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Public Act 097-1002
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| HB5359 Enrolled | LRB097 19406 CEL 64659 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Real Estate License Act of 2000 is amended |
by changing Sections 5-70, 10-30, 20-20, 20-85, 20-90, 20-95, |
and 20-115 and by adding Section 20-78 as follows:
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(225 ILCS 454/5-70)
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(Section scheduled to be repealed on January 1, 2020)
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Sec. 5-70. Continuing education requirement; managing |
broker, broker, or salesperson.
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(a) The requirements of this Section apply to all managing |
brokers, brokers, and salespersons.
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(b) Except as otherwise
provided in this Section, each
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person who applies for renewal of his or her license as a |
managing broker, real
estate broker, or real
estate salesperson |
must successfully complete 6 hours of real estate continuing |
education
courses approved by
the Advisory Council for each |
year of the pre-renewal period. Broker licensees must |
successfully complete a 6-hour broker management continuing |
education course approved by the Department for the pre-renewal |
period ending April 30, 2010. In addition, beginning with the |
pre-renewal period for managing broker licensees that begins |
after the effective date of this Act, those licensees renewing |
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or obtaining a managing broker's license must successfully |
complete a 12-hour broker management continuing education |
course approved by the Department each pre-renewal period. The |
broker management continuing education course must be |
completed in the classroom or by other interactive delivery |
method presenting instruction and real time discussion between |
the instructor and the students. Successful completion of the |
course shall include achieving a passing score as provided by |
rule on a test developed and administered in accordance with |
rules adopted by the Department. No
license may be renewed
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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
with the
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recommendation of the Advisory Council.
The requirements of |
this Article are applicable to all managing brokers, brokers, |
and salespersons
except those brokers
and salespersons who, |
during the pre-renewal period:
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(1) serve in the armed services of the United States;
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(2) serve as an elected State or federal official;
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(3) serve as a full-time employee of the Department; or
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(4) are admitted to practice law pursuant to Illinois |
Supreme Court rule.
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(c) A person licensed as a salesperson as of April 30, 2011 |
shall not be required to complete the 18 hours of continuing |
education for the pre-renewal period ending April 30, 2012 if |
that person takes the 30-hour post-licensing course to obtain a |
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broker's license. A person licensed as a broker as of April 30, |
2011 shall not be required to complete the 12 hours of broker |
management continuing education for the pre-renewal period |
ending April 30, 2012, unless that person passes the |
proficiency exam provided for in Section 5-47 of this Act to |
qualify for a managing broker's license. |
(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.
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(e) The continuing education requirement for salespersons, |
brokers and managing brokers shall
consist of a core
curriculum |
and an elective curriculum, to be established by the Advisory
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Council. In meeting the
continuing education requirements of |
this Act, at least 3 hours per year or
their equivalent, 6 |
hours for each two-year pre-renewal period, shall
be required |
to be completed in the core curriculum.
In establishing the |
core curriculum, the Advisory Council shall consider
subjects |
that will
educate licensees on recent changes in applicable |
laws and new laws and refresh
the licensee on areas
of the |
license law and the Department policy that the Advisory Council |
deems appropriate,
and any other
areas that the Advisory |
Council deems timely and applicable in order to prevent
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violations of this Act
and to protect the public.
In |
establishing the elective curriculum, the Advisory Council |
shall consider
subjects that cover
the various aspects of the |
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practice of real estate that are covered under the
scope of |
this Act.
However, the elective curriculum shall not include |
any offerings referred to in
Section 5-85 of this Act.
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(f) The subject areas of continuing education courses |
approved by the
Advisory Council may
include without limitation |
the following:
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(1) license law and escrow;
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(2) antitrust;
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(3) fair housing;
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(4) agency;
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(5) appraisal;
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(6) property management;
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(7) residential brokerage;
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(8) farm property management;
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(9) rights and duties of sellers, buyers, and brokers;
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(10) commercial brokerage and leasing; and
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(11) real estate financing.
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(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
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which the course is approved for licensees taking the course.
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(h) Credit hours may be earned for self-study programs |
approved by the
Advisory Council.
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(i) A broker or salesperson may earn credit for a specific |
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continuing
education course only
once during the prerenewal |
period.
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(j) No more than 6 hours of continuing education credit may |
be taken or earned in one
calendar day.
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(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 |
continuing education providers who choose to offer the broker |
management continuing education course. The Department may |
contract for the development of the 12-hour 6-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 continuing education providers |
who wish to provide the course.
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(l) Except as specifically provided in this Act, continuing |
education credit hours may not be earned for completion of pre |
or post-license courses. The approved 30-hour post-license |
course for broker licensees shall satisfy the continuing |
education requirement for the pre-renewal period in which the |
course is taken. The approved 45-hour brokerage administration |
and management course shall satisfy the 12-hour broker |
management continuing education requirement for the |
pre-renewal period in which the course is taken. |
(Source: P.A. 96-856, eff. 12-31-09.)
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(225 ILCS 454/10-30)
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(Section scheduled to be repealed on January 1, 2020)
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Sec. 10-30. Advertising.
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(a) No advertising, whether in print, via the Internet, or |
through any other media, shall be fraudulent, deceptive, |
inherently misleading, or
proven to be
misleading in practice. |
Advertising shall be considered misleading or untruthful if,
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when taken as a whole,
there is a distinct and reasonable |
possibility that it will be misunderstood or
will deceive the
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ordinary purchaser, seller, lessee, lessor, or owner. |
Advertising shall
contain all information
necessary to |
communicate the information contained therein to the public in |
an accurate,
direct, and readily
comprehensible manner.
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(b) No blind advertisements may be used
by any licensee, in |
any media, except as provided for in this Section.
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(c) A licensee shall disclose, in writing, to all parties |
in a transaction
his or her status as a
licensee and any and |
all interest the licensee has or may have in the real
estate |
constituting the
subject matter thereof, directly or |
indirectly, according to the following
guidelines:
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(1) On broker yard signs or in broker advertisements, |
no disclosure of
ownership is
necessary. However, the |
ownership shall be indicated on any property data
form and |
disclosed to
persons responding to any advertisement or any |
sign. The term "broker owned"
or "agent owned"
is |
sufficient disclosure.
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(2) A sponsored or inoperative licensee selling or |
leasing property, owned
solely by the
sponsored or |
inoperative licensee, without utilizing brokerage services |
of
their sponsoring broker or
any other licensee, may |
advertise "By Owner". For purposes of this Section,
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property is "solely
owned" by a sponsored or inoperative |
licensee if he or she (i) has a
100% ownership interest
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alone, (ii) has ownership as a joint tenant or tenant by |
the entirety, or
(iii) holds a
100% beneficial
interest in |
a land trust. Sponsored or inoperative licensees selling or
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leasing "By Owner" shall
comply with the following if |
advertising by owner:
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(A) On "By Owner" yard signs, the sponsored or |
inoperative licensee
shall
indicate "broker owned" or |
"agent owned." "By Owner" advertisements used in
any |
medium of
advertising shall include the term "broker |
owned" or "agent owned."
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(B) If a sponsored or inoperative licensee runs |
advertisements, for the
purpose of
purchasing or |
leasing real estate, he or she shall disclose in the
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advertisements his or her status as a
licensee.
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(C) A sponsored or inoperative licensee shall not |
use the sponsoring
broker's name or
the sponsoring |
broker's company name in connection with the sale, |
lease, or
advertisement of the
property nor utilize the |
sponsoring broker's or company's name in connection
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with the sale, lease, or
advertising of the property in |
a manner likely to create confusion among the
public as |
to whether or
not the services of a real estate company |
are being utilized or whether or not
a real estate |
company
has an ownership interest in the property.
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(d) A sponsored licensee may not advertise under his or her |
own name.
Advertising in any media shall be
under the direct |
supervision of the sponsoring or managing broker and in the
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sponsoring broker's
business name, which in the case of a |
franchise shall include the franchise
affiliation as well as |
the
name of the individual firm.
This provision does not apply |
under the following circumstances:
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(1) When a licensee enters into a brokerage agreement |
relating to his or
her own
real estate, or real estate in |
which he or she has an ownership interest, with
another |
licensed broker; or
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(2) When a licensee is selling or leasing his or her |
own real estate or
buying or
leasing real estate for |
himself or herself, after providing the appropriate
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written disclosure of his or her ownership interest as |
required in paragraph
(2) of subsection
(c) of this |
Section.
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(e) No licensee shall list his or her name under the |
heading or title "Real
Estate" in the
telephone directory or |
otherwise advertise in his or her own name to the
general |
public through any
medium of advertising as being in the real |
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estate business without listing his
or her sponsoring
broker's |
business name.
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(f) The sponsoring broker's business name and the name of |
the licensee must
appear in all
advertisements, including |
business cards. Nothing in this Act shall be
construed to |
require specific
print size as between the broker's business |
name and the name of the licensee.
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(g) Those individuals licensed as a managing broker and |
designated with the Department as a managing broker by their |
sponsoring broker shall identify themselves to the public in |
advertising, except on "For Sale" or similar signs, as a |
managing broker. No other individuals holding a managing |
broker's license may hold themselves out to the public or other |
licensees as a managing broker. |
(Source: P.A. 96-856, eff. 12-31-09.)
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(225 ILCS 454/20-20)
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(Section scheduled to be repealed on January 1, 2020)
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Sec. 20-20. 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 or impose a
fine |
not to exceed
$25,000 upon any licensee or applicant under this |
Act or any person who holds himself or herself out as an |
applicant or licensee or against a licensee in handling his or |
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her own property, whether held by deed, option, or otherwise, |
for any one or any combination of the
following causes:
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(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.
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(2) The conviction of or plea of guilty or plea of nolo |
contendere to conviction of, plea of guilty or plea of nolo |
contendre to a felony or misdemeanor in this State or any |
other jurisdiction; or the entry of an administrative |
sanction by a government agency in this State or any other |
jurisdiction. Action taken under this paragraph (2) for a |
misdemeanor or an administrative sanction is limited to a |
misdemeanor or administrative sanction that has as , an
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essential element of which is dishonesty or fraud or |
involves larceny, embezzlement,
or obtaining money, |
property, or credit by false pretenses or by means of a
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confidence
game, in this State, or any other jurisdiction.
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(3) Inability to practice the profession with |
reasonable judgment, skill, or safety as a result of a |
physical illness, including, but not limited to, |
deterioration through the aging process or loss of motor |
skill, or a mental illness or disability.
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(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 by a separate |
and distinct area within
the
establishment.
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(5) Having been disciplined by another state, the |
District of Columbia, a territory, a foreign nation, or a |
governmental agency authorized to impose discipline |
Disciplinary action of another state or jurisdiction |
against the license or other authorization to practice as a |
managing broker, broker, salesperson, or leasing agent 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 discipline set forth in |
this Act. A certified copy of the record of the action by |
the other state or jurisdiction shall be prima facie |
evidence thereof.
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(6) Engaging in the practice of real estate brokerage
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without a
license or after the licensee's license was |
expired or while the license was
inoperative.
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(7) Cheating on or attempting to subvert the Real
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Estate License Exam or continuing education exam. |
(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.
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(9) Advertising that is inaccurate, misleading, or |
contrary to the provisions of the Act.
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(10) Making any substantial misrepresentation or |
untruthful advertising.
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(11) Making any false promises of a character likely to |
influence,
persuade,
or induce.
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(12) Pursuing a continued and flagrant course of |
misrepresentation or the
making
of false promises through |
licensees, employees, agents, advertising, or
otherwise.
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(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.
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(14) Acting for more than one party in a transaction |
without providing
written
notice to all parties for whom |
the licensee acts.
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(15) Representing or attempting to represent a broker |
other than the
sponsoring broker.
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(16) Failure to account for or to remit any moneys or |
documents coming into
his or her possession that belong to |
others.
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(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
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entrusted to a licensee
while acting as a real estate |
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
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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 |
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duly authorized agents, (ii) in accordance with
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directions providing for the
release, payment, or |
distribution of escrow moneys contained in any written
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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 Uniform Disposition of |
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.
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The account
shall be noninterest
bearing, unless the |
character of the deposit is such that payment of interest
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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.
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(18) Failure to make available to the Department all |
escrow records and related documents
maintained in |
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connection
with the practice of real estate within 24 hours |
of a request for those
documents by Department personnel.
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(19) Failing to furnish copies upon request of |
documents relating to a
real
estate transaction to a party |
who has executed that document.
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(20) Failure of a sponsoring broker to timely provide |
information, sponsor
cards,
or termination of licenses to |
the Department.
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(21) Engaging in dishonorable, unethical, or |
unprofessional conduct of a
character
likely to deceive, |
defraud, or harm the public.
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(22) Commingling the money or property of others with |
his or her own money or property.
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(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
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transactions.
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(24) Permitting the use of his or her license as a |
broker to enable a
salesperson or
unlicensed person to |
operate a real estate business without actual
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participation therein and control
thereof by the broker.
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(25) Any other conduct, whether of the same or a |
different character from
that
specified in this Section, |
that constitutes dishonest dealing.
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(26) Displaying a "for rent" or "for sale" sign on any |
property without
the written
consent of an owner or his or |
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her 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 his or her
authorized agent.
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(27) Failing to provide information requested by the |
Department, or otherwise respond to that request, within 30 |
days of
the
request.
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(28) Advertising by means of a blind advertisement, |
except as otherwise
permitted in Section 10-30 of this Act.
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(29) Offering guaranteed sales plans, as defined in |
clause (A) of
this subdivision (29), except to
the extent |
hereinafter set forth:
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(A) A "guaranteed sales plan" is any real estate |
purchase or sales plan
whereby a licensee enters into a |
conditional or unconditional written contract
with a |
seller, prior to entering into a brokerage agreement |
with the seller, by the
terms of which a licensee |
agrees to purchase a property of the seller within a
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specified period of time
at a specific price in the |
event the property is not sold in accordance with
the |
terms of a brokerage agreement to be entered into |
between the sponsoring broker and the seller.
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(B) A licensee offering a guaranteed sales plan |
shall provide the
details
and conditions of the plan in |
writing to the party to whom the plan is
offered.
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(C) A licensee offering a guaranteed sales plan |
shall provide to the
party
to whom the plan is offered |
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evidence of sufficient financial resources to
satisfy |
the commitment to
purchase undertaken by the broker in |
the plan.
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(D) Any licensee offering a guaranteed sales plan |
shall undertake to
market the property of the seller |
subject to the plan in the same manner in
which the |
broker would
market any other property, unless the |
agreement with the seller provides
otherwise.
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(E) The licensee cannot purchase seller's property |
until the brokerage agreement has ended according to |
its terms or is otherwise terminated. |
(F) Any licensee who fails to perform on a |
guaranteed sales plan in
strict accordance with its |
terms shall be subject to all the penalties provided
in |
this Act for
violations thereof and, in addition, shall |
be subject to a civil fine payable
to the party injured |
by the
default in an amount of up to $25,000.
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(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
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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.
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(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
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adjudicated by the Human Rights Commission.
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(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
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substituting, in lieu
thereof, a new contract for sale or |
lease or brokerage agreement with a third
party.
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(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.
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(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 broker
or salesperson.
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(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 |
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of charge",
"without charge", and similar words or phrases |
that reasonably lead a person to
believe that he or she
may |
receive or has been selected to receive something of value, |
without any
conditions or
obligations on the part of the |
recipient.
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(36) Disregarding or violating any provision of the |
Land Sales
Registration Act of 1989, the Illinois Real |
Estate
Time-Share Act, or the published rules promulgated |
by the Department to enforce
those Acts.
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(37) Violating the terms of a disciplinary order
issued |
by the Department.
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(38) Paying or failing to disclose compensation in |
violation of Article 10 of this Act.
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(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.
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(40) Disregarding or violating any provision of this |
Act or the published
rules
promulgated by the Department to |
enforce this Act or aiding or abetting any individual,
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partnership, registered limited liability partnership, |
limited liability
company, or corporation in
disregarding |
any provision of this Act or the published rules |
promulgated by the Department
to enforce this Act.
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(41) Failing to provide the minimum services required |
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by Section 15-75 of this Act when acting under an exclusive |
brokerage agreement.
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(42) Habitual or excessive use or addiction to alcohol, |
narcotics, stimulants, or any other chemical agent or drug |
that results in a managing broker, broker, salesperson, or |
leasing agent's inability to practice with reasonable |
skill or safety. |
(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 Civil Administrative Code of Illinois. |
(c) The Department shall deny a license or renewal |
authorized by this Act to a person who has defaulted on an |
educational loan or scholarship provided or guaranteed by the |
Illinois Student Assistance Commission or any governmental |
agency of this State in accordance with item (5) of subsection |
(g) of Section 2105-15 of the Civil Administrative Code of |
Illinois. |
(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 |
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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 (g) of Section 2105-15 |
of the Civil Administrative Code of Illinois. |
(e) In enforcing this Section, the Department or Board upon |
a showing of a possible violation may compel an individual |
licensed to practice under this Act, or who has applied for |
licensure under this Act, to submit to a mental or physical |
examination, or both, as required by and at the expense of the |
Department. The Department or Board may order the examining |
physician to present testimony concerning the mental or |
physical examination of the licensee or applicant. No |
information shall be excluded by reason of any common law or |
statutory privilege relating to communications between the |
licensee or applicant and the examining physician. The |
examining physicians shall be specifically designated by the |
Board or Department. The individual to be examined may have, at |
his or her own expense, another physician of his or her choice |
present during all aspects of this examination. Failure of an |
individual to submit to a mental or physical examination, when |
directed, shall be grounds for suspension of his or her license |
until the individual submits to the examination if the |
Department finds, after notice and hearing, that the refusal to |
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submit to the examination was without reasonable cause. |
If the Department or Board finds an individual unable to |
practice because of the reasons set forth in this Section, the |
Department or Board may require that individual to submit to |
care, counseling, or treatment by physicians approved or |
designated by the Department or Board, as a condition, term, or |
restriction for continued, reinstated, or renewed licensure to |
practice; or, in lieu of care, counseling, or treatment, the |
Department may file, or the Board may recommend to the |
Department to file, a complaint to immediately suspend, revoke, |
or otherwise discipline the license of the individual. An |
individual whose license was granted, continued, reinstated, |
renewed, disciplined or supervised subject to such terms, |
conditions, or restrictions, and who fails to comply with such |
terms, conditions, or restrictions, shall be referred to the |
Secretary for a determination as to whether the individual |
shall have his or her license suspended immediately, pending a |
hearing by the Department. |
In instances in which the Secretary immediately suspends a |
person's license under this Section, a hearing on that person's |
license must be convened by the Department within 30 days after |
the suspension and completed without appreciable delay. The |
Department and Board shall have the authority to review the |
subject individual's record of treatment and counseling |
regarding the impairment to the extent permitted by applicable |
federal statutes and regulations safeguarding the |
|
confidentiality of medical records. |
An individual licensed under this Act and affected under |
this Section shall be afforded an opportunity to demonstrate to |
the Department or Board that he or she can resume practice in |
compliance with acceptable and prevailing standards under the |
provisions of his or her license. |
(Source: P.A. 95-851, eff. 1-1-09; 96-856, eff. 12-31-09; |
revised 11-18-11.)
|
(225 ILCS 454/20-78 new) |
Sec. 20-78. Confidentiality. All information collected by |
the Department in the course of an examination or investigation |
of a licensee or applicant, including, but not limited to, any |
complaint against a licensee or applicant or any person who |
holds himself or herself out as a licensee or applicant filed |
with the Department and information collected to investigate |
any such complaint, shall be maintained for the confidential |
use of the Department and shall not be disclosed. The |
Department may not disclose the information to anyone other |
than law enforcement officials, regulatory agencies that have |
an appropriate regulatory interest as determined by the |
Secretary, or a party presenting a lawful subpoena to the |
Department. Information and documents disclosed to a federal, |
State, county, or local law enforcement agency shall not be |
disclosed by the agency for any purpose to any other agency or |
person. A formal complaint filed against a licensee by the |
|
Department or any order issued by the Department against a |
licensee or applicant shall be a public record, except as |
otherwise prohibited by law.
|
(225 ILCS 454/20-85)
|
(Section scheduled to be repealed on January 1, 2020)
|
Sec. 20-85. Recovery from Real Estate Recovery Fund. The |
Department shall maintain a Real Estate Recovery Fund from |
which any person aggrieved
by an act,
representation, |
transaction, or conduct of a licensee or unlicensed employee of
|
a licensee that is
in violation of this Act or the rules |
promulgated pursuant thereto,
constitutes
embezzlement of |
money or property, or results in money or property being
|
unlawfully obtained
from any person by false pretenses, |
artifice, trickery, or forgery or by reason
of any fraud,
|
misrepresentation, discrimination, or deceit by or on the part |
of any such
licensee or the unlicensed
employee of a licensee |
and that results in a loss of actual cash money, as
opposed to |
losses in
market value, may recover. The aggrieved person may |
recover, by a post-judgment order of the
circuit court of the
|
county where the violation occurred in a proceeding described |
in Section 20-90 of this Act, an amount of not more than |
$25,000 from
the Fund for
damages sustained by the act, |
representation, transaction, or conduct, together
with costs |
of suit and
attorney's fees incurred in connection therewith of |
not to exceed 15% of the
amount of the recovery
ordered paid |
|
from the Fund. However, no licensee may
recover from the
Fund |
unless the court finds that the person suffered a loss |
resulting from
intentional misconduct.
The post-judgment court |
order shall not include interest on the judgment.
The maximum |
liability against the Fund arising out of any one act shall be |
as
provided in this
Section, and the post-judgment judgment |
order shall spread the award equitably among all
co-owners or |
otherwise
aggrieved persons, if any. The maximum liability |
against the Fund arising out
of the activities of
any one |
licensee or one unlicensed employee of a licensee, since |
January 1,
1974, shall be $100,000.
Nothing in this Section |
shall be construed to authorize recovery from the Fund
unless |
the loss of the aggrieved person results from an act or |
omission of a licensee under this Act
who was at the time of |
the act or omission
acting in such
capacity or was apparently |
acting in such capacity or their unlicensed employee and unless |
the aggrieved
person has obtained a
valid judgment and |
post-judgment order of the court as provided for in Section |
20-90 of this Act.
No person aggrieved by an act, |
representation, or transaction that is in
violation of the |
Illinois
Real Estate Time-Share Act or the Land Sales |
Registration Act of 1989 may
recover from the
Fund.
|
(Source: P.A. 96-856, eff. 12-31-09.)
|
(225 ILCS 454/20-90)
|
(Section scheduled to be repealed on January 1, 2020)
|
|
Sec. 20-90. Collection from Real Estate Recovery Fund; |
procedure.
|
(a) No action for a judgment that subsequently results in a |
post-judgment an order for
collection from the
Real Estate |
Recovery Fund shall be started later than 2 years after the |
date on
which the aggrieved
person knew, or through the use of |
reasonable diligence should have known, of
the acts or
|
omissions giving rise to a right of recovery from the Real |
Estate Recovery
Fund.
|
(b) When any aggrieved person commences action for a |
judgment that may
result in
collection from the Real Estate |
Recovery Fund, the aggrieved person must name
as parties
|
defendant to that action any and all individual licensees, or |
their
employees, or independent contractors who allegedly |
committed or are responsible for acts or omissions
giving rise |
to a right
of recovery from the Real Estate Recovery Fund. |
Failure to name as parties
defendant such
licensees, or their |
employees, or independent contractors shall preclude recovery
|
from the Real Estate
Recovery Fund of any portion of any |
judgment received in such an action. These The
aggrieved party
|
may also name as additional parties defendant shall also |
include any corporations, limited
liability companies,
|
partnerships, registered limited liability partnership, or |
other business
associations licensed under this Act that may be
|
responsible for acts giving rise to a right of recovery from |
the Real Estate
Recovery Fund.
|
|
(c) (Blank). When any aggrieved person commences action for |
a judgment that may
result in
collection from the Real Estate |
Recovery Fund, the aggrieved person must notify the Department
|
in writing
to this effect within 7 days of the commencement of |
the action.
Failure to so notify the Department
shall preclude |
recovery from the Real Estate Recovery Fund of any portion
of |
any judgment
received in such an action. After receiving notice |
of the commencement of such
an action, the Department
upon |
timely application shall be permitted to intervene as a party |
defendant to
that action.
|
(d) When any aggrieved person commences action for a |
judgment that may
result in
collection from the Real Estate |
Recovery Fund, and the aggrieved person is unable to obtain |
legal
and proper service upon the parties defendant licensed |
under this Act under the provisions of Illinois law concerning |
service of
process in civil actions, the aggrieved person may |
petition the court where the action to obtain
judgment was |
begun for an order to allow service of legal process on the |
Secretary. Service of
process on the Secretary shall be taken |
and held in that court to be as valid and binding as if
due |
service had been made upon the parties defendant licensed under |
this Act. In case any process mentioned in this Section is
|
served upon the Secretary, the Secretary shall forward a copy |
of the
process by certified
mail to the licensee's last address |
on record with the Department. Any judgment obtained
after |
service of
process on the Secretary under this Act shall apply |
|
to and be enforceable
against the Real
Estate Recovery Fund |
only. The Department OBRE may intervene in and defend any such |
action.
|
(e) (Blank). When an aggrieved party commences action for a |
judgment that may result
in collection
from the Real Estate |
Recovery Fund, and the court before which that action is
|
commenced enters
judgment by default against the defendant and |
in favor of the aggrieved party,
the court shall upon
motion of |
the Department set aside that judgment by default. After such a |
judgment by
default has been set
aside, the Department shall |
appear as party defendant to that action, and thereafter the
|
court shall require
proof of the allegations in the pleadings |
upon which relief is sought.
|
(f) The aggrieved person shall give written notice to the |
Department within 30 days of
the entry of any
judgment that may |
result in collection from the Real Estate Recovery Fund. The
|
aggrieved person shall provide the Department with OBRE within |
20 days prior written notice of all
supplementary
proceedings |
so as to allow the Department to intervene and participate in |
all efforts to collect on the
judgment in the same manner as |
any party.
|
(g) When any aggrieved person recovers a valid judgment in |
any court of
competent
jurisdiction against any licensee or an |
unlicensed employee of any licensee broker, upon
the grounds of
|
fraud, misrepresentation, discrimination, or deceit, the |
aggrieved person may,
upon the termination
of all proceedings, |
|
including review and appeals in connection with the
judgment, |
file a verified
claim in the court in which the judgment was |
entered and, upon 30 days' written
notice to the Department,
|
and to the person against whom the judgment was obtained, may |
apply to the
court for a post-judgment an order
directing |
payment out of the Real Estate Recovery Fund of the amount |
unpaid
upon the judgment,
not including interest on the |
judgment, and subject to the limitations stated
in Section |
20-85 of this
Act. The aggrieved person must set out in that |
verified claim and prove at an
evidentiary hearing to be
held |
by the court upon the application that the claim meets all |
requirements of Section 20-85 and this Section to be eligible |
for payment from the Real Estate Recovery Fund and the |
aggrieved party shall be required to
show that the
aggrieved |
person:
|
(1) Is not a spouse of the debtor or debtors or the |
personal representative of such
spouse.
|
(2) Has complied with all the requirements of this |
Section.
|
(3) Has obtained a judgment stating the amount thereof |
and the amount
owing thereon,
not including interest |
thereon, at the date of the application.
|
(4) Has made all reasonable searches and inquiries to |
ascertain whether
the judgment
debtor or debtors is |
possessed of real or personal property or other assets, |
liable to be
sold or applied in
satisfaction of the |
|
judgment.
|
(5) By such search has discovered no personal or real |
property or other
assets liable to
be sold or applied, or |
has discovered certain of them, describing them as owned
by |
the judgment
debtor or debtors and liable to be so applied |
and has taken all necessary action and
proceedings for the
|
realization thereof, and the amount thereby realized was |
insufficient to
satisfy the judgment, stating
the amount so |
realized and the balance remaining due on the judgment |
after
application of the
amount realized.
|
(6) Has diligently pursued all remedies against all the |
judgment debtors
and
all other
persons liable to the |
aggrieved person in the transaction for which recovery is
|
sought from the Real
Estate Recovery Fund,
including the |
filing of an adversary action to have the debts declared
|
non-dischargeable in any bankruptcy petition matter filed |
by any judgment
debtor or person liable to the aggrieved |
person.
|
The aggrieved person shall also be required to prove the |
amount of attorney's
fees sought to be
recovered and the |
reasonableness of those fees up to the maximum allowed
pursuant |
to Section 20-85
of this Act.
|
(h) After conducting the evidentiary hearing required |
under this Section, the The court, in a post-judgment shall |
make an order directed to the Department, shall indicate |
whether requiring payment from
the Real Estate
Recovery Fund is |
|
appropriate and, if so, the amount of whatever sum it finds to |
be payable upon the claim, pursuant
to and in
accordance with |
the limitations contained in Section 20-85 of this Act, if the
|
court is
satisfied, based upon the hearing,
of the truth of all |
matters required to be shown by the aggrieved person under
|
subsection (g) of this
Section and that the aggrieved person |
has fully pursued and exhausted all
remedies available for
|
recovering the amount awarded by the judgment of the court.
|
(i) Should the Department pay from the Real Estate Recovery |
Fund any amount in
settlement of a claim
or toward satisfaction |
of a judgment against any licensee a licensed broker or |
salesperson
or an unlicensed
employee of a licensee broker, the |
licensee's license shall be automatically revoked terminated
|
upon the issuance of a
post-judgment court order authorizing |
payment from the Real Estate Recovery Fund. No
petition for |
restoration of
a license shall be heard until repayment has |
been made in full, plus interest
at the rate prescribed in
|
Section 12-109 of the Code of Civil Procedure of the amount |
paid from
the Real Estate Recovery Fund on their account, |
notwithstanding any provision to the contrary in Section |
2105-15 of the Department of Professional Regulation Law of the |
Civil Administrative Code of Illinois. A discharge in |
bankruptcy shall
not relieve a
person from the penalties and |
disabilities provided in this subsection (i).
|
(j) If, at any time, the money deposited in the Real Estate |
Recovery Fund is
insufficient to
satisfy any duly authorized |
|
claim or portion thereof, the Department shall, when
sufficient |
money has been
deposited in the Real Estate Recovery Fund, |
satisfy such unpaid claims or
portions thereof, in the
order |
that such claims or portions thereof were originally filed, |
plus
accumulated interest at the rate
prescribed in Section |
12-109 of the Code of Civil Procedure.
|
(Source: P.A. 96-856, eff. 12-31-09.)
|
(225 ILCS 454/20-95)
|
(Section scheduled to be repealed on January 1, 2020)
|
Sec. 20-95. Power of the Department to defend. When the |
Department receives any process, notice, order, or other |
document provided for
or
required under
Section 20-90 of this |
Act, it may enter an appearance, file an answer, appear
at the |
court hearing,
defend the action, or take whatever other action |
it deems appropriate on behalf
and in the name of
the parties |
defendant licensed under this Act or the Department and take |
recourse through any appropriate method of review on
behalf of |
and in the
name of the parties defendant licensed under this |
Act or the Department.
|
(Source: P.A. 96-856, eff. 12-31-09.)
|
(225 ILCS 454/20-115)
|
(Section scheduled to be repealed on January 1, 2020)
|
Sec. 20-115. Time limit on action. No action may be taken |
by the Department against any person for violation of the terms |