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Public Act 098-1109 | ||||
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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 1-10, 5-27, and 25-10 and by adding | ||||
Section 10-45 as follows:
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(225 ILCS 454/1-10)
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(Section scheduled to be repealed on January 1, 2020)
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Sec. 1-10. Definitions. In this Act, unless the context | ||||
otherwise requires:
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"Act" means the Real Estate License Act of 2000.
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"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's | ||||
licensure maintenance unit. It is the duty of the applicant or | ||||
licensee to inform the Department of any change of address, and | ||||
those changes must be made either through the Department's | ||||
website or by contacting the Department. | ||||
"Advisory Council" means the Real Estate Education | ||||
Advisory Council created
under Section 30-10 of this Act.
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"Agency" means a relationship in which a real estate 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.
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"Applicant" means any person, as defined in this Section, | ||
who applies to
the Department for a valid license as a real | ||
estate broker, real estate salesperson, or
leasing agent.
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"Blind advertisement" means any real estate advertisement | ||
that does not
include the sponsoring broker's business name and | ||
that is used by any licensee
regarding the sale or lease of | ||
real estate, including his or her own, licensed
activities, or | ||
the hiring of any licensee under this Act. The broker's
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business name in the case of a franchise shall include the | ||
franchise
affiliation as well as the name of the individual | ||
firm.
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"Board" means the Real Estate Administration and | ||
Disciplinary Board of the Department as created by Section | ||
25-10 of this Act.
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"Branch office" means a sponsoring broker's office other | ||
than the sponsoring
broker's principal office.
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"Broker" means an individual, partnership, limited | ||
liability company,
corporation, or registered limited | ||
liability partnership other than a real
estate salesperson or | ||
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
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directly or indirectly:
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(1) Sells, exchanges, purchases, rents, or leases real | ||
estate.
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(2) Offers to sell, exchange, purchase, rent, or lease | ||
real estate.
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(3) Negotiates, offers, attempts, or agrees to | ||
negotiate the sale,
exchange, purchase, rental, or leasing | ||
of real estate.
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(4) Lists, offers, attempts, or agrees to list real | ||
estate for sale,
lease, or exchange.
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(5) Buys, sells, offers to buy or sell, or otherwise | ||
deals in options on
real estate or improvements thereon.
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(6) Supervises the collection, offer, attempt, or | ||
agreement
to collect rent for the use of real estate.
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(7) Advertises or represents himself or herself as | ||
being engaged in the
business of buying, selling, | ||
exchanging, renting, or leasing real estate.
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(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.
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(9) Assists or directs in the negotiation of any | ||
transaction intended to
result in the sale, exchange, | ||
lease, or rental of real estate.
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(10) Opens real estate to the public for marketing | ||
purposes.
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(11) Sells, leases, or offers for sale or lease real | ||
estate at
auction.
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(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 a written or oral agreement | ||
between a sponsoring
broker and a consumer for licensed | ||
activities to be provided to a consumer in
return for | ||
compensation or the right to receive compensation from another.
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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.
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"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. | ||
"Client" means a person who is being represented by a | ||
licensee.
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"Comparative market analysis" is 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. | ||
"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,
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including without limitation the following:
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(1) commissions;
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(2) referral fees;
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(3) bonuses;
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(4) prizes;
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(5) merchandise;
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(6) finder fees;
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(7) performance of services;
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(8) coupons or gift certificates;
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(9) discounts;
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(10) rebates;
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(11) a chance to win a raffle, drawing, lottery, or | ||
similar game of chance
not prohibited by any other law or |
statute;
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(12) retainer fee; or
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(13) salary.
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"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:
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(1) the client permits the disclosure of information | ||
given by that client
by word or conduct;
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(2) the disclosure is required by law; or
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(3) the information becomes public from a source other | ||
than the licensee.
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"Confidential information" shall not be considered to | ||
include material
information about the physical condition of | ||
the property.
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"Consumer" means a person or entity seeking or receiving | ||
licensed
activities.
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"Continuing education school" means any person licensed by | ||
the Department as a school
for continuing education in | ||
accordance with Section 30-15 of this Act. | ||
"Coordinator" means the Coordinator of Real Estate created | ||
in Section 25-15 of this Act.
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"Credit hour" means 50 minutes of classroom instruction in |
course work that
meets the requirements set forth in rules | ||
adopted by the Department.
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"Customer" means a consumer who is not being represented by | ||
the licensee but
for whom the licensee is performing | ||
ministerial acts.
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"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.
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"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.
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"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
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relationships of the designated agent of the parties and not of | ||
the sponsoring
broker.
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"Employee" or other derivative of the word "employee", when | ||
used to refer to,
describe, or delineate the relationship | ||
between a real estate broker and a real
estate salesperson, | ||
another real estate broker, or a leasing agent, shall be
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construed to include an independent contractor relationship, |
provided that a
written agreement exists that clearly | ||
establishes and states the relationship.
All responsibilities | ||
of a broker shall remain.
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"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
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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.
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"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 designated agent or representative of the client and | ||
that meets the requirements of Section 15-75 of this Act.
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"Inoperative" 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
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sponsoring broker with whom the licensee is associated or by | ||
whom he or she is
employed is currently expired, revoked, | ||
suspended, or otherwise rendered
invalid under this Act.
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"Interactive delivery method" means delivery of a course by | ||
an instructor through a medium allowing for 2-way communication | ||
between the instructor and a student in which either can | ||
initiate or respond to questions. | ||
"Leads" means the name or names of a potential buyer, | ||
seller, lessor, lessee, or client of a licensee. | ||
"Leasing Agent" means a person who is employed by a real | ||
estate 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.
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"License" means the document issued by the Department | ||
certifying that the person named
thereon has fulfilled all | ||
requirements prerequisite to licensure under this
Act.
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"Licensed activities" means those activities listed in the | ||
definition of
"broker" under this Section.
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"Licensee" means any person, as defined in this Section, | ||
who holds a
valid unexpired license as a real estate broker, | ||
real estate salesperson, or
leasing agent.
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"Listing presentation" means a communication between a | ||
real estate broker or
salesperson 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.
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"Managing broker" means a 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.
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"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.
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"Ministerial acts" means those acts that a licensee may | ||
perform for a
consumer that are informative or clerical in | ||
nature and do not rise to the
level of active representation on | ||
behalf of a consumer. Examples of these acts
include without | ||
limitation (i) responding to phone inquiries by consumers as to
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the availability and pricing of brokerage services, (ii) | ||
responding to phone
inquiries from a consumer concerning the | ||
price or location of property, (iii)
attending an open house | ||
and responding to questions about the property from a
consumer, | ||
(iv) setting an appointment to view property, (v) responding to
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questions of consumers walking into a licensee's office | ||
concerning brokerage
services offered or particular | ||
properties, (vi) accompanying an appraiser,
inspector, | ||
contractor, or similar third party on a visit to a property, | ||
(vii)
describing a property or the property's condition in | ||
response to a consumer's
inquiry, (viii) completing business or | ||
factual information for a consumer on an
offer or contract to | ||
purchase on behalf of a client, (ix) showing a client
through a |
property being sold by an owner on his or her own behalf, or | ||
(x)
referral to another broker or service provider.
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"Office" means a real estate broker's place of business | ||
where the general
public is invited to transact business and | ||
where records may be maintained and
licenses displayed, whether | ||
or not it is the broker's principal place of
business.
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"Person" means and includes individuals, entities, | ||
corporations, limited
liability companies, registered limited | ||
liability partnerships, and
partnerships, foreign or domestic, | ||
except that when the context otherwise
requires, the term may | ||
refer to a single individual or other described entity.
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"Personal assistant" means a licensed or unlicensed person | ||
who has been hired
for the purpose of aiding or assisting a | ||
sponsored licensee in the performance
of the sponsored | ||
licensee's job.
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"Pocket card" means the card issued by the Department to | ||
signify that the person named
on the card is currently licensed | ||
under this Act.
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"Pre-license school" means a school licensed by the | ||
Department offering courses in
subjects related to real estate | ||
transactions, including the subjects upon
which an applicant is | ||
examined in determining fitness to receive a license.
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"Pre-renewal period" means the period between the date of | ||
issue of a
currently valid license and the license's expiration | ||
date.
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"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 | ||
pre-license school or a licensed continuing education school. | ||
"Real estate" means and includes leaseholds as well as any | ||
other interest or
estate in land, whether corporeal, | ||
incorporeal, freehold, or non-freehold,
including timeshare | ||
interests, and whether the real estate is situated in this
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State or elsewhere.
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"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 eleven main | ||
tests in three categories being behavioral control, financial | ||
control and the type of relationship of the parties, formerly | ||
the twenty factor test.
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"Salesperson" means any individual, other than a real | ||
estate broker or
leasing agent, who is employed by a real | ||
estate broker or is associated by
written agreement with a real | ||
estate broker as an independent contractor and
participates in | ||
any activity described in the definition of "broker" under this
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Section.
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"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 has issued a | ||
sponsor card to a
licensed salesperson, another licensed | ||
broker, or a leasing agent.
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"Sponsor card" means the temporary permit issued by the | ||
sponsoring real
estate broker certifying that the real estate | ||
broker, real estate salesperson,
or leasing agent named thereon | ||
is employed by or associated by written
agreement with the | ||
sponsoring real estate broker, as provided for in Section
5-40 | ||
of this Act.
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(Source: P.A. 98-531, eff. 8-23-13.)
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(225 ILCS 454/5-27) | ||
(Section scheduled to be repealed on January 1, 2020) | ||
Sec. 5-27. Requirements for licensure as a broker. | ||
(a) Every applicant for licensure as a broker must meet the | ||
following qualifications: | ||
(1) Be at least 21 years of age. After April 30, 2011, | ||
the minimum age of 21 years shall be waived for any person | ||
seeking a license as a broker who has attained the age of | ||
18 and can provide evidence of the successful completion of | ||
at least 4 semesters of post-secondary school study as a | ||
full-time student or the equivalent, with major emphasis on | ||
real estate courses, in a school approved by the | ||
Department; | ||
(2) Be of good moral character; | ||
(3) Successfully complete a 4-year course of study in a | ||
high school or secondary school approved by the Illinois | ||
State Board of Education or an equivalent course of study | ||
as determined by an examination conducted by the Illinois |
State Board of Education which shall be verified under oath | ||
by the applicant; | ||
(4) Prior to May 1, 2011, provide (i) satisfactory | ||
evidence of having completed at least 120 classroom hours, | ||
45 of which shall be those hours required to obtain a | ||
salesperson's license plus 15 hours in brokerage | ||
administration courses, in real estate courses approved by | ||
the Advisory Council or (ii) for applicants who currently | ||
hold a valid real estate salesperson's license, give | ||
satisfactory evidence of having completed at least 75 hours | ||
in real estate courses, not including the courses that are | ||
required to obtain a salesperson's license, approved by the | ||
Advisory Council; | ||
(5) After April 30, 2011, provide satisfactory | ||
evidence of having completed 90 hours of instruction in | ||
real estate courses approved by the Advisory Council, 15 | ||
hours of which must consist of situational and case studies | ||
presented in the classroom or by other interactive delivery | ||
method presenting instruction and real time discussion | ||
between the instructor and the students; | ||
(6) Personally take and pass a written examination | ||
authorized by the Department; | ||
(7) Present a valid application for issuance of a | ||
license accompanied by a sponsor card and the fees | ||
specified by rule. | ||
(b) The requirements specified in items (4) and (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. | ||
(c) No applicant shall engage in any of the activities | ||
covered by this Act until a valid sponsor card has been issued | ||
to such applicant. The sponsor card shall be valid for a | ||
maximum period of 45 days after the date of issuance unless | ||
extended for good cause as provided by rule. | ||
(d) All licenses should be readily available to the public | ||
at their place of business.
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(e) An individual holding an active license as a managing | ||
broker may return the license to the Department along with a | ||
form provided by the Department and shall be issued a broker's | ||
license in exchange. Any individual obtaining a broker's | ||
license under this subsection (e) shall be considered as having | ||
obtained a broker's license by education and passing the | ||
required test and shall be treated as such in determining | ||
compliance with this Act. | ||
(Source: P.A. 98-531, eff. 8-23-13.) | ||
(225 ILCS 454/10-45 new) | ||
Sec. 10-45. Broker price opinions and comparative market | ||
analyses. | ||
(a) A broker price opinion or comparative market analysis | ||
may be prepared or provided by a real estate broker or managing | ||
broker for any of the following: |
(1) an existing or potential buyer or seller of an | ||
interest in real estate; | ||
(2) an existing or potential lessor or lessee of an | ||
interest in real estate; | ||
(3) a third party making decisions or performing due | ||
diligence related to the potential listing, offering, | ||
sale, option, lease, or acquisition price of an interest in | ||
real estate; or | ||
(4) an existing or potential lienholder or other third | ||
party for any purpose other than as the primary basis to | ||
determine the market value of an interest in real estate | ||
for the purpose of a mortgage loan origination by a | ||
financial institution secured by such real estate. | ||
(b) A broker price opinion or comparative market analysis | ||
shall be in writing either on paper or electronically and shall | ||
include the following provisions: | ||
(1) a statement of the intended purpose of the broker | ||
price opinion or comparative market analysis; | ||
(2) a brief description of the interest in real estate | ||
that is the subject of the broker price opinion or | ||
comparative market analysis; | ||
(3) a brief description of the methodology used to | ||
develop the broker price opinion or comparative market | ||
analysis; | ||
(4) any assumptions or limiting conditions; | ||
(5) a disclosure of any existing or contemplated |
interest of the broker or managing broker in the interest | ||
in real estate that is the subject of the broker price | ||
opinion or comparative market analysis; | ||
(6) the name, license number, and signature of the | ||
broker or managing broker that developed the broker price | ||
opinion or comparative market analysis; | ||
(7) a statement in substantially the following form: | ||
"This is a broker price opinion/comparative market | ||
analysis, not an appraisal of the market value of the real | ||
estate, and was prepared by a licensed real estate broker | ||
or managing broker, not by a State certified real estate | ||
appraiser."; and | ||
(8) such other items as the broker or managing broker | ||
may deem appropriate.
| ||
(225 ILCS 454/25-10)
| ||
(Section scheduled to be repealed on January 1, 2020)
| ||
Sec. 25-10. Real Estate Administration and Disciplinary
| ||
Board;
duties.
There is created the Real Estate Administration | ||
and Disciplinary Board.
The Board shall be composed of 9 | ||
persons appointed by the Governor. Members
shall be
appointed | ||
to the Board subject to the following conditions:
| ||
(1) All members shall have been residents and citizens | ||
of this State for
at least 6 years
prior to the date of | ||
appointment.
| ||
(2) Six members shall have been actively engaged as |
brokers or
salespersons or both for
at least the 10 years | ||
prior to the appointment.
| ||
(3) Three members of the Board shall be public members | ||
who represent
consumer
interests.
| ||
None of these members shall be (i) a person who is licensed | ||
under this
Act or a similar Act of another jurisdiction, (ii) | ||
the spouse or family member of a licensee, (iii) a person who | ||
has an ownership interest in a
real estate brokerage
business, | ||
or (iv) a person the Department determines to have any other | ||
connection with a real estate brokerage business or a licensee.
| ||
The members' terms shall be 4 years or until their successor is | ||
appointed, and the expiration of their terms shall be
| ||
staggered.
Appointments to fill vacancies shall be for the | ||
unexpired portion of the term. No
member shall be reappointed | ||
to the Board for a term that would cause his or her service on | ||
the Board to be longer than 12 years in a lifetime.
The | ||
membership of the Board should reasonably reflect the | ||
geographic
distribution of the licensee
population in this | ||
State. In making the appointments, the Governor shall give
due | ||
consideration
to the recommendations by members and | ||
organizations of the profession.
The Governor may terminate the | ||
appointment of any member for cause that in the
opinion of the
| ||
Governor reasonably justifies the termination. Cause for | ||
termination shall
include without limitation
misconduct, | ||
incapacity, neglect of duty, or missing 4 board meetings during | ||
any
one
calendar year.
Each member of the Board may receive a |
per diem stipend in an amount to be
determined by the | ||
Secretary. Each member shall be paid his or her necessary | ||
expenses while
engaged in the
performance of his or her duties. | ||
Such compensation and expenses shall be paid
out of the Real | ||
Estate
License Administration Fund.
The Secretary shall | ||
consider the recommendations of the Board on questions
| ||
involving
standards of professional conduct, discipline, and | ||
examination of candidates
under this Act. The Department, after | ||
notifying and considering the recommendations of the Board, if | ||
any,
may issue rules,
consistent with the provisions of this | ||
Act, for the administration and
enforcement thereof and may
| ||
prescribe forms that shall be used in connection therewith. | ||
Five Board members shall constitute a quorum. A quorum is | ||
required for all Board decisions.
| ||
(Source: P.A. 96-856, eff. 12-31-09.)
| ||
Section 10. The Real Estate Appraiser Licensing Act of 2002 | ||
is amended by changing Sections 1-5, 1-10, 5-5, 5-10, 5-15, | ||
5-20, 5-30, 5-35, 5-40, 5-50, 10-5, 15-10, 20-5, 20-10, 25-10, | ||
and 25-15 and by adding Section 5-22 as follows:
| ||
(225 ILCS 458/1-5)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 1-5. Legislative intent. The intent of the General | ||
Assembly in
enacting this Act is to
evaluate the competency of | ||
persons engaged in the appraisal of real estate in
connection |
with a federally related transaction and
to license and | ||
regulate
those persons for the protection of the public. | ||
Additionally, it is the intent
of the General Assembly for
this | ||
Act to be consistent with the provisions of Title XI of the | ||
federal
Financial Institutions Reform,
Recovery and | ||
Enforcement Act of 1989.
| ||
(Source: P.A. 92-180, eff. 7-1-02 .)
| ||
(225 ILCS 458/1-10)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 1-10. Definitions. As used in this Act, unless the | ||
context
otherwise requires:
| ||
"Accredited college or university, junior college, or | ||
community college" means a college or university, junior | ||
college, or community college that is approved or accredited by | ||
the Board of Higher Education, a regional or national | ||
accreditation association, or by an accrediting agency that is | ||
recognized by the U.S. Secretary of Education.
| ||
"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's | ||
licensure maintenance unit. It is the duty of the applicant or | ||
licensee to inform the Department of any change of address and | ||
those changes must be made either through the Department's | ||
website or by contacting the Department. | ||
"Applicant" means person who applies to the Department
for |
a license under this Act.
| ||
"Appraisal" means
(noun) the act or process of developing | ||
an opinion
of value; an
opinion of value (adjective) of or | ||
pertaining to appraising
and related functions, such as | ||
appraisal practice or appraisal services. | ||
"Appraisal assignment" means a valuation service provided | ||
as a consequence of an agreement between an appraiser and a | ||
client. | ||
"Appraisal consulting" means the act or process of | ||
developing an analysis, recommendation, or opinion to solve a | ||
problem, where an opinion of value is a component of the | ||
analysis leading to the assignment results. | ||
"Appraisal firm" means an appraisal entity that is 100% | ||
owned and controlled by a person or persons licensed in | ||
Illinois as a certified general real estate appraiser or a | ||
certified residential real estate appraiser. "Appraisal firm" | ||
does not include an appraisal management company. | ||
"Appraisal management company" means any corporation, | ||
limited liability company, partnership, sole proprietorship, | ||
subsidiary, unit, or other business entity that directly or | ||
indirectly performs the following appraisal management | ||
services: (1) administers networks of independent contractors | ||
or employee appraisers to perform real estate appraisal | ||
assignments for clients; (2) receives requests for real estate | ||
appraisal services from clients and, for a fee paid by the | ||
client, enters into an agreement with one or more independent |
appraisers to perform the real estate appraisal services | ||
contained in the request; or (3) otherwise serves as a | ||
third-party broker of appraisal management services between | ||
clients and appraisers. "Appraisal management company" does | ||
not include an appraisal firm. | ||
"Appraisal practice" means valuation services performed by | ||
an individual acting as an appraiser, including, but not | ||
limited to, appraisal, appraisal review, or appraisal | ||
consulting.
| ||
"Appraisal report" means any communication, written or | ||
oral, of an appraisal or , appraisal review , or appraisal | ||
consulting service that is transmitted to a client upon | ||
completion of an assignment.
| ||
"Appraisal review" means the act or process of developing | ||
and communicating an opinion about the quality of another | ||
appraiser's work that was performed as part of an appraisal, | ||
appraisal review, or appraisal assignment.
| ||
"Appraisal Subcommittee" means the Appraisal Subcommittee | ||
of the Federal
Financial Institutions
Examination Council as | ||
established by Title XI.
| ||
"Appraiser" means a person who performs
real estate or real | ||
property
appraisals.
| ||
"AQB" means the Appraisal Qualifications Board of the | ||
Appraisal Foundation.
| ||
"Associate real estate trainee appraiser" means an | ||
entry-level appraiser who holds
a license of this |
classification under this Act with restrictions as to the scope | ||
of practice
in
accordance with this Act.
| ||
"Board" means the Real Estate Appraisal Administration and | ||
Disciplinary Board.
| ||
"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. | ||
"Classroom hour" means 50 minutes of instruction out of | ||
each 60 minute
segment of coursework.
| ||
"Client" means the party or parties who engage an appraiser | ||
by employment or contract in a specific appraisal assignment.
| ||
"Comparative market analysis" is 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. | ||
"Coordinator" means the Coordinator of Real Estate | ||
Appraisal of the Division of Professional Regulation of the | ||
Department of Financial and Professional Regulation.
| ||
"Department" means the Department of Financial and | ||
Professional Regulation.
| ||
"Federal financial institutions regulatory agencies" means | ||
the Board of
Governors of the Federal Reserve
System, the | ||
Federal Deposit Insurance Corporation, the Office of the
| ||
Comptroller of the Currency, the
Consumer Financial Protection | ||
Bureau Office of Thrift Supervision , and the National Credit | ||
Union Administration.
| ||
"Federally related transaction" means any real | ||
estate-related financial
transaction in which a federal
| ||
financial institutions regulatory agency , the Department of | ||
Housing
and Urban Development, Fannie Mae, Freddie Mae, or the | ||
National
Credit Union Administration
engages in, contracts | ||
for, or
regulates and requires the services
of an appraiser.
| ||
"Financial institution" means any bank, savings bank, | ||
savings and loan
association, credit union,
mortgage broker, | ||
mortgage banker, licensee under the Consumer Installment Loan
| ||
Act or the Sales
Finance Agency Act, or a corporate fiduciary, |
subsidiary, affiliate, parent
company, or holding company
of | ||
any such licensee, or any institution involved in real estate | ||
financing that
is regulated by state or
federal law.
| ||
"Modular Course" means the Appraisal Qualifying Course | ||
Design conforming to the Sub Topics Course Outline contained in | ||
the AQB Criteria 2008.
| ||
"Person" means an individual, entity, sole proprietorship, | ||
corporation, limited liability company, partnership, and joint | ||
venture, foreign or domestic, except that when the context | ||
otherwise requires, the term may refer to more than one | ||
individual or other described entity. | ||
"Real estate" means an identified parcel or tract of land, | ||
including any
improvements.
| ||
"Real estate related financial transaction" means any | ||
transaction involving:
| ||
(1) the sale, lease, purchase, investment in, or | ||
exchange of real
property,
including interests
in property | ||
or the financing thereof;
| ||
(2) the refinancing of real property or interests in | ||
real property; and
| ||
(3) the use of real property or interest in property as | ||
security for a
loan or
investment,
including mortgage | ||
backed securities.
| ||
"Real property" means the interests, benefits, and rights | ||
inherent in the
ownership of real estate.
| ||
"Secretary" means the Secretary of Financial and |
Professional Regulation.
| ||
"State certified general real estate
appraiser" means an | ||
appraiser who holds a
license of this classification under this | ||
Act
and such classification applies to
the appraisal of all | ||
types of real property without restrictions as to
the scope of | ||
practice.
| ||
"State certified residential real estate
appraiser" means | ||
an appraiser who
holds a
license of this classification
under | ||
this Act
and such classification applies to
the appraisal of
| ||
one to 4 units of
residential real property without regard to | ||
transaction value or complexity,
but with restrictions as to | ||
the
scope of practice
in a federally related transaction in | ||
accordance with Title
XI, the provisions of USPAP,
criteria | ||
established by the AQB, and further defined by rule.
| ||
"Supervising appraiser" means either (i) an appraiser who | ||
holds a valid license under this Act as either a State | ||
certified general real estate appraiser or a State certified | ||
residential real estate appraiser, who co-signs an appraisal | ||
report for an associate real estate trainee appraiser or (ii) a | ||
State certified general real estate appraiser who holds a valid | ||
license under this Act who co-signs an appraisal report for a | ||
State certified residential real estate appraiser on | ||
properties other than one to 4 units of residential real | ||
property without regard to transaction value or complexity.
| ||
"Title XI" means Title XI of the federal Financial | ||
Institutions Reform,
Recovery and
Enforcement Act of 1989.
|
"USPAP" means the Uniform Standards of Professional | ||
Appraisal Practice as
promulgated by the
Appraisal Standards | ||
Board pursuant to Title XI and by rule.
| ||
"Valuation services" means services pertaining to aspects | ||
of property value. | ||
(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
| ||
(225 ILCS 458/5-5)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-5. Necessity of license; use of title; exemptions.
| ||
(a) It
is unlawful for a person to (i) act, offer services, | ||
or advertise services
as a State certified general real estate
| ||
appraiser, State certified residential real estate appraiser, | ||
or associate real estate trainee appraiser, (ii)
develop a real | ||
estate appraisal,
(iii)
practice as a real estate
appraiser, or | ||
(iv)
advertise or hold himself or herself out to be a real | ||
estate
appraiser
without a license issued under this Act. A | ||
person who
violates this subsection is
guilty of a Class A | ||
misdemeanor for a first offense and a Class 4 felony for any | ||
subsequent offense.
| ||
(a-5) It is unlawful for a person, unless registered as an | ||
appraisal management company, to solicit clients or enter into | ||
an appraisal engagement with clients without either a certified | ||
residential real estate appraiser license or a certified | ||
general real estate appraiser license issued under this Act. A | ||
person who violates this subsection is guilty of a Class A |
misdemeanor for a first offense and a Class 4 felony for any | ||
subsequent offense. | ||
(b) It
is unlawful for a person, other than a
person who | ||
holds a valid license issued pursuant to this
Act as a State | ||
certified general real estate appraiser, a
State
certified
| ||
residential real estate appraiser,
or an associate real estate | ||
trainee appraiser to use these titles or any other title, | ||
designation, or
abbreviation likely to create the
impression | ||
that the person is licensed as a real estate appraiser pursuant | ||
to
this Act. A person who
violates this subsection is guilty of | ||
a Class A misdemeanor for a first offense and a Class 4 felony | ||
for any subsequent offense.
| ||
(c) This Act does not apply to a person who holds a valid | ||
license as a real estate broker or managing broker pursuant to | ||
the Real Estate License Act of 2000 who prepares or provides a | ||
broker price opinion or comparative market analysis in | ||
compliance with Section 10-45 of the Real Estate License Act of | ||
2000.
The licensing requirements of this Act
do not
require a | ||
person who holds a
valid license pursuant to the Real Estate | ||
License Act of 2000, to be licensed
as a real estate appraiser
| ||
under this Act,
unless that person is
providing
or attempting | ||
to provide an appraisal report, as defined in Section
1-10 of | ||
this Act, in connection with a federally-related transaction. | ||
Nothing in this Act shall prohibit a person who holds a valid | ||
license under the Real Estate License Act of 2000 from | ||
performing a comparative market analysis or broker price |
opinion for compensation, provided that the person does not | ||
hold himself out as being a licensed real estate appraiser. | ||
(d) Nothing in this Act shall preclude a State certified | ||
general real estate appraiser, a State certified residential | ||
real estate appraiser, or an associate real estate trainee | ||
appraiser from rendering appraisals for or on behalf of a | ||
partnership, association, corporation, firm, or group. | ||
However, no State appraisal license or certification shall be | ||
issued under this Act to a partnership, association, | ||
corporation, firm, or group.
| ||
(e) This Act does not apply to a county assessor, township | ||
assessor, multi-township assessor, county supervisor of | ||
assessments, or any deputy or employee of any county assessor, | ||
township assessor, multi-township assessor, or county | ||
supervisor of assessments who is performing his or her | ||
respective duties in accordance with the provisions of the | ||
Property Tax Code.
| ||
(e-5) For the purposes of this Act, valuation waivers may | ||
be prepared by a licensed appraiser notwithstanding any other | ||
provision of this Act, and the following types of valuations | ||
are not appraisals and may not be represented to be appraisals, | ||
and a license is not required under this Act to
perform such | ||
valuations if the valuations are performed by (1) an employee | ||
of the Illinois Department of Transportation who has completed | ||
a minimum of 45 hours of course work in real estate appraisal, | ||
including the principals of real estate appraisals, appraisal |
of partial acquisitions, easement valuation, reviewing | ||
appraisals in eminent domain, appraisal for federal aid highway | ||
programs, and appraisal review for federal aid highway programs | ||
and has at least 2 years' experience in a field closely related | ||
to real estate or (2) a county engineer who is a registered | ||
professional engineer under the Professional Engineering | ||
Practice Act of 1989, under the following circumstances: | ||
(A) a valuation waiver in an amount not to exceed | ||
$10,000 prepared pursuant to the federal Uniform | ||
Relocation Assistance and Real Property Acquisition | ||
Policies Act of 1970, or prepared pursuant to the federal | ||
Uniform Relocation Assistance and Real Property | ||
Acquisition for Federal and Federally-Assisted Programs | ||
regulations and which is performed by an employee of the | ||
Illinois Department of Transportation and co-signed, with | ||
a license number affixed, by another employee of the | ||
Illinois Department of Transportation who is a registered | ||
professional engineer under the Professional Engineering | ||
Practice Act of 1989; and | ||
(B) a valuation waiver in an amount not to exceed | ||
$10,000 prepared pursuant to the federal Uniform | ||
Relocation Assistance and Real Property Acquisition | ||
Policies Act of 1970, or prepared pursuant to the federal | ||
Uniform Relocation Assistance and Real Property | ||
Acquisition for Federal and Federally-Assisted Programs | ||
regulations and which is performed by a county engineer who |
is employed by a county and is a registered professional | ||
engineer under the Professional Engineering Practice Act | ||
of 1989. In addition to his or her signature, the county | ||
engineer shall affix his or her license number to the | ||
valuation. | ||
Nothing in this subsection (e-5) shall be construed to | ||
allow the State of Illinois, a political subdivision thereof, | ||
or any public body to acquire real estate by eminent domain in | ||
any manner
other than provided for in the Eminent Domain Act. | ||
(f) A State real estate appraisal certification or license | ||
is not required under this Act for any of the following: | ||
(1) A person, partnership, association, or corporation | ||
that performs appraisals of property owned by that person, | ||
partnership, association, or corporation for the sole use | ||
of that person, partnership, association, or corporation. | ||
(2) A court-appointed commissioner who conducts an | ||
appraisal pursuant to a judicially ordered evaluation of | ||
property. | ||
However, any person who is certified or licensed under this Act | ||
and who performs any of the activities set forth in this | ||
subsection (f) must comply with the provisions of this Act. A | ||
person who violates this subsection (f) is guilty of a Class A | ||
misdemeanor for a first offense and a Class 4 felony for any | ||
subsequent offense. | ||
(g) This Act does not apply to an employee, officer, | ||
director, or member of a credit or loan committee of a |
financial institution or any other person engaged by a | ||
financial institution when performing an evaluation of real | ||
property for the sole use of the financial institution in a | ||
transaction for which the financial institution would not be | ||
required to use the services of a State licensed or State | ||
certified appraiser pursuant to federal regulations adopted | ||
under Title XI of the federal Financial Institutions Reform, | ||
Recovery, and Enforcement Act of 1989, nor does this Act apply | ||
to the procurement of an automated valuation model. | ||
"Automated valuation model" means an automated system that | ||
is used to derive a property value through the use of publicly | ||
available property records and various analytic methodologies | ||
such as comparable sales prices, home characteristics, and | ||
historical home price appreciations.
| ||
(Source: P.A. 97-602, eff. 8-26-11; 98-444, eff. 8-16-13.)
| ||
(225 ILCS 458/5-10)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-10. Application for State
certified general real | ||
estate appraiser.
| ||
(a) Every person who
desires to obtain a State certified | ||
general real estate appraiser license
shall:
| ||
(1) apply to the Department
on forms provided by the | ||
Department
accompanied by the required fee;
| ||
(2) be at least 18 years of age;
| ||
(3) (blank);
|
(4) personally take and pass an examination authorized | ||
by the Department
and endorsed
by the AQB;
| ||
(5) prior to taking the examination, provide evidence | ||
to the Department, in Modular Course format, with each | ||
module conforming to the Required Core Curriculum Real | ||
Property Appraiser Qualification Criteria established and | ||
adopted by the AQB,
that he or she
has successfully | ||
completed the prerequisite
classroom hours of instruction | ||
in appraising as established by the AQB and by
rule; and
| ||
(6) prior to taking the examination, provide evidence
| ||
to the Department
that he or she has successfully completed | ||
the prerequisite
experience and educational requirements | ||
in appraising as established by AQB and by rule.
| ||
(b) Applicants must provide evidence to the Department of | ||
(i) holding a Bachelor's degree or higher from an accredited | ||
college or university . or (ii) successfully passing 30 semester | ||
credit hours or the equivalent from an accredited college or | ||
university, junior college, or community college in the | ||
following subjects: | ||
(1) English composition; | ||
(2) micro economics; | ||
(3) macro economics; | ||
(4) finance; | ||
(5) algebra, geometry, or higher mathematics; | ||
(6) statistics; | ||
(7) introduction to computers-word
processing and |
spreadsheets; | ||
(8) business or real estate law; and | ||
(9) two elective courses in accounting, geography,
| ||
agricultural economics, business management, or real
| ||
estate. | ||
If an accredited college or university accepts the | ||
College-Level Examination Program (CLEP) examinations and | ||
issues a transcript for the exam showing its approval, it will | ||
be considered credit for the college course for the purposes of | ||
meeting the requirements of this subsection (b).
| ||
(Source: P.A. 96-844, eff. 12-23-09; 96-1000, eff. 7-2-10 .)
| ||
(225 ILCS 458/5-15)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-15. Application for State certified residential | ||
real estate
appraiser. | ||
(a) Every person who
desires to obtain a State certified | ||
residential real estate appraiser license
shall:
| ||
(1) apply to the Department
on forms provided by the | ||
Department
accompanied by the required fee;
| ||
(2) be at least 18 years of age;
| ||
(3) (blank);
| ||
(4) personally take and pass an examination authorized | ||
by the Department
and endorsed
by
the AQB;
| ||
(5) prior to taking the examination, provide evidence
| ||
to the Department, in Modular Course format, with each |
module conforming to the Required Core Curriculum Real | ||
Property Appraiser Qualification Criteria established and | ||
adopted by the AQB,
that he or she has successfully | ||
completed the prerequisite
classroom hours of instruction | ||
in appraising as established by the AQB and by
rule; and
| ||
(6) prior to taking the examination, provide evidence
| ||
to the Department
that he or she has successfully completed | ||
the prerequisite
experience and educational requirements | ||
as established by AQB and by rule.
| ||
(b) Applicants must provide evidence to the Department of | ||
(i) holding an Associate's degree or its equivalent from an | ||
accredited college or university, junior college, or community | ||
college or (ii) successfully passing 21 semester credit hours | ||
or the equivalent from an accredited college or university, | ||
junior college, or community college in the following subjects: | ||
(1) English composition; | ||
(2) principals of economics (micro or macro); | ||
(3) finance; | ||
(4) algebra, geometry, or higher mathematics; | ||
(5) statistics; | ||
(6) introduction to computers-word
processing and | ||
spreadsheets; and | ||
(7) business or real estate law. | ||
If an accredited college or university accepts the | ||
College-Level Examination Program (CLEP) examinations and | ||
issues a transcript for the exam showing its approval, it will |
be considered credit for the college course for the purposes of | ||
the requirements of this subsection (b).
| ||
(Source: P.A. 96-844, eff. 12-23-09 .)
| ||
(225 ILCS 458/5-20)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-20. Application for associate real estate trainee
| ||
appraiser. Every person who desires to obtain an associate real | ||
estate trainee appraiser
license shall:
| ||
(1) apply to the Department
on forms provided by the | ||
Department
accompanied by the required
fee;
| ||
(2) be at least 18 years of age;
| ||
(3) provide evidence of having attained a high school | ||
diploma or completed
an
equivalent course of
study as | ||
determined by an examination conducted
or accepted
by the | ||
Illinois State Board of
Education;
| ||
(4) personally take and pass an examination authorized | ||
by the Department; and
| ||
(5) prior to taking the examination, provide evidence
| ||
to the Department
that he or she has successfully
completed
| ||
the prerequisite qualifying and any conditional education | ||
requirements classroom hours of instruction in appraising | ||
as established by
rule.
| ||
(Source: P.A. 96-844, eff. 12-23-09 .)
| ||
(225 ILCS 458/5-22 new) |
Sec. 5-22. Criminal history records check. Each applicant | ||
for licensure by examination or restoration shall have his or | ||
her fingerprints submitted to the Department of State Police in | ||
an electronic format that complies with the form and manner for | ||
requesting and furnishing criminal history record information | ||
as prescribed by the Department of State Police. These | ||
fingerprints shall be checked against the Department of State | ||
Police and Federal Bureau of Investigation criminal history | ||
record databases now and hereafter filed. The Department of | ||
State Police shall charge applicants a fee for conducting the | ||
criminal history records check, which shall be deposited into | ||
the State Police Services Fund and shall not exceed the actual | ||
cost of the records check. The Department of State Police shall
| ||
furnish, pursuant to positive identification, records of | ||
Illinois convictions to the Department. The Department may | ||
require applicants to pay a separate fingerprinting fee, either | ||
to the Department or to a vendor. The Department may adopt any | ||
rules necessary to implement this Section.
| ||
(225 ILCS 458/5-30)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-30. Endorsement. The Department may issue an | ||
appraiser license, without the required examination, to an | ||
applicant licensed by another state, territory, possession of | ||
the United States, or the District of
Columbia, if (i) the | ||
licensing
requirements of that licensing authority are, on the |
date of licensure, substantially equal to the requirements set | ||
forth under this Act or to a person who, at the time of his or | ||
her application, possessed individual qualifications that were | ||
substantially equivalent to the requirements of this Act or | ||
(ii) the applicant provides the Department
with evidence of | ||
good standing from
the Appraisal Subcommittee National | ||
Registry
report and a criminal history records check in | ||
accordance with Section 5-22 . An applicant under this Section | ||
shall pay all of the required fees.
| ||
(Source: P.A. 96-844, eff. 12-23-09 .)
| ||
(225 ILCS 458/5-35)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-35. Qualifying Pre-license education requirements.
| ||
(a) The prerequisite
classroom hours necessary for a person | ||
to be
approved to sit for the examination for licensure as a
| ||
State
certified general real
estate
appraiser
or
a State | ||
certified residential
real estate appraiser
shall be in | ||
accordance with AQB criteria and established
by rule.
| ||
(b) The prerequisite classroom hours necessary for a person
| ||
to sit for the examination for licensure as an associate real
| ||
estate trainee appraiser shall be established by rule.
| ||
(Source: P.A. 96-844, eff. 12-23-09 .)
| ||
(225 ILCS 458/5-40)
| ||
(Section scheduled to be repealed on January 1, 2022)
|
Sec. 5-40. Qualifying Pre-license experience requirements. | ||
The
prerequisite experience necessary for a person to be | ||
approved to sit for the
examination
for licensure as a State | ||
certified general real estate
appraiser or a State certified
| ||
residential real
estate appraiser shall be established by
rule.
| ||
(Source: P.A. 96-844, eff. 12-23-09 .)
| ||
(225 ILCS 458/5-50)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-50. Temporary practice permits. A nonresident | ||
appraiser who holds
a valid appraiser
license in another state, | ||
territory, possession of the United States, or the
District of | ||
Columbia may be
granted a temporary practice permit to practice | ||
as an appraiser in the State of
Illinois upon making
an | ||
application and paying the applicable fees pursuant to | ||
Appraisal
Subcommittee
policy statements and as
established by | ||
rule.
| ||
(Source: P.A. 92-180, eff. 7-1-02 .)
| ||
(225 ILCS 458/10-5)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 10-5. Scope of practice.
| ||
(a) This Act does not limit a
State
certified general real | ||
estate appraiser
in his or
her scope of practice in
a federally | ||
related transaction. A certified general real estate appraiser
| ||
may independently provide
appraisal
services, review, or |
consulting
relating to any type of property for which he or she | ||
has experience or
is
competent. All such appraisal
practice | ||
must be made in accordance with the provisions of USPAP, | ||
criteria
established by the AQB, and rules adopted pursuant to | ||
this Act.
| ||
(b) A State certified residential real estate appraiser is | ||
limited in his or
her scope of practice
to
the provisions of | ||
USPAP, criteria established by the AQB, and the
rules adopted | ||
pursuant to this Act.
| ||
(c) A State certified residential real estate appraiser | ||
must have a State certified general real estate appraiser who | ||
holds a valid license under this Act co-sign all appraisal | ||
reports on properties other than one to 4 units of residential | ||
real property without regard to transaction value or | ||
complexity.
| ||
(d) An associate real estate trainee appraiser is limited | ||
in his or her scope of
practice in all transactions in | ||
accordance with the provisions of
USPAP, this
Act, and the | ||
rules adopted pursuant to this Act. In addition,
an associate | ||
real estate trainee appraiser shall be required to have
a State | ||
certified
general real estate
appraiser or State certified | ||
residential real estate appraiser who holds a
valid license | ||
under this Act
to co-sign all appraisal reports. A The | ||
associate real estate trainee appraiser licensee may not have | ||
more than 3 supervising appraisers, and a supervising appraiser | ||
may not supervise more than 3 associate real estate trainee |
appraisers at one time. Associate real estate trainee | ||
appraisers shall not be limited in the number of concurrent | ||
supervising appraisers. A chronological appraisal log on an | ||
approved log form shall be maintained by the associate real | ||
estate trainee appraiser and shall be made available to the | ||
Department upon request.
| ||
(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
| ||
(225 ILCS 458/15-10)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 15-10. Grounds for disciplinary action.
| ||
(a) The Department
may suspend, revoke,
refuse to issue,
| ||
renew, or restore a license and may reprimand place on | ||
probation or administrative
supervision,
or take any | ||
disciplinary or non-disciplinary action, including
imposing
| ||
conditions limiting the scope, nature, or extent of the real | ||
estate appraisal
practice of a
licensee or reducing the | ||
appraisal rank of a licensee,
and may impose an administrative | ||
fine
not to exceed $25,000 for each violation upon a licensee
| ||
for any one or combination of the following:
| ||
(1) Procuring or attempting to procure a license by | ||
knowingly making a
false statement,
submitting false | ||
information, engaging in any form of fraud or
| ||
misrepresentation,
or refusing
to provide complete | ||
information in response to a question in an application for
| ||
licensure.
|
(2) Failing to meet the minimum qualifications for | ||
licensure as an
appraiser established by this
Act.
| ||
(3) Paying money, other than for the fees provided for | ||
by this Act, or
anything of value to a
member or employee | ||
of the Board or the Department
to procure
licensure
under | ||
this Act.
| ||
(4) Conviction by plea of guilty or nolo contendere, | ||
finding of guilt, jury verdict, or entry of judgment or by | ||
sentencing of any crime, including, but not limited to, | ||
convictions, preceding sentences of supervision, | ||
conditional discharge, or first offender probation, under | ||
the laws of any jurisdiction of the United States: (i) that | ||
is a felony; or (ii) that is a misdemeanor, an essential | ||
element of which is dishonesty, or that is directly related | ||
to the practice of the profession.
| ||
(5) Committing an act or omission involving | ||
dishonesty, fraud, or
misrepresentation with the intent to
| ||
substantially benefit the licensee or another person or | ||
with intent to
substantially injure
another person as | ||
defined by rule.
| ||
(6) Violating a provision or standard for the | ||
development or
communication of real estate
appraisals as | ||
provided in Section 10-10 of this Act or as defined by | ||
rule.
| ||
(7) Failing or refusing without good cause to exercise | ||
reasonable
diligence in developing, reporting,
or |
communicating an appraisal, as defined by this Act or by | ||
rule.
| ||
(8) Violating a provision of this Act or the rules | ||
adopted pursuant to
this Act.
| ||
(9) Having been disciplined by another state, the | ||
District of Columbia, a
territory, a foreign nation,
a | ||
governmental agency, or any other entity 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.
| ||
(10) Engaging in dishonorable, unethical, or | ||
unprofessional conduct of a
character likely to
deceive, | ||
defraud, or harm the public.
| ||
(11) Accepting an appraisal assignment when the | ||
employment
itself is contingent
upon the appraiser | ||
reporting a predetermined estimate, analysis, or opinion | ||
or
when the fee
to be paid is contingent upon the opinion, | ||
conclusion, or valuation reached or
upon the
consequences | ||
resulting from the appraisal assignment.
| ||
(12) Developing valuation conclusions based on the | ||
race, color, religion,
sex, national origin,
ancestry, | ||
age, marital status, family status, physical or mental | ||
disability, or
unfavorable
military discharge, as defined | ||
under the Illinois Human Rights Act, of the
prospective or
| ||
present owners or occupants of the area or property under |
appraisal.
| ||
(13) Violating the confidential nature of government | ||
records to which
the licensee gained
access through | ||
employment or engagement as an appraiser by a government | ||
agency.
| ||
(14) Being adjudicated liable in a civil proceeding on | ||
grounds of
fraud, misrepresentation, or
deceit. In a | ||
disciplinary proceeding based upon a finding of civil | ||
liability,
the appraiser shall
be afforded an opportunity | ||
to present mitigating and extenuating circumstances,
but | ||
may not
collaterally attack the civil adjudication.
| ||
(15) Being adjudicated liable in a civil proceeding for | ||
violation of
a state or federal fair
housing law.
| ||
(16) Engaging in misleading or untruthful advertising | ||
or using a trade
name or insignia of
membership in a real | ||
estate appraisal or real estate organization of
which the | ||
licensee is
not a member.
| ||
(17) Failing to fully cooperate with a Department | ||
investigation by knowingly
making a false
statement, | ||
submitting false or misleading information, or refusing to | ||
provide
complete information in response to written
| ||
interrogatories or a written
request for documentation | ||
within 30 days of the request.
| ||
(18) Failing to include within the certificate of | ||
appraisal for all
written appraisal reports the | ||
appraiser's license number and licensure title.
All |
appraisers providing significant contribution to the | ||
development and
reporting of an appraisal must be disclosed | ||
in the appraisal report. It is a
violation of this Act for | ||
an
appraiser to sign a report,
transmittal letter, or | ||
appraisal certification knowing that a person providing
a | ||
significant
contribution to the report has not been | ||
disclosed in the appraisal report.
| ||
(19) Violating the terms of a disciplinary order or | ||
consent to administrative supervision order. | ||
(20) Habitual or excessive use or addiction to alcohol, | ||
narcotics, stimulants, or any other chemical agent or drug | ||
that results in a licensee's inability to practice with | ||
reasonable judgment, skill, or safety. | ||
(21) A physical or mental illness or disability which | ||
results in the inability to practice under this Act with | ||
reasonable judgment, skill, or safety.
| ||
(22) Gross negligence in developing an appraisal or in | ||
communicating an appraisal or failing to observe one or | ||
more of the Uniform Standards of Professional Appraisal | ||
Practice. | ||
(23) A pattern of practice or other behavior that | ||
demonstrates incapacity or incompetence to practice under | ||
this Act. | ||
(24) Using or attempting to use the seal, certificate, | ||
or license of another as his or her own; falsely | ||
impersonating any duly licensed appraiser; using or |
attempting to use an inactive, expired, suspended, or | ||
revoked license; or aiding or abetting any of the | ||
foregoing. | ||
(25) Solicitation of professional services by using | ||
false, misleading, or deceptive advertising. | ||
(26) Making a material misstatement in furnishing | ||
information to the Department. | ||
(27) Failure to furnish information to the Department | ||
upon written request. | ||
(b) The Department
may reprimand suspend, revoke,
or refuse | ||
to issue or renew an education provider's
license, may | ||
reprimand, place on probation, or otherwise discipline
an | ||
education provider
and may suspend or revoke the course | ||
approval of any course offered by
an education provider and may | ||
impose an administrative fine
not to exceed $25,000 upon
an | ||
education provider,
for any of the following:
| ||
(1) Procuring or attempting to procure licensure by | ||
knowingly making a
false statement,
submitting false | ||
information, engaging in any form of fraud or
| ||
misrepresentation, or
refusing to
provide complete | ||
information in response to a question in an application for
| ||
licensure.
| ||
(2) Failing to comply with the covenants certified to | ||
on the application
for licensure as an education provider.
| ||
(3) Committing an act or omission involving | ||
dishonesty, fraud, or
misrepresentation or allowing any |
such act or omission by
any employee or contractor under | ||
the control of the provider.
| ||
(4) Engaging in misleading or untruthful advertising.
| ||
(5) Failing to retain competent instructors in | ||
accordance with rules
adopted
under this Act.
| ||
(6) Failing to meet the topic or time requirements for | ||
course approval as
the provider of a qualifying pre-license
| ||
curriculum course or a continuing education course.
| ||
(7) Failing to administer an approved course using the | ||
course materials,
syllabus, and examinations
submitted as | ||
the basis of the course approval.
| ||
(8) Failing to provide an appropriate classroom | ||
environment for
presentation of courses, with
| ||
consideration for student comfort, acoustics, lighting, | ||
seating, workspace, and
visual aid material.
| ||
(9) Failing to maintain student records in compliance | ||
with the rules
adopted under this Act.
| ||
(10) Failing to provide a certificate, transcript, or | ||
other student
record to the Department
or to a student
as | ||
may be required by rule.
| ||
(11) Failing to fully cooperate with an
investigation | ||
by the Department by knowingly
making a false
statement, | ||
submitting false or misleading information, or refusing to | ||
provide
complete information in response to written | ||
interrogatories or a written
request for documentation | ||
within 30 days of the request.
|
(c) In appropriate cases, the Department
may resolve a | ||
complaint against a licensee
through the issuance of a Consent | ||
to Administrative Supervision order.
A licensee subject to a | ||
Consent to Administrative Supervision order
shall be | ||
considered by the Department
as an active licensee in good | ||
standing. This order shall not be reported or
considered by the | ||
Department
to be a discipline
of the licensee. The records | ||
regarding an investigation and a Consent to
Administrative | ||
Supervision order
shall be considered confidential and shall | ||
not be released by the Department
except
as mandated by law.
A | ||
complainant shall be notified if his or her complaint has been | ||
resolved
by a Consent to
Administrative Supervision order.
| ||
(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11; | ||
97-877, eff. 8-2-12.)
| ||
(225 ILCS 458/20-5)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 20-5. Education providers.
| ||
(a) Beginning July 1, 2002, only education providers | ||
licensed or otherwise approved by the Department
may
provide | ||
the qualifying pre-license and continuing education courses | ||
required for licensure
under this Act.
| ||
(b) A person or entity seeking to be licensed as an | ||
education
provider under this Act
shall provide satisfactory | ||
evidence of the following:
| ||
(1) a sound financial base for establishing, |
promoting, and delivering the
necessary
courses;
| ||
(2) a sufficient number of qualified instructors;
| ||
(3) adequate support personnel to assist with | ||
administrative matters and
technical
assistance;
| ||
(4) a written policy dealing with procedures for | ||
management of grievances
and fee refunds;
| ||
(5) a qualified administrator, who is responsible for | ||
the
administration of the
education provider, courses, and | ||
the actions of the instructors; and
| ||
(6) any other requirements as provided by rule.
| ||
(c) All applicants for an education provider's license | ||
shall make initial
application to the Department
on forms | ||
provided by the Department
and pay the appropriate fee as
| ||
provided by rule. The term, expiration date, and renewal of an | ||
education
provider's license shall be established by rule.
| ||
(d) An education provider shall provide each successful | ||
course participant
with a certificate of
completion signed by | ||
the school administrator. The format and content of the
| ||
certificate shall be specified by rule.
| ||
(e) All education providers shall provide to the Department
| ||
a monthly roster of all
successful course
participants as | ||
provided by rule.
| ||
(Source: P.A. 96-844, eff. 12-23-09 .)
| ||
(225 ILCS 458/20-10)
| ||
(Section scheduled to be repealed on January 1, 2022)
|
Sec. 20-10. Course approval.
| ||
(a) Only courses offered by licensed education providers | ||
and approved
by the Department, courses approved by the AQB, or | ||
courses approved by jurisdictions regulated by the Appraisal | ||
Subcommittee
shall be used to meet the requirements of this Act | ||
and rules.
| ||
(b) An education provider licensed under this Act may | ||
submit courses to the Department
for approval.
The criteria, | ||
requirements, and fees for courses shall be established
by rule | ||
in accordance with
this Act , Title XI, and the criteria | ||
established by the AQB.
| ||
(c) For each course approved, the Department
shall issue a | ||
license to the education
provider. The term, expiration date, | ||
and renewal of a course approval shall
be
established by rule.
| ||
(d) An education provider must use an instructor for each | ||
course approved by the Department who (i) holds a valid real | ||
estate appraisal license in good standing as a State certified | ||
general real estate appraiser or a State certified residential | ||
real estate appraiser in Illinois or any other jurisdiction | ||
monitored regulated by the Appraisal Subcommittee, (ii) holds a | ||
valid teaching certificate issued by the State of Illinois, | ||
(iii) is a faculty member in good standing with an accredited | ||
college or university or community college, or (iv) is an | ||
approved appraisal instructor from an appraisal organization | ||
that is a member of the Appraisal Foundation. | ||
(Source: P.A. 96-844, eff. 12-23-09 .)
|
(225 ILCS 458/25-10)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 25-10. Real Estate Appraisal Administration and | ||
Disciplinary Board; appointment.
| ||
(a) There is hereby created the Real Estate Appraisal | ||
Administration and Disciplinary Board. The Board
shall be | ||
composed of 10 persons appointed by the Governor, plus the | ||
Coordinator
of
the Real Estate Appraisal Division. Members | ||
shall be appointed to the Board
subject to the following | ||
conditions:
| ||
(1) All appointed members shall have been residents and | ||
citizens of this
State for
at least 5 years prior
to the | ||
date of appointment.
| ||
(2) The appointed membership of the Board should | ||
reasonably reflect the
geographic
distribution of the
| ||
population of the State.
| ||
(3) Four appointed members shall have been actively | ||
engaged and currently
licensed as
State
certified general | ||
real estate appraisers for a period of not less than 5
| ||
years.
| ||
(4)
Two appointed members shall have been actively | ||
engaged and currently
licensed as
State
certified | ||
residential real estate appraisers for a period of
not less | ||
than 5 years.
| ||
(5)
Two appointed members shall hold a valid license as |
a
real estate
broker for at least 10 years prior to the | ||
date of the appointment, one of whom
shall hold a valid
| ||
State certified general real estate appraiser license | ||
issued under this Act or a predecessor Act for a period of | ||
at
least 5 years prior to the appointment and one of whom | ||
shall hold a valid State certified residential real estate | ||
appraiser license issued under this Act or a predecessor | ||
Act for a period of at
least 5 years prior to the | ||
appointment.
| ||
(6) One appointed member shall be a representative of a | ||
financial
institution, as evidenced by his or her | ||
employment with a financial
institution.
| ||
(7) One appointed member shall represent the interests | ||
of the general
public. This member or his or her spouse | ||
shall not be licensed under this Act
nor be employed by or | ||
have any interest in an appraisal business, appraisal | ||
management company, real estate
brokerage business, or a | ||
financial institution.
| ||
In making appointments as
provided in paragraphs (3) and | ||
(4) of this subsection, the Governor shall
give due | ||
consideration to recommendations by members and organizations
| ||
representing the profession.
| ||
In making the appointments as
provided in paragraph (5) of | ||
this subsection, the Governor shall give
due consideration to | ||
the recommendations by members and organizations
representing | ||
the real estate industry.
|
In making the appointment as provided
in paragraph (6) of | ||
this subsection, the Governor
shall give due consideration to | ||
the recommendations by members and
organizations representing | ||
financial institutions.
| ||
(b) The term for members of the Board shall be 4 years, and | ||
each member shall serve until his or her successor is appointed | ||
and qualified. No member shall serve more than 10 years in a | ||
lifetime.
| ||
(c) The Governor may terminate the appointment of a member | ||
for cause that,
in
the opinion of the Governor, reasonably | ||
justifies the termination. Cause for
termination may include, | ||
without limitation, misconduct, incapacity, neglect of
duty, | ||
or missing 4 Board meetings during any one calendar year.
| ||
(d) A majority of the Board members shall constitute a
| ||
quorum. A vacancy in the membership of the Board shall not | ||
impair the right of
a quorum to exercise all of the rights and | ||
perform all of the duties of the
Board.
| ||
(e) The Board shall meet at least quarterly and may be | ||
convened
by the Chairperson, Vice-Chairperson, or 3 members of | ||
the Board upon 10 days
written notice.
| ||
(f) The Board shall, annually at the first meeting of the | ||
fiscal year,
elect a Chairperson and Vice-Chairperson from its
| ||
members. The Chairperson shall preside over the meetings and | ||
shall coordinate
with the Coordinator
in developing and | ||
distributing an agenda for each meeting. In the absence of
the | ||
Chairperson, the Vice-Chairperson shall preside over the |
meeting.
| ||
(g) The Coordinator
of the Real Estate Appraisal Division | ||
shall serve as
a member of the Board without vote.
| ||
(h) The Board shall advise and make recommendations to
the | ||
Department
on the education and experience qualifications of | ||
any applicant for initial licensure as a State certified | ||
general real estate appraiser or a State certified residential | ||
real estate appraiser. The Department shall not make any | ||
decisions concerning education or experience qualifications of | ||
an applicant for initial licensure as a State certified general | ||
real estate appraiser or a State certified residential real | ||
estate appraiser without having first received the advice and | ||
recommendation of the Board and
shall give due consideration to | ||
all
such advice and recommendations; however, if the Board does | ||
not render advice or make a recommendation within a reasonable | ||
amount of time, then the Department may render a decision.
| ||
(i) Except as provided in Section 15-17 of this Act, the
| ||
Board shall hear and make recommendations to the
Secretary
on
| ||
disciplinary matters
that require a formal evidentiary | ||
hearing. The Secretary
shall give due
consideration to the
| ||
recommendations of the Board involving discipline and | ||
questions involving
standards of professional
conduct of | ||
licensees.
| ||
(j) The Department shall seek and the Board shall provide
| ||
recommendations to the Department
consistent with the
| ||
provisions
of this Act and for the administration and |
enforcement of all
rules adopted
pursuant to this Act. The | ||
Department
shall give due consideration to
such
| ||
recommendations
prior to adopting rules.
| ||
(k) The Department shall seek and the Board shall provide
| ||
recommendations to the Department
on the approval of all | ||
courses
submitted to the Department
pursuant to this Act and | ||
the rules adopted pursuant to this Act. The Department shall | ||
not approve any courses without having first received the | ||
recommendation of the Board and
shall
give due consideration to | ||
such
recommendations
prior to approving and licensing courses; | ||
however, if the Board does not make a recommendation within a | ||
reasonable amount of time, then the Department may approve | ||
courses.
| ||
(l) Each voting member of the Board shall receive a per | ||
diem stipend in an
amount
to be determined by the Secretary. | ||
Each member shall be paid his or her necessary expenses while
| ||
engaged in the
performance of his or her duties.
| ||
(m) Members of the Board shall be immune from suit in an | ||
action based upon
any disciplinary
proceedings or other acts | ||
performed in good faith as members of the Board.
| ||
(n) If the Department disagrees with any advice or | ||
recommendation provided by the Board under this Section to the | ||
Secretary or the Department, then notice of such disagreement | ||
must be provided to the Board by the Department.
| ||
(o) Upon resolution adopted at any Board meeting, the | ||
exercise of any Board function, power, or duty enumerated in |
this Section or in subsection (d) of Section 15-10 of this Act | ||
may be suspended. The exercise of any suspended function, | ||
power, or duty of the Board may be reinstated by a resolution | ||
adopted at a subsequent Board meeting. Any resolution adopted | ||
pursuant to this Section shall take effect immediately.
| ||
(Source: P.A. 96-844, eff. 12-23-09 .)
| ||
(225 ILCS 458/25-15)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 25-15. Coordinator
of Real Estate Appraisal; | ||
appointment;
duties. The Secretary shall appoint, subject to | ||
the Personnel Code, a Coordinator of Real Estate Appraisal. In | ||
appointing the Coordinator, the Secretary shall give due | ||
consideration to recommendations made by members, | ||
organizations, and associations of the real estate appraisal | ||
industry. On or after January 1, 2010, the Coordinator must | ||
hold a current, valid State certified general real estate | ||
appraiser license . The Coordinator shall not practice or a | ||
State certified residential real estate appraiser license, | ||
which shall be surrendered to the Department during the term of | ||
his or her appointment. The Coordinator must take the 30-hour | ||
National Instructors Course on Uniform Standards of | ||
Professional Appraisal Practice. The Coordinator Coordinator's | ||
license shall be returned in the same status as it was on the | ||
date of surrender, credited with all fees that came due during | ||
his or her employment.
The Coordinator
shall:
|
(1) serve as a member of the Real Estate Appraisal | ||
Administration and Disciplinary Board without vote;
| ||
(2) be the direct liaison between the Department, the | ||
profession, and the real
estate appraisal industry
| ||
organizations and associations;
| ||
(3) prepare and circulate to licensees such | ||
educational and informational
material as the Department
| ||
deems necessary for providing guidance or assistance to | ||
licensees;
| ||
(4) appoint necessary committees to assist in the | ||
performance of the
functions and duties
of the Department
| ||
under this Act;
| ||
(5) (blank); and | ||
(6) be authorized to investigate and determine the | ||
facts of a complaint; the coordinator may interview | ||
witnesses, the complainant, and any licensees involved in | ||
the alleged matter and make a recommendation as to the | ||
findings of fact.
| ||
(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
|