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Public Act 093-0957 |
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AN ACT concerning professional 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, 5-30, 5-50, 5-70, and 20-20 and by | ||||
adding Section 15-75 as follows:
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(225 ILCS 454/1-10)
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(Section scheduled to be repealed on January 1, 2010)
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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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"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
OBRE 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 OBRE.
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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 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 | ||
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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"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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"Client" means a person who is being represented by a | ||
licensee.
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"Commissioner" means the Commissioner of Banks and Real | ||
Estate or a person
authorized by the Commissioner, the Office | ||
of Banks and Real Estate Act, or
this Act to act in the | ||
Commissioner's stead.
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"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 | ||
OBRE as a school
for continuing education in accordance with | ||
Section 30-15 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 OBRE.
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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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"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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"Director" means the Director of the Real Estate Division, | ||
OBRE.
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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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"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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"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 OBRE 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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"OBRE" means the Office of Banks and Real Estate.
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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 OBRE 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 OBRE | ||
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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"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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"Real Estate Administration and Disciplinary Board" or | ||
"Board" means the
Real Estate Administration and Disciplinary | ||
Board created by Section 25-10 of
this Act.
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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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"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. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00; | ||
91-603, eff.
1-1-00; 91-702, eff. 5-12-00; 92-217, eff. | ||
8-2-01.)
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(225 ILCS 454/5-30)
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(Section scheduled to be repealed on January 1, 2010)
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Sec. 5-30. Education requirements to obtain an original | ||
broker or
salesperson
license.
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(a) All applicants for a broker's license, except | ||
applicants who meet the
criteria set forth in
subsection (c) of | ||
this Section shall (i) give satisfactory evidence of having
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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,
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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.
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(b) All applicants for a salesperson's license, except | ||
applicants who meet
the criteria set forth in
subsection (c) of | ||
this Section shall give satisfactory evidence that they have
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completed at least 45 hours of
instruction in real estate | ||
courses approved by the Advisory Council.
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(c) The requirements specified in subsections (a) and (b) | ||
of this Section do
not apply to applicants who :
(1) are | ||
currently admitted to practice law by the Supreme Court of
| ||
Illinois
and are
currently in active standing ; or
(2) show | ||
evidence of receiving a baccalaureate degree including courses
| ||
involving real
estate or related material from a college or | ||
university approved by the
Advisory Council .
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(d) A minimum of 15 of the required hours of pre-license | ||
education shall be
in the areas of
Article 15 of this Act, | ||
disclosure and environmental issues, or any other
currently | ||
topical areas that are
determined by the Advisory Council.
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(Source: P.A. 91-245, eff. 12-31-99.)
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(225 ILCS 454/5-50)
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(Section scheduled to be repealed on January 1, 2010)
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Sec. 5-50. Expiration date and renewal period of broker, | ||
salesperson, or
leasing agent license; sponsoring broker;
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register of licensees; pocket card.
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(a) The expiration date and renewal period for each license | ||
issued under
this Act shall be set by
rule. Except as otherwise | ||
provided in Section 5-55 of this Act, the holder of
a
license | ||
may renew
the license within 90 days preceding the expiration | ||
date thereof by paying the
fees specified by
rule. Upon written | ||
request from the sponsoring broker, OBRE shall prepare and
mail | ||
to the
sponsoring broker a listing of licensees under this Act | ||
who, according to the
records of OBRE, are
sponsored by that | ||
broker. Every licensee associated with or employed by a
broker | ||
whose license is
revoked, suspended, terminated, or expired | ||
shall be considered as inoperative
until such time as the
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sponsoring broker's license is reinstated or renewed, or the | ||
licensee changes
employment as set
forth in subsection (c) of | ||
Section 5-40 of this Act.
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(b) OBRE shall establish and maintain a register of all | ||
persons currently
licensed by the State
and shall issue and |
prescribe a form of pocket card. Upon payment by a
licensee of | ||
the appropriate
fee as prescribed by rule for engagement in the | ||
activity for which the licensee
is qualified and holds
a | ||
license for the current period, OBRE shall issue a pocket card | ||
to the
licensee. The pocket card
shall be verification that the | ||
required fee for the current period has been
paid and shall | ||
indicate that
the person named thereon is licensed for the | ||
current renewal period as a
broker, salesperson, or
leasing | ||
agent as the case may be. The pocket card shall further | ||
indicate that
the person named
thereon is authorized by OBRE to | ||
engage in the licensed activity appropriate
for his or her | ||
status
(broker, salesperson, or leasing agent). Each licensee | ||
shall carry on his or
her person his or her
pocket card or, if | ||
such pocket card has not yet been issued, a properly issued
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sponsor card when
engaging in any licensed activity and shall | ||
display the same on demand.
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(c) Any person licensed as a broker shall be entitled at | ||
any renewal date to change his or her license status from | ||
broker to salesperson.
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(Source: P.A. 91-245, eff. 12-31-99.)
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(225 ILCS 454/5-70)
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(Section scheduled to be repealed on January 1, 2010)
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Sec. 5-70. Continuing education requirement; broker or | ||
salesperson.
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(a) The requirements of this Section apply to all licensees | ||
who have
had a license for less than 15 years as of January 1, | ||
1992 .
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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 real
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estate broker or real
estate salesperson must successfully | ||
complete real estate continuing education
courses approved by
| ||
the Advisory Council at the rate of 6 hours per year or its | ||
equivalent. In addition, beginning with the pre-renewal period | ||
for broker licensees that begins after the effective date of | ||
this amendatory Act of the 93rd General Assembly, to renew a |
real estate broker's license, the licensee must successfully | ||
complete a 6-hour broker management continuing education | ||
course approved by OBRE. 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 OBRE. Beginning on the first day of the | ||
pre-renewal period for broker licensees that begins after the | ||
effective date of this amendatory Act of the 93rd General | ||
Assembly, the 6-hour broker management continuing education | ||
course must be completed by all persons receiving their initial | ||
broker's license within 180 days after the date of initial | ||
licensure as a broker. No
license may be renewed
except upon | ||
the successful completion of the required courses or their
| ||
equivalent or upon a waiver
of those requirements for good | ||
cause shown as determined by the Commissioner
with the
| ||
recommendation of the Advisory Council.
The requirements of | ||
this Article are applicable to all brokers and salespersons
| ||
except those brokers
and salespersons who, during the | ||
pre-renewal period:
| ||
(1) serve in the armed services of the United States;
| ||
(2) serve as an elected State or federal official;
| ||
(3) serve as a full-time employee of OBRE; or
| ||
(4) are admitted to practice law pursuant to Illinois | ||
Supreme Court rule.
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(c) A person who is issued an initial license as a real | ||
estate salesperson
less than one year prior
to the expiration | ||
date of that license shall not be required to complete
| ||
continuing education as a
condition of license renewal. A | ||
person who is issued an initial license as a
real estate broker | ||
less
than one year prior to the expiration date of that license | ||
and who has not been
licensed as a real estate
salesperson | ||
during the pre-renewal period shall not be required to complete
| ||
continuing education as
a condition of license renewal. A
| ||
person receiving an initial license as a real estate broker
| ||
during the 90 days before the broker renewal date shall not be
| ||
required to complete the broker management continuing
|
education course provided for in subsection (b) of this
Section | ||
as a condition of initial license renewal.
| ||
(d) The continuing education requirement for salespersons | ||
and brokers shall
consist of a core
curriculum and an elective | ||
curriculum, to be established by the Advisory
Council. In | ||
meeting the
continuing education requirements of this Act, at | ||
least 3 hours per year or
their equivalent 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 OBRE policy that the Advisory Council deems appropriate,
| ||
and any other
areas that the Advisory Council deems timely and | ||
applicable in order to prevent
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 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.
| ||
(e) The subject areas of continuing education courses | ||
approved by the
Advisory Council may
include without limitation | ||
the following:
| ||
(1) license law and escrow;
| ||
(2) antitrust;
| ||
(3) fair housing;
| ||
(4) agency;
| ||
(5) appraisal;
| ||
(6) property management;
| ||
(7) residential brokerage;
| ||
(8) farm property management;
| ||
(9) rights and duties of sellers, buyers, and brokers;
| ||
(10) commercial brokerage and leasing; and
| ||
(11) real estate financing.
| ||
(f) In lieu of credit for those courses listed in | ||
subsection (e) of this
Section, credit may be
earned for |
serving as a licensed instructor in an approved course of | ||
continuing
education. The
amount of credit earned for teaching | ||
a course shall be the amount of continuing
education credit for
| ||
which the course is approved for licensees taking the course.
| ||
(g) Credit hours may be earned for self-study programs | ||
approved by the
Advisory Council.
| ||
(h) A broker or salesperson may earn credit for a specific | ||
continuing
education course only
once during the prerenewal | ||
period.
| ||
(i) No more than 6 hours of continuing education credit may | ||
be earned in one
calendar day.
| ||
(j) To promote the offering of a uniform and consistent | ||
course content, the OBRE 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 OBRE may contract for the | ||
development of the 6-hour broker management continuing | ||
education course with an outside vendor and, if the course is | ||
developed in this manner, the OBRE shall license the use of | ||
that course to all approved continuing education providers who | ||
wish to provide the course.
| ||
(Source: P.A. 91-245, eff. 12-31-99.)
| ||
(225 ILCS 454/15-75 new) | ||
(Section scheduled to be repealed on January 1, 2010) | ||
Sec. 15-75. Exclusive brokerage agreements. All exclusive
| ||
brokerage agreements must specify that the sponsoring broker, | ||
through one or more sponsored licensees, must provide, at a | ||
minimum, the following services: | ||
(1) accept delivery of and present to the client offers | ||
and counteroffers to buy, sell, or lease the client's
| ||
property or the property the client seeks to purchase or | ||
lease; | ||
(2) assist the client in developing, communicating, | ||
negotiating, and presenting offers, counteroffers, and
| ||
notices that relate to the offers and counteroffers until a |
lease or purchase agreement is signed and all contingencies
| ||
are satisfied or waived; and | ||
(3) answer the client's questions relating to the | ||
offers, counteroffers, notices, and contingencies.
| ||
(225 ILCS 454/20-20)
| ||
(Section scheduled to be repealed on January 1, 2010)
| ||
Sec. 20-20. Disciplinary actions; causes. OBRE may refuse | ||
to issue or renew a license, may place on probation, suspend,
| ||
or
revoke any
license, or may censure, reprimand, or otherwise | ||
discipline or impose a civil
fine not to exceed
$25,000 upon | ||
any licensee hereunder for any one or any combination of the
| ||
following causes:
| ||
(a) When the applicant or licensee has, by false or | ||
fraudulent
representation,
obtained or sought to obtain a | ||
license.
| ||
(b) When the applicant or licensee has been convicted of | ||
any crime, an
essential element of which is dishonesty or fraud | ||
or larceny, embezzlement,
or obtaining money, property, or | ||
credit by false pretenses or by means of a
confidence
game, has | ||
been convicted in this or another state of a crime that is a | ||
felony
under
the laws of this State, or has been convicted of a | ||
felony in a federal court.
| ||
(c) When the applicant or licensee has been adjudged to be | ||
a person under
legal
disability or subject to involuntary | ||
admission or to meet the standard for
judicial
admission as | ||
provided in the Mental Health and Developmental Disabilities | ||
Code.
| ||
(d) When the licensee performs or attempts to perform any | ||
act as a broker
or
salesperson 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.
| ||
(e) Discipline of a licensee 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 discipline set | ||
forth in this Act, in which
case the
only issue will be whether | ||
one of the grounds for that discipline is the same
or
| ||
equivalent to one of the grounds for discipline under this Act.
| ||
(f) When the applicant or licensee has engaged in real | ||
estate activity
without a
license or after the licensee's | ||
license was expired or while the license was
inoperative.
| ||
(g) When the applicant or licensee attempts to subvert or | ||
cheat on the Real
Estate License Exam or continuing education | ||
exam or aids and abets an applicant
to
subvert or cheat on the | ||
Real Estate License Exam or continuing education exam
| ||
administered pursuant to this Act.
| ||
(h) When the licensee in performing, attempting to perform, | ||
or pretending to
perform any act as a broker, salesperson, or | ||
leasing agent or when the
licensee in
handling his or her own | ||
property, whether held by deed, option, or otherwise,
is
found
| ||
guilty of:
| ||
(1) Making any substantial misrepresentation or | ||
untruthful advertising.
| ||
(2) Making any false promises of a character likely to | ||
influence,
persuade,
or induce.
| ||
(3) Pursuing a continued and flagrant course of | ||
misrepresentation or the
making
of false promises through | ||
licensees, employees, agents, advertising, or
otherwise.
| ||
(4) 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.
| ||
(5) Acting for more than one party in a transaction | ||
without providing
written
notice to all parties for whom | ||
the licensee acts.
| ||
(6) Representing or attempting to represent a broker | ||
other than the
sponsoring broker.
| ||
(7) Failure to account for or to remit any moneys or | ||
documents coming into
his or her possession that belong to | ||
others.
|
(8) Failure to maintain and deposit in a special | ||
account, separate and
apart from
personal and other | ||
business accounts, all escrow moneys belonging to others
| ||
entrusted to a licensee
while acting as a 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
| ||
consummated or terminated, except to the extent that the | ||
moneys, or any part
thereof, shall be
disbursed prior to | ||
the consummation or termination in accordance with (i) the
| ||
written direction of
the principals to the transaction or | ||
their duly authorized agents, (ii)
directions providing | ||
for the
release, payment, or distribution of escrow moneys | ||
contained in any written
contract signed by the
principals | ||
to the transaction or their duly authorized agents,
or | ||
(iii)
pursuant to an order of a court of competent
| ||
jurisdiction.
The account
shall be noninterest
bearing, | ||
unless the character of the deposit is such that payment of | ||
interest
thereon is otherwise
required by law or unless the | ||
principals to the transaction specifically
require, in | ||
writing, that the
deposit be placed in an interest bearing | ||
account.
| ||
(9) Failure to make available to the real estate | ||
enforcement personnel of
OBRE
during normal business hours | ||
all escrow records and related documents
maintained in | ||
connection
with the practice of real estate within 24 hours | ||
of a request for those
documents by OBRE personnel.
| ||
(10) Failing to furnish copies upon request of all | ||
documents relating to a
real
estate transaction to all | ||
parties executing them.
| ||
(11) Failure of a sponsoring broker to timely provide | ||
information, sponsor
cards,
or termination of licenses to | ||
OBRE.
| ||
(12) Engaging in dishonorable, unethical, or | ||
unprofessional conduct of a
character
likely to deceive, | ||
defraud, or harm the public.
|
(13) Commingling the money or property of others with | ||
his or her own.
| ||
(14) Employing any person on a purely temporary or | ||
single deal basis as a
means
of evading the law regarding | ||
payment of commission to nonlicensees on some
contemplated
| ||
transactions.
| ||
(15) 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
| ||
participation therein and control
thereof by the broker.
| ||
(16) Any other conduct, whether of the same or a | ||
different character from
that
specified in this Section, | ||
that constitutes dishonest dealing.
| ||
(17) Displaying a "for rent" or "for sale" sign on any | ||
property without
the written
consent of an owner or his or | ||
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.
| ||
(18) Failing to provide information requested by OBRE, | ||
within 30 days of
the
request, either as the result of a | ||
formal or informal complaint to OBRE or as a
result of a | ||
random
audit conducted by OBRE, which would indicate a | ||
violation of this Act.
| ||
(19) Advertising by means of a blind advertisement, | ||
except as otherwise
permitted in Section 10-30 of this Act.
| ||
(20) Offering guaranteed sales plans, as defined in | ||
clause (A) of
this subdivision (20), except to
the extent | ||
hereinafter set forth:
| ||
(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 by the
terms of which a licensee agrees to | ||
purchase a property of the seller within a
specified | ||
period of time
at a specific price in the event the | ||
property is not sold in accordance with
the terms of a | ||
listing
contract between the sponsoring broker and the |
seller or on other terms
acceptable to the
seller.
| ||
(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.
| ||
(C) A licensee offering a guaranteed sales plan | ||
shall provide to the
party
to whom the plan is offered | ||
evidence of sufficient financial resources to
satisfy | ||
the commitment to
purchase undertaken by the broker in | ||
the plan.
| ||
(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.
| ||
(E) 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.
| ||
(21) Influencing or attempting to influence, by any | ||
words or acts, a
prospective
seller, purchaser, occupant, | ||
landlord, or tenant of real estate, in connection
with | ||
viewing, buying, or
leasing real estate, so as to promote | ||
or tend to promote the continuance
or maintenance of
| ||
racially and religiously segregated housing or so as to | ||
retard, obstruct, or
discourage racially
integrated | ||
housing on or in any street, block, neighborhood, or | ||
community.
| ||
(22) Engaging in any act that constitutes a violation | ||
of any provision of
Article 3 of the Illinois Human Rights | ||
Act, whether or not a complaint has
been filed with or
| ||
adjudicated by the Human Rights Commission.
| ||
(23) Inducing any party to a contract of sale or lease | ||
or brokerage
agreement to
break the contract of sale or | ||
lease or brokerage agreement for the purpose of
|
substituting, in lieu
thereof, a new contract for sale or | ||
lease or brokerage agreement with a third
party.
| ||
(24) Negotiating a sale, exchange, or lease of real | ||
estate directly with
any person
if the licensee knows that | ||
the person has a written exclusive brokerage
agreement with | ||
another
broker, unless specifically authorized by that | ||
broker.
| ||
(25) 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.
| ||
(26) 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 (26), "free" | ||
includes terms such as "award", "prize", "no charge",
"free | ||
of charge",
"without charge", and similar words or phrases | ||
that reasonably lead a person to
believe that 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.
| ||
(27) 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 OBRE to enforce
those Acts.
| ||
(28) Violating the terms of a disciplinary order
issued | ||
by OBRE.
| ||
(29) Paying compensation in violation of Article 10 of | ||
this Act.
| ||
(30) 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.
| ||
(31) Disregarding or violating any provision of this | ||
Act or the published
rules
promulgated by OBRE to enforce | ||
this Act or aiding or abetting any individual,
partnership, | ||
registered limited liability partnership, limited | ||
liability
company, or corporation in
disregarding any | ||
provision of this Act or the published rules promulgated by
| ||
OBRE
to enforce this Act.
| ||
(32) Failing to provide the minimum services required | ||
by Section 15-75 of this Act when acting under an exclusive | ||
brokerage agreement.
| ||
(Source: P.A. 91-245, eff. 12-31-99.)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
|