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91_HB2632eng HB2632 Engrossed 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 HB2632 Engrossed -2- LRB9105080DJcdA 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 HB2632 Engrossed -3- LRB9105080DJcdA 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 HB2632 Engrossed -4- LRB9105080DJcdA 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. HB2632 Engrossed -5- LRB9105080DJcdA 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 HB2632 Engrossed -6- LRB9105080DJcdA 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. HB2632 Engrossed -7- LRB9105080DJcdA 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 HB2632 Engrossed -8- LRB9105080DJcdA 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 HB2632 Engrossed -9- LRB9105080DJcdA 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 HB2632 Engrossed -10- LRB9105080DJcdA 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 HB2632 Engrossed -11- LRB9105080DJcdA 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 HB2632 Engrossed -12- LRB9105080DJcdA 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 HB2632 Engrossed -13- LRB9105080DJcdA 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 HB2632 Engrossed -14- LRB9105080DJcdA 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. HB2632 Engrossed -15- LRB9105080DJcdA 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 HB2632 Engrossed -16- LRB9105080DJcdA 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. HB2632 Engrossed -17- LRB9105080DJcdA 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 HB2632 Engrossed -18- LRB9105080DJcdA 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 HB2632 Engrossed -19- LRB9105080DJcdA 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 HB2632 Engrossed -20- LRB9105080DJcdA 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 HB2632 Engrossed -21- LRB9105080DJcdA 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 HB2632 Engrossed -22- LRB9105080DJcdA 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 HB2632 Engrossed -23- LRB9105080DJcdA 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. HB2632 Engrossed -24- LRB9105080DJcdA 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 HB2632 Engrossed -25- LRB9105080DJcdA 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 HB2632 Engrossed -26- LRB9105080DJcdA 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 HB2632 Engrossed -27- LRB9105080DJcdA 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 HB2632 Engrossed -28- LRB9105080DJcdA 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 HB2632 Engrossed -29- LRB9105080DJcdA 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.