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91_HB2632
LRB9105080DJcdA
1 AN ACT concerning subdivided land that is located outside
2 the State of Illinois and offered for sale to individuals
3 located in Illinois.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Article 1. General Provisions
7 Section 1-1. Short title. This Act may be cited as the
8 Land Sales Registration Act of 1999.
9 Section 1-2. Supersedes prior Act. This Act supersedes
10 the Land Sales Registration Act of 1989.
11 Section 1-5. Declaration of public policy. The
12 practice of selling land that is located outside the State of
13 Illinois and offered for sale to individuals who are located
14 in the State of Illinois is declared to affect the public
15 health, safety, and welfare and to be subject to regulation
16 and control in the public interest. It is further declared
17 to be a matter of public interest and concern that the
18 business of selling and conveying parcels of land from real
19 estate subdivisions located outside the State of Illinois and
20 the practice of land sales as defined in this Act merit and
21 receive the confidence of the public, so that only qualified
22 persons be authorized to practice the sale of foreign land
23 within the State of Illinois. This Act shall be liberally
24 construed to best carry out these subjects and purposes.
25 Section 1-10. Definitions. In this Act, unless the
26 context otherwise requires:
27 "Blanket encumbrance" means a trust deed, mortgage,
28 mechanics lien, or any other lien or financial encumbrance
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1 securing or evidencing money debt and affecting land to be
2 subdivided or affecting more than one lot or parcel of
3 subdivided land; or an agreement affecting more than one such
4 lot or parcel by which the subdivider holds the subdivision
5 under an option, contract to purchase, or trust agreement.
6 Taxes and assessments levied by public authority are not an
7 encumbrance under this Act.
8 "Commissioner" means the Commissioner of Banks and Real
9 Estate or a natural person authorized by the Commissioner,
10 the Office of Banks and Real Estate Act, or this Act to act
11 in the Commissioner's stead.
12 "Common promotional plan" means a plan, undertaken by a
13 single developer or a group of developers acting in concert,
14 to offer lots for sale or lease. Where land is offered for
15 sale by a developer or group of developers acting in concert
16 and the land is contiguous or is known, designated, or
17 advertised as a common unit or by a common name, the land is
18 presumed, without regard to the number of lots covered by
19 each individual offering, to be offered for sale or lease as
20 part of a common promotional plan.
21 "Offer" includes every inducement, solicitation, or
22 attempt to encourage a person to acquire an interest in a
23 subdivision or subdivided land, if undertaken for gain or
24 profit.
25 "Person" means an individual, corporation, government or
26 governmental subdivision or agency, business trust, estate,
27 trust, partnership, unincorporated association, 2 or more of
28 any of the foregoing having a joint or common interest, or
29 any other legal or commercial entity.
30 "Sale" includes a sale, lease, assignment, or award by
31 lottery, or any offer or solicitation of an offer to do any
32 of the foregoing, concerning a subdivision or any part of a
33 subdivision, if undertaken for gain or profit.
34 "Subdivided land" and "subdivision" mean improved or
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1 unimproved lands located outside the State of Illinois,
2 divided or proposed to be divided into 25 or more lots or
3 parcels, and also include any land, whether contiguous or
4 not, if 25 or more lots, parcels, units or interests are
5 offered as a part of a common promotional plan of advertising
6 and sale.
7 Section 1-15. Powers and duties of the Office of Banks
8 and Real Estate. The Office of Banks and Real Estate shall
9 exercise the powers and duties established by this Act. The
10 Commissioner may adopt rules consistent with the provisions
11 of this Act for its administration and enforcement and may
12 prescribe forms that shall be issued in connection with this
13 Act. The Office of Banks and Real Estate shall issue a
14 certificate of registration to any person who meets the
15 qualifications set forth in this Act.
16 Article 5. Registration Requirements
17 Section 5-5. Registration requirement; exemptions. It
18 is unlawful for any person to engage in the business of
19 selling land that is located outside the State of Illinois to
20 any individual located in Illinois without a certificate of
21 registration issued by the Office of Banks and Real Estate
22 pursuant to this Act. Unless the method of sale is adopted
23 for the purpose of evasion of this Act, the provisions of
24 this Act do not apply to an offer or disposition of an
25 interest in land:
26 (1) by a purchaser of subdivided lands for the
27 purchaser's own account in a single or isolated
28 transaction;
29 (2) if fewer than 25 separate lots, parcels, units
30 or interests in subdivided lands are offered by a person;
31 (3) on which there is a commercial or industrial
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1 building, shopping center, house, apartment house,
2 condominium structure, or town house, or as to which
3 there is a legal obligation on the part of the seller to
4 construct such a building within 2 years from the date of
5 disposition;
6 (4) that is sold for industrial, commercial, or
7 institutional purposes;
8 (5) that consists of cemetery lots or interests;
9 (6) that consists of a subdivision as to which the
10 plan of sale is to dispose of it to 10 or fewer persons;
11 or
12 (7) in lots or parcels of 20 or more acres,
13 unconditionally, or of 10 or more acres if there is free
14 and ready access leading to county-maintained roads.
15 Section 5-10. Application for registration.
16 (a) Before subdivided lands are offered for sale, the
17 subdivider or the subdivider's agent shall file with the
18 Office of Banks and Real Estate an application on forms
19 supplied by the Office of Banks and Real Estate. A
20 registration fee shall accompany the application. The
21 application shall contain all of the following information:
22 (1) The name and address of the fee title owner of
23 the subdivided lands.
24 (2) The name and address of the subdivider.
25 (3) The name and address of an agent of the
26 subdivider in Illinois authorized to accept service of
27 process on behalf of the subdivider.
28 (4) The legal description and acreage of the lands,
29 together with a map showing the layout as recorded or
30 proposed and the relation of the lands to existing
31 streets or roads, waterways, schools, churches, shopping
32 centers, and local bus and rail transportation, with a
33 statement of distances to each.
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1 (5) A true statement as to title to the subdivided
2 land, including all financial encumbrances and unpaid
3 taxes thereon.
4 (6) If subject property is in a land trust, a true
5 statement of the names and addresses of all parties with
6 a beneficial interest in the trust.
7 (7) A true statement of the terms and conditions by
8 which it is intended the subdivided land will be sold,
9 together with copies of any and all forms of contract or
10 conveyance intended to be used. If a language other than
11 English was used in advertising the property or during
12 the sales presentation, translations, in that language,
13 of the Illinois Public Property Report, any contract or
14 lien, and any note shall be provided to the purchaser
15 before the purchaser executes the contract. A receipt
16 for these translations shall be obtained and a copy of
17 the receipt shall be kept available in this State and
18 subject to inspection by the Office of Banks and Real
19 Estate for 3 years from the date of the receipt.
20 (8) A true statement of provision for sewage
21 disposal and public utilities, if any, in the proposed or
22 existing subdivision, including water, electricity, gas,
23 and telephone facilities.
24 (9) A correct reference to applicable zoning
25 ordinances and regulations.
26 (10) Certified financial statements of the
27 subdivider.
28 (11) A proposed public property report, suitable
29 for distribution to any proposed purchaser if a
30 certificate of registration is issued, which shall
31 contain the following information:
32 (A) the name and principal address of the
33 subdivider;
34 (B) a general description of the subdivided
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1 lands, stating the total number of lots, parcels,
2 units, or interests in the offering;
3 (C) the significant terms of any encumbrances,
4 easements, liens, and restrictions, including zoning
5 and other regulations affecting the subdivided lands
6 and each lot or unit, and a statement of all
7 existing taxes and existing or proposed special
8 taxes or assessments that affect the subdivided
9 lands;
10 (D) a statement of the use for which the
11 property is offered;
12 (E) information concerning improvements,
13 including streets, water supply, levees, drainage
14 control systems, irrigation systems, sewage disposal
15 facilities, and customary utilities, and the
16 estimated costs, date of completion, and
17 responsibility for construction and maintenance of
18 existing and proposed improvements that are referred
19 to in connection with the offering or disposition of
20 any interest in subdivided lands;
21 (F) a statement that certified financial
22 statements are available upon request; and
23 (G) such additional information consistent
24 with this Act which may be required by the Office of
25 Banks and Real Estate to assure full and fair
26 disclosure to prospective purchasers.
27 (b) The subdivider shall report all material changes with
28 respect to subdivided lands registered for sale under this
29 Act, and the Office of Banks and Real Estate may require that
30 the public property report be amended to reflect such
31 material change. In the event the subdivider wishes to
32 update the public property report, the subdivider may do so
33 upon proper application to the Office of Banks and Real
34 Estate.
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1 (c) If the subdivider registers additional subdivided
2 lands to be offered for sale, the subdivider may consolidate
3 the subsequent registration with any earlier registration
4 offering subdivided lands for sale under the same promotional
5 plan, and the public property report shall be amended to
6 include the additional subdivided lands so registered.
7 (d) The Office of Banks and Real Estate shall, at the
8 time the application is submitted or from time to time
9 thereafter, require the subdivider to furnish financial
10 assurances, in the form of a performance bond, a surety bond,
11 or an irrevocable letter of credit in the amount and subject
12 to terms and requirements approved by the Office of Banks and
13 Real Estate, for the purpose of protecting purchasers of lots
14 in the subdivision to ensure that the improvements will be
15 constructed and maintained in the manner represented by the
16 subdivider. The Office of Banks and Real Estate may accept
17 evidence that such assurances have been furnished to a
18 foreign state, or a county or municipality within such state,
19 in fulfillment of this requirement.
20 Section 5-15. Notice of filing; issuance of certificate;
21 renewal.
22 (a) Upon receipt of the application for registration in
23 proper form, the Office of Banks and Real Estate shall issue
24 a notice of filing to the applicant. Within 60 days from the
25 date of the notice of filing, the Office of Banks and Real
26 Estate shall enter an order registering the subdivided lands
27 or rejecting the registration. If no order of rejection is
28 entered within 60 days from the date of notice of filing, the
29 land shall be deemed registered unless the applicant has
30 consented in writing to a delay.
31 (b) If the Office of Banks and Real Estate affirmatively
32 determines, upon inquiry and examination, that the
33 requirements of this Act have been met, it shall issue a
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1 certificate of registration registering the subdivided lands
2 and shall approve the form of the public property report.
3 (c) If the Office of Banks and Real Estate determines,
4 upon inquiry and examination, that any of the requirements of
5 this Act have not been met, it shall notify the applicant
6 that the application for registration must be corrected in
7 the particulars specified within 15 days. If the
8 requirements are not met within the time allowed, the Office
9 of Banks and Real Estate shall enter an order rejecting the
10 registration, which shall include the findings of fact upon
11 which the order is based. The order rejecting the
12 registration shall not become effective for 20 days, during
13 which time the applicant may petition for reconsideration and
14 shall be entitled to a hearing.
15 (d) The Office of Banks and Real Estate may adopt rules
16 authorizing the subdivider or the subdivider's agent to file,
17 as the subdivider's application for a certificate of
18 registration in lieu of some or all of the requirements of
19 Section 5-10, (i) a copy of the statement of record filed
20 with respect to the subdivision pursuant to the Federal
21 Interstate Land Sales Full Disclosure Act if the statement
22 complies with the requirements of that Act and the
23 regulations pertinent to that Act or (ii) an acceptable
24 certificate of registration from another jurisdiction in
25 which the requirements for registration are substantially the
26 same or exceed those provided in this Act. Notwithstanding
27 the requirements of Section 5-10, the Office of Banks and
28 Real Estate may suspend or revoke any registration under this
29 Section that includes any registration, property report, or
30 similar disclosure documents accepted under this subsection
31 if the registration, property report, or similar disclosure
32 is suspended or revoked by the registering state or by the
33 federal government.
34 (e) A certificate of registration issued under this
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1 Section shall expire on June 30 following the date of
2 issuance. In the absence of any reason or condition under
3 Section 10-35 that might warrant the suspension or revocation
4 of a registration, a certificate shall be renewed upon
5 payment of the required fee and documentation as provided by
6 rule.
7 Section 5-20. Fees.
8 (a) The Office of Banks and Real Estate shall provide, by
9 rule, for fees to be paid by applicants and registrants to
10 cover the reasonable costs of the Office of Banks and Real
11 Estate in administering and enforcing the provisions of this
12 Act. The Office of Banks and Real Estate may also provide, by
13 rule, for general fees to cover the reasonable expenses of
14 carrying out other functions and responsibilities under this
15 Act.
16 (b) All fees collected under this Act shall be paid into
17 the Real Estate License Administration Fund in the State
18 treasury and appropriated to the Office of Banks and Real
19 Estate for administration of this Act or any other Act
20 administered by the Office of Banks and Real Estate and
21 providing revenue to this fund.
22 (c) Any person who delivers a check or other payment to
23 the Office of Banks and Real Estate that is returned to the
24 Office of Banks and Real Estate unpaid by the financial
25 institution upon which it is drawn shall pay to the Office of
26 Banks and Real Estate, in addition to the amount already owed
27 to the Office of Banks and Real Estate, a fee of $50.
28 (d) The fees imposed by this Section are in addition to
29 any other disciplinary action provided under this Act for
30 unlicensed practice or practice on a non-renewed license.
31 (e) The Office of Banks and Real Estate shall notify the
32 person that payment of fees and fines shall be paid to the
33 Office of Banks and Real Estate by certified check or money
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1 order within 30 calendar days of the notification. If, after
2 the expiration of 30 days from the date of the notification,
3 the person has failed to submit the necessary remittance, the
4 Office of Banks and Real Estate shall automatically terminate
5 the certificate of registration or deny the application,
6 without hearing. If, after termination or denial, the person
7 seeks a certificate of registration, he or she shall apply to
8 the Office of Banks and Real Estate for restoration or
9 issuance of the certificate of registration and pay all fees
10 due the Office of Banks and Real Estate. The Commissioner
11 may waive the fees due under this Section in individual cases
12 where the Commissioner finds that the fees would be
13 unreasonable or unnecessarily burdensome.
14 Section 5-25. Public property report. When a certificate
15 of registration is granted by the Office of Banks and Real
16 Estate, a copy of the public property report shall be given
17 by the owner, subdivider, or agent to each prospective
18 purchaser prior to the execution of any binding contract or
19 agreement for the sale of any lot or parcel in a subdivision.
20 A receipt, in duplicate, shall be taken from each purchaser
21 to evidence compliance with this Section. Receipts taken for
22 any published report shall be kept on file in possession of
23 the owner, subdivider, or agent, subject to inspection by the
24 Office of Banks and Real Estate for 3 years from the date the
25 receipt is taken. The report shall not be used for
26 advertising purposes unless the report is used in its
27 entirety. No portion of the report shall be underscored,
28 italicized, or printed in larger or heavier type than any
29 other portion of the report, unless required by this Act.
30 The report shall contain the following statement:
31 If you received this report prior to signing a
32 contract or agreement, you may cancel your contract or
33 agreement by giving notice to the seller any time before
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1 midnight of the seventh day following the signing of the
2 contract or agreement.
3 If you did not receive this report before you signed
4 a contract or agreement, you may cancel the contract or
5 agreement any time within 2 years from the date of
6 signing.
7 Article 10. Business Practices
8 Section 10-5. Sales contracts. Every sales contract
9 relating to the purchase of real property in a subdivision
10 shall clearly state:
11 (1) the legal description of the parcel being sold;
12 (2) the principal balance of the purchase price
13 outstanding at the date of the sale contract, after full
14 credit is given for down payment;
15 (3) that the purchaser has the unconditional option
16 to rescind a contract until midnight of the seventh day
17 following the signing of the contract if the purchaser
18 received a copy of the property report as required in
19 Section 5-10, and 2 years to rescind the contract if the
20 property report was not received;
21 (4) which party is obligated to pay the costs of
22 issuance of the required title policy and recording of
23 all documents;
24 (5) the latest date by which any promised services
25 or amenities, which shall include but not be limited to
26 all those identified in the public property report or any
27 form of advertising, will be provided or completed; and
28 (6) that any deed, contract for deed, or
29 installment contract shall be recorded within 180 days
30 after the date of acceptance.
31 Section 10-10. Title insurance. The subdivider shall
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1 arrange for the issuance of an owners title insurance policy
2 following recording, subject only to the conditions contained
3 in the contract and the standard exceptions contained in the
4 title policy. If there are defects in the title rendering it
5 uninsurable, the purchaser has the option of reconveying or
6 releasing the lot and receiving a refund of all moneys paid
7 under the contract, and the purchaser shall be released from
8 any and all obligations under the contract.
9 Section 10-15. Copies of instruments. A copy of the
10 instruments executed in connection with the sale of parcels
11 within a subdivision shall be kept available in this State
12 and subject to inspection by the Office of Banks and Real
13 Estate. The Office of Banks and Real Estate shall be
14 notified of any change of address affecting the location of
15 the owner's, subdivider's, or agent's records, or of any
16 change in the depository for purchasers' payments under this
17 Act.
18 Section 10-20. Sale of encumbered lots prohibited;
19 exceptions. It is unlawful for the owner or subdivider to
20 sell lots or parcels within a subdivision subject to a
21 blanket encumbrance unless one of the following conditions is
22 met:
23 (1) All sums paid or advanced by a purchaser are
24 placed in an escrow or other depository account
25 acceptable to the Office of Banks and Real Estate until
26 (i) the fee title contracted for is delivered to the
27 purchaser by deed together with complete release from all
28 financial encumbrances; (ii) the owner, subdivider, or
29 purchaser defaults and fails to perform under the
30 contract of sale and there is final determination as to
31 the disposition of such moneys; or (iii) the funds in the
32 escrow or other account are voluntarily returned to the
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1 contract purchaser.
2 (2) The fee title to the subdivision is placed in
3 trust under an agreement or trust acceptable to the
4 Office of Banks and Real Estate until a proper release
5 from each blanket encumbrance, including all taxes, is
6 obtained and title is delivered to the purchaser.
7 (3) A bond to the State of Illinois is furnished to
8 the Office of Banks and Real Estate for the benefit and
9 protection of purchasers of such lots or parcels, in the
10 amount and subject to terms approved by the Office of
11 Banks and Real Estate. The bond shall be executed by a
12 surety company that is authorized to do business in the
13 State of Illinois and has given consent to be sued in
14 this State. The bond shall provide for the return of
15 moneys paid or advanced by a purchaser if (i) the title
16 contracted for is not delivered and (ii) a full release
17 from each blanket encumbrance is not obtained. If it is
18 determined that the purchaser, by reason of default or
19 otherwise, is not entitled to the return of those moneys,
20 or any portion of those moneys, then the bond is released
21 by the amount of moneys to which the purchaser of parcel
22 is not entitled.
23 (4) The blanket encumbrance contains provisions
24 evidencing the subordination of the lien of the holder of
25 the blanket encumbrance to the rights of those persons
26 purchasing from the subdivider, and further evidencing
27 that the subdivider is able to secure releases from such
28 blanket encumbrances with respect to the property.
29 Section 10-25. False statement or misrepresentation;
30 penalty. Every officer, agent, or employee of any owner or
31 subdivider of land, and every other person, who knowingly
32 authorizes, directs, or aids in the publication,
33 advertisement, distribution, or circularization or any false
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1 statement or misrepresentation concerning any such land or
2 subdivision offered for sale commits a Class 4 felony.
3 Every person, with knowledge that any advertisement,
4 pamphlet, prospectus, or letter concerning any such land or
5 subdivision contains any written statement that is false or
6 fraudulent, who issues, circulates, publishes, or distributes
7 the advertisement, pamphlet, prospectus, or letter, or causes
8 the advertisement, pamphlet, prospectus, or letter to be
9 issued, circulated, published, or distributed, commits a
10 Class 4 felony.
11 Section 10-30. Failure to pay registration and
12 inspection fees; civil penalty. Any owner, subdivider, or
13 agent who fails to pay the registration, inspection, or
14 renewal fees when due shall be assessed a civil penalty of
15 $100 per day for each day past the due date that the fee is
16 not paid. Practice by a registrant while in a non-renewed
17 status constitutes unregistered practice. Any penalties
18 collected under this Act shall be deposited into the Real
19 Estate License Administration Fund.
20 Article 15. Disciplinary Provisions
21 Section 15-5. Disciplinary action; civil penalty.
22 (a) The Office of Banks and Real Estate may refuse to
23 issue or renew any certificate of registration, or revoke or
24 suspend any certificate of registration, or place on
25 probation or administrative supervision or reprimand a
26 registrant registered under this Act, or impose a civil
27 penalty not to exceed $25,000, for any one or any combination
28 of the following causes:
29 (1) A registrant's disregard or violation of any
30 provision of this Act or of the rules adopted by the
31 Office of Banks and Real Estate to enforce this Act.
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1 (2) A conviction of the registrant or any principal
2 of the registrant of (i) a felony under the laws of any
3 U.S. jurisdiction, (ii) a misdemeanor under the laws of
4 any U.S. jurisdiction if an essential element of the
5 offense is dishonesty, or (iii) a crime under the laws of
6 any U.S. jurisdiction if the crime relates directly to
7 the practice of the profession regulated by this Act.
8 (3) A registrant's making any misrepresentation for
9 the purpose of obtaining a registration or certificate.
10 (4) Disciplinary action against a registrant by
11 another U.S. jurisdiction, state agency, or foreign
12 nation regarding the making of land sales regulated by
13 this Act, if at least one of the grounds for the
14 discipline is the same as or substantially equivalent to
15 one of those set forth in this Act.
16 (5) A finding by the Office of Banks and Real
17 Estate that the registrant, after having his or her
18 registration placed on probationary status, has violated
19 the terms of probation.
20 (6) A registrant's practicing or attempting to
21 practice under a name other than the name as shown on his
22 or her registration or any other legally authorized name.
23 (7) A registrant's failure to file a return, or to
24 pay the tax, penalty, or interest shown in a filed
25 return, or to pay any final assessment of tax, penalty,
26 or interest, as required by any tax Act administered by
27 the Illinois Department of Revenue, until the
28 requirements of any such tax Act are satisfied.
29 (8) A registrant's engaging in dishonorable,
30 unethical, or unprofessional conduct of a character
31 likely to deceive, defraud, or harm the public.
32 (9) A registrant's aiding or abetting another person
33 or persons in disregarding or violating any provision of
34 this Act or of the rules adopted by the Office of Banks
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1 and Real Estate to enforce this Act.
2 (10) Any representation in any document or
3 information filed with the Office of Banks and Real
4 Estate which is false or misleading.
5 (11) A registrant's disseminating or causing to be
6 disseminated any false or misleading promotional
7 materials or advertisements in connection with a
8 registered subdivision.
9 (12) A registrant's concealing, diverting, or
10 disposing of any funds or assets of any person in a
11 manner that impairs the rights of purchasers of lots
12 within a registered subdivision.
13 (13) A registrant's failure to perform any
14 stipulation or agreement made to induce the Office of
15 Banks and Real Estate to issue an order relating to the
16 registered subdivision.
17 (14) A registrant's engaging in any act that
18 constitutes a violation of Section 3-102, 3-103, 3-104,
19 or 3-105 of the Illinois Human Rights Act.
20 (15) A registrant's failure to provide information
21 requested in writing by the Office of Banks and Real
22 Estate, within 30 days of the request, either as the
23 result of a formal or informal complaint to the Office of
24 Banks and Real Estate or as a result of a random audit
25 conducted by the Office of Banks and Real Estate, which
26 would indicate a violation of this Act.
27 (16) A registrant's failure to account for or remit
28 any escrow funds coming into his or her possession which
29 belonged to others.
30 (17) A registrant's failure to make available to
31 Office of Banks and Real Estate personnel during normal
32 business hours all escrow records and related documents
33 maintained in connection therewith, within 24 hours of a
34 request from Office of Banks and Real Estate personnel.
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1 (18) A registrant's failure to comply with any
2 provision of this Act or the rules implementing this Act,
3 or any order made by the Office of Banks and Real Estate.
4 (19) A person's offering for sale, as an agent,
5 salesman, or broker for a subdivider, developer, or
6 owner, subdivided lands or a subdivision, wherever
7 situated, without first complying with this Act.
8 (20) A registrant's failure to provide to the
9 purchaser a translation of the Illinois Public Property
10 Report or any contract, lien, or note as required by this
11 Act.
12 (21) A registrant's advertising for sale in this
13 State any parcel in a subdivision, or in any other manner
14 assisting an owner, subdivider, or developer of a
15 subdivision who has not complied with this Act to offer
16 subdivided land within this State.
17 (22) A registrant's making any material change in
18 the plan of disposition and development of the
19 subdivision or subdivided lands subsequent to receiving a
20 certificate of registration, without obtaining written
21 approval of an amendment to the registration.
22 (23) A registrant's encumbering a lot or parcel, or
23 allowing a lot or parcel to be encumbered, after a
24 contract for its sale has been signed by the parties to
25 the contract.
26 (b) A civil penalty imposed under subsection (a) shall
27 be paid within 60 days after the effective date of the order
28 imposing the civil penalty. The order shall constitute a
29 judgment and may be filed and execution had thereon in the
30 same manner as any judgment from any court of record.
31 Section 15-10. Investigation. The Office of Banks and
32 Real Estate may investigate the actions or qualifications of
33 any person or persons holding or claiming to hold a
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1 certificate of registration under this Act. Such a person
2 is referred to as "the respondent" in this Article.
3 Section 15-15. Disciplinary hearings; record;
4 appointment of administrative law judge.
5 (a) The Office of Banks and Real Estate has the authority
6 to conduct hearings before an administrative law judge on
7 proceedings to revoke, suspend, or refuse to issue or renew a
8 certificate of registration issued under this Act, or to
9 place on probation or administrative supervision or reprimand
10 a registrant registered under this Act, or to impose a civil
11 penalty not to exceed $25,000 upon any registrant registered
12 under this Act.
13 (b) The Office of Banks and Real Estate, at its expense,
14 shall preserve a record of all proceedings at the formal
15 hearing of any case involving the refusal to issue or the
16 revocation or suspension of a certificate of registration
17 issued under this Act or involving other discipline of a
18 registrant registered under this Act. The notice of hearing,
19 complaint, and all other documents in the nature of pleadings
20 and written motions filed in the proceedings, the transcript
21 of testimony, the report of the administrative law judge, and
22 the orders of the Office of Banks and Real Estate shall be
23 the record of proceeding. At all hearings or prehearing
24 conferences, the Office of Banks and Real Estate and the
25 respondent shall be entitled to have a court reporter in
26 attendance for purposes of transcribing the proceeding or
27 prehearing conference.
28 (c) The Commissioner has the authority to appoint any
29 attorney duly licensed to practice law in the State of
30 Illinois to serve as an administrative law judge in any
31 action for refusal to issue or renew a certificate of
32 registration or to discipline a registrant or person holding
33 a certificate of registration. The administrative law judge
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1 has full authority to conduct the hearing. The
2 administrative law judge shall report his or her findings and
3 recommendations to the Commissioner. If the Commissioner
4 disagrees with the recommendation of the administrative law
5 judge, the Commissioner may issue an order in contravention
6 of the recommendation.
7 Section 15-20. Notice of proposed disciplinary action;
8 hearing.
9 (a) Before taking any disciplinary action with regard to
10 any registrant, the Office of Banks and Real Estate shall:
11 (1) notify the respondent in writing, at least 30
12 calendar days prior to the date set for the hearing, of
13 any charges made, the time and place for the hearing of
14 the charges, and that testimony at the hearing will be
15 heard under oath; and
16 (2) inform the respondent that upon failure to file
17 an answer and request a hearing before the date
18 originally set for the hearing, default will be taken
19 against the respondent and the respondent's certificate
20 of registration may be suspended or revoked, or other
21 disciplinary action may be taken against the respondent,
22 as the Office of Banks and Real Estate may deem proper.
23 (b) If the respondent fails to file an answer after
24 receiving notice, the respondent's certificate of
25 registration may, in the discretion of the Office of Banks
26 and Real Estate, be revoked or suspended, or other
27 disciplinary action may be taken against the respondent, as
28 deemed proper, without a hearing, if the act or acts charged
29 constitute sufficient grounds for that action under this Act.
30 (c) At the time and place fixed in the notice, the Office
31 of Banks and Real Estate shall proceed to hearing of the
32 charges. Both the respondent and the complainant shall be
33 accorded ample opportunity to present in person, or by
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1 counsel, statements, testimony, evidence, and argument that
2 may be pertinent to the charges or any defense to the
3 charges.
4 Section 15-25. Subpoenas; attendance of witnesses;
5 oaths.
6 (a) The Office of Banks and Real Estate has the power to
7 issue subpoenas ad testificandum and to bring before it any
8 persons, and to take testimony either orally or by
9 deposition, or both, with the same fees and mileage and in
10 the same manner as prescribed in civil cases in the courts of
11 this State. The Office of Banks and Real Estate has the
12 power to issue subpoenas duces tecum and to bring before it
13 any documents, papers, files, books, and records, with the
14 same costs and in the same manner as prescribed in civil
15 cases in the courts of this State.
16 (b) Upon application of the Office of Banks and Real
17 Estate or its designee or of the applicant, registrant, or
18 person holding a certificate of registration against whom
19 proceedings under this Act are pending, any circuit court may
20 enter an order compelling the enforcement of any subpoena
21 issued by the Office of Banks and Real Estate in connection
22 with any hearing or investigation.
23 (c) The Commissioner and the designated administrative
24 law judge have power to administer oaths to witnesses at any
25 hearing that the Office of Banks and Real Estate is
26 authorized to conduct under this Act.
27 Section 15-30. Administrative law judge's findings of
28 fact, conclusions of law, and recommendations. At the
29 conclusion of the hearing, the administrative law judge shall
30 present to the Commissioner a written report of the
31 administrative law judge's findings of fact, conclusions of
32 law, and recommendations regarding discipline or a civil
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1 penalty. The report shall contain a finding of whether or
2 not the respondent violated this Act or failed to comply with
3 the conditions required in this Act. The administrative law
4 judge shall specify the nature of the violation or failure to
5 comply. If the Commissioner disagrees in any regard with the
6 report of the administrative law judge, the Commissioner may
7 issue an order in contravention of the report. The
8 Commissioner shall provide a written report to the
9 administrative law judge on any deviation and shall specify
10 with particularity the reasons for that action in the final
11 order.
12 Section 15-35. Rehearing. After any hearing involving
13 disciplinary action against a registrant, a copy of the
14 administrative law judge's report shall be served on the
15 respondent by the Office of Banks and Real Estate, either
16 personally or as provided in this Act for the service of the
17 notice of hearing. Within 20 calendar days after the
18 service, the respondent may present to the Office of Banks
19 and Real Estate a motion in writing for a rehearing. The
20 motion shall specify the particular grounds for rehearing. If
21 the respondent orders a transcript of the record from the
22 reporting service and pays for it within the time for filing
23 a motion for rehearing, the 20 calendar day period within
24 which a motion for rehearing may be filed shall commence upon
25 the delivery of the transcript to the respondent.
26 If no motion for rehearing is filed, then upon the
27 expiration of the time specified for filing a motion, or if a
28 motion for rehearing is denied, then upon denial, the
29 Commissioner may enter an order in accordance with the
30 recommendations of the administrative law judge, except as
31 otherwise provided in this Article. Whenever the
32 Commissioner is not satisfied that substantial justice has
33 been done in the hearing or in the administrative law judge's
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1 report, the Commissioner may order a rehearing by the same or
2 some other duly qualified Administrative law judge.
3 Section 15-40. Disciplinary consent orders.
4 Notwithstanding any other provisions of this Act concerning
5 the conduct of hearings and recommendations for disciplinary
6 actions, the Office of Banks and Real Estate has the
7 authority to negotiate agreements with registrants and
8 applicants resulting in disciplinary consent orders. Any
9 such consent order may provide for any form of discipline
10 provided for in the Act. Any such consent order shall provide
11 that it is not entered into as a result of any coercion by
12 the Office of Banks and Real Estate. Any such consent order
13 shall be accepted by signature or rejected by the
14 Commissioner in a timely manner.
15 Section 15-45. Order or certified copy. An order or a
16 certified copy of an order, over the seal of the Office of
17 Banks and Real Estate and purporting to be signed by the
18 Commissioner, shall be prima facie proof of the following:
19 (1) That the signature is the genuine signature of
20 the Commissioner.
21 (2) That the Commissioner is duly appointed and
22 qualified.
23 (3) That the administrative law judge is duly
24 appointed and qualified.
25 Section 15-50. Restoration of certificate of
26 registration. At any time after the suspension or revocation
27 of any certificate of registration, the Office of Banks and
28 Real Estate may restore the certificate of registration to
29 the respondent upon the written recommendation of the
30 administrative law judge, unless after an investigation and a
31 hearing the administrative law judge determines that
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1 restoration is not in the public interest.
2 Section 15-55. Surrender of certificate of registration.
3 Upon the revocation or suspension of a certificate of
4 registration, the registrant shall immediately surrender the
5 certificate of registration to the Office of Banks and Real
6 Estate. If the registrant fails to do so, the Office of
7 Banks and Real Estate has the right to seize the certificate
8 of registration.
9 Section 15-60. Administrative Review Law. All final
10 administrative decisions of the Office of Banks and Real
11 Estate under this Act are subject to judicial review under
12 the Administrative Review Law and the rules implementing
13 that Law. The term "administrative decision" is defined as
14 in Section 3-101 of the Code of Civil Procedure. Proceedings
15 for judicial review shall be commenced in the circuit court
16 of the county in which the party applying for review resides,
17 but if the party is not a resident of this State, the venue
18 shall be in Cook or Sangamon County.
19 Pending the court's final decision on administrative
20 review, the acts, orders, sanctions, and rulings of the
21 Office of Banks and Real Estate regarding any registration
22 shall remain in full force and effect unless modified or
23 suspended by court order pending a final judicial decision.
24 The Office of Banks and Real Estate shall not be required
25 to certify any record to the court or file any answer in
26 court or otherwise appear in any court in a judicial review
27 proceeding unless there is filed in the court, with the
28 complaint, a receipt from the Office of Banks and Real Estate
29 acknowledging payment of the costs of furnishing and
30 certifying the record. Failure on the part of the plaintiff
31 to file a receipt in the court is grounds for dismissal of
32 the action.
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1 Section 15-65. Public interest, safety, or welfare;
2 summary suspension. The Commissioner may temporarily suspend
3 any registration pursuant to this Act, without hearing,
4 simultaneously with the institution of proceedings for a
5 hearing provided for in this Section, if the Commissioner
6 finds that the evidence indicates that the public interest,
7 safety, or welfare imperatively requires emergency action.
8 If the Commissioner temporarily suspends any registration
9 without a hearing, a hearing must be held within 30 calendar
10 days after the suspension. The person whose registration is
11 suspended may seek a continuance of the hearing, during which
12 the suspension shall remain in effect. The proceeding shall
13 be concluded without appreciable delay.
14 Section 15-70. Non-registered practice; civil penalty;
15 injunction.
16 (a) Any person who practices, offers to practice,
17 attempts to practice, or holds himself or herself out to
18 practice as a registrant under this Act without being
19 registered under this Act shall, in addition to any other
20 penalty provided by law, pay a civil penalty to the Office of
21 Banks and Real Estate in an amount not to exceed $25,000 for
22 each offense as determined by the Office of Banks and Real
23 Estate. The civil penalty shall be assessed by the Office of
24 Banks and Real estate after a hearing is held in accordance
25 with the provisions set forth in this Act regarding the
26 provision of a hearing for the discipline of a registration.
27 (b) The Office of Banks and Real Estate has the
28 authority and power to investigate any and all activity
29 subject to registration under this Act.
30 (c) A civil penalty imposed under subsection (a) shall
31 be paid within 60 days after the effective date of the order
32 imposing the civil penalty. The order shall constitute a
33 judgment and may be filed and execution had thereon in the
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1 same manner as any judgment from any court of record.
2 (d) Engaging in the sale of land located outside the
3 State of Illinois but offered for sale in Illinois by any
4 entity not holding a valid and current registration under
5 this Act is declared to be inimical to the public welfare, to
6 constitute a public nuisance, and to cause irreparable harm
7 to the public welfare. The Commissioner, the Attorney
8 General, the State's Attorney of any county in the State, or
9 any person may maintain an action in the name of the People
10 of the State of Illinois, and may apply for injunctive relief
11 in any circuit court to enjoin the entity from engaging in
12 the conduct prohibited under this subsection. Upon the
13 filing of a verified petition in the court, the court, if
14 satisfied by affidavit or otherwise that the entity has been
15 engaged in that conduct without a valid and current
16 registration, may enter a temporary restraining order without
17 notice or bond, enjoining the defendant from such further
18 conduct. Only the showing of nonregistration, by affidavit
19 or otherwise, is necessary in order for a temporary
20 injunction to issue. A copy of the verified complaint shall
21 be served upon the defendant and the proceedings shall
22 thereafter be conducted as in other civil cases except as
23 modified by this Section. If it is established that the
24 defendant has been or is engaged in such unlawful conduct,
25 the court may enter an order or judgment perpetually
26 enjoining the defendant from further unlawful conduct. In
27 all proceedings hereunder, the court, in its discretion, may
28 apportion the costs among the parties interested in the
29 action, including cost of filing the complaint, service of
30 process, witness fees and expenses, court reporter charges
31 and reasonable attorneys' fees. In the case of a violation
32 of any injunctive order entered under the provisions of this
33 Section, the court may summarily try and punish the offender
34 for contempt of court. Proceedings for an injunction under
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1 this Section shall be in addition to, and not in lieu of, all
2 penalties and other remedies provided in this Act.
3 Section 15-75. Cease and desist orders. The Office of
4 Banks and Real Estate may issue a cease and desist order to
5 any person who engages in any activity prohibited by this
6 Act. Any person in violation of a cease and desist order
7 entered by the Office of Banks and Real Estate is subject to
8 all of the remedies provided by law.
9 Section 15-80. Statute of limitations. Any action or
10 proceeding to enforce any provision of this Act must be
11 commenced within 3 years following the date on which the
12 claim upon which the action or proceeding is based accrues.
13 Article 20. Administration
14 Section 20-5. Administration of Act. The Office of
15 Banks and Real Estate shall exercise the powers and duties
16 prescribed by the Civil Administrative Code of Illinois and
17 shall exercise other powers and duties necessary for
18 effectuating the purposes of this Act. The Office of Banks
19 and Real Estate may contract with third parties for services
20 necessary for the proper administration of this Act. The
21 Office of Banks and Real Estate has the authority to
22 establish public policies and procedures necessary for the
23 administration of this Act.
24 Section 20-10. Administrative rules. The Office of
25 Banks and Real Estate shall adopt rules for the
26 implementation and enforcement of this Act.
27 Section 20-15. Investigation of subdivisions. The
28 Office of Banks and Real Estate shall investigate every
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1 subdivision offered for sale in this State and may:
2 (1) Require the applicant to submit reports
3 prepared by competent engineers concerning any hazard to
4 which any subdivision offered for sale is subject in the
5 opinion of the Office of Banks and Real Estate, or any
6 factor that affects the utility of lots or parcels within
7 the subdivision, and require evidence of compliance.
8 (2) Make an on-site inspection of each subdivision.
9 In connection with any on-site inspection, the owner,
10 subdivider, or agent shall defray all expenses incurred
11 by the inspector in the course of the inspection.
12 (3) Make additional on-site inspections of each
13 subdivision for which the owner, subdivider, or agent
14 shall defray all expenses incurred by the inspector in
15 the course of the inspection.
16 (4) Require the owner, subdivider, or agent to
17 deposit the expenses to be incurred in any inspection, in
18 advance, based upon an estimate by the Office of Banks
19 and Real Estate of the expenses likely to be incurred.
20 (5) In those cases where an on-site inspection of
21 any subdivision has been made under the provisions of
22 this Act, waive an inspection of a subsequent
23 registration submitted as an amendment to the
24 registration covering subdivided land to be sold under
25 the same common promotional plan. An inspection of the
26 subsequent registration may be made in connection with
27 the next succeeding on-site inspection.
28 Section 20-20. Forms. The Office of Banks and Real
29 Estate may prescribe forms and procedures for submitting to
30 the Office of Banks and Real Estate.
31 Section 20-25. Real Estate License Administration Fund.
32 All fees collected for registration and for civil penalties
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1 pursuant to this Act and administrative rules adopted under
2 this Act shall be deposited into the Real Estate
3 Administration Fund. The moneys deposited in the Real Estate
4 Administration License Fund shall be appropriated to the
5 Office of Banks and Real Estate for expenses for the
6 administration and enforcement of this Act.
7 Section 20-30. Registrations under preceding Act. All
8 registrations of subdivisions under the Land Sales
9 Registration Act of 1989 in effect on the effective date of
10 this Act shall remain in full force and effect after the
11 effective date of this Act and be considered registered under
12 this Act. The provisions of this Act, insofar as they are the
13 same or substantially the same as those of any prior law,
14 shall be construed as a continuation of such prior law and
15 not as a new enactment. Any existing injunction or temporary
16 restraining order validly obtained under the Land Sales
17 Registration Act of 1989 which prohibits unregistered
18 practice of land sales is not invalidated by the enactment of
19 this Act and shall continue to have full force and effect on
20 and after the effective date of this Act. Any existing
21 discipline or investigation pursuant to a violation under the
22 Land Sales Registration Act of 1989 is not invalidated by the
23 enactment of this Act and shall continue to have full force
24 and effect on and after the effective date of this Act.
25 Section 20-35. Action for compensation; proof of
26 registration. No action or counterclaim may be maintained by
27 any person in any court in this State with respect to any
28 agreement, contract, or services for which registration is
29 required by this Act, or to recover the agreed price or any
30 compensation under any such agreement, or to recover for
31 services for which a registration is required by this Act,
32 without alleging and proving that the person had a valid
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1 registration at the time of making the agreement or doing the
2 work.
3 Article 90. Amendatory Provisions
4 Section 90-5. The Regulatory Sunset Act is amended by
5 adding Section 4.20 as follows:
6 (5 ILCS 80/4.20 new)
7 Sec. 4.20. Act repealed on December 31, 2009. The
8 following Act is repealed on December 31, 2009:
9 The Land Sales Registration Act of 1999.
10 (765 ILCS 85/Act rep.)
11 Section 90-10. The Land Sales Registration Act of 1989
12 is repealed.
13 Article 99. Effective Date
14 Section 99-5. Effective date. This Act takes effect
15 December 30, 1999.