or
11 any other evidence submitted that good cause has been shown
12 for granting a waiver, the Office of Banks and Real Estate
13 shall waive enforcement of the experience requirement for the
14 renewal period for which the applicant has applied. For
15 purposes of this subsection, "good cause" means an inability
16 of the applicant to reasonably complete the requisite
17 appraisal experience because there has been an insufficient
18 amount of appraisal activity in the geographic area where the
19 applicant practices real estate appraising. In determining
20 whether good cause exists, the Office of Banks and Real
21 Estate may consider (i) the amount of appraisal experience
22 earned by the applicant in proportion to the total appraisal
23 activity within the geographic area where the applicant
24 practices real estate appraising and (ii) the reasonableness
25 of the geographic area the applicant defines as the area
26 where the applicant practices real estate appraising. "Good
27 cause" shall also include an inability of the applicant to
28 complete the experience requirement because of extreme
29 hardship, which includes but is not limited to an
30 incapacitating illness or full-time service in the armed
31 services in the United States of America, during a
32 substantial part of the prerenewal period.
33 Section 65. Issuance of license; renewal. The Office of
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1 Banks and Real Estate shall issue a license as a real estate
2 appraiser or as a real estate appraisal education provider or
3 shall approve an appraisal course, as appropriate, to a
4 person, course provider, or courses meeting the requirements
5 for licensure under this Act. The term of a license issued
6 under this Act shall be established by rule. The expiration
7 date of the license shall appear on the license. The Office
8 of Banks and Real Estate shall establish by rule procedures
9 for the issuance of renewal notices and procedures for the
10 renewal of a license under this Act.
11 Section 70. Nonresident licensure and reciprocity.
12 (a) A nonresident may be licensed under this Act upon
13 complying with all the provisions and conditions required for
14 licensure in this State and upon payment of the appropriate
15 fees.
16 (b) A nonresident may be licensed under this Act by
17 reciprocity, upon complying with all the provisions of a
18 reciprocity agreement between this State and another state,
19 territory of the United States, or District of Columbia. Upon
20 the recommendation of the Board, the Office of Banks and Real
21 Estate shall enter into an agreement of reciprocity with an
22 appraiser regulation jurisdiction of another state, territory
23 of the United States, or the District of Columbia that, in
24 the opinion of the Board and Office of Banks and Real Estate,
25 has similar, equal, or greater qualifications and
26 requirements for licensure as an appraiser.
27 (c) Every nonresident applicant shall file an
28 irrevocable consent that suits and actions arising out of
29 appraisal work in this State may be commenced against the
30 licensed appraiser in the circuit court of a county of this
31 State in which the cause of action arose or in which the
32 plaintiff resides by the service of legal process on the
33 Director of Real Estate Appraisal Administration, the
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1 irrevocable consent agreeing that service on the Director
2 shall be acknowledged in all courts to be valid and binding
3 as if personal service of process had been made upon the
4 nonresident in this State. If process is served upon the
5 Director of Real Estate Appraisal Administration, it shall be
6 the Director's duty to forward a copy of the process by
7 registered mail to the last known address of the licensed
8 appraiser against whom the process is directed.
9 (d) The Office of Banks and Real Estate shall adopt
10 rules consistent with Title XI of the Federal Financial
11 Institutions Reform, Recovery, and Enforcement Act of 1989
12 permitting nonresident licensed appraisers to practice in
13 Illinois on a temporary basis.
14 Section 75. Scope of practice.
15 (a) State Licensed Real Estate Appraisers, State
16 Certified Residential Real Estate Appraisers, and State
17 Certified General Real Estate Appraisers are not limited in
18 their scope of practice and may independently or in
19 cooperation with other appraisers provide services of
20 appraisal, review, or consulting relating to any type
21 property for which the licensee is experienced and competent.
22 All such appraisal practice must be in compliance with the
23 competency provision of the USPAP.
24 (b) The scope of practice of individual licensees may be
25 limited as a disciplinary measure through an Order of Facts
26 and Findings, a Consent Order, or a Consent to Administrative
27 Supervision issued by the Commissioner.
28 Section 80. Prohibited licensing of entities.
29 (a) The title "State Certified General Real Estate
30 Appraiser", "State Certified Residential Real Estate
31 Appraiser", or "State Licensed Real Estate Appraiser" may
32 only be used to refer to a person licensed as an appraiser
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1 under this Act and may not be used following or immediately
2 in connection with the name or signature of a firm,
3 partnership, limited liability company, corporation, or
4 group, or in a manner that it might be interpreted as
5 referring to a firm, partnership, limited liability company,
6 corporation, group, or anyone other than an individual holder
7 of a license.
8 (b) No license shall be issued under this Act to a
9 corporation, partnership, limited liability company, firm, or
10 group. This subsection shall not be construed to prevent a
11 licensee from signing an appraisal report on behalf of a
12 corporation, partnership, limited liability company, firm, or
13 group practice.
14 Section 85. Continuing education requirements.
15 (a) As a prerequisite to renewal of an appraiser
16 license, a renewal applicant shall present evidence
17 satisfactory to the Office of Banks and Real Estate of having
18 completed not less than 20 hours of continuing education per
19 renewal period or that amount mandated under Title XI of the
20 Federal Financial Institutions Reform, Recovery and
21 Enforcement Act of 1989, whichever is greater, or their
22 equivalent as provided by rule, from courses approved by the
23 Office and presented by real estate appraisal education
24 providers licensed by the Office.
25 The Office of Banks and Real Estate may provide by rule
26 for the temporary waiver of continuing education requirements
27 for good cause.
28 (b) In lieu of meeting the requirements of subsection
29 (a) of this Section, an applicant for renewal of a license
30 may satisfy all or part of the requirements by presenting
31 evidence of participation, other than as a student, in
32 educational processes and programs approved pursuant to
33 subsection (a) that relate to real property appraisal theory,
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1 practices, or techniques, including but not limited to
2 teaching, program development, and preparation of textbooks,
3 monographs, articles, and other instructional materials.
4 (c) The Office of Banks and Real Estate may by rule
5 require periodic testing of a licensee's understanding of
6 this Act. Continuing education credit hours may be awarded
7 for successful completion of the periodic examination.
8 (d) The Office of Banks and Real Estate shall require by
9 rule the completion of course work in fair housing and fair
10 lending, which shall be included within the requirements of
11 this Section.
12 Section 90. Grounds for disciplinary action.
13 (a) Pursuant to the action and report in writing of the
14 Board, the Office of Banks and Real Estate may suspend,
15 revoke, or refuse to issue or renew the license of an
16 appraiser or place on probation or reprimand a licensee, may
17 impose a civil penalty not to exceed $10,000 upon a licensee,
18 or the holder of a license may be placed on administrative
19 supervision or otherwise disciplined for any one or
20 combination of the following reasons:
21 (1) Procuring or attempting to procure a license by
22 knowingly making a false statement, submitting false
23 information, refusing to provide complete information in
24 response to a question in an application for licensure or
25 through any form of fraud or misrepresentation.
26 (2) Failing to meet the minimum qualifications for
27 licensure as an appraiser established by this Act.
28 (3) Paying money, other than for the fees provided
29 for by this Act, or anything of value to a member or
30 employee of the Board or Office of Banks and Real Estate
31 to procure licensure under this Act.
32 (4) A conviction of a crime, including conviction
33 based upon a plea of guilty or nolo contendere.
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1 (5) An act or omission involving dishonesty, fraud,
2 or misrepresentation with the intent to substantially
3 benefit the licensee or another person or with intent to
4 substantially injure another person.
5 (6) Violation of a provision or standard for the
6 development or communication of real estate appraisals as
7 provided in Section 110 of this Act or by rule.
8 (7) Failure or refusal without good cause to
9 exercise reasonable diligence in developing and reporting
10 or communicating an appraisal.
11 (8) Negligence or incompetence in developing and
12 reporting or communicating an appraisal.
13 (9) Willfully disregarding or violating a provision
14 of this Act or its rules.
15 (10) Accepting an appraisal assignment for
16 valuation when the employment itself is contingent upon
17 the appraiser reporting a predetermined estimate,
18 analysis, or opinion or when the fee to be paid is
19 contingent upon the opinion, conclusion, or valuation
20 reached or upon the consequences resulting from the
21 appraisal assignment.
22 (11) Developing valuation conclusions based on the
23 race, color, religion, sex, national origin, ancestry,
24 age, marital status, familiar status, physical or mental
25 handicap, or unfavorable military discharge, as defined
26 under the Illinois Human Rights Act, of the prospective
27 or present owners or occupants of the area or property
28 under appraisal.
29 (12) Violation of the confidential nature of
30 government records to which the licensee gained access
31 through employment or engagement as an appraiser by a
32 government agency.
33 (13) Adjudication of liability in a civil
34 proceeding on grounds of fraud, misrepresentation, or
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1 deceit. In a disciplinary proceeding based upon a finding
2 of civil liability, the appraiser shall be afforded an
3 opportunity to present mitigating and extenuating
4 circumstances, but may not collaterally attack the civil
5 adjudication.
6 (14) Adjudication of liability in a civil
7 proceeding for violation of a State or federal fair
8 housing law.
9 (15) Engaging in misleading or untruthful
10 advertising or using a trade name or insignia of
11 membership in a real estate appraisal or real estate
12 related organization of which the licensee is not a
13 member.
14 (16) Failure to fully cooperate with an Office
15 investigation by knowingly making a false statement,
16 submitting false information, or refusing to provide
17 complete information in response to a question or other
18 requests by the Office.
19 (17) Failing to include within the certificate of
20 appraisal for all written appraisal reports the
21 appraiser's license number, licensure title (State
22 Licensed Real Estate Appraiser, State Certified
23 Residential Real Estate Appraiser, or State Certified
24 General Real Estate Appraiser), and the date of
25 expiration of the license. All appraisers providing
26 significant contribution to the development and reporting
27 of an appraisal must be disclosed in the appraisal
28 report. It is a violation of this Act for an appraiser
29 to sign a report, transmittal letter, or appraisal
30 certification knowing that a person providing significant
31 contribution to the report has not been disclosed in the
32 appraisal report.
33 (b) Pursuant to the action and report in writing of the
34 Board, the Office of Banks and Real Estate may suspend,
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1 revoke, place on probation, reprimand, or otherwise
2 discipline the license of an appraisal education course
3 provider or course license subordinate to the providership,
4 or may refuse to issue or renew a course license or
5 provider's license and may also impose a civil penalty not to
6 exceed $10,000 upon the holder of the course or provider's
7 license for any of the following acts or omissions:
8 (1) Procuring or attempting to procure licensure by
9 knowingly making a false statement, submitting false
10 information, refusing to provide complete information in
11 response to a question in an application for licensure or
12 through any form of fraud or misrepresentation.
13 (2) Failing to comply with covenants certified to
14 on the application for licensure as an appraisal
15 education provider, appraisal education subprovider,
16 prelicensure course, or continuing education course.
17 (3) An act or omission involving dishonesty, fraud,
18 or misrepresentation by the course provider or any
19 employees or independent contractors of the provider.
20 (4) Engaging in misleading or untruthful
21 advertising.
22 (5) Failing to retain competent instructors in
23 accordance with rules adopted under this Act.
24 (6) Failing to meet the topic or time requirements
25 for course approval as a prelicensure curriculum course
26 or a continuing education course.
27 (7) Failing to administer a licensed course using
28 the course materials, syllabus, and examinations
29 submitted as the basis of licensure.
30 (8) Failing to provide an appropriate classroom
31 environment for presentation of courses with
32 consideration for student comfort, acoustics, lighting,
33 seating, work space, and visual aid material.
34 (9) Failing to maintain student records in
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1 compliance with rules adopted under this Act.
2 (10) Failing to provide certificates, transcripts,
3 or other student records to the Office or student as may
4 be required by rule.
5 (11) Failure to fully cooperate with an Office
6 investigation by knowingly making a false statement,
7 submitting false information, or refusing to provide
8 complete information in response to a question or other
9 requests by the Office.
10 (c) Notwithstanding the provisions of this Act
11 concerning the conduct of hearings and recommendations for
12 disciplinary actions, a conference panel of the Board may
13 recommend to the Office of Banks and Real Estate who shall
14 have the authority to negotiate settlement agreements with
15 State Licensed Real Estate Appraisers, State Certified
16 General Real Estate Appraisers, State Certified Residential
17 Real Estate Appraisers, and appraiser education licensees or
18 applicants, resulting in disciplinary Consent Orders. Consent
19 Orders may provide for any of the forms of discipline
20 provided in this Act. Consent Orders shall provide that they
21 were not entered into as a result of any coercion by the
22 Office of Banks and Real Estate, the Director of Real Estate
23 Appraisal Administration, or the Board. A Consent Order shall
24 be filed with the Commissioner along with the Board's
25 recommendation and accepted or rejected by the Commissioner
26 in a timely manner.
27 (d) Notwithstanding the provisions of this Act
28 concerning the conduct of hearings and recommendations for
29 disciplinary actions, a conference panel of the Board may
30 recommend to the Office of Banks and Real Estate who on the
31 Board shall have the authority to negotiate settlement
32 agreements with State Licensed Real Estate Appraisers, State
33 Certified General Real Estate Appraisers, State Certified
34 Residential Real Estate Appraisers, appraiser education
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1 licensees or applicants, resulting in disciplinary Consent to
2 Administrative Supervision Orders. Consent to Administrative
3 Supervision Orders may be offered with conditions that may
4 include but shall not be limited to the respondent's
5 attendance and successful completion of appraisal courses,
6 payment of part or all of the investigation and prosecution
7 costs associated with the complaint and replacement of
8 appraiser rank with a lower rank. Consent to Administrative
9 Supervision Orders shall provide that they were not entered
10 into as a result of coercion by the Office of Banks and Real
11 Estate, the Director of Real Estate Appraisal Administration,
12 or the Board. Consent to Administrative Supervision Order
13 shall be filed with the Commissioner along with the Board's
14 recommendation and accepted or rejected by the Commissioner
15 in a timely manner. A licensee subject to a Consent to
16 Administrative Supervision Order shall be considered by the
17 Office as an active appraiser in good standing and the
18 records regarding an investigation and a Consent to
19 Administrative Supervision Order are confidential and shall
20 not be released by the Office except as mandated by law.
21 However, the complainant shall be notified that his or her
22 complaint has been resolved by administrative supervision of
23 the respondent.
24 (e) Civil penalties and costs collected under this
25 Section are to be deposited into the Appraisal Administration
26 Fund.
27 Section 95. Unlicensed practice; civil penalty.
28 (a) A person who practices, offers to practice, attempts
29 to practice, or holds himself or herself out to practice as a
30 State Licensed Real Estate Appraiser, State Certified
31 Residential Real Estate Appraiser, or State Certified General
32 Real Estate Appraiser without being licensed under this Act
33 shall, in addition to any other penalty provided by law, pay
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1 a civil penalty to the Office of Banks and Real Estate in an
2 amount not to exceed $5,000 for each offense as determined by
3 the Office of Banks and Real Estate. The civil penalty shall
4 be assessed by the Office of Banks and Real Estate after a
5 hearing is held in accordance with the provisions set forth
6 in this Act regarding the provision of a hearing for the
7 discipline of a licensee.
8 (b) The Office of Banks and Real Estate has the
9 authority and power to investigate any and all unlicensed
10 appraiser activity concerning federally related transactions.
11 (c) Civil penalties imposed by the Office of Banks and
12 Real Estate shall be enforceable in the Circuit Court. The
13 Office shall petition the Court for an order to enforce
14 collection of the penalty and, if the Court finds it has
15 jurisdiction over the person against whom the penalty was
16 imposed, the Court shall issue the appropriate order. Any
17 civil penalties collected by the Court shall be forwarded to
18 the State Treasurer. In addition to or in lieu of the
19 imposition of a civil penalty, the Office may report a
20 violation and the failure or refusal to comply with the order
21 of the Office to the Attorney General and the appropriate
22 State's Attorney.
23 Section 100. Investigation; notice; hearing.
24 (a) Upon the motion of either the Office of Banks and
25 Real Estate or the Board, or upon the verified complaint in
26 writing of a person setting forth facts that, if proven,
27 would constitute grounds for suspension, revocation, or other
28 disciplinary action against a licensee or applicant for
29 licensure, the Office of Banks and Real Estate shall cause to
30 be investigated the actions of any person so accused who
31 holds or represents to hold a license or has applied for
32 licensure under this Act.
33 (b) Before taking any disciplinary action, the Director
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1 of Real Estate Appraisal Administration shall notify the
2 holder of the license, in writing, of the charges that are
3 the basis of the disciplinary action and shall direct the
4 applicant or licensee to file a written answer under oath
5 within 20 days after the service of the notice to the
6 Director of Real Estate Appraisal Administration. The
7 notification shall also inform the licensee of his or her
8 right to be heard in person or by legal counsel; that the
9 hearing will be afforded not sooner than 30 days after
10 receipt of the answer to the specific charges; that failure
11 to file an answer will result in default being entered
12 against the applicant or licensee; and that the license may
13 be suspended, revoked, or placed on probationary status or
14 other disciplinary action may be taken, including limiting
15 the scope, nature, or extent of practice, as recommended by
16 the conference panel of the Board and with the concurrence of
17 the Commissioner. If the licensee or applicant fails to file
18 an answer after receiving notice, his or her license may, at
19 the discretion of the Office of Banks and Real Estate, be
20 suspended, revoked, or placed on probationary status or the
21 Office of Banks and Real Estate may take whatever
22 disciplinary action it deems proper, including limiting the
23 scope, nature, or extent of the person's practice or imposing
24 a fine, without a hearing. The written notice shall be
25 considered legal service and may be served personally or sent
26 by registered or certified mail to the last known address of
27 the holder of the license.
28 (c) The Office of Banks and Real Estate has the power to
29 issue subpoenas and subpoena duces tecum to bring before it
30 any person in this State to take testimony or to require
31 production of any records relevant to an inquiry or hearing
32 by the Board in the same manner as prescribed by law in
33 judicial proceedings in the courts of this State. In a case
34 of refusal of a witness to attend or testify or to produce
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1 books or papers concerning a matter upon which he or she
2 might be lawfully examined, the circuit court of the county
3 where the hearing is held, upon application of the Office of
4 Banks and Real Estate or a party to the proceeding, may
5 compel obedience by proceeding as for contempt.
6 Section 105. Hearing.
7 (a) The hearing on the charges shall be held at a time
8 and place prescribed by the Office of Banks and Real Estate
9 and in accordance with the Illinois Administrative Procedure
10 Act.
11 (b) If on the conclusion of the hearing the Board
12 determines that a real estate appraiser licensed in this
13 State or a real estate appraiser education licensee is guilty
14 of a violation of a provision of this Act, it shall prepare a
15 finding of fact and a recommendation that the appraiser be
16 reprimanded, placed on probation, or otherwise disciplined or
17 that the appraiser's license be suspended or revoked or
18 otherwise disciplined. The Commissioner shall give due
19 consideration to the recommendations of the Board and shall
20 then enter a decision and order in the matter. If the
21 Commissioner takes action contrary to the recommendation of
22 the Board, the Commissioner shall file with the Board in
23 writing the action taken and the specific reasons for his or
24 her actions that are contrary to the Board's recommendation.
25 (c) A final administrative decision of the Commissioner
26 is subject to judicial review pursuant to the provisions of
27 the Administrative Review Law.
28 (d) An appraisal license that has been revoked as a
29 result of disciplinary action shall not be reinstated for a
30 period of 2 years from the date of revocation and only then
31 after the Board has reviewed the application for
32 reinstatement and recommended that the revoked license be
33 reinstated by the Office of Banks and Real Estate. In its
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1 recommendation the Board must cite the basis of the
2 recommendation including its consideration of the applicant's
3 recent continuing education attendance.
4 (e) Notwithstanding the provisions of this Act
5 concerning the conduct of hearings and recommendations for
6 disciplinary actions, the Office of Banks and Real Estate has
7 the authority to negotiate agreements with appraisers and
8 appraiser education licensees or applicants for licensure
9 which agreements shall be recorded as disciplinary Consent
10 Orders, or in lieu of publishable discipline, Consent to
11 Administrative Supervision Orders, as described in
12 subsections (b), (c), and (d) of Section 90.
13 (f) At any time after the revocation of a license, the
14 Commissioner may restore it to the accused person or course
15 provider, upon the written recommendation of the Board.
16 Section 110. Standards of practice. All licensees under
17 this Act must comply with standards of professional appraisal
18 practice adopted by the Office of Banks and Real Estate at
19 the recommendation of the Board. The Office of Banks and Real
20 Estate may adopt, as part of its own rules, the Uniform
21 Standards of Professional Appraisal Practice as published
22 from time to time by the Appraisal Foundation. The Office of
23 Banks and Real Estate shall consider federal laws and
24 regulations regarding the licensure of real estate appraisers
25 prior to adopting its own rules for the administration of
26 this Act.
27 Section 115. Retention of records. An appraiser
28 licensed under this Act shall retain for 5 years originals or
29 true copies of (i) all written contracts engaging his or her
30 services for real property appraisal work, and (ii) all
31 appraisal reports, exactly as transmitted to the client, and
32 supporting data assembled and formulated by the appraiser in
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1 developing and reporting the appraisal. The 5-year period for
2 retention of records is applicable to each engagement of
3 services of the appraiser and shall commence upon the date of
4 the submittal of the appraisal to the client unless, within
5 the 5-year period, the appraiser is notified that the
6 appraisal or appraisal report is involved in litigation, in
7 which event the 5-year period for the retention of records
8 shall commence upon the date of the final disposition of the
9 litigation. This record retention requirement also applies to
10 contracts and reports concerning appraisals listed for
11 experience credit, which shall be available for Office review
12 for a period of 5 years from the date the application for
13 examination is received by the Office.
14 Section 120. Statute of limitations. No action may be
15 taken under this Act against a person licensed under this Act
16 unless the action is commenced within 5 years after the
17 occurrence of the alleged violation. A continuing violation
18 will be deemed to have occurred on the date when the
19 circumstances last existed that gave rise to the alleged
20 continuing violation.
21 Section 125. Savings provisions. This Act is the
22 successor to the provisions of Article 2 of the Real Estate
23 License Act of 1983. Any persons formerly subject to the
24 provisions of Article 2 of the Real Estate License Act of
25 1983 shall be subject to this Act. Any actions taken
26 pursuant to Article 2 of the Real Estate License Act of 1983,
27 including the issuance of licenses or certificates, the
28 imposition of disciplinary proceedings, the holding of
29 hearings, and any other administrative action taken by the
30 Commissioner or the Real Estate Appraisal Board and all
31 rights, powers, and duties conferred under Article 2 of the
32 Real Estate License Act of 1983 shall be valid under this Act
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1 and shall continue in full force and effect.
2 Section 130. Severability clause. If a provision of this
3 Act or its application to a person or circumstance is held
4 invalid, the invalidity does not affect other provisions or
5 applications of this Act that can be given effect without the
6 invalid provision or application, and to this end, the
7 provisions of this Act are severable.
8 Section 225. The Regulatory Agency Sunset Act is amended
9 by changing Section 4.18 as follows:
10 (5 ILCS 80/4.18)
11 Sec. 4.18. Acts Act repealed January 1, 2008. The
12 following Acts are Act is repealed on January 1, 2008:
13 The Acupuncture Practice Act.
14 The Pharmacy Practice Act of 1987.
15 The Podiatric Medical Practice Act of 1987.
16 The Nursing Home Administrators Licensing and
17 Disciplinary Act.
18 The Physician Assistant Practice Act of 1987.
19 The Illinois Nursing Act of 1987.
20 The Marriage and Family Therapy Licensing Act.
21 The Clinical Social Work and Social Work Practice Act.
22 The Illinois Speech-Language Pathology and Audiology
23 Practice Act.
24 The Real Estate Appraiser Licensing Act.
25 (Source: P.A. 89-706, eff. 1-31-97; 90-61, eff. 12-30-97;
26 90-69, eff. 7-8-97; 90-76, eff. 7-8-97; 90-150, eff.
27 12-30-97; 90-248, eff. 1-1-98; revised 9-30-97.)
28 Section 250. The Real Estate License Act of 1983 is
29 amended by changing Sections 15 and 23 as follows:
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1 (225 ILCS 455/15) (from Ch. 111, par. 5815)
2 Sec. 15. The Office of Banks and Real Estate may provide
3 by rule for fees to be paid by applicants and licensees
4 (other than applicants and licensees under Article 2 of this
5 Act) to cover the reasonable costs of the Office of Banks and
6 Real Estate in administering and enforcing the provisions of
7 this Act (other than the provisions of Article 2 of this
8 Act). The Office of Banks and Real Estate may also provide by
9 rule for general fees to cover the reasonable expenses of
10 carrying out other functions and responsibilities under this
11 Act (other than Article 2 of this Act). The rules promulgated
12 hereunder shall include, but need not be limited to the
13 following:
14 (1) The fee for an initial license for real estate
15 salespersons and real estate brokers shall include a $10 fee
16 for deposit in the Real Estate Recovery Fund as provided in
17 Section 23, and a $5 fee for deposit in the Real Estate
18 Research and Education Fund for use as provided in Section
19 16. Any moneys derived from renewal license fees that may
20 have been deposited or designated for deposit into the Real
21 Estate Recovery Fund or the Real Estate Research and
22 Education Fund pursuant to this paragraph between July 1,
23 1995 and the effective date of this amendatory Act of 1996
24 shall be transferred to or deposited into the Real Estate
25 License Administration Fund.
26 (2) The fee for an initial license for a partnership or
27 corporation shall include a $10 fee for deposit in the Real
28 Estate Recovery Fund as provided in Section 23, and a $5 fee
29 for deposit in the Real Estate Research and Education Fund
30 for use as provided in Section 16.
31 (3) The fee for an initial license for a branch office
32 shall include a $5 fee for deposit in the Real Estate
33 Research and Education Fund for use as provided in Section
34 16.
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1 (Source: P.A. 88-683, eff. 1-24-95; 89-23, eff. 7-1-95;
2 89-508, eff. 7-3-96; 89-706, eff. 1-31-97.)
3 (225 ILCS 455/23) (from Ch. 111, par. 5823)
4 Sec. 23. The Office of Banks and Real Estate shall
5 maintain a Real Estate Recovery Fund from which any person
6 aggrieved by an act, representation, transaction or conduct
7 of a duly licensed broker, salesperson or unlicensed
8 employee, which is in violation of Article 1 of this Act or
9 the regulations promulgated pursuant thereto, or which
10 constitutes embezzlement of money or property or results in
11 money or property being unlawfully obtained from any person
12 by false pretenses, artifice, trickery or forgery or by
13 reason of any fraud, misrepresentation, discrimination or
14 deceit by or on the part of any such licensee or the
15 unlicensed employee of any such broker, and which results in
16 a loss of actual cash money as opposed to losses in market
17 value, may recover. Such aggrieved person may recover, by
18 order of the circuit court of the county where the violation
19 occurred, an amount of not more than $10,000 from such fund
20 for damages sustained by the act, representation,
21 transaction, or conduct, together with costs of suit and
22 attorneys' fees incurred in connection therewith of not to
23 exceed 15% of the amount of the recovery ordered paid from
24 the Fund. However, no licensed broker, or salesperson may
25 recover from the Fund unless the court finds that the person
26 suffered a loss resulting from intentional misconduct. Such
27 court order shall not include interest on the judgment.
28 The maximum liability against the Fund arising out of any
29 one act shall be as provided in this Section and the judgment
30 order shall spread the award equitably among all co-owners or
31 otherwise aggrieved persons, if any. The maximum liability
32 against the Fund arising out of the activities of any single
33 broker, any single salesperson or any single unlicensed
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1 employee, since January 1, 1974, shall be $50,000.
2 Nothing in this Section shall be construed to authorize
3 recovery from the Real Estate Recovery Fund unless the loss
4 of the aggrieved person results from an act or omission of a
5 licensed broker, salesperson or unlicensed employee who was
6 at the time of the act or omission acting in such capacity or
7 was apparently acting in such capacity, and unless the
8 aggrieved person has obtained a valid judgment as provided in
9 Section 25.
10 No person aggrieved by an act, representation, or
11 transaction which is in violation of the Illinois Real Estate
12 Time-Share Act, the Land Sales Act of 1989, or the Real
13 Estate Appraiser Licensing Act Article 2 of this Act may
14 recover from the Real Estate Recovery Fund created pursuant
15 to this Section.
16 The Office of Banks and Real Estate shall from time to
17 time, upon the written direction of the Governor, transfer
18 from the Real Estate Recovery Fund any amounts the Governor
19 determines are in excess of the amounts required to meet the
20 obligations of the Fund. The amounts transferred to the
21 General Revenue Fund shall not, however, exceed $1,000,000.
22 (Source: P.A. 89-508, eff. 7-3-96.)
23 (225 ILCS 455/Art. 2 rep.)
24 Section 275. The Real Estate License Act of 1983 is
25 amended by repealing Article 2.
26 Section 999. Effective date. This Act takes effect July
27 1, 1998.