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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_SB0239eng SB239 Engrossed LRB9102225ACtm 1 AN ACT to amend the Real Estate License Act of 2000 by 2 changing Sections 1-10 and 5-60. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Real Estate License Act of 2000 is 6 amended by changing Sections 1-10 and 5-60 as follows: 7 (225 ILCS 454/1-10) 8 Sec. 1-10. Definitions. In this Act, unless the context 9 otherwise requires: 10 "Act" means the Real Estate License Act of 20001999. 11 "Advisory Council" means the Real Estate Education 12 Advisory Council created under Section 30-10 of this Act. 13 "Agency" means a relationship in which a real estate 14 broker or licensee, whether directly or through an affiliated 15 licensee, represents a consumer by the consumer's consent, 16 whether express or implied, in a real property transaction. 17 "Applicant" means any person, as defined in this Section, 18 who applies to OBRE for a valid license as a real estate 19 broker, real estate salesperson, or leasing agent. 20 "Blind advertisement" means any real estate advertisement 21 that does not include the sponsoring broker's business name 22 and that is used by any licensee regarding the sale or lease 23 of real estate, including his or her own, licensed 24 activities, or the hiring of any licensee under this Act. 25 The broker's business name in the case of a franchise shall 26 include the franchise affiliation as well as the name of the 27 individual firm. 28 "Board" means the Real Estate Administration and 29 Disciplinary Board of OBRE. 30 "Branch office" means a sponsoring broker's office other 31 than the sponsoring broker's principal office. SB239 Engrossed -2- LRB9102225ACtm 1 "Broker" means an individual, partnership, limited 2 liability company, corporation, or registered limited 3 liability partnership other than a real estate salesperson or 4 leasing agent who for another and for compensation either 5 directly or indirectly: 6 (1) Sells, exchanges, purchases, rents, or leases 7 real estate. 8 (2) Offers to sell, exchange, purchase, rent, or 9 lease real estate. 10 (3) Negotiates, offers, attempts, or agrees to 11 negotiate the sale, exchange, purchase, rental, or 12 leasing of real estate. 13 (4) Lists, offers, attempts, or agrees to list real 14 estate for sale, lease, or exchange. 15 (5) Buys, sells, offers to buy or sell, or 16 otherwise deals in options on real estate or improvements 17 thereon. 18 (6) Supervises the collection, offer, attempt, or 19 agreement to collect rent for the use of real estate. 20 (7) Advertises or represents himself or herself as 21 being engaged in the business of buying, selling, 22 exchanging, renting, or leasing real estate. 23 (8) Assists or directs in procuring or referring of 24 prospects, intended to result in the sale, exchange, 25 lease, or rental of real estate. 26 (9) Assists or directs in the negotiation of any 27 transaction intended to result in the sale, exchange, 28 lease, or rental of real estate. 29 (10) Opens real estate to the public for marketing 30 purposes. 31 (11) Sells, leases, or offers for sale or lease 32 real estate at auction. 33 "Brokerage agreement" means a written or oral agreement 34 between a sponsoring broker and a consumer for licensed SB239 Engrossed -3- LRB9102225ACtm 1 activities to be provided to a consumer in return for 2 compensation or the right to receive compensation from 3 another. Brokerage agreements may constitute either a 4 bilateral or a unilateral agreement between the broker and 5 the broker's client depending upon the content of the 6 brokerage agreement. All exclusive brokerage agreements 7 shall be in writing. 8 "Client" means a person who is being represented by a 9 licensee. 10 "Commissioner" means the Commissioner of Banks and Real 11 Estate or a person authorized by the Commissioner, the Office 12 of Banks and Real Estate Act, or this Act to act in the 13 Commissioner's stead. 14 "Compensation" means the valuable consideration given by 15 one person or entity to another person or entity in exchange 16 for the performance of some activity or service. 17 Compensation shall include the transfer of valuable 18 consideration, including without limitation the following: 19 (1) commissions; 20 (2) referral fees; 21 (3) bonuses; 22 (4) prizes; 23 (5) merchandise; 24 (6) finder fees; 25 (7) performance of services; 26 (8) coupons or gift certificates; 27 (9) discounts; 28 (10) rebates; 29 (11) a chance to win a raffle, drawing, lottery, or 30 similar game of chance not prohibited by any other law or 31 statute; 32 (12) retainer fee; or 33 (13) salary. 34 "Confidential information" means information obtained by SB239 Engrossed -4- LRB9102225ACtm 1 a licensee from a client during the term of a brokerage 2 agreement that (i) was made confidential by the written 3 request or written instruction of the client, (ii) deals with 4 the negotiating position of the client, or (iii) is 5 information the disclosure of which could materially harm the 6 negotiating position of the client, unless at any time: 7 (1) the client permits the disclosure of 8 information given by that client by word or conduct; 9 (2) the disclosure is required by law; or 10 (3) the information becomes public from a source 11 other than the licensee. 12 "Confidential information" shall not be considered to 13 include material information about the physical condition of 14 the property. 15 "Consumer" means a person or entity seeking or receiving 16 licensed activities. 17 "Continuing education school" means any person licensed 18 by OBRE as a school for continuing education in accordance 19 with Section 30-15 of this Act. 20 "Credit hour" means 50 minutes of classroom instruction 21 in course work that meets the requirements set forth in rules 22 adopted by OBRE. 23 "Customer" means a consumer who is not being represented 24 by the licensee but for whom the licensee is performing 25 ministerial acts. 26 "Designated agency" means a contractual relationship 27 between a sponsoring broker and a client under Section 15-50 28 of this Act in which one or more licensees associated with or 29 employed by the broker are designated as agent of the client. 30 "Designated agent" means a sponsored licensee named by a 31 sponsoring broker as the legal agent of a client, as provided 32 for in Section 15-50 of this Act. 33 "Director" means the Director of the Real Estate 34 Division, OBRE. SB239 Engrossed -5- LRB9102225ACtm 1 "Dual agency" means an agency relationship in which a 2 licensee is representing both buyer and seller or both 3 landlord and tenant in the same transaction. When the agency 4 relationship is a designated agency, the question of whether 5 there is a dual agency shall be determined by the agency 6 relationships of the designated agent of the parties and not 7 of the sponsoring broker. 8 "Employee" or other derivative of the word "employee", 9 when used to refer to, describe, or delineate the 10 relationship between a real estate broker and a real estate 11 salesperson, another real estate broker, or a leasing agent, 12 shall be construed to include an independent contractor 13 relationship, provided that a written agreement exists that 14 clearly establishes and states the relationship. All 15 responsibilities of a broker shall remain. 16 "Escrow moneys" means all moneys, promissory notes or any 17 other type or manner of legal tender or financial 18 consideration deposited with any person for the benefit of 19 the parties to the transaction. A transaction exists once an 20 agreement has been reached and an accepted real estate 21 contract signed or lease agreed to by the parties. Escrow 22 moneys includes without limitation earnest moneys and 23 security deposits, except those security deposits in which 24 the person holding the security deposit is also the sole 25 owner of the property being leased and for which the security 26 deposit is being held. 27 "Inoperative" means a status of licensure where the 28 licensee holds a current license under this Act, but the 29 licensee is prohibited from engaging in licensed activities 30 because the licensee is unsponsored or the license of the 31 sponsoring broker with whom the licensee is associated or by 32 whom he or she is employed is currently expired, revoked, 33 suspended, or otherwise rendered invalid under this Act. 34 "Leasing Agent" means a person who is employed by a real SB239 Engrossed -6- LRB9102225ACtm 1 estate broker to engage in licensed activities limited to 2 leasing residential real estate who has obtained a license as 3 provided for in Section 5-5 of this Act. 4 "License" means the document issued by OBRE certifying 5 that the person named thereon has fulfilled all requirements 6 prerequisite to licensure under this Act. 7 "Licensed activities" means those activities listed in 8 the definition of "broker" under this Section. 9 "Licensee" means any person, as defined in this Section, 10 who holds a valid unexpired license as a real estate broker, 11 real estate salesperson, or leasing agent. 12 "Listing presentation" means a communication between a 13 real estate broker or salesperson and a consumer in which the 14 licensee is attempting to secure a brokerage agreement with 15 the consumer to market the consumer's real estate for sale or 16 lease. 17 "Managing broker" means a broker who has supervisory 18 responsibilities for licensees in one or, in the case of a 19 multi-office company, more than one office and who has been 20 appointed as such by the sponsoring brokerof the real estate21firm. 22 "Medium of advertising" means any method of communication 23 intended to influence the general public to use or purchase a 24 particular good or service or real estate. 25 "Ministerial acts" means those acts that a licensee may 26 perform for a consumer that are informative or clerical in 27 nature and do not rise to the level of active representation 28 on behalf of a consumer. Examples of these acts include 29 without limitation (i) responding to phone inquiries by 30 consumers as to the availability and pricing of brokerage 31 services, (ii) responding to phone inquiries from a consumer 32 concerning the price or location of property, (iii) attending 33 an open house and responding to questions about the property 34 from a consumer, (iv) setting an appointment to view SB239 Engrossed -7- LRB9102225ACtm 1 property, (v) responding to questions of consumers walking 2 into a licensee's office concerning brokerage services 3 offered or particular properties, (vi) accompanying an 4 appraiser, inspector, contractor, or similar third party on a 5 visit to a property, (vii) describing a property or the 6 property's condition in response to a consumer's inquiry, 7 (viii) completing business or factual information for a 8 consumer on an offer or contract to purchase on behalf of a 9 client, (ix) showing a client through a property being sold 10 by an owner on his or her own behalf, or (x) referral to 11 another broker or service provider. 12 "OBRE" means the Office of Banks and Real Estate. 13 "Office" means a real estate broker's place of business 14 where the general public is invited to transact business and 15 where records may be maintained and licenses displayed, 16 whether or not it is the broker's principal place of 17 business. 18 "Person" means and includes individuals, entities, 19 corporations, limited liability companies, registered limited 20 liability partnerships, and partnerships, foreign or 21 domestic, except that when the context otherwise requires, 22 the term may refer to a single individual or other described 23 entity. 24 "Personal assistant" means a licensed or unlicensed 25 person who has been hired for the purpose of aiding or 26 assisting a sponsored licensee in the performance of the 27 sponsored licensee's job. 28 "Pocket card" means the card issued by OBRE to signify 29 that the person named on the card is currently licensed under 30 this Act. 31 "Pre-license school" means a school licensed by OBRE 32 offering courses in subjects related to real estate 33 transactions, including the subjects upon which an applicant 34 is examined in determining fitness to receive a license. SB239 Engrossed -8- LRB9102225ACtm 1 "Pre-renewal period" means the period between the date of 2 issue of a currently valid license and the license's 3 expiration date. 4 "Real estate" means and includes leaseholds as well as 5 any other interest or estate in land, whether corporeal, 6 incorporeal, freehold, or non-freehold, including timeshare 7 interests, and whether the real estate is situated in this 8 State or elsewhere. 9 "Real Estate Administration and Disciplinary Board" or 10 "Board" means the Real Estate Administration and Disciplinary 11 Board created by Section 25-10 of this Act. 12 "Salesperson" means any individual, other than a real 13 estate broker or leasing agent, who is employed by a real 14 estate broker or is associated by written agreement with a 15 real estate broker as an independent contractor and 16 participates in any activity described in the definition of 17 "broker" under this Section. 18 "Sponsoring broker" means the broker who has issued a 19 sponsor card to a licensed salesperson, another licensed 20 broker, or a leasing agent. 21 "Sponsor card" means the temporary permit issued by the 22 sponsoring real estate broker certifying that the real estate 23 broker, real estate salesperson, or leasing agent named 24 thereon is employed by or associated by written agreement 25 with the sponsoring real estate broker, as provided for in 26 Section 5-40 of this Act. 27 (Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00; 28 91-603, eff. 1-1-00; revised 10-27-99.) 29 (225 ILCS 454/5-60) 30 Sec. 5-60. Broker licensed in another state; nonresident 31 salesperson; reciprocal agreements; agent for service of 32 process. 33 (a) A broker's license may be issued by OBRE to a broker SB239 Engrossed -9- LRB9102225ACtm 1 licensed under the laws of another state of the United 2 States, under the following conditions: 3 (1) the broker holds a broker's license in his or 4 her state of domicile; 5 (2) the standards for that state for licensing as a 6 broker are substantially equivalent to or greater than 7 the minimum standards in the State of Illinois; 8 (3) the broker has been actively practicing as a 9 broker in the broker's state of domicile for a period of 10 not less than 2 years, immediately prior to the date of 11 application; 12 (4) the broker furnishes OBRE with a statement 13 under seal of the proper licensing authority of the state 14 in which the broker is licensed showing that the broker 15 has an active broker's license, that the broker is in 16 good standing, and that no complaints are pending against 17 the broker in that state;and18 (5) the broker completes a course of education and 19 passes a test on Illinois specific real estate brokerage 20 laws; and.21 (6) OBRE has a reciprocal agreement with that state 22 that includes the provisions of this Section. 23 (b) A nonresident salesperson employed by or associated 24 with a nonresident broker holding a broker's license in this 25 State pursuant to this Section may, in the discretion of 26 OBRE, be issued a nonresident salesperson's license under the 27 nonresident broker provided all of the following conditions 28 are met: 29 (1) the salesperson maintains an active license in 30 the state in which he or she is domiciled; 31 (2) the salesperson is domiciled in the same state 32 as the broker with whom he or she is associated;and33 (3) the salesperson completes a course of education 34 and passes a test on Illinois specific real estate SB239 Engrossed -10- LRB9102225ACtm 1 brokerage laws; and.2 (4) OBRE has a reciprocal agreement with that state 3 that includes the provisions of this Section. 4 The nonresident broker with whom the salesperson is 5 associated shall comply with the provisions of this Act and 6 issue the salesperson a sponsor card upon the form provided 7 by OBRE. 8 (c) As a condition precedent to the issuance of a 9 license to a nonresident broker or salesperson, the broker or 10 salesperson shall agree in writing to abide by all the 11 provisions of this Act with respect to his or her real estate 12 activities within the State of Illinois and submit to the 13 jurisdiction of OBRE as provided in this Act. The agreement 14 shall be filed with OBRE and shall remain in force for so 15 long as the nonresident broker or salesperson is licensed by 16 this State and thereafter with respect to acts or omissions 17 committed while licensed as a broker or salesperson in this 18 State. 19 (d) Prior to the issuance of any license to any 20 nonresident, verification of active licensure issued for the 21 conduct of such business in any other state must be filed 22 with OBRE by the nonresident, and the same fees must be paid 23 as provided in this Act for the obtaining of a broker's or 24 salesperson's license in this State. 25 (e) Licenses previously granted under reciprocal 26 agreements with other states shall remain in force so long as 27 OBRE has a reciprocal agreement with the state that includes 28 the requirements of this Section, unless that license is 29 suspended, revoked, or terminated by OBRE for any reason 30 provided for suspension, revocation, or termination of a 31 resident licensee's license. Licenses granted under 32 reciprocal agreements may be renewed in the same manner as a 33 resident's license. 34 (f) Prior to the issuance of a license to a nonresident SB239 Engrossed -11- LRB9102225ACtm 1 broker or salesperson, the broker or salesperson shall file 2 with OBRE a designation in writing that appoints the 3 Commissioner to act as his or her agent upon whom all 4 judicial and other process or legal notices directed to the 5 broker or salesperson may be served. Service upon the agent 6 so designated shall be equivalent to personal service upon 7 the licensee. Copies of the appointment, certified by the 8 Commissioner, shall be deemed sufficient evidence thereof and 9 shall be admitted in evidence with the same force and effect 10 as the original thereof might be admitted. In the written 11 designation, the broker or salesperson shall agree that any 12 lawful process against the licensee that is served upon the 13 agent shall be of the same legal force and validity as if 14 served upon the licensee and that the authority shall 15 continue in force so long as any liability remains 16 outstanding in this State. Upon the receipt of any process 17 or notice, the Commissioner shall forthwith mail a copy of 18 the same by certified mail to the last known business address 19 of the licensee. 20 (g) Any person holding a valid license under this 21 Section shall be eligible to obtain a resident broker's or 22 salesperson's license without examination should that person 23 change their state of domicile to Illinois and that person 24 otherwise meets the qualifications or licensure under this 25 Act. 26 (Source: P.A. 91-245, eff. 12-31-99.) 27 Section 99. Effective date. This Act takes effect 28 December 31, 1999.