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90_HB2688eng
225 ILCS 410/3-7 from Ch. 111, par. 1703-7
Amends the Barber, Cosmetology, Esthetics, and Nail
Technology Act of 1985 to make a technical change to a
Section concerning cosmetology licensure, renewal, continuing
education, and military service.
LRB9009844LDpk
HB2688 Engrossed LRB9009844LDpk
1 AN ACT concerning the regulation of professions.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 ARTICLE 1. GENERAL PROVISIONS
5 Section 1-1. Short title; Act supersedes Real Estate
6 License Act of 1983. This Act shall be known and may be cited
7 as the Real Estate License Act of 1999, and it shall
8 supersede the Real Estate License Act of 1983 repealed by
9 this Act.
10 Section 1-5. Legislative intent. The intent of the
11 General Assembly in enacting this statute is to evaluate the
12 competency of persons engaged in the real estate business and
13 to regulate this business for the protection of the public.
14 Section 1-10. Definitions. In this Act, unless the
15 context otherwise requires:
16 "Act" means the Real Estate License Act of 1999.
17 "Advisory Council" means the Real Estate Education
18 Advisory Council created under Section 30-10 of this Act.
19 "Agency" means a relationship in which a real estate
20 broker or licensee, whether directly or through an affiliated
21 licensee, represents a consumer by the consumer's consent,
22 whether express or implied, in a real property transaction.
23 "Applicant" means any person, as defined in this Section,
24 who applies to OBRE for a valid license as a real estate
25 broker, real estate salesperson, or leasing agent.
26 "Blind advertisement" means any real estate advertisement
27 that does not include the sponsoring broker's business name
28 and that is used by any licensee regarding the sale or lease
29 of real estate, including his or her own, licensed
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1 activities, or the hiring of any licensee under this Act.
2 The broker's business name in the case of a franchise shall
3 include the franchise affiliation as well as the name of the
4 individual firm.
5 "Board" means the Real Estate Administration and
6 Disciplinary Board of OBRE.
7 "Branch office" means a sponsoring broker's office other
8 than the sponsoring broker's principal office.
9 "Broker" means an individual, partnership, limited
10 liability company, corporation, or registered limited
11 liability partnership other than a real estate salesperson or
12 leasing agent who for another and for compensation either
13 directly or indirectly:
14 (1) Sells, exchanges, purchases, rents, or leases
15 real estate.
16 (2) Offers to sell, exchange, purchase, rent, or
17 lease real estate.
18 (3) Negotiates, offers, attempts, or agrees to
19 negotiate the sale, exchange, purchase, rental, or
20 leasing of real estate.
21 (4) Lists, offers, attempts, or agrees to list real
22 estate for sale, lease, or exchange.
23 (5) Buys, sells, offers to buy or sell, or
24 otherwise deals in options on real estate or improvements
25 thereon.
26 (6) Collects, offers, attempts, or agrees to
27 collect rent for the use of real estate.
28 (7) Advertises or represents himself or herself as
29 being engaged in the business of buying, selling,
30 exchanging, renting, or leasing real estate.
31 (8) Assists or directs in procuring or referring of
32 prospects, intended to result in the sale, exchange,
33 lease, or rental of real estate.
34 (9) Assists or directs in the negotiation of any
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1 transaction intended to result in the sale, exchange,
2 lease, or rental of real estate.
3 (10) Opens real estate to the public for marketing
4 purposes.
5 "Brokerage agreement" means a written or oral agreement
6 between a sponsoring broker and a consumer for licensed
7 activities to be provided to a consumer in return for
8 compensation or the right to receive compensation from
9 another. Brokerage agreements constitute bilateral
10 agreements between a broker and the broker's client.
11 "Client" means a person who is being represented by a
12 licensee.
13 "Commissioner" means the Commissioner of Banks and Real
14 Estate or a person authorized by the Commissioner, the Office
15 of Banks and Real Estate Act, or this Act to act in the
16 Commissioner's stead.
17 "Compensation" means the valuable consideration given by
18 one person or entity to another person or entity in exchange
19 for the performance of some activity or service.
20 Compensation shall include the transfer of valuable
21 consideration, including without limitation the following:
22 (1) commissions;
23 (2) referral fees;
24 (3) bonuses;
25 (4) prizes;
26 (5) merchandise;
27 (6) finder fees;
28 (7) performance of services;
29 (8) coupons or gift certificates;
30 (9) discounts;
31 (10) rebates;
32 (11) a chance to win a raffle, drawing, lottery, or
33 similar game of chance not prohibited by any other law or
34 statute;
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1 (12) retainer fee; or
2 (13) salary.
3 "Confidential information" means information obtained by
4 a licensee from a client during the term of a brokerage
5 agreement that (i) was made confidential by the written
6 request or written instruction of the client, (ii) deals with
7 the negotiating position of the client, or (iii) is
8 information the disclosure of which could materially harm the
9 negotiating position of the client, unless at any time:
10 (1) the client permits the disclosure of
11 information given by that client by word or conduct;
12 (2) the disclosure is required by law; or
13 (3) the information becomes public from a source
14 other than the licensee.
15 "Confidential information" shall not be considered to
16 include material information about the physical condition of
17 the property.
18 "Consumer" means a person or entity seeking or receiving
19 licensed activities.
20 "Continuing education school" means any person licensed
21 by OBRE as a school for continuing education in accordance
22 with Section 30-15 of this Act.
23 "Credit hour" means 50 minutes of classroom instruction
24 in course work that meets the requirements set forth in rules
25 adopted by OBRE.
26 "Customer" means a consumer who is not being represented
27 by the licensee but for whom the licensee is performing
28 ministerial acts.
29 "Designated agency" means a contractual relationship
30 between a sponsoring broker and a client under Section 15-50
31 of this Act in which one or more licensees associated with or
32 employed by the broker are designated as agent of the client.
33 "Designated agent" means a sponsored licensee named by a
34 sponsoring broker as the legal agent of a client, as provided
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1 for in Section 15-50 of this Act.
2 "Director" means the Director of the Real Estate
3 Division, OBRE.
4 "Dual agency" means an agency relationship in which a
5 licensee is representing both buyer and seller or both
6 landlord and tenant in the same transaction. When the agency
7 relationship is a designated agency, the question of whether
8 there is a dual agency shall be determined by the agency
9 relationships of the designated agent of the parties and not
10 of the sponsoring broker.
11 "Employee" or other derivative of the word "employee",
12 when used to refer to, describe, or delineate the
13 relationship between a real estate broker and a real estate
14 salesperson, another real estate broker, or a leasing agent,
15 shall be construed to include an independent contractor
16 relationship, provided that a written agreement exists that
17 clearly establishes and states the relationship. All
18 responsibilities of a broker shall remain.
19 "Escrow moneys" means all moneys, promissory notes or any
20 other type or manner of legal tender or financial
21 consideration deposited with any person for the benefit of
22 the parties to the transaction. A transaction exists once an
23 agreement has been reached and an accepted real estate
24 contract signed or lease agreed to by the parties. Escrow
25 moneys includes without limitation earnest moneys and
26 security deposits, except those security deposits in which
27 the person holding the security deposit is also the sole
28 owner of the property being leased and for which the security
29 deposit is being held.
30 "Inoperative" means a status of licensure where the
31 licensee holds a current license under this Act, but the
32 licensee is prohibited from engaging in licensed activities
33 because the licensee is unsponsored or the license of the
34 sponsoring broker with whom the licensee is associated or by
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1 whom he or she is employed is currently expired, revoked,
2 suspended, or otherwise rendered invalid under this Act.
3 "Leasing Agent" means a person who is employed by a real
4 estate broker to engage in licensed activities limited to
5 leasing residential real estate who has obtained a license as
6 provided for in Section 5-5 of this Act.
7 "License" means the document issued by OBRE certifying
8 that the person named thereon has fulfilled all requirements
9 prerequisite to licensure under this Act.
10 "Licensed activities" means those activities listed in
11 the definition of "broker" under this Section.
12 "Licensee" means any person, as defined in this Section,
13 who holds a valid unexpired license as a real estate broker,
14 real estate salesperson, or leasing agent.
15 "Listing presentation" means a communication between a
16 real estate broker or salesperson and a consumer in which the
17 licensee is attempting to secure a brokerage agreement with
18 the consumer to market the consumer's real estate for sale or
19 lease.
20 "Managing broker" means a broker who has supervisory
21 responsibilities for licensees in one or, in the case of a
22 multi-office company, more than one office and who has been
23 appointed as such by the sponsoring broker of the real estate
24 firm.
25 "Medium of advertising" means any method of communication
26 intended to influence the general public to use or purchase a
27 particular good or service or real estate.
28 "Ministerial acts" means those acts that a licensee may
29 perform for a consumer that are informative or clerical in
30 nature and do not rise to the level of active representation
31 on behalf of a consumer. Examples of these acts include
32 without limitation (i) responding to phone inquiries by
33 consumers as to the availability and pricing of brokerage
34 services, (ii) responding to phone inquiries from a consumer
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1 concerning the price or location of property, (iii) attending
2 an open house and responding to questions about the property
3 from a consumer, (iv) setting an appointment to view
4 property, (v) responding to questions of consumers walking
5 into a licensee's office concerning brokerage services
6 offered or particular properties, (vi) accompanying an
7 appraiser, inspector, contractor, or similar third party on a
8 visit to a property, (vii) describing a property or the
9 property's condition in response to a consumer's inquiry,
10 (viii) completing business or factual information for a
11 consumer on an offer or contract to purchase on behalf of a
12 client, (ix) showing a client through a property being sold
13 by an owner on his or her own behalf, or (x) referral to
14 another broker or service provider.
15 "OBRE" means the Office of Banks and Real Estate.
16 "Office" means a real estate broker's place of business
17 where the general public is invited to transact business and
18 where records may be maintained and licenses displayed,
19 whether or not it is the broker's principal place of
20 business.
21 "Person" means and includes individuals, entities,
22 corporations, limited liability companies, registered limited
23 liability partnerships, and partnerships, foreign or
24 domestic, except that when the context otherwise requires,
25 the term may refer to a single individual or other described
26 entity.
27 "Personal assistant" means a licensed or unlicensed
28 person who has been hired for the purpose of aiding or
29 assisting a sponsored licensee of the sponsoring broker of
30 the personal assistant in the performance of the sponsored
31 licensee's job.
32 "Pocket card" means the card issued by OBRE to signify
33 that the person named on the card is currently licensed under
34 this Act.
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1 "Pre-license school" means a school licensed by OBRE
2 offering courses in subjects related to real estate
3 transactions, including the subjects upon which an applicant
4 is examined in determining fitness to receive a license.
5 "Pre-renewal period" means the period between the date of
6 issue of a currently valid license and the license's
7 expiration date.
8 "Real estate" means and includes leaseholds as well as
9 any other interest or estate in land, whether corporeal,
10 incorporeal, freehold, or non-freehold and whether the real
11 estate is situated in this State or elsewhere.
12 "Real Estate Administration and Disciplinary Board" or
13 "Board" means the Real Estate Administration and Disciplinary
14 Board created by Section 25-10 of this Act.
15 "Salesperson" means any individual, other than a real
16 estate broker or leasing agent, who is employed by a real
17 estate broker or is associated by written agreement with a
18 real estate broker as an independent contractor and
19 participates in any activity described in the definition of
20 "broker" under this Section.
21 "Sponsoring broker" means the broker who has issued a
22 sponsor card to a licensed salesperson, another licensed
23 broker, or a leasing agent.
24 "Sponsor card" means the temporary permit issued by the
25 sponsoring real estate broker certifying that the real estate
26 broker, real estate salesperson, or leasing agent named
27 thereon is employed by or associated by written agreement
28 with the sponsoring real estate broker, as provided for in
29 Section 5-40 of this Act.
30 ARTICLE 5. LICENSING AND EDUCATION
31 Section 5-5. Leasing agent license.
32 (a) The purpose of this Section is to provide for a
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1 limited scope license to enable persons who wish to engage in
2 activities limited to the leasing of residential real
3 property for which a license is required under this Act, and
4 only those activities, to do so by obtaining the license
5 provided for under this Section.
6 (b) Notwithstanding the other provisions of this Act,
7 there is hereby created a leasing agent license that shall
8 enable the licensee to engage only in residential leasing
9 activities for which a license is required under this Act.
10 Such activities include without limitation leasing or renting
11 residential real property, collecting rent for the use of
12 residential real estate, or attempting, offering, or
13 negotiating to lease, rent, or collect rent for the use of
14 residential real property. Nothing in this Section shall be
15 construed to require a licensed real estate broker or
16 salesperson to obtain a leasing agent license in order to
17 perform leasing activities for which a license is required
18 under this Act. Licensed leasing agents must be sponsored and
19 employed by a sponsoring broker.
20 (c) OBRE, by rule, with the advice of the Board, shall
21 provide for the licensing of leasing agents, including the
22 issuance, renewal, and administration of licenses.
23 (d) Notwithstanding any other provisions of this Act to
24 the contrary, a person may engage in residential leasing
25 activities for which a license is required under this Act,
26 for a period of 120 consecutive days without being licensed,
27 so long as the person is acting under the supervision of a
28 licensed real estate broker and the broker has notified OBRE
29 that the person is pursuing licensure under this Section.
30 During the 120 day period all requirements of Sections 5-10
31 and 5-65 of this Act with respect to education, successful
32 completion of an examination, and the payment of all required
33 fees must be satisfied. OBRE may adopt rules to ensure that
34 the provisions of this subsection are not used in a manner
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1 that enables an unlicensed person to repeatedly or
2 continually engage in activities for which a license is
3 required under this Act.
4 Section 5-10. Application for leasing agent license.
5 Every person who desires to obtain a leasing agent license
6 shall apply to OBRE in writing on forms provided by OBRE. In
7 addition to any other information required to be contained in
8 the application, every application for an original or renewed
9 leasing agent license shall include the applicant's Social
10 Security number. All application or license fees must
11 accompany the application. Each applicant must be at least
12 18 years of age, must be of good moral character, shall have
13 successfully completed a 4-year course of study in a high
14 school or secondary school or an equivalent course of study
15 approved by the Illinois State Board of Education, and shall
16 successfully complete a written examination authorized by
17 OBRE sufficient to demonstrate the applicant's knowledge of
18 the provisions of this Act relating to leasing agents and the
19 applicant's competence to engage in the activities of a
20 licensed leasing agent. Applicants must successfully
21 complete 15 hours of instruction in an approved course of
22 study relating to the leasing of residential real property.
23 The course of study shall, among other topics, cover
24 environmental issues relating to residential real property.
25 Successfully completed course work, completed pursuant to the
26 requirements of this Section, may be applied to the course
27 work requirements to obtain a real estate broker's or
28 salesperson's license as provided by rule. The Advisory
29 Council shall recommend through the Board to OBRE and OBRE
30 shall adopt requirements for approved courses, course
31 content, and the approval of courses, instructors, and
32 schools, as well as school and instructor fees. OBRE may
33 establish continuing education requirements for licensed
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1 leasing agents, by rule, with the advice of the Advisory
2 Council and Board.
3 Section 5-15. Necessity of broker, salesperson, or
4 leasing agent license or sponsor card; ownership
5 restrictions.
6 (a) It is unlawful for any person, corporation, limited
7 liability company, registered limited liability partnership,
8 or partnership to act as a real estate broker, real estate
9 salesperson, or leasing agent or to advertise or assume to
10 act as such broker, salesperson, or leasing agent without a
11 properly issued sponsor card or a license issued under this
12 Act by OBRE, either directly or through its authorized
13 designee.
14 (b) No corporation shall be granted a license or engage
15 in the business or capacity, either directly or indirectly,
16 of a real estate broker, unless every officer of the
17 corporation who actively participates in the real estate
18 activities of the corporation holds a license as a real
19 estate broker and unless every employee who acts as a
20 salesperson, or leasing agent for the corporation holds a
21 license as a real estate broker, salesperson, or leasing
22 agent.
23 (c) No partnership shall be granted a license or engage
24 in the business or serve in the capacity, either directly or
25 indirectly, of a real estate broker, unless every general
26 partner in the partnership holds a license as a real estate
27 broker and unless every employee who acts as a salesperson or
28 leasing agent for the partnership holds a license as a real
29 estate broker, salesperson, or leasing agent. In the case of
30 a registered limited liability partnership (LLP), every
31 partner in the LLP must hold a license as a real estate
32 broker and every employee who acts as a salesperson or
33 leasing agent must hold a license as a real estate broker,
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1 salesperson, or leasing agent.
2 (d) No limited liability company shall be granted a
3 license or engage in the business or serve in the capacity,
4 either directly or indirectly, of a real estate broker unless
5 every manager in the limited liability company holds a
6 license as a real estate broker and unless every member and
7 employee who acts as a salesperson or leasing agent for the
8 limited liability company holds a license as a real estate
9 broker, salesperson, or leasing agent.
10 (e) No partnership, limited liability company, or
11 corporation shall be licensed to conduct a brokerage business
12 where an individual salesperson or leasing agent, or group of
13 salespersons or leasing agents, owns or directly or
14 indirectly controls more than 49% of the shares of stock or
15 other ownership in the partnership, limited liability
16 company, or corporation.
17 Section 5-20. Exemptions from broker, salesperson, or
18 leasing agent license requirement. The requirement for
19 holding a license under this Article 5 shall not apply to:
20 (1) Any person or entity that owns at least 51% of the
21 real estate being sold, leased, exchanged or otherwise
22 transferred. This exemption shall extend to the full-time
23 employees of any entity exempt under this Section who do not
24 engage in licensed activities described in the definition of
25 "broker" under Section 1-10 of this Act in connection with
26 real estate not so owned by that entity. However, this
27 exemption shall not apply to the employees of any affiliated,
28 related, or subsidiary entity that is not wholly owned by the
29 exempt entity nor to the employees of a general partner,
30 partner, or managing member of an entity unless that general
31 partner, partner, or managing member owns at least a 51%
32 interest in the exempt entity.
33 (2) An attorney in fact acting under a duly executed and
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1 recorded power of attorney to convey real estate from the
2 owner or lessor or the services rendered by an attorney at
3 law in the performance of the attorney's duty as an attorney
4 at law.
5 (3) Any person acting as receiver, trustee in
6 bankruptcy, administrator, executor, or guardian or while
7 acting under a court order or under the authority of a will
8 or testamentary trust.
9 (4) Any person acting as a resident manager for the
10 owner or any employee acting as the resident manager for a
11 broker managing an apartment building, duplex, or apartment
12 complex, when the resident manager resides on the premises,
13 the premises is his or her primary residence, and the
14 resident manager is engaged in the leasing of the property of
15 which he or she is the resident manager.
16 (5) Any officer or employee of a federal agency in the
17 conduct of official duties.
18 (6) Any officer or employee of the State government or
19 any political subdivision thereof performing official duties.
20 (7) Any multiple listing service or other information
21 exchange that is engaged in the collection and dissemination
22 of information concerning real estate available for sale,
23 purchase, lease, or exchange along with which no other
24 licensed activities are provided.
25 (8) Railroads and other public utilities regulated by
26 the State of Illinois, or the officers or full time employees
27 thereof, unless the performance of any licensed activities is
28 in connection with the sale, purchase, lease, or other
29 disposition of real estate or investment therein not needing
30 the approval of the appropriate State regulatory authority.
31 (9) Any medium of advertising in the routine course of
32 selling or publishing advertising along with which no other
33 licensed activities are provided.
34 (10) Any resident lessee of a residential dwelling unit
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1 who refers for compensation to the owner of the dwelling
2 unit, or to the owner's agent, prospective lessees of
3 dwelling units in the same building or complex as the
4 resident lessee's unit, but only if the resident lessee (i)
5 refers no more than 3 prospective lessees in any 12-month
6 period, (ii) receives compensation of no more than $1,000 or
7 the equivalent of one month's rent, whichever is less, in any
8 12-month period, and (iii) limits his or her activities to
9 referring prospective lessees to the owner, or the owner's
10 agent, and does not show a residential dwelling unit to a
11 prospective lessee, discuss terms or conditions of leasing a
12 dwelling unit with a prospective lessee, or otherwise
13 participate in the negotiation of the leasing of a dwelling
14 unit.
15 Section 5-25. Application for and issuance of broker or
16 salesperson license.
17 (a) Every person who desires to obtain a license shall
18 make application to OBRE in writing upon forms prepared and
19 furnished by OBRE. In addition to any other information
20 required to be contained in the application, every
21 application for an original or renewed license shall include
22 the applicant's Social Security number. Each applicant shall
23 be at least 21 years of age, be of good moral character, and
24 have successfully completed a 4-year course of study in a
25 high school or secondary school approved by the Illinois
26 State Board of Education or an equivalent course of study as
27 determined by an examination conducted by the Illinois State
28 Board of Education and shall be verified under oath by the
29 applicant. The minimum age of 21 years shall be waived for
30 any person seeking a license as a real estate salesperson who
31 has attained the age of 18 and can provide evidence of the
32 successful completion of at least 4 semesters of
33 post-secondary school study as a full-time student or the
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1 equivalent, with major emphasis on real estate courses, in a
2 school approved by OBRE.
3 (b) When an applicant has had his or her license revoked
4 on a prior occasion or when an applicant is found to have
5 committed any of the practices enumerated in Section 20-20 of
6 this Act or when an applicant has been convicted of forgery,
7 embezzlement, obtaining money under false pretenses, larceny,
8 extortion, conspiracy to defraud, or any other similar
9 offense or offenses or has been convicted of a felony
10 involving moral turpitude in any court of competent
11 jurisdiction in this or any other state, district, or
12 territory of the United States or of a foreign country, the
13 Board may consider the prior revocation, conduct, or
14 conviction in its determination of the applicant's moral
15 character and whether to grant the applicant a license. In
16 its consideration of the prior revocation, conduct, or
17 conviction, the Board shall take into account the nature of
18 the conduct, any aggravating or extenuating circumstances,
19 the time elapsed since the revocation, conduct, or
20 conviction, the rehabilitation or restitution performed by
21 the applicant, and any other factors that the Board deems
22 relevant. When an applicant has made a false statement of
23 material fact on his or her application, the false statement
24 may in itself be sufficient grounds to revoke or refuse to
25 issue a license.
26 (c) Every valid application for issuance of an initial
27 license shall be accompanied by a sponsor card and the fees
28 specified by rule.
29 (d) No applicant shall engage in any of the activities
30 covered by this Act until a valid sponsor card has been
31 issued to such applicant. The sponsor card shall be valid
32 for a maximum period of 45 days from the date of issuance
33 unless extended for good cause as provided by rule.
34 (e) OBRE shall issue to each applicant entitled thereto
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1 a license in such form and size as shall be prescribed by
2 OBRE. The procedure for terminating a license shall be
3 printed on the reverse side of the license. Each license
4 shall bear the name of the person so qualified, shall specify
5 whether the person is qualified to act in a broker or
6 salesperson capacity, and shall contain such other
7 information as shall be recommended by the Board and approved
8 by OBRE. Each person licensed under this Act shall display
9 his or her license conspicuously in his or her place of
10 business.
11 Section 5-30. Education requirements to obtain an
12 original broker or salesperson license.
13 (a) All applicants for a broker's license, except
14 applicants who meet the criteria set forth in subsection (c)
15 of this Section shall (i) give satisfactory evidence of
16 having completed at least 120 classroom hours, 45 of which
17 shall be those hours required to obtain a salesperson's
18 license plus 15 hours in brokerage administration courses, in
19 real estate courses approved by the Advisory Council or (ii)
20 for applicants who currently hold a valid real estate
21 salesperson's license, give satisfactory evidence of having
22 completed at least 75 hours in real estate courses, not
23 including the courses that are required to obtain a
24 salesperson's license, approved by the Advisory Council.
25 (b) All applicants for a salesperson's license, except
26 applicants who meet the criteria set forth in subsection (c)
27 of this Section shall give satisfactory evidence that they
28 have completed at least 45 hours of instruction in real
29 estate courses approved by the Advisory Council.
30 (c) The requirements specified in subsections (a) and
31 (b) of this Section do not apply to applicants who:
32 (1) are currently admitted to practice law by the
33 Supreme Court of Illinois and are currently in active
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1 standing; or
2 (2) show evidence of receiving a baccalaureate
3 degree including courses involving real estate or related
4 material from a college or university approved by the
5 Advisory Council.
6 (d) A minimum of 15 of the required hours of pre-license
7 education shall be in the areas of Article 15 of this Act,
8 disclosure and environmental issues, or any other currently
9 topical areas that are determined by the Advisory Council.
10 Section 5-35. Examination; broker or salesperson.
11 (a) Every person who makes application for an original
12 license as a broker or salesperson shall personally take and
13 pass a written examination authorized by OBRE and answer any
14 questions that may be required to determine the good moral
15 character of the applicant and the applicant's competency to
16 transact the business of broker or salesperson, as the case
17 may be, in such a manner as to safeguard the interests of the
18 public. In determining this competency, OBRE shall require
19 proof that the applicant has a good understanding and the
20 knowledge to conduct real estate brokerage and of the
21 provisions of this Act. The examination shall be prepared by
22 an independent testing service designated by OBRE, subject to
23 the approval of the examinations by the Board. The
24 designated independent testing service shall conduct the
25 examinations at such times and places as OBRE shall approve.
26 In addition, every person who desires to take the written
27 examination shall make application to do so to OBRE or to the
28 designated independent testing service in writing upon forms
29 approved by OBRE. An applicant shall be eligible to take the
30 examination only after successfully completing the education
31 requirements, set forth in Section 5-30 of this Act, and
32 attaining the minimum age specified in this Act. Each
33 applicant shall be required to establish compliance with the
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1 eligibility requirements in the manner provided by the rules
2 promulgated for the administration of this Act.
3 (b) If a person who has received a passing score on the
4 written examination described in this Section fails to file
5 an application and meet all requirements for a license under
6 this Act within one year after receiving a passing score on
7 the examination, credit for the examination shall terminate.
8 The person thereafter may make a new application for
9 examination.
10 (c) If an applicant has failed an examination 3 times,
11 the applicant must repeat the pre-license education required
12 to sit for the examination. For the purposes of this
13 Section, the fourth attempt shall be the same as the first.
14 Approved education, as prescribed by this Act for licensure
15 as a salesperson or broker, shall be valid for a period
16 ending on the later of 2 years after the date of satisfactory
17 completion of the education or 2 years after the expiration
18 of the individual's license.
19 Section 5-40. Sponsor card; termination indicated by
20 license endorsement; association with new broker.
21 (a) The sponsoring broker shall prepare upon forms
22 provided by OBRE and deliver to each licensee employed by or
23 associated with the sponsoring broker a sponsor card
24 certifying that the person whose name appears thereon is in
25 fact employed by or associated with the sponsoring broker.
26 The sponsoring broker shall send a duplicate of each sponsor
27 card, along with a valid license or other authorization as
28 provided by rule and the appropriate fee, to OBRE within 24
29 hours of issuance of the sponsor card. It is a violation of
30 this Act for any broker to issue a sponsor card to any
31 licensee or applicant unless the licensee or applicant
32 presents in hand a valid license or other authorization as
33 provided by rule.
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1 (b) When a licensee terminates his or her employment or
2 association with a sponsoring broker or the employment is
3 terminated by the sponsoring broker, the licensee shall
4 obtain from the sponsoring broker his or her license endorsed
5 by the sponsoring broker indicating the termination. The
6 sponsoring broker shall surrender to OBRE a copy of the
7 license of the licensee within 2 days of the termination or
8 shall notify OBRE in writing of the termination and explain
9 why a copy of the license is not surrendered. Failure of the
10 sponsoring broker to surrender the license shall subject the
11 sponsoring broker to discipline under Section 20-20 of this
12 Act. The license of any licensee whose association with a
13 sponsoring broker is terminated shall automatically become
14 inoperative immediately upon the termination unless the
15 licensee accepts employment or becomes associated with a new
16 sponsoring broker pursuant to subsection (c) of this Section.
17 (c) When a licensee accepts employment or association
18 with a new sponsoring broker, the new sponsoring broker shall
19 send to OBRE a duplicate sponsor card, along with the
20 licensee's endorsed license or an affidavit of the licensee
21 of why the endorsed license is not surrendered, and shall pay
22 the appropriate fee prescribed by rule to cover
23 administrative expenses attendant to the changes in the
24 registration of the licensee.
25 Section 5-45. Offices.
26 (a) If a sponsoring broker maintains more than one
27 office within the State, the sponsoring broker shall apply
28 for a branch office license for each office other than the
29 sponsoring broker's principal place of business. The branch
30 office license shall be displayed conspicuously in each
31 branch office. The name of each branch office shall be the
32 same as that of the sponsoring broker's principal office or
33 shall clearly delineate the branch office's relationship with
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1 the principal office.
2 (b) The sponsoring broker shall name a managing broker
3 for each branch office and the sponsoring broker shall be
4 responsible for supervising all managing brokers. The
5 sponsoring broker shall notify OBRE in writing of the name of
6 all managing brokers of the sponsoring broker. Any changes
7 in managing brokers shall be reported to OBRE in writing
8 within 15 days of the change. Failure to do so shall subject
9 the sponsoring broker to discipline under Section 20-20 of
10 this Act.
11 (c) The sponsoring broker shall immediately notify OBRE
12 in writing of any opening, closing, or change in location of
13 any principal or branch office.
14 (d) Except as provided in this Section, each sponsoring
15 broker shall maintain a definite office, or place of business
16 within this State for the transaction of real estate
17 business, shall conspicuously display an identification sign
18 on the outside of his or her office of adequate size and
19 visibility, and shall conspicuously display his or her
20 license in his or her office or place of business and also
21 the licenses of all persons associated with or employed by
22 the sponsoring broker who primarily work at that location.
23 The office or place of business shall not be located in any
24 retail or financial business establishment unless it is
25 separated from the other business by a separate and distinct
26 area within the establishment. A broker who is licensed in
27 this State by examination or pursuant to the provisions of
28 Section 5-60 of this Act shall not be required to maintain a
29 definite office or place of business in this State provided
30 all of the following conditions are met:
31 (1) the broker maintains an active broker's license
32 in the broker's state of domicile;
33 (2) the broker maintains an office in the broker's
34 state of domicile; and
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1 (3) the broker has filed with OBRE written
2 statements appointing the Commissioner to act as the
3 broker's agent upon whom all judicial and other process
4 or legal notices directed to the licensee may be served
5 and agreeing to abide by all of the provisions of this
6 Act with respect to his or her real estate activities
7 within the State of Illinois and submitting to the
8 jurisdiction of OBRE.
9 The statements under subdivision (3) of this Section
10 shall be in form and substance the same as those statements
11 required under Section 5-60 of this Act and shall operate to
12 the same extent.
13 (e) Upon the loss of a managing broker who is not
14 replaced by the sponsoring broker or in the event of the
15 death or adjudicated disability of the sole proprietor of an
16 office, a written request for authorization allowing the
17 continued operation of the office may be submitted to OBRE
18 within 15 days of the loss. OBRE may issue a written
19 authorization allowing the continued operation, provided that
20 a licensed broker, or in the case of the death or adjudicated
21 disability of a sole proprietor, the representative of the
22 estate, assumes responsibility, in writing, for the operation
23 of the office and agrees to personally supervise the
24 operation of the office. No such written authorization shall
25 be valid for more than 60 days unless extended by OBRE for
26 good cause shown and upon written request by the broker or
27 representative.
28 Section 5-50. Expiration date and renewal period of
29 broker, salesperson, or leasing agent license; sponsoring
30 broker; register of licensees; pocket card.
31 (a) The expiration date and renewal period for each
32 license issued under this Act shall be set by rule. Except
33 as otherwise provided in Section 5-55 of this Act, the holder
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1 of a license may renew the license within 90 days preceding
2 the expiration date thereof by paying the fees specified by
3 rule. Upon written request from the sponsoring broker, OBRE
4 shall prepare and mail to the sponsoring broker a listing of
5 licensees under this Act who, according to the records of
6 OBRE, are sponsored by that broker. Every licensee
7 associated with or employed by a broker whose license is
8 revoked, suspended, terminated, or expired shall be
9 considered as inoperative until such time as the sponsoring
10 broker's license is reinstated or renewed, or the licensee
11 changes employment as set forth in subsection (c) of Section
12 5-40 of this Act.
13 (b) OBRE shall establish and maintain a register of all
14 persons currently licensed by the State and shall issue and
15 prescribe a form of pocket card. Upon payment by a licensee
16 of the appropriate fee as prescribed by rule for engagement
17 in the activity for which the licensee is qualified and holds
18 a license for the current period, OBRE shall issue a pocket
19 card to the licensee. The pocket card shall be verification
20 that the required fee for the current period has been paid
21 and shall indicate that the person named thereon is licensed
22 for the current renewal period as a broker, salesperson, or
23 leasing agent as the case may be. The pocket card shall
24 further indicate that the person named thereon is authorized
25 by OBRE to engage in the licensed activity appropriate for
26 his or her status (broker, salesperson, or leasing agent).
27 Each licensee shall carry on his or her person his or her
28 pocket card or, if such pocket card has not yet been issued,
29 a properly issued sponsor card when engaging in any licensed
30 activity and shall display the same on demand.
31 Section 5-55. Expiration and renewal of broker or
32 salesperson license.
33 (a) Any broker or salesperson whose license under this
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1 Act has expired shall be eligible to renew the license for a
2 period of 2 years following the expiration date, provided the
3 broker or salesperson pays the fees as prescribed by rule. A
4 broker or salesperson whose license has been expired for more
5 than 2 years shall be required to meet the requirements for a
6 new license.
7 (b) Notwithstanding any other provisions of this Act to
8 the contrary, any broker or salesperson whose license under
9 this Act has expired is eligible to renew the license without
10 paying any lapsed renewal fees or reinstatement fee, provided
11 that the license expired while the broker or salesperson was:
12 (1) on active duty with the United States Army,
13 United States Navy, United States Marine Corps, United
14 States Air Force, United States Coast Guard, or the State
15 Militia called into the service or training of the United
16 States;
17 (2) engaged in training or education under the
18 supervision of the United States prior to induction into
19 military service; or
20 (3) serving as the Director of Real Estate in the
21 State of Illinois or as an employee of OBRE.
22 A broker or salesperson shall be eligible to renew a
23 license under the provisions of this Section for a period of
24 2 years following the termination of the service, education,
25 or training, provided that the termination was by other than
26 dishonorable discharge and provided that the licensee
27 furnishes OBRE an affidavit specifying that the broker or
28 salesperson has been so engaged and that the service,
29 education, or training has been so terminated.
30 Section 5-60. Broker licensed in another state;
31 nonresident salesperson; reciprocal agreements; agent for
32 service of process.
33 (a) A broker's license may be issued by OBRE to a broker
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1 licensed under the laws of another state of the United
2 States, under the following conditions:
3 (1) the broker holds a broker's license in his or
4 her state of domicile;
5 (2) the standards for that state for licensing as a
6 broker are substantially equivalent to or greater than
7 the minimum standards in the State of Illinois;
8 (3) the broker has been actively practicing as a
9 broker in the broker's state of domicile for a period of
10 not less than 2 years, immediately prior to the date of
11 application;
12 (4) the broker furnishes OBRE with a statement
13 under seal of the proper licensing authority of the state
14 in which the broker is licensed showing that the broker
15 has an active broker's license, that the broker is in
16 good standing, and that no complaints are pending against
17 the broker in that state; and
18 (5) the broker completes a course of education and
19 passes a test on Illinois specific real estate brokerage
20 laws.
21 (b) A nonresident salesperson employed by or associated
22 with a nonresident broker holding a broker's license in this
23 State pursuant to this Section may, in the discretion of
24 OBRE, be issued a nonresident salesperson's license under the
25 nonresident broker provided all of the following conditions
26 are met:
27 (1) the salesperson maintains an active license in
28 the state in which he or she is domiciled;
29 (2) the salesperson is domiciled in the same state
30 as the broker with whom he or she is associated; and
31 (3) the salesperson completes a course of education
32 and passes a test on Illinois specific real estate
33 brokerage laws.
34 The nonresident broker with whom the salesperson is
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1 associated shall comply with the provisions of this Act and
2 issue the salesperson a sponsor card upon the form provided
3 by OBRE.
4 (c) As a condition precedent to the issuance of a
5 license to a nonresident broker or salesperson, the broker or
6 salesperson shall agree in writing to abide by all the
7 provisions of this Act with respect to his or her real estate
8 activities within the State of Illinois and submit to the
9 jurisdiction of OBRE as provided in this Act. The agreement
10 shall be filed with OBRE and shall remain in force for so
11 long as the nonresident broker or salesperson is licensed by
12 this State and thereafter with respect to acts or omissions
13 committed while licensed as a broker or salesperson in this
14 State.
15 (d) Prior to the issuance of any license to any
16 nonresident, verification of active licensure issued for the
17 conduct of such business in any other state must be filed
18 with OBRE by the nonresident, and the same fees must be paid
19 as provided in this Act for the obtaining of a broker's or
20 salesperson's license in this State.
21 (e) Licenses previously granted under reciprocal
22 agreements shall remain in force, unless suspended, revoked,
23 or terminated by OBRE for any reason provided for suspension,
24 revocation, or termination of a resident licensee's license.
25 Licenses granted under reciprocal agreements may be renewed
26 in the same manner as a resident's license.
27 (f) Prior to the issuance of a license to a nonresident
28 broker or salesperson, the broker or salesperson shall file
29 with OBRE a designation in writing that appoints the
30 Commissioner to act as his or her agent upon whom all
31 judicial and other process or legal notices directed to the
32 broker or salesperson may be served. Service upon the agent
33 so designated shall be equivalent to personal service upon
34 the licensee. Copies of the appointment, certified by the
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1 Commissioner, shall be deemed sufficient evidence thereof and
2 shall be admitted in evidence with the same force and effect
3 as the original thereof might be admitted. In the written
4 designation, the broker or salesperson shall agree that any
5 lawful process against the licensee that is served upon the
6 agent shall be of the same legal force and validity as if
7 served upon the licensee and that the authority shall
8 continue in force so long as any liability remains
9 outstanding in this State. Upon the receipt of any process
10 or notice, the Commissioner shall forthwith mail a copy of
11 the same by certified mail to the last known business address
12 of the licensee.
13 (g) Any person holding a valid license under this
14 Section shall be eligible to obtain a resident broker's or
15 salesperson's license without examination should that person
16 change their state of domicile to Illinois and that person
17 otherwise meets the qualifications or licensure under this
18 Act.
19 Section 5-65. Fees. OBRE shall provide by rule for fees
20 to be paid by applicants and licensees to cover the
21 reasonable costs of OBRE in administering and enforcing the
22 provisions of this Act. OBRE may also provide by rule for
23 general fees to cover the reasonable expenses of carrying out
24 other functions and responsibilities under this Act.
25 Section 5-70. Continuing education requirement; broker
26 or salesperson.
27 (a) Each person who applies for renewal of his or her
28 license as a real estate broker or real estate salesperson
29 must successfully complete real estate continuing education
30 courses approved by the Advisory Council at the rate of 6
31 hours per year or its equivalent. No license may be renewed
32 except upon the successful completion of the required courses
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1 or their equivalent or upon a waiver of those requirements
2 for good cause shown as determined by the Commissioner with
3 the recommendation of the Advisory Council. The requirements
4 of this Article are applicable to all brokers and
5 salespersons except those brokers and salespersons who,
6 during the pre-renewal period:
7 (1) serve in the armed services of the United
8 States;
9 (2) serve as an elected State or federal official;
10 (3) serve as a full-time employee of OBRE; or
11 (4) are admitted to practice law pursuant to
12 Illinois Supreme Court rule.
13 (b) A person who is issued an initial license as a real
14 estate salesperson less than one year prior to the expiration
15 date of that license shall not be required to complete
16 continuing education as a condition of license renewal. A
17 person who is issued an initial license as a real estate
18 broker less than one year prior to the expiration date of
19 that license and who has not been licensed as a real estate
20 salesperson during the pre-renewal period shall not be
21 required to complete continuing education as a condition of
22 license renewal.
23 (c) The continuing education requirement for
24 salespersons and brokers shall consist of a core curriculum
25 and an elective curriculum, to be established by the Advisory
26 Council. In meeting the continuing education requirements of
27 this Act, at least 3 hours per year or their equivalent shall
28 be required to be completed in the core curriculum. In
29 establishing the core curriculum, the Advisory Council shall
30 consider subjects that will educate licensees on recent
31 changes in applicable laws and new laws and refresh the
32 licensee on areas of the license law and OBRE policy that the
33 Advisory Council deems appropriate, and any other areas that
34 the Advisory Council deems timely and applicable in order to
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1 prevent violations of this Act and to protect the public. In
2 establishing the elective curriculum, the Advisory Council
3 shall consider subjects that cover the various aspects of the
4 practice of real estate that are covered under the scope of
5 this Act. However, the elective curriculum shall not include
6 any offerings referred to in Section 5-85 of this Act.
7 (d) The subject areas of continuing education courses
8 approved by the Advisory Council may include without
9 limitation the following:
10 (1) license law and escrow;
11 (2) anti-trust;
12 (3) fair housing;
13 (4) agency;
14 (5) appraisal;
15 (6) property management;
16 (7) residential brokerage;
17 (8) farm property management;
18 (9) rights and duties of sellers, buyers, and
19 brokers;
20 (10) commercial brokerage and leasing; and
21 (11) real estate financing.
22 (e) In lieu of credit for those courses listed in
23 subsection (d) of this Section, credit may be earned for
24 serving as a licensed instructor in an approved course of
25 continuing education. The amount of credit earned for
26 teaching a course shall be the amount of continuing education
27 credit for which the course is approved for licensees taking
28 the course.
29 (f) Credit hours may be earned for self-study programs
30 approved by the Advisory Council.
31 (g) A broker or salesperson may earn credit for a
32 specific continuing education course only once during the
33 prerenewal period.
34 (h) No more than 6 hours of continuing education credit
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1 may be earned in one calendar day.
2 Section 5-75. Out-of-state continuing education credit.
3 If a renewal applicant has earned continuing education hours
4 in another state or territory for which he or she is claiming
5 credit toward full compliance in Illinois, the Advisory
6 Council shall review, approve, or disapprove those hours
7 based upon whether the course is one that would be approved
8 under Section 5-70 of this Act, whether the course meets the
9 basic requirements for continuing education under this Act,
10 and any other criteria that is provided by statute or rule.
11 Section 5-80. Evidence of compliance with continuing
12 education requirements.
13 (a) Each renewal applicant shall certify, on his or her
14 renewal application, full compliance with continuing
15 education requirements set forth in Section 5-70. The
16 continuing education school shall retain and submit to OBRE
17 after the completion of each course evidence of those
18 successfully completing the course as provided by rule.
19 (b) OBRE may require additional evidence demonstrating
20 compliance with the continuing education requirements. The
21 renewal applicant shall retain and produce the evidence of
22 compliance upon request of OBRE.
23 Section 5-85. Offerings not meeting continuing education
24 requirements. The following offerings do not meet the
25 continuing education requirements:
26 (1) Examination preparation offerings, except as
27 provided in Section 5-70 of this Act.
28 (2) Offerings in mechanical office and business
29 skills such as typing, speed reading, memory improvement,
30 advertising, or psychology of sales.
31 (3) Sales promotion or other meetings held in
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1 conjunction with the general business of the attendee or
2 his or her employer.
3 (4) Meetings that are a normal part of in-house
4 staff or employee training.
5 The offerings listed in this Section do not limit the
6 Advisory Council's authority to disapprove any course that
7 fails to meet the standards of this Article 5 or rules
8 adopted by OBRE.
9 ARTICLE 10. COMPENSATION AND BUSINESS PRACTICES
10 Section 10-5. Payment of compensation.
11 (a) No licensee shall pay compensation directly to a
12 licensee sponsored by another broker for the performance of
13 licensed activities. No licensee sponsored by a broker may
14 pay compensation to any licensee other than his or her
15 sponsoring broker for the performance of licensed activities
16 unless the licensee paying the compensation is a principal to
17 the transaction. However, a non-sponsoring broker may pay
18 compensation directly to a licensee sponsored by another or a
19 person who is not sponsored by a broker if the payments are
20 made pursuant to terms of an employment agreement that was
21 previously in place between a licensee and the non-sponsoring
22 broker, and the payments are for licensed activity performed
23 by that person while previously sponsored by the now
24 non-sponsoring broker.
25 (b) No licensee sponsored by a broker shall accept
26 compensation for the performance of activities under this Act
27 except from the broker by whom the licensee is sponsored,
28 except as provided in this Section.
29 (c) Any person that is a licensed personal assistant for
30 another licensee may only be compensated in his or her
31 capacity as a personal assistant by the sponsoring broker for
32 that licensed personal assistant.
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1 (d) One sponsoring broker may pay compensation directly
2 to another sponsoring broker for the performance of licensed
3 activities.
4 Section 10-10. Disclosure of compensation.
5 (a) A licensee must disclose to a client the sponsoring
6 broker's compensation and policy with regard to cooperating
7 with brokers who represent other parties in a transaction.
8 (b) A licensee must disclose to a client all sources of
9 compensation related to the transaction received by the
10 licensee from a third party.
11 (c) If in any one transaction a sponsoring broker
12 receives compensation from both the buyer and seller or
13 lessee and lessor of real estate, the sponsoring broker shall
14 disclose in writing to a client the fact that the
15 compensation is being paid by both buyer and seller or lessee
16 and lessor.
17 (d) Nothing in the Act shall prohibit the cooperation
18 with or a payment of compensation to a person not domiciled
19 in this State who is licensed as a real estate broker in his
20 or her state of domicile.
21 Section 10-15. No compensation to persons in violation
22 of Act; compensation to unlicensed persons; consumer.
23 (a) No compensation may be paid to any unlicensed person
24 in exchange for the person performing licensed activities in
25 violation of this Act.
26 (b) No action or suit shall be instituted, nor recovery
27 therein be had, in any court of this State by any person,
28 partnership, registered limited liability partnership,
29 limited liability company, or corporation for compensation
30 for any act done or service performed, the doing or
31 performing of which is prohibited by this Act to other than
32 licensed brokers, salespersons, or leasing agents unless the
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1 person, partnership, registered limited liability
2 partnership, limited liability company, or corporation was
3 duly licensed hereunder as a broker, salesperson, or leasing
4 agent under this Act at the time that any such act was done
5 or service performed that would give rise to a cause of
6 action for compensation.
7 (c) A licensee may offer compensation, including prizes,
8 merchandise, services, rebates, discounts, or other
9 consideration to an unlicensed person who is a party to a
10 contract to buy or sell real estate or is a party to a
11 contract for the lease of real estate, so long as the offer
12 complies with the provisions of subdivision (26) of
13 subsection (h) of Section 20-20 of this Act.
14 (d) A licensee may offer cash, gifts, prizes, awards,
15 coupons, merchandise, rebates or chances to win a game of
16 chance, if not prohibited by any other law or statute, to a
17 consumer as an inducement to that consumer to use the
18 services of the licensee even if the licensee and consumer do
19 not ultimately enter into a broker-client relationship so
20 long as the offer complies with the provisions of subdivision
21 (26) of subsection (h) of Section 20-20 of this Act.
22 Section 10-20. Sponsoring broker; employment agreement.
23 (a) A licensee may perform activities as a licensee only
24 for his or her sponsoring broker. A licensee must have only
25 one sponsoring broker at any one time.
26 (b) Every broker who employs licensees or has an
27 independent contractor relationship with a licensee shall
28 have a written employment agreement with each such licensee.
29 The broker having this written employment agreement with the
30 licensee must be that licensee's sponsoring broker.
31 (c) Every sponsoring broker must have a written
32 employment agreement with each licensee the broker sponsors.
33 The agreement shall address the employment or independent
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1 contractor relationship terms, including without limitation
2 supervision, duties, compensation, and termination.
3 (d) Every sponsoring broker must have a written
4 employment agreement with each licensed personal assistant
5 who assists a licensee sponsored by the sponsoring broker.
6 This requirement applies to all licensed personal assistants
7 whether or not they perform licensed activities in their
8 capacity as a personal assistant. The agreement shall address
9 the employment or independent contractor relationship terms,
10 including without limitation supervision, duties,
11 compensation, and termination.
12 (e) Notwithstanding the fact that a sponsoring broker
13 has an employment agreement with a licensee, a sponsoring
14 broker may pay compensation directly to a corporation solely
15 owned by that licensee that has been formed for the purpose
16 of receiving compensation earned by the licensee. A
17 corporation formed for the purpose herein stated in this
18 subsection (e) shall not be required to be licensed under
19 this Act so long as the person who is the sole shareholder of
20 the corporation is licensed.
21 Section 10-25. Expiration of brokerage agreement. No
22 licensee shall obtain any written brokerage agreement that
23 does not provide for automatic expiration within a definite
24 period of time. No notice of termination at the final
25 expiration thereof shall be required. Any written brokerage
26 agreement not containing a provision for automatic expiration
27 shall be void. When the license of any sponsoring broker is
28 suspended or revoked, any brokerage agreement with the
29 sponsoring broker shall be deemed to expire upon the
30 effective date of the suspension or revocation.
31 Section 10-30. Advertising.
32 (a) No advertising shall be fraudulent, deceptive,
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1 inherently misleading, or proven to be misleading in
2 practice. It shall be considered misleading or untruthful
3 if, when taken as a whole, there is a distinct and reasonable
4 possibility that it will be misunderstood or will deceive the
5 ordinary purchaser, seller, lessee, lessor, or owner.
6 Advertising shall contain all information necessary to
7 communicate the information contained therein to the public
8 in a direct and readily comprehensible manner.
9 (b) No blind advertisements may be used by any licensee
10 except as provided for in this Section.
11 (c) A licensee shall disclose, in writing, to all
12 parties in a transaction his or her status as a licensee and
13 any and all interest the licensee has or may have in the real
14 estate constituting the subject matter thereof, directly or
15 indirectly, according to the following guidelines:
16 (1) On broker yard signs or in broker
17 advertisements, no disclosure of ownership is necessary.
18 However, the ownership shall be indicated on any property
19 data form and disclosed to persons responding to any
20 advertisement or any sign. The term "broker owned" or
21 "agent owned" is sufficient disclosure.
22 (2) A sponsored or inoperative licensee selling or
23 leasing property, owned solely by the sponsored or
24 inoperative licensee, without utilizing brokerage
25 services of their sponsoring broker or any other
26 licensee, may advertise "By Owner". For purposes of this
27 Section, property is "solely owned" by a sponsored or
28 inoperative licensee if he or she (i) has a 100%
29 ownership interest alone, (ii) has ownership as a joint
30 tenant or tenant by the entirety, or (iii) holds a 100%
31 beneficial interest in a land trust. Sponsored or
32 inoperative licensees selling or leasing "By Owner" shall
33 comply with the following if advertising by owner:
34 (A) On "By Owner" yard signs, the sponsored or
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1 inoperative licensee shall indicate "broker owned"
2 or "agent owned." "By Owner" advertisements used in
3 any medium of advertising shall include the term
4 "broker owned" or "agent owned."
5 (B) If a sponsored or inoperative licensee
6 runs advertisements, for the purpose of purchasing
7 or leasing real estate, he or she shall disclose in
8 the advertisements his or her status as a licensee.
9 (C) A sponsored or inoperative licensee shall
10 not use the sponsoring broker's name or the
11 sponsoring broker's company name in connection with
12 the sale, lease, or advertisement of the property
13 nor utilize the sponsoring broker's or company's
14 name in connection with the sale, lease, or
15 advertising of the property in a manner likely to
16 create confusion among the public as to whether or
17 not the services of a real estate company are being
18 utilized or whether or not a real estate company has
19 an ownership interest in the property.
20 (d) A sponsored licensee may not advertise under his or
21 her own name. Advertising shall be under the direct
22 supervision of the sponsoring or managing broker and in the
23 sponsoring broker's business name, which in the case of a
24 franchise shall include the franchise affiliation as well as
25 the name of the individual firm. This provision does not
26 apply under the following circumstances:
27 (1) When a licensee enters into a brokerage
28 agreement relating to his or her own real estate, or real
29 estate in which he or she has an ownership interest, with
30 another licensed broker; or
31 (2) When a licensee is selling or leasing his or
32 her own real estate or buying or leasing real estate for
33 himself or herself, after providing the appropriate
34 written disclosure of his or her ownership interest as
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1 required in paragraph (2) of subsection (c) of this
2 Section.
3 (e) No licensee shall list his or her name under the
4 heading or title "Real Estate" in the telephone directory or
5 otherwise advertise in his or her own name to the general
6 public through any medium of advertising as being in the real
7 estate business without listing his or her sponsoring
8 broker's business name.
9 (f) The sponsoring broker's business name and the name
10 of the licensee must appear in all advertisements, including
11 business cards. Nothing in this Act shall be construed to
12 require specific print size as between the broker's business
13 name and the name of the licensee.
14 ARTICLE 15. AGENCY RELATIONSHIPS
15 Section 15-5. Legislative intent.
16 (a) The General Assembly finds that application of the
17 common law of agency to the relationships among real estate
18 brokers and salespersons and consumers of real estate
19 brokerage services has resulted in misunderstandings and
20 consequences that have been contrary to the best interests of
21 the public. The General Assembly further finds that the real
22 estate brokerage industry has a significant impact upon the
23 economy of the State of Illinois and that it is in the best
24 interest of the public to provide codification of the
25 relationships between real estate brokers and salespersons
26 and consumers of real estate brokerage services in order to
27 prevent detrimental misunderstandings and misinterpretations
28 of the relationships by consumers, real estate brokers, and
29 salespersons and thus promote and provide stability in the
30 real estate market. This Article 15 is enacted to govern the
31 relationships between consumers of real estate brokerage
32 services and real estate brokers and salespersons to the
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1 extent not governed by individual written agreements. This
2 Article 15 applies to the exclusion of the common law
3 concepts of principal and agent and to the fiduciary duties,
4 which have been applied to real estate brokers, salespersons,
5 and real estate brokerage services.
6 (b) The General Assembly further finds that this Article
7 15 is not intended to prescribe or affect contractual
8 relationships between real estate brokers and the broker's
9 affiliated licensees.
10 (c) This Article 15 may serve as a basis for private
11 rights of action and defenses by sellers, buyers, landlords,
12 tenants, real estate brokers, and real estate salespersons.
13 The private rights of action, however, do not extend to the
14 provisions of any other Articles of this Act.
15 Section 15-10. Relationships between licensees and
16 consumers. Licensees shall be considered to be representing
17 the consumer they are working with as a designated agent for
18 the consumer unless:
19 (1) there is a written agreement between the
20 sponsoring broker and the consumer providing that there
21 is a different relationship; or
22 (2) the licensee is performing only ministerial
23 acts on behalf of the consumer.
24 Section 15-15. Duties of licensees representing clients.
25 (a) A licensee representing a client shall:
26 (1) Perform the terms of the brokerage agreement
27 between a broker and the client.
28 (2) Promote the best interest of the client by:
29 (A) Seeking a transaction at the price and
30 terms stated in the brokerage agreement or at a
31 price and terms otherwise acceptable to the client.
32 (B) Timely presenting all offers to and from
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1 the client, unless the client has waived this duty.
2 (C) Disclosing to the client material facts
3 concerning the transaction of which the licensee has
4 actual knowledge, unless that information is
5 confidential information. Material facts do not
6 include physical conditions, fact situations, or
7 occurrences located on real estate that is not the
8 subject of the transaction.
9 (D) Timely accounting for all money and
10 property received in which the client has, may have,
11 or should have had an interest.
12 (E) Obeying specific directions of the client
13 that are not otherwise contrary to applicable
14 statutes, ordinances, or rules.
15 (F) Acting in a manner consistent with
16 promoting the client's best interests as opposed to
17 a licensee's or any other person's self-interest.
18 (3) Exercise reasonable skill and care in the
19 performance of brokerage services.
20 (4) Keep confidential all confidential information
21 received from the client.
22 (5) Comply with all requirements of this Act and
23 all applicable statutes and regulations, including
24 without limitation fair housing and civil rights
25 statutes.
26 (b) A licensee representing a client does not breach a
27 duty or obligation to the client by showing alternative
28 properties to prospective buyers or tenants or by showing
29 properties in which the client is interested to other
30 prospective buyers or tenants.
31 (c) A licensee representing a buyer or tenant client
32 will not be presumed to have breached a duty or obligation to
33 that client by working on the basis that the licensee will
34 receive a higher fee or compensation based on higher selling
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1 price or lease cost.
2 (d) A licensee shall not be liable to a client for
3 providing false information to the client if the false
4 information was provided to the licensee by a customer unless
5 the licensee knew or should have known the information was
6 false.
7 (e) Nothing in the Section shall be construed as
8 changing a licensee's duty under common law as to negligent
9 or fraudulent misrepresentation of material information.
10 Section 15-20. Failure to disclose information not
11 affecting physical condition. No cause of action shall arise
12 against a licensee for the failure to disclose that an
13 occupant of that property was afflicted with Human
14 Immunodeficiency Virus (HIV) or any other medical condition
15 or that the property was the site of an act or occurrence
16 that had no effect on the physical condition of the property
17 or its environment or the structures located thereon.
18 Section 15-25. Licensee's relationship with customers.
19 (a) Licensees shall treat all customers honestly and
20 shall not negligently or knowingly give them false
21 information. A licensee engaged by a seller client shall
22 timely disclose to customers who are prospective buyers all
23 latent material adverse facts pertaining to the physical
24 condition of the property that are actually known by the
25 licensee and that could not be discovered by a reasonably
26 diligent inspection of the property by the customer. A
27 licensee shall not be liable to a customer for providing
28 false information to the customer if the false information
29 was provided to the licensee by the licensee's client and the
30 licensee did not have actual knowledge that the information
31 was false. No cause of action shall arise on behalf of any
32 person against a licensee for revealing information in
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1 compliance with this Section.
2 (b) A licensee representing a client in a real estate
3 transaction may provide assistance to a customer by
4 performing ministerial acts. Performing those ministerial
5 acts shall not be construed in a manner that would violate
6 the brokerage agreement with the client, and performing those
7 ministerial acts for the customer shall not be construed in a
8 manner as to form a brokerage agreement with the customer.
9 Section 15-30. Duties after termination of brokerage
10 agreement. Except as may be provided in a written agreement
11 between the broker and the client, neither a sponsoring
12 broker nor any licensee affiliated with the sponsoring broker
13 owes any further duties to the client after termination,
14 expiration, or completion of performance of the brokerage
15 agreement, except:
16 (1) to account for all moneys and property relating
17 to the transaction; and
18 (2) to keep confidential all confidential
19 information received during the course of the brokerage
20 agreement.
21 Section 15-35. Agency relationship disclosure.
22 (a) A consumer shall be advised of the following no
23 later than entering into a brokerage agreement with the
24 sponsoring broker:
25 (1) That a designated agency relationship exists,
26 unless there is written agreement between the sponsoring
27 broker and the consumer providing for a different
28 brokerage relationship.
29 (2) The name or names of his or her designated
30 agent or agents in writing.
31 (3) The sponsoring broker's compensation and policy
32 with regard to cooperating with brokers who represent
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1 other parties in a transaction.
2 (b) A licensee shall disclose in writing to a customer
3 that the licensee is not acting as the agent of the customer
4 at a time intended to prevent disclosure of confidential
5 information from a customer to a licensee, but in no event
6 later than the preparation of an offer to purchase or lease
7 real property. This subsection (b) does not apply to
8 residential lease or rental transactions unless the lease or
9 rental agreement includes an option to purchase real estate.
10 Section 15-40. Compensation does not determine agency.
11 Compensation does not determine agency relationship. The
12 payment or promise of payment of compensation to a licensee
13 is not determinative of whether an agency relationship has
14 been created between any licensee and a consumer.
15 Section 15-45. Dual agency.
16 (a) A licensee may act as a dual agent only with the
17 informed written consent of all clients. Informed written
18 consent shall be presumed to have been given by any client
19 who signs a document that includes the following:
20 "The undersigned (insert name(s)), ("Licensee"), may
21 undertake a dual representation (represent both the
22 seller or landlord and the buyer or tenant) for the sale
23 or lease of property. The undersigned acknowledge they
24 were informed of the possibility of this type of
25 representation. Before signing this document please read
26 the following: Representing more than one party to a
27 transaction presents a conflict of interest since both
28 clients may rely upon Licensee's advice and the client's
29 respective interests may be adverse to each other.
30 Licensee will undertake this representation only with the
31 written consent of ALL clients in the transaction. Any
32 agreement between the clients as to a final contract
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1 price and other terms is a result of negotiations between
2 the clients acting in their own best interests and on
3 their own behalf. You acknowledge that Licensee has
4 explained the implications of dual representation,
5 including the risks involved, and understand that you
6 have been advised to seek independent advice from your
7 advisors or attorneys before signing any documents in
8 this transaction.
9 WHAT A LICENSEE CAN DO FOR CLIENTS
10 WHEN ACTING AS A DUAL AGENT
11 1. Treat all clients honestly.
12 2. Provide information about the property to the buyer
13 or tenant.
14 3. Disclose all latent material defects in the property
15 that are known to the Licensee.
16 4. Disclose financial qualification of the buyer or
17 tenant to the seller or landlord.
18 5. Explain real estate terms.
19 6. Help the buyer or tenant to arrange for property
20 inspections.
21 7. Explain closing costs and procedures.
22 8. Help the buyer compare financing alternatives.
23 9. Provide information about comparable properties that
24 have sold so both clients may make educated decisions on
25 what price to accept or offer.
26 WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
27 ACTING AS A DUAL AGENT
28 1. Confidential information that Licensee may know about
29 a client, without that client's permission.
30 2. The price the seller or landlord will take other than
31 the listing price without permission of the seller or
32 landlord.
33 3. The price the buyer or tenant is willing to pay
34 without permission of the buyer or tenant.
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1 4. A recommended or suggested price the buyer or tenant
2 should offer.
3 5. A recommended or suggested price the seller or
4 landlord should counter with or accept.
5 If either client is uncomfortable with this
6 disclosure and dual representation, please let Licensee
7 know. You are not required to sign this document unless
8 you want to allow Licensee to proceed as a Dual Agent in
9 this transaction. By signing below, you acknowledge that
10 you have read and understand this form and voluntarily
11 consent to Licensee acting as a Dual Agent (that is, to
12 represent BOTH the seller or landlord and the buyer or
13 tenant) should that become necessary.".
14 (b) The dual agency disclosure form provided for in
15 subsection (a) of this Section must be presented by a
16 licensee, who offers dual representation, to the client at
17 the time the brokerage agreement is entered into and may be
18 signed by the client at that time or at any time before the
19 licensee acts as a dual agent as to the client.
20 (c) A licensee acting in a dual agency capacity in a
21 transaction must obtain a written confirmation from the
22 licensee's clients of their consent for the licensee to act
23 as a dual agent in the transaction. This confirmation should
24 be obtained at the time the clients are executing any offer
25 or contract to purchase or lease in a transaction in which
26 the licensee is acting as a dual agent. This confirmation
27 may be included in another document, such as a contract to
28 purchase, in which case the client must not only sign the
29 document but also initial the confirmation of dual agency
30 provision. That confirmation must state, at a minimum, the
31 following:
32 "The undersigned confirm that they have previously
33 consented to (insert name(s)), ("Licensee"), acting as a
34 Dual Agent in providing brokerage services on their
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1 behalf and specifically consent to Licensee acting as a
2 Dual Agent in regard to the transaction referred to in
3 this document.".
4 (d) No cause of action shall arise on behalf of any
5 person against a dual agent for making disclosures allowed or
6 required by this Article, and the dual agent does not
7 terminate any agency relationship by making the allowed or
8 required disclosures.
9 (e) In the case of dual agency, each client and the
10 licensee possess only actual knowledge and information.
11 There shall be no imputation of knowledge or information
12 among or between clients, brokers, or their affiliated
13 licensees.
14 (f) In any transaction, a licensee may without liability
15 withdraw from representing a client who has not consented to
16 a disclosed dual agency. The withdrawal shall not prejudice
17 the ability of the licensee to continue to represent the
18 other client in the transaction or limit the licensee from
19 representing the client in other transactions. When a
20 withdrawal as contemplated in this subsection (f) occurs, the
21 licensee shall not receive a referral fee for referring a
22 client to another licensee unless written disclosure is made
23 to both the withdrawing client and the client that continues
24 to be represented by the licensee.
25 Section 15-50. Designated agency.
26 (a) A sponsoring broker entering into an agreement with
27 any person for the listing of property or for the purpose of
28 representing any person in the buying, selling, exchanging,
29 renting, or leasing of real estate may specifically designate
30 those licensees employed by or affiliated with the sponsoring
31 broker who will be acting as legal agents of that person to
32 the exclusion of all other licensees employed by or
33 affiliated with the sponsoring broker. A sponsoring broker
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1 entering into an agreement under the provisions of this
2 Section shall not be considered to be acting for more than
3 one party in a transaction if the licensees specifically
4 designated as legal agents of a person are not representing
5 more than one party in a transaction.
6 (b) A sponsoring broker designating affiliated licensees
7 to act as agents of clients shall take ordinary and necessary
8 care to protect confidential information disclosed by a
9 client to his or her designated agent.
10 (c) A designated agent may disclose to his or her
11 sponsoring broker or persons specified by the sponsoring
12 broker confidential information of a client for the purpose
13 of seeking advice or assistance for the benefit of the client
14 in regard to a possible transaction. Confidential
15 information shall not be disclosed by the sponsoring broker
16 or other specified representative of the sponsoring broker
17 unless otherwise required by this Act or requested or
18 permitted by the client who originally disclosed the
19 confidential information.
20 Section 15-55. No subagency. A broker is not considered
21 to be a subagent of a client of another broker solely by
22 reason of membership or other affiliation by the brokers in a
23 multiple listing service or other similar information source,
24 and an offer of subagency may not be made through a multiple
25 listing service or other similar information source.
26 Section 15-60. Vicarious liability. A consumer shall not
27 be vicariously liable for the acts or omissions of a licensee
28 in providing licensed activities for or on behalf of the
29 consumer.
30 Section 15-65. Regulatory enforcement. Nothing contained
31 in this Article limits OBRE in its regulation of licensees
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1 under other Articles of this Act and the substantive rules
2 adopted by OBRE. OBRE, with the advice of the Board, is
3 authorized to promulgate any rules that may be necessary for
4 the implementation and enforcement of this Article 15.
5 Section 15-70. Actions for damages.
6 (a) In any action brought under this Article 15, the
7 court may, in its discretion, award only actual damages and
8 court costs or grant injunctive relief, when appropriate.
9 (b) Any action under this Article 15 shall be forever
10 barred unless commenced within one year after the person
11 bringing the action knew or should reasonably have known of
12 such act or omission. In no event shall the action be
13 brought more than 4 years after the date on which the act or
14 omission occurred. If the person entitled to bring the
15 action is under the age of 18 or under legal disability the
16 period of limitations shall not begin to run until the
17 disability is removed.
18 ARTICLE 20. DISCIPLINARY PROVISIONS
19 Section 20-5. Index of decisions. OBRE shall maintain an
20 index of formal decisions regarding the issuance, refusal to
21 issue, renewal, refusal to renew, revocation, and suspension
22 of licenses and probationary or other disciplinary action
23 taken under this Act on or after July 1, 1999. The decisions
24 shall be indexed according to the Sections of statutes and
25 the administrative rules, if any, that are the basis for the
26 decision. The index shall be available to the public during
27 regular business hours.
28 Section 20-10. Unlicensed practice; civil penalty.
29 (a) Any person who practices, offers to practice,
30 attempts to practice, or holds oneself out to practice as a
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1 real estate broker, real estate salesperson, or leasing agent
2 without being licensed under this Act shall, in addition to
3 any other penalty provided by law, pay a civil fine to OBRE
4 in an amount not to exceed $25,000 for each offense as
5 determined by OBRE. The civil fine shall be assessed by OBRE
6 after a hearing is held in accordance with the provisions set
7 forth in this Act regarding the provision of a hearing for
8 the discipline of a license.
9 (b) OBRE has the authority and power to investigate any
10 and all unlicensed activity.
11 (c) The civil fine shall be paid within 60 days after
12 the effective date of the order imposing the civil fine. The
13 order shall constitute a judgement and may be filed and
14 execution had thereon in the same manner from any court of
15 record.
16 Section 20-15. Violations. The commission of a single
17 act prohibited by this Act or prohibited by the rules
18 promulgated under this Act or a violation of a disciplinary
19 order issued under this Act constitutes a violation of this
20 Act.
21 Section 20-20. Disciplinary actions; causes. OBRE may
22 refuse to issue or renew a license, may place on probation,
23 suspend, or revoke any license, or may censure, reprimand, or
24 otherwise discipline or impose a civil fine not to exceed
25 $25,000 upon any licensee hereunder for any one or any
26 combination of the following causes:
27 (a) When the applicant or licensee has, by false or
28 fraudulent representation, obtained or sought to obtain a
29 license.
30 (b) When the applicant or licensee has been convicted of
31 any crime, an essential element of which is dishonesty or
32 fraud or larceny, embezzlement, or obtaining money, property,
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1 or credit by false pretenses or by means of a confidence
2 game, has been convicted in this or another state of a crime
3 that is a felony under the laws of this State, or has been
4 convicted of a felony in a federal court.
5 (c) When the applicant or licensee has been adjudged to
6 be a person under legal disability or subject to involuntary
7 admission or to meet the standard for judicial admission as
8 provided in the Mental Health and Developmental Disabilities
9 Code.
10 (d) When the licensee performs or attempts to perform
11 any act as a broker or salesperson in a retail sales
12 establishment from an office, desk, or space that is not
13 separated from the main retail business by a separate and
14 distinct area within the establishment.
15 (e) Discipline of a licensee by another state, the
16 District of Columbia, a territory, a foreign nation, a
17 governmental agency, or any other entity authorized to impose
18 discipline if at least one of the grounds for that discipline
19 is the same as or the equivalent of one of the grounds for
20 discipline set forth in this Act, in which case the only
21 issue will be whether one of the grounds for that discipline
22 is the same or equivalent to one of the grounds for
23 discipline under this Act.
24 (f) When the applicant or licensee has engaged in real
25 estate activity without a license or after the licensee's
26 license was expired or while the license was inoperative.
27 (g) When the applicant or licensee attempts to subvert
28 or cheat on the Real Estate License Exam or continuing
29 education exam or aids and abets an applicant to subvert or
30 cheat on the Real Estate License Exam or continuing education
31 exam administered pursuant to this Act.
32 (h) When the licensee in performing, attempting to
33 perform, or pretending to perform any act as a broker,
34 salesperson, or leasing agent or when the licensee in
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1 handling his or her own property, whether held by deed,
2 option, or otherwise, is found guilty of:
3 (1) Making any substantial misrepresentation or
4 untruthful advertising.
5 (2) Making any false promises of a character likely
6 to influence, persuade, or induce.
7 (3) Pursuing a continued and flagrant course of
8 misrepresentation or the making of false promises through
9 licensees, employees, agents, advertising, or otherwise.
10 (4) Any misleading or untruthful advertising, or
11 using any trade name or insignia of membership in any
12 real estate organization of which the licensee is not a
13 member.
14 (5) Acting for more than one party in a transaction
15 without providing written notice to all parties for whom
16 the licensee acts.
17 (6) Representing or attempting to represent a
18 broker other than the sponsoring broker.
19 (7) Failure to account for or to remit any moneys
20 or documents coming into his or her possession that
21 belong to others.
22 (8) Failure to maintain and deposit in a special
23 account, separate and apart from personal and other
24 business accounts, all escrow moneys belonging to others
25 entrusted to a licensee while acting as a real estate
26 broker, escrow agent, or temporary custodian of the funds
27 of others or failure to maintain all escrow moneys on
28 deposit in the account until the transactions are
29 consummated or terminated, except to the extent that the
30 moneys, or any part thereof, shall be disbursed prior to
31 the consummation or termination in accordance with (i)
32 the written direction of the principals to the
33 transaction or their duly authorized agents or (ii)
34 directions providing for the release, payment, or
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1 distribution of escrow moneys contained in any written
2 contract signed by the principals to the transaction or
3 their duly authorized agents. The account shall be
4 noninterest bearing, unless the character of the deposit
5 is such that payment of interest thereon is otherwise
6 required by law or unless the principals to the
7 transaction specifically require, in writing, that the
8 deposit be placed in an interest bearing account.
9 (9) Failure to make available to the real estate
10 enforcement personnel of OBRE during normal business
11 hours all escrow records and related documents maintained
12 in connection with the practice of real estate.
13 (10) Failing to furnish copies upon request of all
14 documents relating to a real estate transaction to all
15 parties executing them.
16 (11) Failure of a sponsoring broker to timely
17 provide information, sponsor cards, or termination of
18 licenses to OBRE.
19 (12) Having demonstrated unworthiness or
20 incompetency to act as a broker or salesperson in such
21 manner as to endanger the interest of the public.
22 (13) Commingling the money or property of others
23 with his or her own.
24 (14) Employing any person on a purely temporary or
25 single deal basis as a means of evading the law regarding
26 payment of commission to nonlicensees on some
27 contemplated transactions.
28 (15) Permitting the use of his or her license as a
29 broker to enable a salesperson or unlicensed person to
30 operate a real estate business without actual
31 participation therein and control thereof by the broker.
32 (16) Any other conduct, whether of the same or a
33 different character from that specified in this Section,
34 that constitutes dishonest dealing.
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1 (17) Displaying a "for rent" or "for sale" sign on
2 any property without the written consent of an owner or
3 his or her duly authorized agent or advertising by any
4 means that any property is for sale or for rent without
5 the written consent of the owner or his or her authorized
6 agent.
7 (18) Failing to provide information requested by
8 OBRE, within 30 days of the request, either as the result
9 of a formal or informal complaint to OBRE or as a result
10 of a random audit conducted by OBRE, which would indicate
11 a violation of this Act.
12 (19) Advertising by means of a blind advertisement,
13 except as otherwise permitted in Section 10-30 of this
14 Act.
15 (20) Offering guaranteed sales plans, as defined in
16 clause (A) of this subdivision (20), except to the extent
17 hereinafter set forth:
18 (A) A "guaranteed sales plan" is any real
19 estate purchase or sales plan whereby a licensee
20 enters into a conditional or unconditional written
21 contract with a seller by the terms of which a
22 licensee agrees to purchase a property of the seller
23 within a specified period of time at a specific
24 price in the event the property is not sold in
25 accordance with the terms of a listing contract
26 between the sponsoring broker and the seller or on
27 other terms acceptable to the seller.
28 (B) A licensee offering a guaranteed sales
29 plan shall provide the details and conditions of the
30 plan in writing to the party to whom the plan is
31 offered.
32 (C) A licensee offering a guaranteed sales
33 plan shall provide to the party to whom the plan is
34 offered evidence of sufficient financial resources
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1 to satisfy the commitment to purchase undertaken by
2 the broker in the plan.
3 (D) Any licensee offering a guaranteed sales
4 plan shall undertake to market the property of the
5 seller subject to the plan in the same manner in
6 which the broker would market any other property,
7 unless the agreement with the seller provides
8 otherwise.
9 (E) Any licensee who fails to perform on a
10 guaranteed sales plan in strict accordance with its
11 terms shall be subject to all the penalties provided
12 in this Act for violations thereof and, in addition,
13 shall be subject to a civil fine payable to the
14 party injured by the default in an amount of up to
15 $25,000.
16 (21) Influencing or attempting to influence, by any
17 words or acts, a prospective seller, purchaser, occupant,
18 landlord, or tenant of real estate, in connection with
19 viewing, buying, or leasing real estate, so as to promote
20 or tend to promote the continuance or maintenance of
21 racially and religiously segregated housing or so as to
22 retard, obstruct, or discourage racially integrated
23 housing on or in any street, block, neighborhood, or
24 community.
25 (22) Engaging in any act that constitutes a
26 violation of any provision of Article 3 of the Illinois
27 Human Rights Act, whether or not a complaint has been
28 filed with or adjudicated by the Human Rights Commission.
29 (23) Inducing any party to a contract of sale or
30 lease or brokerage agreement to break the contract of
31 sale or lease or brokerage agreement for the purpose of
32 substituting, in lieu thereof, a new contract for sale or
33 lease or brokerage agreement with a third party.
34 (24) Negotiating a sale, exchange, or lease of real
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1 estate directly with any person if the licensee knows
2 that the person has a written exclusive brokerage
3 agreement with another broker, unless specifically
4 authorized by that broker.
5 (25) When a licensee is also an attorney, acting as
6 the attorney for either the buyer or the seller in the
7 same transaction in which the licensee is acting or has
8 acted as a broker or salesperson.
9 (26) Advertising or offering merchandise or
10 services as free if any conditions or obligations
11 necessary for receiving the merchandise or services are
12 not disclosed in the same advertisement or offer. These
13 conditions or obligations include without limitation the
14 requirement that the recipient attend a promotional
15 activity or visit a real estate site. As used in this
16 subdivision (26), "free" includes terms such as "award",
17 "prize", "no charge," "free of charge," "without charge",
18 and similar words or phrases that reasonably lead a
19 person to believe that he or she may receive or has been
20 selected to receive something of value, without any
21 conditions or obligations on the part of the recipient.
22 (27) Disregarding or violating any provision of the
23 Land Sales Registration Act of 1989, the Illinois Real
24 Estate Time-Share Act, or the published rules promulgated
25 by OBRE to enforce those Acts.
26 (28) Violating the terms of a disciplinary order
27 issued by OBRE.
28 (29) Paying compensation in violation of Article 10
29 of this Act.
30 (30) Requiring a party to a transaction who is not
31 a client of the licensee to allow the licensee to retain
32 a portion of the escrow moneys for payment of the
33 licensee's commission or expenses as a condition for
34 release of the escrow moneys to that party.
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1 (31) Disregarding or violating any provision of
2 this Act or the published rules promulgated by OBRE to
3 enforce this Act or aiding or abetting any individual,
4 partnership, registered limited liability partnership,
5 limited liability company, or corporation in disregarding
6 any provision of this Act or the published rules
7 promulgated by OBRE to enforce this Act.
8 Section 20-25. Returned checks; fees. Any person who
9 delivers a check or other payment to OBRE that is returned to
10 OBRE unpaid by the financial institution upon which it is
11 drawn shall pay to OBRE, in addition to the amount already
12 owed to OBRE, a fee of $50. The fees imposed by this Section
13 are in addition to any other discipline provided under this
14 Act for unlicensed practice or practice on a nonrenewed
15 license. OBRE shall notify the person that payment of fees
16 and fines shall be paid to OBRE by certified check or money
17 order within 30 calendar days of the notification. If, after
18 the expiration of 30 days from the date of the notification,
19 the person has failed to submit the necessary remittance,
20 OBRE shall automatically terminate the license or deny the
21 application, without hearing. If, after termination or
22 denial, the person seeks a license, he or she shall apply to
23 OBRE for restoration or issuance of the license and pay all
24 fees and fines due to OBRE. OBRE may establish a fee for the
25 processing of an application for restoration of a license to
26 pay all expenses of processing this application. The
27 Commissioner may waive the fees due under this Section in
28 individual cases where the Commissioner finds that the fees
29 would be unreasonable or unnecessarily burdensome.
30 Section 20-30. Standards of practice of leasing agents;
31 disciplinary procedures. OBRE may by rule, with the advice of
32 the Board, prescribe standards of practice to be followed by
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1 licensed leasing agents. Standards of practice shall include
2 without limitation acts or omissions that leasing agents are
3 prohibited from engaging in, disciplinary procedures, and
4 penalties for violating provisions of this Act. Disciplinary
5 procedures shall conform with disciplinary procedures for
6 licensed real estate brokers and salespersons. Complaints
7 shall be heard as provided for in this Act.
8 Section 20-35. Violations of tax Acts. OBRE may refuse
9 to issue or renew or may suspend the license of any person
10 who fails to file a return, pay the tax, penalty, or interest
11 shown in a filed return, or pay any final assessment of tax,
12 penalty, or interest, as required by any tax Act administered
13 by the Department of Revenue, until such time as the
14 requirements of any such tax Act are satisfied.
15 Section 20-40. Disciplinary action for educational loan
16 defaults. OBRE shall deny a license or renewal authorized by
17 this Act to a person who has defaulted on an educational loan
18 or scholarship provided or guaranteed by the Illinois Student
19 Assistance Commission or any governmental agency of this
20 State; however, OBRE may issue a license or renewal if the
21 person has established a satisfactory repayment record as
22 determined by the Illinois Student Assistance Commission or
23 other appropriate governmental agency of this State.
24 Additionally, a license issued by OBRE may be suspended or
25 revoked if the Commissioner, after the opportunity for a
26 hearing under this Article, finds that the licensee has
27 failed to make satisfactory repayment to the Illinois Student
28 Assistance Commission for a delinquent or defaulted loan.
29 Section 20-45. Nonpayment of child support. In cases in
30 which the Department of Public Aid has previously determined
31 that a licensee or a potential licensee is more than 30 days
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1 delinquent in the payment of child support and has
2 subsequently certified the delinquency to OBRE, OBRE may
3 refuse to issue or renew or may revoke or suspend that
4 person's license or may take other disciplinary action
5 against that person based solely upon the certification of
6 delinquency made by the Department of Public Aid.
7 Redetermination of the delinquency by OBRE shall not be
8 required. In cases regarding the renewal of a license, OBRE
9 shall not renew any license if the Department of Public Aid
10 has certified the licensee to be more than 30 days delinquent
11 in the payment of child support unless the licensee has
12 arranged for payment of past and current child support
13 obligations in a manner satisfactory to the Department of
14 Public Aid. OBRE may impose conditions, restrictions, or
15 disciplinary action upon that renewal.
16 Section 20-50. Illegal discrimination. When there has
17 been an adjudication in a civil or criminal proceeding that a
18 licensee has illegally discriminated while engaged in any
19 activity for which a license is required under this Act,
20 OBRE, upon the recommendation of the Board as to the extent
21 of the suspension or revocation, shall suspend or revoke the
22 license of that licensee in a timely manner, unless the
23 adjudication is in the appeal process. When there has been an
24 order in an administrative proceeding finding that a licensee
25 has illegally discriminated while engaged in any activity for
26 which a license is required under this Act, OBRE, upon
27 recommendation of the Board as to the nature and extent of
28 the discipline, shall take one or more of the disciplinary
29 actions provided for in Section 20-20 of this Act in a timely
30 manner, unless the administrative order is in the appeal
31 process.
32 Section 20-55. Illinois Administrative Procedure Act.
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1 The Illinois Administrative Procedure Act is hereby expressly
2 adopted and incorporated herein as if all of the provisions
3 of that Act were included in this Act, except that the
4 provision of subsection (d) of Section 10-65 of the Illinois
5 Administrative Procedure Act that provides that at hearings
6 the licensee has the right to show compliance with all lawful
7 requirements for retention, continuation, or renewal of the
8 license is specifically excluded. For the purposes of this
9 Act, the notice required under the Illinois Administrative
10 Procedure Act is deemed sufficient when mailed to the last
11 known address of a party.
12 Section 20-60. Hearing; investigation; notice;
13 disciplinary consent order.
14 (a) OBRE may conduct hearings through the Board or a
15 duly appointed hearing officer on proceedings to suspend,
16 revoke, or to refuse to issue or renew licenses of persons
17 applying for licensure or licensed under this Act or to
18 censure, reprimand, or impose a civil fine not to exceed
19 $25,000 upon any licensee hereunder and may revoke, suspend,
20 or refuse to issue or renew these licenses or censure,
21 reprimand, or impose a civil fine not to exceed $25,000 upon
22 any licensee hereunder.
23 (b) Upon the motion of either OBRE or the Board or upon
24 the verified complaint in writing of any persons setting
25 forth facts that if proven would constitute grounds for
26 suspension or revocation under this Act, OBRE, the Board, or
27 its subcommittee shall cause to be investigated the actions
28 of any person so accused who holds a license or is holding
29 himself or herself out to be a licensee. This person is
30 hereinafter called the accused.
31 (c) Prior to initiating any formal disciplinary
32 proceedings resulting from an investigation conducted
33 pursuant to subsection (b) of this Section, that matter shall
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1 be reviewed by a subcommittee of the Board according to
2 procedures established by rule. The subcommittee shall make a
3 recommendation to the full Board as to the validity of the
4 complaint and may recommend that the Board not proceed with
5 formal disciplinary proceedings if the complaint is
6 determined to be frivolous or without merit.
7 (d) Except as provided for in Section 20-65 of this Act,
8 OBRE shall, before suspending, revoking, placing on
9 probationary status, or taking any other disciplinary action
10 as OBRE may deem proper with regard to any license:
11 (1) notify the accused in writing at least 30 days
12 prior to the date set for the hearing of any charges made
13 and the time and place for the hearing of the charges to
14 be heard before the Board under oath; and
15 (2) inform the accused that upon failure to file an
16 answer and request a hearing before the date originally
17 set for the hearing, default will be taken against the
18 accused and his or her license may be suspended, revoked,
19 or placed on probationary status, or other disciplinary
20 action, including limiting the scope, nature, or extent
21 of the accused's practice, as OBRE may deem proper, may
22 be taken with regard thereto.
23 In case the person fails to file an answer after
24 receiving notice, his or her license may, in the discretion
25 of OBRE, be suspended, revoked, or placed on probationary
26 status, or OBRE may take whatever disciplinary action deemed
27 proper, including limiting the scope, nature, or extent of
28 the person's practice or the imposition of a fine, without a
29 hearing, if the act or acts charged constitute sufficient
30 grounds for such action under this Act.
31 (e) At the time and place fixed in the notice, the Board
32 shall proceed to hearing of the charges and both the accused
33 person and the complainant shall be accorded ample
34 opportunity to present in person or by counsel such
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1 statements, testimony, evidence and argument as may be
2 pertinent to the charges or to any defense thereto. The
3 Board or its hearing officer may continue a hearing date upon
4 its own motion or upon an accused's motion for one period not
5 to exceed 30 days. The Board or its hearing officer may
6 grant further continuances for periods not to exceed 30 days
7 only upon good cause being shown by the moving party. The
8 non-moving party shall have the opportunity to object to a
9 continuance on the record at a hearing upon the motion to
10 continue. All motions for continuances and any denial or
11 grant thereof shall be in writing. All motions shall be
12 submitted not later than 48 hours before the scheduled
13 hearing unless made upon an emergency basis. In determining
14 whether good cause for a continuance is shown, the Board or
15 its hearing officer shall consider such factors as the volume
16 of cases pending, the nature and complexity of legal issues
17 raised, the diligence of the party making the request, the
18 availability of party's legal representative or witnesses,
19 and the number of previous requests for continuance.
20 (f) Any unlawful act or violation of any of the
21 provisions of this Act upon the part of any licensees
22 employed by a real estate broker or associated by written
23 agreement with the real estate broker, or unlicensed employee
24 of a licensed broker, shall not be cause for the revocation
25 of the license of any such broker, partial or otherwise,
26 unless it appears to the satisfaction of OBRE that the broker
27 had knowledge thereof.
28 (g) OBRE or the Board has power to subpoena any persons
29 or documents for the purpose of investigation or hearing with
30 the same fees and mileage and in the same manner as
31 prescribed by law for judicial procedure in civil cases in
32 courts of this State. The Commissioner, the Director, any
33 member of the Board, a certified court reporter, or a hearing
34 officer shall each have power to administer oaths to
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1 witnesses at any hearing which OBRE is authorized under this
2 Act to conduct.
3 (h) Any circuit court or any judge thereof, upon the
4 application of the accused person, complainant, OBRE, or the
5 Board, may, by order entered, require the attendance of
6 witnesses and the production of relevant books and papers
7 before the Board in any hearing relative to the application
8 for or refusal, recall, suspension, or revocation of a
9 license, and the court or judge may compel obedience to the
10 court's or the judge's order by proceedings for contempt.
11 (i) OBRE, at its expense, shall preserve a record of all
12 proceedings at the formal hearing of any case involving the
13 refusal to issue or the revocation, suspension, or other
14 discipline of a licensee. The notice of hearing, complaint
15 and all other documents in the nature of pleadings and
16 written motions filed in the proceedings, the transcript of
17 testimony, the report of the Board, and the orders of OBRE
18 shall be the record of the proceeding. At all hearings or
19 pre-hearing conferences, OBRE and the accused shall be
20 entitled to have a court reporter in attendance for purposes
21 of transcribing the proceeding or pre-hearing conference at
22 the expense of the party requesting the court reporter's
23 attendance. A copy of the transcribed proceeding shall be
24 available to the other party for the cost of a copy of the
25 transcript.
26 (j) The Board shall present to the Commissioner its
27 written report of its findings and recommendations. A copy
28 of the report shall be served upon the accused, either
29 personally or by certified mail as provided in this Act for
30 the service of the citation. Within 20 days after the
31 service, the accused may present to the Commissioner a motion
32 in writing for a rehearing that shall specify the particular
33 grounds therefor. If the accused shall order and pay for a
34 transcript of the record as provided in this Act, the time
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1 elapsing thereafter and before the transcript is ready for
2 delivery to the accused shall not be counted as part of the
3 20 days. Whenever the Commissioner is satisfied that
4 substantial justice has not been done, the Commissioner may
5 order a rehearing by the Board or other special committee
6 appointed by the Commissioner or may remand the matter to the
7 Board for their reconsideration of the matter based on the
8 pleadings and evidence presented to the Board. In all
9 instances, under this Act, in which the Board has rendered a
10 recommendation to the Commissioner with respect to a
11 particular licensee or applicant, the Commissioner shall, in
12 the event that he or she disagrees with or takes action
13 contrary to the recommendation of the Board, file with the
14 Board and the Secretary of State his specific written reasons
15 of disagreement with the Board. The reasons shall be filed
16 within 60 days of the Board's recommendation to the
17 Commissioner and prior to any contrary action. At the
18 expiration of the time specified for filing a motion for a
19 rehearing, the Commissioner shall have the right to take the
20 action recommended by the Board. Upon the suspension or
21 revocation of a license, the licensee shall be required to
22 surrender his or her license to OBRE, and upon failure or
23 refusal to do so, OBRE shall have the right to seize the
24 license.
25 (k) At any time after the suspension or revocation of
26 any license, OBRE may restore it to the accused without
27 examination, upon the written recommendation of the Board.
28 (l) An order of revocation or suspension or a certified
29 copy thereof, over the seal of OBRE and purporting to be
30 signed by the Commissioner, shall be prima facie proof that:
31 (1) The signature is the genuine signature of the
32 Commissioner.
33 (2) The Commissioner is duly appointed and
34 qualified.
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1 (3) The Board and the members thereof are
2 qualified.
3 Such proof may be rebutted.
4 (m) Notwithstanding any provisions concerning the
5 conduct of hearings and recommendations for disciplinary
6 actions, OBRE as directed by the Commissioner has the
7 authority to negotiate agreements with licensees and
8 applicants resulting in disciplinary consent orders. These
9 consent orders may provide for any of the forms of discipline
10 provided in this Act. These consent orders shall provide
11 that they were not entered into as a result of any coercion
12 by OBRE. Any such consent order shall be filed with the
13 Commissioner along with the Board's recommendation and
14 accepted or rejected by the Commissioner within 60 days of
15 the Board's recommendation.
16 Section 20-65. Temporary suspension. The Commissioner
17 may temporarily suspend the license of a licensee without a
18 hearing, simultaneously with the institution of proceedings
19 for a hearing provided for in Section 20-60 of this Act, if
20 the Commissioner finds that the evidence indicates that the
21 public interest, safety, or welfare imperatively requires
22 emergency action. In the event that the Commissioner
23 temporarily suspends the license without a hearing before the
24 Board, a hearing shall be held within 30 days after the
25 suspension has occurred. The suspended licensee may seek a
26 continuance of the hearing during which the suspension shall
27 remain in effect. The proceeding shall be concluded without
28 appreciable delay.
29 Section 20-70. Restoration of license. At any time
30 after the suspension, revocation, placement on probationary
31 status, or other disciplinary action taken under this Act
32 with reference to any license, OBRE may restore the license
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1 to the licensee without examination, upon the written
2 recommendation of the Board.
3 Section 20-75. Administrative Review Law; certification
4 fee; summary report of final disciplinary actions. All final
5 administrative decisions of OBRE shall be subject to judicial
6 review pursuant to the provisions of the Administrative
7 Review Law and the rules adopted pursuant thereto. The term
8 "administrative decision" is defined in Section 3-101 of the
9 Administrative Review Law. OBRE shall not be required to
10 certify any record or file any answer or otherwise appear
11 unless the party filing the complaint pays to OBRE the
12 certification fee provided for by rule representing costs of
13 the certification. Failure on the part of the plaintiff to
14 make such a deposit shall be grounds for dismissal of the
15 action. OBRE shall prepare from time to time, but in no event
16 less often than once every other month, a summary report of
17 final disciplinary actions taken since the previous summary
18 report. The summary report shall contain a brief description
19 of the action that brought about the discipline and the final
20 disciplinary action taken. The summary report shall be made
21 available upon request.
22 Section 20-80. Penalties; injunction. Any person
23 violating any provision of this Act other than subdivision
24 (4) of subsection (h) of Section 20-20 and other than Section
25 5-15 or any person failing to account for or to remit any
26 moneys coming into his or her possession that belong to
27 others or commingling the money or other property of his or
28 her principal with his or her own, upon conviction for the
29 first offense, is guilty of a Class C misdemeanor, and if a
30 limited liability company, registered limited liability
31 partnership, or corporation, is guilty of a business offense
32 and shall be fined not to exceed $2,000. Upon conviction of a
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1 second or subsequent offense the violator, if an individual,
2 is guilty of a Class A misdemeanor, and if a limited
3 liability company, registered limited liability partnership,
4 or corporation, is guilty of a business offense and shall be
5 fined not less than $2,000 nor more than $5,000. Any person,
6 limited liability company, registered limited liability
7 partnership, or corporation violating any provision of
8 Section 5-15 of this Act, upon conviction for the first
9 offense, if an individual, is guilty of a Class A
10 misdemeanor, and if a limited liability company, registered
11 limited liability partnership, or corporation, is guilty of a
12 business offense and shall be fined not to exceed $10,000.
13 Upon conviction of a second or subsequent offense the
14 violator, if an individual, is guilty of a Class 4 felony,
15 and if a limited liability company, registered limited
16 liability partnership, or corporation, is guilty of a
17 business offense and shall be fined not less than $10,000 nor
18 more than $25,000. Any officer or agent of a corporation or
19 member or agent of a partnership, limited liability company,
20 or registered limited liability partnership who shall
21 personally participate in or be an accessory to any violation
22 of this Act by the corporation, limited liability company,
23 registered limited liability partnership, or partnership
24 shall be subject to the penalties herein prescribed for
25 individuals, and the State's Attorney of the county where the
26 offense is committed shall prosecute all persons violating
27 the provisions of this Act upon proper complaint being made.
28 All fines and penalties shall be deposited in the Real Estate
29 Recovery Fund in the State Treasury. OBRE shall have the duty
30 and the right on behalf of the People of the State of
31 Illinois to originate injunction proceedings against any
32 person acting or purporting to act as a licensee without a
33 license issued under the provisions of this Act. OBRE shall
34 also have the duty and the right on behalf of the People of
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1 the State of Illinois to originate injunction proceedings
2 against any licensee to enjoin acts by the licensee that
3 constitute violations of this Act.
4 Section 20-85. Recovery from Real Estate Recovery Fund.
5 OBRE shall maintain a Real Estate Recovery Fund from which
6 any person aggrieved by an act, representation, transaction,
7 or conduct of a licensee or unlicensed employee of a licensee
8 that is in violation of this Act or the rules promulgated
9 pursuant thereto, constitutes embezzlement of money or
10 property, or results in money or property being unlawfully
11 obtained from any person by false pretenses, artifice,
12 trickery, or forgery or by reason of any fraud,
13 misrepresentation, discrimination, or deceit by or on the
14 part of any such licensee or the unlicensed employee of a
15 licensee and that results in a loss of actual cash money, as
16 opposed to losses in market value, may recover. The aggrieved
17 person may recover, by order of the circuit court of the
18 county where the violation occurred, an amount of not more
19 than $10,000 from the Fund for damages sustained by the act,
20 representation, transaction, or conduct, together with costs
21 of suit and attorney's fees incurred in connection therewith
22 of not to exceed 15% of the amount of the recovery ordered
23 paid from the Fund. However, no licensed broker or
24 salesperson may recover from the Fund unless the court finds
25 that the person suffered a loss resulting from intentional
26 misconduct. The court order shall not include interest on
27 the judgment. The maximum liability against the Fund arising
28 out of any one act shall be as provided in this Section, and
29 the judgment order shall spread the award equitably among all
30 co-owners or otherwise aggrieved persons, if any. The maximum
31 liability against the Fund arising out of the activities of
32 any one licensee or one unlicensed employee of a licensee,
33 since January 1, 1974, shall be $50,000. Nothing in this
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1 Section shall be construed to authorize recovery from the
2 Fund unless the loss of the aggrieved person results from an
3 act or omission of a licensed broker, salesperson, or
4 unlicensed employee who was at the time of the act or
5 omission acting in such capacity or was apparently acting in
6 such capacity and unless the aggrieved person has obtained a
7 valid judgment as provided in Section 20-90 of this Act. No
8 person aggrieved by an act, representation, or transaction
9 that is in violation of the Illinois Real Estate Time-Share
10 Act or the Land Sales Registration Act of 1989 may recover
11 from the Fund.
12 Section 20-90. Collection from Real Estate Recovery
13 Fund; procedure.
14 (a) No action for a judgment that subsequently results
15 in an order for collection from the Real Estate Recovery Fund
16 shall be started later than 2 years after the date on which
17 the aggrieved person knew, or through the use of reasonable
18 diligence should have known, of the acts or omissions giving
19 rise to a right of recovery from the Real Estate Recovery
20 Fund.
21 (b) When any aggrieved person commences action for a
22 judgment that may result in collection from the Real Estate
23 Recovery Fund, the aggrieved person must name as parties
24 defendant to that action any and all individual real estate
25 brokers, real estate salespersons, or their employees who
26 allegedly committed or are responsible for acts or omissions
27 giving rise to a right of recovery from the Real Estate
28 Recovery Fund. Failure to name as parties defendant such
29 individual brokers, salespersons, or their employees shall
30 preclude recovery from the Real Estate Recovery Fund of any
31 portion of any judgment received in such an action. The
32 aggrieved party may also name as additional parties defendant
33 any corporations, limited liability companies, partnerships,
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1 registered limited liability partnership, or other business
2 associations that may be responsible for acts giving rise to
3 a right of recovery from the Real Estate Recovery Fund.
4 (c) When any aggrieved person commences action for a
5 judgment that may result in collection from the Real Estate
6 Recovery Fund, the aggrieved person must notify OBRE in
7 writing to this effect within 7 days of the commencement of
8 the action. Failure to so notify OBRE shall preclude
9 recovery from the Real Estate Recovery Fund of any portion of
10 any judgment received in such an action. After receiving
11 notice of the commencement of such an action, OBRE upon
12 timely application shall be permitted to intervene as a party
13 defendant to that action.
14 (d) When any aggrieved person commences action for a
15 judgment that may result in collection from the Real Estate
16 Recovery Fund, and the aggrieved person is unable to obtain
17 legal and proper service upon the defendant under the
18 provisions of Illinois law concerning service of process in
19 civil actions, the aggrieved person may petition the court
20 where the action to obtain judgment was begun for an order to
21 allow service of legal process on the Commissioner. Service
22 of process on the Commissioner shall be taken and held in
23 that court to be as valid and binding as if due service had
24 been made upon the defendant. In case any process mentioned
25 in this Section is served upon the Commissioner, the
26 Commissioner shall forward a copy of the process by certified
27 mail to the licensee's last address on record with OBRE. Any
28 judgment obtained after service of process on the
29 Commissioner under this Act shall apply to and be enforceable
30 against the Real Estate Recovery Fund only. OBRE may
31 intervene in and defend any such action.
32 (e) When an aggrieved party commences action for a
33 judgment that may result in collection from the Real Estate
34 Recovery Fund, and the court before which that action is
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1 commenced enters judgment by default against the defendant
2 and in favor of the aggrieved party, the court shall upon
3 motion of OBRE set aside that judgment by default. After
4 such a judgment by default has been set aside, OBRE shall
5 appear as party defendant to that action, and thereafter the
6 court shall require proof of the allegations in the pleadings
7 upon which relief is sought.
8 (f) The aggrieved person shall give written notice to
9 OBRE within 30 days of the entry of any judgment that may
10 result in collection from the Real Estate Recovery Fund. The
11 aggrieved person shall provide OBRE within 20 days prior
12 written notice of all supplementary proceedings so as to
13 allow OBRE to participate in all efforts to collect on the
14 judgment.
15 (g) When any aggrieved person recovers a valid judgment
16 in any court of competent jurisdiction against any licensee
17 or an unlicensed employee of any broker, upon the grounds of
18 fraud, misrepresentation, discrimination, or deceit, the
19 aggrieved person may, upon the termination of all
20 proceedings, including review and appeals in connection with
21 the judgment, file a verified claim in the court in which the
22 judgment was entered and, upon 30 days' written notice to
23 OBRE, and to the person against whom the judgment was
24 obtained, may apply to the court for an order directing
25 payment out of the Real Estate Recovery Fund of the amount
26 unpaid upon the judgment, not including interest on the
27 judgment, and subject to the limitations stated in Section
28 20-85 of this Act. The aggrieved person must set out in that
29 verified claim and at an evidentiary hearing to be held by
30 the court upon the application the aggrieved party shall be
31 required to show that the aggrieved person:
32 (1) Is not a spouse of the debtor or the personal
33 representative of such spouse.
34 (2) Has complied with all the requirements of this
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1 Section.
2 (3) Has obtained a judgment stating the amount
3 thereof and the amount owing thereon, not including
4 interest thereon, at the date of the application.
5 (4) Has made all reasonable searches and inquiries
6 to ascertain whether the judgment debtor is possessed of
7 real or personal property or other assets, liable to be
8 sold or applied in satisfaction of the judgment.
9 (5) By such search has discovered no personal or
10 real property or other assets liable to be sold or
11 applied, or has discovered certain of them, describing
12 them as owned by the judgment debtor and liable to be so
13 applied and has taken all necessary action and
14 proceedings for the realization thereof, and the amount
15 thereby realized was insufficient to satisfy the
16 judgment, stating the amount so realized and the balance
17 remaining due on the judgment after application of the
18 amount realized.
19 (6) Has diligently pursued all remedies against all
20 the judgment debtors and all other persons liable to the
21 aggrieved person in the transaction for which recovery is
22 sought from the Real Estate Recovery Fund.
23 The aggrieved person shall also be required to prove the
24 amount of attorney's fees sought to be recovered and the
25 reasonableness of those fees up to the maximum allowed
26 pursuant to Section 20-85 of this Act.
27 (h) The court shall make an order directed to OBRE
28 requiring payment from the Real Estate Recovery Fund of
29 whatever sum it finds to be payable upon the claim, pursuant
30 to and in accordance with the limitations contained in
31 Section 20-85 of this Act, if the court is satisfied, upon
32 the hearing, of the truth of all matters required to be shown
33 by the aggrieved person under subsection (g) of this Section
34 and that the aggrieved person has fully pursued and exhausted
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1 all remedies available for recovering the amount awarded by
2 the judgment of the court.
3 (i) Should OBRE pay from the Real Estate Recovery Fund
4 any amount in settlement of a claim or toward satisfaction of
5 a judgment against a licensed broker or salesperson or an
6 unlicensed employee of a broker, the licensee's license shall
7 be automatically terminated upon the issuance of a court
8 order authorizing payment from the Real Estate Recovery Fund.
9 No petition for restoration of a license shall be heard until
10 repayment has been made in full, plus interest at the rate
11 prescribed in Section 12-109 of the Code of Civil Procedure
12 of the amount paid from the Real Estate Recovery Fund on
13 their account. A discharge in bankruptcy shall not relieve a
14 person from the penalties and disabilities provided in this
15 subsection (i).
16 (j) If, at any time, the money deposited in the Real
17 Estate Recovery Fund is insufficient to satisfy any duly
18 authorized claim or portion thereof, OBRE shall, when
19 sufficient money has been deposited in the Real Estate
20 Recovery Fund, satisfy such unpaid claims or portions
21 thereof, in the order that such claims or portions thereof
22 were originally filed, plus accumulated interest at the rate
23 prescribed in Section 12-109 of the Code of Civil Procedure.
24 Section 20-95. Power of OBRE to defend. When OBRE
25 receives any process, notice, order, or other document
26 provided for or required under Section 20-90 of this Act, it
27 may enter an appearance, file an answer, appear at the court
28 hearing, defend the action, or take whatever other action it
29 deems appropriate on behalf and in the name of the defendant
30 and take recourse through any appropriate method of review on
31 behalf of and in the name of the defendant.
32 Section 20-100. Subrogation of OBRE to rights of
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1 judgment creditor. When, upon the order of the court, OBRE
2 has paid from the Real Estate Recovery Fund any sum to the
3 judgment creditor, OBRE shall be subrogated to all of the
4 rights of the judgment creditor and the judgment creditor
5 shall assign all rights, title, and interest in the judgment
6 to OBRE and any amount and interest so recovered by OBRE on
7 the judgment shall be deposited in the Real Estate Recovery
8 Fund.
9 Section 20-105. Waiver of rights for failure to comply.
10 The failure of an aggrieved person to comply with this Act
11 relating to the Real Estate Recovery Fund shall constitute a
12 waiver of any rights under Sections 20-85 and 20-90 of this
13 Act.
14 Section 20-110. Disciplinary actions of OBRE not
15 limited. Nothing contained in Sections 20-80 through 20-100
16 of this Act limits the authority of OBRE to take disciplinary
17 action against any licensee for a violation of this Act or
18 the rules of OBRE, nor shall the repayment in full of all
19 obligations to the Real Estate Recovery Fund by any licensee
20 nullify or modify the effect of any other disciplinary
21 proceeding brought pursuant to this Act.
22 Section 20-115. Time limit on action. No action may be
23 taken by OBRE against any person for violation of the terms
24 of this Act or its rules unless the action is commenced
25 within 5 years after the occurrence of the alleged violation.
26 Section 20-120. Action to enjoin. Engaging in business
27 as a licensee by any person in violation of this Act is
28 declared to be harmful to the public welfare and to be a
29 public nuisance. An action to enjoin any person from such
30 unlawful activity may be maintained in the name of the People
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1 of the State of Illinois by the Attorney General, by the
2 State's Attorney of the county in which the action is
3 brought, by OBRE, or by any resident citizen. This remedy
4 shall be in addition to other remedies provided for violation
5 of this Act.
6 Section 20-125. No private right of action. Except as
7 otherwise expressly provided for in this Act, nothing in this
8 Act shall be construed to grant to any person a private right
9 of action for damages or to enforce the provisions of this
10 Act or the rules issued under this Act.
11 ARTICLE 25. ADMINISTRATION OF LICENSES
12 Section 25-5. OBRE; powers and duties. OBRE shall
13 exercise the powers and duties prescribed by the Civil
14 Administrative Code of Illinois for the administration of
15 licensing acts and shall exercise such other powers and
16 duties as are prescribed by this Act. OBRE may contract with
17 third parties for services necessary for the proper
18 administration of this Act.
19 Section 25-10. Real Estate Administration and
20 Disciplinary Board; duties. There is created the Real Estate
21 Administration and Disciplinary Board. The Board shall be
22 composed of 9 persons appointed by the Governor. Members
23 shall be appointed to the Board subject to the following
24 conditions:
25 (1) All members shall have been residents and
26 citizens of this State for at least 6 years prior to the
27 date of appointment.
28 (2) Six members shall have been actively engaged as
29 brokers or salespersons or both for at least the 10 years
30 prior to the appointment.
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1 (3) Three members of the Board shall be public
2 members who represent consumer interests.
3 None of these members shall be a person who is licensed
4 under this Act, the spouse of a person licensed under this
5 Act, or a person who has an ownership interest in a real
6 estate brokerage business. The members' terms shall be 4
7 years and the expiration of their terms shall be staggered.
8 Appointments to fill vacancies shall be for the unexpired
9 portion of the term. A member may be reappointed for
10 successive terms but no member shall serve more than 8 years
11 in his or her lifetime. Persons holding office as members of
12 the Board immediately prior to July 1, 1999 under the Real
13 Estate License Act of 1983 shall continue as members of the
14 Board until the expiration of the term for which they were
15 appointed and until their successors are appointed and
16 qualified. The membership of the Board should reasonably
17 reflect the geographic distribution of the licensee
18 population in this State. In making the appointments, the
19 Governor shall give due consideration to the recommendations
20 by members and organizations of the profession. The Governor
21 may terminate the appointment of any member for cause that in
22 the opinion of the Governor reasonably justifies the
23 termination. Cause for termination shall include without
24 limitation misconduct, incapacity, neglect of duty, or
25 missing 4 board meetings during any one calendar year. Each
26 member of the Board shall receive a per diem stipend in an
27 amount to be determined by the Commissioner. Each member
28 shall be paid his or her necessary expenses while engaged in
29 the performance of his or her duties. Such compensation and
30 expenses shall be paid out of the Real Estate License
31 Administration Fund. The Commissioner shall consider the
32 recommendations of the Board on questions involving standards
33 of professional conduct, discipline, and examination of
34 candidates under this Act. OBRE, after notifying and
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1 considering the recommendations of the Board, if any, may
2 issue rules, consistent with the provisions of this Act, for
3 the administration and enforcement thereof and may prescribe
4 forms that shall be used in connection therewith. None of the
5 functions, powers, or duties enumerated in Sections 20-20 and
6 30-5 and subsections (a) and (j) of Section 20-60 of this Act
7 shall be exercised by OBRE except upon the action and report
8 in writing of the Board.
9 Section 25-13. Rules. OBRE, after notifying and
10 considering the recommendations of the Board, if any, shall
11 adopt, promulgate, and issue any rules that may be necessary
12 for the implementation and enforcement of this Act.
13 Section 25-15. Director of Real Estate; duties. There
14 shall be in OBRE a Director of Real Estate, appointed by the
15 Commissioner, who shall hold a currently valid broker's
16 license, which shall be surrendered to OBRE during the
17 appointment. The Director of Real Estate shall report to the
18 Commissioner and shall do the following:
19 (1) act as Chairperson of the Board, ex-officio,
20 without vote;
21 (2) be the direct liaison between OBRE, the
22 profession, and real estate organizations and
23 associations;
24 (3) prepare and circulate to licensees any
25 educational and informational material that OBRE deems
26 necessary for providing guidance or assistance to
27 licensees;
28 (4) appoint any necessary committees to assist in
29 the performance of the functions and duties of OBRE under
30 this Act; and
31 (5) subject to the administrative approval of the
32 Commissioner, supervise all real estate activities of
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1 OBRE.
2 In designating the Director of Real Estate, the
3 Commissioner shall give due consideration to recommendations
4 by members and organizations of the profession.
5 Section 25-20. Staff. OBRE shall employ sufficient staff
6 to carry out the provisions of this Act.
7 Section 25-25. Real Estate Research and Education Fund.
8 A special fund to be known as the Real Estate Research and
9 Education Fund is created and shall be held in trust in the
10 State Treasury. Annually, on September 15th, the State
11 Treasurer shall cause a transfer of $125,000 to the Real
12 Estate Research and Education Fund from the Real Estate
13 License Administration Fund. The Real Estate Research and
14 Education Fund shall be administered by OBRE. Money
15 deposited in the Real Estate Research and Education Fund may
16 be used for research and education at state institutions of
17 higher education or other organizations for research and the
18 advancement of education in the real estate industry. Of the
19 $125,000 annually transferred into the Real Estate Research
20 and Education Fund, $15,000 shall be used to fund a
21 scholarship program for persons of minority racial origin who
22 wish to pursue a course of study in the field of real estate.
23 For the purposes of this Section, "course of study" means a
24 course or courses that are part of a program of courses in
25 the field of real estate designed to further an individual's
26 knowledge or expertise in the field of real estate. These
27 courses shall include without limitation courses that a
28 salesperson licensed under this Act must complete to qualify
29 for a real estate broker's license, courses required to
30 obtain the Graduate Realtors Institute designation, and any
31 other courses or programs offered by accredited colleges,
32 universities, or other institutions of higher education in
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1 Illinois. The scholarship program shall be administered by
2 OBRE or its designee. Moneys in the Real Estate Research and
3 Education Fund may be invested and reinvested in the same
4 manner as funds in the Real Estate Recovery Fund and all
5 earnings, interest, and dividends received from such
6 investments shall be deposited in the Real Estate Research
7 and Education Fund and may be used for the same purposes as
8 moneys transferred to the Real Estate Research and Education
9 Fund.
10 Section 25-30. Real Estate License Administration Fund;
11 audit. A special fund to be known as the Real Estate License
12 Administration Fund is created in the State Treasury. All
13 fees received by OBRE under this Act shall be deposited in
14 the Real Estate License Administration Fund. The moneys
15 deposited in the Real Estate License Administration Fund
16 shall be appropriated to OBRE for expenses of OBRE and the
17 Board in the administration of this Act and for the
18 administration of any Act administered by OBRE providing
19 revenue to this Fund. Moneys in the Real Estate License
20 Administration Fund may be invested and reinvested in the
21 same manner as funds in the Real Estate Recovery Fund. All
22 earnings received from such investment shall be deposited in
23 the Real Estate License Administration Fund and may be used
24 for the same purposes as fees deposited in the Real Estate
25 License Administration Fund. Upon the completion of any audit
26 of OBRE, as prescribed by the Illinois State Auditing Act,
27 which includes an audit of the Real Estate License
28 Administration Fund, OBRE shall make the audit open to
29 inspection by any interested person.
30 Section 25-35. Real Estate Recovery Fund. A special fund
31 to be known as the Real Estate Recovery Fund is created in
32 the State Treasury. The sums received by OBRE pursuant to
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1 the provisions of Sections 20-20, 20-30, and 20-80 through
2 20-100 of this Act shall be deposited into the State Treasury
3 and held in the Real Estate Recovery Fund. The money in the
4 Real Estate Recovery Fund shall be used by OBRE exclusively
5 for carrying out the purposes established by this Act. If,
6 at any time, the balance remaining in the Real Estate
7 Recovery Fund is less than $750,000, the State Treasurer
8 shall cause a transfer of moneys to the Real Estate Recovery
9 Fund from the Real Estate License Administration Fund in an
10 amount necessary to establish a balance of $800,000 in the
11 Real Estate Recovery Fund. These funds may be invested and
12 reinvested in the same manner as authorized for pension funds
13 in Article 14 of the Illinois Pension Code. All earnings,
14 interest, and dividends received from investment of funds in
15 the Real Estate Recovery Fund shall be deposited into the
16 Real Estate License Administration Fund and shall be used for
17 the same purposes as other moneys deposited in the Real
18 Estate License Administration Fund.
19 Section 25-40. Exclusive State powers and functions;
20 municipal powers. It is declared to be the public policy of
21 this State, pursuant to paragraphs (h) and (i) of Section 6
22 of Article VII of the Illinois Constitution of 1970, that any
23 power or function set forth in this Act to be exercised by
24 the State is an exclusive State power or function. Such
25 power or function shall not be exercised concurrently, either
26 directly or indirectly, by any unit of local government,
27 including home rule units, except as otherwise provided in
28 this Act. Nothing in this Section shall be construed to
29 affect or impair the validity of Section 11-11.1-1 of the
30 Illinois Municipal Code, as amended, or to deny to the
31 corporate authorities of any municipality the powers granted
32 in the Illinois Municipal Code to enact ordinances
33 prescribing fair housing practices; defining unfair housing
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1 practices; establishing Fair Housing or Human Relations
2 Commissions and standards for the operation of these
3 commissions in the administration and enforcement of such
4 ordinances; prohibiting discrimination based on race, color,
5 creed, ancestry, national origin or physical or mental
6 handicap in the listing, sale, assignment, exchange,
7 transfer, lease, rental, or financing of real property for
8 the purpose of the residential occupancy thereof; and
9 prescribing penalties for violations of such ordinances.
10 ARTICLE 30. SCHOOLS AND INSTRUCTORS
11 Section 30-5. Licensing of pre-license schools, school
12 branches, and instructors.
13 (a) No person shall operate a pre-license school or
14 school branch without possessing a valid pre-license school
15 or school branch license issued by OBRE. No person shall act
16 as a pre-license instructor at a pre-license school or school
17 branch without possessing a valid pre-license instructor
18 license issued by OBRE. Every person who desires to obtain a
19 pre-license school, school branch, or pre-license instructor
20 license shall make application to OBRE in writing in form and
21 substance satisfactory to OBRE and pay the required fees
22 prescribed by rule. In addition to any other information
23 required to be contained in the application, every
24 application for an original or renewed license shall include
25 the applicant's Social Security number. OBRE shall issue a
26 pre-license school, school branch, or pre-license instructor
27 license to applicants who meet qualification criteria
28 established by rule. OBRE may refuse to issue, suspend,
29 revoke, or otherwise discipline a pre-license school, school
30 branch, or pre-license instructor license or may withdraw
31 approval of a course offered by a pre-license school for good
32 cause. Disciplinary proceedings shall be conducted by the
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1 Board in the same manner as other disciplinary proceedings
2 under this Act.
3 (b) Pre-license schools must allow students to retake a
4 course exam that the student fails at least once within 30
5 days of notice of failure.
6 (c) All pre-license instructors must teach at least one
7 course within the period of licensure or take an instructor
8 training program approved by OBRE in lieu thereof. A
9 pre-license instructor may teach at more than one licensed
10 pre-license school.
11 (d) The term of license for pre-license schools,
12 branches, and instructors shall be 2 years as established by
13 rule.
14 (e) OBRE or the Advisory Council may, after notice,
15 cause a pre-license school to attend an informal conference
16 before the Advisory Council for failure to comply with any
17 requirement for licensure or for failure to comply with any
18 provision of this Act or the rules for the administration of
19 this Act. The Advisory Council shall make a recommendation
20 to the Board as a result of its findings at the conclusion of
21 any such informal conference.
22 Section 30-10. Advisory Council; powers and duties.
23 There is created within OBRE an Advisory Council to be
24 comprised of 7 members appointed by the Governor for 4-year
25 staggered terms. No member shall serve more than 8 years in
26 a lifetime. Three of the members shall be licensees who are
27 current members of the Board, one member shall be a
28 representative of an Illinois real estate trade organization
29 who is not a member of the Board, one member shall be a
30 representative of a licensed pre-license school or continuing
31 education school, and one member shall be a representative of
32 an institution of higher education that offers pre-license
33 and continuing education courses. The Director shall serve
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1 as the chairman of the Advisory Council, ex officio, without
2 vote. The Advisory Council shall recommend criteria for the
3 licensing of pre-license schools, pre-license instructors,
4 continuing education schools, and continuing education
5 instructors; review applications for these licenses to
6 determine if the applicants meet the qualifications for
7 licensure established in this Act and by rule; approve
8 pre-license school and continuing education curricula; and
9 make recommendations to the Board regarding rules to be
10 adopted for the administration of the education provisions of
11 this Act.
12 Section 30-15. Licensing of continuing education
13 schools; approval of courses.
14 (a) Only continuing education schools in possession of a
15 valid continuing education school license may provide real
16 estate continuing education courses that will satisfy the
17 requirements of this Act. Pre-license schools licensed to
18 offer pre-license education courses for salespersons and
19 brokers shall qualify for a continuing education school
20 license upon completion of an application and the submission
21 of the required fee. Every entity that desires to obtain a
22 continuing education school license shall make application to
23 OBRE in writing in forms prescribed by OBRE and pay the fee
24 prescribed by rule. In addition to any other information
25 required to be contained in the application, every
26 application for an original or renewed license shall include
27 the applicant's Social Security number.
28 (b) The criteria for a continuing education license
29 shall include the following:
30 (1) A sound financial base for establishing,
31 promoting, and delivering the necessary courses. Budget
32 planning for the School's courses should be clearly
33 projected.
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1 (2) A sufficient number of qualified, licensed
2 instructors as provided by rule.
3 (3) Adequate support personnel to assist with
4 administrative matters and technical assistance.
5 (4) Maintenance and availability of records of
6 participation for licensees.
7 (5) The ability to provide each participant who
8 successfully completes an approved program with a
9 certificate of completion signed by the administrator of
10 a licensed continuing education school on forms provided
11 by OBRE.
12 (6) The continuing education school must have a
13 written policy dealing with procedures for the management
14 of grievances and fee refunds.
15 (7) The continuing education school shall maintain
16 lesson plans and examinations for each course.
17 (8) The continuing education school shall require a
18 70% passing grade for successful completion of any
19 continuing education course.
20 (9) The continuing education school shall identify
21 and use instructors who will teach in a planned program.
22 Suggested criteria for instructor selections include:
23 (A) appropriate credentials;
24 (B) competence as a teacher;
25 (C) knowledge of content area; and
26 (D) qualification by experience.
27 (c) Advertising and promotion of continuing education
28 activities must be carried out in a responsible fashion,
29 clearly showing the educational objectives of the activity,
30 the nature of the audience that may benefit from the
31 activity, the cost of the activity to the participant and the
32 items covered by the cost, the amount of credit that can be
33 earned, and the credentials of the faculty.
34 (d) OBRE may or upon request of the Advisory Council
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1 shall, after notice, cause a continuing education school to
2 attend an informal conference before the Advisory Council for
3 failure to comply with any requirement for licensure or for
4 failure to comply with any provision of this Act or the rules
5 for the administration of this Act. The Advisory Council
6 shall make a recommendation to the Board as a result of its
7 findings at the conclusion of any such informal conference.
8 (e) All continuing education schools shall maintain
9 these minimum criteria and pay the required fee in order to
10 retain their continuing education school license.
11 (f) All continuing education schools shall submit, at
12 the time of initial application and with each license
13 renewal, a list of courses with course materials to be
14 offered by the continuing education school. OBRE, however,
15 shall establish a mechanism whereby continuing education
16 schools may apply for and obtain approval for continuing
17 education courses that are submitted after the time of
18 initial application or renewal. OBRE shall provide to each
19 continuing education school a certificate for each approved
20 continuing education course. All continuing education
21 courses shall be valid for the period coinciding with the
22 term of license of the continuing education school. All
23 continuing education schools shall provide a copy of the
24 certificate of the continuing education course within the
25 course materials given to each student or shall display a
26 copy of the certificate of the continuing education course in
27 a conspicuous place at the location of the class.
28 (g) Each continuing education school shall provide to
29 OBRE a monthly report in a format determined by OBRE, with
30 information concerning students who successfully completed
31 all approved continuing education courses offered by the
32 continuing education school for the prior month.
33 (h) OBRE, upon the recommendation of the Advisory
34 Council, may temporarily suspend a licensed continuing
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1 education school's approved courses without hearing and
2 refuse to accept successful completion of or participation in
3 any of these continuing education courses for continuing
4 education credit from that school upon the failure of that
5 continuing education school to comply with the provisions of
6 this Act or the rules for the administration of this Act,
7 until such time as OBRE receives satisfactory assurance of
8 compliance. OBRE shall notify the continuing education
9 school of the noncompliance and may initiate disciplinary
10 proceedings pursuant to this Act. OBRE may refuse to issue,
11 suspend, revoke, or otherwise discipline the license of a
12 continuing education school or may withdraw approval of a
13 continuing education course for good cause. Failure to
14 comply with the requirements of this Section or any other
15 requirements established by rule shall be deemed to be good
16 cause. Disciplinary proceedings shall be conducted by the
17 Board in the same manner as other disciplinary proceedings
18 under this Act.
19 Section 30-20. Fees for continuing education school
20 license; renewal; term. All applications for a continuing
21 education school license shall be accompanied by a
22 nonrefundable application fee in an amount established by
23 rule. Application and renewal fees shall be established by
24 rule but shall not be less than $2,000 per year. All
25 continuing education schools shall be required to submit a
26 renewal application, the required fee as established by rule,
27 and a listing of the courses to be offered during the year to
28 renew their continuing education school licenses. The term
29 for a continuing education school license shall be 2 years
30 and as established by rule. The fees collected under this
31 Article 30 shall be deposited in the Real Estate License
32 Administration Fund and shall be used to defray the cost of
33 administration of the program and per diem of the Advisory
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1 Council as determined by the Commissioner.
2 Section 30-25. Licensing of continuing education
3 instructors.
4 (a) Only persons approved by the Advisory Council and in
5 possession of a valid continuing education instructor license
6 issued by OBRE may instruct continuing education courses.
7 (b) Every person who desires to obtain a continuing
8 education instructor license shall make application to OBRE
9 in writing on forms prescribed by the Office, accompanied by
10 the fee prescribed by rule. In addition to any other
11 information required to be contained in the application,
12 every application for an original or renewed license shall
13 include the applicant's Social Security number. OBRE shall
14 issue a continuing education instructor license to applicants
15 who meet qualification criteria established by this Act or
16 rule.
17 (c) OBRE may refuse to issue, suspend, revoke, or
18 otherwise discipline a continuing education instructor for
19 good cause. Disciplinary proceedings shall be conducted by
20 the Board in the same manner as other disciplinary
21 proceedings under this Act. The term of a license for a
22 continuing education instructor shall be 2 years and as
23 established by rule. All Continuing Education Instructors
24 must teach at least one course within the period of licensure
25 or take an instructor training program approved by OBRE in
26 lieu thereof.
27 Section 30-30. Recommendation of rules. The Advisory
28 Council shall recommend to the Board rules that provide for
29 the administration of this Article 30. These rules shall
30 include without limitation the following provisions:
31 (1) The rules shall define what constitutes a
32 school or a school branch offering work in subjects
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1 relating to real estate transactions that shall include
2 the subjects upon which an applicant is examined in
3 determining fitness to receive a license. The rules
4 shall provide for the establishment of a uniform and
5 reasonable standard of instruction and maintenance to be
6 observed by these schools.
7 (2) The rules shall establish minimum criteria to
8 qualify for and maintain a license as a pre-license
9 school, pre-license school instructor, continuing
10 education school, and continuing education instructor.
11 (3) The rules shall provide for acts and omissions
12 for which the license of a pre-license school,
13 pre-license school instructor, continuing education
14 school, or continuing education instructor may be
15 disciplined under this Act.
16 (4) The rules shall provide for the term, date of
17 expiration, and renewal process for the licenses of
18 pre-license schools, pre-license school instructors,
19 continuing education schools, and continuing education
20 school instructors.
21 ARTICLE 35. TRANSITION RULES
22 Section 35-5. Savings provisions.
23 (a) This Act is intended to replace the Real Estate
24 License Act of 1983 in all respects.
25 (b) Beginning July 1, 1999, the rights, powers, and
26 duties exercised by the Office of Banks and Real Estate under
27 the Real Estate License Act of 1983 shall continue to be
28 vested in, be the obligation of, and shall be exercised by
29 the Office of Banks and Real Estate under the provisions of
30 this Act.
31 (c) This Act does not affect any act done, ratified, or
32 cancelled, or any right occurring or established, or any
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1 action or proceeding had or commenced in an administrative,
2 civil, or criminal cause before July 1, 1999, by the Office
3 of Banks and Real Estate under the Real Estate License Act of
4 1983, and those actions or proceedings may be prosecuted and
5 continued by the Office of Banks and Real Estate under this
6 Act.
7 (d) This Act does not affect any license, certificate,
8 permit, or other form of licensure or authorization issued by
9 the Office of Banks and Real Estate under the Real Estate
10 License Act of 1983, and all such licenses, certificates,
11 permits, or other form of licensure or authorization shall
12 continue to be valid under the terms and conditions of this
13 Act.
14 (e) The rules adopted by the Office of Banks and Real
15 Estate relating to the Real Estate License Act of 1983,
16 unless inconsistent with the provisions of this Act, are not
17 affected by this Act, and on July 1, 1999 those rules become
18 the rules under this Act. The Office of Banks and Real
19 Estate shall, as soon as practicable, adopt new or amended
20 rules consistent with the provisions of this Act.
21 (f) This Act does not affect any discipline, suspension,
22 or termination taken under the Real Estate License Act of
23 1983 and that discipline, suspension, or termination shall be
24 continued under this Act.
25 (g) This Act does not affect any appointments, term
26 limitations, years served, or other matters relating to
27 individuals serving on any board or council under the Real
28 Estate License Act of 1983, and these appointments, term
29 limitations, years served, and other matters shall be
30 continued under this Act.
31 Section 35-10. Money in Funds. Transfer of moneys and
32 appropriations moneys held in or appropriations to the Real
33 Estate License Administration Fund, Real Estate Recovery
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1 Fund, or Real Estate Research and Education Fund for the
2 purpose of administering and enforcing the Real Estate
3 License Act of 1983 shall be transferred to and held in those
4 same funds for the purpose of administering and enforcing the
5 provisions of this Act.
6 ARTICLE 905. AMENDATORY PROVISIONS
7 Section 905-5. The Regulatory Agency Sunset Act is
8 amended by changing Section 4.10 and adding Section 4.19 as
9 follows:
10 (5 ILCS 80/4.10) (from Ch. 127, par. 1904.10)
11 Sec. 4.10. The following Acts are repealed December 31,
12 1999:
13 The Fire Equipment Distributor and Employee Regulation
14 Act.
15 The Professional Engineering Practice Act of 1989.
16 The Structural Engineering Licensing Act of 1989.
17 The Illinois Architecture Practice Act of 1989.
18 The Illinois Landscape Architecture Act of 1989.
19 The Illinois Professional Land Surveyor Act of 1989.
20 The Land Sales Registration Act of 1989.
21 The Real Estate License Act of 1983.
22 (Source: P.A. 86-667; 86-702; 86-711; 86-925; 86-932; 86-987;
23 86-1007; 86-1028.)
24 (5 ILCS 80/4.19 new)
25 Sec. 4.19. Act repealed on January 1, 2009. The
26 following Act is repealed on January 1, 2009:
27 The Real Estate License Act of 1999.
28 Section 905-10. The Civil Administrative Code of
29 Illinois is amended by changing Section 60 as follows:
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1 (20 ILCS 2105/60) (from Ch. 127, par. 60)
2 Sec. 60. Powers and duties. The Department of
3 Professional Regulation shall have, subject to the provisions
4 of this Act, the following powers and duties:
5 1. To authorize examinations in English to ascertain the
6 qualifications and fitness of applicants to exercise the
7 profession, trade, or occupation for which the examination is
8 held.
9 2. To prescribe rules and regulations for a fair and
10 wholly impartial method of examination of candidates to
11 exercise the respective professions, trades, or occupations.
12 3. To pass upon the qualifications of applicants for
13 licenses, certificates, and authorities, whether by
14 examination, by reciprocity, or by endorsement.
15 4. To prescribe rules and regulations defining, for the
16 respective professions, trades, and occupations, what shall
17 constitute a school, college, or university, or department of
18 a university, or other institutions, reputable and in good
19 standing and to determine the reputability and good standing
20 of a school, college, or university, or department of a
21 university, or other institution, reputable and in good
22 standing by reference to a compliance with such rules and
23 regulations: provided, that no school, college, or
24 university, or department of a university or other
25 institution that refuses admittance to applicants solely on
26 account of race, color, creed, sex, or national origin shall
27 be considered reputable and in good standing.
28 5. To conduct hearings on proceedings to revoke,
29 suspend, refuse to renew, place on probationary status, or
30 take other disciplinary action as may be authorized in any
31 licensing Act administered by the Department with regard to
32 licenses, certificates, or authorities of persons exercising
33 the respective professions, trades, or occupations, and to
34 revoke, suspend, refuse to renew, place on probationary
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1 status, or take other disciplinary action as may be
2 authorized in any licensing Act administered by the
3 Department with regard to such licenses, certificates, or
4 authorities. The Department shall issue a monthly
5 disciplinary report. The Department shall deny any license
6 or renewal authorized by this Act to any person who has
7 defaulted on an educational loan or scholarship provided by
8 or guaranteed by the Illinois Student Assistance Commission
9 or any governmental agency of this State; however, the
10 Department may issue a license or renewal if the
11 aforementioned persons have established a satisfactory
12 repayment record as determined by the Illinois Student
13 Assistance Commission or other appropriate governmental
14 agency of this State. Additionally, beginning June 1, 1996,
15 any license issued by the Department may be suspended or
16 revoked if the Department, after the opportunity for a
17 hearing under the appropriate licensing Act, finds that the
18 licensee has failed to make satisfactory repayment to the
19 Illinois Student Assistance Commission for a delinquent or
20 defaulted loan. For the purposes of this Section,
21 "satisfactory repayment record" shall be defined by rule. The
22 Department shall refuse to issue or renew a license to, or
23 shall suspend or revoke a license of, any person who, after
24 receiving notice, fails to comply with a subpoena or warrant
25 relating to a paternity or child support proceeding.
26 However, the Department may issue a license or renewal upon
27 compliance with the subpoena or warrant.
28 The Department, without further process or hearings,
29 shall revoke, suspend, or deny any license or renewal
30 authorized by this Act to a person who is certified by the
31 Illinois Department of Public Aid as being more than 30 days
32 delinquent in complying with a child support order; the
33 Department may, however, issue a license or renewal if the
34 person has established a satisfactory repayment record as
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1 determined by the Illinois Department of Public Aid. The
2 Department may implement this paragraph as added by Public
3 Act 89-6 through the use of emergency rules in accordance
4 with Section 5-45 of the Illinois Administrative Procedure
5 Act. For purposes of the Illinois Administrative Procedure
6 Act, the adoption of rules to implement this paragraph shall
7 be considered an emergency and necessary for the public
8 interest, safety, and welfare.
9 6. To transfer jurisdiction of any realty under the
10 control of the Department to any other Department of the
11 State Government, or to acquire or accept Federal lands, when
12 such transfer, acquisition or acceptance is advantageous to
13 the State and is approved in writing by the Governor.
14 7. To formulate rules and regulations as may be
15 necessary for the enforcement of any act administered by the
16 Department.
17 8. To exchange with the Illinois Department of Public
18 Aid information that may be necessary for the enforcement of
19 child support orders entered pursuant to the Illinois Public
20 Aid Code, the Illinois Marriage and Dissolution of Marriage
21 Act, the Non-Support of Spouse and Children Act, the Revised
22 Uniform Reciprocal Enforcement of Support Act, the Uniform
23 Interstate Family Support Act, or the Illinois Parentage Act
24 of 1984. Notwithstanding any provisions in this Code to the
25 contrary, the Department of Professional Regulation shall not
26 be liable under any federal or State law to any person for
27 any disclosure of information to the Illinois Department of
28 Public Aid under this paragraph 8 or for any other action
29 taken in good faith to comply with the requirements of this
30 paragraph 8.
31 9. To perform such other duties as may be prescribed by
32 law.
33 The Department may, when a fee is payable to the
34 Department for a wall certificate of registration provided by
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1 the Department of Central Management Services, require that
2 portion of the payment for printing and distribution costs be
3 made directly or through the Department, to the Department of
4 Central Management Services for deposit in the Paper and
5 Printing Revolving Fund, the remainder shall be deposited in
6 the General Revenue Fund.
7 For the purpose of securing and preparing evidence, and
8 for the purchase of controlled substances, professional
9 services, and equipment necessary for enforcement activities,
10 recoupment of investigative costs and other activities
11 directed at suppressing the misuse and abuse of controlled
12 substances, including those activities set forth in Sections
13 504 and 508 of the Illinois Controlled Substances Act, the
14 Director and agents appointed and authorized by the Director
15 may expend such sums from the Professional Regulation
16 Evidence Fund as the Director deems necessary from the
17 amounts appropriated for that purpose and such sums may be
18 advanced to the agent when the Director deems such procedure
19 to be in the public interest. Sums for the purchase of
20 controlled substances, professional services, and equipment
21 necessary for enforcement activities and other activities as
22 set forth in this Section shall be advanced to the agent who
23 is to make such purchase from the Professional Regulation
24 Evidence Fund on vouchers signed by the Director. The
25 Director and such agents are authorized to maintain one or
26 more commercial checking accounts with any State banking
27 corporation or corporations organized under or subject to the
28 Illinois Banking Act for the deposit and withdrawal of moneys
29 to be used for the purposes set forth in this Section;
30 provided, that no check may be written nor any withdrawal
31 made from any such account except upon the written signatures
32 of 2 persons designated by the Director to write such checks
33 and make such withdrawals. Vouchers for such expenditures
34 must be signed by the Director and all such expenditures
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1 shall be audited by the Director and the audit shall be
2 submitted to the Department of Central Management Services
3 for approval.
4 Whenever the Department is authorized or required by law
5 to consider some aspect of criminal history record
6 information for the purpose of carrying out its statutory
7 powers and responsibilities, then, upon request and payment
8 of fees in conformance with the requirements of subsection 22
9 of Section 55a of the Civil Administrative Code of Illinois,
10 the Department of State Police is authorized to furnish,
11 pursuant to positive identification, such information
12 contained in State files as is necessary to fulfill the
13 request.
14 The provisions of this Section do not apply to private
15 business and vocational schools as defined by Section 1 of
16 the Private Business and Vocational Schools Act.
17 Beginning July 1, 1995, this Section does not apply to
18 those professions, trades, and occupations licensed under the
19 Real Estate License Act of 1999 1983 nor does it apply to any
20 permits, certificates, or other authorizations to do business
21 provided for in the Land Sales Registration Act of 1989 or
22 the Illinois Real Estate Time-Share Act.
23 (Source: P.A. 89-6, eff. 3-6-95; 89-23, eff. 7-1-95; 89-237,
24 eff. 8-4-95; 89-411, eff. 6-1-96; 89-626, eff. 8-9-96; 90-18,
25 eff. 7-1-97.)
26 Section 905-15. The Residential Mortgage License Act of
27 1987 is amended by changing Section 1-4 as follows:
28 (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
29 Sec. 1-4. Definitions.
30 (a) "Residential real property" or "residential real
31 estate" shall mean real property located in this State
32 improved by a one-to-four family dwelling used or occupied,
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1 wholly or partly, as the home or residence of one or more
2 persons and may refer, subject to regulations of the
3 Commissioner, to unimproved real property upon which those
4 kinds dwellings are to be constructed.
5 (b) "Making a residential mortgage loan" or "funding a
6 residential mortgage loan" shall mean for compensation or
7 gain, either directly or indirectly, advancing funds or
8 making a commitment to advance funds to a loan applicant for
9 a residential mortgage loan.
10 (c) "Soliciting, processing, placing, or negotiating a
11 residential mortgage loan" shall mean for compensation or
12 gain, either directly or indirectly, accepting or offering to
13 accept an application for a residential mortgage loan,
14 assisting or offering to assist in the processing of an
15 application for a residential mortgage loan on behalf of a
16 borrower, or negotiating or offering to negotiate the terms
17 or conditions of a residential mortgage loan with a lender on
18 behalf of a borrower including, but not limited to, the
19 submission of credit packages for the approval of lenders,
20 the preparation of residential mortgage loan closing
21 documents, including a closing in the name of a broker.
22 (d) "Exempt entity" shall mean the following:
23 (1) (i) Any banking organization or foreign banking
24 corporation licensed by the Illinois Commissioner of
25 Banks and Real Estate or the United States Comptroller of
26 the Currency to transact business in this State; (ii) any
27 national bank, federally chartered savings and loan
28 association, federal savings bank, federal credit union;
29 (iii) any pension trust, bank trust, or bank trust
30 company; (iv) any savings and loan association, savings
31 bank, or credit union organized under the laws of this or
32 any other state; (v) any Illinois Consumer Installment
33 Loan Act licensee; (vi) any insurance company authorized
34 to transact business in this State; (vii) any entity
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1 engaged solely in commercial mortgage lending; (viii) any
2 service corporation of a savings and loan association or
3 savings bank organized under the laws of this State or
4 the service corporation of a federally chartered savings
5 and loan association or savings bank having its principal
6 place of business in this State, other than a service
7 corporation licensed or entitled to reciprocity under the
8 Real Estate License Act of 1999 1983; or (ix) any first
9 tier subsidiary of a bank, the charter of which is issued
10 under the Illinois Banking Act by the Illinois
11 Commissioner of Banks and Real Estate, or the first tier
12 subsidiary of a bank chartered by the United States
13 Comptroller of the Currency and that has its principal
14 place of business in this State, provided that the first
15 tier subsidiary is regularly examined by the Illinois
16 Commissioner of Banks and Real Estate or the Comptroller
17 of the Currency, or a consumer compliance examination is
18 regularly conducted by the Federal Reserve Board.
19 (2) Any person or entity making or acquiring
20 residential mortgage loans with his or her own funds for
21 his or her own investment without intent to make,
22 acquire, or resell more than 10 residential mortgage
23 loans in any one calendar year.
24 (3) Any person employed by a licensee to assist in
25 the performance of the activities regulated by this Act
26 who is compensated in any manner by only one licensee.
27 (4) Any person licensed pursuant to the Real Estate
28 License Act of 1999 1983, who engages only in the taking
29 of applications and credit and appraisal information to
30 forward to a licensee or an exempt entity under this Act
31 and who is compensated by either a licensee or an exempt
32 entity under this Act, but is not compensated by either
33 the buyer (applicant) or the seller.
34 (5) Any individual, corporation, partnership, or
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1 other entity that originates, services, or brokers
2 residential mortgage loans, as these activities are
3 defined in this Act, and who or which receives no
4 compensation for those activities, subject to the
5 Commissioner's regulations with regard to the nature and
6 amount of compensation.
7 (6) A person who prepares supporting documentation
8 for a residential mortgage loan application taken by a
9 licensee and performs ministerial functions pursuant to
10 specific instructions of the licensee who neither
11 requires nor permits the preparer to exercise his or her
12 discretion or judgment; provided that this activity is
13 engaged in pursuant to a binding, written agreement
14 between the licensee and the preparer that:
15 (A) holds the licensee fully accountable for
16 the preparer's action; and
17 (B) otherwise meets the requirements of this
18 Section and this Act, does not undermine the
19 purposes of this Act, and is approved by the
20 Commissioner.
21 (e) "Licensee" or "residential mortgage licensee" shall
22 mean a person, partnership, association, corporation, or any
23 other entity who or which is licensed pursuant to this Act to
24 engage in the activities regulated by this Act.
25 (f) "Mortgage loan" "residential mortgage loan" or "home
26 mortgage loan" shall mean a loan to or for the benefit of any
27 natural person made primarily for personal, family, or
28 household use, primarily secured by either a mortgage on
29 residential real property or certificates of stock or other
30 evidence of ownership interests in and proprietary leases
31 from, corporations, partnerships, or limited liability
32 companies formed for the purpose of cooperative ownership of
33 residential real property, all located in Illinois.
34 (g) "Lender" shall mean any person, partnership,
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1 association, corporation, or any other entity who either
2 lends or invests money in residential mortgage loans.
3 (h) "Ultimate equitable owner" shall mean a person who,
4 directly or indirectly, owns or controls an ownership
5 interest in a corporation, foreign corporation, alien
6 business organization, trust, or any other form of business
7 organization regardless of whether the person owns or
8 controls the ownership interest through one or more persons
9 or one or more proxies, powers of attorney, nominees,
10 corporations, associations, partnerships, trusts, joint stock
11 companies, or other entities or devices, or any combination
12 thereof.
13 (i) "Residential mortgage financing transaction" shall
14 mean the negotiation, acquisition, sale, or arrangement for
15 or the offer to negotiate, acquire, sell, or arrange for, a
16 residential mortgage loan or residential mortgage loan
17 commitment.
18 (j) "Personal residence address" shall mean a street
19 address and shall not include a post office box number.
20 (k) "Residential mortgage loan commitment" shall mean a
21 contract for residential mortgage loan financing.
22 (l) "Party to a residential mortgage financing
23 transaction" shall mean a borrower, lender, or loan broker in
24 a residential mortgage financing transaction.
25 (m) "Payments" shall mean payment of all or any of the
26 following: principal, interest and escrow reserves for taxes,
27 insurance and other related reserves, and reimbursement for
28 lender advances.
29 (n) "Commissioner" shall mean the Commissioner of Banks
30 and Real Estate or a person authorized by the Commissioner,
31 the Office of Banks and Real Estate Act, or this Act to act
32 in the Commissioner's stead.
33 (o) "Loan brokering", "brokering", or "brokerage
34 service" shall mean the act of helping to obtain from another
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1 entity, for a borrower, a loan secured by residential real
2 estate situated in Illinois or assisting a borrower in
3 obtaining a loan secured by residential real estate situated
4 in Illinois in return for consideration to be paid by either
5 the borrower or the lender including, but not limited to,
6 contracting for the delivery of residential mortgage loans to
7 a third party lender and soliciting, processing, placing, or
8 negotiating residential mortgage loans.
9 (p) "Loan broker" or "broker" shall mean a person,
10 partnership, association, corporation, or limited liability
11 company, other than those persons, partnerships,
12 associations, corporations, or limited liability companies
13 exempted from licensing pursuant to Section 1-4, subsection
14 (d), of this Act, who performs the activities described in
15 subsections (c) and (o) of this Section.
16 (q) "Servicing" shall mean the collection or remittance
17 for or the right or obligation to collect or remit for any
18 lender, noteowner, noteholder, or for a licensee's own
19 account, of payments, interests, principal, and trust items
20 such as hazard insurance and taxes on a residential mortgage
21 loan in accordance with the terms of the residential mortgage
22 loan; and includes loan payment follow-up, delinquency loan
23 follow-up, loan analysis and any notifications to the
24 borrower that are necessary to enable the borrower to keep
25 the loan current and in good standing.
26 (r) "Full service office" shall mean office and staff in
27 Illinois reasonably adequate to handle efficiently
28 communications, questions, and other matters relating to any
29 application for, or an existing home mortgage secured by
30 residential real estate situated in Illinois with respect to
31 which the licensee is brokering, funding originating,
32 purchasing, or servicing. The management and operation of
33 each full service office must include observance of good
34 business practices such as adequate, organized, and accurate
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1 books and records; ample phone lines, hours of business,
2 staff training and supervision, and provision for a mechanism
3 to resolve consumer inquiries, complaints, and problems. The
4 Commissioner shall issue regulations with regard to these
5 requirements and shall include an evaluation of compliance
6 with this Section in his or her periodic examination of each
7 licensee.
8 (s) "Purchasing" shall mean the purchase of conventional
9 or government-insured mortgage loans secured by residential
10 real estate situated in Illinois from either the lender or
11 from the secondary market.
12 (t) "Borrower" shall mean the person or persons who seek
13 the services of a loan broker, originator, or lender.
14 (u) "Originating" shall mean the issuing of commitments
15 for and funding of residential mortgage loans.
16 (v) "Loan brokerage agreement" shall mean a written
17 agreement in which a broker or loan broker agrees to do
18 either of the following:
19 (1) obtain a residential mortgage loan for the
20 borrower or assist the borrower in obtaining a
21 residential mortgage loan; or
22 (2) consider making a residential mortgage loan to
23 the borrower.
24 (w) "Advertisement" shall mean the attempt by
25 publication, dissemination, or circulation to induce,
26 directly or indirectly, any person to enter into a
27 residential mortgage loan agreement or residential mortgage
28 loan brokerage agreement relative to a mortgage secured by
29 residential real estate situated in Illinois.
30 (x) "Residential Mortgage Board" shall mean the
31 Residential Mortgage Board created in Section 1-5 of this
32 Act.
33 (y) "Government-insured mortgage loan" shall mean any
34 mortgage loan made on the security of residential real estate
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1 insured by the Department of Housing and Urban Development or
2 Farmers Home Loan Administration, or guaranteed by the
3 Veterans Administration.
4 (z) "Annual audit" shall mean a certified audit of the
5 licensee's books and records and systems of internal control
6 performed by a certified public accountant in accordance with
7 generally accepted accounting principles and generally
8 accepted auditing standards.
9 (aa) "Financial institution" shall mean a savings and
10 loan association, savings bank, credit union, or a bank
11 organized under the laws of Illinois or a savings and loan
12 association, savings bank, credit union or a bank organized
13 under the laws of the United States and headquartered in
14 Illinois.
15 (bb) "Escrow agent" shall mean a third party, individual
16 or entity charged with the fiduciary obligation for holding
17 escrow funds on a residential mortgage loan pending final
18 payout of those funds in accordance with the terms of the
19 residential mortgage loan.
20 (cc) "Net worth" shall have the meaning ascribed thereto
21 in Section 3-5 of this Act.
22 (dd) "Affiliate" shall mean:
23 (1) any entity that directly controls or is
24 controlled by the licensee and any other company that is
25 directly affecting activities regulated by this Act that
26 is controlled by the company that controls the licensee;
27 (2) any entity:
28 (A) that is controlled, directly or
29 indirectly, by a trust or otherwise, by or for the
30 benefit of shareholders who beneficially or
31 otherwise control, directly or indirectly, by trust
32 or otherwise, the licensee or any company that
33 controls the licensee; or
34 (B) a majority of the directors or trustees of
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1 which constitute a majority of the persons holding
2 any such office with the licensee or any company
3 that controls the licensee;
4 (3) any company, including a real estate investment
5 trust, that is sponsored and advised on a contractual
6 basis by the licensee or any subsidiary or affiliate of
7 the licensee.
8 The Commissioner may define by rule and regulation any
9 terms used in this Act for the efficient and clear
10 administration of this Act.
11 (ee) "First tier subsidiary" shall be defined by
12 regulation incorporating the comparable definitions used by
13 the Office of the Comptroller of the Currency and the
14 Illinois Commissioner of Banks and Real Estate.
15 (ff) "Gross delinquency rate" means the quotient
16 determined by dividing (1) the sum of (i) the number of
17 government-insured residential mortgage loans funded or
18 purchased by a licensee in the preceding calendar year that
19 are delinquent and (ii) the number of conventional
20 residential mortgage loans funded or purchased by the
21 licensee in the preceding calendar year that are delinquent
22 by (2) the sum of (i) the number of government-insured
23 residential mortgage loans funded or purchased by the
24 licensee in the preceding calendar year and (ii) the number
25 of conventional residential mortgage loans funded or
26 purchased by the licensee in the preceding calendar year.
27 (gg) "Delinquency rate factor" means the factor set by
28 rule of the Commissioner that is multiplied by the average
29 gross delinquency rate of licensees, determined annually for
30 the immediately preceding calendar year, for the purpose of
31 determining which licensees shall be examined by the
32 Commissioner pursuant to subsection (b) of Section 4-8 of
33 this Act.
34 (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.)
HB2688 Engrossed -101- LRB9009844LDpk
1 Section 905-20. The Title Insurance Act is amended by
2 changing Section 3 as follows:
3 (215 ILCS 155/3) (from Ch. 73, par. 1403)
4 Sec. 3. As used in this Act, the words and phrases
5 following shall have the following meanings unless the
6 context requires otherwise:
7 (1) "Business of guaranteeing or insuring titles to real
8 estate" means the making as insurer or guarantor, or
9 proposing to make as insurer or guarantor, of any contract or
10 policy of title insurance; the transacting or proposing to
11 transact, any phase of title insurance, including, as an
12 insurer or guarantor, examination of title, solicitation,
13 negotiation preliminary to the execution of a contract of
14 title insurance, and execution of a contract of title
15 insurance, insuring and transacting matters subsequent to the
16 execution of the contract and arising out of it, other than
17 reinsurance; the performance of any service in conjunction
18 with the issuance of any contract or policy of title
19 insurance, including but not limited to the handling of any
20 escrow, settlement or closing, if conducted by a title
21 insurance company or title insurance agent; or the doing, or
22 proposing to do, any business in substance equivalent to any
23 of the foregoing in a manner designed to evade the provisions
24 of this Act.
25 (2) "Title insurance company" means any domestic company
26 organized under the laws of this State for the purpose of
27 conducting the business of guaranteeing or insuring titles to
28 real estate and any title insurance company organized under
29 the laws of another State, the District of Columbia or
30 foreign government and authorized to transact the business of
31 guaranteeing or insuring titles to real estate in this State.
32 (3) "Title insurance agent" means a person, firm,
33 partnership, association, corporation or other legal entity
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1 registered by a title insurance company and authorized by
2 such company to determine insurability of title in accordance
3 with generally acceptable underwriting rules and standards in
4 reliance on either the public records or a search package
5 prepared from a title plant, or both, and authorized in
6 addition to do any of the following: act as an escrow agent,
7 solicit title insurance, collect premiums, issue title
8 reports, binders or commitments to insure and policies in its
9 behalf, provided, however, the term "title insurance agent"
10 shall not include officers and salaried employees of any
11 title insurance company.
12 (4) "Producer of title business" is any person, firm,
13 partnership, association, corporation or other legal entity
14 engaged in this State in the trade, business, occupation or
15 profession of (i) buying or selling interests in real
16 property, (ii) making loans secured by interests in real
17 property, or (iii) acting as broker, agent, attorney, or
18 representative of natural persons or other legal entities
19 that buy or sell interests in real property or that lend
20 money with such interests as security.
21 (5) "Associate" is any firm, association, partnership,
22 corporation or other legal entity organized for profit in
23 which a producer of title business is a director, officer, or
24 partner thereof, or owner of a financial interest, as defined
25 herein, in such entity; any legal entity that controls, is
26 controlled by, or is under common control with a producer of
27 title business; and any natural person or legal entity with
28 whom a producer of title business has any agreement,
29 arrangement, or understanding or pursues any course of
30 conduct the purpose of which is to evade the provisions of
31 this Act.
32 (6) "Financial interest" is any ownership interest,
33 legal or beneficial, except ownership of publicly traded
34 stock.
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1 (7) "Refer" means to place or cause to be placed, or to
2 exercise any power or influence over the placing of title
3 business, whether or not the consent or approval of any other
4 person is sought or obtained with respect to the referral.
5 (8) "Escrow Agent" means any title insurance company or
6 any title insurance agent acting on behalf of a title
7 insurance company which receives deposits, in trust, of funds
8 or documents, or both, for the purpose of effecting the sale,
9 transfer, encumbrance or lease of real property to be held by
10 such escrow agent until title to the real property that is
11 the subject of the escrow is in a prescribed condition.
12 (9) "Independent Escrowee" means any firm, person,
13 partnership, association, corporation or other legal entity,
14 other than a title insurance company or a title insurance
15 agent, which receives deposits, in trust, of funds or
16 documents, or both, for the purpose of effecting the sale,
17 transfer, encumbrance or lease of real property to be held by
18 such escrowee until title to the real property that is the
19 subject of the escrow is in a prescribed condition. Federal
20 and State chartered banks, savings and loan associations,
21 credit unions, mortgage bankers, banks or trust companies
22 authorized to do business under the Illinois Corporate
23 Fiduciary Act, licensees under the Consumer Installment Loan
24 Act, real estate brokers licensed pursuant to the Real Estate
25 License Act of 1999 1983, as such Acts are now or hereafter
26 amended, and licensed attorneys when engaged in the
27 attorney-client relationship are exempt from the escrow
28 provisions of this Act.
29 (10) "Single risk" means the insured amount of any title
30 insurance policy, except that where 2 or more title insurance
31 policies are issued simultaneously covering different estates
32 in the same real property, "single risk" means the sum of the
33 insured amounts of all such title insurance policies. Any
34 title insurance policy insuring a mortgage interest, a claim
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1 payment under which reduces the insured amount of a fee or
2 leasehold title insurance policy, shall be excluded in
3 computing the amount of a single risk to the extent that the
4 insured amount of the mortgage title insurance policy does
5 not exceed the insured amount of the fee or leasehold title
6 insurance policy.
7 (11) "Department" means the Department of Financial
8 Institutions.
9 (12) "Director" means the Director of Financial
10 Institutions.
11 (Source: P.A. 86-239.)
12 Section 905-21. The Environmental Health Practitioner
13 Licensing Act is amended by changing Section 21 as follows:
14 (225 ILCS 37/21)
15 Sec. 21. Grandfather provision.
16 (a) A person who, on June 30, the effective date of this
17 amendatory Act of 1995, was certified by his or her employer
18 as serving as a sanitarian or environmental health
19 practitioner in environmental health practice in this State
20 may be issued a license upon the filing of an application and
21 within 12 months, by paying the required fees, and by passing
22 the examination.
23 (b) The Department may, upon application and payment of
24 the required fee within 12 months, issue a license to a
25 person who holds a current license as a sanitarian or
26 environmental health practitioner issued by the Illinois
27 Environmental Health Association or National Environmental
28 Health Association.
29 (Source: P.A. 89-61, eff. 6-30-95.)
30 Section 905-22. The Illinois Professional Land Surveyor
31 Act of 1989 is amended by changing Section 20 as follows:
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1 (225 ILCS 330/20) (from Ch. 111, par. 3270)
2 Sec. 20. Endorsement. Upon payment of the required fee,
3 an applicant who is a Professional Land Surveyor, a Land
4 Surveyor-in-Training, or registered or licensed or otherwise
5 legally recognized as a Land Surveyor under the laws of
6 another state or territory of the United States may be
7 granted a license as an Illinois Professional Land Surveyor
8 by the Department with approval of the Board upon the
9 following conditions:
10 (a) That the applicant meets the requirements for
11 licensing in this State, and that the requirements for
12 licensing or other legal recognition of Land Surveyors in the
13 particular state or territory were, at the date of issuance
14 of the license or certificate, equivalent to the requirements
15 then in effect in the State of Illinois; however, the
16 applicant shall be exempt from the requirements of item (5)
17 of subsection (a) of Section 12 of this Act if he or she (1)
18 applied for a license under this Section between September 1,
19 1996 and October 31, 1996 and (2) has 10 or more years of
20 supervised experience as a land surveyor; and
21 (b) That the applicant passes a jurisdictional
22 examination to determine the applicant's knowledge of the
23 surveying tasks unique to the State of Illinois and the laws
24 pertaining thereto.
25 (Source: P.A. 86-987.)
26 Section 905-23. The Barber, Cosmetology, Esthetics, and
27 Nail Technology Act of 1985 is amended by changing Section
28 3C-4 as follows:
29 (225 ILCS 410/3C-4) (from Ch. 111, par. 1703C-4)
30 Sec. 3C-4. Pre-existing practitioners; license
31 requirements for nail technicians.
32 (a) Until December 31, 1995, an applicant who was
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1 practicing nail technology prior to the effective date of
2 this amendatory Act of 1991 shall be issued a license as a
3 nail technician if the applicant meets all of the following
4 requirements:
5 (1) Completes and submits to the Department the
6 necessary forms furnished by the Department along with an
7 application fee of $20.
8 (2) Is at least 16 years of age.
9 (3) Has graduated from an eighth grade elementary
10 school or its equivalent.
11 (4) Has one year of full-time (40 hours per week)
12 practical experience or 2 years of part-time (not less
13 than 20 hours per week) practical experience as a nail
14 technician prior to the effective date of this amendatory
15 Act of 1991, or has 200 hours of certifiable nail
16 technology education in a cosmetology school or
17 vocational technical school. The nail technology
18 education must have been obtained prior to January 1,
19 1994.
20 (5) Submits a written affidavit stating a nail
21 technician's practical work experience executed by an
22 employer, co-worker, or client; or a copy of a current
23 business license, where applicable. For purposes of this
24 item (5), work in sales shall not be considered practical
25 work experience.
26 (b) A person who applies for licensure under this
27 Section between January 1, 1999 1997 and January 31, 1999
28 1997, who has been practicing nail technology for a minimum
29 of 6 years in this State, shall be issued a license upon
30 proof of such experience and meeting all other requirements
31 for licensure under this Section.
32 (Source: P.A. 89-125, eff. 7-7-95; 89-706, eff. 1-31-97.)
33 Section 905-24. The Private Detective, Private Alarm,
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1 Private Security, and Locksmith Act of 1993 is amended by
2 changing Sections 75 and 77 as follows:
3 (225 ILCS 446/75)
4 Sec. 75. Qualifications for licensure and agency
5 certification.
6 (a) Private Detective. A person is qualified to receive
7 a license as a private detective if he or she meets all of
8 the following requirements:
9 (1) Is at least 21 years of age.
10 (2) Has not been convicted in any jurisdiction of
11 any felony or at least 10 years have expired from the
12 time of discharge from any sentence imposed for a felony.
13 (3) Is of good moral character. Good character is
14 a continuing requirement of licensure. Conviction of
15 crimes not listed in paragraph (2) of subsection (a) of
16 this Section may be used in determining moral character,
17 but does not operate as an absolute bar to licensure.
18 (4) Has not been declared by any court of competent
19 jurisdiction to be incompetent by reason of mental or
20 physical defect or disease unless a court has since
21 declared him or her to be competent.
22 (5) Is not suffering from habitual drunkenness or
23 from narcotic addiction or dependence.
24 (6) Has a minimum of 3 years experience out of the
25 5 years immediately preceding his or her application
26 working full-time for a licensed private detective agency
27 as a registered private detective employee or with 3
28 years experience out of the 5 years immediately preceding
29 his or her application employed as a full-time
30 investigator in a law enforcement agency of a federal or
31 State political subdivision, approved by the Board and
32 the Department; or an applicant who has obtained a
33 baccalaureate degree in police science or a related field
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1 or a business degree from an accredited college or
2 university shall be given credit for 2 of the 3 years
3 experience required under this Section. An applicant who
4 has obtained an associate degree in police science or a
5 related field or in business from an accredited college
6 or university shall be given credit for one of the 3
7 years experience required under this Section.
8 (7) Has not been dishonorably discharged from the
9 armed services of the United States.
10 (8) Has successfully passed an examination
11 authorized by the Department. The examination shall
12 include subjects reasonably related to the activities
13 licensed so as to provide for the protection of the
14 health and safety of the public.
15 (9) Has not violated Section 15, 20, or 25 of this
16 Act, but this requirement does not operate as an absolute
17 bar to licensure.
18 It is the responsibility of the applicant to obtain
19 liability insurance in an amount and coverage type
20 appropriate as determined by rule for the applicant's
21 individual business circumstances. The applicant shall
22 provide evidence of insurance to the Department before being
23 issued a license. This insurance requirement is a continuing
24 requirement for licensure. Failure to maintain insurance
25 shall result in cancellation of the license by the
26 Department.
27 (b) Private security contractor. A person is qualified
28 to receive a license as a private security contractor if he
29 or she meets all of the following requirements:
30 (1) Is at least 21 years of age.
31 (2) Has not been convicted in any jurisdiction of
32 any felony or at least 10 years have expired from the
33 time of discharge from any sentence imposed for a felony.
34 (3) Is of good moral character. Good moral
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1 character is a continuing requirement of licensure.
2 Convictions of crimes not listed in paragraph (2) of
3 subsection (b) of this Section may be used in determining
4 moral character, but do not operate as an absolute bar to
5 licensure.
6 (4) Has not been declared by any court of competent
7 jurisdiction to be incompetent by reason of mental or
8 physical defect or disease unless a court has since
9 declared him or her to be competent.
10 (5) Is not suffering from habitual drunkenness or
11 from narcotic addiction or dependence.
12 (6) Has a minimum of 3 years experience out of the
13 5 years immediately preceding his or her application as a
14 full-time manager or administrator for a licensed private
15 security contractor agency or a manager or administrator
16 of a proprietary security force of 30 or more persons
17 registered with the Department, or with 3 years
18 experience out of the 5 years immediately preceding his
19 or her application as a full-time supervisor in a law
20 enforcement agency of a federal or State political
21 subdivision, approved by the Board and the Department; or
22 an applicant who has obtained a baccalaureate degree in
23 police science or a related field or a business degree
24 from an accredited college or university shall be given
25 credit for 2 of the 3 years experience required under
26 this Section. An applicant who has obtained an associate
27 degree in police science or a related field or in
28 business from an accredited college or university shall
29 be given credit for one of the 3 years experience
30 required under this Section.
31 (7) Has not been dishonorably discharged from the
32 armed services of the United States.
33 (8) Has successfully passed an examination
34 authorized by the Department. The examination shall
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1 include subjects reasonably related to the activities
2 licensed so as to provide for the protection of the
3 health and safety of the public.
4 (9) Has not violated Section 15, 20, or 25 of this
5 Act, but this requirement does not operate as an absolute
6 bar to licensure.
7 (10) It is the responsibility of the applicant to
8 obtain liability insurance in amount and coverage type
9 appropriate as determined by rule for the applicant's
10 individual business circumstances. The applicant shall
11 provide evidence of insurance to the Department before
12 being issued a license. This insurance requirement is a
13 continuing requirement for licensure. Failure to
14 maintain insurance shall result in cancellation of the
15 license by the Department.
16 (c) Private alarm contractor. A person is qualified to
17 receive a license as a private alarm contractor if he or she
18 meets all of the following requirements:
19 (1) Is at least 21 years of age.
20 (2) Has not been convicted in any jurisdiction of
21 any felony or at least 10 years have expired from the
22 time of discharge from any sentence imposed for a felony.
23 (3) Is of good moral character. Good moral
24 character is a continuing requirement of licensure.
25 Convictions of crimes not listed in paragraph (2) of
26 subsection (c) of this Section may be used in determining
27 moral character, but do not operate as an absolute bar to
28 licensure.
29 (4) Has not been declared by any court of competent
30 jurisdiction to be incompetent by reason of mental or
31 physical defect or disease unless a court has since
32 declared him or her to be competent.
33 (5) Is not suffering from habitual drunkenness or
34 from narcotic addiction or dependence.
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1 (6) Has not been dishonorably discharged from the
2 armed services of the United States.
3 (7) Has a minimum of 3 years experience out of the
4 5 years immediately preceding application as a full time
5 manager or administrator for an agency licensed as a
6 private alarm contractor agency, or for an entity that
7 designs, sells, installs, services, or monitors alarm
8 systems which in the judgment of the Board satisfies
9 standards of alarm industry competence. An individual who
10 has received a 4 year degree in electrical engineering or
11 a related field from a program approved by the Board
12 shall be given credit for 2 years of experience under
13 this item (7). An individual who has successfully
14 completed a national certification program approved by
15 the Board shall be given credit for one year of
16 experience under this item (7).
17 (8) Has successfully passed an examination
18 authorized by the Department. The examination shall
19 include subjects reasonably related to the activities
20 licensed so as to provide for the protection of the
21 health and safety of the public.
22 (9) Has not violated Section 15, 20, or 25 of this
23 Act, but this requirement does not operate as an absolute
24 bar to licensure.
25 (10) It is the responsibility of the applicant to
26 obtain liability insurance in an amount and coverage type
27 appropriate as determined by rule for the applicant's
28 individual business circumstances. The applicant shall
29 provide evidence of insurance to the Department before
30 being issued a license. This insurance requirement is a
31 continuing requirement for licensure. Failure to
32 maintain insurance shall result in cancellation of the
33 license by the Department.
34 Alternatively, a person is qualified to receive a license
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1 as a private alarm contractor without meeting the
2 requirements of items (7), (8), and (9) of this subsection,
3 if he or she:
4 (i) applies for a license between September 1, 1998
5 and September 15, 1998, in writing, on forms supplied by
6 the Department;
7 (ii) provides proof to the Department that he or
8 she was engaged in the alarm contracting business on or
9 before January 1, 1984;
10 (iii) submits the photographs, fingerprints, proof
11 of insurance, and current license fee required by the
12 Department; and
13 (iv) has not violated Section 25 of this Act.
14 (d) Locksmith. A person is qualified to receive a
15 license as a locksmith if he or she meets all of the
16 following requirements:
17 (1) Is at least 18 years of age.
18 (2) Has not violated any provisions of Section 120
19 of this Act.
20 (3) Has not been convicted in any jurisdiction of
21 any felony or at least 10 years have expired from the
22 time of discharge from any sentence imposed for a felony.
23 (4) Is of good moral character. Good moral
24 character is a continuing requirement of licensure.
25 Convictions of crimes not listed in paragraph (3) of
26 subsection (d) of this Section may be used in determining
27 moral character, but do not operate as an absolute bar to
28 licensure.
29 (5) Has not been declared by any court of competent
30 jurisdiction to be incompetent by reason of mental or
31 physical defect or disease unless a court has since
32 declared him or her to be competent.
33 (6) Is not suffering from habitual drunkenness or
34 from narcotic addiction or dependence.
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1 (7) Has not been dishonorably discharged from the
2 armed services of the United States.
3 (8) Has passed an examination authorized by the
4 Department in the theory and practice of the profession.
5 (9) Has submitted to the Department proof of
6 insurance sufficient for the individual's business
7 circumstances. The Department, with input from the
8 Board, shall promulgate rules specifying minimum
9 insurance requirements. This insurance requirement is a
10 continuing requirement for licensure. Failure to
11 maintain insurance shall result in the cancellation of
12 the license by the Department. A locksmith employed by a
13 licensed locksmith agency or employed by a private
14 concern may provide proof that his or her actions as a
15 locksmith are covered by the insurance of his or her
16 employer.
17 (e) Private detective agency. Upon payment of the
18 required fee and proof that the applicant has a full-time
19 Illinois licensed private detective in charge, which is a
20 continuing requirement for agency certification, the
21 Department shall issue, without examination, a certificate as
22 a private detective agency to any of the following:
23 (1) An individual who submits an application in
24 writing and who is a licensed private detective under
25 this Act.
26 (2) A firm or association that submits an
27 application in writing and all of the members of the firm
28 or association are licensed private detectives under this
29 Act.
30 (3) A duly incorporated or registered corporation
31 allowed to do business in Illinois that is authorized by
32 its articles of incorporation to engage in the business
33 of conducting a detective agency, provided at least one
34 officer or executive employee is licensed as a private
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1 detective under this Act and all unlicensed officers and
2 directors of the corporation are determined by the
3 Department to be persons of good moral character.
4 No private detective may be the private detective in
5 charge for more than one agency except for an individual who,
6 on the effective date of this Act, is currently and actively
7 a licensee for more than one agency. Upon written request by
8 a representative of an agency within 10 days after the loss
9 of a licensee in charge of an agency because of the death of
10 that individual or because of an unanticipated termination of
11 the employment of that individual, the Department shall issue
12 a temporary permit allowing the continuing operation of a
13 previously licensed agency. No temporary permit shall be
14 valid for more than 90 days. An extension of an additional
15 90 days may be granted by the Department for good cause shown
16 upon written request by the representative of the agency. No
17 more than 2 extensions may be granted to any agency. No
18 temporary permit shall be issued for the loss of the
19 detective in charge because of disciplinary action by the
20 Department.
21 (f) Private alarm contractor agency. Upon receipt of
22 the required fee and proof that the applicant has a full-time
23 Illinois licensed private alarm contractor in charge, which
24 is a continuing requirement for agency certification, the
25 Department shall issue, without examination, a certificate as
26 a private alarm contractor agency to any of the following:
27 (1) An individual who submits an application in
28 writing and who is a licensed private alarm contractor
29 under this Act.
30 (2) A firm or association that submits an
31 application in writing that all of the members of the
32 firm or association are licensed private alarm
33 contractors under this Act.
34 (3) A duly incorporated or registered corporation
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1 allowed to do business in Illinois that is authorized by
2 its articles of incorporation to engage in the business
3 of conducting a private alarm contractor agency, provided
4 at least one officer or executive employee is licensed as
5 a private alarm contractor under this Act and all
6 unlicensed officers and directors of the corporation are
7 determined by the Department to be persons of good moral
8 character.
9 No private alarm contractor may be the private alarm
10 contractor in charge for more than one agency except for any
11 individual who, on the effective date of this Act, is
12 currently and actively a licensee for more than one agency.
13 Upon written request by a representative of an agency within
14 10 days after the loss of a licensed private alarm contractor
15 in charge of an agency because of the death of that
16 individual or because of the unanticipated termination of the
17 employment of that individual, the Department shall issue a
18 temporary permit allowing the continuing operation of a
19 previously licensed agency. No temporary permit shall be
20 valid for more than 90 days. An extension of an additional
21 90 days may be granted by the Department for good cause shown
22 and upon written request by the representative of the agency.
23 No more than 2 extensions may be granted to any agency. No
24 temporary permit shall be issued for the loss of the licensee
25 in charge because of disciplinary action by the Department.
26 (g) Private security contractor agency. Upon receipt of
27 the required fee and proof that the applicant has a full-time
28 Illinois licensed private security contractor in charge,
29 which is continuing requirement for agency certification, the
30 Department shall issue, without examination, a certificate as
31 a private security contractor agency to any of the following:
32 (1) An individual who submits an application in
33 writing and who is a licensed private security contractor
34 under this Act.
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1 (2) A firm or association that submits an
2 application in writing that all of the members are
3 licensed private security contractors under this Act.
4 (3) A duly incorporated or registered corporation
5 allowed to do business in Illinois that is authorized by
6 its articles of incorporation to engage in the business
7 of conducting a private security contractor agency,
8 provided at least one officer or executive employee is
9 licensed as a private security contractor under this Act
10 and all unlicensed officers and directors of the
11 corporation are determined by the Department to be
12 persons of good moral character.
13 No private security contractor may be the private
14 security contractor in charge for more than one agency except
15 for any individual who, on the effective date of this Act, is
16 currently and actively a licensee for more than one agency.
17 Upon written request by a representative of the agency within
18 10 days after the loss of a licensee in charge of an agency
19 because of the death of that individual or because of the
20 unanticipated termination of the employment of that
21 individual, the Department shall issue a temporary permit
22 allowing the continuing operation of a previously licensed
23 agency. No temporary permit shall be valid for more than 90
24 days. An extension of an additional 90 days may be granted
25 upon written request by the representative of the agency. No
26 more than 2 extensions may be granted to any agency. No
27 temporary permit shall be issued for the loss of the licensee
28 in charge because of disciplinary action by the Department.
29 (h) Licensed locksmith agency. Upon receipt of the
30 required fee and proof that the applicant is an Illinois
31 licensed locksmith who shall assume full responsibility for
32 the operation of the agency and the directed actions of the
33 agency's employees, which is a continuing requirement for
34 agency licensure, the Department shall issue, without
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1 examination, a certificate as a Locksmith Agency to any of
2 the following:
3 (1) An individual who submits an application in
4 writing and who is a licensed locksmith under this Act.
5 (2) A firm or association that submits an
6 application in writing and certifies that all of the
7 members of the firm or association are licensed
8 locksmiths under this Act.
9 (3) A duly incorporated or registered corporation
10 or limited liability company allowed to do business in
11 Illinois that is authorized by its articles of
12 incorporation or organization to engage in the business
13 of conducting a locksmith agency, provided that at least
14 one officer or executive employee of a corporation or one
15 member of a limited liability company is licensed as a
16 locksmith under this Act, and provided that person agrees
17 in writing on a form acceptable to the Department to
18 assume full responsibility for the operation of the
19 agency and the directed actions of the agency's
20 employees, and further provided that all unlicensed
21 officers and directors of the corporation or members of
22 the limited liability company are determined by the
23 Department to be persons of good moral character.
24 An individual licensed locksmith operating under a
25 business name other than the licensed locksmith's own name
26 shall not be required to obtain a locksmith agency license if
27 that licensed locksmith does not employ any persons to engage
28 in the practice of locksmithing.
29 An applicant for licensure as a locksmith agency shall
30 submit to the Department proof of insurance sufficient for
31 the agency's business circumstances. The Department shall
32 promulgate rules specifying minimum insurance requirements.
33 This insurance requirement is a continuing requirement for
34 licensure.
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1 No licensed locksmith may be the licensed locksmith
2 responsible for the operation of more than one agency except
3 for any individual who submits proof to the Department that,
4 on the effective date of this amendatory Act of 1995, he or
5 she is actively responsible for the operations of more than
6 one agency. A licensed private alarm contractor who is
7 responsible for the operation of a licensed private alarm
8 contractor agency and who is a licensed locksmith may also be
9 the licensed locksmith responsible for the operation of a
10 locksmith agency.
11 Upon written request by a representative of an agency
12 within 10 days after the loss of a responsible licensed
13 locksmith of an agency, because of the death of that
14 individual or because of the unanticipated termination of the
15 employment of that individual, the Department shall issue a
16 temporary permit allowing the continuing operation of a
17 previously licensed locksmith agency. No temporary permit
18 shall be valid for more than 90 days. An extension for an
19 additional 90 days may be granted by the Department for good
20 cause shown and upon written request by a representative of
21 the agency. No more than 2 extensions may be granted to any
22 agency. No temporary permit shall be issued to any agency
23 due to the loss of the responsible locksmith because of
24 disciplinary action by the Department.
25 (i) Any licensed agency that operates a branch office as
26 defined in this Act shall apply for a branch office license.
27 (Source: P.A. 89-85, eff. 1-1-96; 89-366, eff. 1-1-96;
28 89-626, eff. 8-9-96; 90-436, eff. 1-1-98.)
29 (225 ILCS 446/77)
30 Sec. 77. Necessity for licensure of locksmith agencies;
31 grandfather provision.
32 (a) On or after January 1, 1997, no person shall
33 practice as a locksmith and no business entity shall operate
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1 as a locksmith agency without first applying for and
2 obtaining a license for that purpose from the Department.
3 (b) Applications must be accompanied by the required
4 fee.
5 (c) In lieu of the examination given to other applicants
6 for licensure, the Director may issue a license to an
7 individual who presents proof to the Director that he or she
8 was actively engaged as a locksmith or as a supervisor,
9 manager, or administrator of a locksmith business for 3 years
10 out of the 5 years immediately preceding January 1, 1996 and
11 meets all other requirements of this Act.
12 (d) The application for a license without examination
13 shall be made to the Director within 2 years after the
14 effective date of this amendatory Act of 1995.
15 (e) A person who applies for licensure under this
16 Section between September 1, 1998 and September 30, 1998
17 shall be exempt from subsection (d) of this Section and shall
18 be issued a license upon proof of meeting all other
19 requirements for licensure under this Section.
20 (Source: P.A. 89-366, eff. 1-1-96.)
21 Section 905-25. The Illinois Highway Code is amended by
22 changing Section 5-907 as follows:
23 (605 ILCS 5/5-907) (from Ch. 121, par. 5-907)
24 Sec. 5-907. Advisory Committee. A road improvement impact
25 fee advisory committee shall be created by the unit of local
26 government intending to impose impact fees. The Advisory
27 Committee shall consist of not less than 10 members and not
28 more than 20 members. Not less than 40% of the members of
29 the committee shall be representatives of the real estate,
30 development, and building industries and the labor
31 communities and may not be employees or officials of the unit
32 of local government.
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1 The members of the Advisory Committee shall be selected
2 as follows:
3 (1) The representatives of real estate shall be
4 licensed under the Real Estate License Act of 1999 1983
5 and shall be designated by the President of the Illinois
6 Association of Realtors from a local Board from the
7 service area or areas of the unit of local government.
8 (2) The representatives of the development industry
9 shall be designated by the Regional Developers
10 Association.
11 (3) The representatives of the building industry
12 shall be designated representatives of the Regional Home
13 Builders representing the unit of local government's
14 geographic area as appointed from time to time by that
15 Association's president.
16 (4) The labor representatives shall be chosen by
17 either the Central Labor Council or the Building and
18 Construction Trades Council having jurisdiction within
19 the unit of local government.
20 If the unit of local government is a county, at least 30%
21 of the members serving on the commission must be
22 representatives of the municipalities within the county. The
23 municipal representatives shall be selected by a convention
24 of mayors in the county, who shall elect from their
25 membership municipal representatives to serve on the Advisory
26 Committee. The members representing the county shall be
27 appointed by the chief executive officer of the county.
28 If the unit of local government is a municipality, the
29 non-public representatives shall be appointed by the chief
30 executive officer of the municipality.
31 If the unit of local government has a planning or zoning
32 commission, the unit of local government may elect to use its
33 planning or zoning commission to serve as the Advisory
34 Committee, provided that not less than 40% of the committee
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1 members include representatives of the real estate,
2 development, and building industries and the labor
3 communities who are not employees or officials of the unit of
4 local government. A unit of local government may appoint
5 additional members to serve on the planning or zoning
6 commission as ad hoc voting members whenever the planning or
7 zoning commission functions as the Advisory Committee;
8 provided that no less than 40% of the members include
9 representatives of the real estate, development, and building
10 industries and the labor communities.
11 (Source: P.A. 86-97.)
12 Section 905-30. The Illinois Real Estate Time-Share Act
13 is amended by changing Sections 19, 33, and 34 as follows:
14 (765 ILCS 100/19) (from Ch. 30, par. 719)
15 Sec. 19. (a) Any person acting as a sales agent of a
16 time-share estate of real property without having first
17 complied with the Real Estate License Act of 1999 1983 shall
18 be guilty of a Class A misdemeanor.
19 Upon conviction of a second offense the violator shall be
20 guilty of a Class A misdemeanor.
21 Upon conviction of a third or subsequent offense the
22 violator shall be guilty of a Class 4 felony and shall be
23 fined not less than $15,000 nor more than $50,000.
24 (b) In addition to any other remedies, the Commissioner,
25 through the Attorney General, is authorized to file a
26 complaint and apply to any circuit court wherein such alleged
27 acts are occurring, and such circuit court may upon hearing
28 and for cause shown, grant a temporary restraining order or a
29 preliminary or permanent injunction, without bond,
30 restraining any person from violating this Act whether or not
31 there exists other judicial remedies.
32 (c) The Commissioner by and through the Attorney General
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1 may file a complaint for violation of this Act.
2 (d) The penalties and remedies provided by this Act
3 shall not be exclusive, but shall be in addition to all other
4 penalties or remedies provided by law.
5 (Source: P.A. 89-508, eff. 7-3-96.)
6 (765 ILCS 100/33) (from Ch. 30, par. 733)
7 Sec. 33. If a time-share program involves the offering,
8 sale, exchange or lease of real property, then any sales
9 agent, involved in the transaction must comply with the Real
10 Estate License Act of 1999 1983.
11 (Source: P.A. 84-821.)
12 (765 ILCS 100/34) (from Ch. 30, par. 734)
13 Sec. 34. All fees in the Real Estate Time-Share
14 Registration Fund on the effective date of this amendatory
15 Act of 1986 shall be transferred by the State Treasurer to
16 the Real Estate License Administration Fund, established in
17 Section 17 of the Real Estate License Act of 1999 1983. All
18 fees received under this Act on or after that date shall be
19 deposited into the Real Estate License Administration Fund.
20 (Source: P.A. 89-508, eff. 7-3-96.)
21 Section 905-35. The Commercial Real Estate Broker Lien
22 Act is amended by changing Section 5 as follows:
23 (770 ILCS 15/5) (from Ch. 82, par. 655)
24 Sec. 5. Definitions. As used in this Act:
25 "Commercial real estate" means any real estate located in
26 Illinois other than (i) real estate containing one to 6
27 residential units, (ii) real estate on which no buildings or
28 structures are located, or (iii) real estate classified as
29 farmland for assessment purposes under the Property Tax Code.
30 Commercial real estate shall not include single family
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1 residential units such as condominiums, townhouses, or homes
2 in a subdivision when sold, leased, or otherwise conveyed on
3 a unit by unit basis even though these units may be part of a
4 larger building or parcel of real estate containing more than
5 6 residential units.
6 "Real estate", "broker", and "employee" are defined as in
7 the Real Estate License Act of 1999 1983.
8 "Interest in commercial real estate" shall include,
9 without limitation, any interest in a land trust as defined
10 in Section 15-1205 of the Code of Civil Procedure.
11 (Source: P.A. 87-779; 88-354; 88-670, eff. 12-2-94.)
12 Section 905-40. The Illinois Business Brokers Act of
13 1995 is amended by changing Section 10-80 as follows:
14 (815 ILCS 307/10-80)
15 Sec. 10-80. Persons exempt from registration and other
16 duties under law; burden of proof thereof.
17 (a) The following persons are exempt from the
18 requirements of this Act:
19 (1) Any attorney who is licensed to practice in
20 this State, while engaged in the practice of law and
21 whose service in relation to the business broker
22 transaction is incidental to the attorney's practice.
23 (2) Any person licensed as a real estate broker or
24 salesperson under the Illinois Real Estate License Act of
25 1999 1983 who is primarily engaged in business activities
26 for which a license is required under that Act and who,
27 on an incidental basis, acts as a business broker.
28 (3) Any dealer, salesperson, or investment adviser
29 registered pursuant to the Illinois Securities Law of
30 1953 or any investment adviser representative, or any
31 person who is regularly engaged in the business of
32 offering or selling securities in a transaction exempted
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1 under subsection C, H, M, R, Q, or S of Section 4 of the
2 Illinois Securities Law of 1953 or subsection G of
3 Section 4 of the Illinois Securities Law of 1953 provided
4 that such person is registered pursuant to federal
5 securities law.
6 (4) An associated person described in subdivision
7 (h)(2) of Section 15 of the Federal 1934 Act.
8 (5) An investment adviser registered pursuant to
9 Section 203 of the Federal 1940 Investment Advisors Act.
10 (6) A person described in subdivision (a)(11) of
11 Section 202 of the Federal 1940 Investment Advisors Act.
12 (7) Any person who is selling a business owned or
13 operated (in whole or in part) by that person in a one
14 time transaction.
15 (b) This Act shall not be deemed to apply in any manner,
16 directly or indirectly, to: (i) a State bank or national
17 bank, as those terms are defined in the Illinois Banking Act,
18 or any subsidiary of a State bank or national bank; (ii) a
19 bank holding company, as that term is defined in the Illinois
20 Bank Holding Company Act of 1957, or any subsidiary of a bank
21 holding company; (iii) a foreign banking corporation, as that
22 term is defined in the Foreign Banking Office Act, or any
23 subsidiary of a foreign banking corporation; (iv) a
24 representative office, as that term is defined in the
25 Foreign Bank Representative Office Act; (v) a corporate
26 fiduciary, as that term is defined in the Corporate Fiduciary
27 Act, or any subsidiary of a corporate fiduciary; (vi) a
28 savings bank organized under the Savings Bank Act, or a
29 federal savings bank organized under federal law, or any
30 subsidiary of a savings bank or federal savings bank; (vii) a
31 savings bank holding company organized under the Savings Bank
32 Act, or any subsidiary of a savings bank holding company;
33 (viii) an association or federal association, as those terms
34 are defined in the Illinois Savings and Loan Act of 1985, or
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1 any subsidiary of an association or federal association; (ix)
2 a foreign savings and loan association or foreign savings
3 bank subject to the Illinois Savings and Loan Act of 1985, or
4 any subsidiary of a foreign savings and loan association or
5 foreign savings bank; or (x) a savings and loan association
6 holding company, as that term is defined in the Illinois
7 Savings and Loan Act of 1985, or any subsidiary of a savings
8 and loan association holding company.
9 (b-1) Persons registered under the Illinois Franchise
10 Disclosure Act of 1987 (and their employees) are exempt from
11 the requirements of this Act as to: offers and sales in
12 connection with franchising activities; or assisting any of
13 their franchisees in the offer or sale of a franchise by any
14 such franchisee for the franchisee's own account regardless
15 of whether the sale is effected by or through the registered
16 persons.
17 (b-2) Any certified public accountant licensed to
18 practice in Illinois, while engaged in the practice as a
19 certified public accountant and whose service in relation to
20 the business broker transaction is incidental to his or her
21 practice, is exempt from the requirements of this Act.
22 (b-3) Any publisher, or regular employee of such
23 publisher, of a bona fide newspaper or news magazine of
24 regular and established paid circulation who, in the routine
25 course of selling advertising, advertises businesses for sale
26 and in which no other related services are provided is exempt
27 from the requirements of this Act.
28 (c) The burden of proof of any exemption or
29 classification provided in this Act shall be on the party
30 claiming the exemption or classification.
31 (Source: P.A. 89-209, eff. 1-1-96; 89-665, eff. 8-14-96;
32 90-70, eff. 7-8-97.)
33 Section 905-45. The Telephone Solicitations Act is
HB2688 Engrossed -126- LRB9009844LDpk
1 amended by changing Section 10 as follows:
2 (815 ILCS 413/10)
3 (Text of Section before amendment by P.A. 90-541)
4 Sec. 10. Jurisdiction. No person shall solicit the sale
5 of goods in this State except in accordance with this Act.
6 (Source: P.A. 88-288.)
7 (Text of Section after amendment by P.A. 90-541)
8 Sec. 10. Jurisdiction. No person shall solicit the sale
9 of goods or services in this State except in accordance with
10 this Act. The provisions of this Act shall not apply to
11 telecommunications carriers as defined in Article XIII of the
12 Public Utilities Act or to any bank, trust company, savings
13 and loan association, credit union, licensee under the
14 Consumer Installment Loan Act, licensed insurer, licensee
15 under the Real Estate License Act of 1999 1983, or any
16 affiliate, subsidiary, employee, or agent of any such
17 entities.
18 (Source: P.A. 90-541, eff. 6-1-98.)
19 ARTICLE 990. REPEALER
20 (225 ILCS 455/Act rep.)
21 Section 990-90. The Real Estate License Act of 1983 is
22 repealed.
23 ARTICLE 995. NONACCELERATION
24 Section 995-95. No acceleration or delay. Where this
25 Act makes changes in a statute that is represented in this
26 Act by text that is not yet or no longer in effect (for
27 example, a Section represented by multiple versions), the use
28 of that text does not accelerate or delay the taking effect
29 of (i) the changes made by this Act or (ii) provisions
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1 derived from any other Public Act.
2 ARTICLE 999. EFFECTIVE DATE
3 Section 999-99. Effective date. This Act takes effect
4 July 1, 1999.