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Public Act 92-0217
HB2566 Enrolled LRB9205328LBcs
AN ACT concerning the regulation of professions.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Section 5.545 as follows:
(30 ILCS 105/5.545 new)
Sec. 5.545. The Real Estate Audit Fund.
Section 10. The Real Estate License Act of 2000 is
amended by changing Sections 1-10, 5-20, 10-10, and 20-60 and
by adding Sections 25-14 and 25-37 as follows:
(225 ILCS 454/1-10)
Sec. 1-10. Definitions. In this Act, unless the context
otherwise requires:
"Act" means the Real Estate License Act of 2000.
"Advisory Council" means the Real Estate Education
Advisory Council created under Section 30-10 of this Act.
"Agency" means a relationship in which a real estate
broker or licensee, whether directly or through an affiliated
licensee, represents a consumer by the consumer's consent,
whether express or implied, in a real property transaction.
"Applicant" means any person, as defined in this Section,
who applies to OBRE for a valid license as a real estate
broker, real estate salesperson, or leasing agent.
"Blind advertisement" means any real estate advertisement
that does not include the sponsoring broker's business name
and that is used by any licensee regarding the sale or lease
of real estate, including his or her own, licensed
activities, or the hiring of any licensee under this Act.
The broker's business name in the case of a franchise shall
include the franchise affiliation as well as the name of the
individual firm.
"Board" means the Real Estate Administration and
Disciplinary Board of OBRE.
"Branch office" means a sponsoring broker's office other
than the sponsoring broker's principal office.
"Broker" means an individual, partnership, limited
liability company, corporation, or registered limited
liability partnership other than a real estate salesperson or
leasing agent who for another and for compensation, or with
the intention or expectation of receiving compensation,
either directly or indirectly:
(1) Sells, exchanges, purchases, rents, or leases
real estate.
(2) Offers to sell, exchange, purchase, rent, or
lease real estate.
(3) Negotiates, offers, attempts, or agrees to
negotiate the sale, exchange, purchase, rental, or
leasing of real estate.
(4) Lists, offers, attempts, or agrees to list real
estate for sale, lease, or exchange.
(5) Buys, sells, offers to buy or sell, or
otherwise deals in options on real estate or improvements
thereon.
(6) Supervises the collection, offer, attempt, or
agreement to collect rent for the use of real estate.
(7) Advertises or represents himself or herself as
being engaged in the business of buying, selling,
exchanging, renting, or leasing real estate.
(8) Assists or directs in procuring or referring of
prospects, intended to result in the sale, exchange,
lease, or rental of real estate.
(9) Assists or directs in the negotiation of any
transaction intended to result in the sale, exchange,
lease, or rental of real estate.
(10) Opens real estate to the public for marketing
purposes.
(11) Sells, leases, or offers for sale or lease
real estate at auction.
"Brokerage agreement" means a written or oral agreement
between a sponsoring broker and a consumer for licensed
activities to be provided to a consumer in return for
compensation or the right to receive compensation from
another. Brokerage agreements may constitute either a
bilateral or a unilateral agreement between the broker and
the broker's client depending upon the content of the
brokerage agreement. All exclusive brokerage agreements
shall be in writing.
"Client" means a person who is being represented by a
licensee.
"Commissioner" means the Commissioner of Banks and Real
Estate or a person authorized by the Commissioner, the Office
of Banks and Real Estate Act, or this Act to act in the
Commissioner's stead.
"Compensation" means the valuable consideration given by
one person or entity to another person or entity in exchange
for the performance of some activity or service.
Compensation shall include the transfer of valuable
consideration, including without limitation the following:
(1) commissions;
(2) referral fees;
(3) bonuses;
(4) prizes;
(5) merchandise;
(6) finder fees;
(7) performance of services;
(8) coupons or gift certificates;
(9) discounts;
(10) rebates;
(11) a chance to win a raffle, drawing, lottery, or
similar game of chance not prohibited by any other law or
statute;
(12) retainer fee; or
(13) salary.
"Confidential information" means information obtained by
a licensee from a client during the term of a brokerage
agreement that (i) was made confidential by the written
request or written instruction of the client, (ii) deals with
the negotiating position of the client, or (iii) is
information the disclosure of which could materially harm the
negotiating position of the client, unless at any time:
(1) the client permits the disclosure of
information given by that client by word or conduct;
(2) the disclosure is required by law; or
(3) the information becomes public from a source
other than the licensee.
"Confidential information" shall not be considered to
include material information about the physical condition of
the property.
"Consumer" means a person or entity seeking or receiving
licensed activities.
"Continuing education school" means any person licensed
by OBRE as a school for continuing education in accordance
with Section 30-15 of this Act.
"Credit hour" means 50 minutes of classroom instruction
in course work that meets the requirements set forth in rules
adopted by OBRE.
"Customer" means a consumer who is not being represented
by the licensee but for whom the licensee is performing
ministerial acts.
"Designated agency" means a contractual relationship
between a sponsoring broker and a client under Section 15-50
of this Act in which one or more licensees associated with or
employed by the broker are designated as agent of the client.
"Designated agent" means a sponsored licensee named by a
sponsoring broker as the legal agent of a client, as provided
for in Section 15-50 of this Act.
"Director" means the Director of the Real Estate
Division, OBRE.
"Dual agency" means an agency relationship in which a
licensee is representing both buyer and seller or both
landlord and tenant in the same transaction. When the agency
relationship is a designated agency, the question of whether
there is a dual agency shall be determined by the agency
relationships of the designated agent of the parties and not
of the sponsoring broker.
"Employee" or other derivative of the word "employee",
when used to refer to, describe, or delineate the
relationship between a real estate broker and a real estate
salesperson, another real estate broker, or a leasing agent,
shall be construed to include an independent contractor
relationship, provided that a written agreement exists that
clearly establishes and states the relationship. All
responsibilities of a broker shall remain.
"Escrow moneys" means all moneys, promissory notes or any
other type or manner of legal tender or financial
consideration deposited with any person for the benefit of
the parties to the transaction. A transaction exists once an
agreement has been reached and an accepted real estate
contract signed or lease agreed to by the parties. Escrow
moneys includes without limitation earnest moneys and
security deposits, except those security deposits in which
the person holding the security deposit is also the sole
owner of the property being leased and for which the security
deposit is being held.
"Inoperative" means a status of licensure where the
licensee holds a current license under this Act, but the
licensee is prohibited from engaging in licensed activities
because the licensee is unsponsored or the license of the
sponsoring broker with whom the licensee is associated or by
whom he or she is employed is currently expired, revoked,
suspended, or otherwise rendered invalid under this Act.
"Leasing Agent" means a person who is employed by a real
estate broker to engage in licensed activities limited to
leasing residential real estate who has obtained a license as
provided for in Section 5-5 of this Act.
"License" means the document issued by OBRE certifying
that the person named thereon has fulfilled all requirements
prerequisite to licensure under this Act.
"Licensed activities" means those activities listed in
the definition of "broker" under this Section.
"Licensee" means any person, as defined in this Section,
who holds a valid unexpired license as a real estate broker,
real estate salesperson, or leasing agent.
"Listing presentation" means a communication between a
real estate broker or salesperson and a consumer in which the
licensee is attempting to secure a brokerage agreement with
the consumer to market the consumer's real estate for sale or
lease.
"Managing broker" means a broker who has supervisory
responsibilities for licensees in one or, in the case of a
multi-office company, more than one office and who has been
appointed as such by the sponsoring broker.
"Medium of advertising" means any method of communication
intended to influence the general public to use or purchase a
particular good or service or real estate.
"Ministerial acts" means those acts that a licensee may
perform for a consumer that are informative or clerical in
nature and do not rise to the level of active representation
on behalf of a consumer. Examples of these acts include
without limitation (i) responding to phone inquiries by
consumers as to the availability and pricing of brokerage
services, (ii) responding to phone inquiries from a consumer
concerning the price or location of property, (iii) attending
an open house and responding to questions about the property
from a consumer, (iv) setting an appointment to view
property, (v) responding to questions of consumers walking
into a licensee's office concerning brokerage services
offered or particular properties, (vi) accompanying an
appraiser, inspector, contractor, or similar third party on a
visit to a property, (vii) describing a property or the
property's condition in response to a consumer's inquiry,
(viii) completing business or factual information for a
consumer on an offer or contract to purchase on behalf of a
client, (ix) showing a client through a property being sold
by an owner on his or her own behalf, or (x) referral to
another broker or service provider.
"OBRE" means the Office of Banks and Real Estate.
"Office" means a real estate broker's place of business
where the general public is invited to transact business and
where records may be maintained and licenses displayed,
whether or not it is the broker's principal place of
business.
"Person" means and includes individuals, entities,
corporations, limited liability companies, registered limited
liability partnerships, and partnerships, foreign or
domestic, except that when the context otherwise requires,
the term may refer to a single individual or other described
entity.
"Personal assistant" means a licensed or unlicensed
person who has been hired for the purpose of aiding or
assisting a sponsored licensee in the performance of the
sponsored licensee's job.
"Pocket card" means the card issued by OBRE to signify
that the person named on the card is currently licensed under
this Act.
"Pre-license school" means a school licensed by OBRE
offering courses in subjects related to real estate
transactions, including the subjects upon which an applicant
is examined in determining fitness to receive a license.
"Pre-renewal period" means the period between the date of
issue of a currently valid license and the license's
expiration date.
"Real estate" means and includes leaseholds as well as
any other interest or estate in land, whether corporeal,
incorporeal, freehold, or non-freehold, including timeshare
interests, and whether the real estate is situated in this
State or elsewhere.
"Real Estate Administration and Disciplinary Board" or
"Board" means the Real Estate Administration and Disciplinary
Board created by Section 25-10 of this Act.
"Salesperson" means any individual, other than a real
estate broker or leasing agent, who is employed by a real
estate broker or is associated by written agreement with a
real estate broker as an independent contractor and
participates in any activity described in the definition of
"broker" under this Section.
"Sponsoring broker" means the broker who has issued a
sponsor card to a licensed salesperson, another licensed
broker, or a leasing agent.
"Sponsor card" means the temporary permit issued by the
sponsoring real estate broker certifying that the real estate
broker, real estate salesperson, or leasing agent named
thereon is employed by or associated by written agreement
with the sponsoring real estate broker, as provided for in
Section 5-40 of this Act.
(Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00;
91-603, eff. 1-1-00; 91-702, eff. 5-12-00.)
(225 ILCS 454/5-20)
Sec. 5-20. Exemptions from broker, salesperson, or
leasing agent license requirement. The requirement for
holding a license under this Article 5 shall not apply to:
(1) Any person, partnership, or corporation that as
owner or lessor performs any of the acts described in the
definition of "broker" under Section 1-10 of this Act with
reference to property owned or leased by it, or to the
regular employees thereof with respect to the property so
owned or leased, where such acts are performed in the regular
course of or as an incident to the management, sale, or other
disposition of such property and the investment therein,
provided that such regular employees do not perform any of
the acts described in the definition of "broker" under
Section 1-10 of this Act in connection with a vocation of
selling or leasing any real estate or the improvements
thereon not so owned or leased.
(2) An attorney in fact acting under a duly executed and
recorded power of attorney to convey real estate from the
owner or lessor or the services rendered by an attorney at
law in the performance of the attorney's duty as an attorney
at law.
(3) Any person acting as receiver, trustee in
bankruptcy, administrator, executor, or guardian or while
acting under a court order or under the authority of a will
or testamentary trust.
(4) Any person acting as a resident manager for the
owner or any employee acting as the resident manager for a
broker managing an apartment building, duplex, or apartment
complex, when the resident manager resides on the premises,
the premises is his or her primary residence, and the
resident manager is engaged in the leasing of the property of
which he or she is the resident manager.
(5) Any officer or employee of a federal agency in the
conduct of official duties.
(6) Any officer or employee of the State government or
any political subdivision thereof performing official duties.
(7) Any multiple listing service or other information
exchange that is engaged in the collection and dissemination
of information concerning real estate available for sale,
purchase, lease, or exchange along with which no other
licensed activities are provided.
(8) Railroads and other public utilities regulated by
the State of Illinois, or the officers or full time employees
thereof, unless the performance of any licensed activities is
in connection with the sale, purchase, lease, or other
disposition of real estate or investment therein not needing
the approval of the appropriate State regulatory authority.
(9) Any medium of advertising in the routine course of
selling or publishing advertising along with which no other
licensed activities are provided.
(10) Any resident lessee of a residential dwelling unit
who refers for compensation to the owner of the dwelling
unit, or to the owner's agent, prospective lessees of
dwelling units in the same building or complex as the
resident lessee's unit, but only if the resident lessee (i)
refers no more than 3 prospective lessees in any 12-month
period, (ii) receives compensation of no more than $1,000 or
the equivalent of one month's rent, whichever is less, in any
12-month period, and (iii) limits his or her activities to
referring prospective lessees to the owner, or the owner's
agent, and does not show a residential dwelling unit to a
prospective lessee, discuss terms or conditions of leasing a
dwelling unit with a prospective lessee, or otherwise
participate in the negotiation of the leasing of a dwelling
unit.
(11) An exchange company registered under the Real
Estate Timeshare Act of 1999 and the regular employees of
that registered exchange company but only when conducting an
exchange program as defined in that Act.
(12) An existing timeshare owner who, for compensation,
refers prospective purchasers, but only if the existing
timeshare owner (i) refers no more than 20 prospective
purchasers in any calendar year, (ii) receives no more than
$1,000, or its equivalent, for referrals in any calendar year
and (iii) limits his or her activities to referring
prospective purchasers of timeshare interests to the
developer or the developer's employees or agents, and does
not show, discuss terms or conditions of purchase or
otherwise participate in negotiations with regard to
timeshare interests.
(13) (11) Any person who is licensed without examination
under Section 10-25 of the Auction License Act is exempt from
holding a broker's or salesperson's license under this Act
for the limited purpose of selling or leasing real estate at
auction, so long as:
(A) that person has made application for said
exemption by July 1, 2000;
(B) that person verifies to OBRE that he or
she has sold real estate at auction for a period of
5 years prior to licensure as an auctioneer;
(C) the person has had no lapse in his or her
license as an auctioneer; and
(D) the license issued under the Auction
License Act has not been disciplined for violation
of those provisions of Article 20 of the Auction
License Act dealing with or related to the sale or
lease of real estate at auction.
(14) A hotel operator who is registered with the
Illinois Department of Revenue and pays taxes under the Hotel
Operators' Occupation Tax Act and rents a room or rooms in a
hotel as defined in the Hotel Operators' Occupation Tax Act
for a period of not more than 30 consecutive days and not
more than 60 days in a calendar year.
(Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00;
91-603, eff. 1-1-00; revised 10-27-99.)
(225 ILCS 454/10-10)
Sec. 10-10. Disclosure of compensation.
(a) A licensee must disclose to a client the sponsoring
broker's compensation and policy with regard to cooperating
with brokers who represent other parties in a transaction.
(b) A licensee must disclose to a client all sources of
compensation related to the transaction received by the
licensee from a third party.
(c) If a licensee refers a client to a third party in
which the licensee has greater than a 1% ownership interest
or from which the licensee receives or may receive dividends
or other profit sharing distributions, other than a publicly
held or traded company, for the purpose of the client
obtaining services related to the transaction, then the
licensee shall disclose that fact to the client at the time
of making the referral.
(d) If in any one transaction a sponsoring broker
receives compensation from both the buyer and seller or
lessee and lessor of real estate, the sponsoring broker shall
disclose in writing to a client the fact that the
compensation is being paid by both buyer and seller or lessee
and lessor.
(e) Nothing in the Act shall prohibit the cooperation
with or a payment of compensation to a person not domiciled
in this State or country who is licensed as a real estate
broker in his or her state or country of domicile or to a
resident of a country that does not require a person to be
licensed to act as a real estate broker if the person
complies with the laws of the country in which that person
resides and practices there as a real estate broker.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/20-60)
Sec. 20-60. Hearing; investigation; notice; disciplinary
consent order.
(a) OBRE may conduct hearings through the Board or a
duly appointed hearing officer on proceedings to suspend,
revoke, or to refuse to issue or renew licenses of persons
applying for licensure or licensed under this Act or to
censure, reprimand, or impose a civil fine not to exceed
$25,000 upon any licensee hereunder and may revoke, suspend,
or refuse to issue or renew these licenses or censure,
reprimand, or impose a civil fine not to exceed $25,000 upon
any licensee hereunder.
(b) Upon the motion of either OBRE or the Board or upon
the verified complaint in writing of any persons setting
forth facts that if proven would constitute grounds for
suspension or revocation under this Act, OBRE, the Board, or
its subcommittee shall cause to be investigated the actions
of any person so accused who holds a license or is holding
himself or herself out to be a licensee. This person is
hereinafter called the accused.
(c) Prior to initiating any formal disciplinary
proceedings resulting from an investigation conducted
pursuant to subsection (b) of this Section, that matter shall
be reviewed by a subcommittee of the Board according to
procedures established by rule. The subcommittee shall make a
recommendation to the full Board as to the validity of the
complaint and may recommend that the Board not proceed with
formal disciplinary proceedings if the complaint is
determined to be frivolous or without merit.
(d) Except as provided for in Section 20-65 of this Act,
OBRE shall, before suspending, revoking, placing on
probationary status, or taking any other disciplinary action
as OBRE may deem proper with regard to any license:
(1) notify the accused in writing at least 30 days
prior to the date set for the hearing of any charges made
and the time and place for the hearing of the charges to
be heard before the Board under oath; and
(2) inform the accused that upon failure to file an
answer and request a hearing before the date originally
set for the hearing, default will be taken against the
accused and his or her license may be suspended, revoked,
or placed on probationary status, or other disciplinary
action, including limiting the scope, nature, or extent
of the accused's practice, as OBRE may deem proper, may
be taken with regard thereto.
In case the person fails to file an answer after
receiving notice, his or her license may, in the discretion
of OBRE, be suspended, revoked, or placed on probationary
status, or OBRE may take whatever disciplinary action deemed
proper, including limiting the scope, nature, or extent of
the person's practice or the imposition of a fine, without a
hearing, if the act or acts charged constitute sufficient
grounds for such action under this Act.
(e) At the time and place fixed in the notice, the Board
shall proceed to hearing of the charges and both the accused
person and the complainant shall be accorded ample
opportunity to present in person or by counsel such
statements, testimony, evidence and argument as may be
pertinent to the charges or to any defense thereto. The
Board or its hearing officer may continue a hearing date upon
its own motion or upon an accused's motion for one period not
to exceed 30 days. The Board or its hearing officer may
grant further continuances for periods not to exceed 30 days
only upon good cause being shown by the moving party. The
non-moving party shall have the opportunity to object to a
continuance on the record at a hearing upon the motion to
continue. All motions for continuances and any denial or
grant thereof shall be in writing. All motions shall be
submitted not later than 48 hours before the scheduled
hearing unless made upon an emergency basis. In determining
whether good cause for a continuance is shown, the Board or
its hearing officer shall consider such factors as the volume
of cases pending, the nature and complexity of legal issues
raised, the diligence of the party making the request, the
availability of party's legal representative or witnesses,
and the number of previous requests for continuance.
(f) Any unlawful act or violation of any of the
provisions of this Act upon the part of any licensees
employed by a real estate broker or associated by written
agreement with the real estate broker, or unlicensed employee
of a licensed broker, shall not be cause for the revocation
of the license of any such broker, partial or otherwise,
unless it appears to the satisfaction of OBRE that the broker
had knowledge thereof.
(g) OBRE or the Board has power to subpoena any persons
or documents for the purpose of investigation or hearing with
the same fees and mileage and in the same manner as
prescribed by law for judicial procedure in civil cases in
courts of this State. The Commissioner, the Director, any
member of the Board, a certified court reporter, or a hearing
officer shall each have power to administer oaths to
witnesses at any hearing which OBRE is authorized under this
Act to conduct.
(h) Any circuit court or any judge thereof, upon the
application of the accused person, complainant, OBRE, or the
Board, may, by order entered, require the attendance of
witnesses and the production of relevant books and papers
before the Board in any hearing relative to the application
for or refusal, recall, suspension, or revocation of a
license, and the court or judge may compel obedience to the
court's or the judge's order by proceedings for contempt.
(i) OBRE, at its expense, shall preserve a record of all
proceedings at the formal hearing of any case involving the
refusal to issue or the revocation, suspension, or other
discipline of a licensee. The notice of hearing, complaint
and all other documents in the nature of pleadings and
written motions filed in the proceedings, the transcript of
testimony, the report of the Board, and the orders of OBRE
shall be the record of the proceeding. At all hearings or
pre-hearing conferences, OBRE and the accused shall be
entitled to have a court reporter in attendance for purposes
of transcribing the proceeding or pre-hearing conference at
the expense of the party requesting the court reporter's
attendance. A copy of the transcribed proceeding shall be
available to the other party for the cost of a copy of the
transcript.
(j) The Board shall present to the Commissioner its
written report of its findings and recommendations. A copy
of the report shall be served upon the accused, either
personally or by certified mail as provided in this Act for
the service of the citation. Within 20 days after the
service, the accused may present to the Commissioner a motion
in writing for a rehearing that shall specify the particular
grounds therefor. If the accused shall order and pay for a
transcript of the record as provided in this Act, the time
elapsing thereafter and before the transcript is ready for
delivery to the accused shall not be counted as part of the
20 days. Whenever the Commissioner is satisfied that
substantial justice has not been done, the Commissioner may
order a rehearing by the Board or other special committee
appointed by the Commissioner or may remand the matter to the
Board for their reconsideration of the matter based on the
pleadings and evidence presented to the Board. In all
instances, under this Act, in which the Board has rendered a
recommendation to the Commissioner with respect to a
particular licensee or applicant, the Commissioner shall, in
the event that he or she disagrees with or takes action
contrary to the recommendation of the Board, file with the
Board and the Secretary of State his specific written reasons
of disagreement with the Board. The reasons shall be filed
within 60 days of the Board's recommendation to the
Commissioner and prior to any contrary action. At the
expiration of the time specified for filing a motion for a
rehearing, the Commissioner shall have the right to take the
action recommended by the Board. Upon the suspension or
revocation of a license, the licensee shall be required to
surrender his or her license to OBRE, and upon failure or
refusal to do so, OBRE shall have the right to seize the
license.
(k) At any time after the suspension, temporary
suspension, or revocation of any license, OBRE may restore it
to the accused without examination, upon the written
recommendation of the Board.
(l) An order of revocation or suspension or a certified
copy thereof, over the seal of OBRE and purporting to be
signed by the Commissioner, shall be prima facie proof that:
(1) The signature is the genuine signature of the
Commissioner.
(2) The Commissioner is duly appointed and
qualified.
(3) The Board and the members thereof are
qualified.
Such proof may be rebutted.
(m) Notwithstanding any provisions concerning the
conduct of hearings and recommendations for disciplinary
actions, OBRE as directed by the Commissioner has the
authority to negotiate agreements with licensees and
applicants resulting in disciplinary consent orders. These
consent orders may provide for any of the forms of discipline
provided in this Act. These consent orders shall provide
that they were not entered into as a result of any coercion
by OBRE. Any such consent order shall be filed with the
Commissioner along with the Board's recommendation and
accepted or rejected by the Commissioner within 60 days of
the Board's recommendation.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/25-14 new)
Sec. 25-14. Reliance on advisory letters. Licensees or
their representatives may seek an advisory letter from OBRE
as to matters arising under this Act or the rules promulgated
pursuant to this Act. OBRE shall promulgate rules as to the
process of seeking and obtaining an advisory letter and
topics and areas on which advisory rules will be issued by
OBRE. A licensee is entitled to rely upon an advisory letter
from OBRE and will not be disciplined by OBRE for actions
taken in reliance on the advisory letter.
(225 ILCS 454/25-37 new)
Sec. 25-37. Real Estate Audit Fund; audit of special
accounts; audit of fund.
(a) A special fund to be known as the Real Estate Audit
Fund is created in the State Treasury. The State Treasurer
shall cause a transfer of $200,000 from the Real Estate
License Administration Fund to the Real Estate Audit Fund on
January 1, 2002. If, at any time, the balance in the Real
Estate Audit Fund is less than $25,000, the State Treasurer
shall cause a transfer of $200,000 from the Real Estate
License Administration Fund to the Real Estate Audit Fund.
The moneys held in the Real Estate Audit Fund shall be used
exclusively by OBRE to conduct audits of special accounts of
moneys belonging to others held by a broker.
(b) Upon receipt of a complaint or evidence by OBRE
sufficient to cause OBRE to reasonably believe that funds
required to be maintained in a special account by a broker
have been misappropriated, the broker shall, within 30 days
of written notice, submit to an audit of all special
accounts. Such audit shall be performed by a licensed
certified public accountant, shall result in a written report
by the accountant, and shall specifically refer to the escrow
and record-keeping requirements of this Act and the rules
adopted under this Act. If it is found, pursuant to an order
issued by the Commissioner, that moneys required to be
maintained in a special account by a broker were
misappropriated, as further defined by rule, the broker shall
reimburse OBRE, in addition to any other discipline or civil
penalty imposed, for the cost of the audit performed pursuant
to this Section. OBRE may file in circuit court for a
judgment to enforce the collection of the reimbursement of
the cost of such audit. Any reimbursement collected by OBRE
shall be deposited into the Real Estate Audit Fund.
(c) Moneys in the Real Estate Audit Fund may be invested
and reinvested in the same manner as funds in the Real Estate
Recovery Fund. All earnings received from such investment
shall be deposited in the Real Estate Audit Fund and may be
used for the same purpose as other moneys deposited in the
Real Estate Audit Fund. Upon completion of any audit of
OBRE, prescribed by the Illinois State Auditing Act, which
includes an audit of the Real Estate Audit Fund, OBRE shall
make the audit open to inspection by any interested person.
(225 ILCS 454/20-70 rep.)
Section 15. The Real Estate License Act of 2000 is
amended by repealing Section 20-70.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 10, 2001.
Approved August 02, 2001.
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