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90_HB2688ham002
LRB9009844ACmbam01
1 AMENDMENT TO HOUSE BILL 2688
2 AMENDMENT NO. . Amend House Bill 2688 by replacing
3 the title with the following:
4 "AN ACT concerning the regulation of professions."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "ARTICLE 1. GENERAL PROVISIONS
8 Section 1-1. Short title; Act supersedes Real Estate
9 License Act of 1983. This Act shall be known and may be cited
10 as the Real Estate License Act of 1999, and it shall
11 supersede the Real Estate License Act of 1983 repealed by
12 this Act.
13 Section 1-5. Legislative intent. The intent of the
14 General Assembly in enacting this statute is to evaluate the
15 competency of persons engaged in the real estate business and
16 to regulate this business for the protection of the public.
17 Section 1-10. Definitions. In this Act, unless the
18 context otherwise requires:
19 "Act" means the Real Estate License Act of 1999.
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1 "Advisory Council" means the Real Estate Education
2 Advisory Council created under Section 30-10 of this Act.
3 "Agency" means a relationship in which a real estate
4 broker or licensee, whether directly or through an affiliated
5 licensee, represents a consumer by the consumer's consent,
6 whether express or implied, in a real property transaction.
7 "Applicant" means any person, as defined in this Section,
8 who applies to OBRE for a valid license as a real estate
9 broker, real estate salesperson, or leasing agent.
10 "Blind advertisement" means any real estate advertisement
11 that does not include the sponsoring broker's business name
12 and that is used by any licensee regarding the sale or lease
13 of real estate, including his or her own, licensed
14 activities, or the hiring of any licensee under this Act.
15 The broker's business name in the case of a franchise shall
16 include the franchise affiliation as well as the name of the
17 individual firm.
18 "Board" means the Real Estate Administration and
19 Disciplinary Board of OBRE.
20 "Branch office" means a sponsoring broker's office other
21 than the sponsoring broker's principal office.
22 "Broker" means an individual, partnership, limited
23 liability company, corporation, or registered limited
24 liability partnership other than a real estate salesperson or
25 leasing agent who for another and for compensation either
26 directly or indirectly:
27 (1) Sells, exchanges, purchases, rents, or leases
28 real estate.
29 (2) Offers to sell, exchange, purchase, rent, or
30 lease real estate.
31 (3) Negotiates, offers, attempts, or agrees to
32 negotiate the sale, exchange, purchase, rental, or
33 leasing of real estate.
34 (4) Lists, offers, attempts, or agrees to list real
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1 estate for sale, lease, or exchange.
2 (5) Buys, sells, offers to buy or sell, or
3 otherwise deals in options on real estate or improvements
4 thereon.
5 (6) Collects, offers, attempts, or agrees to
6 collect rent for the use of real estate.
7 (7) Advertises or represents himself or herself as
8 being engaged in the business of buying, selling,
9 exchanging, renting, or leasing real estate.
10 (8) Assists or directs in procuring or referring of
11 prospects, intended to result in the sale, exchange,
12 lease, or rental of real estate.
13 (9) Assists or directs in the negotiation of any
14 transaction intended to result in the sale, exchange,
15 lease, or rental of real estate.
16 (10) Opens real estate to the public for marketing
17 purposes.
18 "Brokerage agreement" means a written or oral agreement
19 between a sponsoring broker and a consumer for licensed
20 activities to be provided to a consumer in return for
21 compensation or the right to receive compensation from
22 another. Brokerage agreements constitute bilateral
23 agreements between a broker and the broker's client.
24 "Client" means a person who is being represented by a
25 licensee.
26 "Commissioner" means the Commissioner of Banks and Real
27 Estate or a person authorized by the Commissioner, the Office
28 of Banks and Real Estate Act, or this Act to act in the
29 Commissioner's stead.
30 "Compensation" means the valuable consideration given by
31 one person or entity to another person or entity in exchange
32 for the performance of some activity or service.
33 Compensation shall include the transfer of valuable
34 consideration, including without limitation the following:
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1 (1) commissions;
2 (2) referral fees;
3 (3) bonuses;
4 (4) prizes;
5 (5) merchandise;
6 (6) finder fees;
7 (7) performance of services;
8 (8) coupons or gift certificates;
9 (9) discounts;
10 (10) rebates;
11 (11) a chance to win a raffle, drawing, lottery, or
12 similar game of chance not prohibited by any other law or
13 statute;
14 (12) retainer fee; or
15 (13) salary.
16 "Confidential information" means information obtained by
17 a licensee from a client during the term of a brokerage
18 agreement that (i) was made confidential by the written
19 request or written instruction of the client, (ii) deals with
20 the negotiating position of the client, or (iii) is
21 information the disclosure of which could materially harm the
22 negotiating position of the client, unless at any time:
23 (1) the client permits the disclosure of
24 information given by that client by word or conduct;
25 (2) the disclosure is required by law; or
26 (3) the information becomes public from a source
27 other than the licensee.
28 "Confidential information" shall not be considered to
29 include material information about the physical condition of
30 the property.
31 "Consumer" means a person or entity seeking or receiving
32 licensed activities.
33 "Continuing education school" means any person licensed
34 by OBRE as a school for continuing education in accordance
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1 with Section 30-15 of this Act.
2 "Credit hour" means 50 minutes of classroom instruction
3 in course work that meets the requirements set forth in rules
4 adopted by OBRE.
5 "Customer" means a consumer who is not being represented
6 by the licensee but for whom the licensee is performing
7 ministerial acts.
8 "Designated agency" means a contractual relationship
9 between a sponsoring broker and a client under Section 15-50
10 of this Act in which one or more licensees associated with or
11 employed by the broker are designated as agent of the client.
12 "Designated agent" means a sponsored licensee named by a
13 sponsoring broker as the legal agent of a client, as provided
14 for in Section 15-50 of this Act.
15 "Director" means the Director of the Real Estate
16 Division, OBRE.
17 "Dual agency" means an agency relationship in which a
18 licensee is representing both buyer and seller or both
19 landlord and tenant in the same transaction. When the agency
20 relationship is a designated agency, the question of whether
21 there is a dual agency shall be determined by the agency
22 relationships of the designated agent of the parties and not
23 of the sponsoring broker.
24 "Employee" or other derivative of the word "employee",
25 when used to refer to, describe, or delineate the
26 relationship between a real estate broker and a real estate
27 salesperson, another real estate broker, or a leasing agent,
28 shall be construed to include an independent contractor
29 relationship, provided that a written agreement exists that
30 clearly establishes and states the relationship. All
31 responsibilities of a broker shall remain.
32 "Escrow moneys" means all moneys, promissory notes or any
33 other type or manner of legal tender or financial
34 consideration deposited with any person for the benefit of
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1 the parties to the transaction. A transaction exists once an
2 agreement has been reached and an accepted real estate
3 contract signed or lease agreed to by the parties. Escrow
4 moneys includes without limitation earnest moneys and
5 security deposits, except those security deposits in which
6 the person holding the security deposit is also the sole
7 owner of the property being leased and for which the security
8 deposit is being held.
9 "Inoperative" means a status of licensure where the
10 licensee holds a current license under this Act, but the
11 licensee is prohibited from engaging in licensed activities
12 because the licensee is unsponsored or the license of the
13 sponsoring broker with whom the licensee is associated or by
14 whom he or she is employed is currently expired, revoked,
15 suspended, or otherwise rendered invalid under this Act.
16 "Leasing Agent" means a person who is employed by a real
17 estate broker to engage in licensed activities limited to
18 leasing residential real estate who has obtained a license as
19 provided for in Section 5-5 of this Act.
20 "License" means the document issued by OBRE certifying
21 that the person named thereon has fulfilled all requirements
22 prerequisite to licensure under this Act.
23 "Licensed activities" means those activities listed in
24 the definition of "broker" under this Section.
25 "Licensee" means any person, as defined in this Section,
26 who holds a valid unexpired license as a real estate broker,
27 real estate salesperson, or leasing agent.
28 "Listing presentation" means a communication between a
29 real estate broker or salesperson and a consumer in which the
30 licensee is attempting to secure a brokerage agreement with
31 the consumer to market the consumer's real estate for sale or
32 lease.
33 "Managing broker" means a broker who has supervisory
34 responsibilities for licensees in one or, in the case of a
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1 multi-office company, more than one office and who has been
2 appointed as such by the sponsoring broker of the real estate
3 firm.
4 "Medium of advertising" means any method of communication
5 intended to influence the general public to use or purchase a
6 particular good or service or real estate.
7 "Ministerial acts" means those acts that a licensee may
8 perform for a consumer that are informative or clerical in
9 nature and do not rise to the level of active representation
10 on behalf of a consumer. Examples of these acts include
11 without limitation (i) responding to phone inquiries by
12 consumers as to the availability and pricing of brokerage
13 services, (ii) responding to phone inquiries from a consumer
14 concerning the price or location of property, (iii) attending
15 an open house and responding to questions about the property
16 from a consumer, (iv) setting an appointment to view
17 property, (v) responding to questions of consumers walking
18 into a licensee's office concerning brokerage services
19 offered or particular properties, (vi) accompanying an
20 appraiser, inspector, contractor, or similar third party on a
21 visit to a property, (vii) describing a property or the
22 property's condition in response to a consumer's inquiry,
23 (viii) completing business or factual information for a
24 consumer on an offer or contract to purchase on behalf of a
25 client, (ix) showing a client through a property being sold
26 by an owner on his or her own behalf, or (x) referral to
27 another broker or service provider.
28 "OBRE" means the Office of Banks and Real Estate.
29 "Office" means a real estate broker's place of business
30 where the general public is invited to transact business and
31 where records may be maintained and licenses displayed,
32 whether or not it is the broker's principal place of
33 business.
34 "Person" means and includes individuals, entities,
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1 corporations, limited liability companies, registered limited
2 liability partnerships, and partnerships, foreign or
3 domestic, except that when the context otherwise requires,
4 the term may refer to a single individual or other described
5 entity.
6 "Personal assistant" means a licensed or unlicensed
7 person who has been hired for the purpose of aiding or
8 assisting a sponsored licensee of the sponsoring broker of
9 the personal assistant in the performance of the sponsored
10 licensee's job.
11 "Pocket card" means the card issued by OBRE to signify
12 that the person named on the card is currently licensed under
13 this Act.
14 "Pre-license school" means a school licensed by OBRE
15 offering courses in subjects related to real estate
16 transactions, including the subjects upon which an applicant
17 is examined in determining fitness to receive a license.
18 "Prerenewal period" means the period between the date of
19 issue of a currently valid license and the license's
20 expiration date.
21 "Real estate" means and includes leaseholds as well as
22 any other interest or estate in land, whether corporeal,
23 incorporeal, freehold, or non-freehold and whether the real
24 estate is situated in this State or elsewhere.
25 "Real Estate Administration and Disciplinary Board" or
26 "Board" means the Real Estate Administration and Disciplinary
27 Board created by Section 25-10 of this Act.
28 "Salesperson" means any individual, other than a real
29 estate broker or leasing agent, who is employed by a real
30 estate broker or is associated by written agreement with a
31 real estate broker as an independent contractor and
32 participates in any activity described in the definition of
33 "broker" under this Section.
34 "Sponsoring broker" means the broker who has issued a
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1 sponsor card to a licensed salesperson, another licensed
2 broker, or a leasing agent.
3 "Sponsor card" means the temporary permit issued by the
4 sponsoring real estate broker certifying that the real estate
5 broker, real estate salesperson, or leasing agent named
6 thereon is employed by or associated by written agreement
7 with the sponsoring real estate broker, as provided for in
8 Section 5-40 of this Act.
9 ARTICLE 5. LICENSING AND EDUCATION
10 Section 5-5. Leasing agent license.
11 (a) The purpose of this Section is to provide for a
12 limited scope license to enable persons who wish to engage in
13 activities limited to the leasing of residential real
14 property for which a license is required under this Act, and
15 only those activities, to do so by obtaining the license
16 provided for under this Section.
17 (b) Notwithstanding the other provisions of this Act,
18 there is hereby created a leasing agent license that shall
19 enable the licensee to engage only in residential leasing
20 activities for which a license is required under this Act.
21 Such activities include without limitation leasing or renting
22 residential real property, collecting rent for the use of
23 residential real estate, or attempting, offering, or
24 negotiating to lease, rent, or collect rent for the use of
25 residential real property. Nothing in this Section shall be
26 construed to require a licensed real estate broker or
27 salesperson to obtain a leasing agent license in order to
28 perform leasing activities for which a license is required
29 under this Act. Licensed leasing agents must be sponsored and
30 employed by a sponsoring broker.
31 (c) OBRE, by rule, with the advice of the Board, shall
32 provide for the licensing of leasing agents, including the
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1 issuance, renewal, and administration of licenses.
2 (d) Notwithstanding any other provisions of this Act to
3 the contrary, a person may engage in residential leasing
4 activities for which a license is required under this Act,
5 for a period of 120 consecutive days without being licensed,
6 so long as the person is acting under the supervision of a
7 licensed real estate broker and the broker has notified OBRE
8 that the person is pursuing licensure under this Section.
9 During the 120 day period all requirements of Sections 5-10
10 and 5-65 of this Act with respect to education, successful
11 completion of an examination, and the payment of all required
12 fees must be satisfied. OBRE may adopt rules to ensure that
13 the provisions of this subsection are not used in a manner
14 that enables an unlicensed person to repeatedly or
15 continually engage in activities for which a license is
16 required under this Act.
17 Section 5-10. Application for leasing agent license.
18 Every person who desires to obtain a leasing agent license
19 shall apply to OBRE in writing on forms provided by OBRE. In
20 addition to any other information required to be contained in
21 the application, every application for an original or renewed
22 leasing agent license shall include the applicant's Social
23 Security number. All application or license fees must
24 accompany the application. Each applicant must be at least
25 18 years of age, must be of good moral character, shall have
26 successfully completed a 4-year course of study in a high
27 school or secondary school or an equivalent course of study
28 approved by the Illinois State Board of Education, and shall
29 successfully complete a written examination authorized by
30 OBRE sufficient to demonstrate the applicant's knowledge of
31 the provisions of this Act relating to leasing agents and the
32 applicant's competence to engage in the activities of a
33 licensed leasing agent. Applicants must successfully
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1 complete 15 hours of instruction in an approved course of
2 study relating to the leasing of residential real property.
3 The course of study shall, among other topics, cover
4 environmental issues relating to residential real property.
5 Successfully completed course work, completed pursuant to the
6 requirements of this Section, may be applied to the course
7 work requirements to obtain a real estate broker's or
8 salesperson's license as provided by rule. The Advisory
9 Council shall recommend through the Board to OBRE and OBRE
10 shall adopt requirements for approved courses, course
11 content, and the approval of courses, instructors, and
12 schools, as well as school and instructor fees. OBRE may
13 establish continuing education requirements for licensed
14 leasing agents, by rule, with the advice of the Advisory
15 Council and Board.
16 Section 5-15. Necessity of broker, salesperson, or
17 leasing agent license or sponsor card; ownership
18 restrictions.
19 (a) It is unlawful for any person, corporation, limited
20 liability company, registered limited liability partnership,
21 or partnership to act as a real estate broker, real estate
22 salesperson, or leasing agent or to advertise or assume to
23 act as such broker, salesperson, or leasing agent without a
24 properly issued sponsor card or a license issued under this
25 Act by OBRE, either directly or through its authorized
26 designee.
27 (b) No corporation shall be granted a license or engage
28 in the business or capacity, either directly or indirectly,
29 of a real estate broker, unless every officer of the
30 corporation who actively participates in the real estate
31 activities of the corporation holds a license as a real
32 estate broker and unless every employee who acts as a
33 salesperson, or leasing agent for the corporation holds a
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1 license as a real estate broker, salesperson, or leasing
2 agent.
3 (c) No partnership shall be granted a license or engage
4 in the business or serve in the capacity, either directly or
5 indirectly, of a real estate broker, unless every general
6 partner in the partnership holds a license as a real estate
7 broker and unless every employee who acts as a salesperson or
8 leasing agent for the partnership holds a license as a real
9 estate broker, salesperson, or leasing agent. In the case of
10 a registered limited liability partnership (LLP), every
11 partner in the LLP must hold a license as a real estate
12 broker and every employee who acts as a salesperson or
13 leasing agent must hold a license as a real estate broker,
14 salesperson, or leasing agent.
15 (d) No limited liability company shall be granted a
16 license or engage in the business or serve in the capacity,
17 either directly or indirectly, of a real estate broker unless
18 every manager in the limited liability company holds a
19 license as a real estate broker and unless every member and
20 employee who acts as a salesperson or leasing agent for the
21 limited liability company holds a license as a real estate
22 broker, salesperson, or leasing agent.
23 (e) No partnership, limited liability company, or
24 corporation shall be licensed to conduct a brokerage business
25 where an individual salesperson or leasing agent, or group of
26 salespersons or leasing agents, owns or directly or
27 indirectly controls more than 49% of the shares of stock or
28 other ownership in the partnership, limited liability
29 company, or corporation.
30 Section 5-20. Exemptions from broker, salesperson, or
31 leasing agent license requirement. The requirement for
32 holding a license under this Article 5 shall not apply to:
33 (1) Any person or entity that owns at least 51% of the
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1 real estate being sold, leased, exchanged or otherwise
2 transferred. This exemption shall extend to the full-time
3 employees of any entity exempt under this Section who do not
4 engage in licensed activities described in the definition of
5 "broker" under Section 1-10 of this Act in connection with
6 real estate not so owned by that entity. However, this
7 exemption shall not apply to the employees of any affiliated,
8 related, or subsidiary entity that is not wholly owned by the
9 exempt entity nor to the employees of a general partner,
10 partner, or managing member of an entity unless that general
11 partner, partner, or managing member owns at least a 51%
12 interest in the exempt entity.
13 (2) An attorney in fact acting under a duly executed and
14 recorded power of attorney to convey real estate from the
15 owner or lessor or the services rendered by an attorney at
16 law in the performance of the attorney's duty as an attorney
17 at law.
18 (3) Any person acting as receiver, trustee in
19 bankruptcy, administrator, executor, or guardian or while
20 acting under a court order or under the authority of a will
21 or testamentary trust.
22 (4) Any person acting as a resident manager for the
23 owner or any employee acting as the resident manager for a
24 broker managing an apartment building, duplex, or apartment
25 complex, when the resident manager resides on the premises,
26 the premises is his or her primary residence, and the
27 resident manager is engaged in the leasing of the property of
28 which he or she is the resident manager.
29 (5) Any officer or employee of a federal agency in the
30 conduct of official duties.
31 (6) Any officer or employee of the State government or
32 any political subdivision thereof performing official duties.
33 (7) Any multiple listing service or other information
34 exchange that is engaged in the collection and dissemination
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1 of information concerning real estate available for sale,
2 purchase, lease, or exchange along with which no other
3 licensed activities are provided.
4 (8) Railroads and other public utilities regulated by
5 the State of Illinois, or the officers or full time employees
6 thereof, unless the performance of any licensed activities is
7 in connection with the sale, purchase, lease, or other
8 disposition of real estate or investment therein not needing
9 the approval of the appropriate State regulatory authority.
10 (9) Any medium of advertising in the routine course of
11 selling or publishing advertising along with which no other
12 licensed activities are provided.
13 (10) Any resident lessee of a residential dwelling unit
14 who refers for compensation to the owner of the dwelling
15 unit, or to the owner's agent, prospective lessees of
16 dwelling units in the same building or complex as the
17 resident lessee's unit, but only if the resident lessee (i)
18 refers no more than 3 prospective lessees in any 12-month
19 period, (ii) receives compensation of no more than $1,000 or
20 the equivalent of one month's rent, whichever is less, in any
21 12-month period, and (iii) limits his or her activities to
22 referring prospective lessees to the owner, or the owner's
23 agent, and does not show a residential dwelling unit to a
24 prospective lessee, discuss terms or conditions of leasing a
25 dwelling unit with a prospective lessee, or otherwise
26 participate in the negotiation of the leasing of a dwelling
27 unit.
28 Section 5-25. Application for and issuance of broker or
29 salesperson license.
30 (a) Every person who desires to obtain a license shall
31 make application to OBRE in writing upon forms prepared and
32 furnished by OBRE. In addition to any other information
33 required to be contained in the application, every
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1 application for an original or renewed license shall include
2 the applicant's Social Security number. Each applicant shall
3 be at least 21 years of age, be of good moral character, and
4 have successfully completed a 4-year course of study in a
5 high school or secondary school approved by the Illinois
6 State Board of Education or an equivalent course of study as
7 determined by an examination conducted by the Illinois State
8 Board of Education and shall be verified under oath by the
9 applicant. The minimum age of 21 years shall be waived for
10 any person seeking a license as a real estate salesperson who
11 has attained the age of 18 and can provide evidence of the
12 successful completion of at least 4 semesters of
13 post-secondary school study as a full-time student or the
14 equivalent, with major emphasis on real estate courses, in a
15 school approved by OBRE.
16 (b) When an applicant has had his or her license revoked
17 on a prior occasion or when an applicant is found to have
18 committed any of the practices enumerated in Section 20-20 of
19 this Act or when an applicant has been convicted of forgery,
20 embezzlement, obtaining money under false pretenses, larceny,
21 extortion, conspiracy to defraud, or any other similar
22 offense or offenses or has been convicted of a felony
23 involving moral turpitude in any court of competent
24 jurisdiction in this or any other state, district, or
25 territory of the United States or of a foreign country, the
26 Board may consider the prior revocation, conduct, or
27 conviction in its determination of the applicant's moral
28 character and whether to grant the applicant a license. In
29 its consideration of the prior revocation, conduct, or
30 conviction, the Board shall take into account the nature of
31 the conduct, any aggravating or extenuating circumstances,
32 the time elapsed since the revocation, conduct, or
33 conviction, the rehabilitation or restitution performed by
34 the applicant, and any other factors that the Board deems
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1 relevant. When an applicant has made a false statement of
2 material fact on his or her application, the false statement
3 may in itself be sufficient grounds to revoke or refuse to
4 issue a license.
5 (c) Every valid application for issuance of an initial
6 license shall be accompanied by a sponsor card and the fees
7 specified by rule.
8 (d) No applicant shall engage in any of the activities
9 covered by this Act until a valid sponsor card has been
10 issued to such applicant. The sponsor card shall be valid
11 for a maximum period of 45 days from the date of issuance
12 unless extended for good cause as provided by rule.
13 (e) OBRE shall issue to each applicant entitled thereto
14 a license in such form and size as shall be prescribed by
15 OBRE. The procedure for terminating a license shall be
16 printed on the reverse side of the license. Each license
17 shall bear the name of the person so qualified, shall specify
18 whether the person is qualified to act in a broker or
19 salesperson capacity, and shall contain such other
20 information as shall be recommended by the Board and approved
21 by OBRE. Each person licensed under this Act shall display
22 his or her license conspicuously in his or her place of
23 business.
24 Section 5-30. Education requirements to obtain an
25 original broker or salesperson license.
26 (a) All applicants for a broker's license, except
27 applicants who meet the criteria set forth in subsection (c)
28 of this Section shall (i) give satisfactory evidence of
29 having completed at least 120 classroom hours, 45 of which
30 shall be those hours required to obtain a salesperson's
31 license plus 15 hours in brokerage administration courses, in
32 real estate courses approved by the Advisory Council or (ii)
33 for applicants who currently hold a valid real estate
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1 salesperson's license, give satisfactory evidence of having
2 completed at least 75 hours in real estate courses, not
3 including the courses that are required to obtain a
4 salesperson's license, approved by the Advisory Council.
5 (b) All applicants for a salesperson's license, except
6 applicants who meet the criteria set forth in subsection (c)
7 of this Section shall give satisfactory evidence that they
8 have completed at least 45 hours of instruction in real
9 estate courses approved by the Advisory Council.
10 (c) The requirements specified in subsections (a) and
11 (b) of this Section do not apply to applicants who:
12 (1) are currently admitted to practice law by the
13 Supreme Court of Illinois and are currently in active
14 standing; or
15 (2) show evidence of receiving a baccalaureate
16 degree including courses involving real estate or related
17 material from a college or university approved by the
18 Advisory Council.
19 (d) A minimum of 15 of the required hours of pre-license
20 education shall be in the areas of Article 15 of this Act,
21 disclosure and environmental issues, or any other currently
22 topical areas that are determined by the Advisory Council.
23 Section 5-35. Examination; broker or salesperson.
24 (a) Every person who makes application for an original
25 license as a broker or salesperson shall personally take and
26 pass a written examination authorized by OBRE and answer any
27 questions that may be required to determine the good moral
28 character of the applicant and the applicant's competency to
29 transact the business of broker or salesperson, as the case
30 may be, in such a manner as to safeguard the interests of the
31 public. In determining this competency, OBRE shall require
32 proof that the applicant has a good understanding and the
33 knowledge to conduct real estate brokerage and of the
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1 provisions of this Act. The examination shall be prepared by
2 an independent testing service designated by OBRE, subject to
3 the approval of the examinations by the Board. The
4 designated independent testing service shall conduct the
5 examinations at such times and places as OBRE shall approve.
6 In addition, every person who desires to take the written
7 examination shall make application to do so to OBRE or to the
8 designated independent testing service in writing upon forms
9 approved by OBRE. An applicant shall be eligible to take the
10 examination only after successfully completing the education
11 requirements, set forth in Section 5-30 of this Act, and
12 attaining the minimum age specified in this Act. Each
13 applicant shall be required to establish compliance with the
14 the eligibility requirements in the manner provided by the
15 rules promulgated for the administration of this Act.
16 (b) If a person who has received a passing score on the
17 written examination described in this Section fails to file
18 an application and meet all requirements for a license under
19 this Act within one year after receiving a passing score on
20 the examination, credit for the examination shall terminate.
21 The person thereafter may make a new application for
22 examination.
23 (c) If an applicant has failed an examination 3 times,
24 the applicant must repeat the pre-license education required
25 to sit for the examination. For the purposes of this
26 Section, the fourth attempt shall be the same as the first.
27 Approved education, as prescribed by this Act for licensure
28 as a salesperson or broker, shall be valid for a period
29 ending on the later of 2 years after the date of satisfactory
30 completion of the education or 2 years after the expiration
31 of the individual's license.
32 Section 5-40. Sponsor card; termination indicated by
33 license endorsement; association with new broker.
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1 (a) The sponsoring broker shall prepare upon forms
2 provided by OBRE and deliver to each licensee employed by or
3 associated with the sponsoring broker a sponsor card
4 certifying that the person whose name appears thereon is in
5 fact employed by or associated with the sponsoring broker.
6 The sponsoring broker shall send a duplicate of each sponsor
7 card, along with a valid license or other authorization as
8 provided by rule and the appropriate fee, to OBRE within 24
9 hours of issuance of the sponsor card. It is a violation of
10 this Act for any broker to issue a sponsor card to any
11 licensee or applicant unless the licensee or applicant
12 presents in hand a valid license or other authorization as
13 provided by rule.
14 (b) When a licensee terminates his or her employment or
15 association with a sponsoring broker or the employment is
16 terminated by the sponsoring broker, the licensee shall
17 obtain from the sponsoring broker his or her license endorsed
18 by the sponsoring broker indicating the termination. The
19 sponsoring broker shall surrender to OBRE a copy of the
20 license of the licensee within 2 days of the termination or
21 shall notify OBRE in writing of the termination and explain
22 why a copy of the license is not surrendered. Failure of the
23 sponsoring broker to surrender the license shall subject the
24 sponsoring broker to discipline under Section 20-20 of this
25 Act. The license of any licensee whose association with a
26 sponsoring broker is terminated shall automatically become
27 inoperative immediately upon the termination unless the
28 licensee accepts employment or becomes associated with a new
29 sponsoring broker pursuant to subsection (c) of this Section.
30 (c) When a licensee accepts employment or association
31 with a new sponsoring broker, the new sponsoring broker shall
32 send to OBRE a duplicate sponsor card, along with the
33 licensee's endorsed license or an affidavit of the licensee
34 of why the endorsed license is not surrendered, and shall pay
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1 the appropriate fee prescribed by rule to cover
2 administrative expenses attendant to the changes in the
3 registration of the licensee.
4 Section 5-45. Offices.
5 (a) If a sponsoring broker maintains more than one
6 office within the State, the sponsoring broker shall apply
7 for a branch office license for each office other than the
8 sponsoring broker's principal place of business. The branch
9 office license shall be displayed conspicuously in each
10 branch office. The name of each branch office shall be the
11 same as that of the sponsoring broker's principal office or
12 shall clearly delineate the branch office's relationship with
13 the principal office.
14 (b) The sponsoring broker shall name a managing broker
15 for each branch office and the sponsoring broker shall be
16 responsible for supervising all managing brokers. The
17 sponsoring broker shall notify OBRE in writing of the name of
18 all managing brokers of the sponsoring broker. Any changes
19 in managing brokers shall be reported to OBRE in writing
20 within 15 days of the change. Failure to do so shall subject
21 the sponsoring broker to discipline under Section 20-20 of
22 this Act.
23 (c) The sponsoring broker shall immediately notify OBRE
24 in writing of any opening, closing, or change in location of
25 any principal or branch office.
26 (d) Except as provided in this Section, each sponsoring
27 broker shall maintain a definite office, or place of business
28 within this State for the transaction of real estate
29 business, shall conspicuously display an identification sign
30 on the outside of his or her office of adequate size and
31 visibility, and shall conspicuously display his or her
32 license in his or her office or place of business and also
33 the licenses of all persons associated with or employed by
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1 the sponsoring broker who primarily work at that location.
2 The office or place of business shall not be located in any
3 retail or financial business establishment unless it is
4 separated from the other business by a separate and distinct
5 area within the establishment. A broker who is licensed in
6 this State by examination or pursuant to the provisions of
7 Section 5-60 of this Act shall not be required to maintain a
8 definite office or place of business in this State provided
9 all of the following conditions are met:
10 (1) the broker maintains an active broker's license
11 in the broker's state of domicile;
12 (2) the broker maintains an office in the broker's
13 state of domicile; and
14 (3) the broker has filed with OBRE written
15 statements appointing the Commissioner to act as the
16 broker's agent upon whom all judicial and other process
17 or legal notices directed to the licensee may be served
18 and agreeing to abide by all of the provisions of this
19 Act with respect to his or her real estate activities
20 within the State of Illinois and submitting to the
21 jurisdiction of OBRE.
22 The statements under subdivision (3) of this Section
23 shall be in form and substance the same as those statements
24 required under Section 5-60 of this Act and shall operate to
25 the same extent.
26 (e) Upon the loss of a managing broker who is not
27 replaced by the sponsoring broker or in the event of the
28 death or adjudicated disability of the sole proprietor of an
29 office, a written request for authorization allowing the
30 continued operation of the office may be submitted to OBRE
31 within 15 days of the loss. OBRE may issue a written
32 authorization allowing the continued operation, provided that
33 a licensed broker, or in the case of the death or adjudicated
34 disability of a sole proprietor, the representative of the
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1 estate, assumes responsibility, in writing, for the operation
2 of the office and agrees to personally supervise the
3 operation of the office. No such written authorization shall
4 be valid for more than 60 days unless extended by OBRE for
5 good cause shown and upon written request by the broker or
6 representative.
7 Section 5-50. Expiration date and renewal period of
8 broker, salesperson, or leasing agent license; sponsoring
9 broker; register of licensees; pocket card.
10 (a) The expiration date and renewal period for each
11 license issued under this Act shall be set by rule. Except
12 as otherwise provided in Section 5-55 of this Act, the holder
13 of a license may renew the license within 90 days preceding
14 the expiration date thereof by paying the fees specified by
15 rule. Upon written request from the sponsoring broker, OBRE
16 shall prepare and mail to the sponsoring broker a listing of
17 licensees under this Act who, according to the records of
18 OBRE, are sponsored by that broker. Every licensee
19 associated with or employed by a broker whose license is
20 revoked, suspended, terminated, or expired shall be
21 considered as inoperative until such time as the sponsoring
22 broker's license is reinstated or renewed, or the licensee
23 changes employment as set forth in subsection (c) of Section
24 5-40 of this Act.
25 (b) OBRE shall establish and maintain a register of all
26 persons currently licensed by the State and shall issue and
27 prescribe a form of pocket card. Upon payment by a licensee
28 of the appropriate fee as prescribed by rule for engagement
29 in the activity for which the licensee is qualified and holds
30 a license for the current period, OBRE shall issue a pocket
31 card to the licensee. The pocket card shall be verification
32 that the required fee for the current period has been paid
33 and shall indicate that the person named thereon is licensed
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1 for the current renewal period as a broker, salesperson, or
2 leasing agent as the case may be. The pocket card shall
3 further indicate that the person named thereon is authorized
4 by OBRE to engage in the licensed activity appropriate for
5 his or her status (broker, salesperson, or leasing agent).
6 Each licensee shall carry on his or her person his or her
7 pocket card or, if such pocket card has not yet been issued,
8 a properly issued sponsor card when engaging in any licensed
9 activity and shall display the same on demand.
10 Section 5-55. Expiration and renewal of broker or
11 salesperson license.
12 (a) Any broker or salesperson whose license under this
13 Act has expired shall be eligible to renew the license for a
14 period of 2 years following the expiration date, provided the
15 broker or salesperson pays the fees as prescribed by rule. A
16 broker or salesperson whose license has been expired for more
17 than 2 years shall be required to meet the requirements for a
18 new license.
19 (b) Notwithstanding any other provisions of this Act to
20 the contrary, any broker or salesperson whose license under
21 this Act has expired is eligible to renew the license without
22 paying any lapsed renewal fees or reinstatement fee, provided
23 that the license expired while the broker or salesperson was:
24 (1) on active duty with the United States Army,
25 United States Navy, United States Marine Corps, United
26 States Air Force, United States Coast Guard, or the State
27 Militia called into the service or training of the United
28 States;
29 (2) engaged in training or education under the
30 supervision of the United States prior to induction into
31 military service; or
32 (3) serving as the Director of Real Estate in the
33 State of Illinois or as an employee of OBRE.
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1 A broker or salesperson shall be eligible to renew a
2 license under the provisions of this Section for a period of
3 2 years following the termination of the service, education,
4 or training, provided that the termination was by other than
5 dishonorable discharge and provided that the licensee
6 furnishes OBRE an affidavit specifying that the broker or
7 salesperson has been so engaged and that the service,
8 education, or training has been so terminated.
9 Section 5-60. Broker licensed in another state;
10 nonresident salesperson; reciprocal agreements; agent for
11 service of process.
12 (a) A broker's license may be issued by OBRE to a broker
13 licensed under the laws of another state of the United
14 States, under the following conditions:
15 (1) the broker holds a broker's license in his or
16 her state of domicile;
17 (2) the standards for that state for licensing as a
18 broker are substantially equivalent to or greater than
19 the minimum standards in the State of Illinois;
20 (3) the broker has been actively practicing as a
21 broker in the broker's state of domicile for a period of
22 not less than 2 years, immediately prior to the date of
23 application;
24 (4) the broker furnishes OBRE with a statement
25 under seal of the proper licensing authority of the state
26 in which the broker is licensed showing that the broker
27 has an active broker's license, that the broker is in
28 good standing, and that no complaints are pending against
29 the broker in that state; and
30 (5) the broker completes a course of education and
31 passes a test on Illinois specific real estate brokerage
32 laws.
33 (b) A nonresident salesperson employed by or associated
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1 with a nonresident broker holding a broker's license in this
2 State pursuant to this Section may, in the discretion of
3 OBRE, be issued a nonresident salesperson's license under the
4 nonresident broker provided all of the following conditions
5 are met:
6 (1) the salesperson maintains an active license in
7 the state in which he or she is domiciled;
8 (2) the salesperson is domiciled in the same state
9 as the broker with whom he or she is associated; and
10 (3) the salesperson completes a course of education
11 and passes a test on Illinois specific real estate
12 brokerage laws.
13 The nonresident broker with whom the salesperson is
14 associated shall comply with the provisions of this Act and
15 issue the salesperson a sponsor card upon the form provided
16 by OBRE.
17 (c) As a condition precedent to the issuance of a
18 license to a nonresident broker or salesperson, the broker or
19 salesperson shall agree in writing to abide by all the
20 provisions of this Act with respect to his or her real estate
21 activities within the State of Illinois and submit to the
22 jurisdiction of OBRE as provided in this Act. The agreement
23 shall be filed with OBRE and shall remain in force for so
24 long as the nonresident broker or salesperson is licensed by
25 this State and thereafter with respect to acts or omissions
26 committed while licensed as a broker or salesperson in this
27 State.
28 (d) Prior to the issuance of any license to any
29 nonresident, verification of active licensure issued for the
30 conduct of such business in any other state must be filed
31 with OBRE by the nonresident, and the same fees must be paid
32 as provided in this Act for the obtaining of a broker's or
33 salesperson's license in this State.
34 (e) Licenses previously granted under reciprocal
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1 agreements shall remain in force, unless suspended, revoked,
2 or terminated by OBRE for any reason provided for suspension,
3 revocation, or termination of a resident licensee's license.
4 Licenses granted under reciprocal agreements may be renewed
5 in the same manner as a resident's license.
6 (f) Prior to the issuance of a license to a nonresident
7 broker or salesperson, the broker or salesperson shall file
8 with OBRE a designation in writing that appoints the
9 Commissioner to act as his or her agent upon whom all
10 judicial and other process or legal notices directed to the
11 broker or salesperson may be served. Service upon the agent
12 so designated shall be equivalent to personal service upon
13 the licensee. Copies of the appointment, certified by the
14 Commissioner, shall be deemed sufficient evidence thereof and
15 shall be admitted in evidence with the same force and effect
16 as the original thereof might be admitted. In the written
17 designation, the broker or salesperson shall agree that any
18 lawful process against the licensee that is served upon the
19 agent shall be of the same legal force and validity as if
20 served upon the licensee and that the authority shall
21 continue in force so long as any liability remains
22 outstanding in this State. Upon the receipt of any process
23 or notice, the Commissioner shall forthwith mail a copy of
24 the same by certified mail to the last known business address
25 of the licensee.
26 (g) Any person holding a valid license under this
27 Section shall be eligible to obtain a resident broker's or
28 salesperson's license without examination should that person
29 change their state of domicile to Illinois and that person
30 otherwise meets the qualifications or licensure under this
31 Act.
32 Section 5-65. Fees. OBRE shall provide by rule for fees
33 to be paid by applicants and licensees to cover the
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1 reasonable costs of OBRE in administering and enforcing the
2 provisions of this Act. OBRE may also provide by rule for
3 general fees to cover the reasonable expenses of carrying out
4 other functions and responsibilities under this Act.
5 Section 5-70. Continuing education requirement; broker
6 or salesperson.
7 (a) Each person who applies for renewal of his or her
8 license as a real estate broker or real estate salesperson
9 must successfully complete real estate continuing education
10 courses approved by the Advisory Council at the rate of 6
11 hours per year or its equivalent. No license may be renewed
12 except upon the successful completion of the required courses
13 or their equivalent or upon a waiver of those requirements
14 for good cause shown as determined by the Commissioner with
15 the recommendation of the Advisory Council. The requirements
16 of this Article are applicable to all brokers and
17 salespersons except those brokers and salespersons who,
18 during the prerenewal period:
19 (1) serve in the armed services of the United
20 States;
21 (2) serve as an elected State or federal official;
22 (3) serve as a full-time employee of OBRE; or
23 (4) are admitted to practice law pursuant to
24 Illinois Supreme Court rule.
25 (b) A person who is issued an initial license as a real
26 estate salesperson less than one year prior to the expiration
27 date of that license shall not be required to complete
28 continuing education as a condition of license renewal. A
29 person who is issued an initial license as a real estate
30 broker less than one year prior to the expiration date of
31 that license and who has not been licensed as a real estate
32 salesperson during the prerenewal period shall not be
33 required to complete continuing education as a condition of
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1 license renewal.
2 (c) The continuing education requirement for
3 salespersons and brokers shall consist of a core curriculum
4 and an elective curriculum, to be established by the Advisory
5 Council. In meeting the continuing education requirements of
6 this Act, at least 3 hours per year or their equivalent shall
7 be required to be completed in the core curriculum. In
8 establishing the core curriculum, the Advisory Council shall
9 consider subjects that will educate licensees on recent
10 changes in applicable laws and new laws and refresh the
11 licensee on areas of the license law and OBRE policy that the
12 Advisory Council deems appropriate, and any other areas that
13 the Advisory Council deems timely and applicable in order to
14 prevent violations of this Act and to protect the public. In
15 establishing the elective curriculum, the Advisory Council
16 shall consider subjects that cover the various aspects of the
17 practice of real estate that are covered under the scope of
18 this Act. However, the elective curriculum shall not include
19 any offerings referred to in Section 5-85 of this Act.
20 (d) The subject areas of continuing education courses
21 approved by the Advisory Council may include without
22 limitation the following:
23 (1) license law and escrow;
24 (2) anti-trust;
25 (3) fair housing;
26 (4) agency;
27 (5) appraisal;
28 (6) property management;
29 (7) residential brokerage;
30 (8) farm property management;
31 (9) rights and duties of sellers, buyers, and
32 brokers;
33 (10) commercial brokerage and leasing; and
34 (11) real estate financing.
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1 (e) In lieu of credit for those courses listed in
2 subsection (d) of this Section, credit may be earned for
3 serving as a licensed instructor in an approved course of
4 continuing education. The amount of credit earned for
5 teaching a course shall be the amount of continuing education
6 credit for which the course is approved for licensees taking
7 the course.
8 (f) Credit hours may be earned for self-study programs
9 approved by the Advisory Council.
10 (g) A broker or salesperson may earn credit for a
11 specific continuing education course only once during the
12 prerenewal period.
13 (h) No more than 6 hours of continuing education credit
14 may be earned in one calendar day.
15 Section 5-75. Out-of-state continuing education credit.
16 If a renewal applicant has earned continuing education hours
17 in another state or territory for which he or she is claiming
18 credit toward full compliance in Illinois, the Advisory
19 Council shall review, approve, or disapprove those hours
20 based upon whether the course is one that would be approved
21 under Section 5-70 of this Act, whether the course meets the
22 basic requirements for continuing education under this Act,
23 and any other criteria that is provided by statute or rule.
24 Section 5-80. Evidence of compliance with continuing
25 education requirements.
26 (a) Each renewal applicant shall certify, on his or her
27 renewal application, full compliance with continuing
28 education requirements set forth in Section 5-70. The
29 continuing education school shall retain and submit to OBRE
30 after the completion of each course evidence of those
31 successfully completing the course as provided by rule.
32 (b) OBRE may require additional evidence demonstrating
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1 compliance with the continuing education requirements. The
2 renewal applicant shall retain and produce the evidence of
3 compliance upon request of OBRE.
4 Section 5-85. Offerings not meeting continuing education
5 requirements. The following offerings do not meet the
6 continuing education requirements:
7 (1) Examination preparation offerings, except as
8 provided in Section 5-70 of this Act.
9 (2) Offerings in mechanical office and business
10 skills such as typing, speed reading, memory improvement,
11 advertising, or psychology of sales.
12 (3) Sales promotion or other meetings held in
13 conjunction with the general business of the attendee or
14 his or her employer.
15 (4) Meetings that are a normal part of in-house
16 staff or employee training.
17 The offerings listed in this Section do not limit the
18 Advisory Council's authority to disapprove any course that
19 fails to meet the standards of this Article 5 or rules
20 adopted by OBRE.
21 ARTICLE 10. COMPENSATION AND BUSINESS PRACTICES
22 Section 10-5. Payment of compensation.
23 (a) No licensee shall pay compensation directly to a
24 licensee sponsored by another broker for the performance of
25 licensed activities. No licensee sponsored by a broker may
26 pay compensation to any licensee other than his or her
27 sponsoring broker for the performance of licensed activities
28 unless the licensee paying the compensation is a principal to
29 the transaction. However, a non-sponsoring broker may pay
30 compensation directly to a licensee sponsored by another or a
31 person who is not sponsored by a broker if the payments are
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1 made pursuant to terms of an employment agreement that was
2 previously in place between a licensee and the non-sponsoring
3 broker, and the payments are for licensed activity performed
4 by that person while previously sponsored by the now
5 non-sponsoring broker.
6 (b) No licensee sponsored by a broker shall accept
7 compensation for the performance of activities under this Act
8 except from the broker by whom the licensee is sponsored,
9 except as provided in this Section.
10 (c) Any person that is a licensed personal assistant for
11 another licensee may only be compensated in his or her
12 capacity as a personal assistant by the sponsoring broker for
13 that licensed personal assistant.
14 (d) One sponsoring broker may pay compensation directly
15 to another sponsoring broker for the performance of licensed
16 activities.
17 Section 10-10. Disclosure of compensation.
18 (a) A licensee must disclose to a client the sponsoring
19 broker's compensation and policy with regard to cooperating
20 with brokers who represent other parties in a transaction.
21 (b) A licensee must disclose to a client all sources of
22 compensation related to the transaction received by the
23 licensee from a third party.
24 (c) If in any one transaction a sponsoring broker
25 receives compensation from both the buyer and seller or
26 lessee and lessor of real estate, the sponsoring broker shall
27 disclose in writing to a client the fact that the
28 compensation is being paid by both buyer and seller or lessee
29 and lessor.
30 (d) Nothing in the Act shall prohibit the cooperation
31 with or a payment of compensation to a person not domiciled
32 in this State who is licensed as a real estate broker in his
33 or her state of domicile.
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1 Section 10-15. No compensation to persons in violation
2 of Act; compensation to unlicensed persons; consumer.
3 (a) No compensation may be paid to any unlicensed person
4 in exchange for the person performing licensed activities in
5 violation of this Act.
6 (b) No action or suit shall be instituted, nor recovery
7 therein be had, in any court of this State by any person,
8 partnership, registered limited liability partnership,
9 limited liability company, or corporation for compensation
10 for any act done or service performed, the doing or
11 performing of which is prohibited by this Act to other than
12 licensed brokers, salespersons, or leasing agents unless the
13 person, partnership, registered limited liability
14 partnership, limited liability company, or corporation was
15 duly licensed hereunder as a broker, salesperson, or leasing
16 agent under this Act at the time that any such act was done
17 or service performed that would give rise to a cause of
18 action for compensation.
19 (c) A licensee may offer compensation, including prizes,
20 merchandise, services, rebates, discounts, or other
21 consideration to an unlicensed person who is a party to a
22 contract to buy or sell real estate or is a party to a
23 contract for the lease of real estate, so long as the offer
24 complies with the provisions of subdivision (26) of
25 subsection (h) of Section 20-20 of this Act.
26 (d) A licensee may offer cash, gifts, prizes, awards,
27 coupons, merchandise, rebates or chances to win a game of
28 chance, if not prohibited by any other law or statute, to a
29 consumer as an inducement to that consumer to use the
30 services of the licensee even if the licensee and consumer do
31 not ultimately enter into a broker-client relationship so
32 long as the offer complies with the provisions of subdivision
33 (26) of subsection (h) of Section 20-20 of this Act.
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1 Section 10-20. Sponsoring broker; employment agreement.
2 (a) A licensee may perform activities as a licensee only
3 for his or her sponsoring broker. A licensee must have only
4 one sponsoring broker at any one time.
5 (b) Every broker who employs licensees or has an
6 independent contractor relationship with a licensee shall
7 have a written employment agreement with each such licensee.
8 The broker having this written employment agreement with the
9 licensee must be that licensee's sponsoring broker.
10 (c) Every sponsoring broker must have a written
11 employment agreement with each licensee the broker sponsors.
12 The agreement shall address the employment or independent
13 contractor relationship terms, including without limitation
14 supervision, duties, compensation, and termination.
15 (d) Every sponsoring broker must have a written
16 employment agreement with each licensed personal assistant
17 who assists a licensee sponsored by the sponsoring broker.
18 This requirement applies to all licensed personal assistants
19 whether or not they perform licensed activities in their
20 capacity as a personal assistant. The agreement shall address
21 the employment or independent contractor relationship terms,
22 including without limitation supervision, duties,
23 compensation, and termination.
24 (e) Notwithstanding the fact that a sponsoring broker
25 has an employment agreement with a licensee, a sponsoring
26 broker may pay compensation directly to a corporation solely
27 owned by that licensee that has been formed for the purpose
28 of receiving compensation earned by the licensee. A
29 corporation formed for the purpose herein stated in this
30 subsection (e) shall not be required to be licensed under
31 this Act so long as the person who is the sole shareholder of
32 the corporation is licensed.
33 Section 10-25. Expiration of brokerage agreement. No
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1 licensee shall obtain any written brokerage agreement that
2 does not provide for automatic expiration within a definite
3 period of time. No notice of termination at the final
4 expiration thereof shall be required. Any written brokerage
5 agreement not containing a provision for automatic expiration
6 shall be void. When the license of any sponsoring broker is
7 suspended or revoked, any brokerage agreement with the
8 sponsoring broker shall be deemed to expire upon the
9 effective date of the suspension or revocation.
10 Section 10-30. Advertising.
11 (a) No advertising shall be fraudulent, deceptive,
12 inherently misleading, or proven to be misleading in
13 practice. It shall be considered misleading or untruthful
14 if, when taken as a whole, there is a distinct and reasonable
15 possibility that it will be misunderstood or will deceive the
16 ordinary purchaser, seller, lessee, lessor, or owner.
17 Advertising shall contain all information necessary to
18 communicate the information contained therein to the public
19 in a direct and readily comprehensible manner.
20 (b) No blind advertisements may be used by any licensee
21 except as provided for in this Section.
22 (c) A licensee shall disclose, in writing, to all
23 parties in a transaction his or her status as a licensee and
24 any and all interest the licensee has or may have in the real
25 estate constituting the subject matter thereof, directly or
26 indirectly, according to the following guidelines:
27 (1) On broker yard signs or in broker
28 advertisements, no disclosure of ownership is necessary.
29 However, the ownership shall be indicated on any property
30 data form and disclosed to persons responding to any
31 advertisement or any sign. The term "broker owned" or
32 "agent owned" is sufficient disclosure.
33 (2) A sponsored or inoperative licensee selling or
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1 leasing property, owned solely by the sponsored or
2 inoperative licensee, without utilizing brokerage
3 services of their sponsoring broker or any other
4 licensee, may advertise "By Owner". For purposes of this
5 Section, property is "solely owned" by a sponsored or
6 inoperative licensee if he or she (i) has a 100%
7 ownership interest alone, (ii) has ownership as a joint
8 tenant or tenant by the entirety, or (iii) holds a 100%
9 beneficial interest in a land trust. Sponsored or
10 inoperative licensees selling or leasing "By Owner" shall
11 comply with the following if advertising by owner:
12 (A) On "By Owner" yard signs, the sponsored or
13 inoperative licensee shall indicate "broker owned"
14 or "agent owned." "By Owner" advertisements used in
15 any medium of advertising shall include the term
16 "broker owned" or "agent owned."
17 (B) If a sponsored or inoperative licensee
18 runs advertisements, for the purpose of purchasing
19 or leasing real estate, he or she shall disclose in
20 the advertisements his or her status as a licensee.
21 (C) A sponsored or inoperative licensee shall
22 not use the sponsoring broker's name or the
23 sponsoring broker's company name in connection with
24 the sale, lease, or advertisement of the property
25 nor utilize the sponsoring broker's or company's
26 name in connection with the sale, lease, or
27 advertising of the property in a manner likely to
28 create confusion among the public as to whether or
29 not the services of a real estate company are being
30 utilized or whether or not a real estate company has
31 an ownership interest in the property.
32 (d) A sponsored licensee may not advertise under his or
33 her own name. Advertising shall be under the direct
34 supervision of the sponsoring or managing broker and in the
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1 sponsoring broker's business name, which in the case of a
2 franchise shall include the franchise affiliation as well as
3 the name of the individual firm. This provision does not
4 apply under the following circumstances:
5 (1) When a licensee enters into a brokerage
6 agreement relating to his or her own real estate, or real
7 estate in which he or she has an ownership interest, with
8 another licensed broker; or
9 (2) When a licensee is selling or leasing his or
10 her own real estate or buying or leasing real estate for
11 himself or herself, after providing the appropriate
12 written disclosure of his or her ownership interest as
13 required in paragraph (2) of subsection (c) of this
14 Section.
15 (e) No licensee shall list his or her name under the
16 heading or title "Real Estate" in the telephone directory or
17 otherwise advertise in his or her own name to the general
18 public through any medium of advertising as being in the real
19 estate business without listing his or her sponsoring
20 broker's business name.
21 (f) The sponsoring broker's business name and the name
22 of the licensee must appear in all advertisements, including
23 business cards. Nothing in this Act shall be construed to
24 require specific print size as between the broker's business
25 name and the name of the licensee.
26 ARTICLE 15. AGENCY RELATIONSHIPS
27 Section 15-5. Legislative intent.
28 (a) The General Assembly finds that application of the
29 common law of agency to the relationships among real estate
30 brokers and salespersons and consumers of real estate
31 brokerage services has resulted in misunderstandings and
32 consequences that have been contrary to the best interests of
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1 the public. The General Assembly further finds that the real
2 estate brokerage industry has a significant impact upon the
3 economy of the State of Illinois and that it is in the best
4 interest of the public to provide codification of the
5 relationships between real estate brokers and salespersons
6 and consumers of real estate brokerage services in order to
7 prevent detrimental misunderstandings and misinterpretations
8 of the relationships by consumers, real estate brokers, and
9 salespersons and thus promote and provide stability in the
10 real estate market. This Article 15 is enacted to govern the
11 relationships between consumers of real estate brokerage
12 services and real estate brokers and salespersons to the
13 extent not governed by individual written agreements. This
14 Article 15 applies to the exclusion of the common law
15 concepts of principal and agent and to the fiduciary duties,
16 which have been applied to real estate brokers, salespersons,
17 and real estate brokerage services.
18 (b) The General Assembly further finds that this Article
19 15 is not intended to prescribe or affect contractual
20 relationships between real estate brokers and the broker's
21 affiliated licensees.
22 (c) This Article 15 may serve as a basis for private
23 rights of action and defenses by sellers, buyers, landlords,
24 tenants, real estate brokers, and real estate salespersons.
25 The private rights of action, however, do not extend to the
26 provisions of any other Articles of this Act.
27 Section 15-10. Relationships between licensees and
28 consumers. Licensees shall be considered to be representing
29 the consumer they are working with as a designated agent for
30 the consumer unless:
31 (1) there is a written agreement between the
32 sponsoring broker and the consumer providing that there
33 is a different relationship; or
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1 (2) the licensee is performing only ministerial
2 acts on behalf of the consumer.
3 Section 15-15. Duties of licensees representing clients.
4 (a) A licensee representing a client shall:
5 (1) Perform the terms of the brokerage agreement
6 between a broker and the client.
7 (2) Promote the best interest of the client by:
8 (A) Seeking a transaction at the price and
9 terms stated in the brokerage agreement or at a
10 price and terms otherwise acceptable to the client.
11 (B) Timely presenting all offers to and from
12 the client, unless the client has waived this duty.
13 (C) Disclosing to the client material facts
14 concerning the transaction of which the licensee has
15 actual knowledge, unless that information is
16 confidential information. Material facts do not
17 include physical conditions, fact situations, or
18 occurrences located on real estate that is not the
19 subject of the transaction.
20 (D) Timely accounting for all money and
21 property received in which the client has, may have,
22 or should have had an interest.
23 (E) Obeying specific directions of the client
24 that are not otherwise contrary to applicable
25 statutes, ordinances, or rules.
26 (F) Acting in a manner consistent with
27 promoting the client's best interests as opposed to
28 a licensee's or any other person's self-interest.
29 (3) Exercise reasonable skill and care in the
30 performance of brokerage services.
31 (4) Keep confidential all confidential information
32 received from the client.
33 (5) Comply with all requirements of this Act and
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1 all applicable statutes and regulations, including
2 without limitation fair housing and civil rights
3 statutes.
4 (b) A licensee representing a client does not breach a
5 duty or obligation to the client by showing alternative
6 properties to prospective buyers or tenants or by showing
7 properties in which the client is interested to other
8 prospective buyers or tenants.
9 (c) A licensee representing a buyer or tenant client
10 will not be presumed to have breached a duty or obligation to
11 that client by working on the basis that the licensee will
12 receive a higher fee or compensation based on higher selling
13 price or lease cost.
14 (d) A licensee shall not be liable to a client for
15 providing false information to the client if the false
16 information was provided to the licensee by a customer unless
17 the licensee knew or should have known the information was
18 false.
19 (e) Nothing in the Section shall be construed as
20 changing a licensee's duty under common law as to negligent
21 or fraudulent misrepresentation of material information.
22 Section 15-20. Failure to disclose information not
23 affecting physical condition. No cause of action shall arise
24 against a licensee for the failure to disclose that an
25 occupant of that property was afflicted with Human
26 Immunodeficiency Virus (HIV) or any other medical condition
27 or that the property was the site of an act or occurrence
28 that had no effect on the physical condition of the property
29 or its environment or the structures located thereon.
30 Section 15-25. Licensee's relationship with customers.
31 (a) Licensees shall treat all customers honestly and
32 shall not negligently or knowingly give them false
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1 information. A licensee engaged by a seller client shall
2 timely disclose to customers who are prospective buyers all
3 latent material adverse facts pertaining to the physical
4 condition of the property that are actually known by the
5 licensee and that could not be discovered by a reasonably
6 diligent inspection of the property by the customer. A
7 licensee shall not be liable to a customer for providing
8 false information to the customer if the false information
9 was provided to the licensee by the licensee's client and the
10 licensee did not have actual knowledge that the information
11 was false. No cause of action shall arise on behalf of any
12 person against a licensee for revealing information in
13 compliance with this Section.
14 (b) A licensee representing a client in a real estate
15 transaction may provide assistance to a customer by
16 performing ministerial acts. Performing those ministerial
17 acts shall not be construed in a manner that would violate
18 the brokerage agreement with the client, and performing those
19 ministerial acts for the customer shall not be construed in a
20 manner as to form a brokerage agreement with the customer.
21 Section 15-30. Duties after termination of brokerage
22 agreement. Except as may be provided in a written agreement
23 between the broker and the client, neither a sponsoring
24 broker nor any licensee affiliated with the sponsoring broker
25 owes any further duties to the client after termination,
26 expiration, or completion of performance of the brokerage
27 agreement, except:
28 (1) to account for all moneys and property relating
29 to the transaction; and
30 (2) to keep confidential all confidential
31 information received during the course of the brokerage
32 agreement.
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1 Section 15-35. Agency relationship disclosure.
2 (a) A consumer shall be advised of the following no
3 later than entering into a brokerage agreement with the
4 sponsoring broker:
5 (1) That a designated agency relationship exists,
6 unless there is written agreement between the sponsoring
7 broker and the consumer providing for a different
8 brokerage relationship.
9 (2) The name or names of his or her designated
10 agent or agents in writing.
11 (3) The sponsoring broker's compensation and policy
12 with regard to cooperating with brokers who represent
13 other parties in a transaction.
14 (b) A licensee shall disclose in writing to a customer
15 that the licensee is not acting as the agent of the customer
16 at a time intended to prevent disclosure of confidential
17 information from a customer to a licensee, but in no event
18 later than the preparation of an offer to purchase or lease
19 real property. This subsection (b) does not apply to
20 residential lease or rental transactions unless the lease or
21 rental agreement includes an option to purchase real estate.
22 Section 15-40. Compensation does not determine agency.
23 Compensation does not determine agency relationship. The
24 payment or promise of payment of compensation to a licensee
25 is not determinative of whether an agency relationship has
26 been created between any licensee and a consumer.
27 Section 15-45. Dual agency.
28 (a) A licensee may act as a dual agent only with the
29 informed written consent of all clients. Informed written
30 consent shall be presumed to have been given by any client
31 who signs a document that includes the following:
32 "The undersigned (insert name(s)), ("Licensee"), may
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1 undertake a dual representation (represent both the
2 seller or landlord and the buyer or tenant) for the sale
3 or lease of property. The undersigned acknowledge they
4 were informed of the possibility of this type of
5 representation. Before signing this document please read
6 the following: Representing more than one party to a
7 transaction presents a conflict of interest since both
8 clients may rely upon Licensee's advice and the client's
9 respective interests may be adverse to each other.
10 Licensee will undertake this representation only with the
11 written consent of ALL clients in the transaction. Any
12 agreement between the clients as to a final contract
13 price and other terms is a result of negotiations between
14 the clients acting in their own best interests and on
15 their own behalf. You acknowledge that Licensee has
16 explained the implications of dual representation,
17 including the risks involved, and understand that you
18 have been advised to seek independent advice from your
19 advisors or attorneys before signing any documents in
20 this transaction.
21 WHAT A LICENSEE CAN DO FOR CLIENTS
22 WHEN ACTING AS A DUAL AGENT
23 1. Treat all clients honestly.
24 2. Provide information about the property to the buyer
25 or tenant.
26 3. Disclose all latent material defects in the property
27 that are known to the Licensee.
28 4. Disclose financial qualification of the buyer or
29 tenant to the seller or landlord.
30 5. Explain real estate terms.
31 6. Help the buyer or tenant to arrange for property
32 inspections.
33 7. Explain closing costs and procedures.
34 8. Help the buyer compare financing alternatives.
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1 9. Provide information about comparable properties that
2 have sold so both clients may make educated decisions on
3 what price to accept or offer.
4 WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
5 ACTING AS A DUAL AGENT
6 1. Confidential information that Licensee may know about
7 a client, without that client's permission.
8 2. The price the seller or landlord will take other than
9 the listing price without permission of the seller or
10 landlord.
11 3. The price the buyer or tenant is willing to pay
12 without permission of the buyer or tenant.
13 4. A recommended or suggested price the buyer or tenant
14 should offer.
15 5. A recommended or suggested price the seller or
16 landlord should counter with or accept.
17 If either client is uncomfortable with this
18 disclosure and dual representation, please let Licensee
19 know. You are not required to sign this document unless
20 you want to allow Licensee to proceed as a Dual Agent in
21 this transaction. By signing below, you acknowledge that
22 you have read and understand this form and voluntarily
23 consent to Licensee acting as a Dual Agent (that is, to
24 represent BOTH the seller or landlord and the buyer or
25 tenant) should that become necessary.".
26 (b) The dual agency disclosure form provided for in
27 subsection (a) of this Section must be presented by a
28 licensee, who offers dual representation, to the client at
29 the time the brokerage agreement is entered into and may be
30 signed by the client at that time or at any time before the
31 licensee acts as a dual agent as to the client.
32 (c) A licensee acting in a dual agency capacity in a
33 transaction must obtain a written confirmation from the
34 licensee's clients of their consent for the licensee to act
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1 as a dual agent in the transaction. This confirmation should
2 be obtained at the time the clients are executing any offer
3 or contract to purchase or lease in a transaction in which
4 the licensee is acting as a dual agent. This confirmation
5 may be included in another document, such as a contract to
6 purchase, in which case the client must not only sign the
7 document but also initial the confirmation of dual agency
8 provision. That confirmation must state, at a minimum, the
9 following:
10 "The undersigned confirm that they have previously
11 consented to (insert name(s)), ("Licensee"), acting as a
12 Dual Agent in providing brokerage services on their
13 behalf and specifically consent to Licensee acting as a
14 Dual Agent in regard to the transaction referred to in
15 this document.".
16 (d) No cause of action shall arise on behalf of any
17 person against a dual agent for making disclosures allowed or
18 required by this Article, and the dual agent does not
19 terminate any agency relationship by making the allowed or
20 required disclosures.
21 (e) In the case of dual agency, each client and the
22 licensee possess only actual knowledge and information.
23 There shall be no imputation of knowledge or information
24 among or between clients, brokers, or their affiliated
25 licensees.
26 (f) In any transaction, a licensee may without liability
27 withdraw from representing a client who has not consented to
28 a disclosed dual agency. The withdrawal shall not prejudice
29 the ability of the licensee to continue to represent the
30 other client in the transaction or limit the licensee from
31 representing the client in other transactions. When a
32 withdrawal as contemplated in this subsection (f) occurs, the
33 licensee shall not receive a referral fee for referring a
34 client to another licensee unless written disclosure is made
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1 to both the withdrawing client and the client that continues
2 to be represented by the licensee.
3 Section 15-50. Designated agency.
4 (a) A sponsoring broker entering into an agreement with
5 any person for the listing of property or for the purpose of
6 representing any person in the buying, selling, exchanging,
7 renting, or leasing of real estate may specifically designate
8 those licensees employed by or affiliated with the sponsoring
9 broker who will be acting as legal agents of that person to
10 the exclusion of all other licensees employed by or
11 affiliated with the sponsoring broker. A sponsoring broker
12 entering into an agreement under the provisions of this
13 Section shall not be considered to be acting for more than
14 one party in a transaction if the licensees specifically
15 designated as legal agents of a person are not representing
16 more than one party in a transaction.
17 (b) A sponsoring broker designating affiliated licensees
18 to act as agents of clients shall take ordinary and necessary
19 care to protect confidential information disclosed by a
20 client to his or her designated agent.
21 (c) A designated agent may disclose to his or her
22 sponsoring broker or persons specified by the sponsoring
23 broker confidential information of a client for the purpose
24 of seeking advice or assistance for the benefit of the client
25 in regard to a possible transaction. Confidential
26 information shall not be disclosed by the sponsoring broker
27 or other specified representative of the sponsoring broker
28 unless otherwise required by this Act or requested or
29 permitted by the client who originally disclosed the
30 confidential information.
31 Section 15-55. No subagency. A broker is not considered
32 to be a subagent of a client of another broker solely by
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1 reason of membership or other affiliation by the brokers in a
2 multiple listing service or other similar information source,
3 and an offer of subagency may not be made through a multiple
4 listing service or other similar information source.
5 Section 15-60. Vicarious liability. A consumer shall not
6 be vicariously liable for the acts or omissions of a licensee
7 in providing licensed activities for or on behalf of the
8 consumer.
9 Section 15-65. Regulatory enforcement. Nothing contained
10 in this Article limits OBRE in its regulation of licensees
11 under other Articles of this Act and the substantive rules
12 adopted by OBRE. OBRE, with the advice of the Board, is
13 authorized to promulgate any rules that may be necessary for
14 the implementation and enforcement of this Article 15.
15 Section 15-70. Actions for damages.
16 (a) In any action brought under this Article 15, the
17 court may, in its discretion, award only actual damages and
18 court costs or grant injunctive relief, when appropriate.
19 (b) Any action under this Article 15 shall be forever
20 barred unless commenced within one year after the person
21 bringing the action knew or should reasonably have known of
22 such act or omission. In no event shall the action be
23 brought more than 4 years after the date on which the act or
24 omission occurred. If the person entitled to bring the
25 action is under the age of 18 or under legal disability the
26 period of limitations shall not begin to run until the
27 disability is removed.
28 ARTICLE 20. DISCIPLINARY PROVISIONS
29 Section 20-5. Index of decisions. OBRE shall maintain an
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1 index of formal decisions regarding the issuance, refusal to
2 issue, renewal, refusal to renew, revocation, and suspension
3 of licenses and probationary or other disciplinary action
4 taken under this Act on or after July 1, 1999. The decisions
5 shall be indexed according to the Sections of statutes and
6 the administrative rules, if any, that are the basis for the
7 decision. The index shall be available to the public during
8 regular business hours.
9 Section 20-10. Unlicensed practice; civil penalty.
10 (a) Any person who practices, offers to practice,
11 attempts to practice, or holds oneself out to practice as a
12 real estate broker, real estate salesperson, or leasing agent
13 without being licensed under this Act shall, in addition to
14 any other penalty provided by law, pay a civil fine to OBRE
15 in an amount not to exceed $25,000 for each offense as
16 determined by OBRE. The civil fine shall be assessed by OBRE
17 after a hearing is held in accordance with the provisions set
18 forth in this Act regarding the provision of a hearing for
19 the discipline of a license.
20 (b) OBRE has the authority and power to investigate any
21 and all unlicensed activity.
22 (c) The civil fine shall be paid within 60 days after
23 the effective date of the order imposing the civil fine. The
24 order shall constitute a judgement and may be filed and
25 execution had thereon in the same manner from any court of
26 record.
27 Section 20-15. Violations. The commission of a single
28 act prohibited by this Act or prohibited by the rules
29 promulgated under this Act or a violation of a disciplinary
30 order issued under this Act constitutes a violation of this
31 Act.
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1 Section 20-20. Disciplinary actions; causes. OBRE may
2 refuse to issue or renew a license, may place on probation,
3 suspend, or revoke any license, or may censure, reprimand, or
4 otherwise discipline or impose a civil fine not to exceed
5 $25,000 upon any licensee hereunder for any one or any
6 combination of the following causes:
7 (a) When the applicant or licensee has, by false or
8 fraudulent representation, obtained or sought to obtain a
9 license.
10 (b) When the applicant or licensee has been convicted of
11 any crime, an essential element of which is dishonesty or
12 fraud or larceny, embezzlement, or obtaining money, property,
13 or credit by false pretenses or by means of a confidence
14 game, has been convicted in this or another state of a crime
15 that is a felony under the laws of this State, or has been
16 convicted of a felony in a federal court.
17 (c) When the applicant or licensee has been adjudged to
18 be a person under legal disability or subject to involuntary
19 admission or to meet the standard for judicial admission as
20 provided in the Mental Health and Developmental Disabilities
21 Code.
22 (d) When the licensee performs or attempts to perform
23 any act as a broker or salesperson in a retail sales
24 establishment from an office, desk, or space that is not
25 separated from the main retail business by a separate and
26 distinct area within the establishment.
27 (e) Discipline of a licensee by another state, the
28 District of Columbia, a territory, a foreign nation, a
29 governmental agency, or any other entity authorized to impose
30 discipline if at least one of the grounds for that discipline
31 is the same as or the equivalent of one of the grounds for
32 discipline set forth in this Act, in which case the only
33 issue will be whether one of the grounds for that discipline
34 is the same or equivalent to one of the grounds for
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1 discipline under this Act.
2 (f) When the applicant or licensee has engaged in real
3 estate activity without a license or after the licensee's
4 license was expired or while the license was inoperative.
5 (g) When the applicant or licensee attempts to subvert
6 or cheat on the Real Estate License Exam or continuing
7 education exam or aids and abets an applicant to subvert or
8 cheat on the Real Estate License Exam or continuing education
9 exam administered pursuant to this Act.
10 (h) When the licensee in performing, attempting to
11 perform, or pretending to perform any act as a broker,
12 salesperson, or leasing agent or when the licensee in
13 handling his or her own property, whether held by deed,
14 option, or otherwise, is found guilty of:
15 (1) Making any substantial misrepresentation or
16 untruthful advertising.
17 (2) Making any false promises of a character likely
18 to influence, persuade, or induce.
19 (3) Pursuing a continued and flagrant course of
20 misrepresentation or the making of false promises through
21 licensees, employees, agents, advertising, or otherwise.
22 (4) Any misleading or untruthful advertising, or
23 using any trade name or insignia of membership in any
24 real estate organization of which the licensee is not a
25 member.
26 (5) Acting for more than one party in a transaction
27 without providing written notice to all parties for whom
28 the licensee acts.
29 (6) Representing or attempting to represent a
30 broker other than the sponsoring broker.
31 (7) Failure to account for or to remit any moneys
32 or documents coming into his or her possession that
33 belong to others.
34 (8) Failure to maintain and deposit in a special
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1 account, separate and apart from personal and other
2 business accounts, all escrow moneys belonging to others
3 entrusted to a licensee while acting as a real estate
4 broker, escrow agent, or temporary custodian of the funds
5 of others or failure to maintain all escrow moneys on
6 deposit in the account until the transactions are
7 consummated or terminated, except to the extent that the
8 moneys, or any part thereof, shall be disbursed prior to
9 the consummation or termination in accordance with (i)
10 the written direction of the principals to the
11 transaction or their duly authorized agents or (ii)
12 directions providing for the release, payment, or
13 distribution of escrow moneys contained in any written
14 contract signed by the principals to the transaction or
15 their duly authorized agents. The account shall be
16 noninterest bearing, unless the character of the deposit
17 is such that payment of interest thereon is otherwise
18 required by law or unless the principals to the
19 transaction specifically require, in writing, that the
20 deposit be placed in an interest bearing account.
21 (9) Failure to make available to the real estate
22 enforcement personnel of OBRE during normal business
23 hours all escrow records and related documents maintained
24 in connection with the practice of real estate.
25 (10) Failing to furnish copies upon request of all
26 documents relating to a real estate transaction to all
27 parties executing them.
28 (11) Failure of a sponsoring broker to timely
29 provide information, sponsor cards, or termination of
30 licenses to OBRE.
31 (12) Having demonstrated unworthiness or
32 incompetency to act as a broker or salesperson in such
33 manner as to endanger the interest of the public.
34 (13) Commingling the money or property of others
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1 with his or her own.
2 (14) Employing any person on a purely temporary or
3 single deal basis as a means of evading the law regarding
4 payment of commission to nonlicensees on some
5 contemplated transactions.
6 (15) Permitting the use of his or her license as a
7 broker to enable a salesperson or unlicensed person to
8 operate a real estate business without actual
9 participation therein and control thereof by the broker.
10 (16) Any other conduct, whether of the same or a
11 different character from that specified in this Section,
12 that constitutes dishonest dealing.
13 (17) Displaying a "for rent" or "for sale" sign on
14 any property without the written consent of an owner or
15 his or her duly authorized agent or advertising by any
16 means that any property is for sale or for rent without
17 the written consent of the owner or his or her authorized
18 agent.
19 (18) Failing to provide information requested by
20 OBRE, within 30 days of the request, either as the result
21 of a formal or informal complaint to OBRE or as a result
22 of a random audit conducted by OBRE, which would indicate
23 a violation of this Act.
24 (19) Advertising by means of a blind advertisement,
25 except as otherwise permitted in Section 10-30 of this
26 Act.
27 (20) Offering guaranteed sales plans, as defined in
28 clause (A) of this subdivision (20), except to the extent
29 hereinafter set forth:
30 (A) A "guaranteed sales plan" is any real
31 estate purchase or sales plan whereby a licensee
32 enters into a conditional or unconditional written
33 contract with a seller by the terms of which a
34 licensee agrees to purchase a property of the seller
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1 within a specified period of time at a specific
2 price in the event the property is not sold in
3 accordance with the terms of a listing contract
4 between the sponsoring broker and the seller or on
5 other terms acceptable to the seller.
6 (B) A licensee offering a guaranteed sales
7 plan shall provide the details and conditions of the
8 plan in writing to the party to whom the plan is
9 offered.
10 (C) A licensee offering a guaranteed sales
11 plan shall provide to the party to whom the plan is
12 offered evidence of sufficient financial resources
13 to satisfy the commitment to purchase undertaken by
14 the broker in the plan.
15 (D) Any licensee offering a guaranteed sales
16 plan shall undertake to market the property of the
17 seller subject to the plan in the same manner in
18 which the broker would market any other property,
19 unless the agreement with the seller provides
20 otherwise.
21 (E) Any licensee who fails to perform on a
22 guaranteed sales plan in strict accordance with its
23 terms shall be subject to all the penalties provided
24 in this Act for violations thereof and, in addition,
25 shall be subject to a civil fine payable to the
26 party injured by the default in an amount of up to
27 $25,000.
28 (21) Influencing or attempting to influence, by any
29 words or acts, a prospective seller, purchaser, occupant,
30 landlord, or tenant of real estate, in connection with
31 viewing, buying, or leasing real estate, so as to promote
32 or tend to promote the continuance or maintenance of
33 racially and religiously segregated housing or so as to
34 retard, obstruct, or discourage racially integrated
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1 housing on or in any street, block, neighborhood, or
2 community.
3 (22) Engaging in any act that constitutes a
4 violation of any provision of Article 3 of the Illinois
5 Human Rights Act, whether or not a complaint has been
6 filed with or adjudicated by the Human Rights Commission.
7 (23) Inducing any party to a contract of sale or
8 lease or brokerage agreement to break the contract of
9 sale or lease or brokerage agreement for the purpose of
10 substituting, in lieu thereof, a new contract for sale or
11 lease or brokerage agreement with a third party.
12 (24) Negotiating a sale, exchange, or lease of real
13 estate directly with any person if the licensee knows
14 that the person has a written exclusive brokerage
15 agreement with another broker, unless specifically
16 authorized by that broker.
17 (25) When a licensee is also an attorney, acting as
18 the attorney for either the buyer or the seller in the
19 same transaction in which the licensee is acting or has
20 acted as a broker or salesperson.
21 (26) Advertising or offering merchandise or
22 services as free if any conditions or obligations
23 necessary for receiving the merchandise or services are
24 not disclosed in the same advertisement or offer. These
25 conditions or obligations include without limitation the
26 requirement that the recipient attend a promotional
27 activity or visit a real estate site. As used in this
28 subdivision (26), "free" includes terms such as "award",
29 "prize", "no charge," "free of charge," "without charge",
30 and similar words or phrases that reasonably lead a
31 person to believe that he or she may receive or has been
32 selected to receive something of value, without any
33 conditions or obligations on the part of the recipient.
34 (27) Disregarding or violating any provision of the
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1 Land Sales Registration Act of 1989, the Illinois Real
2 Estate Time-Share Act, or the published rules promulgated
3 by OBRE to enforce those Acts.
4 (28) Violating the terms of a disciplinary order
5 issued by OBRE.
6 (29) Paying compensation in violation of Article 10
7 of this Act.
8 (30) Requiring a party to a transaction who is not
9 a client of the licensee to allow the licensee to retain
10 a portion of the escrow moneys for payment of the
11 licensee's commission or expenses as a condition for
12 release of the escrow moneys to that party.
13 (31) Disregarding or violating any provision of
14 this Act or the published rules promulgated by OBRE to
15 enforce this Act or aiding or abetting any individual,
16 partnership, registered limited liability partnership,
17 limited liability company, or corporation in disregarding
18 any provision of this Act or the published rules
19 promulgated by OBRE to enforce this Act.
20 Section 20-25. Returned checks; fees. Any person who
21 delivers a check or other payment to OBRE that is returned to
22 OBRE unpaid by the financial institution upon which it is
23 drawn shall pay to OBRE, in addition to the amount already
24 owed to OBRE, a fee of $50. The fees imposed by this Section
25 are in addition to any other discipline provided under this
26 Act for unlicensed practice or practice on a nonrenewed
27 license. OBRE shall notify the person that payment of fees
28 and fines shall be paid to OBRE by certified check or money
29 order within 30 calendar days of the notification. If, after
30 the expiration of 30 days from the date of the notification,
31 the person has failed to submit the necessary remittance,
32 OBRE shall automatically terminate the license or deny the
33 application, without hearing. If, after termination or
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1 denial, the person seeks a license, he or she shall apply to
2 OBRE for restoration or issuance of the license and pay all
3 fees and fines due to OBRE. OBRE may establish a fee for the
4 processing of an application for restoration of a license to
5 pay all expenses of processing this application. The
6 Commissioner may waive the fees due under this Section in
7 individual cases where the Commissioner finds that the fees
8 would be unreasonable or unnecessarily burdensome.
9 Section 20-30. Standards of practice of leasing agents;
10 disciplinary procedures. OBRE may by rule, with the advice of
11 the Board, prescribe standards of practice to be followed by
12 licensed leasing agents. Standards of practice shall include
13 without limitation acts or omissions that leasing agents are
14 prohibited from engaging in, disciplinary procedures, and
15 penalties for violating provisions of this Act. Disciplinary
16 procedures shall conform with disciplinary procedures for
17 licensed real estate brokers and salespersons. Complaints
18 shall be heard as provided for in this Act.
19 Section 20-35. Violations of tax Acts. OBRE may refuse
20 to issue or renew or may suspend the license of any person
21 who fails to file a return, pay the tax, penalty, or interest
22 shown in a filed return, or pay any final assessment of tax,
23 penalty, or interest, as required by any tax Act administered
24 by the Department of Revenue, until such time as the
25 requirements of any such tax Act are satisfied.
26 Section 20-40. Disciplinary action for educational loan
27 defaults. OBRE shall deny a license or renewal authorized by
28 this Act to a person who has defaulted on an educational loan
29 or scholarship provided or guaranteed by the Illinois Student
30 Assistance Commission or any governmental agency of this
31 State; however, OBRE may issue a license or renewal if the
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1 person has established a satisfactory repayment record as
2 determined by the Illinois Student Assistance Commission or
3 other appropriate governmental agency of this State.
4 Additionally, a license issued by OBRE may be suspended or
5 revoked if the Commissioner, after the opportunity for a
6 hearing under this Article, finds that the licensee has
7 failed to make satisfactory repayment to the Illinois Student
8 Assistance Commission for a delinquent or defaulted loan.
9 Section 20-45. Nonpayment of child support. In cases in
10 which the Department of Public Aid has previously determined
11 that a licensee or a potential licensee is more than 30 days
12 delinquent in the payment of child support and has
13 subsequently certified the delinquency to OBRE, OBRE may
14 refuse to issue or renew or may revoke or suspend that
15 person's license or may take other disciplinary action
16 against that person based solely upon the certification of
17 delinquency made by the Department of Public Aid.
18 Redetermination of the delinquency by OBRE shall not be
19 required. In cases regarding the renewal of a license, OBRE
20 shall not renew any license if the Department of Public Aid
21 has certified the licensee to be more than 30 days delinquent
22 in the payment of child support unless the licensee has
23 arranged for payment of past and current child support
24 obligations in a manner satisfactory to the Department of
25 Public Aid. OBRE may impose conditions, restrictions, or
26 disciplinary action upon that renewal.
27 Section 20-50. Illegal discrimination. When there has
28 been an adjudication in a civil or criminal proceeding that a
29 licensee has illegally discriminated while engaged in any
30 activity for which a license is required under this Act,
31 OBRE, upon the recommendation of the Board as to the extent
32 of the suspension or revocation, shall suspend or revoke the
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1 license of that licensee in a timely manner, unless the
2 adjudication is in the appeal process. When there has been an
3 order in an administrative proceeding finding that a licensee
4 has illegally discriminated while engaged in any activity for
5 which a license is required under this Act, OBRE, upon
6 recommendation of the Board as to the nature and extent of
7 the discipline, shall take one or more of the disciplinary
8 actions provided for in Section 20-20 of this Act in a timely
9 manner, unless the administrative order is in the appeal
10 process.
11 Section 20-55. Illinois Administrative Procedure Act.
12 The Illinois Administrative Procedure Act is hereby expressly
13 adopted and incorporated herein as if all of the provisions
14 of that Act were included in this Act, except that the
15 provision of subsection (d) of Section 10-65 of the Illinois
16 Administrative Procedure Act that provides that at hearings
17 the licensee has the right to show compliance with all lawful
18 requirements for retention, continuation, or renewal of the
19 license is specifically excluded. For the purposes of this
20 Act, the notice required under the Illinois Administrative
21 Procedure Act is deemed sufficient when mailed to the last
22 known address of a party.
23 Section 20-60. Hearing; investigation; notice;
24 disciplinary consent order.
25 (a) OBRE may conduct hearings through the Board or a
26 duly appointed hearing officer on proceedings to suspend,
27 revoke, or to refuse to issue or renew licenses of persons
28 applying for licensure or licensed under this Act or to
29 censure, reprimand, or impose a civil fine not to exceed
30 $25,000 upon any licensee hereunder and may revoke, suspend,
31 or refuse to issue or renew these licenses or censure,
32 reprimand, or impose a civil fine not to exceed $25,000 upon
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1 any licensee hereunder.
2 (b) Upon the motion of either OBRE or the Board or upon
3 the verified complaint in writing of any persons setting
4 forth facts that if proven would constitute grounds for
5 suspension or revocation under this Act, OBRE, the Board, or
6 its subcommittee shall cause to be investigated the actions
7 of any person so accused who holds a license or is holding
8 himself or herself out to be a licensee. This person is
9 hereinafter called the accused.
10 (c) Prior to initiating any formal disciplinary
11 proceedings resulting from an investigation conducted
12 pursuant to subsection (b) of this Section, that matter shall
13 be reviewed by a subcommittee of the Board according to
14 procedures established by rule. The subcommittee shall make a
15 recommendation to the full Board as to the validity of the
16 complaint and may recommend that the Board not proceed with
17 formal disciplinary proceedings if the complaint is
18 determined to be frivolous or without merit.
19 (d) Except as provided for in Section 20-65 of this Act,
20 OBRE shall, before suspending, revoking, placing on
21 probationary status, or taking any other disciplinary action
22 as OBRE may deem proper with regard to any license:
23 (1) notify the accused in writing at least 30 days
24 prior to the date set for the hearing of any charges made
25 and the time and place for the hearing of the charges to
26 be heard before the Board under oath; and
27 (2) inform the accused that upon failure to file an
28 answer and request a hearing before the date originally
29 set for the hearing, default will be taken against the
30 accused and his or her license may be suspended, revoked,
31 or placed on probationary status, or other disciplinary
32 action, including limiting the scope, nature, or extent
33 of the accused's practice, as OBRE may deem proper, may
34 be taken with regard thereto.
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1 In case the person fails to file an answer after
2 receiving notice, his or her license may, in the discretion
3 of OBRE, be suspended, revoked, or placed on probationary
4 status, or OBRE may take whatever disciplinary action deemed
5 proper, including limiting the scope, nature, or extent of
6 the person's practice or the imposition of a fine, without a
7 hearing, if the act or acts charged constitute sufficient
8 grounds for such action under this Act.
9 (e) At the time and place fixed in the notice, the Board
10 shall proceed to hearing of the charges and both the accused
11 person and the complainant shall be accorded ample
12 opportunity to present in person or by counsel such
13 statements, testimony, evidence and argument as may be
14 pertinent to the charges or to any defense thereto. The
15 Board or its hearing officer may continue a hearing date upon
16 its own motion or upon an accused's motion for one period not
17 to exceed 30 days. The Board or its hearing officer may
18 grant further continuances for periods not to exceed 30 days
19 only upon good cause being shown by the moving party. The
20 non-moving party shall have the opportunity to object to a
21 continuance on the record at a hearing upon the motion to
22 continue. All motions for continuances and any denial or
23 grant thereof shall be in writing. All motions shall be
24 submitted not later than 48 hours before the scheduled
25 hearing unless made upon an emergency basis. In determining
26 whether good cause for a continuance is shown, the Board or
27 its hearing officer shall consider such factors as the volume
28 of cases pending, the nature and complexity of legal issues
29 raised, the diligence of the party making the request, the
30 availability of party's legal representative or witnesses,
31 and the number of previous requests for continuance.
32 (f) Any unlawful act or violation of any of the
33 provisions of this Act upon the part of any licensees
34 employed by a real estate broker or associated by written
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1 agreement with the real estate broker, or unlicensed employee
2 of a licensed broker, shall not be cause for the revocation
3 of the license of any such broker, partial or otherwise,
4 unless it appears to the satisfaction of OBRE that the broker
5 had knowledge thereof.
6 (g) OBRE or the Board has power to subpoena any persons
7 or documents for the purpose of investigation or hearing with
8 the same fees and mileage and in the same manner as
9 prescribed by law for judicial procedure in civil cases in
10 courts of this State. The Commissioner, the Director, any
11 member of the Board, a certified court reporter, or a hearing
12 officer shall each have power to administer oaths to
13 witnesses at any hearing which OBRE is authorized under this
14 Act to conduct.
15 (h) Any circuit court or any judge thereof, upon the
16 application of the accused person, complainant, OBRE, or the
17 Board, may, by order entered, require the attendance of
18 witnesses and the production of relevant books and papers
19 before the Board in any hearing relative to the application
20 for or refusal, recall, suspension, or revocation of a
21 license, and the court or judge may compel obedience to the
22 court's or the judge's order by proceedings for contempt.
23 (i) OBRE, at its expense, shall preserve a record of all
24 proceedings at the formal hearing of any case involving the
25 refusal to issue or the revocation, suspension, or other
26 discipline of a licensee. The notice of hearing, complaint
27 and all other documents in the nature of pleadings and
28 written motions filed in the proceedings, the transcript of
29 testimony, the report of the Board, and the orders of OBRE
30 shall be the record of the proceeding. At all hearings or
31 pre-hearing conferences, OBRE and the accused shall be
32 entitled to have a court reporter in attendance for purposes
33 of transcribing the proceeding or pre-hearing conference at
34 the expense of the party requesting the court reporter's
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1 attendance. A copy of the transcribed proceeding shall be
2 available to the other party for the cost of a copy of the
3 transcript.
4 (j) The Board shall present to the Commissioner its
5 written report of its findings and recommendations. A copy
6 of the report shall be served upon the accused, either
7 personally or by certified mail as provided in this Act for
8 the service of the citation. Within 20 days after the
9 service, the accused may present to the Commissioner a motion
10 in writing for a rehearing that shall specify the particular
11 grounds therefor. If the accused shall order and pay for a
12 transcript of the record as provided in this Act, the time
13 elapsing thereafter and before the transcript is ready for
14 delivery to the accused shall not be counted as part of the
15 20 days. Whenever the Commissioner is satisfied that
16 substantial justice has not been done, the Commissioner may
17 order a rehearing by the Board or other special committee
18 appointed by the Commissioner or may remand the matter to the
19 Board for their reconsideration of the matter based on the
20 pleadings and evidence presented to the Board. In all
21 instances, under this Act, in which the Board has rendered a
22 recommendation to the Commissioner with respect to a
23 particular licensee or applicant, the Commissioner shall, in
24 the event that he or she disagrees with or takes action
25 contrary to the recommendation of the Board, file with the
26 Board and the Secretary of State his specific written reasons
27 of disagreement with the Board. The reasons shall be filed
28 within 60 days of the Board's recommendation to the
29 Commissioner and prior to any contrary action. At the
30 expiration of the time specified for filing a motion for a
31 rehearing, the Commissioner shall have the right to take the
32 action recommended by the Board. Upon the suspension or
33 revocation of a license, the licensee shall be required to
34 surrender his or her license to OBRE, and upon failure or
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1 refusal to do so, OBRE shall have the right to seize the
2 license.
3 (k) At any time after the suspension or revocation of
4 any license, OBRE may restore it to the accused without
5 examination, upon the written recommendation of the Board.
6 (l) An order of revocation or suspension or a certified
7 copy thereof, over the seal of OBRE and purporting to be
8 signed by the Commissioner, shall be prima facie proof that:
9 (1) The signature is the genuine signature of the
10 Commissioner.
11 (2) The Commissioner is duly appointed and
12 qualified.
13 (3) The Board and the members thereof are
14 qualified.
15 Such proof may be rebutted.
16 (m) Notwithstanding any provisions concerning the
17 conduct of hearings and recommendations for disciplinary
18 actions, OBRE as directed by the Commissioner has the
19 authority to negotiate agreements with licensees and
20 applicants resulting in disciplinary consent orders. These
21 consent orders may provide for any of the forms of discipline
22 provided in this Act. These consent orders shall provide
23 that they were not entered into as a result of any coercion
24 by OBRE. Any such consent order shall be filed with the
25 Commissioner along with the Board's recommendation and
26 accepted or rejected by the Commissioner within 60 days of
27 the Board's recommendation.
28 Section 20-65. Temporary suspension. The Commissioner
29 may temporarily suspend the license of a licensee without a
30 hearing, simultaneously with the institution of proceedings
31 for a hearing provided for in Section 20-60 of this Act, if
32 the Commissioner finds that the evidence indicates that the
33 public interest, safety, or welfare imperatively requires
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1 emergency action. In the event that the Commissioner
2 temporarily suspends the license without a hearing before the
3 Board, a hearing shall be held within 30 days after the
4 suspension has occurred. The suspended licensee may seek a
5 continuance of the hearing during which the suspension shall
6 remain in effect. The proceeding shall be concluded without
7 appreciable delay.
8 Section 20-70. Restoration of license. At any time
9 after the suspension, revocation, placement on probationary
10 status, or other disciplinary action taken under this Act
11 with reference to any license, OBRE may restore the license
12 to the licensee without examination, upon the written
13 recommendation of the Board.
14 Section 20-75. Administrative Review Law; certification
15 fee; summary report of final disciplinary actions. All final
16 administrative decisions of OBRE shall be subject to judicial
17 review pursuant to the provisions of the Administrative
18 Review Law and the rules adopted pursuant thereto. The term
19 "administrative decision" is defined in Section 3-101 of the
20 Administrative Review Law. OBRE shall not be required to
21 certify any record or file any answer or otherwise appear
22 unless the party filing the complaint pays to OBRE the
23 certification fee provided for by rule representing costs of
24 the certification. Failure on the part of the plaintiff to
25 make such a deposit shall be grounds for dismissal of the
26 action. OBRE shall prepare from time to time, but in no event
27 less often than once every other month, a summary report of
28 final disciplinary actions taken since the previous summary
29 report. The summary report shall contain a brief description
30 of the action that brought about the discipline and the final
31 disciplinary action taken. The summary report shall be made
32 available upon request.
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1 Section 20-80. Penalties; injunction. Any person
2 violating any provision of this Act other than subdivision
3 (4) of subsection (h) of Section 20-20 and other than Section
4 5-15 or any person failing to account for or to remit any
5 moneys coming into his or her possession that belong to
6 others or commingling the money or other property of his or
7 her principal with his or her own, upon conviction for the
8 first offense, is guilty of a Class C misdemeanor, and if a
9 limited liability company, registered limited liability
10 partnership, or corporation, is guilty of a business offense
11 and shall be fined not to exceed $2,000. Upon conviction of a
12 second or subsequent offense the violator, if an individual,
13 is guilty of a Class A misdemeanor, and if a limited
14 liability company, registered limited liability partnership,
15 or corporation, is guilty of a business offense and shall be
16 fined not less than $2,000 nor more than $5,000. Any person,
17 limited liability company, registered limited liability
18 partnership, or corporation violating any provision of
19 Section 5-15 of this Act, upon conviction for the first
20 offense, if an individual, is guilty of a Class A
21 misdemeanor, and if a limited liability company, registered
22 limited liability partnership, or corporation, is guilty of a
23 business offense and shall be fined not to exceed $10,000.
24 Upon conviction of a second or subsequent offense the
25 violator, if an individual, is guilty of a Class 4 felony,
26 and if a limited liability company, registered limited
27 liability partnership, or corporation, is guilty of a
28 business offense and shall be fined not less than $10,000 nor
29 more than $25,000. Any officer or agent of a corporation or
30 member or agent of a partnership, limited liability company,
31 or registered limited liability partnership who shall
32 personally participate in or be an accessory to any violation
33 of this Act by the corporation, limited liability company,
34 registered limited liability partnership, or partnership
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1 shall be subject to the penalties herein prescribed for
2 individuals, and the State's Attorney of the county where the
3 offense is committed shall prosecute all persons violating
4 the provisions of this Act upon proper complaint being made.
5 All fines and penalties shall be deposited in the Real Estate
6 Recovery Fund in the State Treasury. OBRE shall have the duty
7 and the right on behalf of the People of the State of
8 Illinois to originate injunction proceedings against any
9 person acting or purporting to act as a licensee without a
10 license issued under the provisions of this Act. OBRE shall
11 also have the duty and the right on behalf of the People of
12 the State of Illinois to originate injunction proceedings
13 against any licensee to enjoin acts by the licensee that
14 constitute violations of this Act.
15 Section 20-85. Recovery from Real Estate Recovery Fund.
16 OBRE shall maintain a Real Estate Recovery Fund from which
17 any person aggrieved by an act, representation, transaction,
18 or conduct of a licensee or unlicensed employee of a licensee
19 that is in violation of this Act or the rules promulgated
20 pursuant thereto, constitutes embezzlement of money or
21 property, or results in money or property being unlawfully
22 obtained from any person by false pretenses, artifice,
23 trickery, or forgery or by reason of any fraud,
24 misrepresentation, discrimination, or deceit by or on the
25 part of any such licensee or the unlicensed employee of a
26 licensee and that results in a loss of actual cash money, as
27 opposed to losses in market value, may recover. The aggrieved
28 person may recover, by order of the circuit court of the
29 county where the violation occurred, an amount of not more
30 than $10,000 from the Fund for damages sustained by the act,
31 representation, transaction, or conduct, together with costs
32 of suit and attorney's fees incurred in connection therewith
33 of not to exceed 15% of the amount of the recovery ordered
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1 paid from the Fund. However, no licensed broker or
2 salesperson may recover from the Fund unless the court finds
3 that the person suffered a loss resulting from intentional
4 misconduct. The court order shall not include interest on
5 the judgment. The maximum liability against the Fund arising
6 out of any one act shall be as provided in this Section, and
7 the judgment order shall spread the award equitably among all
8 co-owners or otherwise aggrieved persons, if any. The maximum
9 liability against the Fund arising out of the activities of
10 any one licensee or one unlicensed employee of a licensee,
11 since January 1, 1974, shall be $50,000. Nothing in this
12 Section shall be construed to authorize recovery from the
13 Fund unless the loss of the aggrieved person results from an
14 act or omission of a licensed broker, salesperson, or
15 unlicensed employee who was at the time of the act or
16 omission acting in such capacity or was apparently acting in
17 such capacity and unless the aggrieved person has obtained a
18 valid judgment as provided in Section 20-90 of this Act. No
19 person aggrieved by an act, representation, or transaction
20 that is in violation of the Illinois Real Estate Time-Share
21 Act or the Land Sales Registration Act of 1989 may recover
22 from the Fund.
23 Section 20-90. Collection from Real Estate Recovery
24 Fund; procedure.
25 (a) No action for a judgment that subsequently results
26 in an order for collection from the Real Estate Recovery Fund
27 shall be started later than 2 years after the date on which
28 the aggrieved person knew, or through the use of reasonable
29 diligence should have known, of the acts or omissions giving
30 rise to a right of recovery from the Real Estate Recovery
31 Fund.
32 (b) When any aggrieved person commences action for a
33 judgment that may result in collection from the Real Estate
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1 Recovery Fund, the aggrieved person must name as parties
2 defendant to that action any and all individual real estate
3 brokers, real estate salespersons, or their employees who
4 allegedly committed or are responsible for acts or omissions
5 giving rise to a right of recovery from the Real Estate
6 Recovery Fund. Failure to name as parties defendant such
7 individual brokers, salespersons, or their employees shall
8 preclude recovery from the Real Estate Recovery Fund of any
9 portion of any judgment received in such an action. The
10 aggrieved party may also name as additional parties defendant
11 any corporations, limited liability companies, partnerships,
12 registered limited liability partnership, or other business
13 associations that may be responsible for acts giving rise to
14 a right of recovery from the Real Estate Recovery Fund.
15 (c) When any aggrieved person commences action for a
16 judgment that may result in collection from the Real Estate
17 Recovery Fund, the aggrieved person must notify OBRE in
18 writing to this effect within 7 days of the commencement of
19 the action. Failure to so notify OBRE shall preclude
20 recovery from the Real Estate Recovery Fund of any portion of
21 any judgment received in such an action. After receiving
22 notice of the commencement of such an action, OBRE upon
23 timely application shall be permitted to intervene as a party
24 defendant to that action.
25 (d) When any aggrieved person commences action for a
26 judgment that may result in collection from the Real Estate
27 Recovery Fund, and the aggrieved person is unable to obtain
28 legal and proper service upon the defendant under the
29 provisions of Illinois law concerning service of process in
30 civil actions, the aggrieved person may petition the court
31 where the action to obtain judgment was begun for an order to
32 allow service of legal process on the Commissioner. Service
33 of process on the Commissioner shall be taken and held in
34 that court to be as valid and binding as if due service had
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1 been made upon the defendant. In case any process mentioned
2 in this Section is served upon the Commissioner, the
3 Commissioner shall forward a copy of the process by certified
4 mail to the licensee's last address on record with OBRE. Any
5 judgment obtained after service of process on the
6 Commissioner under this Act shall apply to and be enforceable
7 against the Real Estate Recovery Fund only. OBRE may
8 intervene in and defend any such action.
9 (e) When an aggrieved party commences action for a
10 judgment that may result in collection from the Real Estate
11 Recovery Fund, and the court before which that action is
12 commenced enters judgment by default against the defendant
13 and in favor of the aggrieved party, the court shall upon
14 motion of OBRE set aside that judgment by default. After
15 such a judgment by default has been set aside, OBRE shall
16 appear as party defendant to that action, and thereafter the
17 court shall require proof of the allegations in the pleadings
18 upon which relief is sought.
19 (f) The aggrieved person shall give written notice to
20 OBRE within 30 days of the entry of any judgment that may
21 result in collection from the Real Estate Recovery Fund. The
22 aggrieved person shall provide OBRE within 20 days prior
23 written notice of all supplementary proceedings so as to
24 allow OBRE to participate in all efforts to collect on the
25 judgment.
26 (g) When any aggrieved person recovers a valid judgment
27 in any court of competent jurisdiction against any licensee
28 or an unlicensed employee of any broker, upon the grounds of
29 fraud, misrepresentation, discrimination, or deceit, the
30 aggrieved person may, upon the termination of all
31 proceedings, including review and appeals in connection with
32 the judgment, file a verified claim in the court in which the
33 judgment was entered and, upon 30 days' written notice to
34 OBRE, and to the person against whom the judgment was
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1 obtained, may apply to the court for an order directing
2 payment out of the Real Estate Recovery Fund of the amount
3 unpaid upon the judgment, not including interest on the
4 judgment, and subject to the limitations stated in Section
5 20-85 of this Act. The aggrieved person must set out in that
6 verified claim and at an evidentiary hearing to be held by
7 the court upon the application the aggrieved party shall be
8 required to show that the aggrieved person:
9 (1) Is not a spouse of the debtor or the personal
10 representative of such spouse.
11 (2) Has complied with all the requirements of this
12 Section.
13 (3) Has obtained a judgment stating the amount
14 thereof and the amount owing thereon, not including
15 interest thereon, at the date of the application.
16 (4) Has made all reasonable searches and inquiries
17 to ascertain whether the judgment debtor is possessed of
18 real or personal property or other assets, liable to be
19 sold or applied in satisfaction of the judgment.
20 (5) By such search has discovered no personal or
21 real property or other assets liable to be sold or
22 applied, or has discovered certain of them, describing
23 them as owned by the judgment debtor and liable to be so
24 applied and has taken all necessary action and
25 proceedings for the realization thereof, and the amount
26 thereby realized was insufficient to satisfy the
27 judgment, stating the amount so realized and the balance
28 remaining due on the judgment after application of the
29 amount realized.
30 (6) Has diligently pursued all remedies against all
31 the judgment debtors and all other persons liable to the
32 aggrieved person in the transaction for which recovery is
33 sought from the Real Estate Recovery Fund.
34 The aggrieved person shall also be required to prove the
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1 amount of attorney's fees sought to be recovered and the
2 reasonableness of those fees up to the maximum allowed
3 pursuant to Section 20-85 of this Act.
4 (h) The court shall make an order directed to OBRE
5 requiring payment from the Real Estate Recovery Fund of
6 whatever sum it finds to be payable upon the claim, pursuant
7 to and in accordance with the limitations contained in
8 Section 20-85 of this Act, if the court is satisfied, upon
9 the hearing, of the truth of all matters required to be shown
10 by the aggrieved person under subsection (g) of this Section
11 and that the aggrieved person has fully pursued and exhausted
12 all remedies available for recovering the amount awarded by
13 the judgment of the court.
14 (i) Should OBRE pay from the Real Estate Recovery Fund
15 any amount in settlement of a claim or toward satisfaction of
16 a judgment against a licensed broker or salesperson or an
17 unlicensed employee of a broker, the licensee's license shall
18 be automatically terminated upon the issuance of a court
19 order authorizing payment from the Real Estate Recovery Fund.
20 No petition for restoration of a license shall be heard until
21 repayment has been made in full, plus interest at the rate
22 prescribed in Section 12-109 of the Code of Civil Procedure
23 of the amount paid from the Real Estate Recovery Fund on
24 their account. A discharge in bankruptcy shall not relieve a
25 person from the penalties and disabilities provided in this
26 subsection (i).
27 (j) If, at any time, the money deposited in the Real
28 Estate Recovery Fund is insufficient to satisfy any duly
29 authorized claim or portion thereof, OBRE shall, when
30 sufficient money has been deposited in the Real Estate
31 Recovery Fund, satisfy such unpaid claims or portions
32 thereof, in the order that such claims or portions thereof
33 were originally filed, plus accumulated interest at the rate
34 prescribed in Section 12-109 of the Code of Civil Procedure.
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1 Section 20-95. Power of OBRE to defend. When OBRE
2 receives any process, notice, order, or other document
3 provided for or required under Section 20-90 of this Act, it
4 may enter an appearance, file an answer, appear at the court
5 hearing, defend the action, or take whatever other action it
6 deems appropriate on behalf and in the name of the defendant
7 and take recourse through any appropriate method of review on
8 behalf of and in the name of the defendant.
9 Section 20-100. Subrogation of OBRE to rights of
10 judgment creditor. When, upon the order of the court, OBRE
11 has paid from the Real Estate Recovery Fund any sum to the
12 judgment creditor, OBRE shall be subrogated to all of the
13 rights of the judgment creditor and the judgment creditor
14 shall assign all rights, title, and interest in the judgment
15 to OBRE and any amount and interest so recovered by OBRE on
16 the judgment shall be deposited in the Real Estate Recovery
17 Fund.
18 Section 20-105. Waiver of rights for failure to comply.
19 The failure of an aggrieved person to comply with this Act
20 relating to the Real Estate Recovery Fund shall constitute a
21 waiver of any rights under Sections 20-85 and 20-90 of this
22 Act.
23 Section 20-110. Disciplinary actions of OBRE not
24 limited. Nothing contained in Sections 20-80 through 20-100
25 of this Act limits the authority of OBRE to take disciplinary
26 action against any licensee for a violation of this Act or
27 the rules of OBRE, nor shall the repayment in full of all
28 obligations to the Real Estate Recovery Fund by any licensee
29 nullify or modify the effect of any other disciplinary
30 proceeding brought pursuant to this Act.
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1 Section 20-115. Time limit on action. No action may be
2 taken by OBRE against any person for violation of the terms
3 of this Act or its rules unless the action is commenced
4 within 5 years after the occurrence of the alleged violation.
5 Section 20-120. Action to enjoin. Engaging in business
6 as a licensee by any person in violation of this Act is
7 declared to be harmful to the public welfare and to be a
8 public nuisance. An action to enjoin any person from such
9 unlawful activity may be maintained in the name of the People
10 of the State of Illinois by the Attorney General, by the
11 State's Attorney of the county in which the action is
12 brought, by OBRE, or by any resident citizen. This remedy
13 shall be in addition to other remedies provided for violation
14 of this Act.
15 Section 20-125. No private right of action. Except as
16 otherwise expressly provided for in this Act, nothing in this
17 Act shall be construed to grant to any person a private right
18 of action for damages or to enforce the provisions of this
19 Act or the rules issued under this Act.
20 ARTICLE 25. ADMINISTRATION OF LICENSES
21 Section 25-5. OBRE; powers and duties. OBRE shall
22 exercise the powers and duties prescribed by the Civil
23 Administrative Code of Illinois for the administration of
24 licensing acts and shall exercise such other powers and
25 duties as are prescribed by this Act. OBRE may contract with
26 third parties for services necessary for the proper
27 administration of this Act.
28 Section 25-10. Real Estate Administration and
29 Disciplinary Board; duties. There is created the Real Estate
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1 Administration and Disciplinary Board. The Board shall be
2 composed of 9 persons appointed by the Governor. Members
3 shall be appointed to the Board subject to the following
4 conditions:
5 (1) All members shall have been residents and
6 citizens of this State for at least 6 years prior to the
7 date of appointment.
8 (2) Six members shall have been actively engaged as
9 brokers or salespersons or both for at least the 10 years
10 prior to the appointment.
11 (3) Three members of the Board shall be public
12 members who represent consumer interests.
13 None of these members shall be a person who is licensed
14 under this Act, the spouse of a person licensed under this
15 Act, or a person who has an ownership interest in a real
16 estate brokerage business. The members' terms shall be 4
17 years and the expiration of their terms shall be staggered.
18 Appointments to fill vacancies shall be for the unexpired
19 portion of the term. A member may be reappointed for
20 successive terms but no member shall serve more than 8 years
21 in his or her lifetime. Persons holding office as members of
22 the Board immediately prior to July 1, 1999 under the Real
23 Estate License Act of 1983 shall continue as members of the
24 Board until the expiration of the term for which they were
25 appointed and until their successors are appointed and
26 qualified. The membership of the Board should reasonably
27 reflect the geographic distribution of the licensee
28 population in this State. In making the appointments, the
29 Governor shall give due consideration to the recommendations
30 by members and organizations of the profession. The Governor
31 may terminate the appointment of any member for cause that in
32 the opinion of the Governor reasonably justifies the
33 termination. Cause for termination shall include without
34 limitation misconduct, incapacity, neglect of duty, or
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1 missing 4 board meetings during any one calendar year. Each
2 member of the Board shall receive a per diem stipend in an
3 amount to be determined by the Commissioner. Each member
4 shall be paid his or her necessary expenses while engaged in
5 the performance of his or her duties. Such compensation and
6 expenses shall be paid out of the Real Estate License
7 Administration Fund. The Commissioner shall consider the
8 recommendations of the Board on questions involving standards
9 of professional conduct, discipline, and examination of
10 candidates under this Act. OBRE, after notifying and
11 considering the recommendations of the Board, if any, may
12 issue rules, consistent with the provisions of this Act, for
13 the administration and enforcement thereof and may prescribe
14 forms that shall be used in connection therewith. None of the
15 functions, powers, or duties enumerated in Sections 20-20 and
16 30-5 and subsections (a) and (j) of Section 20-60 of this Act
17 shall be exercised by OBRE except upon the action and report
18 in writing of the Board.
19 Section 25-13. Rules. OBRE, after notifying and
20 considering the recommendations of the Board, if any, shall
21 adopt, promulgate, and issue any rules that may be necessary
22 for the implementation and enforcement of this Act.
23 Section 25-15. Director of Real Estate; duties. There
24 shall be in OBRE a Director of Real Estate, appointed by the
25 Commissioner, who shall hold a currently valid broker's
26 license, which shall be surrendered to OBRE during the
27 appointment. The Director of Real Estate shall report to the
28 Commissioner and shall do the following:
29 (1) act as Chairperson of the Board, ex-officio,
30 without vote;
31 (2) be the direct liaison between OBRE, the
32 profession, and real estate organizations and
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1 associations;
2 (3) prepare and circulate to licensees any
3 educational and informational material that OBRE deems
4 necessary for providing guidance or assistance to
5 licensees;
6 (4) appoint any necessary committees to assist in
7 the performance of the functions and duties of OBRE under
8 this Act; and
9 (5) subject to the administrative approval of the
10 Commissioner, supervise all real estate activities of
11 OBRE.
12 In designating the Director of Real Estate, the
13 Commissioner shall give due consideration to recommendations
14 by members and organizations of the profession.
15 Section 25-20. Staff. OBRE shall employ sufficient staff
16 to carry out the provisions of this Act.
17 Section 25-25. Real Estate Research and Education Fund.
18 A special fund to be known as the Real Estate Research and
19 Education Fund is created and shall be held in trust in the
20 State Treasury. Annually, on September 15th, the State
21 Treasurer shall cause a transfer of $125,000 to the Real
22 Estate Research and Education Fund from the Real Estate
23 License Administration Fund. The Real Estate Research and
24 Education Fund shall be administered by OBRE. Money
25 deposited in the Real Estate Research and Education Fund may
26 be used for research and education at state institutions of
27 higher education or other organizations for research and the
28 advancement of education in the real estate industry. Of the
29 $125,000 annually transferred into the Real Estate Research
30 and Education Fund, $15,000 shall be used to fund a
31 scholarship program for persons of minority racial origin who
32 wish to pursue a course of study in the field of real estate.
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1 For the purposes of this Section, "course of study" means a
2 course or courses that are part of a program of courses in
3 the field of real estate designed to further an individual's
4 knowledge or expertise in the field of real estate. These
5 courses shall include without limitation courses that a
6 salesperson licensed under this Act must complete to qualify
7 for a real estate broker's license, courses required to
8 obtain the Graduate Realtors Institute designation, and any
9 other courses or programs offered by accredited colleges,
10 universities, or other institutions of higher education in
11 Illinois. The scholarship program shall be administered by
12 OBRE or its designee. Moneys in the Real Estate Research and
13 Education Fund may be invested and reinvested in the same
14 manner as funds in the Real Estate Recovery Fund and all
15 earnings, interest, and dividends received from such
16 investments shall be deposited in the Real Estate Research
17 and Education Fund and may be used for the same purposes as
18 moneys transferred to the Real Estate Research and Education
19 Fund.
20 Section 25-30. Real Estate License Administration Fund;
21 audit. A special fund to be known as the Real Estate License
22 Administration Fund is created in the State Treasury. All
23 fees received by OBRE under this Act shall be deposited in
24 the Real Estate License Administration Fund. The moneys
25 deposited in the Real Estate License Administration Fund
26 shall be appropriated to OBRE for expenses of OBRE and the
27 Board in the administration of this Act and for the
28 administration of any Act administered by OBRE providing
29 revenue to this Fund. Moneys in the Real Estate License
30 Administration Fund may be invested and reinvested in the
31 same manner as funds in the Real Estate Recovery Fund. All
32 earnings received from such investment shall be deposited in
33 the Real Estate License Administration Fund and may be used
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1 for the same purposes as fees deposited in the Real Estate
2 License Administration Fund. Upon the completion of any audit
3 of OBRE, as prescribed by the Illinois State Auditing Act,
4 which includes an audit of the Real Estate License
5 Administration Fund, OBRE shall make the audit open to
6 inspection by any interested person.
7 Section 25-35. Real Estate Recovery Fund. A special fund
8 to be known as the Real Estate Recovery Fund is created in
9 the State Treasury. The sums received by OBRE pursuant to
10 the provisions of Sections 20-20, 20-30, and 20-80 through
11 20-100 of this Act shall be deposited into the State Treasury
12 and held in the Real Estate Recovery Fund. The money in the
13 Real Estate Recovery Fund shall be used by OBRE exclusively
14 for carrying out the purposes established by this Act. If,
15 at any time, the balance remaining in the Real Estate
16 Recovery Fund is less than $750,000, the State Treasurer
17 shall cause a transfer of moneys to the Real Estate Recovery
18 Fund from the Real Estate License Administration Fund in an
19 amount necessary to establish a balance of $800,000 in the
20 Real Estate Recovery Fund. These funds may be invested and
21 reinvested in the same manner as authorized for pension funds
22 in Article 14 of the Illinois Pension Code. All earnings,
23 interest, and dividends received from investment of funds in
24 the Real Estate Recovery Fund shall be deposited into the
25 Real Estate License Administration Fund and shall be used for
26 the same purposes as other moneys deposited in the Real
27 Estate License Administration Fund.
28 Section 25-40. Exclusive State powers and functions;
29 municipal powers. It is declared to be the public policy of
30 this State, pursuant to paragraphs (h) and (i) of Section 6
31 of Article VII of the Illinois Constitution of 1970, that any
32 power or function set forth in this Act to be exercised by
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1 the State is an exclusive State power or function. Such
2 power or function shall not be exercised concurrently, either
3 directly or indirectly, by any unit of local government,
4 including home rule units, except as otherwise provided in
5 this Act. Nothing in this Section shall be construed to
6 affect or impair the validity of Section 11-11.1-1 of the
7 Illinois Municipal Code, as amended, or to deny to the
8 corporate authorities of any municipality the powers granted
9 in the Illinois Municipal Code to enact ordinances
10 prescribing fair housing practices; defining unfair housing
11 practices; establishing Fair Housing or Human Relations
12 Commissions and standards for the operation of these
13 commissions in the administration and enforcement of such
14 ordinances; prohibiting discrimination based on race, color,
15 creed, ancestry, national origin or physical or mental
16 handicap in the listing, sale, assignment, exchange,
17 transfer, lease, rental, or financing of real property for
18 the purpose of the residential occupancy thereof; and
19 prescribing penalties for violations of such ordinances.
20 ARTICLE 30. SCHOOLS AND INSTRUCTORS
21 Section 30-5. Licensing of pre-license schools, school
22 branches, and instructors.
23 (a) No person shall operate a pre-license school or
24 school branch without possessing a valid pre-license school
25 or school branch license issued by OBRE. No person shall act
26 as a pre-license instructor at a pre-license school or school
27 branch without possessing a valid pre-license instructor
28 license issued by OBRE. Every person who desires to obtain a
29 pre-license school, school branch, or pre-license instructor
30 license shall make application to OBRE in writing in form and
31 substance satisfactory to OBRE and pay the required fees
32 prescribed by rule. In addition to any other information
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1 required to be contained in the application, every
2 application for an original or renewed license shall include
3 the applicant's Social Security number. OBRE shall issue a
4 pre-license school, school branch, or pre-license instructor
5 license to applicants who meet qualification criteria
6 established by rule. OBRE may refuse to issue, suspend,
7 revoke, or otherwise discipline a pre-license school, school
8 branch, or pre-license instructor license or may withdraw
9 approval of a course offered by a pre-license school for good
10 cause. Disciplinary proceedings shall be conducted by the
11 Board in the same manner as other disciplinary proceedings
12 under this Act.
13 (b) Pre-license schools must allow students to retake a
14 course exam that the student fails at least once within 30
15 days of notice of failure.
16 (c) All pre-license instructors must teach at least one
17 course within the period of licensure or take an instructor
18 training program approved by OBRE in lieu thereof. A
19 pre-license instructor may teach at more than one licensed
20 pre-license school.
21 (d) The term of license for pre-license schools,
22 branches, and instructors shall be 2 years as established by
23 rule.
24 (e) OBRE or the Advisory Council may, after notice,
25 cause a pre-license school to attend an informal conference
26 before the Advisory Council for failure to comply with any
27 requirement for licensure or for failure to comply with any
28 provision of this Act or the rules for the administration of
29 this Act. The Advisory Council shall make a recommendation
30 to the Board as a result of its findings at the conclusion of
31 any such informal conference.
32 Section 30-10. Advisory Council; powers and duties.
33 There is created within OBRE an Advisory Council to be
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1 comprised of 7 members appointed by the Governor for 4-year
2 staggered terms. No member shall serve more than 8 years in
3 a lifetime. Three of the members shall be licensees who are
4 current members of the Board, one member shall be a
5 representative of an Illinois real estate trade organization
6 who is not a member of the Board, one member shall be a
7 representative of a licensed pre-license school or continuing
8 education school, and one member shall be a representative of
9 an institution of higher education that offers pre-license
10 and continuing education courses. The Director shall serve
11 as the chairman of the Advisory Council, ex officio, without
12 vote. The Advisory Council shall recommend criteria for the
13 licensing of pre-license schools, pre-license instructors,
14 continuing education schools, and continuing education
15 instructors; review applications for these licenses to
16 determine if the applicants meet the qualifications for
17 licensure established in this Act and by rule; approve
18 pre-license school and continuing education curricula; and
19 make recommendations to the Board regarding rules to be
20 adopted for the administration of the education provisions of
21 this Act.
22 Section 30-15. Licensing of continuing education
23 schools; approval of courses.
24 (a) Only continuing education schools in possession of a
25 valid continuing education school license may provide real
26 estate continuing education courses that will satisfy the
27 requirements of this Act. Pre-license schools licensed to
28 offer pre-license education courses for salespersons and
29 brokers shall qualify for a continuing education school
30 license upon completion of an application and the submission
31 of the required fee. Every entity that desires to obtain a
32 continuing education school license shall make application to
33 OBRE in writing in forms prescribed by OBRE and pay the fee
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1 prescribed by rule. In addition to any other information
2 required to be contained in the application, every
3 application for an original or renewed license shall include
4 the applicant's Social Security number.
5 (b) The criteria for a continuing education license
6 shall include the following:
7 (1) A sound financial base for establishing,
8 promoting, and delivering the necessary courses. Budget
9 planning for the School's courses should be clearly
10 projected.
11 (2) A sufficient number of qualified, licensed
12 instructors as provided by rule.
13 (3) Adequate support personnel to assist with
14 administrative matters and technical assistance.
15 (4) Maintenance and availability of records of
16 participation for licensees.
17 (5) The ability to provide each participant who
18 successfully completes an approved program with a
19 certificate of completion signed by the administrator of
20 a licensed continuing education school on forms provided
21 by OBRE.
22 (6) The continuing education school must have a
23 written policy dealing with procedures for the management
24 of grievances and fee refunds.
25 (7) The continuing education school shall maintain
26 lesson plans and examinations for each course.
27 (8) The continuing education school shall require a
28 70% passing grade for successful completion of any
29 continuing education course.
30 (9) The continuing education school shall identify
31 and use instructors who will teach in a planned program.
32 Suggested criteria for instructor selections include:
33 (A) appropriate credentials;
34 (B) competence as a teacher;
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1 (C) knowledge of content area; and
2 (D) qualification by experience.
3 (c) Advertising and promotion of continuing education
4 activities must be carried out in a responsible fashion,
5 clearly showing the educational objectives of the activity,
6 the nature of the audience that may benefit from the
7 activity, the cost of the activity to the participant and the
8 items covered by the cost, the amount of credit that can be
9 earned, and the credentials of the faculty.
10 (d) OBRE may or upon request of the Advisory Council
11 shall, after notice, cause a continuing education school to
12 attend an informal conference before the Advisory Council for
13 failure to comply with any requirement for licensure or for
14 failure to comply with any provision of this Act or the rules
15 for the administration of this Act. The Advisory Council
16 shall make a recommendation to the Board as a result of its
17 findings at the conclusion of any such informal conference.
18 (e) All continuing education schools shall maintain
19 these minimum criteria and pay the required fee in order to
20 retain their continuing education school license.
21 (f) All continuing education schools shall submit, at
22 the time of initial application and with each license
23 renewal, a list of courses with course materials to be
24 offered by the continuing education school. OBRE, however,
25 shall establish a mechanism whereby continuing education
26 schools may apply for and obtain approval for continuing
27 education courses that are submitted after the time of
28 initial application or renewal. OBRE shall provide to each
29 continuing education school a certificate for each approved
30 continuing education course. All continuing education
31 courses shall be valid for the period coinciding with the
32 term of license of the continuing education school. All
33 continuing education schools shall provide a copy of the
34 certificate of the continuing education course within the
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1 course materials given to each student or shall display a
2 copy of the certificate of the continuing education course in
3 a conspicuous place at the location of the class.
4 (g) Each continuing education school shall provide to
5 OBRE a monthly report in a format determined by OBRE, with
6 information concerning students who successfully completed
7 all approved continuing education courses offered by the
8 continuing education school for the prior month.
9 (h) OBRE, upon the recommendation of the Advisory
10 Council, may temporarily suspend a licensed continuing
11 education school's approved courses without hearing and
12 refuse to accept successful completion of or participation in
13 any of these continuing education courses for continuing
14 education credit from that school upon the failure of that
15 continuing education school to comply with the provisions of
16 this Act or the rules for the administration of this Act,
17 until such time as OBRE receives satisfactory assurance of
18 compliance. OBRE shall notify the continuing education
19 school of the non-compliance and may initiate disciplinary
20 proceedings pursuant to this Act. OBRE may refuse to issue,
21 suspend, revoke, or otherwise discipline the license of a
22 continuing education school or may withdraw approval of a
23 continuing education course for good cause. Failure to
24 comply with the requirements of this Section or any other
25 requirements established by rule shall be deemed to be good
26 cause. Disciplinary proceedings shall be conducted by the
27 Board in the same manner as other disciplinary proceedings
28 under this Act.
29 Section 30-20. Fees for continuing education school
30 license; renewal; term. All applications for a continuing
31 education school license shall be accompanied by a
32 nonrefundable application fee in an amount established by
33 rule. Application and renewal fees shall be established by
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1 rule but shall not be less than $2,000 per year. All
2 continuing education schools shall be required to submit a
3 renewal application, the required fee as established by rule,
4 and a listing of the courses to be offered during the year to
5 renew their continuing education school licenses. The term
6 for a continuing education school license shall be 2 years
7 and as established by rule. The fees collected under this
8 Article 30 shall be deposited in the Real Estate License
9 Administration Fund and shall be used to defray the cost of
10 administration of the program and per diem of the Advisory
11 Council as determined by the Commissioner.
12 Section 30-25. Licensing of continuing education
13 instructors.
14 (a) Only persons approved by the Advisory Council and in
15 possession of a valid continuing education instructor license
16 issued by OBRE may instruct continuing education courses.
17 (b) Every person who desires to obtain a continuing
18 education instructor license shall make application to OBRE
19 in writing on forms prescribed by the Office, accompanied by
20 the fee prescribed by rule. In addition to any other
21 information required to be contained in the application,
22 every application for an original or renewed license shall
23 include the applicant's Social Security number. OBRE shall
24 issue a continuing education instructor license to applicants
25 who meet qualification criteria established by this Act or
26 rule.
27 (c) OBRE may refuse to issue, suspend, revoke, or
28 otherwise discipline a continuing education instructor for
29 good cause. Disciplinary proceedings shall be conducted by
30 the Board in the same manner as other disciplinary
31 proceedings under this Act. The term of a license for a
32 continuing education instructor shall be 2 years and as
33 established by rule. All Continuing Education Instructors
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1 must teach at least one course within the period of licensure
2 or take an instructor training program approved by OBRE in
3 lieu thereof.
4 Section 30-30. Recommendation of rules. The Advisory
5 Council shall recommend to the Board rules that provide for
6 the administration of this Article 30. These rules shall
7 include without limitation the following provisions:
8 (1) The rules shall define what constitutes a
9 school or a school branch offering work in subjects
10 relating to real estate transactions that shall include
11 the subjects upon which an applicant is examined in
12 determining fitness to receive a license. The rules
13 shall provide for the establishment of a uniform and
14 reasonable standard of instruction and maintenance to be
15 observed by these schools.
16 (2) The rules shall establish minimum criteria to
17 qualify for and maintain a license as a pre-license
18 school, pre-license school instructor, continuing
19 education school, and continuing education instructor.
20 (3) The rules shall provide for acts and omissions
21 for which the license of a pre-license school,
22 pre-license school instructor, continuing education
23 school, or continuing education instructor may be
24 disciplined under this Act.
25 (4) The rules shall provide for the term, date of
26 expiration, and renewal process for the licenses of
27 pre-license schools, pre-license school instructors,
28 continuing education schools, and continuing education
29 school instructors.
30 ARTICLE 35. TRANSITION RULES
31 Section 35-5. Savings provisions.
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1 (a) This Act is intended to replace the Real Estate
2 License Act of 1983 in all respects.
3 (b) Beginning July 1, 1999, the rights, powers, and
4 duties exercised by the Office of Banks and Real Estate under
5 the Real Estate License Act of 1983 shall continue to be
6 vested in, be the obligation of, and shall be exercised by
7 the Office of Banks and Real Estate under the provisions of
8 this Act.
9 (c) This Act does not affect any act done, ratified, or
10 cancelled, or any right occurring or established, or any
11 action or proceeding had or commenced in an administrative,
12 civil, or criminal cause before July 1, 1999, by the Office
13 of Banks and Real Estate under the Real Estate License Act of
14 1983, and those actions or proceedings may be prosecuted and
15 continued by the Office of Banks and Real Estate under this
16 Act.
17 (d) This Act does not affect any license, certificate,
18 permit, or other form of licensure or authorization issued by
19 the Office of Banks and Real Estate under the Real Estate
20 License Act of 1983, and all such licenses, certificates,
21 permits, or other form of licensure or authorization shall
22 continue to be valid under the terms and conditions of this
23 Act.
24 (e) The rules adopted by the Office of Banks and Real
25 Estate relating to the Real Estate License Act of 1983,
26 unless inconsistent with the provisions of this Act, are not
27 affected by this Act, and on July 1, 1999 those rules become
28 the rules under this Act. The Office of Banks and Real
29 Estate shall, as soon as practicable, adopt new or amended
30 rules consistent with the provisions of this Act.
31 (f) This Act does not affect any discipline, suspension,
32 or termination taken under the Real Estate License Act of
33 1983 and that discipline, suspension, or termination shall be
34 continued under this Act.
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1 (g) This Act does not affect any appointments, term
2 limitations, years served, or other matters relating to
3 individuals serving on any board or council under the Real
4 Estate License Act of 1983, and these appointments, term
5 limitations, years served, and other matters shall be
6 continued under this Act.
7 Section 35-10. Money in Funds. Transfer of moneys and
8 appropriations moneys held in or appropriations to the Real
9 Estate License Administration Fund, Real Estate Recovery
10 Fund, or Real Estate Research and Education Fund for the
11 purpose of administering and enforcing the Real Estate
12 License Act of 1983 shall be transferred to and held in those
13 same funds for the purpose of administering and enforcing the
14 provisions of this Act.
15 ARTICLE 905. AMENDATORY PROVISIONS
16 Section 905-5. The Regulatory Agency Sunset Act is
17 amended by changing Section 4.10 and adding Section 4.19 as
18 follows:
19 (5 ILCS 80/4.10) (from Ch. 127, par. 1904.10)
20 Sec. 4.10. The following Acts are repealed December 31,
21 1999:
22 The Fire Equipment Distributor and Employee Regulation
23 Act.
24 The Professional Engineering Practice Act of 1989.
25 The Structural Engineering Licensing Act of 1989.
26 The Illinois Architecture Practice Act of 1989.
27 The Illinois Landscape Architecture Act of 1989.
28 The Illinois Professional Land Surveyor Act of 1989.
29 The Land Sales Registration Act of 1989.
30 The Real Estate License Act of 1983.
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1 (Source: P.A. 86-667; 86-702; 86-711; 86-925; 86-932; 86-987;
2 86-1007; 86-1028.)
3 (5 ILCS 80/4.19 new)
4 Sec. 4.19. Act repealed on January 1, 2009. The
5 following Act is repealed on January 1, 2009:
6 The Real Estate License Act of 1999.
7 Section 905-10. The Civil Administrative Code of
8 Illinois is amended by changing Section 60 as follows:
9 (20 ILCS 2105/60) (from Ch. 127, par. 60)
10 Sec. 60. Powers and duties. The Department of
11 Professional Regulation shall have, subject to the provisions
12 of this Act, the following powers and duties:
13 1. To authorize examinations in English to ascertain the
14 qualifications and fitness of applicants to exercise the
15 profession, trade, or occupation for which the examination is
16 held.
17 2. To prescribe rules and regulations for a fair and
18 wholly impartial method of examination of candidates to
19 exercise the respective professions, trades, or occupations.
20 3. To pass upon the qualifications of applicants for
21 licenses, certificates, and authorities, whether by
22 examination, by reciprocity, or by endorsement.
23 4. To prescribe rules and regulations defining, for the
24 respective professions, trades, and occupations, what shall
25 constitute a school, college, or university, or department of
26 a university, or other institutions, reputable and in good
27 standing and to determine the reputability and good standing
28 of a school, college, or university, or department of a
29 university, or other institution, reputable and in good
30 standing by reference to a compliance with such rules and
31 regulations: provided, that no school, college, or
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1 university, or department of a university or other
2 institution that refuses admittance to applicants solely on
3 account of race, color, creed, sex, or national origin shall
4 be considered reputable and in good standing.
5 5. To conduct hearings on proceedings to revoke,
6 suspend, refuse to renew, place on probationary status, or
7 take other disciplinary action as may be authorized in any
8 licensing Act administered by the Department with regard to
9 licenses, certificates, or authorities of persons exercising
10 the respective professions, trades, or occupations, and to
11 revoke, suspend, refuse to renew, place on probationary
12 status, or take other disciplinary action as may be
13 authorized in any licensing Act administered by the
14 Department with regard to such licenses, certificates, or
15 authorities. The Department shall issue a monthly
16 disciplinary report. The Department shall deny any license
17 or renewal authorized by this Act to any person who has
18 defaulted on an educational loan or scholarship provided by
19 or guaranteed by the Illinois Student Assistance Commission
20 or any governmental agency of this State; however, the
21 Department may issue a license or renewal if the
22 aforementioned persons have established a satisfactory
23 repayment record as determined by the Illinois Student
24 Assistance Commission or other appropriate governmental
25 agency of this State. Additionally, beginning June 1, 1996,
26 any license issued by the Department may be suspended or
27 revoked if the Department, after the opportunity for a
28 hearing under the appropriate licensing Act, finds that the
29 licensee has failed to make satisfactory repayment to the
30 Illinois Student Assistance Commission for a delinquent or
31 defaulted loan. For the purposes of this Section,
32 "satisfactory repayment record" shall be defined by rule. The
33 Department shall refuse to issue or renew a license to, or
34 shall suspend or revoke a license of, any person who, after
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1 receiving notice, fails to comply with a subpoena or warrant
2 relating to a paternity or child support proceeding.
3 However, the Department may issue a license or renewal upon
4 compliance with the subpoena or warrant.
5 The Department, without further process or hearings,
6 shall revoke, suspend, or deny any license or renewal
7 authorized by this Act to a person who is certified by the
8 Illinois Department of Public Aid as being more than 30 days
9 delinquent in complying with a child support order; the
10 Department may, however, issue a license or renewal if the
11 person has established a satisfactory repayment record as
12 determined by the Illinois Department of Public Aid. The
13 Department may implement this paragraph as added by Public
14 Act 89-6 through the use of emergency rules in accordance
15 with Section 5-45 of the Illinois Administrative Procedure
16 Act. For purposes of the Illinois Administrative Procedure
17 Act, the adoption of rules to implement this paragraph shall
18 be considered an emergency and necessary for the public
19 interest, safety, and welfare.
20 6. To transfer jurisdiction of any realty under the
21 control of the Department to any other Department of the
22 State Government, or to acquire or accept Federal lands, when
23 such transfer, acquisition or acceptance is advantageous to
24 the State and is approved in writing by the Governor.
25 7. To formulate rules and regulations as may be
26 necessary for the enforcement of any act administered by the
27 Department.
28 8. To exchange with the Illinois Department of Public
29 Aid information that may be necessary for the enforcement of
30 child support orders entered pursuant to the Illinois Public
31 Aid Code, the Illinois Marriage and Dissolution of Marriage
32 Act, the Non-Support of Spouse and Children Act, the Revised
33 Uniform Reciprocal Enforcement of Support Act, the Uniform
34 Interstate Family Support Act, or the Illinois Parentage Act
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1 of 1984. Notwithstanding any provisions in this Code to the
2 contrary, the Department of Professional Regulation shall not
3 be liable under any federal or State law to any person for
4 any disclosure of information to the Illinois Department of
5 Public Aid under this paragraph 8 or for any other action
6 taken in good faith to comply with the requirements of this
7 paragraph 8.
8 9. To perform such other duties as may be prescribed by
9 law.
10 The Department may, when a fee is payable to the
11 Department for a wall certificate of registration provided by
12 the Department of Central Management Services, require that
13 portion of the payment for printing and distribution costs be
14 made directly or through the Department, to the Department of
15 Central Management Services for deposit in the Paper and
16 Printing Revolving Fund, the remainder shall be deposited in
17 the General Revenue Fund.
18 For the purpose of securing and preparing evidence, and
19 for the purchase of controlled substances, professional
20 services, and equipment necessary for enforcement activities,
21 recoupment of investigative costs and other activities
22 directed at suppressing the misuse and abuse of controlled
23 substances, including those activities set forth in Sections
24 504 and 508 of the Illinois Controlled Substances Act, the
25 Director and agents appointed and authorized by the Director
26 may expend such sums from the Professional Regulation
27 Evidence Fund as the Director deems necessary from the
28 amounts appropriated for that purpose and such sums may be
29 advanced to the agent when the Director deems such procedure
30 to be in the public interest. Sums for the purchase of
31 controlled substances, professional services, and equipment
32 necessary for enforcement activities and other activities as
33 set forth in this Section shall be advanced to the agent who
34 is to make such purchase from the Professional Regulation
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1 Evidence Fund on vouchers signed by the Director. The
2 Director and such agents are authorized to maintain one or
3 more commercial checking accounts with any State banking
4 corporation or corporations organized under or subject to the
5 Illinois Banking Act for the deposit and withdrawal of moneys
6 to be used for the purposes set forth in this Section;
7 provided, that no check may be written nor any withdrawal
8 made from any such account except upon the written signatures
9 of 2 persons designated by the Director to write such checks
10 and make such withdrawals. Vouchers for such expenditures
11 must be signed by the Director and all such expenditures
12 shall be audited by the Director and the audit shall be
13 submitted to the Department of Central Management Services
14 for approval.
15 Whenever the Department is authorized or required by law
16 to consider some aspect of criminal history record
17 information for the purpose of carrying out its statutory
18 powers and responsibilities, then, upon request and payment
19 of fees in conformance with the requirements of subsection 22
20 of Section 55a of the Civil Administrative Code of Illinois,
21 the Department of State Police is authorized to furnish,
22 pursuant to positive identification, such information
23 contained in State files as is necessary to fulfill the
24 request.
25 The provisions of this Section do not apply to private
26 business and vocational schools as defined by Section 1 of
27 the Private Business and Vocational Schools Act.
28 Beginning July 1, 1995, this Section does not apply to
29 those professions, trades, and occupations licensed under the
30 Real Estate License Act of 1999 1983 nor does it apply to any
31 permits, certificates, or other authorizations to do business
32 provided for in the Land Sales Registration Act of 1989 or
33 the Illinois Real Estate Time-Share Act.
34 (Source: P.A. 89-6, eff. 3-6-95; 89-23, eff. 7-1-95; 89-237,
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1 eff. 8-4-95; 89-411, eff. 6-1-96; 89-626, eff. 8-9-96; 90-18,
2 eff. 7-1-97.)
3 Section 905-15. The Residential Mortgage License Act of
4 1987 is amended by changing Section 1-4 as follows:
5 (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
6 Sec. 1-4. Definitions.
7 (a) "Residential real property" or "residential real
8 estate" shall mean real property located in this State
9 improved by a one-to-four family dwelling used or occupied,
10 wholly or partly, as the home or residence of one or more
11 persons and may refer, subject to regulations of the
12 Commissioner, to unimproved real property upon which those
13 kinds dwellings are to be constructed.
14 (b) "Making a residential mortgage loan" or "funding a
15 residential mortgage loan" shall mean for compensation or
16 gain, either directly or indirectly, advancing funds or
17 making a commitment to advance funds to a loan applicant for
18 a residential mortgage loan.
19 (c) "Soliciting, processing, placing, or negotiating a
20 residential mortgage loan" shall mean for compensation or
21 gain, either directly or indirectly, accepting or offering to
22 accept an application for a residential mortgage loan,
23 assisting or offering to assist in the processing of an
24 application for a residential mortgage loan on behalf of a
25 borrower, or negotiating or offering to negotiate the terms
26 or conditions of a residential mortgage loan with a lender on
27 behalf of a borrower including, but not limited to, the
28 submission of credit packages for the approval of lenders,
29 the preparation of residential mortgage loan closing
30 documents, including a closing in the name of a broker.
31 (d) "Exempt entity" shall mean the following:
32 (1) (i) Any banking organization or foreign banking
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1 corporation licensed by the Illinois Commissioner of
2 Banks and Real Estate or the United States Comptroller of
3 the Currency to transact business in this State; (ii) any
4 national bank, federally chartered savings and loan
5 association, federal savings bank, federal credit union;
6 (iii) any pension trust, bank trust, or bank trust
7 company; (iv) any savings and loan association, savings
8 bank, or credit union organized under the laws of this or
9 any other state; (v) any Illinois Consumer Installment
10 Loan Act licensee; (vi) any insurance company authorized
11 to transact business in this State; (vii) any entity
12 engaged solely in commercial mortgage lending; (viii) any
13 service corporation of a savings and loan association or
14 savings bank organized under the laws of this State or
15 the service corporation of a federally chartered savings
16 and loan association or savings bank having its principal
17 place of business in this State, other than a service
18 corporation licensed or entitled to reciprocity under the
19 Real Estate License Act of 1999 1983; or (ix) any first
20 tier subsidiary of a bank, the charter of which is issued
21 under the Illinois Banking Act by the Illinois
22 Commissioner of Banks and Real Estate, or the first tier
23 subsidiary of a bank chartered by the United States
24 Comptroller of the Currency and that has its principal
25 place of business in this State, provided that the first
26 tier subsidiary is regularly examined by the Illinois
27 Commissioner of Banks and Real Estate or the Comptroller
28 of the Currency, or a consumer compliance examination is
29 regularly conducted by the Federal Reserve Board.
30 (2) Any person or entity making or acquiring
31 residential mortgage loans with his or her own funds for
32 his or her own investment without intent to make,
33 acquire, or resell more than 10 residential mortgage
34 loans in any one calendar year.
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1 (3) Any person employed by a licensee to assist in
2 the performance of the activities regulated by this Act
3 who is compensated in any manner by only one licensee.
4 (4) Any person licensed pursuant to the Real Estate
5 License Act of 1999 1983, who engages only in the taking
6 of applications and credit and appraisal information to
7 forward to a licensee or an exempt entity under this Act
8 and who is compensated by either a licensee or an exempt
9 entity under this Act, but is not compensated by either
10 the buyer (applicant) or the seller.
11 (5) Any individual, corporation, partnership, or
12 other entity that originates, services, or brokers
13 residential mortgage loans, as these activities are
14 defined in this Act, and who or which receives no
15 compensation for those activities, subject to the
16 Commissioner's regulations with regard to the nature and
17 amount of compensation.
18 (6) A person who prepares supporting documentation
19 for a residential mortgage loan application taken by a
20 licensee and performs ministerial functions pursuant to
21 specific instructions of the licensee who neither
22 requires nor permits the preparer to exercise his or her
23 discretion or judgment; provided that this activity is
24 engaged in pursuant to a binding, written agreement
25 between the licensee and the preparer that:
26 (A) holds the licensee fully accountable for
27 the preparer's action; and
28 (B) otherwise meets the requirements of this
29 Section and this Act, does not undermine the
30 purposes of this Act, and is approved by the
31 Commissioner.
32 (e) "Licensee" or "residential mortgage licensee" shall
33 mean a person, partnership, association, corporation, or any
34 other entity who or which is licensed pursuant to this Act to
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1 engage in the activities regulated by this Act.
2 (f) "Mortgage loan" "residential mortgage loan" or "home
3 mortgage loan" shall mean a loan to or for the benefit of any
4 natural person made primarily for personal, family, or
5 household use, primarily secured by either a mortgage on
6 residential real property or certificates of stock or other
7 evidence of ownership interests in and proprietary leases
8 from, corporations, partnerships, or limited liability
9 companies formed for the purpose of cooperative ownership of
10 residential real property, all located in Illinois.
11 (g) "Lender" shall mean any person, partnership,
12 association, corporation, or any other entity who either
13 lends or invests money in residential mortgage loans.
14 (h) "Ultimate equitable owner" shall mean a person who,
15 directly or indirectly, owns or controls an ownership
16 interest in a corporation, foreign corporation, alien
17 business organization, trust, or any other form of business
18 organization regardless of whether the person owns or
19 controls the ownership interest through one or more persons
20 or one or more proxies, powers of attorney, nominees,
21 corporations, associations, partnerships, trusts, joint stock
22 companies, or other entities or devices, or any combination
23 thereof.
24 (i) "Residential mortgage financing transaction" shall
25 mean the negotiation, acquisition, sale, or arrangement for
26 or the offer to negotiate, acquire, sell, or arrange for, a
27 residential mortgage loan or residential mortgage loan
28 commitment.
29 (j) "Personal residence address" shall mean a street
30 address and shall not include a post office box number.
31 (k) "Residential mortgage loan commitment" shall mean a
32 contract for residential mortgage loan financing.
33 (l) "Party to a residential mortgage financing
34 transaction" shall mean a borrower, lender, or loan broker in
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1 a residential mortgage financing transaction.
2 (m) "Payments" shall mean payment of all or any of the
3 following: principal, interest and escrow reserves for taxes,
4 insurance and other related reserves, and reimbursement for
5 lender advances.
6 (n) "Commissioner" shall mean the Commissioner of Banks
7 and Real Estate or a person authorized by the Commissioner,
8 the Office of Banks and Real Estate Act, or this Act to act
9 in the Commissioner's stead .
10 (o) "Loan brokering", "brokering", or "brokerage
11 service" shall mean the act of helping to obtain from another
12 entity, for a borrower, a loan secured by residential real
13 estate situated in Illinois or assisting a borrower in
14 obtaining a loan secured by residential real estate situated
15 in Illinois in return for consideration to be paid by either
16 the borrower or the lender including, but not limited to,
17 contracting for the delivery of residential mortgage loans to
18 a third party lender and soliciting, processing, placing, or
19 negotiating residential mortgage loans.
20 (p) "Loan broker" or "broker" shall mean a person,
21 partnership, association, corporation, or limited liability
22 company, other than those persons, partnerships,
23 associations, corporations, or limited liability companies
24 exempted from licensing pursuant to Section 1-4, subsection
25 (d), of this Act, who performs the activities described in
26 subsections (c) and (o) of this Section.
27 (q) "Servicing" shall mean the collection or remittance
28 for or the right or obligation to collect or remit for any
29 lender, noteowner, noteholder, or for a licensee's own
30 account, of payments, interests, principal, and trust items
31 such as hazard insurance and taxes on a residential mortgage
32 loan in accordance with the terms of the residential mortgage
33 loan; and includes loan payment follow-up, delinquency loan
34 follow-up, loan analysis and any notifications to the
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1 borrower that are necessary to enable the borrower to keep
2 the loan current and in good standing.
3 (r) "Full service office" shall mean office and staff in
4 Illinois reasonably adequate to handle efficiently
5 communications, questions, and other matters relating to any
6 application for, or an existing home mortgage secured by
7 residential real estate situated in Illinois with respect to
8 which the licensee is brokering, funding originating,
9 purchasing, or servicing. The management and operation of
10 each full service office must include observance of good
11 business practices such as adequate, organized, and accurate
12 books and records; ample phone lines, hours of business,
13 staff training and supervision, and provision for a mechanism
14 to resolve consumer inquiries, complaints, and problems. The
15 Commissioner shall issue regulations with regard to these
16 requirements and shall include an evaluation of compliance
17 with this Section in his or her periodic examination of each
18 licensee.
19 (s) "Purchasing" shall mean the purchase of conventional
20 or government-insured mortgage loans secured by residential
21 real estate situated in Illinois from either the lender or
22 from the secondary market.
23 (t) "Borrower" shall mean the person or persons who seek
24 the services of a loan broker, originator, or lender.
25 (u) "Originating" shall mean the issuing of commitments
26 for and funding of residential mortgage loans.
27 (v) "Loan brokerage agreement" shall mean a written
28 agreement in which a broker or loan broker agrees to do
29 either of the following:
30 (1) obtain a residential mortgage loan for the
31 borrower or assist the borrower in obtaining a
32 residential mortgage loan; or
33 (2) consider making a residential mortgage loan to
34 the borrower.
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1 (w) "Advertisement" shall mean the attempt by
2 publication, dissemination, or circulation to induce,
3 directly or indirectly, any person to enter into a
4 residential mortgage loan agreement or residential mortgage
5 loan brokerage agreement relative to a mortgage secured by
6 residential real estate situated in Illinois.
7 (x) "Residential Mortgage Board" shall mean the
8 Residential Mortgage Board created in Section 1-5 of this
9 Act.
10 (y) "Government-insured mortgage loan" shall mean any
11 mortgage loan made on the security of residential real estate
12 insured by the Department of Housing and Urban Development or
13 Farmers Home Loan Administration, or guaranteed by the
14 Veterans Administration.
15 (z) "Annual audit" shall mean a certified audit of the
16 licensee's books and records and systems of internal control
17 performed by a certified public accountant in accordance with
18 generally accepted accounting principles and generally
19 accepted auditing standards.
20 (aa) "Financial institution" shall mean a savings and
21 loan association, savings bank, credit union, or a bank
22 organized under the laws of Illinois or a savings and loan
23 association, savings bank, credit union or a bank organized
24 under the laws of the United States and headquartered in
25 Illinois.
26 (bb) "Escrow agent" shall mean a third party, individual
27 or entity charged with the fiduciary obligation for holding
28 escrow funds on a residential mortgage loan pending final
29 payout of those funds in accordance with the terms of the
30 residential mortgage loan.
31 (cc) "Net worth" shall have the meaning ascribed thereto
32 in Section 3-5 of this Act.
33 (dd) "Affiliate" shall mean:
34 (1) any entity that directly controls or is
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1 controlled by the licensee and any other company that is
2 directly affecting activities regulated by this Act that
3 is controlled by the company that controls the licensee;
4 (2) any entity:
5 (A) that is controlled, directly or
6 indirectly, by a trust or otherwise, by or for the
7 benefit of shareholders who beneficially or
8 otherwise control, directly or indirectly, by trust
9 or otherwise, the licensee or any company that
10 controls the licensee; or
11 (B) a majority of the directors or trustees of
12 which constitute a majority of the persons holding
13 any such office with the licensee or any company
14 that controls the licensee;
15 (3) any company, including a real estate investment
16 trust, that is sponsored and advised on a contractual
17 basis by the licensee or any subsidiary or affiliate of
18 the licensee.
19 The Commissioner may define by rule and regulation any
20 terms used in this Act for the efficient and clear
21 administration of this Act.
22 (ee) "First tier subsidiary" shall be defined by
23 regulation incorporating the comparable definitions used by
24 the Office of the Comptroller of the Currency and the
25 Illinois Commissioner of Banks and Real Estate.
26 (ff) "Gross delinquency rate" means the quotient
27 determined by dividing (1) the sum of (i) the number of
28 government-insured residential mortgage loans funded or
29 purchased by a licensee in the preceding calendar year that
30 are delinquent and (ii) the number of conventional
31 residential mortgage loans funded or purchased by the
32 licensee in the preceding calendar year that are delinquent
33 by (2) the sum of (i) the number of government-insured
34 residential mortgage loans funded or purchased by the
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1 licensee in the preceding calendar year and (ii) the number
2 of conventional residential mortgage loans funded or
3 purchased by the licensee in the preceding calendar year.
4 (gg) "Delinquency rate factor" means the factor set by
5 rule of the Commissioner that is multiplied by the average
6 gross delinquency rate of licensees, determined annually for
7 the immediately preceding calendar year, for the purpose of
8 determining which licensees shall be examined by the
9 Commissioner pursuant to subsection (b) of Section 4-8 of
10 this Act.
11 (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.)
12 Section 905-20. The Title Insurance Act is amended by
13 changing Section 3 as follows:
14 (215 ILCS 155/3) (from Ch. 73, par. 1403)
15 Sec. 3. As used in this Act, the words and phrases
16 following shall have the following meanings unless the
17 context requires otherwise:
18 (1) "Business of guaranteeing or insuring titles to real
19 estate" means the making as insurer or guarantor, or
20 proposing to make as insurer or guarantor, of any contract or
21 policy of title insurance; the transacting or proposing to
22 transact, any phase of title insurance, including, as an
23 insurer or guarantor, examination of title, solicitation,
24 negotiation preliminary to the execution of a contract of
25 title insurance, and execution of a contract of title
26 insurance, insuring and transacting matters subsequent to the
27 execution of the contract and arising out of it, other than
28 reinsurance; the performance of any service in conjunction
29 with the issuance of any contract or policy of title
30 insurance, including but not limited to the handling of any
31 escrow, settlement or closing, if conducted by a title
32 insurance company or title insurance agent; or the doing, or
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1 proposing to do, any business in substance equivalent to any
2 of the foregoing in a manner designed to evade the provisions
3 of this Act.
4 (2) "Title insurance company" means any domestic company
5 organized under the laws of this State for the purpose of
6 conducting the business of guaranteeing or insuring titles to
7 real estate and any title insurance company organized under
8 the laws of another State, the District of Columbia or
9 foreign government and authorized to transact the business of
10 guaranteeing or insuring titles to real estate in this State.
11 (3) "Title insurance agent" means a person, firm,
12 partnership, association, corporation or other legal entity
13 registered by a title insurance company and authorized by
14 such company to determine insurability of title in accordance
15 with generally acceptable underwriting rules and standards in
16 reliance on either the public records or a search package
17 prepared from a title plant, or both, and authorized in
18 addition to do any of the following: act as an escrow agent,
19 solicit title insurance, collect premiums, issue title
20 reports, binders or commitments to insure and policies in its
21 behalf, provided, however, the term "title insurance agent"
22 shall not include officers and salaried employees of any
23 title insurance company.
24 (4) "Producer of title business" is any person, firm,
25 partnership, association, corporation or other legal entity
26 engaged in this State in the trade, business, occupation or
27 profession of (i) buying or selling interests in real
28 property, (ii) making loans secured by interests in real
29 property, or (iii) acting as broker, agent, attorney, or
30 representative of natural persons or other legal entities
31 that buy or sell interests in real property or that lend
32 money with such interests as security.
33 (5) "Associate" is any firm, association, partnership,
34 corporation or other legal entity organized for profit in
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1 which a producer of title business is a director, officer, or
2 partner thereof, or owner of a financial interest, as defined
3 herein, in such entity; any legal entity that controls, is
4 controlled by, or is under common control with a producer of
5 title business; and any natural person or legal entity with
6 whom a producer of title business has any agreement,
7 arrangement, or understanding or pursues any course of
8 conduct the purpose of which is to evade the provisions of
9 this Act.
10 (6) "Financial interest" is any ownership interest,
11 legal or beneficial, except ownership of publicly traded
12 stock.
13 (7) "Refer" means to place or cause to be placed, or to
14 exercise any power or influence over the placing of title
15 business, whether or not the consent or approval of any other
16 person is sought or obtained with respect to the referral.
17 (8) "Escrow Agent" means any title insurance company or
18 any title insurance agent acting on behalf of a title
19 insurance company which receives deposits, in trust, of funds
20 or documents, or both, for the purpose of effecting the sale,
21 transfer, encumbrance or lease of real property to be held by
22 such escrow agent until title to the real property that is
23 the subject of the escrow is in a prescribed condition.
24 (9) "Independent Escrowee" means any firm, person,
25 partnership, association, corporation or other legal entity,
26 other than a title insurance company or a title insurance
27 agent, which receives deposits, in trust, of funds or
28 documents, or both, for the purpose of effecting the sale,
29 transfer, encumbrance or lease of real property to be held by
30 such escrowee until title to the real property that is the
31 subject of the escrow is in a prescribed condition. Federal
32 and State chartered banks, savings and loan associations,
33 credit unions, mortgage bankers, banks or trust companies
34 authorized to do business under the Illinois Corporate
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1 Fiduciary Act, licensees under the Consumer Installment Loan
2 Act, real estate brokers licensed pursuant to the Real Estate
3 License Act of 1999 1983, as such Acts are now or hereafter
4 amended, and licensed attorneys when engaged in the
5 attorney-client relationship are exempt from the escrow
6 provisions of this Act.
7 (10) "Single risk" means the insured amount of any title
8 insurance policy, except that where 2 or more title insurance
9 policies are issued simultaneously covering different estates
10 in the same real property, "single risk" means the sum of the
11 insured amounts of all such title insurance policies. Any
12 title insurance policy insuring a mortgage interest, a claim
13 payment under which reduces the insured amount of a fee or
14 leasehold title insurance policy, shall be excluded in
15 computing the amount of a single risk to the extent that the
16 insured amount of the mortgage title insurance policy does
17 not exceed the insured amount of the fee or leasehold title
18 insurance policy.
19 (11) "Department" means the Department of Financial
20 Institutions.
21 (12) "Director" means the Director of Financial
22 Institutions.
23 (Source: P.A. 86-239.)
24 Section 905-21. The Environmental Health Practitioner
25 Licensing Act is amended by changing Section 21 as follows:
26 (225 ILCS 37/21)
27 Sec. 21. Grandfather provision.
28 (a) A person who, on June 30, the effective date of this
29 amendatory Act of 1995, was certified by his or her employer
30 as serving as a sanitarian or environmental health
31 practitioner in environmental health practice in this State
32 may be issued a license upon the filing of an application and
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1 within 12 months, by paying the required fees, and by passing
2 the examination.
3 (b) The Department may, upon application and payment of
4 the required fee within 12 months, issue a license to a
5 person who holds a current license as a sanitarian or
6 environmental health practitioner issued by the Illinois
7 Environmental Health Association or National Environmental
8 Health Association.
9 (Source: P.A. 89-61, eff. 6-30-95.)
10 Section 905-22. The Illinois Professional Land Surveyor
11 Act of 1989 is amended by changing Section 20 as follows:
12 (225 ILCS 330/20) (from Ch. 111, par. 3270)
13 Sec. 20. Endorsement. Upon payment of the required fee,
14 an applicant who is a Professional Land Surveyor, a Land
15 Surveyor-in-Training, or registered or licensed or otherwise
16 legally recognized as a Land Surveyor under the laws of
17 another state or territory of the United States may be
18 granted a license as an Illinois Professional Land Surveyor
19 by the Department with approval of the Board upon the
20 following conditions:
21 (a) That the applicant meets the requirements for
22 licensing in this State, and that the requirements for
23 licensing or other legal recognition of Land Surveyors in the
24 particular state or territory were, at the date of issuance
25 of the license or certificate, equivalent to the requirements
26 then in effect in the State of Illinois; however, the
27 applicant shall be exempt from the requirements of item (5)
28 of subsection (a) of Section 12 of this Act if he or she (1)
29 applied for a license under this Section between September 1,
30 1996 and October 31, 1996 and (2) has 10 or more years of
31 supervised experience as a land surveyor; and
32 (b) That the applicant passes a jurisdictional
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1 examination to determine the applicant's knowledge of the
2 surveying tasks unique to the State of Illinois and the laws
3 pertaining thereto.
4 (Source: P.A. 86-987.)
5 Section 905-23. The Barber, Cosmetology, Esthetics, and
6 Nail Technology Act of 1985 is amended by changing Section
7 3C-4 as follows:
8 (225 ILCS 410/3C-4) (from Ch. 111, par. 1703C-4)
9 Sec. 3C-4. Pre-existing practitioners; license
10 requirements for nail technicians.
11 (a) Until December 31, 1995, an applicant who was
12 practicing nail technology prior to the effective date of
13 this amendatory Act of 1991 shall be issued a license as a
14 nail technician if the applicant meets all of the following
15 requirements:
16 (1) Completes and submits to the Department the
17 necessary forms furnished by the Department along with an
18 application fee of $20.
19 (2) Is at least 16 years of age.
20 (3) Has graduated from an eighth grade elementary
21 school or its equivalent.
22 (4) Has one year of full-time (40 hours per week)
23 practical experience or 2 years of part-time (not less
24 than 20 hours per week) practical experience as a nail
25 technician prior to the effective date of this amendatory
26 Act of 1991, or has 200 hours of certifiable nail
27 technology education in a cosmetology school or
28 vocational technical school. The nail technology
29 education must have been obtained prior to January 1,
30 1994.
31 (5) Submits a written affidavit stating a nail
32 technician's practical work experience executed by an
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1 employer, co-worker, or client; or a copy of a current
2 business license, where applicable. For purposes of this
3 item (5), work in sales shall not be considered practical
4 work experience.
5 (b) A person who applies for licensure under this
6 Section between January 1, 1999 1997 and January 31, 1999
7 1997, who has been practicing nail technology for a minimum
8 of 6 years in this State, shall be issued a license upon
9 proof of such experience and meeting all other requirements
10 for licensure under this Section.
11 (Source: P.A. 89-125, eff. 7-7-95; 89-706, eff. 1-31-97.)
12 Section 905-24. The Private Detective, Private Alarm,
13 Private Security, and Locksmith Act of 1993 is amended by
14 changing Sections 75 and 77 as follows:
15 (225 ILCS 446/75)
16 Sec. 75. Qualifications for licensure and agency
17 certification.
18 (a) Private Detective. A person is qualified to receive
19 a license as a private detective if he or she meets all of
20 the following requirements:
21 (1) Is at least 21 years of age.
22 (2) Has not been convicted in any jurisdiction of
23 any felony or at least 10 years have expired from the
24 time of discharge from any sentence imposed for a felony.
25 (3) Is of good moral character. Good character is
26 a continuing requirement of licensure. Conviction of
27 crimes not listed in paragraph (2) of subsection (a) of
28 this Section may be used in determining moral character,
29 but does not operate as an absolute bar to licensure.
30 (4) Has not been declared by any court of competent
31 jurisdiction to be incompetent by reason of mental or
32 physical defect or disease unless a court has since
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1 declared him or her to be competent.
2 (5) Is not suffering from habitual drunkenness or
3 from narcotic addiction or dependence.
4 (6) Has a minimum of 3 years experience out of the
5 5 years immediately preceding his or her application
6 working full-time for a licensed private detective agency
7 as a registered private detective employee or with 3
8 years experience out of the 5 years immediately preceding
9 his or her application employed as a full-time
10 investigator in a law enforcement agency of a federal or
11 State political subdivision, approved by the Board and
12 the Department; or an applicant who has obtained a
13 baccalaureate degree in police science or a related field
14 or a business degree from an accredited college or
15 university shall be given credit for 2 of the 3 years
16 experience required under this Section. An applicant who
17 has obtained an associate degree in police science or a
18 related field or in business from an accredited college
19 or university shall be given credit for one of the 3
20 years experience required under this Section.
21 (7) Has not been dishonorably discharged from the
22 armed services of the United States.
23 (8) Has successfully passed an examination
24 authorized by the Department. The examination shall
25 include subjects reasonably related to the activities
26 licensed so as to provide for the protection of the
27 health and safety of the public.
28 (9) Has not violated Section 15, 20, or 25 of this
29 Act, but this requirement does not operate as an absolute
30 bar to licensure.
31 It is the responsibility of the applicant to obtain
32 liability insurance in an amount and coverage type
33 appropriate as determined by rule for the applicant's
34 individual business circumstances. The applicant shall
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1 provide evidence of insurance to the Department before being
2 issued a license. This insurance requirement is a continuing
3 requirement for licensure. Failure to maintain insurance
4 shall result in cancellation of the license by the
5 Department.
6 (b) Private security contractor. A person is qualified
7 to receive a license as a private security contractor if he
8 or she meets all of 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 moral
14 character is a continuing requirement of licensure.
15 Convictions of crimes not listed in paragraph (2) of
16 subsection (b) of this Section may be used in determining
17 moral character, but do not operate as an absolute bar to
18 licensure.
19 (4) Has not been declared by any court of competent
20 jurisdiction to be incompetent by reason of mental or
21 physical defect or disease unless a court has since
22 declared him or her to be competent.
23 (5) Is not suffering from habitual drunkenness or
24 from narcotic addiction or dependence.
25 (6) Has a minimum of 3 years experience out of the
26 5 years immediately preceding his or her application as a
27 full-time manager or administrator for a licensed private
28 security contractor agency or a manager or administrator
29 of a proprietary security force of 30 or more persons
30 registered with the Department, or with 3 years
31 experience out of the 5 years immediately preceding his
32 or her application as a full-time supervisor in a law
33 enforcement agency of a federal or State political
34 subdivision, approved by the Board and the Department; or
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1 an applicant who has obtained a baccalaureate degree in
2 police science or a related field or a business degree
3 from an accredited college or university shall be given
4 credit for 2 of the 3 years experience required under
5 this Section. An applicant who has obtained an associate
6 degree in police science or a related field or in
7 business from an accredited college or university shall
8 be given credit for one of the 3 years experience
9 required under this Section.
10 (7) Has not been dishonorably discharged from the
11 armed services of the United States.
12 (8) Has successfully passed an examination
13 authorized by the Department. The examination shall
14 include subjects reasonably related to the activities
15 licensed so as to provide for the protection of the
16 health and safety of the public.
17 (9) Has not violated Section 15, 20, or 25 of this
18 Act, but this requirement does not operate as an absolute
19 bar to licensure.
20 (10) It is the responsibility of the applicant to
21 obtain liability insurance in amount and coverage type
22 appropriate as determined by rule for the applicant's
23 individual business circumstances. The applicant shall
24 provide evidence of insurance to the Department before
25 being issued a license. This insurance requirement is a
26 continuing requirement for licensure. Failure to
27 maintain insurance shall result in cancellation of the
28 license by the Department.
29 (c) Private alarm contractor. A person is qualified to
30 receive a license as a private alarm contractor if he or she
31 meets all of the following requirements:
32 (1) Is at least 21 years of age.
33 (2) Has not been convicted in any jurisdiction of
34 any felony or at least 10 years have expired from the
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1 time of discharge from any sentence imposed for a felony.
2 (3) Is of good moral character. Good moral
3 character is a continuing requirement of licensure.
4 Convictions of crimes not listed in paragraph (2) of
5 subsection (c) of this Section may be used in determining
6 moral character, but do not operate as an absolute bar to
7 licensure.
8 (4) Has not been declared by any court of competent
9 jurisdiction to be incompetent by reason of mental or
10 physical defect or disease unless a court has since
11 declared him or her to be competent.
12 (5) Is not suffering from habitual drunkenness or
13 from narcotic addiction or dependence.
14 (6) Has not been dishonorably discharged from the
15 armed services of the United States.
16 (7) Has a minimum of 3 years experience out of the
17 5 years immediately preceding application as a full time
18 manager or administrator for an agency licensed as a
19 private alarm contractor agency, or for an entity that
20 designs, sells, installs, services, or monitors alarm
21 systems which in the judgment of the Board satisfies
22 standards of alarm industry competence. An individual who
23 has received a 4 year degree in electrical engineering or
24 a related field from a program approved by the Board
25 shall be given credit for 2 years of experience under
26 this item (7). An individual who has successfully
27 completed a national certification program approved by
28 the Board shall be given credit for one year of
29 experience under this item (7).
30 (8) Has successfully passed an examination
31 authorized by the Department. The examination shall
32 include subjects reasonably related to the activities
33 licensed so as to provide for the protection of the
34 health and safety of the public.
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1 (9) Has not violated Section 15, 20, or 25 of this
2 Act, but this requirement does not operate as an absolute
3 bar to licensure.
4 (10) It is the responsibility of the applicant to
5 obtain liability insurance in an amount and coverage type
6 appropriate as determined by rule for the applicant's
7 individual business circumstances. The applicant shall
8 provide evidence of insurance to the Department before
9 being issued a license. This insurance requirement is a
10 continuing requirement for licensure. Failure to
11 maintain insurance shall result in cancellation of the
12 license by the Department.
13 Alternatively, a person is qualified to receive a license
14 as a private alarm contractor without meeting the
15 requirements of items (7), (8), and (9) of this subsection,
16 if he or she:
17 (i) applies for a license between September 1, 1998
18 and September 15, 1998, in writing, on forms supplied by
19 the Department;
20 (ii) provides proof to the Department that he or
21 she was engaged in the alarm contracting business on or
22 before January 1, 1984;
23 (iii) submits the photographs, fingerprints, proof
24 of insurance, and current license fee required by the
25 Department; and
26 (iv) has not violated Section 25 of this Act.
27 (d) Locksmith. A person is qualified to receive a
28 license as a locksmith if he or she meets all of the
29 following requirements:
30 (1) Is at least 18 years of age.
31 (2) Has not violated any provisions of Section 120
32 of this Act.
33 (3) Has not been convicted in any jurisdiction of
34 any felony or at least 10 years have expired from the
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1 time of discharge from any sentence imposed for a felony.
2 (4) Is of good moral character. Good moral
3 character is a continuing requirement of licensure.
4 Convictions of crimes not listed in paragraph (3) of
5 subsection (d) of this Section may be used in determining
6 moral character, but do not operate as an absolute bar to
7 licensure.
8 (5) Has not been declared by any court of competent
9 jurisdiction to be incompetent by reason of mental or
10 physical defect or disease unless a court has since
11 declared him or her to be competent.
12 (6) Is not suffering from habitual drunkenness or
13 from narcotic addiction or dependence.
14 (7) Has not been dishonorably discharged from the
15 armed services of the United States.
16 (8) Has passed an examination authorized by the
17 Department in the theory and practice of the profession.
18 (9) Has submitted to the Department proof of
19 insurance sufficient for the individual's business
20 circumstances. The Department, with input from the
21 Board, shall promulgate rules specifying minimum
22 insurance requirements. This insurance requirement is a
23 continuing requirement for licensure. Failure to
24 maintain insurance shall result in the cancellation of
25 the license by the Department. A locksmith employed by a
26 licensed locksmith agency or employed by a private
27 concern may provide proof that his or her actions as a
28 locksmith are covered by the insurance of his or her
29 employer.
30 (e) Private detective agency. Upon payment of the
31 required fee and proof that the applicant has a full-time
32 Illinois licensed private detective in charge, which is a
33 continuing requirement for agency certification, the
34 Department shall issue, without examination, a certificate as
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1 a private detective agency to any of the following:
2 (1) An individual who submits an application in
3 writing and who is a licensed private detective under
4 this Act.
5 (2) A firm or association that submits an
6 application in writing and all of the members of the firm
7 or association are licensed private detectives under this
8 Act.
9 (3) A duly incorporated or registered corporation
10 allowed to do business in Illinois that is authorized by
11 its articles of incorporation to engage in the business
12 of conducting a detective agency, provided at least one
13 officer or executive employee is licensed as a private
14 detective under this Act and all unlicensed officers and
15 directors of the corporation are determined by the
16 Department to be persons of good moral character.
17 No private detective may be the private detective in
18 charge for more than one agency except for an individual who,
19 on the effective date of this Act, is currently and actively
20 a licensee for more than one agency. Upon written request by
21 a representative of an agency within 10 days after the loss
22 of a licensee in charge of an agency because of the death of
23 that individual or because of an unanticipated termination of
24 the employment of that individual, the Department shall issue
25 a temporary permit allowing the continuing operation of a
26 previously licensed agency. No temporary permit shall be
27 valid for more than 90 days. An extension of an additional
28 90 days may be granted by the Department for good cause shown
29 upon written request by the representative of the agency. No
30 more than 2 extensions may be granted to any agency. No
31 temporary permit shall be issued for the loss of the
32 detective in charge because of disciplinary action by the
33 Department.
34 (f) Private alarm contractor agency. Upon receipt of
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1 the required fee and proof that the applicant has a full-time
2 Illinois licensed private alarm contractor in charge, which
3 is a continuing requirement for agency certification, the
4 Department shall issue, without examination, a certificate as
5 a private alarm contractor agency to any of the following:
6 (1) An individual who submits an application in
7 writing and who is a licensed private alarm contractor
8 under this Act.
9 (2) A firm or association that submits an
10 application in writing that all of the members of the
11 firm or association are licensed private alarm
12 contractors under this Act.
13 (3) A duly incorporated or registered corporation
14 allowed to do business in Illinois that is authorized by
15 its articles of incorporation to engage in the business
16 of conducting a private alarm contractor agency, provided
17 at least one officer or executive employee is licensed as
18 a private alarm contractor under this Act and all
19 unlicensed officers and directors of the corporation are
20 determined by the Department to be persons of good moral
21 character.
22 No private alarm contractor may be the private alarm
23 contractor in charge for more than one agency except for any
24 individual who, on the effective date of this Act, is
25 currently and actively a licensee for more than one agency.
26 Upon written request by a representative of an agency within
27 10 days after the loss of a licensed private alarm contractor
28 in charge of an agency because of the death of that
29 individual or because of the unanticipated termination of the
30 employment of that individual, the Department shall issue a
31 temporary permit allowing the continuing operation of a
32 previously licensed agency. No temporary permit shall be
33 valid for more than 90 days. An extension of an additional
34 90 days may be granted by the Department for good cause shown
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1 and upon written request by the representative of the agency.
2 No more than 2 extensions may be granted to any agency. No
3 temporary permit shall be issued for the loss of the licensee
4 in charge because of disciplinary action by the Department.
5 (g) Private security contractor agency. Upon receipt of
6 the required fee and proof that the applicant has a full-time
7 Illinois licensed private security contractor in charge,
8 which is continuing requirement for agency certification, the
9 Department shall issue, without examination, a certificate as
10 a private security contractor agency to any of the following:
11 (1) An individual who submits an application in
12 writing and who is a licensed private security contractor
13 under this Act.
14 (2) A firm or association that submits an
15 application in writing that all of the members are
16 licensed private security contractors under this Act.
17 (3) A duly incorporated or registered corporation
18 allowed to do business in Illinois that is authorized by
19 its articles of incorporation to engage in the business
20 of conducting a private security contractor agency,
21 provided at least one officer or executive employee is
22 licensed as a private security contractor under this Act
23 and all unlicensed officers and directors of the
24 corporation are determined by the Department to be
25 persons of good moral character.
26 No private security contractor may be the private
27 security contractor in charge for more than one agency except
28 for any individual who, on the effective date of this Act, is
29 currently and actively a licensee for more than one agency.
30 Upon written request by a representative of the agency within
31 10 days after the loss of a licensee in charge of an agency
32 because of the death of that individual or because of the
33 unanticipated termination of the employment of that
34 individual, the Department shall issue a temporary permit
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1 allowing the continuing operation of a previously licensed
2 agency. No temporary permit shall be valid for more than 90
3 days. An extension of an additional 90 days may be granted
4 upon written request by the representative of the agency. No
5 more than 2 extensions may be granted to any agency. No
6 temporary permit shall be issued for the loss of the licensee
7 in charge because of disciplinary action by the Department.
8 (h) Licensed locksmith agency. Upon receipt of the
9 required fee and proof that the applicant is an Illinois
10 licensed locksmith who shall assume full responsibility for
11 the operation of the agency and the directed actions of the
12 agency's employees, which is a continuing requirement for
13 agency licensure, the Department shall issue, without
14 examination, a certificate as a Locksmith Agency to any of
15 the following:
16 (1) An individual who submits an application in
17 writing and who is a licensed locksmith under this Act.
18 (2) A firm or association that submits an
19 application in writing and certifies that all of the
20 members of the firm or association are licensed
21 locksmiths under this Act.
22 (3) A duly incorporated or registered corporation
23 or limited liability company allowed to do business in
24 Illinois that is authorized by its articles of
25 incorporation or organization to engage in the business
26 of conducting a locksmith agency, provided that at least
27 one officer or executive employee of a corporation or one
28 member of a limited liability company is licensed as a
29 locksmith under this Act, and provided that person agrees
30 in writing on a form acceptable to the Department to
31 assume full responsibility for the operation of the
32 agency and the directed actions of the agency's
33 employees, and further provided that all unlicensed
34 officers and directors of the corporation or members of
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1 the limited liability company are determined by the
2 Department to be persons of good moral character.
3 An individual licensed locksmith operating under a
4 business name other than the licensed locksmith's own name
5 shall not be required to obtain a locksmith agency license if
6 that licensed locksmith does not employ any persons to engage
7 in the practice of locksmithing.
8 An applicant for licensure as a locksmith agency shall
9 submit to the Department proof of insurance sufficient for
10 the agency's business circumstances. The Department shall
11 promulgate rules specifying minimum insurance requirements.
12 This insurance requirement is a continuing requirement for
13 licensure.
14 No licensed locksmith may be the licensed locksmith
15 responsible for the operation of more than one agency except
16 for any individual who submits proof to the Department that,
17 on the effective date of this amendatory Act of 1995, he or
18 she is actively responsible for the operations of more than
19 one agency. A licensed private alarm contractor who is
20 responsible for the operation of a licensed private alarm
21 contractor agency and who is a licensed locksmith may also be
22 the licensed locksmith responsible for the operation of a
23 locksmith agency.
24 Upon written request by a representative of an agency
25 within 10 days after the loss of a responsible licensed
26 locksmith of an agency, because of the death of that
27 individual or because of the unanticipated termination of the
28 employment of that individual, the Department shall issue a
29 temporary permit allowing the continuing operation of a
30 previously licensed locksmith agency. No temporary permit
31 shall be valid for more than 90 days. An extension for an
32 additional 90 days may be granted by the Department for good
33 cause shown and upon written request by a representative of
34 the agency. No more than 2 extensions may be granted to any
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1 agency. No temporary permit shall be issued to any agency
2 due to the loss of the responsible locksmith because of
3 disciplinary action by the Department.
4 (i) Any licensed agency that operates a branch office as
5 defined in this Act shall apply for a branch office license.
6 (Source: P.A. 89-85, eff. 1-1-96; 89-366, eff. 1-1-96;
7 89-626, eff. 8-9-96; 90-436, eff. 1-1-98.)
8 (225 ILCS 446/77)
9 Sec. 77. Necessity for licensure of locksmith agencies;
10 grandfather provision.
11 (a) On or after January 1, 1997, no person shall
12 practice as a locksmith and no business entity shall operate
13 as a locksmith agency without first applying for and
14 obtaining a license for that purpose from the Department.
15 (b) Applications must be accompanied by the required
16 fee.
17 (c) In lieu of the examination given to other applicants
18 for licensure, the Director may issue a license to an
19 individual who presents proof to the Director that he or she
20 was actively engaged as a locksmith or as a supervisor,
21 manager, or administrator of a locksmith business for 3 years
22 out of the 5 years immediately preceding January 1, 1996 and
23 meets all other requirements of this Act.
24 (d) The application for a license without examination
25 shall be made to the Director within 2 years after the
26 effective date of this amendatory Act of 1995.
27 (e) A person who applies for licensure under this
28 Section between September 1, 1998 and September 30, 1998
29 shall be exempt from subsection (d) of this Section and shall
30 be issued a license upon proof of meeting all other
31 requirements for licensure under this Section.
32 (Source: P.A. 89-366, eff. 1-1-96.)
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1 Section 905-25. The Illinois Highway Code is amended by
2 changing Section 5-907 as follows:
3 (605 ILCS 5/5-907) (from Ch. 121, par. 5-907)
4 Sec. 5-907. Advisory Committee. A road improvement impact
5 fee advisory committee shall be created by the unit of local
6 government intending to impose impact fees. The Advisory
7 Committee shall consist of not less than 10 members and not
8 more than 20 members. Not less than 40% of the members of
9 the committee shall be representatives of the real estate,
10 development, and building industries and the labor
11 communities and may not be employees or officials of the unit
12 of local government.
13 The members of the Advisory Committee shall be selected
14 as follows:
15 (1) The representatives of real estate shall be
16 licensed under the Real Estate License Act of 1999 1983
17 and shall be designated by the President of the Illinois
18 Association of Realtors from a local Board from the
19 service area or areas of the unit of local government.
20 (2) The representatives of the development industry
21 shall be designated by the Regional Developers
22 Association.
23 (3) The representatives of the building industry
24 shall be designated representatives of the Regional Home
25 Builders representing the unit of local government's
26 geographic area as appointed from time to time by that
27 Association's president.
28 (4) The labor representatives shall be chosen by
29 either the Central Labor Council or the Building and
30 Construction Trades Council having jurisdiction within
31 the unit of local government.
32 If the unit of local government is a county, at least 30%
33 of the members serving on the commission must be
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1 representatives of the municipalities within the county. The
2 municipal representatives shall be selected by a convention
3 of mayors in the county, who shall elect from their
4 membership municipal representatives to serve on the Advisory
5 Committee. The members representing the county shall be
6 appointed by the chief executive officer of the county.
7 If the unit of local government is a municipality, the
8 non-public representatives shall be appointed by the chief
9 executive officer of the municipality.
10 If the unit of local government has a planning or zoning
11 commission, the unit of local government may elect to use its
12 planning or zoning commission to serve as the Advisory
13 Committee, provided that not less than 40% of the committee
14 members include representatives of the real estate,
15 development, and building industries and the labor
16 communities who are not employees or officials of the unit of
17 local government. A unit of local government may appoint
18 additional members to serve on the planning or zoning
19 commission as ad hoc voting members whenever the planning or
20 zoning commission functions as the Advisory Committee;
21 provided that no less than 40% of the members include
22 representatives of the real estate, development, and building
23 industries and the labor communities.
24 (Source: P.A. 86-97.)
25 Section 905-30. The Illinois Real Estate Time-Share Act
26 is amended by changing Sections 19, 33, and 34 as follows:
27 (765 ILCS 100/19) (from Ch. 30, par. 719)
28 Sec. 19. (a) Any person acting as a sales agent of a
29 time-share estate of real property without having first
30 complied with the Real Estate License Act of 1999 1983 shall
31 be guilty of a Class A misdemeanor.
32 Upon conviction of a second offense the violator shall be
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1 guilty of a Class A misdemeanor.
2 Upon conviction of a third or subsequent offense the
3 violator shall be guilty of a Class 4 felony and shall be
4 fined not less than $15,000 nor more than $50,000.
5 (b) In addition to any other remedies, the Commissioner,
6 through the Attorney General, is authorized to file a
7 complaint and apply to any circuit court wherein such alleged
8 acts are occurring, and such circuit court may upon hearing
9 and for cause shown, grant a temporary restraining order or a
10 preliminary or permanent injunction, without bond,
11 restraining any person from violating this Act whether or not
12 there exists other judicial remedies.
13 (c) The Commissioner by and through the Attorney General
14 `ay file a complaint for violation of this Act.
15 (d) The penalties and remedies provided by this Act
16 shall not be exclusive, but shall be in addition to all other
17 penalties or remedies provided by law.
18 (Source: P.A. 89-508, eff. 7-3-96.)
19 (765 ILCS 100/33) (from Ch. 30, par. 733)
20 Sec. 33. If a time-share program involves the offering,
21 sale, exchange or lease of real property, then any sales
22 agent, involved in the transaction must comply with the Real
23 Estate License Act of 1999 1983.
24 (Source: P.A. 84-821.)
25 (765 ILCS 100/34) (from Ch. 30, par. 734)
26 Sec. 34. All fees in the Real Estate Time-Share
27 Registration Fund on the effective date of this amendatory
28 Act of 1986 shall be transferred by the State Treasurer to
29 the Real Estate License Administration Fund, established in
30 Section 17 of the Real Estate License Act of 1999 1983. All
31 fees received under this Act on or after that date shall be
32 deposited into the Real Estate License Administration Fund.
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1 (Source: P.A. 89-508, eff. 7-3-96.)
2 Section 905-35. The Commercial Real Estate Broker Lien
3 Act is amended by changing Section 5 as follows:
4 (770 ILCS 15/5) (from Ch. 82, par. 655)
5 Sec. 5. Definitions. As used in this Act:
6 "Commercial real estate" means any real estate located in
7 Illinois other than (i) real estate containing one to 6
8 residential units, (ii) real estate on which no buildings or
9 structures are located, or (iii) real estate classified as
10 farmland for assessment purposes under the Property Tax Code.
11 Commercial real estate shall not include single family
12 residential units such as condominiums, townhouses, or homes
13 in a subdivision when sold, leased, or otherwise conveyed on
14 a unit by unit basis even though these units may be part of a
15 larger building or parcel of real estate containing more than
16 6 residential units.
17 "Real estate", "broker", and "employee" are defined as in
18 the Real Estate License Act of 1999 1983.
19 "Interest in commercial real estate" shall include,
20 without limitation, any interest in a land trust as defined
21 in Section 15-1205 of the Code of Civil Procedure.
22 (Source: P.A. 87-779; 88-354; 88-670, eff. 12-2-94.)
23 Section 905-40. The Illinois Business Brokers Act of
24 1995 is amended by changing Section 10-80 as follows:
25 (815 ILCS 307/10-80)
26 Sec. 10-80. Persons exempt from registration and other
27 duties under law; burden of proof thereof.
28 (a) The following persons are exempt from the
29 requirements of this Act:
30 (1) Any attorney who is licensed to practice in
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1 this State, while engaged in the practice of law and
2 whose service in relation to the business broker
3 transaction is incidental to the attorney's practice.
4 (2) Any person licensed as a real estate broker or
5 salesperson under the Illinois Real Estate License Act of
6 1999 1983 who is primarily engaged in business activities
7 for which a license is required under that Act and who,
8 on an incidental basis, acts as a business broker.
9 (3) Any dealer, salesperson, or investment adviser
10 registered pursuant to the Illinois Securities Law of
11 1953 or any investment adviser representative, or any
12 person who is regularly engaged in the business of
13 offering or selling securities in a transaction exempted
14 under subsection C, H, M, R, Q, or S of Section 4 of the
15 Illinois Securities Law of 1953 or subsection G of
16 Section 4 of the Illinois Securities Law of 1953 provided
17 that such person is registered pursuant to federal
18 securities law.
19 (4) An associated person described in subdivision
20 (h)(2) of Section 15 of the Federal 1934 Act.
21 (5) An investment adviser registered pursuant to
22 Section 203 of the Federal 1940 Investment Advisors Act.
23 (6) A person described in subdivision (a)(11) of
24 Section 202 of the Federal 1940 Investment Advisors Act.
25 (7) Any person who is selling a business owned or
26 operated (in whole or in part) by that person in a one
27 time transaction.
28 (b) This Act shall not be deemed to apply in any manner,
29 directly or indirectly, to: (i) a State bank or national
30 bank, as those terms are defined in the Illinois Banking Act,
31 or any subsidiary of a State bank or national bank; (ii) a
32 bank holding company, as that term is defined in the Illinois
33 Bank Holding Company Act of 1957, or any subsidiary of a bank
34 holding company; (iii) a foreign banking corporation, as that
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1 term is defined in the Foreign Banking Office Act, or any
2 subsidiary of a foreign banking corporation; (iv) a
3 representative office, as that term is defined in the
4 Foreign Bank Representative Office Act; (v) a corporate
5 fiduciary, as that term is defined in the Corporate Fiduciary
6 Act, or any subsidiary of a corporate fiduciary; (vi) a
7 savings bank organized under the Savings Bank Act, or a
8 federal savings bank organized under federal law, or any
9 subsidiary of a savings bank or federal savings bank; (vii) a
10 savings bank holding company organized under the Savings Bank
11 Act, or any subsidiary of a savings bank holding company;
12 (viii) an association or federal association, as those terms
13 are defined in the Illinois Savings and Loan Act of 1985, or
14 any subsidiary of an association or federal association; (ix)
15 a foreign savings and loan association or foreign savings
16 bank subject to the Illinois Savings and Loan Act of 1985, or
17 any subsidiary of a foreign savings and loan association or
18 foreign savings bank; or (x) a savings and loan association
19 holding company, as that term is defined in the Illinois
20 Savings and Loan Act of 1985, or any subsidiary of a savings
21 and loan association holding company.
22 (b-1) Persons registered under the Illinois Franchise
23 Disclosure Act of 1987 (and their employees) are exempt from
24 the requirements of this Act as to: offers and sales in
25 connection with franchising activities; or assisting any of
26 their franchisees in the offer or sale of a franchise by any
27 such franchisee for the franchisee's own account regardless
28 of whether the sale is effected by or through the registered
29 persons.
30 (b-2) Any certified public accountant licensed to
31 practice in Illinois, while engaged in the practice as a
32 certified public accountant and whose service in relation to
33 the business broker transaction is incidental to his or her
34 practice, is exempt from the requirements of this Act.
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1 (b-3) Any publisher, or regular employee of such
2 publisher, of a bona fide newspaper or news magazine of
3 regular and established paid circulation who, in the routine
4 course of selling advertising, advertises businesses for sale
5 and in which no other related services are provided is exempt
6 from the requirements of this Act.
7 (c) The burden of proof of any exemption or
8 classification provided in this Act shall be on the party
9 claiming the exemption or classification.
10 (Source: P.A. 89-209, eff. 1-1-96; 89-665, eff. 8-14-96;
11 90-70, eff. 7-8-97.)
12 Section 905-45. The Telephone Solicitations Act is
13 amended by changing Section 10 as follows:
14 (815 ILCS 413/10)
15 (Text of Section before amendment by P.A. 90-541)
16 Sec. 10. Jurisdiction. No person shall solicit the sale
17 of goods in this State except in accordance with this Act.
18 (Source: P.A. 88-288.)
19 (Text of Section after amendment by P.A. 90-541)
20 Sec. 10. Jurisdiction. No person shall solicit the sale
21 of goods or services in this State except in accordance with
22 this Act. The provisions of this Act shall not apply to
23 telecommunications carriers as defined in Article XIII of the
24 Public Utilities Act or to any bank, trust company, savings
25 and loan association, credit union, licensee under the
26 Consumer Installment Loan Act, licensed insurer, licensee
27 under the Real Estate License Act of 1999 1983, or any
28 affiliate, subsidiary, employee, or agent of any such
29 entities.
30 (Source: P.A. 90-541, eff. 6-1-98.)
31 ARTICLE 990. REPEALER
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1 (225 ILCS 455/Act rep.)
2 Section 990-90. The Real Estate License Act of 1983 is
3 repealed.
4 ARTICLE 995. NONACCELERATION
5 Section 995-95. No acceleration or delay. Where this
6 Act makes changes in a statute that is represented in this
7 Act by text that is not yet or no longer in effect (for
8 example, a Section represented by multiple versions), the use
9 of that text does not accelerate or delay the taking effect
10 of (i) the changes made by this Act or (ii) provisions
11 derived from any other Public Act.
12 ARTICLE 999. EFFECTIVE DATE
13 Section 999-99. Effective date. This Act takes effect
14 July 1, 1999.".