Public Act 90-0352 of the 90th General Assembly

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Public Act 90-0352

SB897 Enrolled                                 LRB9003359DPcc

    AN ACT to amend the Real Estate License Act  of  1983  by
changing Section 18.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The  Real  Estate  License  Act  of  1983  is
amended by changing Section 18 as follows:

    (225 ILCS 455/18) (from Ch. 111, par. 5818)
    Sec.  18.  The Office of Banks and Real Estate may refuse
to issue or renew a license, may place on probation,  suspend
or  revoke  any  license,  or may reprimand or impose a civil
penalty not to exceed $10,000 upon any licensee hereunder for
any one or any combination of the following causes:
    (a)  Where the applicant or licensee  has,  by  false  or
fraudulent  representation,  obtained  or  sought to obtain a
    (b)  Where the applicant or licensee has  been  convicted
of  any crime, an essential element of which is dishonesty or
fraud or larceny, embezzlement, 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  which
is  a  felony  under  the  laws  of  this  State  or has been
convicted of a felony in a federal court.
    (c)  Where 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, as now or hereafter amended.
    (d)  Where  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 such establishment.
    (e)  Discipline   by   another  state,  the  District  of
Columbia, territory, or foreign nation of a  licensee  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.
    (f)  Where  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)  Where  the applicant or licensee attempts to subvert
or cheat on the Real Estate License Exam, or aids  and  abets
an  applicant  to subvert or cheat on the Real Estate License
Exam administered pursuant to this Act.
    (h)  Where the licensee in performing  or  attempting  to
perform  or  pretending  to  perform  any  act as a broker or
salesperson, or where such  licensee,  in  handling  his  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
    agents, salespersons or 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
         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 employer;
         7.  Failure to account for or to remit any moneys or
    documents  coming  into  their possession which belong to
         8.  Failure to maintain and  deposit  in  a  special
    account,  separate  and  apart  from  personal  and other
    business accounts, all escrow monies 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  monies  on
    deposit  in  such  account  until  the  transactions  are
    consummated or terminated, except to the extent that such
    monies,  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,  or  (ii)
    directions   providing   for  the  release,  payment,  or
    distribution of escrow monies contained  in  any  written
    contract  signed  by the principals to the transaction or
    their duly authorized  agents.   Such  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 the Office  of  Banks  and  Real
    Estate  during  normal  business hours all escrow records
    and related documents maintained in connection  with  the
    practice of real estate;
         10.  Failing  to  furnish copies upon request of all
    documents relating to a real estate  transaction  to  all
    parties executing them;
         11.  Paying  a  commission or valuable consideration
    to any person for acts or services performed in violation
    of this Act;
         12.  Having     demonstrated     unworthiness     or
    incompetency to act as a broker or  salesperson  in  such
    manner as to endanger the interest of the public;
         13.  Commingling  the  money  or  property of others
    with his 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 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
    which constitutes dishonest dealing;
         17.  Displaying a "for rent" or "for sale"  sign  on
    any  property  without the written consent of an owner or
    his 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 authorized agent;
         18.  Failing to provide information requested by the
    Office of Banks and Real Estate, within 30  days  of  the
    request,  either  as  the  result of a formal or informal
    complaint to the Office of Banks and Real Estate or as  a
    result of a random audit conducted by the Office of Banks
    and Real Estate, which would indicate a violation of this
         19.  Disregarding or violating any provision of this
    Act, or the published rules or regulations promulgated by
    the  Office of Banks and Real Estate to enforce this Act,
    or  aiding  or  abetting  any  individual,   partnership,
    limited liability company, or corporation in disregarding
    any  provision  of  this  Act,  or the published rules or
    regulations promulgated by the Office of Banks  and  Real
    Estate to enforce this Act;
         20.  Advertising    any   property   for   sale   or
    advertising any transaction  of  any  kind  or  character
    relating  to  the  sale  of property by whatsoever means,
    without clearly disclosing in or on such advertising  one
    of  the  following:   the name of the firm with which the
    licensee is associated, if a sole broker, evidence of the
    broker's occupation, or a name with respect to which  the
    broker  has  complied with the requirements of "An Act in
    relation to the use of an assumed name in the conduct  or
    transaction of business in this State", approved July 17,
    1941, as amended, whether such advertising is done by the
    broker  or  by  any salesperson or broker employed by the
         21.  "Offering guaranteed sales plans" as defined in
    subparagraph (A) except to  the  extent  hereinafter  set
              (A)  A  "guaranteed  sales  plan"  is  any real
         estate purchase  or  sales  plan  whereby  a  broker
         enters  into  a conditional or unconditional written
         contract with a seller  by  the  terms  of  which  a
         broker  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 broker and the seller or on other terms
         acceptable to the seller;
              (B)  A  broker  offering  a  "guaranteed  sales
         plan" shall provide the details  and  conditions  of
         such  plan  in writing to the party to whom the plan
         is offered;
              (C)  A  broker  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 broker 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  such  agreement  with  the  seller  provides
              (E)  Any broker  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  penalty
         payable  to  the  party injured by the default in an
         amount of up to $10,000.
         22.  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  of  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;
         23.  Engaging   in   any  act  which  constitutes  a
    violation of Section 3-102, 3-103, 3-104 or 3-105 of  the
    Illinois Human Rights Act, whether or not a complaint has
    been  filed  with  or  adjudicated  by  the  Human Rights
         24.  Inducing any party to a  contract  of  sale  or
    listing  agreement  to  break  such a contract of sale or
    listing agreement for the  purpose  of  substituting,  in
    lieu   thereof,  a  new  contract  for  sale  or  listing
    agreement with a third party.
         25.  Negotiating a sale, exchange or lease  of  real
    property   directly  with  an  owner  or  lessor  without
    authority from the listing broker if the  licensee  knows
    that  the owner or lessor has a written exclusive listing
    agreement covering the property with another broker.
         26.  Where a licensee is also an attorney, acting as
    the attorney for either the buyer or the  seller  in  the
    same  transaction in which such licensee is acting or has
    acted as a broker or salesperson.
         27.  Advertising or offering merchandise or services
    as free if any conditions or  obligations  necessary  for
    receiving  such merchandise or services are not disclosed
    in the same advertisement or offer.  Such  conditions  or
    obligations   include,   but  are  not  limited  to,  the
    requirement  that  the  recipient  attend  a  promotional
    activity or visit a real estate site.  As  used  in  this
    paragraph  27,  "free"  includes  terms  such as "award",
    "prize", "no charge," "free of charge," "without  charge"
    and  similar  words  or  phrases  which reasonably lead a
    person to believe  that  he  may  receive,  or  has  been
    selected  to  receive,  something  of  value, without any
    conditions or obligations on the part of the recipient.
         28.  Disregarding or violating any provision of  the
    Illinois  Real Estate Time-Share Act, enacted by the 84th
    General Assembly, or the published rules  or  regulations
    promulgated  by  the  Office  of Banks and Real Estate to
    enforce that Act.
         29.  A finding that the licensee  has  violated  the
    terms  of  the disciplinary order issued by the Office of
    Banks and Real Estate.
         30.  Paying  fees  or  commissions  directly  to   a
    licensee employed by another broker.
         31.  Requiring a party to a transaction who is not a
    client of the licensee, as defined in Article 4, to allow
    the licensee to retain a portion of the escrow monies for
    payment  of  the  licensee's  commission or expenses as a
    condition for release of the escrow monies to that party.
(Source: P.A. 88-683, eff. 1-24-95; 89-508, eff. 7-3-96.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

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