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Public Act 103-1039 | ||||
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AN ACT concerning regulation. | ||||
Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly: | ||||
Section 5. The State Finance Act is amended by adding | ||||
Section 5.1015 as follows: | ||||
(30 ILCS 105/5.1015 new) | ||||
Sec. 5.1015. The Real Estate Recovery Fund. | ||||
Section 10. The Real Estate License Act of 2000 is amended | ||||
by changing Sections 1-10, 5-20, 5-25, 5-28, 5-35, 5-45, 5-60, | ||||
5-70, 10-10, 10-20, 15-35, 15-50, 20-20, 20-20.1, 20-50, | ||||
20-82, 25-25, 25-30, 25-35, 30-5, 30-15, and 30-25 and by | ||||
adding Sections 5-60.1 and 5-60.5 as follows: | ||||
(225 ILCS 454/1-10) | ||||
(Section scheduled to be repealed on January 1, 2030) | ||||
Sec. 1-10. Definitions. In this Act, unless the context | ||||
otherwise requires: | ||||
"Act" means the Real Estate License Act of 2000. | ||||
"Address of record" means the designated address recorded | ||||
by the Department in the applicant's or licensee's application | ||||
file or license file as maintained by the Department. | ||||
"Agency" means a relationship in which a broker or |
licensee, whether directly or through an affiliated licensee, | ||
represents a consumer by the consumer's consent, whether | ||
express or implied, in a real property transaction. | ||
"Applicant" means any person, as defined in this Section, | ||
who applies to the Department for a valid license as a managing | ||
broker, broker, or residential leasing agent. | ||
"Blind advertisement" means any real estate advertisement | ||
that is used by a licensee regarding the sale or lease of real | ||
estate, licensed activities, or the hiring of any licensee | ||
under this Act that does not include the sponsoring broker's | ||
complete business name or, in the case of electronic | ||
advertisements, does not provide a direct link to a display | ||
with all the required disclosures. The broker's business name | ||
in the case of a franchise shall include the franchise | ||
affiliation as well as the name of the individual firm. | ||
"Board" means the Real Estate Administration and | ||
Disciplinary Board of the Department as created by Section | ||
25-10 of this Act. | ||
"Broker" means an individual, entity, corporation, foreign | ||
or domestic partnership, limited liability company, registered | ||
limited liability partnership, or other business entity other | ||
than a residential leasing agent who, whether in person or | ||
through any media or technology, for another and for | ||
compensation, or with the intention or expectation of | ||
receiving compensation, either directly or indirectly: | ||
(1) Sells, exchanges, purchases, rents, or leases real |
estate. | ||
(2) Offers to sell, exchange, purchase, rent, or lease | ||
real estate. | ||
(3) Negotiates, offers, attempts, or agrees to | ||
negotiate the sale, exchange, purchase, rental, or leasing | ||
of real estate. | ||
(4) Lists, offers, attempts, or agrees to list real | ||
estate for sale, rent, lease, or exchange. | ||
(5) Whether for another or themselves, engages in a | ||
pattern of business of buying, selling, offering to buy or | ||
sell, marketing for sale, exchanging, or otherwise dealing | ||
in contracts, including assignable contracts for the | ||
purchase or sale of, or options on real estate or | ||
improvements thereon. For purposes of this definition, an | ||
individual or entity will be found to have engaged in a | ||
pattern of business if the individual or entity by itself | ||
or with any combination of other individuals or entities, | ||
whether as partners or common owners in another entity, | ||
has engaged in one or more of these practices on 2 or more | ||
occasions in any 12-month period. | ||
(6) Supervises the collection, offer, attempt, or | ||
agreement to collect rent for the use of real estate. | ||
(7) Advertises or represents oneself as being engaged | ||
in the business of buying, selling, exchanging, renting, | ||
or leasing real estate. | ||
(8) Assists or directs in procuring or referring of |
leads or prospects, intended to result in the sale, | ||
exchange, lease, or rental of real estate. | ||
(9) Assists or directs in the negotiation of any | ||
transaction intended to result in the sale, exchange, | ||
lease, or rental of real estate. | ||
(10) Opens real estate to the public for marketing | ||
purposes. | ||
(11) Sells, rents, leases, or offers for sale or lease | ||
real estate at auction. | ||
(12) Prepares or provides a broker price opinion or | ||
comparative market analysis as those terms are defined in | ||
this Act, pursuant to the provisions of Section 10-45 of | ||
this Act. | ||
"Brokerage agreement" means an a written or oral agreement | ||
between a sponsoring broker and a consumer for licensed | ||
activities, or the performance of future licensed activities, | ||
to be provided to a consumer in return for compensation or the | ||
right to receive compensation from another. Brokerage | ||
agreements may constitute either a bilateral or a unilateral | ||
agreement between the broker and the broker's client depending | ||
upon the content of the brokerage agreement. All exclusive | ||
brokerage agreements shall be in writing and may be exclusive | ||
or non-exclusive . | ||
"Broker price opinion" means an estimate or analysis of | ||
the probable selling price of a particular interest in real | ||
estate, which may provide a varying level of detail about the |
property's condition, market, and neighborhood and information | ||
on comparable sales. The activities of a real estate broker or | ||
managing broker engaging in the ordinary course of business as | ||
a broker, as defined in this Section, shall not be considered a | ||
broker price opinion if no compensation is paid to the broker | ||
or managing broker, other than compensation based upon the | ||
sale or rental of real estate. A broker price opinion shall not | ||
be considered an appraisal within the meaning of the Real | ||
Estate Appraiser Licensing Act of 2002, any amendment to that | ||
Act, or any successor Act. | ||
"Client" means a person who is being represented by a | ||
licensee. | ||
"Comparative market analysis" means an analysis or opinion | ||
regarding pricing, marketing, or financial aspects relating to | ||
a specified interest or interests in real estate that may be | ||
based upon an analysis of comparative market data, the | ||
expertise of the real estate broker or managing broker, and | ||
such other factors as the broker or managing broker may deem | ||
appropriate in developing or preparing such analysis or | ||
opinion. The activities of a real estate broker or managing | ||
broker engaging in the ordinary course of business as a | ||
broker, as defined in this Section, shall not be considered a | ||
comparative market analysis if no compensation is paid to the | ||
broker or managing broker, other than compensation based upon | ||
the sale or rental of real estate. A comparative market | ||
analysis shall not be considered an appraisal within the |
meaning of the Real Estate Appraiser Licensing Act of 2002, | ||
any amendment to that Act, or any successor Act. | ||
"Compensation" means the valuable consideration given by | ||
one person or entity to another person or entity in exchange | ||
for the performance of some activity or service. Compensation | ||
shall include the transfer of valuable consideration, | ||
including without limitation the following: | ||
(1) commissions; | ||
(2) referral fees; | ||
(3) bonuses; | ||
(4) prizes; | ||
(5) merchandise; | ||
(6) finder fees; | ||
(7) performance of services; | ||
(8) coupons or gift certificates; | ||
(9) discounts; | ||
(10) rebates; | ||
(11) a chance to win a raffle, drawing, lottery, or | ||
similar game of chance not prohibited by any other law or | ||
statute; | ||
(12) retainer fee; or | ||
(13) salary. | ||
"Confidential information" means information obtained by a | ||
licensee from a client during the term of a brokerage | ||
agreement that (i) was made confidential by the written | ||
request or written instruction of the client, (ii) deals with |
the negotiating position of the client, or (iii) is | ||
information the disclosure of which could materially harm the | ||
negotiating position of the client, unless at any time: | ||
(1) the client permits the disclosure of information | ||
given by that client by word or conduct; | ||
(2) the disclosure is required by law; or | ||
(3) the information becomes public from a source other | ||
than the licensee. | ||
"Confidential information" shall not be considered to | ||
include material information about the physical condition of | ||
the property. | ||
"Consumer" means a person or entity seeking or receiving | ||
licensed activities. | ||
"Coordinator" means the Coordinator of Real Estate created | ||
in Section 25-15 of this Act. | ||
"Credit hour" means 50 minutes of instruction in course | ||
work that meets the requirements set forth in rules adopted by | ||
the Department. | ||
"Customer" means a consumer who is not being represented | ||
by the licensee. | ||
"Department" means the Department of Financial and | ||
Professional Regulation. | ||
"Designated agency" means a contractual relationship | ||
between a sponsoring broker and a client under Section 15-50 | ||
of this Act in which one or more licensees associated with or | ||
employed by the broker are designated as agent of the client. |
"Designated agent" means a sponsored licensee named by a | ||
sponsoring broker as the legal agent of a client, as provided | ||
for in Section 15-50 of this Act. | ||
"Designated managing broker" means a managing broker who | ||
has supervisory responsibilities for licensees in one or, in | ||
the case of a multi-office company, more than one office and | ||
who has been appointed as such by the sponsoring broker | ||
registered with the Department. | ||
"Director" means the Director of Real Estate within the | ||
Department of Financial and Professional Regulation. | ||
"Dual agency" means an agency relationship in which a | ||
licensee is representing both buyer and seller or both | ||
landlord and tenant in the same transaction. When the agency | ||
relationship is a designated agency, the question of whether | ||
there is a dual agency shall be determined by the agency | ||
relationships of the designated agent of the parties and not | ||
of the sponsoring broker. | ||
"Education provider" means a school licensed by the | ||
Department offering courses in pre-license, post-license, or | ||
continuing education required by this Act. | ||
"Employee" or other derivative of the word "employee", | ||
when used to refer to, describe, or delineate the relationship | ||
between a sponsoring broker and a managing broker, broker, or | ||
a residential leasing agent, shall be construed to include an | ||
independent contractor relationship, provided that a written | ||
agreement exists that clearly establishes and states the |
relationship. | ||
"Escrow moneys" means all moneys, promissory notes, or any | ||
other type or manner of legal tender or financial | ||
consideration deposited with any person for the benefit of the | ||
parties to the transaction. A transaction exists once an | ||
agreement has been reached and an accepted real estate | ||
contract signed or lease agreed to by the parties. "Escrow | ||
moneys" includes, without limitation, earnest moneys and | ||
security deposits, except those security deposits in which the | ||
person holding the security deposit is also the sole owner of | ||
the property being leased and for which the security deposit | ||
is being held. | ||
"Electronic means of proctoring" means a methodology | ||
providing assurance that the person taking a test and | ||
completing the answers to questions is the person seeking | ||
licensure or credit for continuing education and is doing so | ||
without the aid of a third party or other device. | ||
"Exclusive brokerage agreement" means a written brokerage | ||
agreement that provides that the sponsoring broker has the | ||
sole right, through one or more sponsored licensees, to act as | ||
the exclusive agent or representative of the client and that | ||
meets the requirements of Section 15-75 of this Act. | ||
"Inactive" means a status of licensure where the licensee | ||
holds a current license under this Act, but the licensee is | ||
prohibited from engaging in licensed activities because the | ||
licensee is unsponsored or the license of the sponsoring |
broker with whom the licensee is associated or by whom the | ||
licensee is employed is currently expired, revoked, suspended, | ||
or otherwise rendered invalid under this Act. The license of | ||
any business entity that is not in good standing with the | ||
Illinois Secretary of State, or is not authorized to conduct | ||
business in Illinois, shall immediately become inactive and | ||
that entity shall be prohibited from engaging in any licensed | ||
activities. | ||
"Leads" means the name or names of a potential buyer, | ||
seller, lessor, lessee, or client of a licensee. | ||
"License" means the privilege conferred by the Department | ||
to a person that has fulfilled all requirements prerequisite | ||
to any type of licensure under this Act. | ||
"Licensed activities" means those activities listed in the | ||
definition of "broker" under this Section. | ||
"Licensee" means any person licensed under this Act. | ||
"Listing presentation" means any communication, written or | ||
oral and by any means or media, between a managing broker or | ||
broker and a consumer in which the licensee is attempting to | ||
secure a brokerage agreement with the consumer to market the | ||
consumer's real estate for sale or lease. | ||
"Managing broker" means a licensee who may be authorized | ||
to assume responsibilities as a designated managing broker for | ||
licensees in one or, in the case of a multi-office company, | ||
more than one office, upon appointment by the sponsoring | ||
broker and registration with the Department. A managing broker |
may act as one's own sponsor. | ||
"Medium of advertising" means any method of communication | ||
intended to influence the general public to use or purchase a | ||
particular good or service or real estate, including, but not | ||
limited to, print, electronic, social media, and digital | ||
forums. | ||
"Non-exclusive brokerage agreement" means a written | ||
brokerage agreement that provides that the sponsoring broker | ||
has the non-exclusive right, through one or more sponsored | ||
licensees, to act as an agent or representative of the client | ||
for the performance of licensed activities and meets the | ||
requirements of Section 15-50 of this Act. | ||
"Office" means a broker's place of business where the | ||
general public is invited to transact business and where | ||
records may be maintained and licenses readily available, | ||
whether or not it is the broker's principal place of business. | ||
"Person" means and includes individuals, entities, | ||
corporations, limited liability companies, registered limited | ||
liability partnerships, foreign and domestic partnerships, and | ||
other business entities, except that when the context | ||
otherwise requires, the term may refer to a single individual | ||
or other described entity. | ||
"Proctor" means any person, including, but not limited to, | ||
an instructor, who has a written agreement to administer | ||
examinations fairly and impartially with a licensed education | ||
provider. |
"Real estate" means and includes leaseholds as well as any | ||
other interest or estate in land, whether corporeal, | ||
incorporeal, freehold, or non-freehold and whether the real | ||
estate is situated in this State or elsewhere. "Real estate" | ||
does not include property sold, exchanged, or leased as a | ||
timeshare or similar vacation item or interest, vacation club | ||
membership, or other activity formerly regulated under the | ||
Real Estate Timeshare Act of 1999 (repealed). | ||
"Regular employee" means a person working an average of 20 | ||
hours per week for a person or entity who would be considered | ||
as an employee under the Internal Revenue Service rules for | ||
classifying workers. | ||
"Renewal period" means the period beginning 90 days prior | ||
to the expiration date of a license. | ||
"Residential leasing agent" means a person who is employed | ||
by a broker to engage in licensed activities limited to | ||
leasing residential real estate who has obtained a license as | ||
provided for in Section 5-5 of this Act. | ||
"Secretary" means the Secretary of the Department of | ||
Financial and Professional Regulation, or a person authorized | ||
by the Secretary to act in the Secretary's stead. | ||
"Sponsoring broker" means the broker who certifies to the | ||
Department the broker's sponsorship of a licensed managing | ||
broker, broker, or a residential leasing agent. | ||
"Sponsorship" means that a sponsoring broker has certified | ||
to the Department that a managing broker, broker, or |
residential leasing agent is employed by or associated by | ||
written agreement with the sponsoring broker and the | ||
Department has registered the sponsorship, as provided for in | ||
Section 5-40 of this Act. | ||
"Team" means any 2 or more licensees who work together to | ||
provide real estate brokerage services, represent themselves | ||
to the public as being part of a team or group, are identified | ||
by a team name that is different than their sponsoring | ||
broker's name, and together are supervised by the same | ||
managing broker and sponsored by the same sponsoring broker. | ||
"Team" does not mean a separately organized, incorporated, or | ||
legal entity. | ||
(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24 .) | ||
(225 ILCS 454/5-20) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 5-20. Exemptions from managing broker, broker, or | ||
residential leasing agent license requirement; Department | ||
exemption from education provider and related licenses. The | ||
requirement for holding a license under this Article 5 shall | ||
not apply to: | ||
(1) Any person, as defined in Section 1-10, who: (A) | ||
is the that as owner or lessor of real property who | ||
performs any of the acts described in the definition of | ||
"broker" under Section 1-10 of this Act only as it relates | ||
to the owned or leased property; or (B) is with reference |
to property owned or leased by it, or to the regular | ||
employee who, in the course of the employee's duties and | ||
incidental to employees thereof with respect to the | ||
property so owned or leased, where such acts are performed | ||
in the regular course of or as an incident to the | ||
management, sale, or other disposition of such property | ||
and the investment of the owned or leased property | ||
performs therein, if such regular employees do not perform | ||
any of the acts described in the definition of "broker" | ||
under Section 1-10 of this Act in connection with a | ||
vocation of selling or leasing any real estate or the | ||
improvements thereon not so owned or leased . The exemption | ||
in this item (1) does not apply to the person, the person's | ||
employees, or the person's agents performing licensed | ||
activity for property not owned or leased by that person. | ||
(2) An attorney in fact acting under a duly executed | ||
and recorded power of attorney to convey real estate from | ||
the owner or lessor or the services rendered by an | ||
attorney at law in the performance of the attorney's duty | ||
as an attorney at law. | ||
(3) Any person acting as receiver, trustee in | ||
bankruptcy, administrator, executor, or guardian or while | ||
acting under a court order or under the authority of a will | ||
or testamentary trust. | ||
(4) Any person acting as a resident manager for the | ||
owner or any employee acting as the resident manager for a |
broker managing an apartment building, duplex, or | ||
apartment complex, when the resident manager resides on | ||
the premises, the premises is the primary residence of the | ||
resident manager, and the resident manager is engaged in | ||
the leasing of that property. | ||
(5) Any officer or employee of a federal agency in the | ||
conduct of official duties. | ||
(6) Any officer or employee of the State government or | ||
any political subdivision thereof performing official | ||
duties. | ||
(7) Any multiple listing service or other similar | ||
information exchange that is engaged in the collection and | ||
dissemination of information concerning real estate | ||
available for sale, purchase, lease, or exchange for the | ||
purpose of providing licensees with a system by which | ||
licensees may cooperatively share information along with | ||
which no other licensed activities, as defined in Section | ||
1-10 of this Act, are provided. | ||
(8) Railroads and other public utilities regulated by | ||
the State of Illinois, or the officers or full-time | ||
employees thereof, unless the performance of any licensed | ||
activities is in connection with the sale, purchase, | ||
lease, or other disposition of real estate or investment | ||
therein that does not require the approval of the | ||
appropriate State regulatory authority. | ||
(9) Any medium of advertising in the routine course of |
selling or publishing advertising along with which no | ||
other licensed activities, as defined in Section 1-10 of | ||
this Act, are provided. | ||
(10) Any resident lessee of a residential dwelling | ||
unit who refers for compensation to the owner of the | ||
dwelling unit, or to the owner's agent, prospective | ||
lessees of dwelling units in the same building or complex | ||
as the resident lessee's unit, but only if the resident | ||
lessee (i) refers no more than 3 prospective lessees in | ||
any 12-month period, (ii) receives compensation of no more | ||
than $5,000 or the equivalent of 2 months' rent, whichever | ||
is less, in any 12-month period, and (iii) limits | ||
activities to referring prospective lessees to the owner, | ||
or the owner's agent, and does not show a residential | ||
dwelling unit to a prospective lessee, discuss terms or | ||
conditions of leasing a dwelling unit with a prospective | ||
lessee, or otherwise participate in the negotiation of the | ||
leasing of a dwelling unit. | ||
(11) The purchase, sale, or transfer of a timeshare or | ||
similar vacation item or interest, vacation club | ||
membership, or other activity formerly regulated under the | ||
Real Estate Timeshare Act of 1999 (repealed). | ||
(12) (Blank). | ||
(13) Any person who is licensed without examination | ||
under Section 10-25 (now repealed) of the Auction License | ||
Act is exempt from holding a managing broker's or broker's |
license under this Act for the limited purpose of selling | ||
or leasing real estate at auction, so long as: | ||
(A) that person has made application for said | ||
exemption by July 1, 2000; | ||
(B) that person verifies to the Department that | ||
the person has sold real estate at auction for a period | ||
of 5 years prior to licensure as an auctioneer; | ||
(C) the person has had no lapse in the licensure as | ||
an auctioneer; and | ||
(D) the license issued under the Auction License | ||
Act has not been disciplined for violation of those | ||
provisions of Article 20 of the Auction License Act | ||
dealing with or related to the sale or lease of real | ||
estate at auction. | ||
(14) A person who holds a valid license under the | ||
Auction License Act and a valid real estate auction | ||
certification and conducts auctions for the sale of real | ||
estate under Section 5-32 of this Act. | ||
(15) A hotel operator who is registered with the | ||
Illinois Department of Revenue and pays taxes under the | ||
Hotel Operators' Occupation Tax Act and rents a room or | ||
rooms in a hotel as defined in the Hotel Operators' | ||
Occupation Tax Act for a period of not more than 30 | ||
consecutive days and not more than 60 days in a calendar | ||
year or a person who participates in an online marketplace | ||
enabling persons to rent out all or part of the person's |
owned residence. | ||
(16) Notwithstanding any provisions to the contrary, | ||
the Department and its employees shall be exempt from | ||
education, course provider, instructor, and course license | ||
requirements and fees while acting in an official capacity | ||
on behalf of the Department. Courses offered by the | ||
Department shall be eligible for continuing education | ||
credit. | ||
(Source: P.A. 103-236, eff. 1-1-24 .) | ||
(225 ILCS 454/5-25) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 5-25. Good moral character. | ||
(a) When an applicant has had a license revoked on a prior | ||
occasion or when an applicant is found to have committed any of | ||
the practices enumerated in Section 20-20 of this Act or when | ||
an applicant has been convicted of or enters a plea of guilty | ||
or nolo contendere to forgery, embezzlement, obtaining money | ||
under false pretenses, larceny, extortion, conspiracy to | ||
defraud, or any other similar offense or offenses or has been | ||
convicted of a felony involving moral turpitude in any court | ||
of competent jurisdiction in this or any other state, | ||
district, or territory of the United States or of a foreign | ||
country, the Department Board may consider the prior | ||
revocation, conduct, or conviction in its determination of the | ||
applicant's moral character and whether to grant the applicant |
a license. | ||
(b) In its consideration of the prior revocation, conduct, | ||
or conviction, the Department Board shall take into account | ||
the nature of the conduct, any aggravating or extenuating | ||
circumstances, the time elapsed since the revocation, conduct, | ||
or conviction, the rehabilitation or restitution performed by | ||
the applicant, mitigating factors, and any other factors that | ||
the Department Board deems relevant, including, but not | ||
limited to: | ||
(1) the lack of direct relation of the offense for | ||
which the applicant was previously convicted to the | ||
duties, functions, and responsibilities of the position | ||
for which a license is sought; | ||
(2) unless otherwise specified, whether 5 years since | ||
a felony conviction or 3 years since release from | ||
confinement for the conviction, whichever is later, have | ||
passed without a subsequent conviction; | ||
(3) if the applicant was previously licensed or | ||
employed in this State or other states or jurisdictions, | ||
the lack of prior misconduct arising from or related to | ||
the licensed position or position of employment; | ||
(4) the age of the person at the time of the criminal | ||
offense; | ||
(5) if, due to the applicant's criminal conviction | ||
history, the applicant would be explicitly prohibited by | ||
federal rules or regulations from working in the position |
for which a license is sought; | ||
(6) successful completion of sentence and, for | ||
applicants serving a term of parole or probation, a | ||
progress report provided by the applicant's probation or | ||
parole officer that documents the applicant's compliance | ||
with conditions of supervision; | ||
(7) evidence of the applicant's present fitness and | ||
professional character; | ||
(8) evidence of rehabilitation or rehabilitative | ||
effort during or after incarceration, or during or after a | ||
term of supervision, including, but not limited to, a | ||
certificate of good conduct under Section 5-5.5-25 of the | ||
Unified Code of Corrections or a certificate of relief | ||
from disabilities under Section 5-5.5-10 of the Unified | ||
Code of Corrections; and | ||
(9) any other mitigating factors that contribute to | ||
the person's potential and current ability to perform the | ||
job duties. | ||
(c) The Department shall not require applicants to report | ||
the following information and shall not consider the following | ||
criminal history records in connection with an application for | ||
licensure or registration: | ||
(1) juvenile adjudications of delinquent minors as | ||
defined in Section 5-105 of the Juvenile Court Act of 1987 | ||
subject to the restrictions set forth in Section 5-130 of | ||
that Act; |
(2) law enforcement records, court records, and | ||
conviction records of an individual who was 17 years old | ||
at the time of the offense and before January 1, 2014, | ||
unless the nature of the offense required the individual | ||
to be tried as an adult; | ||
(3) records of arrests not followed by a charge or | ||
conviction; | ||
(4) records of arrests where the charges were | ||
dismissed unless related to the practice of the | ||
profession; however, applicants shall not be asked to | ||
report any arrests, and an arrest not followed by a | ||
conviction shall not be the basis of a denial and may be | ||
used only to assess an applicant's rehabilitation; | ||
(5) convictions overturned by a higher court; or | ||
(6) convictions or arrests that have been sealed or | ||
expunged. | ||
(d) If an applicant makes a false statement of material | ||
fact on the application, the false statement may in itself be | ||
sufficient grounds to revoke or refuse to issue a license. | ||
(e) A licensee shall report to the Department, in a manner | ||
prescribed by the Department and within 30 days after the | ||
occurrence of: (1) any conviction of or plea of guilty, or nolo | ||
contendere to forgery, embezzlement, obtaining money under | ||
false pretenses, larceny, extortion, conspiracy to defraud, or | ||
any similar offense or offenses or any conviction of a felony | ||
involving moral turpitude; (2) the entry of an administrative |
sanction by a government agency in this State or any other | ||
jurisdiction that has as an essential element of dishonesty or | ||
fraud or involves larceny, embezzlement, or obtaining money, | ||
property, or credit by false pretenses; or (3) any conviction | ||
of or plea of guilty or nolo contendere to a crime that | ||
subjects the licensee to compliance with the requirements of | ||
the Sex Offender Registration Act. | ||
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.) | ||
(225 ILCS 454/5-28) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 5-28. Requirements for licensure as a managing | ||
broker. | ||
(a) Every applicant for licensure as a managing broker | ||
must meet the following qualifications: | ||
(1) be at least 20 years of age; | ||
(2) be of good moral character; | ||
(3) have been licensed at least 2 consecutive years | ||
out of the preceding 3 years as a broker; | ||
(4) successfully complete a 4-year course of study in | ||
high school or secondary school approved by the state in | ||
which the school is located, or a State of Illinois High | ||
School Diploma, which shall be verified under oath by the | ||
applicant; | ||
(5) provide satisfactory evidence of having completed | ||
at least 165 hours, 120 of which shall be those hours |
required pre-licensure and post-licensure to obtain a | ||
broker's license, and 45 additional hours completed within | ||
the year immediately preceding the filing of an | ||
application for a managing broker's license, which hours | ||
shall focus on brokerage administration and management and | ||
residential leasing agent management and include at least | ||
15 hours in the classroom or by live, interactive webinar | ||
or online distance education courses; | ||
(6) personally take and pass a written examination on | ||
Illinois specific real estate brokerage laws authorized by | ||
the Department; and | ||
(7) submit a valid application for issuance of a | ||
license accompanied by the fees specified by rule. | ||
(b) The requirements specified in item (5) of subsection | ||
(a) of this Section do not apply to applicants who are | ||
currently admitted to practice law by the Supreme Court of | ||
Illinois and are currently in active standing. | ||
(Source: P.A. 101-357, eff. 8-9-19; 102-1100, eff. 1-1-23 .) | ||
(225 ILCS 454/5-35) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 5-35. Examination; managing broker, broker, or | ||
residential leasing agent. | ||
(a) The Department shall authorize examinations at such | ||
times and places as it may designate. The examination shall be | ||
of a character to give a fair test of the qualifications of the |
applicant to practice as a managing broker, broker, or | ||
residential leasing agent. Applicants for examination as a | ||
managing broker, broker, or residential leasing agent shall be | ||
required to pay, either to the Department or the designated | ||
testing service, a fee covering the cost of providing the | ||
examination. Failure to appear for the examination on the | ||
scheduled date, at the time and place specified, after the | ||
applicant's application for examination has been received and | ||
acknowledged by the Department or its designated testing | ||
service, shall result in the forfeiture of the examination | ||
fee. An applicant shall be eligible to take the examination | ||
only after successfully completing the education requirements | ||
and attaining the minimum age provided for in Article 5 of this | ||
Act. Approved pre-license education, as prescribed by this Act | ||
for licensure as a managing broker, broker, or residential | ||
leasing agent, shall be valid for 2 years after the date of | ||
satisfactory completion of all required pre-license education. | ||
Each applicant shall be required to establish compliance with | ||
the eligibility requirements in the manner provided by the | ||
rules promulgated for the administration of this Act. | ||
(b) If a person who has received a passing score on the | ||
written examination described in this Section fails to submit | ||
an application and meet all requirements for a license under | ||
this Act within one year after receiving a passing score on the | ||
examination, credit for the examination shall terminate. The | ||
person thereafter may make a new application for examination. |
(c) If an applicant has failed an examination 4 | ||
consecutive times, the applicant must repeat the pre-license | ||
education required to sit for that examination. For the | ||
purposes of this Section, the fifth attempt shall be the same | ||
as the first , and the applicant must complete a new | ||
application for examination . Approved education, as prescribed | ||
by this Act for licensure as a managing broker, broker, or | ||
residential leasing agent, shall be valid for 2 years after | ||
the date of satisfactory completion of the education. | ||
(d) The Department may employ consultants for the purposes | ||
of preparing and conducting examinations. | ||
(e) Each applicant shall establish the applicant's | ||
compliance with the eligibility requirements in the manner | ||
provided by the rules adopted for the administration of this | ||
Act. | ||
(Source: P.A. 101-357, eff. 8-9-19.) | ||
(225 ILCS 454/5-45) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 5-45. Offices. | ||
(a) If a sponsoring broker maintains more than one office | ||
within the State, the sponsoring broker shall notify the | ||
Department in a manner prescribed by the Department for each | ||
office other than the sponsoring broker's principal place of | ||
business. The brokerage license shall be displayed | ||
conspicuously in each office. The name of each branch office |
shall be the same as that of the sponsoring broker's principal | ||
office or shall clearly delineate the office's relationship | ||
with the principal office. | ||
(b) The sponsoring broker shall name a designated managing | ||
broker for each office and the sponsoring broker shall be | ||
responsible for supervising all designated managing brokers. | ||
The sponsoring broker shall notify the Department in a manner | ||
prescribed by the Department of the name of all designated | ||
managing brokers of the sponsoring broker and the office or | ||
offices they manage. Any changes in designated managing | ||
brokers shall be reported to the Department in a manner | ||
prescribed by the Department within 15 days of the change. | ||
Failure to do so shall subject the sponsoring broker to | ||
discipline under Section 20-20 of this Act. | ||
(c) The sponsoring broker shall, within 24 hours, notify | ||
the Department in a manner prescribed by the Department of any | ||
opening, closing, or change in location of any office. | ||
(d) Except as provided in this Section, each sponsoring | ||
broker shall maintain an office, or place of business within | ||
this State for the transaction of real estate business, shall | ||
conspicuously display an identification sign on the outside of | ||
the physical office of adequate size and visibility. Any | ||
record required by this Act to be created or maintained shall | ||
be, in the case of a physical record, securely stored and | ||
accessible for inspection by the Department at the sponsoring | ||
broker's principal office and, in the case of an electronic |
record, securely stored in the format in which it was | ||
originally generated, sent, or received and accessible for | ||
inspection by the Department by secure electronic access to | ||
the record. Any record relating to a transaction of a special | ||
account shall be maintained for a minimum of 5 years, and any | ||
electronic record shall be backed up at least monthly. The | ||
physical office or place of business shall not be located in | ||
any retail or financial business establishment unless it is | ||
clearly separated from the other business and is situated | ||
within a distinct area within the establishment. | ||
(e) A nonresident broker who is licensed in this State by | ||
examination or pursuant to the provisions of Section 5-60 or | ||
5-60.5 of this Act shall not be required to maintain a definite | ||
office or place of business in this State so long as the broker | ||
provided all of the following conditions are met : | ||
(1) the broker maintains an active broker's license in | ||
the broker's other state of licensure domicile ; | ||
(2) the broker maintains an office in the broker's | ||
other state of licensure domicile ; and | ||
(3) files the broker has filed with the Department | ||
written statements appointing the Secretary to act as the | ||
broker's agent upon whom all judicial and other process or | ||
legal notices directed to the licensee may be served and | ||
agreeing to abide by all of the provisions of this Act with | ||
respect to the broker's real estate activities within the | ||
State of Illinois and submitting to the jurisdiction of |
the Department. | ||
The statements under subdivision (3) of this Section shall | ||
be in form and substance the same as those statements required | ||
under Section 5-60 of this Act and shall operate to the same | ||
extent. | ||
(f) The Department may adopt rules to regulate the | ||
operation of virtual offices that do not have a fixed | ||
location. A broker who qualifies under subsection (e) of this | ||
Section may also operate a virtual office in the State subject | ||
to all requirements of this Act and the rules adopted under | ||
this Act. | ||
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.) | ||
(225 ILCS 454/5-60) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 5-60. Managing broker licensed in another state; | ||
broker licensed in another state; reciprocal agreements; agent | ||
for service of process. | ||
(a) A managing broker's license may be issued by the | ||
Department to a managing broker or its equivalent licensed | ||
under the laws of another state of the United States, under the | ||
following conditions: | ||
(1) the managing broker holds a managing broker's | ||
license in a state that has entered into a reciprocal | ||
agreement with the Department; | ||
(2) the standards for that state for licensing as a |
managing broker are substantially equal to or greater than | ||
the minimum standards in the State of Illinois; | ||
(3) the managing broker has been actively practicing | ||
as a managing broker in the managing broker's state of | ||
licensure for a period of not less than 2 years, | ||
immediately prior to the date of application; | ||
(4) the managing broker furnishes the Department with | ||
a statement under seal of the proper licensing authority | ||
of the state in which the managing broker is licensed | ||
showing that the managing broker has an active managing | ||
broker's license, that the managing broker is in good | ||
standing, and any disciplinary action taken against the | ||
managing broker in that state; | ||
(5) the managing broker passes a test on Illinois | ||
specific real estate brokerage laws; and | ||
(6) the managing broker was licensed by an examination | ||
in the state that has entered into a reciprocal agreement | ||
with the Department. | ||
(b) A broker's license may be issued by the Department to a | ||
broker or its equivalent licensed under the laws of another | ||
state of the United States, under the following conditions: | ||
(1) the broker holds a broker's license in a state | ||
that has entered into a reciprocal agreement with the | ||
Department; | ||
(2) the standards for that state for licensing as a | ||
broker are substantially equivalent to or greater than the |
minimum standards in the State of Illinois; | ||
(3) (blank); | ||
(4) the broker furnishes the Department with a | ||
statement under seal of the proper licensing authority of | ||
the state in which the broker is licensed showing that the | ||
broker has an active broker's license, that the broker is | ||
in good standing, and any disciplinary action taken | ||
against the broker in that state; | ||
(5) the broker passes a test on Illinois specific real | ||
estate brokerage laws; and | ||
(6) the broker was licensed by an examination in a | ||
state that has entered into a reciprocal agreement with | ||
the Department. | ||
(c) (Blank). | ||
(d) As a condition precedent to the issuance of a license | ||
to a managing broker or broker pursuant to this Section, the | ||
managing broker or broker shall agree in writing to abide by | ||
all the provisions of this Act with respect to real estate | ||
activities within the State of Illinois and submit to the | ||
jurisdiction of the Department as provided in this Act. The | ||
agreement shall be filed with the Department and shall remain | ||
in force for so long as the managing broker or broker is | ||
licensed by this State and thereafter with respect to acts or | ||
omissions committed while licensed as a managing broker or | ||
broker in this State. | ||
(e) The Prior to the issuance of any license to any |
managing broker or broker pursuant to this Section, | ||
verification of active licensure issued for the conduct of | ||
such business in any other state must be filed with the | ||
Department by the managing broker or broker, and the same fees | ||
must be paid as provided in this Act for the obtaining of a | ||
managing broker's or broker's license in this State. | ||
(f) Licenses previously granted under reciprocal | ||
agreements with other states shall remain in force so long as | ||
the Department has a reciprocal agreement with the state that | ||
includes the requirements of this Section, unless that license | ||
is suspended, revoked, or terminated by the Department for any | ||
reason provided for suspension, revocation, or termination of | ||
a resident licensee's license. Licenses granted under | ||
reciprocal agreements may be renewed in the same manner as a | ||
resident's license. | ||
(g) Prior to the issuance of a license to a nonresident | ||
managing broker or broker, the managing broker or broker shall | ||
file with the Department, in a manner prescribed by the | ||
Department, a designation in writing that appoints the | ||
Secretary to act as agent upon whom all judicial and other | ||
process or legal notices directed to the managing broker or | ||
broker may be served. Service upon the agent so designated | ||
shall be equivalent to personal service upon the licensee. | ||
Copies of the appointment, certified by the Secretary, shall | ||
be deemed sufficient evidence thereof and shall be admitted in | ||
evidence with the same force and effect as the original |
thereof might be admitted. In the written designation, the | ||
managing broker or broker shall agree that any lawful process | ||
against the licensee that is served upon the agent shall be of | ||
the same legal force and validity as if served upon the | ||
licensee and that the authority shall continue in force so | ||
long as any liability remains outstanding in this State. Upon | ||
the receipt of any process or notice, the Secretary shall | ||
forthwith deliver a copy of the same by regular mail or email | ||
to the last known business address or email address of the | ||
licensee. | ||
(h) (Blank). Any person holding a valid license under this | ||
Section shall be eligible to obtain a managing broker's | ||
license or a broker's license without examination should that | ||
person change their state of domicile to Illinois and that | ||
person otherwise meets the qualifications for licensure under | ||
this Act. | ||
(i) This Section is repealed on January 1, 2026. | ||
(Source: P.A. 103-236, eff. 1-1-24 .) | ||
(225 ILCS 454/5-60.1 new) | ||
Sec. 5-60.1. Applications for licensure based upon | ||
reciprocal agreements. On and after January 1, 2026 (the | ||
repeal date of Section 5-60), applications for licensure based | ||
upon reciprocal agreements shall not be accepted. Licenses | ||
granted under reciprocal agreements prior to January 1, 2026 | ||
shall remain in force and may be renewed in the same manner as |
provided for a broker or managing broker license under Section | ||
5-50 of this Act and by rule. | ||
(225 ILCS 454/5-60.5 new) | ||
Sec. 5-60.5. Managing broker licensed in another state; | ||
broker licensed in another state; endorsement requirements; | ||
agent for service of process. | ||
(a) A managing broker's license may be issued by the | ||
Department to a managing broker or its equivalent licensed | ||
under the laws of another state or jurisdiction of the United | ||
States under the following conditions: | ||
(1) the managing broker holds an active managing | ||
broker's license or its equivalent in another state or | ||
jurisdiction; | ||
(2) the managing broker has been actively practicing | ||
as a managing broker or its license equivalent in the | ||
managing broker's state or jurisdiction of licensure for a | ||
period of not less than 2 years immediately prior to the | ||
date of application; | ||
(3) the managing broker furnishes the Department with | ||
an official statement from the proper licensing authority | ||
of each state or jurisdiction in which the managing broker | ||
is licensed certifying (i) that the managing broker has an | ||
active license, (ii) that the managing broker is in good | ||
standing, and (iii) any history of discipline against the | ||
managing broker in that state or jurisdiction of |
licensure; | ||
(4) the managing broker passes a test on Illinois | ||
specific real estate brokerage laws; and | ||
(5) the managing broker provides proof of successful | ||
completion of a pre-license endorsement course approved by | ||
the Department. | ||
(b) A broker's license may be issued by the Department to a | ||
broker or its equivalent licensed under the laws of another | ||
state or jurisdiction of the United States under the following | ||
conditions: | ||
(1) the broker holds an active broker's license or its | ||
equivalent in another state or jurisdiction; | ||
(2) the broker furnishes the Department with an | ||
official statement from the proper licensing authority of | ||
each state or jurisdiction in which the broker is licensed | ||
certifying (i) whether the broker has an active license, | ||
(ii) that the broker is in good standing, and (iii) any | ||
history of discipline against the broker in that state or | ||
jurisdiction of licensure; | ||
(3) the broker passes a test on Illinois specific real | ||
estate brokerage laws; | ||
(4) the broker provides proof of successful completion | ||
of a pre-license endorsement course approved by the | ||
Department; and | ||
(5) if the broker has been actively practicing as a | ||
broker or its license equivalent in any other state or |
jurisdiction for less than 2 years immediately prior to | ||
the date of application, the broker must complete the 45 | ||
hours of post-license broker education prescribed in this | ||
Act and by rule. | ||
(c) As a condition precedent to the issuance of a license | ||
to a managing broker or broker pursuant to this Section, the | ||
managing broker or broker shall agree to abide by all the | ||
provisions of this Act with respect to managing broker's or | ||
broker's real estate activities within the State of Illinois | ||
and submit to the jurisdiction of the Department as provided | ||
in this Act. The agreement shall remain in force for so long as | ||
the managing broker or broker is licensed by this State and | ||
thereafter with respect to acts or omissions committed while | ||
licensed in this State. | ||
(d) Prior to the issuance of a license to a nonresident | ||
managing broker or broker, the managing broker or broker shall | ||
file with the Department a designation in writing that | ||
appoints the Secretary to act as the managing broker's or | ||
broker's agent upon whom all judicial and other process or | ||
legal notices directed to the managing broker or broker may be | ||
served. Service upon the Secretary shall be equivalent to | ||
personal service upon the licensee. Copies of the appointment, | ||
certified by the Secretary, shall be deemed sufficient | ||
evidence and shall be admitted into evidence with the same | ||
force and effect as if the original is admitted. | ||
(e) The same fees must be paid as provided in this Act for |
obtaining a managing broker's or broker's license in this | ||
State. | ||
(f) In the written designation, the managing broker or | ||
broker shall agree that any lawful process against the | ||
licensee that is served upon the agent shall be of the same | ||
legal force and validity as if served upon the licensee and | ||
that the authority shall continue in force so long as any | ||
liability remains outstanding in this State. Upon the receipt | ||
of any process or notice, the Secretary shall deliver a copy of | ||
the same by regular mail or email to the mailing address or | ||
email address of record of the licensee. | ||
(225 ILCS 454/5-70) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 5-70. Continuing education requirement; managing | ||
broker or broker. | ||
(a) The requirements of this Section apply to all managing | ||
brokers and brokers. | ||
(b) Except as otherwise provided in this Section, each | ||
person who applies for renewal of a license as a managing | ||
broker or broker must successfully complete 12 hours of real | ||
estate continuing education courses recommended by the Board | ||
and approved by the Department during the current term of the | ||
license. In addition, those licensees renewing or obtaining a | ||
managing broker's license must successfully complete a 12-hour | ||
broker management continuing education course approved by the |
Department during the current term of the license. The broker | ||
management continuing education course must be completed in | ||
the classroom , or through a live, interactive webinar , or in | ||
an online distance education format. No license may be renewed | ||
except upon the successful completion of the required courses | ||
or their equivalent or upon a waiver of those requirements for | ||
good cause shown as determined by the Secretary upon the | ||
recommendation of the Board. The requirements of this Article | ||
are applicable to all managing brokers and brokers except | ||
those managing brokers and brokers who, during the current | ||
term of licensure: | ||
(1) serve in the armed services of the United States; | ||
(2) serve as an elected State or federal official; | ||
(3) serve as a full-time employee of the Department; | ||
or | ||
(4) are admitted to practice law pursuant to Illinois | ||
Supreme Court rule. | ||
(c) (Blank). | ||
(d) A person receiving an initial license during the 90 | ||
days before the renewal date shall not be required to complete | ||
the continuing education courses provided for in subsection | ||
(b) of this Section as a condition of initial license renewal. | ||
(e) The continuing education requirement for brokers and | ||
managing brokers shall consist of a single core curriculum , | ||
which must include at least 2 credit hours of fair housing | ||
training, and an elective curriculum, to be recommended by the |
Board and approved by the Department in accordance with this | ||
subsection. With the exception of the fair housing training, | ||
the The core curriculum shall not be further divided into | ||
subcategories or divisions of instruction. The core curriculum | ||
shall consist of 6 total 4 hours during the current term of the | ||
license on subjects that may include, but are not limited to, | ||
advertising, agency, disclosures, escrow, fair housing, | ||
residential leasing agent management, and license law , and | ||
must include at least 2 credit hours of fair housing training . | ||
The amount of time allotted to each of the remaining these | ||
subjects shall be recommended by the Board and determined by | ||
the Department. | ||
The Department, upon the recommendation of the Board, | ||
shall review the core curriculum every 4 years, at a minimum, | ||
and shall revise the curriculum if necessary. However, the | ||
core curriculum's total hourly requirement shall only be | ||
subject to change by amendment of this subsection, and any | ||
change to the core curriculum shall not be effective for a | ||
period of 6 months after such change is made by the Department. | ||
The Department shall provide notice to all approved education | ||
providers of any changes to the core curriculum. When | ||
determining whether revisions of the core curriculum's | ||
subjects or specific time requirements are necessary, the | ||
Board shall consider recent changes in applicable laws, new | ||
laws, and areas of the license law and the Department policy | ||
that the Board deems appropriate, and any other subject areas |
the Board deems timely and applicable in order to prevent | ||
violations of this Act and to protect the public. In | ||
establishing a recommendation to the Department regarding the | ||
elective curriculum, the Board shall consider subjects that | ||
cover the various aspects of the practice of real estate that | ||
are covered under the scope of this Act. | ||
(f) The subject areas of continuing education courses | ||
recommended by the Board and approved by the Department shall | ||
be meant to protect the professionalism of the industry, the | ||
consumer, and the public and prevent violations of this Act | ||
and may include , without limitation , the following: | ||
(1) license law and escrow; | ||
(2) antitrust; | ||
(3) fair housing; | ||
(4) agency; | ||
(5) appraisal; | ||
(6) property management; | ||
(7) residential brokerage; | ||
(8) farm property management; | ||
(9) transaction management rights and duties of | ||
parties in a transaction; | ||
(10) commercial brokerage and leasing; | ||
(11) real estate financing; | ||
(12) disclosures; | ||
(13) residential leasing agent management; | ||
(14) advertising; |
(15) broker supervision and designated managing broker | ||
responsibility; | ||
(16) professional conduct; and | ||
(17) use of technology ; and . | ||
(18) diversity, equity, and inclusion. | ||
(g) In lieu of credit for those courses listed in | ||
subsection (f) of this Section, credit may be earned for | ||
serving as a licensed instructor in an approved course of | ||
continuing education. The amount of credit earned for teaching | ||
a course shall be the amount of continuing education credit | ||
for which the course is approved for licensees taking the | ||
course. | ||
(h) Credit hours may be earned for self-study programs | ||
approved by the Department. | ||
(i) A managing broker or broker may earn credit for a | ||
specific continuing education course only once during the | ||
current term of the license. | ||
(j) No more than 12 hours of continuing education credit | ||
may be taken in one calendar day. | ||
(k) To promote the offering of a uniform and consistent | ||
course content, the Department may provide for the development | ||
of a single broker management course to be offered by all | ||
education providers who choose to offer the broker management | ||
continuing education course. The Department may contract for | ||
the development of the 12-hour broker management continuing | ||
education course with an outside vendor or consultant and, if |
the course is developed in this manner, the Department or the | ||
outside consultant shall license the use of that course to all | ||
approved education providers who wish to provide the course. | ||
(l) Except as specifically provided in this Act, | ||
continuing education credit hours may not be earned for | ||
completion of pre-license or post-license courses. The courses | ||
comprising the approved 45-hour post-license curriculum for | ||
broker licensees shall satisfy the continuing education | ||
requirement for the initial broker license term. The approved | ||
45-hour managing broker pre-license brokerage administration | ||
and management course shall satisfy the 12-hour broker | ||
management continuing education requirement for the initial | ||
managing broker license term. | ||
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.) | ||
(225 ILCS 454/10-10) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 10-10. Disclosure of compensation. | ||
(a) A licensee must disclose to a client the sponsoring | ||
broker's compensation and policy , including the terms of | ||
compensation and any amounts offered with regard to | ||
cooperating with brokers who represent other parties in a | ||
transaction. | ||
(b) A licensee must disclose to a client all sources of | ||
compensation related to the transaction received by the | ||
licensee from a third party. |
(c) If a licensee refers a client to a third party in which | ||
the licensee has greater than a 1% ownership interest or from | ||
which the licensee receives or may receive dividends or other | ||
profit sharing distributions, other than a publicly held or | ||
traded company, for the purpose of the client obtaining | ||
services related to the transaction, then the licensee shall | ||
disclose that fact to the client at the time of making the | ||
referral. | ||
(d) If in any one transaction a sponsoring broker receives | ||
compensation from both the buyer and seller or lessee and | ||
lessor of real estate, the sponsoring broker shall disclose in | ||
writing to a client the fact that the compensation is being | ||
paid by both buyer and seller or lessee and lessor. | ||
(e) Nothing in the Act shall prohibit the cooperation with | ||
or a payment of compensation to an individual domiciled in any | ||
other state or country who is licensed as a broker in that | ||
individual's his or her state or country of domicile or to a | ||
resident of a country that does not require a person to be | ||
licensed to act as a broker if the person complies with the | ||
laws of the country in which that person resides and practices | ||
there as a broker. | ||
(Source: P.A. 101-357, eff. 8-9-19.) | ||
(225 ILCS 454/10-20) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 10-20. Sponsoring broker; employment agreement. |
(a) A licensee may perform activities as a licensee only | ||
for the licensee's his or her sponsoring broker. A licensee | ||
must have only one sponsoring broker at any one time. | ||
(b) Every broker who employs licensees or has an | ||
independent contractor relationship with a licensee shall have | ||
a written employment or independent contractor agreement with | ||
each such licensee. The broker having this written employment | ||
or independent contractor agreement with the licensee must be | ||
that licensee's sponsoring broker. | ||
(c) Every sponsoring broker must have a written employment | ||
or independent contractor agreement with each licensee the | ||
broker sponsors. The agreement shall address the employment or | ||
independent contractor relationship terms, including without | ||
limitation supervision, duties, compensation, and termination | ||
process. | ||
(d) (Blank). | ||
(d-5) If a written agreement provides for an independent | ||
contractor relationship that clearly states and establishes | ||
that relationship, the specific provisions of this Act shall | ||
control for licensee's conduct of brokerage activities. | ||
(e) Notwithstanding the fact that a sponsoring broker has | ||
an employment or independent contractor agreement with a | ||
licensee, a sponsoring broker may pay compensation directly to | ||
a business entity solely owned by that licensee that has been | ||
formed for the purpose of receiving compensation earned by the | ||
licensee. A business entity that receives compensation from a |
sponsoring broker as provided for in this subsection (e) shall | ||
not be required to be licensed under this Act and must either | ||
be owned solely by the licensee or by the licensee together | ||
with the licensee's spouse, but only if the spouse and | ||
licensee are both licensed and sponsored by the same | ||
sponsoring broker or the spouse is not also licensed. | ||
(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.) | ||
(225 ILCS 454/15-35) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 15-35. Agency relationship disclosure. | ||
(a) A licensee acting as a designated agent shall advise a | ||
consumer in writing, no later than beginning to work as a | ||
designated agent on behalf of the consumer, of the following: | ||
(1) That a designated agency relationship exists, | ||
unless there is written agreement between the sponsoring | ||
broker and the consumer providing for a different agency | ||
relationship; and | ||
(2) The name or names of the designated agent or | ||
agents on the written disclosure, which must can be | ||
included as part of in a brokerage agreement or be a | ||
separate document, a copy of which is retained by the | ||
sponsoring broker for the licensee and company records, | ||
and a copy of which must be provided to the consumer or | ||
client . | ||
(b) The licensee representing the consumer shall discuss |
with the consumer the sponsoring broker's compensation and | ||
policy , including the terms of compensation and any amounts | ||
offered with regard to cooperating with brokers who represent | ||
other parties in a transaction. | ||
(c) A licensee shall disclose in writing to a customer | ||
that the licensee is not acting as the agent of the customer at | ||
a time intended to prevent disclosure of confidential | ||
information from a customer to a licensee, but in no event | ||
later than the preparation of an offer to purchase or lease | ||
real property. | ||
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.) | ||
(225 ILCS 454/15-50) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 15-50. Brokerage agreements; designated Designated | ||
agency. | ||
(a) A sponsoring broker entering into a brokerage | ||
relationship an agreement with any person for the listing of | ||
property or for the purpose of representing any person in the | ||
buying, selling, exchanging, renting, or leasing of real | ||
estate shall set forth the terms of that relationship in a | ||
written brokerage agreement. The brokerage agreement shall | ||
specifically designate those licensees employed by or | ||
affiliated with the sponsoring broker who will be acting as | ||
legal agents of that person to the exclusion of all other | ||
licensees employed by or affiliated with the sponsoring |
broker. A sponsoring broker entering into an agreement under | ||
the provisions of this Section shall not be considered to be | ||
acting for more than one party in a transaction if the | ||
licensees are specifically designated as legal agents of a | ||
person and are not representing more than one party in a | ||
transaction. | ||
(a-5) Nothing in this Section prevents a client from | ||
seeking to enforce an oral agreement. The absence of a written | ||
agreement does not create an affirmative defense (i) to the | ||
existence, or lack thereof, of an agreement between the | ||
parties; or (ii) as to whether licensed activity was performed | ||
under this Act. This Section does not prevent a court from | ||
imposing legal or equitable remedies. | ||
(b) A sponsoring broker designating affiliated licensees | ||
to act as agents of clients shall take ordinary and necessary | ||
care to protect confidential information disclosed by a client | ||
to the his or her designated agent. | ||
(c) A designated agent may disclose to the designated | ||
agent's his or her sponsoring broker or persons specified by | ||
the sponsoring broker confidential information of a client for | ||
the purpose of seeking advice or assistance for the benefit of | ||
the client in regard to a possible transaction. Confidential | ||
information shall not be disclosed by the sponsoring broker or | ||
other specified representative of the sponsoring broker unless | ||
otherwise required by this Act or requested or permitted by | ||
the client who originally disclosed the confidential |
information. | ||
(Source: P.A. 101-357, eff. 8-9-19.) | ||
(225 ILCS 454/20-20) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 20-20. Nature of and grounds for discipline. | ||
(a) The Department may refuse to issue or renew a license, | ||
may place on probation, suspend, or revoke any license, | ||
reprimand, or take any other disciplinary or non-disciplinary | ||
action as the Department may deem proper and impose a fine not | ||
to exceed $25,000 for each violation upon any licensee or | ||
applicant under this Act or any person who holds oneself out as | ||
an applicant or licensee or against a licensee in handling | ||
one's own property, whether held by deed, option, or | ||
otherwise, for any one or any combination of the following | ||
causes: | ||
(1) Fraud or misrepresentation in applying for, or | ||
procuring, a license under this Act or in connection with | ||
applying for renewal of a license under this Act. | ||
(2) The licensee's conviction of or plea of guilty or | ||
plea of nolo contendere, as set forth in subsection (e) of | ||
Section 5-25, to: (A) a felony or misdemeanor in this | ||
State or any other jurisdiction; (B) the entry of an | ||
administrative sanction by a government agency in this | ||
State or any other jurisdiction; or (C) any conviction of | ||
or plea of guilty or plea of nolo contendere to a any crime |
that subjects the licensee to compliance with the | ||
requirements of the Sex Offender Registration Act. | ||
(3) Inability to practice the profession with | ||
reasonable judgment, skill, or safety as a result of a | ||
physical illness, mental illness, or disability. | ||
(4) Practice under this Act as a licensee in a retail | ||
sales establishment from an office, desk, or space that is | ||
not separated from the main retail business and located | ||
within a separate and distinct area within the | ||
establishment. | ||
(5) Having been disciplined by another state, the | ||
District of Columbia, a territory, a foreign nation, or a | ||
governmental agency authorized to impose discipline if at | ||
least one of the grounds for that discipline is the same as | ||
or the equivalent of one of the grounds for which a | ||
licensee may be disciplined under this Act. A certified | ||
copy of the record of the action by the other state or | ||
jurisdiction shall be prima facie evidence thereof. | ||
(6) Engaging in the practice of real estate brokerage | ||
without a license or after the licensee's license or | ||
temporary permit was expired or while the license was | ||
inactive, revoked, or suspended. | ||
(7) Cheating on or attempting to subvert the Real | ||
Estate License Exam or a continuing education course or | ||
examination. | ||
(8) Aiding or abetting an applicant to subvert or |
cheat on the Real Estate License Exam or continuing | ||
education exam administered pursuant to this Act. | ||
(9) Advertising that is inaccurate, misleading, or | ||
contrary to the provisions of the Act. | ||
(10) Making any substantial misrepresentation or | ||
untruthful advertising. | ||
(11) Making any false promises of a character likely | ||
to influence, persuade, or induce. | ||
(12) Pursuing a continued and flagrant course of | ||
misrepresentation or the making of false promises through | ||
licensees, employees, agents, advertising, or otherwise. | ||
(13) Any misleading or untruthful advertising, or | ||
using any trade name or insignia of membership in any real | ||
estate organization of which the licensee is not a member. | ||
(14) Acting for more than one party in a transaction | ||
without providing written notice to all parties for whom | ||
the licensee acts. | ||
(15) Representing or attempting to represent, or | ||
performing licensed activities for, a broker other than | ||
the sponsoring broker. | ||
(16) Failure to account for or to remit any moneys or | ||
documents coming into the licensee's possession that | ||
belong to others. | ||
(17) Failure to maintain and deposit in a special | ||
account, separate and apart from personal and other | ||
business accounts, all escrow moneys belonging to others |
entrusted to a licensee while acting as a broker, escrow | ||
agent, or temporary custodian of the funds of others or | ||
failure to maintain all escrow moneys on deposit in the | ||
account until the transactions are consummated or | ||
terminated, except to the extent that the moneys, or any | ||
part thereof, shall be: | ||
(A) disbursed prior to the consummation or | ||
termination (i) in accordance with the written | ||
direction of the principals to the transaction or | ||
their duly authorized agents, (ii) in accordance with | ||
directions providing for the release, payment, or | ||
distribution of escrow moneys contained in any written | ||
contract signed by the principals to the transaction | ||
or their duly authorized agents, or (iii) pursuant to | ||
an order of a court of competent jurisdiction; or | ||
(B) deemed abandoned and transferred to the Office | ||
of the State Treasurer to be handled as unclaimed | ||
property pursuant to the Revised Uniform Unclaimed | ||
Property Act. Escrow moneys may be deemed abandoned | ||
under this subparagraph (B) only: (i) in the absence | ||
of disbursement under subparagraph (A); (ii) in the | ||
absence of notice of the filing of any claim in a court | ||
of competent jurisdiction; and (iii) if 6 months have | ||
elapsed after the receipt of a written demand for the | ||
escrow moneys from one of the principals to the | ||
transaction or the principal's duly authorized agent. |
The account shall be noninterest bearing, unless the | ||
character of the deposit is such that payment of interest | ||
thereon is otherwise required by law or unless the | ||
principals to the transaction specifically require, in | ||
writing, that the deposit be placed in an interest-bearing | ||
account. | ||
(18) Failure to make available to the Department all | ||
escrow records and related documents maintained in | ||
connection with the practice of real estate within 24 | ||
hours of a request for those documents by Department | ||
personnel. | ||
(19) Failing to furnish copies upon request of | ||
documents relating to a real estate transaction to a party | ||
who has executed that document. | ||
(20) Failure of a sponsoring broker or licensee to | ||
timely provide sponsorship or termination of sponsorship | ||
information to the Department. | ||
(21) Engaging in dishonorable, unethical, or | ||
unprofessional conduct of a character likely to deceive, | ||
defraud, or harm the public, including, but not limited | ||
to, conduct set forth in rules adopted by the Department. | ||
(22) Commingling the money or property of others with | ||
the licensee's own money or property. | ||
(23) Employing any person on a purely temporary or | ||
single deal basis as a means of evading the law regarding | ||
payment of commission to nonlicensees on some contemplated |
transactions. | ||
(24) Permitting the use of one's license as a broker | ||
to enable a residential leasing agent or unlicensed person | ||
to operate a real estate business without actual | ||
participation therein and control thereof by the broker. | ||
(25) Any other conduct, whether of the same or a | ||
different character from that specified in this Section, | ||
that constitutes dishonest dealing. | ||
(25.5) Failing to have a written brokerage agreement | ||
between the sponsoring broker and a client for whom the | ||
designated agent is working. | ||
(26) Displaying a "for rent" or "for sale" sign on any | ||
property without the written consent of an owner or the | ||
owner's duly authorized agent or advertising by any means | ||
that any property is for sale or for rent without the | ||
written consent of the owner or the owner's authorized | ||
agent. | ||
(27) Failing to provide information requested by the | ||
Department, or otherwise respond to that request, within | ||
30 days of the request. | ||
(28) Advertising by means of a blind advertisement, | ||
except as otherwise permitted in Section 10-30 of this | ||
Act. | ||
(29) A licensee under this Act or an unlicensed | ||
individual offering guaranteed sales plans, as defined in | ||
Section 10-50, except to the extent set forth in Section |
10-50. | ||
(30) Influencing or attempting to influence, by any | ||
words or acts, a prospective seller, purchaser, occupant, | ||
landlord, or tenant of real estate, in connection with | ||
viewing, buying, or leasing real estate, so as to promote | ||
or tend to promote the continuance or maintenance of | ||
racially and religiously segregated housing or so as to | ||
retard, obstruct, or discourage racially integrated | ||
housing on or in any street, block, neighborhood, or | ||
community. | ||
(31) Engaging in any act that constitutes a violation | ||
of any provision of Article 3 of the Illinois Human Rights | ||
Act, whether or not a complaint has been filed with or | ||
adjudicated by the Human Rights Commission. | ||
(32) Inducing any party to a contract of sale or lease | ||
or brokerage agreement to break the contract of sale or | ||
lease or brokerage agreement for the purpose of | ||
substituting, in lieu thereof, a new contract for sale or | ||
lease or brokerage agreement with a third party. | ||
(33) Negotiating a sale, exchange, or lease of real | ||
estate directly with any person if the licensee knows that | ||
the person has an exclusive brokerage agreement with | ||
another broker, unless specifically authorized by that | ||
broker. | ||
(34) When a licensee is also an attorney, acting as | ||
the attorney for either the buyer or the seller in the same |
transaction in which the licensee is acting or has acted | ||
as a managing broker or broker. | ||
(35) Advertising or offering merchandise or services | ||
as free if any conditions or obligations necessary for | ||
receiving the merchandise or services are not disclosed in | ||
the same advertisement or offer. These conditions or | ||
obligations include without limitation the requirement | ||
that the recipient attend a promotional activity or visit | ||
a real estate site. As used in this subdivision (35), | ||
"free" includes terms such as "award", "prize", "no | ||
charge", "free of charge", "without charge", and similar | ||
words or phrases that reasonably lead a person to believe | ||
that one may receive or has been selected to receive | ||
something of value, without any conditions or obligations | ||
on the part of the recipient. | ||
(36) (Blank). | ||
(37) Violating the terms of any order issued by the | ||
Department. | ||
(38) Paying or failing to disclose compensation in | ||
violation of Article 10 of this Act. | ||
(39) Requiring a party to a transaction who is not a | ||
client of the licensee to allow the licensee to retain a | ||
portion of the escrow moneys for payment of the licensee's | ||
commission or expenses as a condition for release of the | ||
escrow moneys to that party. | ||
(40) Disregarding or violating any provision of this |
Act or the published rules adopted by the Department to | ||
enforce this Act or aiding or abetting any individual, | ||
foreign or domestic partnership, registered limited | ||
liability partnership, limited liability company, | ||
corporation, or other business entity in disregarding any | ||
provision of this Act or the published rules adopted by | ||
the Department to enforce this Act. | ||
(41) Failing to provide the minimum services required | ||
by Section 15-75 of this Act when acting under an | ||
exclusive brokerage agreement. | ||
(42) Habitual or excessive use of or addiction to | ||
alcohol, narcotics, stimulants, or any other chemical | ||
agent or drug that results in a licensee's managing | ||
broker, broker, or residential leasing agent's inability | ||
to practice with reasonable skill or safety , which may | ||
result in significant harm to the public . | ||
(43) Enabling, aiding, or abetting an auctioneer, as | ||
defined in the Auction License Act, to conduct a real | ||
estate auction in a manner that is in violation of this | ||
Act. | ||
(44) Permitting any residential leasing agent or | ||
temporary residential leasing agent permit holder to | ||
engage in activities that require a broker's or managing | ||
broker's license. | ||
(45) Failing to notify the Department, within 30 days | ||
after the occurrence, of the information required in |
subsection (e) of Section 5-25. | ||
(46) A designated managing broker's failure to provide | ||
an appropriate written company policy or failure to | ||
perform any of the duties set forth in Section 10-55. | ||
(47) Filing liens or recording written instruments in | ||
any county in the State on noncommercial, residential real | ||
property that relate to a broker's compensation for | ||
licensed activity under the Act. | ||
(b) The Department may refuse to issue or renew or may | ||
suspend the license of any person who fails to file a return, | ||
pay the tax, penalty or interest shown in a filed return, or | ||
pay any final assessment of tax, penalty, or interest, as | ||
required by any tax Act administered by the Department of | ||
Revenue, until such time as the requirements of that tax Act | ||
are satisfied in accordance with subsection (g) of Section | ||
2105-15 of the Department of Professional Regulation Law of | ||
the Civil Administrative Code of Illinois. | ||
(c) (Blank). | ||
(d) In cases where the Department of Healthcare and Family | ||
Services (formerly Department of Public Aid) has previously | ||
determined that a licensee or a potential licensee is more | ||
than 30 days delinquent in the payment of child support and has | ||
subsequently certified the delinquency to the Department may | ||
refuse to issue or renew or may revoke or suspend that person's | ||
license or may take other disciplinary action against that | ||
person based solely upon the certification of delinquency made |
by the Department of Healthcare and Family Services in | ||
accordance with item (5) of subsection (a) of Section 2105-15 | ||
of the Department of Professional Regulation Law of the Civil | ||
Administrative Code of Illinois. | ||
(e) (Blank). | ||
(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24 .) | ||
(225 ILCS 454/20-20.1) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 20-20.1. Citations. | ||
(a) The Department may adopt rules to permit the issuance | ||
of citations to any licensee for failure to comply with the | ||
continuing education and post-license education requirements | ||
set forth in this Act or as adopted by rule. The citation shall | ||
be issued to the licensee , and a copy shall be sent to the | ||
licensee's designated managing broker and sponsoring broker . | ||
The citation shall contain the licensee's name and address, | ||
the licensee's license number, the number of required hours of | ||
continuing education or post-license education that have not | ||
been successfully completed by the licensee's renewal | ||
deadline, and the penalty imposed, which shall not exceed | ||
$2,000. The issuance of any such citation shall not excuse the | ||
licensee from completing all continuing education or | ||
post-license education required for that term of licensure. | ||
(b) Service of a citation shall be made by in person, | ||
electronically, or by mail to the licensee at the licensee's |
address of record or email address of record, and must clearly | ||
state that if the cited licensee wishes to dispute the | ||
citation, the cited licensee may make a written request, | ||
within 30 days after the citation is served, for a hearing | ||
before the Department. If the cited licensee does not request | ||
a hearing within 30 days after the citation is served, then the | ||
citation shall become a final, non-disciplinary order shall be | ||
entered , and any fine imposed is due and payable within 30 60 | ||
days after the entry of that final order. If the cited licensee | ||
requests a hearing within 30 days after the citation is | ||
served, the Department shall afford the cited licensee a | ||
hearing conducted in the same manner as a hearing provided for | ||
in this Act for any violation of this Act and shall determine | ||
whether the cited licensee committed the violation as charged | ||
and whether the fine as levied is warranted. If the violation | ||
is found, any fine shall constitute non-public discipline and | ||
be due and payable within 30 days after the order of the | ||
Secretary, which shall constitute a final order of the | ||
Department. No change in license status may be made by the | ||
Department until such time as a final order of the Department | ||
has been issued. | ||
(c) Payment of a fine that has been assessed pursuant to | ||
this Section shall not constitute disciplinary action | ||
reportable on the Department's website or elsewhere unless a | ||
licensee has previously received 2 or more citations and has | ||
been assessed 2 or more fines. |
(d) Nothing in this Section shall prohibit or limit the | ||
Department from taking further action pursuant to this Act and | ||
rules for additional, repeated, or continuing violations. | ||
(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24 .) | ||
(225 ILCS 454/20-50) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 20-50. Illegal discrimination. When there has been | ||
an adjudication in a civil or criminal proceeding that a | ||
licensee has illegally discriminated while engaged in any | ||
activity for which a license is required under this Act, the | ||
Department, following notice to the licensee and a hearing in | ||
accordance with the provisions of Section 20-60, and upon the | ||
recommendation of the Board as to the nature and extent of the | ||
suspension or revocation, shall , in accordance with the | ||
provisions of Section 20-64, suspend or revoke the license of | ||
that licensee in a timely manner, unless the adjudication is | ||
in the appeal process. The finding or judgment of the civil or | ||
criminal proceeding is a matter of record; the merits of which | ||
shall not be challenged in a request for a hearing by the | ||
licensee. When there has been an order in an administrative | ||
proceeding finding that a licensee has illegally discriminated | ||
while engaged in any activity for which a license is required | ||
under this Act, the Department, following notice to the | ||
licensee and a hearing in accordance with the provisions of | ||
Section 20-60, and upon the recommendation of the Board as to |
the nature and extent of the discipline, shall , in accordance | ||
with the provisions of Section 20-64, take one or more of the | ||
disciplinary actions provided for in Section 20-20 of this Act | ||
in a timely manner, unless the administrative order is in the | ||
appeal process. The finding of the administrative order is a | ||
matter of record; the merits of which shall not be challenged | ||
in a request for a hearing by the licensee. | ||
(Source: P.A. 96-856, eff. 12-31-09 .) | ||
(225 ILCS 454/20-82) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 20-82. Fines and penalties; Real Estate License | ||
Administration Recovery Fund ; Real Estate Recovery Fund . All | ||
fines and penalties collected under Section 20-20, Section | ||
20-20.1, and otherwise under this Act by the Department shall | ||
be deposited in the Real Estate License Administration | ||
Recovery Fund and may be transferred to the Real Estate | ||
Recovery Fund in accordance with the authority set forth in | ||
Section 25-35 of this Act . | ||
(Source: P.A. 96-856, eff. 12-31-09 .) | ||
(225 ILCS 454/25-25) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 25-25. Real Estate Research and Education Fund. A | ||
special fund to be known as the Real Estate Research and | ||
Education Fund is created and shall be held in trust in the |
State treasury. Annually, on September 15th, the State | ||
Treasurer shall cause a transfer of $125,000 to the Real | ||
Estate Research and Education Fund from the Real Estate | ||
License Administration Fund. The Real Estate Research and | ||
Education Fund shall be administered by the Department. Money | ||
deposited in the Real Estate Research and Education Fund may | ||
be used for research and for education at state institutions | ||
of higher education or other organizations for research and | ||
for education to further the advancement of education in the | ||
real estate industry or can be used by the Department for | ||
expenses related to the education of licensees. Of the | ||
$125,000 annually transferred into the Real Estate Research | ||
and Education Fund, $15,000 shall be used to fund a | ||
scholarship program for persons of historically marginalized | ||
classes and minority racial origin who wish to pursue a course | ||
of study in the field of real estate. For the purposes of this | ||
Section : , | ||
" Course course of study" means a course or courses that | ||
are part of a program of courses in the field of real estate | ||
designed to further an individual's knowledge or expertise in | ||
the field of real estate. These courses shall include, without | ||
limitation, courses that a broker licensed under this Act must | ||
complete to qualify for a managing broker's license, courses | ||
required to obtain the Graduate Realtors Institute | ||
designation, and any other courses or programs offered by | ||
accredited colleges, universities, or other institutions of |
higher education in Illinois. | ||
"Historically marginalized classes" means a person of a | ||
race or national origin that is Native American or Alaska | ||
Native, Asian, Black or African American, Hispanic or Latino, | ||
or Native Hawaiian or Pacific Islander, or is a member of a | ||
protected class under the Illinois Human Rights Act within the | ||
context of affirmative action. | ||
The scholarship program shall be administered by the | ||
Department or its designee. Moneys in the Real Estate Research | ||
and Education Fund may be invested and reinvested in the same | ||
manner as funds in the Real Estate Recovery Fund and all | ||
earnings, interest, and dividends received from such | ||
investments shall be deposited in the Real Estate Research and | ||
Education Fund and may be used for the same purposes as moneys | ||
transferred to the Real Estate Research and Education Fund. | ||
Moneys in the Real Estate Research and Education Fund may be | ||
transferred to the Professions Indirect Cost Fund as | ||
authorized under Section 2105-300 of the Department of | ||
Professional Regulation Law of the Civil Administrative Code | ||
of Illinois. | ||
(Source: P.A. 103-236, eff. 1-1-24 .) | ||
(225 ILCS 454/25-30) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 25-30. Real Estate License Administration Fund; | ||
audit. A special fund to be known as the Real Estate License |
Administration Fund is created in the State Treasury. All | ||
fines, penalties, and fees received by the Department under | ||
this Act shall be deposited in the Real Estate License | ||
Administration Fund. The moneys deposited in the Real Estate | ||
License Administration Fund shall be appropriated to the | ||
Department for expenses of the Department and the Board in the | ||
administration of this Act , including, but not limited to, the | ||
maintenance and operation of the Real Estate Recovery Fund, | ||
and for the administration of any Act administered by the | ||
Department providing revenue to this Fund. Moneys in the Real | ||
Estate License Administration Fund may be invested and | ||
reinvested in the same manner as funds in the Real Estate | ||
Recovery Fund. All earnings received from such investment | ||
shall be deposited in the Real Estate License Administration | ||
Fund and may be used for the same purposes as fines, penalties, | ||
and fees deposited in the Real Estate License Administration | ||
Fund. Moneys in the Real Estate License Administration Fund | ||
may be transferred to the Professions Indirect Cost Fund as | ||
authorized under Section 2105-300 of the Department of | ||
Professional Regulation Law of the Civil Administrative Code | ||
of Illinois and to the Real Estate Recovery Fund as authorized | ||
by Section 25-35 of this Act . Upon the completion of any audit | ||
of the Department, as prescribed by the Illinois State | ||
Auditing Act, which includes an audit of the Real Estate | ||
License Administration Fund, the Department shall make the | ||
audit open to inspection by any interested person. |
(Source: P.A. 96-856, eff. 12-31-09 .) | ||
(225 ILCS 454/25-35) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 25-35. Real Estate Recovery Fund. A special fund to | ||
be known as the Real Estate Recovery Fund is created in the | ||
State Treasury. All fines and penalties received by the | ||
Department pursuant to Article 20 of this Act shall be | ||
deposited into the State Treasury and held in the Real Estate | ||
Recovery Fund. The money in the Real Estate Recovery Fund | ||
shall be used by the Department exclusively for carrying out | ||
the purposes established by this Act. If, at any time, the | ||
balance remaining in the Real Estate Recovery Fund is less | ||
than $900,000 $750,000 , the State Treasurer shall cause a | ||
transfer of moneys to the Real Estate Recovery Fund from the | ||
Real Estate License Administration Fund in an amount necessary | ||
to establish a balance of $1,000,000 $800,000 in the Real | ||
Estate Recovery Fund. If the balance in the Real Estate | ||
Recovery Fund exceeds $1,000,000, any excess funds over | ||
$1,000,000 shall be transferred to the Real Estate License | ||
Administration Fund. These funds may be invested and | ||
reinvested in the same manner as authorized for pension funds | ||
in Article 1 of the Illinois Pension Code. All earnings, | ||
interest, and dividends received from investment of funds in | ||
the Real Estate Recovery Fund shall be deposited into the Real | ||
Estate License Administration Fund and shall be used for the |
same purposes as other moneys deposited in the Real Estate | ||
License Administration Fund. | ||
(Source: P.A. 96-856, eff. 12-31-09 .) | ||
(225 ILCS 454/30-5) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 30-5. Licensing of real estate education providers | ||
and instructors. | ||
(a) No person shall operate an education provider entity | ||
without possessing a valid and active license issued by the | ||
Department. Only education providers in possession of a valid | ||
education provider license may provide real estate | ||
pre-license, post-license, or continuing education courses | ||
that satisfy the requirements of this Act. Every person that | ||
desires to obtain an education provider license shall make | ||
application to the Department in a manner prescribed by the | ||
Department and pay the fee prescribed by rule. In addition to | ||
any other information required to be contained in the | ||
application as prescribed by rule, every application for an | ||
original or renewed license shall include the applicant's | ||
Social Security number or tax identification number. | ||
(b) (Blank). | ||
(c) (Blank). | ||
(d) (Blank). | ||
(e) (Blank). | ||
(f) To qualify for an education provider license, an |
applicant must demonstrate the following: | ||
(1) a sound financial base for establishing, | ||
promoting, and delivering the necessary courses; budget | ||
planning for the school's courses should be clearly | ||
projected; | ||
(2) a sufficient number of qualified, licensed | ||
instructors as provided by rule; | ||
(3) adequate support personnel to assist with | ||
administrative matters and technical assistance; | ||
(4) maintenance and availability of records of | ||
participation for licensees; | ||
(5) the ability to provide each participant who | ||
successfully completes an approved program with a | ||
certificate of completion signed by the administrator of a | ||
licensed education provider in a manner prescribed by the | ||
Department; the certificate of completion shall include | ||
the program that was completed, the completion date, the | ||
course number, and the student's and education provider's | ||
license numbers; | ||
(6) a written policy dealing with procedures for the | ||
management of grievances and fee refunds; | ||
(7) lesson plans and examinations, if applicable, for | ||
each course; | ||
(8) a 75% passing grade for successful completion of | ||
any continuing education course or pre-license or | ||
post-license examination, if required; |
(9) the ability to identify and use instructors who | ||
will teach in a planned program; instructor selections | ||
must demonstrate: | ||
(A) appropriate credentials; | ||
(B) competence as a teacher; | ||
(C) knowledge of content area; and | ||
(D) qualification by experience. | ||
Unless otherwise provided for in this Section, the | ||
education provider shall provide a proctor or an electronic | ||
means of proctoring if a proctored examination is required for | ||
each examination ; the education provider shall be responsible | ||
for the conduct of the proctor; the duties and | ||
responsibilities of a proctor shall be established by rule. | ||
Unless otherwise provided for in this Section, the | ||
education provider shall must provide for closed book | ||
examinations for each course when required unless the | ||
Department, upon the recommendation of the Board, excuses this | ||
requirement based on the complexity of the course material. | ||
(g) Advertising and promotion of education activities must | ||
be carried out in a responsible fashion clearly showing the | ||
educational objectives of the activity, the nature of the | ||
audience that may benefit from the activity, the cost of the | ||
activity to the participant and the items covered by the cost, | ||
the amount of credit that can be earned, and the credentials of | ||
the faculty. | ||
(h) (Blank). The Department may, or upon request of the |
Board shall, after notice, cause an education provider to | ||
attend an informal conference before the Board for failure to | ||
comply with any requirement for licensure or for failure to | ||
comply with any provision of this Act or the rules for the | ||
administration of this Act. The Board shall make a | ||
recommendation to the Department as a result of its findings | ||
at the conclusion of any such informal conference. | ||
(i) All education providers shall maintain these minimum | ||
criteria and pay the required fee in order to retain their | ||
education provider license. | ||
(j) The Department may adopt any administrative rule | ||
consistent with the language and intent of this Act that may be | ||
necessary for the implementation and enforcement of this | ||
Section and to regulate the establishment and operation of | ||
virtual offices that do not have a fixed location . | ||
(Source: P.A. 100-188, eff. 1-1-18; 100-831, eff. 1-1-19; | ||
101-357, eff. 8-9-19.) | ||
(225 ILCS 454/30-15) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 30-15. Licensing of education providers; approval of | ||
courses. | ||
(a) (Blank). | ||
(b) (Blank). | ||
(c) (Blank). | ||
(d) (Blank). |
(e) (Blank). | ||
(f) All education providers shall submit, at the time of | ||
initial application and with each license renewal, a list of | ||
courses with course materials that comply with the course | ||
requirements in this Act to be offered by the education | ||
provider. The Department may establish an online mechanism by | ||
which education providers may submit for approval by the | ||
Department upon the recommendation of the Board or its | ||
designee pre-license, post-license, or continuing education | ||
courses that are submitted after the time of the education | ||
provider's initial license application or renewal. The | ||
Department shall provide to each education provider a | ||
certificate for each approved pre-license, post-license, or | ||
continuing education course. All pre-license, post-license, or | ||
continuing education courses shall be valid for the period | ||
coinciding with the term of license of the education provider. | ||
However, in no case shall a course continue to be valid if it | ||
does not, at all times, meet all of the requirements of the | ||
core curriculum established by this Act and the Board, as | ||
modified from time to time in accordance with this Act. All | ||
education providers shall provide a copy of the certificate of | ||
the pre-license, post-license, or continuing education course | ||
within the course materials given to each student or shall | ||
display a copy of the certificate of the pre-license, | ||
post-license, or continuing education course in a conspicuous | ||
place at the location of the class. |
(g) Each education provider shall provide to the | ||
Department a report in a frequency and format determined by | ||
the Department, with information concerning students who | ||
successfully completed all approved pre-license, post-license, | ||
or continuing education courses offered by the education | ||
provider. | ||
(h) The Department, upon the recommendation of the Board, | ||
may temporarily suspend a licensed education provider's | ||
approved courses without hearing and refuse to accept | ||
successful completion of or participation in any of these | ||
pre-license, post-license, or continuing education courses for | ||
education credit from that education provider upon the failure | ||
of that education provider to comply with the provisions of | ||
this Act or the rules for the administration of this Act, until | ||
such time as the Department receives satisfactory assurance of | ||
compliance. The Department shall notify the education provider | ||
of the noncompliance and may initiate disciplinary proceedings | ||
pursuant to this Act. The Department may refuse to issue, | ||
suspend, revoke, or otherwise discipline the license of an | ||
education provider or may withdraw approval of a pre-license, | ||
post-license, or continuing education course for good cause. | ||
Failure to comply with the requirements of this Section or any | ||
other requirements established by rule shall be deemed to be | ||
good cause. Disciplinary proceedings shall be conducted by the | ||
Department Board in the same manner as other disciplinary | ||
proceedings under this Act. |
(i) Pre-license, post-license, and continuing education | ||
courses, whether submitted for approval at the time of an | ||
education provider's initial application for licensure or | ||
otherwise, must meet the following minimum course | ||
requirements: | ||
(1) Continuing education courses shall be required to | ||
be at least one hour in duration. For each one hour of | ||
course time, there shall be a minimum of 50 minutes of | ||
instruction. | ||
(2) All core curriculum courses shall be provided only | ||
in the classroom or through a live, interactive webinar , | ||
or in an online distance education format. | ||
(3) Courses provided through a live, interactive | ||
webinar shall require all participants to demonstrate | ||
their attendance in and attention to the course by | ||
answering or responding to at least one polling question | ||
per 50 minutes of course instruction. | ||
(4) All participants in courses provided in an online | ||
distance education format shall demonstrate proficiency | ||
with the subject matter of the course through verifiable | ||
responses to questions included in the course content. | ||
(5) Credit for courses completed in a classroom or | ||
through a live, interactive webinar , or in an online | ||
distance education format shall not require an | ||
examination. | ||
(6) Credit for courses provided through |
correspondence, or by home study, shall require the | ||
passage of an in-person, proctored examination. | ||
(j) The Department is authorized to engage a third party | ||
as the Board's designee to perform the functions specifically | ||
provided for in subsection (f) of this Section, namely that of | ||
administering the online system for receipt, review, and | ||
approval or denial of new courses. | ||
(k) The Department may adopt any administrative rule | ||
consistent with the language and intent of this Act that may be | ||
necessary for the implementation and enforcement of this | ||
Section. | ||
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.) | ||
(225 ILCS 454/30-25) | ||
(Section scheduled to be repealed on January 1, 2030) | ||
Sec. 30-25. Licensing of education provider instructors. | ||
(a) No person shall act as either a pre-license or | ||
continuing education instructor without possessing a valid | ||
pre-license or continuing education instructor license and | ||
satisfying any other qualification criteria adopted by the | ||
Department by rule. | ||
(a-5) Each person with a valid pre-license instructor | ||
license may teach pre-license, post-license, continuing | ||
education core curriculum, continuing education elective | ||
curriculum, or broker management education courses if they | ||
meet specific criteria adopted by the Department by rule. |
Those persons who have not met the criteria or who only possess | ||
a valid continuing education instructor license shall only | ||
teach continuing education elective curriculum courses. Any | ||
person with a valid continuing education instructor license | ||
who wishes to teach continuing education core curriculum or | ||
broker management continuing education courses must obtain a | ||
valid pre-license instructor license. | ||
(b) Every person who desires to obtain an education | ||
provider instructor's license shall attend and successfully | ||
complete a one-day instructor development workshop, as | ||
approved by the Department. However, pre-license instructors | ||
who have complied with subsection (b) of this Section 30-25 | ||
shall not be required to complete the instructor workshop in | ||
order to teach continuing education elective curriculum | ||
courses. | ||
(b-5) The term of licensure for a pre-license or | ||
continuing education instructor shall be 2 years, with renewal | ||
dates adopted by rule. Every person who desires to obtain a | ||
pre-license or continuing education instructor license shall | ||
make application to the Department in a manner prescribed by | ||
the Department, accompanied by the fee adopted by rule. In | ||
addition to any other information required to be contained in | ||
the application, every application for an original license | ||
shall include the applicant's Social Security number or | ||
federal individual taxpayer identification number , which shall | ||
be retained in the agency's records pertaining to the license. |
As soon as practical, the Department shall assign a customer's | ||
identification number to each applicant for a license. | ||
Every application for a renewal or restored license shall | ||
require the applicant's customer identification number. | ||
The Department shall issue a pre-license or continuing | ||
education instructor license to applicants who meet | ||
qualification criteria established by this Act or rule. | ||
(c) The Department may refuse to issue, suspend, revoke, | ||
or otherwise discipline a pre-license or continuing education | ||
instructor for good cause. Disciplinary proceedings shall be | ||
conducted by the Department Board in the same manner as other | ||
disciplinary proceedings under this Act. All pre-license | ||
instructors must teach at least one pre-license or continuing | ||
education core curriculum course within the period of | ||
licensure as a requirement for renewal of the instructor's | ||
license. All continuing education instructors must teach at | ||
least one course within the period of licensure or take an | ||
instructor training program approved by the Department in lieu | ||
thereof as a requirement for renewal of the instructor's | ||
license. | ||
(d) Each course transcript submitted by an education | ||
provider to the Department shall include the name and license | ||
number of the pre-license or continuing education instructor | ||
for the course. | ||
(e) Licensed education provider instructors may teach for | ||
more than one licensed education provider. |
(f) The Department may adopt any administrative rule | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
consistent with the language and intent of this Act that may be | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
necessary for the implementation and enforcement of this | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Section. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Section 99. Effective date. This Act takes effect January | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1, 2025, except that this Section, Section 5, and the changes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
to Sections 20-82, 25-30, and 25-35 of the Real Estate License | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Act of 2000 take effect upon becoming law. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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