IL
Illinois Senate Bill SB3740

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3740 Compare Versions

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1-Public Act 103-1039
21 SB3740 EnrolledLRB103 36856 RTM 66968 b SB3740 Enrolled LRB103 36856 RTM 66968 b
32 SB3740 Enrolled LRB103 36856 RTM 66968 b
4-AN ACT concerning regulation.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The State Finance Act is amended by adding
8-Section 5.1015 as follows:
9-(30 ILCS 105/5.1015 new)
10-Sec. 5.1015. The Real Estate Recovery Fund.
11-Section 10. The Real Estate License Act of 2000 is amended
12-by changing Sections 1-10, 5-20, 5-25, 5-28, 5-35, 5-45, 5-60,
13-5-70, 10-10, 10-20, 15-35, 15-50, 20-20, 20-20.1, 20-50,
14-20-82, 25-25, 25-30, 25-35, 30-5, 30-15, and 30-25 and by
15-adding Sections 5-60.1 and 5-60.5 as follows:
16-(225 ILCS 454/1-10)
17-(Section scheduled to be repealed on January 1, 2030)
18-Sec. 1-10. Definitions. In this Act, unless the context
19-otherwise requires:
20-"Act" means the Real Estate License Act of 2000.
21-"Address of record" means the designated address recorded
22-by the Department in the applicant's or licensee's application
23-file or license file as maintained by the Department.
24-"Agency" means a relationship in which a broker or
3+1 AN ACT concerning regulation.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The State Finance Act is amended by adding
7+5 Section 5.1015 as follows:
8+6 (30 ILCS 105/5.1015 new)
9+7 Sec. 5.1015. The Real Estate Recovery Fund.
10+8 Section 10. The Real Estate License Act of 2000 is amended
11+9 by changing Sections 1-10, 5-20, 5-25, 5-28, 5-35, 5-45, 5-60,
12+10 5-70, 10-10, 10-20, 15-35, 15-50, 20-20, 20-20.1, 20-50,
13+11 20-82, 25-25, 25-30, 25-35, 30-5, 30-15, and 30-25 and by
14+12 adding Sections 5-60.1 and 5-60.5 as follows:
15+13 (225 ILCS 454/1-10)
16+14 (Section scheduled to be repealed on January 1, 2030)
17+15 Sec. 1-10. Definitions. In this Act, unless the context
18+16 otherwise requires:
19+17 "Act" means the Real Estate License Act of 2000.
20+18 "Address of record" means the designated address recorded
21+19 by the Department in the applicant's or licensee's application
22+20 file or license file as maintained by the Department.
23+21 "Agency" means a relationship in which a broker or
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31-licensee, whether directly or through an affiliated licensee,
32-represents a consumer by the consumer's consent, whether
33-express or implied, in a real property transaction.
34-"Applicant" means any person, as defined in this Section,
35-who applies to the Department for a valid license as a managing
36-broker, broker, or residential leasing agent.
37-"Blind advertisement" means any real estate advertisement
38-that is used by a licensee regarding the sale or lease of real
39-estate, licensed activities, or the hiring of any licensee
40-under this Act that does not include the sponsoring broker's
41-complete business name or, in the case of electronic
42-advertisements, does not provide a direct link to a display
43-with all the required disclosures. The broker's business name
44-in the case of a franchise shall include the franchise
45-affiliation as well as the name of the individual firm.
46-"Board" means the Real Estate Administration and
47-Disciplinary Board of the Department as created by Section
48-25-10 of this Act.
49-"Broker" means an individual, entity, corporation, foreign
50-or domestic partnership, limited liability company, registered
51-limited liability partnership, or other business entity other
52-than a residential leasing agent who, whether in person or
53-through any media or technology, for another and for
54-compensation, or with the intention or expectation of
55-receiving compensation, either directly or indirectly:
56-(1) Sells, exchanges, purchases, rents, or leases real
57-
58-
59-estate.
60-(2) Offers to sell, exchange, purchase, rent, or lease
61-real estate.
62-(3) Negotiates, offers, attempts, or agrees to
63-negotiate the sale, exchange, purchase, rental, or leasing
64-of real estate.
65-(4) Lists, offers, attempts, or agrees to list real
66-estate for sale, rent, lease, or exchange.
67-(5) Whether for another or themselves, engages in a
68-pattern of business of buying, selling, offering to buy or
69-sell, marketing for sale, exchanging, or otherwise dealing
70-in contracts, including assignable contracts for the
71-purchase or sale of, or options on real estate or
72-improvements thereon. For purposes of this definition, an
73-individual or entity will be found to have engaged in a
74-pattern of business if the individual or entity by itself
75-or with any combination of other individuals or entities,
76-whether as partners or common owners in another entity,
77-has engaged in one or more of these practices on 2 or more
78-occasions in any 12-month period.
79-(6) Supervises the collection, offer, attempt, or
80-agreement to collect rent for the use of real estate.
81-(7) Advertises or represents oneself as being engaged
82-in the business of buying, selling, exchanging, renting,
83-or leasing real estate.
84-(8) Assists or directs in procuring or referring of
85-
86-
87-leads or prospects, intended to result in the sale,
88-exchange, lease, or rental of real estate.
89-(9) Assists or directs in the negotiation of any
90-transaction intended to result in the sale, exchange,
91-lease, or rental of real estate.
92-(10) Opens real estate to the public for marketing
93-purposes.
94-(11) Sells, rents, leases, or offers for sale or lease
95-real estate at auction.
96-(12) Prepares or provides a broker price opinion or
97-comparative market analysis as those terms are defined in
98-this Act, pursuant to the provisions of Section 10-45 of
99-this Act.
100-"Brokerage agreement" means an a written or oral agreement
101-between a sponsoring broker and a consumer for licensed
102-activities, or the performance of future licensed activities,
103-to be provided to a consumer in return for compensation or the
104-right to receive compensation from another. Brokerage
105-agreements may constitute either a bilateral or a unilateral
106-agreement between the broker and the broker's client depending
107-upon the content of the brokerage agreement. All exclusive
108-brokerage agreements shall be in writing and may be exclusive
109-or non-exclusive.
110-"Broker price opinion" means an estimate or analysis of
111-the probable selling price of a particular interest in real
112-estate, which may provide a varying level of detail about the
113-
114-
115-property's condition, market, and neighborhood and information
116-on comparable sales. The activities of a real estate broker or
117-managing broker engaging in the ordinary course of business as
118-a broker, as defined in this Section, shall not be considered a
119-broker price opinion if no compensation is paid to the broker
120-or managing broker, other than compensation based upon the
121-sale or rental of real estate. A broker price opinion shall not
122-be considered an appraisal within the meaning of the Real
123-Estate Appraiser Licensing Act of 2002, any amendment to that
124-Act, or any successor Act.
125-"Client" means a person who is being represented by a
126-licensee.
127-"Comparative market analysis" means an analysis or opinion
128-regarding pricing, marketing, or financial aspects relating to
129-a specified interest or interests in real estate that may be
130-based upon an analysis of comparative market data, the
131-expertise of the real estate broker or managing broker, and
132-such other factors as the broker or managing broker may deem
133-appropriate in developing or preparing such analysis or
134-opinion. The activities of a real estate broker or managing
135-broker engaging in the ordinary course of business as a
136-broker, as defined in this Section, shall not be considered a
137-comparative market analysis if no compensation is paid to the
138-broker or managing broker, other than compensation based upon
139-the sale or rental of real estate. A comparative market
140-analysis shall not be considered an appraisal within the
141-
142-
143-meaning of the Real Estate Appraiser Licensing Act of 2002,
144-any amendment to that Act, or any successor Act.
145-"Compensation" means the valuable consideration given by
146-one person or entity to another person or entity in exchange
147-for the performance of some activity or service. Compensation
148-shall include the transfer of valuable consideration,
149-including without limitation the following:
150-(1) commissions;
151-(2) referral fees;
152-(3) bonuses;
153-(4) prizes;
154-(5) merchandise;
155-(6) finder fees;
156-(7) performance of services;
157-(8) coupons or gift certificates;
158-(9) discounts;
159-(10) rebates;
160-(11) a chance to win a raffle, drawing, lottery, or
161-similar game of chance not prohibited by any other law or
162-statute;
163-(12) retainer fee; or
164-(13) salary.
165-"Confidential information" means information obtained by a
166-licensee from a client during the term of a brokerage
167-agreement that (i) was made confidential by the written
168-request or written instruction of the client, (ii) deals with
169-
170-
171-the negotiating position of the client, or (iii) is
172-information the disclosure of which could materially harm the
173-negotiating position of the client, unless at any time:
174-(1) the client permits the disclosure of information
175-given by that client by word or conduct;
176-(2) the disclosure is required by law; or
177-(3) the information becomes public from a source other
178-than the licensee.
179-"Confidential information" shall not be considered to
180-include material information about the physical condition of
181-the property.
182-"Consumer" means a person or entity seeking or receiving
183-licensed activities.
184-"Coordinator" means the Coordinator of Real Estate created
185-in Section 25-15 of this Act.
186-"Credit hour" means 50 minutes of instruction in course
187-work that meets the requirements set forth in rules adopted by
188-the Department.
189-"Customer" means a consumer who is not being represented
190-by the licensee.
191-"Department" means the Department of Financial and
192-Professional Regulation.
193-"Designated agency" means a contractual relationship
194-between a sponsoring broker and a client under Section 15-50
195-of this Act in which one or more licensees associated with or
196-employed by the broker are designated as agent of the client.
197-
198-
199-"Designated agent" means a sponsored licensee named by a
200-sponsoring broker as the legal agent of a client, as provided
201-for in Section 15-50 of this Act.
202-"Designated managing broker" means a managing broker who
203-has supervisory responsibilities for licensees in one or, in
204-the case of a multi-office company, more than one office and
205-who has been appointed as such by the sponsoring broker
206-registered with the Department.
207-"Director" means the Director of Real Estate within the
208-Department of Financial and Professional Regulation.
209-"Dual agency" means an agency relationship in which a
210-licensee is representing both buyer and seller or both
211-landlord and tenant in the same transaction. When the agency
212-relationship is a designated agency, the question of whether
213-there is a dual agency shall be determined by the agency
214-relationships of the designated agent of the parties and not
215-of the sponsoring broker.
216-"Education provider" means a school licensed by the
217-Department offering courses in pre-license, post-license, or
218-continuing education required by this Act.
219-"Employee" or other derivative of the word "employee",
220-when used to refer to, describe, or delineate the relationship
221-between a sponsoring broker and a managing broker, broker, or
222-a residential leasing agent, shall be construed to include an
223-independent contractor relationship, provided that a written
224-agreement exists that clearly establishes and states the
225-
226-
227-relationship.
228-"Escrow moneys" means all moneys, promissory notes, or any
229-other type or manner of legal tender or financial
230-consideration deposited with any person for the benefit of the
231-parties to the transaction. A transaction exists once an
232-agreement has been reached and an accepted real estate
233-contract signed or lease agreed to by the parties. "Escrow
234-moneys" includes, without limitation, earnest moneys and
235-security deposits, except those security deposits in which the
236-person holding the security deposit is also the sole owner of
237-the property being leased and for which the security deposit
238-is being held.
239-"Electronic means of proctoring" means a methodology
240-providing assurance that the person taking a test and
241-completing the answers to questions is the person seeking
242-licensure or credit for continuing education and is doing so
243-without the aid of a third party or other device.
244-"Exclusive brokerage agreement" means a written brokerage
245-agreement that provides that the sponsoring broker has the
246-sole right, through one or more sponsored licensees, to act as
247-the exclusive agent or representative of the client and that
248-meets the requirements of Section 15-75 of this Act.
249-"Inactive" means a status of licensure where the licensee
250-holds a current license under this Act, but the licensee is
251-prohibited from engaging in licensed activities because the
252-licensee is unsponsored or the license of the sponsoring
253-
254-
255-broker with whom the licensee is associated or by whom the
256-licensee is employed is currently expired, revoked, suspended,
257-or otherwise rendered invalid under this Act. The license of
258-any business entity that is not in good standing with the
259-Illinois Secretary of State, or is not authorized to conduct
260-business in Illinois, shall immediately become inactive and
261-that entity shall be prohibited from engaging in any licensed
262-activities.
263-"Leads" means the name or names of a potential buyer,
264-seller, lessor, lessee, or client of a licensee.
265-"License" means the privilege conferred by the Department
266-to a person that has fulfilled all requirements prerequisite
267-to any type of licensure under this Act.
268-"Licensed activities" means those activities listed in the
269-definition of "broker" under this Section.
270-"Licensee" means any person licensed under this Act.
271-"Listing presentation" means any communication, written or
272-oral and by any means or media, between a managing broker or
273-broker and a consumer in which the licensee is attempting to
274-secure a brokerage agreement with the consumer to market the
275-consumer's real estate for sale or lease.
276-"Managing broker" means a licensee who may be authorized
277-to assume responsibilities as a designated managing broker for
278-licensees in one or, in the case of a multi-office company,
279-more than one office, upon appointment by the sponsoring
280-broker and registration with the Department. A managing broker
281-
282-
283-may act as one's own sponsor.
284-"Medium of advertising" means any method of communication
285-intended to influence the general public to use or purchase a
286-particular good or service or real estate, including, but not
287-limited to, print, electronic, social media, and digital
288-forums.
289-"Non-exclusive brokerage agreement" means a written
290-brokerage agreement that provides that the sponsoring broker
291-has the non-exclusive right, through one or more sponsored
292-licensees, to act as an agent or representative of the client
293-for the performance of licensed activities and meets the
294-requirements of Section 15-50 of this Act.
295-"Office" means a broker's place of business where the
296-general public is invited to transact business and where
297-records may be maintained and licenses readily available,
298-whether or not it is the broker's principal place of business.
299-"Person" means and includes individuals, entities,
300-corporations, limited liability companies, registered limited
301-liability partnerships, foreign and domestic partnerships, and
302-other business entities, except that when the context
303-otherwise requires, the term may refer to a single individual
304-or other described entity.
305-"Proctor" means any person, including, but not limited to,
306-an instructor, who has a written agreement to administer
307-examinations fairly and impartially with a licensed education
308-provider.
309-
310-
311-"Real estate" means and includes leaseholds as well as any
312-other interest or estate in land, whether corporeal,
313-incorporeal, freehold, or non-freehold and whether the real
314-estate is situated in this State or elsewhere. "Real estate"
315-does not include property sold, exchanged, or leased as a
316-timeshare or similar vacation item or interest, vacation club
317-membership, or other activity formerly regulated under the
318-Real Estate Timeshare Act of 1999 (repealed).
319-"Regular employee" means a person working an average of 20
320-hours per week for a person or entity who would be considered
321-as an employee under the Internal Revenue Service rules for
322-classifying workers.
323-"Renewal period" means the period beginning 90 days prior
324-to the expiration date of a license.
325-"Residential leasing agent" means a person who is employed
326-by a broker to engage in licensed activities limited to
327-leasing residential real estate who has obtained a license as
328-provided for in Section 5-5 of this Act.
329-"Secretary" means the Secretary of the Department of
330-Financial and Professional Regulation, or a person authorized
331-by the Secretary to act in the Secretary's stead.
332-"Sponsoring broker" means the broker who certifies to the
333-Department the broker's sponsorship of a licensed managing
334-broker, broker, or a residential leasing agent.
335-"Sponsorship" means that a sponsoring broker has certified
336-to the Department that a managing broker, broker, or
337-
338-
339-residential leasing agent is employed by or associated by
340-written agreement with the sponsoring broker and the
341-Department has registered the sponsorship, as provided for in
342-Section 5-40 of this Act.
343-"Team" means any 2 or more licensees who work together to
344-provide real estate brokerage services, represent themselves
345-to the public as being part of a team or group, are identified
346-by a team name that is different than their sponsoring
347-broker's name, and together are supervised by the same
348-managing broker and sponsored by the same sponsoring broker.
349-"Team" does not mean a separately organized, incorporated, or
350-legal entity.
351-(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
352-(225 ILCS 454/5-20)
353-(Section scheduled to be repealed on January 1, 2030)
354-Sec. 5-20. Exemptions from managing broker, broker, or
355-residential leasing agent license requirement; Department
356-exemption from education provider and related licenses. The
357-requirement for holding a license under this Article 5 shall
358-not apply to:
359-(1) Any person, as defined in Section 1-10, who: (A)
360-is the that as owner or lessor of real property who
361-performs any of the acts described in the definition of
362-"broker" under Section 1-10 of this Act only as it relates
363-to the owned or leased property; or (B) is with reference
364-
365-
366-to property owned or leased by it, or to the regular
367-employee who, in the course of the employee's duties and
368-incidental to employees thereof with respect to the
369-property so owned or leased, where such acts are performed
370-in the regular course of or as an incident to the
371-management, sale, or other disposition of such property
372-and the investment of the owned or leased property
373-performs therein, if such regular employees do not perform
374-any of the acts described in the definition of "broker"
375-under Section 1-10 of this Act in connection with a
376-vocation of selling or leasing any real estate or the
377-improvements thereon not so owned or leased. The exemption
378-in this item (1) does not apply to the person, the person's
379-employees, or the person's agents performing licensed
380-activity for property not owned or leased by that person.
381-(2) An attorney in fact acting under a duly executed
382-and recorded power of attorney to convey real estate from
383-the owner or lessor or the services rendered by an
384-attorney at law in the performance of the attorney's duty
385-as an attorney at law.
386-(3) Any person acting as receiver, trustee in
387-bankruptcy, administrator, executor, or guardian or while
388-acting under a court order or under the authority of a will
389-or testamentary trust.
390-(4) Any person acting as a resident manager for the
391-owner or any employee acting as the resident manager for a
392-
393-
394-broker managing an apartment building, duplex, or
395-apartment complex, when the resident manager resides on
396-the premises, the premises is the primary residence of the
397-resident manager, and the resident manager is engaged in
398-the leasing of that property.
399-(5) Any officer or employee of a federal agency in the
400-conduct of official duties.
401-(6) Any officer or employee of the State government or
402-any political subdivision thereof performing official
403-duties.
404-(7) Any multiple listing service or other similar
405-information exchange that is engaged in the collection and
406-dissemination of information concerning real estate
407-available for sale, purchase, lease, or exchange for the
408-purpose of providing licensees with a system by which
409-licensees may cooperatively share information along with
410-which no other licensed activities, as defined in Section
411-1-10 of this Act, are provided.
412-(8) Railroads and other public utilities regulated by
413-the State of Illinois, or the officers or full-time
414-employees thereof, unless the performance of any licensed
415-activities is in connection with the sale, purchase,
416-lease, or other disposition of real estate or investment
417-therein that does not require the approval of the
418-appropriate State regulatory authority.
419-(9) Any medium of advertising in the routine course of
420-
421-
422-selling or publishing advertising along with which no
423-other licensed activities, as defined in Section 1-10 of
424-this Act, are provided.
425-(10) Any resident lessee of a residential dwelling
426-unit who refers for compensation to the owner of the
427-dwelling unit, or to the owner's agent, prospective
428-lessees of dwelling units in the same building or complex
429-as the resident lessee's unit, but only if the resident
430-lessee (i) refers no more than 3 prospective lessees in
431-any 12-month period, (ii) receives compensation of no more
432-than $5,000 or the equivalent of 2 months' rent, whichever
433-is less, in any 12-month period, and (iii) limits
434-activities to referring prospective lessees to the owner,
435-or the owner's agent, and does not show a residential
436-dwelling unit to a prospective lessee, discuss terms or
437-conditions of leasing a dwelling unit with a prospective
438-lessee, or otherwise participate in the negotiation of the
439-leasing of a dwelling unit.
440-(11) The purchase, sale, or transfer of a timeshare or
441-similar vacation item or interest, vacation club
442-membership, or other activity formerly regulated under the
443-Real Estate Timeshare Act of 1999 (repealed).
444-(12) (Blank).
445-(13) Any person who is licensed without examination
446-under Section 10-25 (now repealed) of the Auction License
447-Act is exempt from holding a managing broker's or broker's
448-
449-
450-license under this Act for the limited purpose of selling
451-or leasing real estate at auction, so long as:
452-(A) that person has made application for said
453-exemption by July 1, 2000;
454-(B) that person verifies to the Department that
455-the person has sold real estate at auction for a period
456-of 5 years prior to licensure as an auctioneer;
457-(C) the person has had no lapse in the licensure as
458-an auctioneer; and
459-(D) the license issued under the Auction License
460-Act has not been disciplined for violation of those
461-provisions of Article 20 of the Auction License Act
462-dealing with or related to the sale or lease of real
463-estate at auction.
464-(14) A person who holds a valid license under the
465-Auction License Act and a valid real estate auction
466-certification and conducts auctions for the sale of real
467-estate under Section 5-32 of this Act.
468-(15) A hotel operator who is registered with the
469-Illinois Department of Revenue and pays taxes under the
470-Hotel Operators' Occupation Tax Act and rents a room or
471-rooms in a hotel as defined in the Hotel Operators'
472-Occupation Tax Act for a period of not more than 30
473-consecutive days and not more than 60 days in a calendar
474-year or a person who participates in an online marketplace
475-enabling persons to rent out all or part of the person's
476-
477-
478-owned residence.
479-(16) Notwithstanding any provisions to the contrary,
480-the Department and its employees shall be exempt from
481-education, course provider, instructor, and course license
482-requirements and fees while acting in an official capacity
483-on behalf of the Department. Courses offered by the
484-Department shall be eligible for continuing education
485-credit.
486-(Source: P.A. 103-236, eff. 1-1-24.)
487-(225 ILCS 454/5-25)
488-(Section scheduled to be repealed on January 1, 2030)
489-Sec. 5-25. Good moral character.
490-(a) When an applicant has had a license revoked on a prior
491-occasion or when an applicant is found to have committed any of
492-the practices enumerated in Section 20-20 of this Act or when
493-an applicant has been convicted of or enters a plea of guilty
494-or nolo contendere to forgery, embezzlement, obtaining money
495-under false pretenses, larceny, extortion, conspiracy to
496-defraud, or any other similar offense or offenses or has been
497-convicted of a felony involving moral turpitude in any court
498-of competent jurisdiction in this or any other state,
499-district, or territory of the United States or of a foreign
500-country, the Department Board may consider the prior
501-revocation, conduct, or conviction in its determination of the
502-applicant's moral character and whether to grant the applicant
503-
504-
505-a license.
506-(b) In its consideration of the prior revocation, conduct,
507-or conviction, the Department Board shall take into account
508-the nature of the conduct, any aggravating or extenuating
509-circumstances, the time elapsed since the revocation, conduct,
510-or conviction, the rehabilitation or restitution performed by
511-the applicant, mitigating factors, and any other factors that
512-the Department Board deems relevant, including, but not
513-limited to:
514-(1) the lack of direct relation of the offense for
515-which the applicant was previously convicted to the
516-duties, functions, and responsibilities of the position
517-for which a license is sought;
518-(2) unless otherwise specified, whether 5 years since
519-a felony conviction or 3 years since release from
520-confinement for the conviction, whichever is later, have
521-passed without a subsequent conviction;
522-(3) if the applicant was previously licensed or
523-employed in this State or other states or jurisdictions,
524-the lack of prior misconduct arising from or related to
525-the licensed position or position of employment;
526-(4) the age of the person at the time of the criminal
527-offense;
528-(5) if, due to the applicant's criminal conviction
529-history, the applicant would be explicitly prohibited by
530-federal rules or regulations from working in the position
531-
532-
533-for which a license is sought;
534-(6) successful completion of sentence and, for
535-applicants serving a term of parole or probation, a
536-progress report provided by the applicant's probation or
537-parole officer that documents the applicant's compliance
538-with conditions of supervision;
539-(7) evidence of the applicant's present fitness and
540-professional character;
541-(8) evidence of rehabilitation or rehabilitative
542-effort during or after incarceration, or during or after a
543-term of supervision, including, but not limited to, a
544-certificate of good conduct under Section 5-5.5-25 of the
545-Unified Code of Corrections or a certificate of relief
546-from disabilities under Section 5-5.5-10 of the Unified
547-Code of Corrections; and
548-(9) any other mitigating factors that contribute to
549-the person's potential and current ability to perform the
550-job duties.
551-(c) The Department shall not require applicants to report
552-the following information and shall not consider the following
553-criminal history records in connection with an application for
554-licensure or registration:
555-(1) juvenile adjudications of delinquent minors as
556-defined in Section 5-105 of the Juvenile Court Act of 1987
557-subject to the restrictions set forth in Section 5-130 of
558-that Act;
559-
560-
561-(2) law enforcement records, court records, and
562-conviction records of an individual who was 17 years old
563-at the time of the offense and before January 1, 2014,
564-unless the nature of the offense required the individual
565-to be tried as an adult;
566-(3) records of arrests not followed by a charge or
567-conviction;
568-(4) records of arrests where the charges were
569-dismissed unless related to the practice of the
570-profession; however, applicants shall not be asked to
571-report any arrests, and an arrest not followed by a
572-conviction shall not be the basis of a denial and may be
573-used only to assess an applicant's rehabilitation;
574-(5) convictions overturned by a higher court; or
575-(6) convictions or arrests that have been sealed or
576-expunged.
577-(d) If an applicant makes a false statement of material
578-fact on the application, the false statement may in itself be
579-sufficient grounds to revoke or refuse to issue a license.
580-(e) A licensee shall report to the Department, in a manner
581-prescribed by the Department and within 30 days after the
582-occurrence of: (1) any conviction of or plea of guilty, or nolo
583-contendere to forgery, embezzlement, obtaining money under
584-false pretenses, larceny, extortion, conspiracy to defraud, or
585-any similar offense or offenses or any conviction of a felony
586-involving moral turpitude; (2) the entry of an administrative
587-
588-
589-sanction by a government agency in this State or any other
590-jurisdiction that has as an essential element of dishonesty or
591-fraud or involves larceny, embezzlement, or obtaining money,
592-property, or credit by false pretenses; or (3) any conviction
593-of or plea of guilty or nolo contendere to a crime that
594-subjects the licensee to compliance with the requirements of
595-the Sex Offender Registration Act.
596-(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
597-(225 ILCS 454/5-28)
598-(Section scheduled to be repealed on January 1, 2030)
599-Sec. 5-28. Requirements for licensure as a managing
600-broker.
601-(a) Every applicant for licensure as a managing broker
602-must meet the following qualifications:
603-(1) be at least 20 years of age;
604-(2) be of good moral character;
605-(3) have been licensed at least 2 consecutive years
606-out of the preceding 3 years as a broker;
607-(4) successfully complete a 4-year course of study in
608-high school or secondary school approved by the state in
609-which the school is located, or a State of Illinois High
610-School Diploma, which shall be verified under oath by the
611-applicant;
612-(5) provide satisfactory evidence of having completed
613-at least 165 hours, 120 of which shall be those hours
614-
615-
616-required pre-licensure and post-licensure to obtain a
617-broker's license, and 45 additional hours completed within
618-the year immediately preceding the filing of an
619-application for a managing broker's license, which hours
620-shall focus on brokerage administration and management and
621-residential leasing agent management and include at least
622-15 hours in the classroom or by live, interactive webinar
623-or online distance education courses;
624-(6) personally take and pass a written examination on
625-Illinois specific real estate brokerage laws authorized by
626-the Department; and
627-(7) submit a valid application for issuance of a
628-license accompanied by the fees specified by rule.
629-(b) The requirements specified in item (5) of subsection
630-(a) of this Section do not apply to applicants who are
631-currently admitted to practice law by the Supreme Court of
632-Illinois and are currently in active standing.
633-(Source: P.A. 101-357, eff. 8-9-19; 102-1100, eff. 1-1-23.)
634-(225 ILCS 454/5-35)
635-(Section scheduled to be repealed on January 1, 2030)
636-Sec. 5-35. Examination; managing broker, broker, or
637-residential leasing agent.
638-(a) The Department shall authorize examinations at such
639-times and places as it may designate. The examination shall be
640-of a character to give a fair test of the qualifications of the
641-
642-
643-applicant to practice as a managing broker, broker, or
644-residential leasing agent. Applicants for examination as a
645-managing broker, broker, or residential leasing agent shall be
646-required to pay, either to the Department or the designated
647-testing service, a fee covering the cost of providing the
648-examination. Failure to appear for the examination on the
649-scheduled date, at the time and place specified, after the
650-applicant's application for examination has been received and
651-acknowledged by the Department or its designated testing
652-service, shall result in the forfeiture of the examination
653-fee. An applicant shall be eligible to take the examination
654-only after successfully completing the education requirements
655-and attaining the minimum age provided for in Article 5 of this
656-Act. Approved pre-license education, as prescribed by this Act
657-for licensure as a managing broker, broker, or residential
658-leasing agent, shall be valid for 2 years after the date of
659-satisfactory completion of all required pre-license education.
660-Each applicant shall be required to establish compliance with
661-the eligibility requirements in the manner provided by the
662-rules promulgated for the administration of this Act.
663-(b) If a person who has received a passing score on the
664-written examination described in this Section fails to submit
665-an application and meet all requirements for a license under
666-this Act within one year after receiving a passing score on the
667-examination, credit for the examination shall terminate. The
668-person thereafter may make a new application for examination.
669-
670-
671-(c) If an applicant has failed an examination 4
672-consecutive times, the applicant must repeat the pre-license
673-education required to sit for that examination. For the
674-purposes of this Section, the fifth attempt shall be the same
675-as the first, and the applicant must complete a new
676-application for examination. Approved education, as prescribed
677-by this Act for licensure as a managing broker, broker, or
678-residential leasing agent, shall be valid for 2 years after
679-the date of satisfactory completion of the education.
680-(d) The Department may employ consultants for the purposes
681-of preparing and conducting examinations.
682-(e) Each applicant shall establish the applicant's
683-compliance with the eligibility requirements in the manner
684-provided by the rules adopted for the administration of this
685-Act.
686-(Source: P.A. 101-357, eff. 8-9-19.)
687-(225 ILCS 454/5-45)
688-(Section scheduled to be repealed on January 1, 2030)
689-Sec. 5-45. Offices.
690-(a) If a sponsoring broker maintains more than one office
691-within the State, the sponsoring broker shall notify the
692-Department in a manner prescribed by the Department for each
693-office other than the sponsoring broker's principal place of
694-business. The brokerage license shall be displayed
695-conspicuously in each office. The name of each branch office
696-
697-
698-shall be the same as that of the sponsoring broker's principal
699-office or shall clearly delineate the office's relationship
700-with the principal office.
701-(b) The sponsoring broker shall name a designated managing
702-broker for each office and the sponsoring broker shall be
703-responsible for supervising all designated managing brokers.
704-The sponsoring broker shall notify the Department in a manner
705-prescribed by the Department of the name of all designated
706-managing brokers of the sponsoring broker and the office or
707-offices they manage. Any changes in designated managing
708-brokers shall be reported to the Department in a manner
709-prescribed by the Department within 15 days of the change.
710-Failure to do so shall subject the sponsoring broker to
711-discipline under Section 20-20 of this Act.
712-(c) The sponsoring broker shall, within 24 hours, notify
713-the Department in a manner prescribed by the Department of any
714-opening, closing, or change in location of any office.
715-(d) Except as provided in this Section, each sponsoring
716-broker shall maintain an office, or place of business within
717-this State for the transaction of real estate business, shall
718-conspicuously display an identification sign on the outside of
719-the physical office of adequate size and visibility. Any
720-record required by this Act to be created or maintained shall
721-be, in the case of a physical record, securely stored and
722-accessible for inspection by the Department at the sponsoring
723-broker's principal office and, in the case of an electronic
724-
725-
726-record, securely stored in the format in which it was
727-originally generated, sent, or received and accessible for
728-inspection by the Department by secure electronic access to
729-the record. Any record relating to a transaction of a special
730-account shall be maintained for a minimum of 5 years, and any
731-electronic record shall be backed up at least monthly. The
732-physical office or place of business shall not be located in
733-any retail or financial business establishment unless it is
734-clearly separated from the other business and is situated
735-within a distinct area within the establishment.
736-(e) A nonresident broker who is licensed in this State by
737-examination or pursuant to the provisions of Section 5-60 or
738-5-60.5 of this Act shall not be required to maintain a definite
739-office or place of business in this State so long as the broker
740-provided all of the following conditions are met:
741-(1) the broker maintains an active broker's license in
742-the broker's other state of licensure domicile;
743-(2) the broker maintains an office in the broker's
744-other state of licensure domicile; and
745-(3) files the broker has filed with the Department
746-written statements appointing the Secretary to act as the
747-broker's agent upon whom all judicial and other process or
748-legal notices directed to the licensee may be served and
749-agreeing to abide by all of the provisions of this Act with
750-respect to the broker's real estate activities within the
751-State of Illinois and submitting to the jurisdiction of
752-
753-
754-the Department.
755-The statements under subdivision (3) of this Section shall
756-be in form and substance the same as those statements required
757-under Section 5-60 of this Act and shall operate to the same
758-extent.
759-(f) The Department may adopt rules to regulate the
760-operation of virtual offices that do not have a fixed
761-location. A broker who qualifies under subsection (e) of this
762-Section may also operate a virtual office in the State subject
763-to all requirements of this Act and the rules adopted under
764-this Act.
765-(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
766-(225 ILCS 454/5-60)
767-(Section scheduled to be repealed on January 1, 2030)
768-Sec. 5-60. Managing broker licensed in another state;
769-broker licensed in another state; reciprocal agreements; agent
770-for service of process.
771-(a) A managing broker's license may be issued by the
772-Department to a managing broker or its equivalent licensed
773-under the laws of another state of the United States, under the
774-following conditions:
775-(1) the managing broker holds a managing broker's
776-license in a state that has entered into a reciprocal
777-agreement with the Department;
778-(2) the standards for that state for licensing as a
779-
780-
781-managing broker are substantially equal to or greater than
782-the minimum standards in the State of Illinois;
783-(3) the managing broker has been actively practicing
784-as a managing broker in the managing broker's state of
785-licensure for a period of not less than 2 years,
786-immediately prior to the date of application;
787-(4) the managing broker furnishes the Department with
788-a statement under seal of the proper licensing authority
789-of the state in which the managing broker is licensed
790-showing that the managing broker has an active managing
791-broker's license, that the managing broker is in good
792-standing, and any disciplinary action taken against the
793-managing broker in that state;
794-(5) the managing broker passes a test on Illinois
795-specific real estate brokerage laws; and
796-(6) the managing broker was licensed by an examination
797-in the state that has entered into a reciprocal agreement
798-with the Department.
799-(b) A broker's license may be issued by the Department to a
800-broker or its equivalent licensed under the laws of another
801-state of the United States, under the following conditions:
802-(1) the broker holds a broker's license in a state
803-that has entered into a reciprocal agreement with the
804-Department;
805-(2) the standards for that state for licensing as a
806-broker are substantially equivalent to or greater than the
807-
808-
809-minimum standards in the State of Illinois;
810-(3) (blank);
811-(4) the broker furnishes the Department with a
812-statement under seal of the proper licensing authority of
813-the state in which the broker is licensed showing that the
814-broker has an active broker's license, that the broker is
815-in good standing, and any disciplinary action taken
816-against the broker in that state;
817-(5) the broker passes a test on Illinois specific real
818-estate brokerage laws; and
819-(6) the broker was licensed by an examination in a
820-state that has entered into a reciprocal agreement with
821-the Department.
822-(c) (Blank).
823-(d) As a condition precedent to the issuance of a license
824-to a managing broker or broker pursuant to this Section, the
825-managing broker or broker shall agree in writing to abide by
826-all the provisions of this Act with respect to real estate
827-activities within the State of Illinois and submit to the
828-jurisdiction of the Department as provided in this Act. The
829-agreement shall be filed with the Department and shall remain
830-in force for so long as the managing broker or broker is
831-licensed by this State and thereafter with respect to acts or
832-omissions committed while licensed as a managing broker or
833-broker in this State.
834-(e) The Prior to the issuance of any license to any
835-
836-
837-managing broker or broker pursuant to this Section,
838-verification of active licensure issued for the conduct of
839-such business in any other state must be filed with the
840-Department by the managing broker or broker, and the same fees
841-must be paid as provided in this Act for the obtaining of a
842-managing broker's or broker's license in this State.
843-(f) Licenses previously granted under reciprocal
844-agreements with other states shall remain in force so long as
845-the Department has a reciprocal agreement with the state that
846-includes the requirements of this Section, unless that license
847-is suspended, revoked, or terminated by the Department for any
848-reason provided for suspension, revocation, or termination of
849-a resident licensee's license. Licenses granted under
850-reciprocal agreements may be renewed in the same manner as a
851-resident's license.
852-(g) Prior to the issuance of a license to a nonresident
853-managing broker or broker, the managing broker or broker shall
854-file with the Department, in a manner prescribed by the
855-Department, a designation in writing that appoints the
856-Secretary to act as agent upon whom all judicial and other
857-process or legal notices directed to the managing broker or
858-broker may be served. Service upon the agent so designated
859-shall be equivalent to personal service upon the licensee.
860-Copies of the appointment, certified by the Secretary, shall
861-be deemed sufficient evidence thereof and shall be admitted in
862-evidence with the same force and effect as the original
863-
864-
865-thereof might be admitted. In the written designation, the
866-managing broker or broker shall agree that any lawful process
867-against the licensee that is served upon the agent shall be of
868-the same legal force and validity as if served upon the
869-licensee and that the authority shall continue in force so
870-long as any liability remains outstanding in this State. Upon
871-the receipt of any process or notice, the Secretary shall
872-forthwith deliver a copy of the same by regular mail or email
873-to the last known business address or email address of the
874-licensee.
875-(h) (Blank). Any person holding a valid license under this
876-Section shall be eligible to obtain a managing broker's
877-license or a broker's license without examination should that
878-person change their state of domicile to Illinois and that
879-person otherwise meets the qualifications for licensure under
880-this Act.
881-(i) This Section is repealed on January 1, 2026.
882-(Source: P.A. 103-236, eff. 1-1-24.)
883-(225 ILCS 454/5-60.1 new)
884-Sec. 5-60.1. Applications for licensure based upon
885-reciprocal agreements. On and after January 1, 2026 (the
886-repeal date of Section 5-60), applications for licensure based
887-upon reciprocal agreements shall not be accepted. Licenses
888-granted under reciprocal agreements prior to January 1, 2026
889-shall remain in force and may be renewed in the same manner as
890-
891-
892-provided for a broker or managing broker license under Section
893-5-50 of this Act and by rule.
894-(225 ILCS 454/5-60.5 new)
895-Sec. 5-60.5. Managing broker licensed in another state;
896-broker licensed in another state; endorsement requirements;
897-agent for service of process.
898-(a) A managing broker's license may be issued by the
899-Department to a managing broker or its equivalent licensed
900-under the laws of another state or jurisdiction of the United
901-States under the following conditions:
902-(1) the managing broker holds an active managing
903-broker's license or its equivalent in another state or
904-jurisdiction;
905-(2) the managing broker has been actively practicing
906-as a managing broker or its license equivalent in the
907-managing broker's state or jurisdiction of licensure for a
908-period of not less than 2 years immediately prior to the
909-date of application;
910-(3) the managing broker furnishes the Department with
911-an official statement from the proper licensing authority
912-of each state or jurisdiction in which the managing broker
913-is licensed certifying (i) that the managing broker has an
914-active license, (ii) that the managing broker is in good
915-standing, and (iii) any history of discipline against the
916-managing broker in that state or jurisdiction of
917-
918-
919-licensure;
920-(4) the managing broker passes a test on Illinois
921-specific real estate brokerage laws; and
922-(5) the managing broker provides proof of successful
923-completion of a pre-license endorsement course approved by
924-the Department.
925-(b) A broker's license may be issued by the Department to a
926-broker or its equivalent licensed under the laws of another
927-state or jurisdiction of the United States under the following
928-conditions:
929-(1) the broker holds an active broker's license or its
930-equivalent in another state or jurisdiction;
931-(2) the broker furnishes the Department with an
932-official statement from the proper licensing authority of
933-each state or jurisdiction in which the broker is licensed
934-certifying (i) whether the broker has an active license,
935-(ii) that the broker is in good standing, and (iii) any
936-history of discipline against the broker in that state or
937-jurisdiction of licensure;
938-(3) the broker passes a test on Illinois specific real
939-estate brokerage laws;
940-(4) the broker provides proof of successful completion
941-of a pre-license endorsement course approved by the
942-Department; and
943-(5) if the broker has been actively practicing as a
944-broker or its license equivalent in any other state or
945-
946-
947-jurisdiction for less than 2 years immediately prior to
948-the date of application, the broker must complete the 45
949-hours of post-license broker education prescribed in this
950-Act and by rule.
951-(c) As a condition precedent to the issuance of a license
952-to a managing broker or broker pursuant to this Section, the
953-managing broker or broker shall agree to abide by all the
954-provisions of this Act with respect to managing broker's or
955-broker's real estate activities within the State of Illinois
956-and submit to the jurisdiction of the Department as provided
957-in this Act. The agreement shall remain in force for so long as
958-the managing broker or broker is licensed by this State and
959-thereafter with respect to acts or omissions committed while
960-licensed in this State.
961-(d) Prior to the issuance of a license to a nonresident
962-managing broker or broker, the managing broker or broker shall
963-file with the Department a designation in writing that
964-appoints the Secretary to act as the managing broker's or
965-broker's agent upon whom all judicial and other process or
966-legal notices directed to the managing broker or broker may be
967-served. Service upon the Secretary shall be equivalent to
968-personal service upon the licensee. Copies of the appointment,
969-certified by the Secretary, shall be deemed sufficient
970-evidence and shall be admitted into evidence with the same
971-force and effect as if the original is admitted.
972-(e) The same fees must be paid as provided in this Act for
973-
974-
975-obtaining a managing broker's or broker's license in this
976-State.
977-(f) In the written designation, the managing broker or
978-broker shall agree that any lawful process against the
979-licensee that is served upon the agent shall be of the same
980-legal force and validity as if served upon the licensee and
981-that the authority shall continue in force so long as any
982-liability remains outstanding in this State. Upon the receipt
983-of any process or notice, the Secretary shall deliver a copy of
984-the same by regular mail or email to the mailing address or
985-email address of record of the licensee.
986-(225 ILCS 454/5-70)
987-(Section scheduled to be repealed on January 1, 2030)
988-Sec. 5-70. Continuing education requirement; managing
989-broker or broker.
990-(a) The requirements of this Section apply to all managing
991-brokers and brokers.
992-(b) Except as otherwise provided in this Section, each
993-person who applies for renewal of a license as a managing
994-broker or broker must successfully complete 12 hours of real
995-estate continuing education courses recommended by the Board
996-and approved by the Department during the current term of the
997-license. In addition, those licensees renewing or obtaining a
998-managing broker's license must successfully complete a 12-hour
999-broker management continuing education course approved by the
1000-
1001-
1002-Department during the current term of the license. The broker
1003-management continuing education course must be completed in
1004-the classroom, or through a live, interactive webinar, or in
1005-an online distance education format. No license may be renewed
1006-except upon the successful completion of the required courses
1007-or their equivalent or upon a waiver of those requirements for
1008-good cause shown as determined by the Secretary upon the
1009-recommendation of the Board. The requirements of this Article
1010-are applicable to all managing brokers and brokers except
1011-those managing brokers and brokers who, during the current
1012-term of licensure:
1013-(1) serve in the armed services of the United States;
1014-(2) serve as an elected State or federal official;
1015-(3) serve as a full-time employee of the Department;
1016-or
1017-(4) are admitted to practice law pursuant to Illinois
1018-Supreme Court rule.
1019-(c) (Blank).
1020-(d) A person receiving an initial license during the 90
1021-days before the renewal date shall not be required to complete
1022-the continuing education courses provided for in subsection
1023-(b) of this Section as a condition of initial license renewal.
1024-(e) The continuing education requirement for brokers and
1025-managing brokers shall consist of a single core curriculum,
1026-which must include at least 2 credit hours of fair housing
1027-training, and an elective curriculum, to be recommended by the
1028-
1029-
1030-Board and approved by the Department in accordance with this
1031-subsection. With the exception of the fair housing training,
1032-the The core curriculum shall not be further divided into
1033-subcategories or divisions of instruction. The core curriculum
1034-shall consist of 6 total 4 hours during the current term of the
1035-license on subjects that may include, but are not limited to,
1036-advertising, agency, disclosures, escrow, fair housing,
1037-residential leasing agent management, and license law, and
1038-must include at least 2 credit hours of fair housing training.
1039-The amount of time allotted to each of the remaining these
1040-subjects shall be recommended by the Board and determined by
1041-the Department.
1042-The Department, upon the recommendation of the Board,
1043-shall review the core curriculum every 4 years, at a minimum,
1044-and shall revise the curriculum if necessary. However, the
1045-core curriculum's total hourly requirement shall only be
1046-subject to change by amendment of this subsection, and any
1047-change to the core curriculum shall not be effective for a
1048-period of 6 months after such change is made by the Department.
1049-The Department shall provide notice to all approved education
1050-providers of any changes to the core curriculum. When
1051-determining whether revisions of the core curriculum's
1052-subjects or specific time requirements are necessary, the
1053-Board shall consider recent changes in applicable laws, new
1054-laws, and areas of the license law and the Department policy
1055-that the Board deems appropriate, and any other subject areas
1056-
1057-
1058-the Board deems timely and applicable in order to prevent
1059-violations of this Act and to protect the public. In
1060-establishing a recommendation to the Department regarding the
1061-elective curriculum, the Board shall consider subjects that
1062-cover the various aspects of the practice of real estate that
1063-are covered under the scope of this Act.
1064-(f) The subject areas of continuing education courses
1065-recommended by the Board and approved by the Department shall
1066-be meant to protect the professionalism of the industry, the
1067-consumer, and the public and prevent violations of this Act
1068-and may include, without limitation, the following:
1069-(1) license law and escrow;
1070-(2) antitrust;
1071-(3) fair housing;
1072-(4) agency;
1073-(5) appraisal;
1074-(6) property management;
1075-(7) residential brokerage;
1076-(8) farm property management;
1077-(9) transaction management rights and duties of
1078-parties in a transaction;
1079-(10) commercial brokerage and leasing;
1080-(11) real estate financing;
1081-(12) disclosures;
1082-(13) residential leasing agent management;
1083-(14) advertising;
1084-
1085-
1086-(15) broker supervision and designated managing broker
1087-responsibility;
1088-(16) professional conduct; and
1089-(17) use of technology; and .
1090-(18) diversity, equity, and inclusion.
1091-(g) In lieu of credit for those courses listed in
1092-subsection (f) of this Section, credit may be earned for
1093-serving as a licensed instructor in an approved course of
1094-continuing education. The amount of credit earned for teaching
1095-a course shall be the amount of continuing education credit
1096-for which the course is approved for licensees taking the
1097-course.
1098-(h) Credit hours may be earned for self-study programs
1099-approved by the Department.
1100-(i) A managing broker or broker may earn credit for a
1101-specific continuing education course only once during the
1102-current term of the license.
1103-(j) No more than 12 hours of continuing education credit
1104-may be taken in one calendar day.
1105-(k) To promote the offering of a uniform and consistent
1106-course content, the Department may provide for the development
1107-of a single broker management course to be offered by all
1108-education providers who choose to offer the broker management
1109-continuing education course. The Department may contract for
1110-the development of the 12-hour broker management continuing
1111-education course with an outside vendor or consultant and, if
1112-
1113-
1114-the course is developed in this manner, the Department or the
1115-outside consultant shall license the use of that course to all
1116-approved education providers who wish to provide the course.
1117-(l) Except as specifically provided in this Act,
1118-continuing education credit hours may not be earned for
1119-completion of pre-license or post-license courses. The courses
1120-comprising the approved 45-hour post-license curriculum for
1121-broker licensees shall satisfy the continuing education
1122-requirement for the initial broker license term. The approved
1123-45-hour managing broker pre-license brokerage administration
1124-and management course shall satisfy the 12-hour broker
1125-management continuing education requirement for the initial
1126-managing broker license term.
1127-(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
1128-(225 ILCS 454/10-10)
1129-(Section scheduled to be repealed on January 1, 2030)
1130-Sec. 10-10. Disclosure of compensation.
1131-(a) A licensee must disclose to a client the sponsoring
1132-broker's compensation and policy, including the terms of
1133-compensation and any amounts offered with regard to
1134-cooperating with brokers who represent other parties in a
1135-transaction.
1136-(b) A licensee must disclose to a client all sources of
1137-compensation related to the transaction received by the
1138-licensee from a third party.
1139-
1140-
1141-(c) If a licensee refers a client to a third party in which
1142-the licensee has greater than a 1% ownership interest or from
1143-which the licensee receives or may receive dividends or other
1144-profit sharing distributions, other than a publicly held or
1145-traded company, for the purpose of the client obtaining
1146-services related to the transaction, then the licensee shall
1147-disclose that fact to the client at the time of making the
1148-referral.
1149-(d) If in any one transaction a sponsoring broker receives
1150-compensation from both the buyer and seller or lessee and
1151-lessor of real estate, the sponsoring broker shall disclose in
1152-writing to a client the fact that the compensation is being
1153-paid by both buyer and seller or lessee and lessor.
1154-(e) Nothing in the Act shall prohibit the cooperation with
1155-or a payment of compensation to an individual domiciled in any
1156-other state or country who is licensed as a broker in that
1157-individual's his or her state or country of domicile or to a
1158-resident of a country that does not require a person to be
1159-licensed to act as a broker if the person complies with the
1160-laws of the country in which that person resides and practices
1161-there as a broker.
1162-(Source: P.A. 101-357, eff. 8-9-19.)
1163-(225 ILCS 454/10-20)
1164-(Section scheduled to be repealed on January 1, 2030)
1165-Sec. 10-20. Sponsoring broker; employment agreement.
1166-
1167-
1168-(a) A licensee may perform activities as a licensee only
1169-for the licensee's his or her sponsoring broker. A licensee
1170-must have only one sponsoring broker at any one time.
1171-(b) Every broker who employs licensees or has an
1172-independent contractor relationship with a licensee shall have
1173-a written employment or independent contractor agreement with
1174-each such licensee. The broker having this written employment
1175-or independent contractor agreement with the licensee must be
1176-that licensee's sponsoring broker.
1177-(c) Every sponsoring broker must have a written employment
1178-or independent contractor agreement with each licensee the
1179-broker sponsors. The agreement shall address the employment or
1180-independent contractor relationship terms, including without
1181-limitation supervision, duties, compensation, and termination
1182-process.
1183-(d) (Blank).
1184-(d-5) If a written agreement provides for an independent
1185-contractor relationship that clearly states and establishes
1186-that relationship, the specific provisions of this Act shall
1187-control for licensee's conduct of brokerage activities.
1188-(e) Notwithstanding the fact that a sponsoring broker has
1189-an employment or independent contractor agreement with a
1190-licensee, a sponsoring broker may pay compensation directly to
1191-a business entity solely owned by that licensee that has been
1192-formed for the purpose of receiving compensation earned by the
1193-licensee. A business entity that receives compensation from a
1194-
1195-
1196-sponsoring broker as provided for in this subsection (e) shall
1197-not be required to be licensed under this Act and must either
1198-be owned solely by the licensee or by the licensee together
1199-with the licensee's spouse, but only if the spouse and
1200-licensee are both licensed and sponsored by the same
1201-sponsoring broker or the spouse is not also licensed.
1202-(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)
1203-(225 ILCS 454/15-35)
1204-(Section scheduled to be repealed on January 1, 2030)
1205-Sec. 15-35. Agency relationship disclosure.
1206-(a) A licensee acting as a designated agent shall advise a
1207-consumer in writing, no later than beginning to work as a
1208-designated agent on behalf of the consumer, of the following:
1209-(1) That a designated agency relationship exists,
1210-unless there is written agreement between the sponsoring
1211-broker and the consumer providing for a different agency
1212-relationship; and
1213-(2) The name or names of the designated agent or
1214-agents on the written disclosure, which must can be
1215-included as part of in a brokerage agreement or be a
1216-separate document, a copy of which is retained by the
1217-sponsoring broker for the licensee and company records,
1218-and a copy of which must be provided to the consumer or
1219-client.
1220-(b) The licensee representing the consumer shall discuss
1221-
1222-
1223-with the consumer the sponsoring broker's compensation and
1224-policy, including the terms of compensation and any amounts
1225-offered with regard to cooperating with brokers who represent
1226-other parties in a transaction.
1227-(c) A licensee shall disclose in writing to a customer
1228-that the licensee is not acting as the agent of the customer at
1229-a time intended to prevent disclosure of confidential
1230-information from a customer to a licensee, but in no event
1231-later than the preparation of an offer to purchase or lease
1232-real property.
1233-(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
1234-(225 ILCS 454/15-50)
1235-(Section scheduled to be repealed on January 1, 2030)
1236-Sec. 15-50. Brokerage agreements; designated Designated
1237-agency.
1238-(a) A sponsoring broker entering into a brokerage
1239-relationship an agreement with any person for the listing of
1240-property or for the purpose of representing any person in the
1241-buying, selling, exchanging, renting, or leasing of real
1242-estate shall set forth the terms of that relationship in a
1243-written brokerage agreement. The brokerage agreement shall
1244-specifically designate those licensees employed by or
1245-affiliated with the sponsoring broker who will be acting as
1246-legal agents of that person to the exclusion of all other
1247-licensees employed by or affiliated with the sponsoring
1248-
1249-
1250-broker. A sponsoring broker entering into an agreement under
1251-the provisions of this Section shall not be considered to be
1252-acting for more than one party in a transaction if the
1253-licensees are specifically designated as legal agents of a
1254-person and are not representing more than one party in a
1255-transaction.
1256-(a-5) Nothing in this Section prevents a client from
1257-seeking to enforce an oral agreement. The absence of a written
1258-agreement does not create an affirmative defense (i) to the
1259-existence, or lack thereof, of an agreement between the
1260-parties; or (ii) as to whether licensed activity was performed
1261-under this Act. This Section does not prevent a court from
1262-imposing legal or equitable remedies.
1263-(b) A sponsoring broker designating affiliated licensees
1264-to act as agents of clients shall take ordinary and necessary
1265-care to protect confidential information disclosed by a client
1266-to the his or her designated agent.
1267-(c) A designated agent may disclose to the designated
1268-agent's his or her sponsoring broker or persons specified by
1269-the sponsoring broker confidential information of a client for
1270-the purpose of seeking advice or assistance for the benefit of
1271-the client in regard to a possible transaction. Confidential
1272-information shall not be disclosed by the sponsoring broker or
1273-other specified representative of the sponsoring broker unless
1274-otherwise required by this Act or requested or permitted by
1275-the client who originally disclosed the confidential
1276-
1277-
1278-information.
1279-(Source: P.A. 101-357, eff. 8-9-19.)
1280-(225 ILCS 454/20-20)
1281-(Section scheduled to be repealed on January 1, 2030)
1282-Sec. 20-20. Nature of and grounds for discipline.
1283-(a) The Department may refuse to issue or renew a license,
1284-may place on probation, suspend, or revoke any license,
1285-reprimand, or take any other disciplinary or non-disciplinary
1286-action as the Department may deem proper and impose a fine not
1287-to exceed $25,000 for each violation upon any licensee or
1288-applicant under this Act or any person who holds oneself out as
1289-an applicant or licensee or against a licensee in handling
1290-one's own property, whether held by deed, option, or
1291-otherwise, for any one or any combination of the following
1292-causes:
1293-(1) Fraud or misrepresentation in applying for, or
1294-procuring, a license under this Act or in connection with
1295-applying for renewal of a license under this Act.
1296-(2) The licensee's conviction of or plea of guilty or
1297-plea of nolo contendere, as set forth in subsection (e) of
1298-Section 5-25, to: (A) a felony or misdemeanor in this
1299-State or any other jurisdiction; (B) the entry of an
1300-administrative sanction by a government agency in this
1301-State or any other jurisdiction; or (C) any conviction of
1302-or plea of guilty or plea of nolo contendere to a any crime
1303-
1304-
1305-that subjects the licensee to compliance with the
1306-requirements of the Sex Offender Registration Act.
1307-(3) Inability to practice the profession with
1308-reasonable judgment, skill, or safety as a result of a
1309-physical illness, mental illness, or disability.
1310-(4) Practice under this Act as a licensee in a retail
1311-sales establishment from an office, desk, or space that is
1312-not separated from the main retail business and located
1313-within a separate and distinct area within the
1314-establishment.
1315-(5) Having been disciplined by another state, the
1316-District of Columbia, a territory, a foreign nation, or a
1317-governmental agency authorized to impose discipline if at
1318-least one of the grounds for that discipline is the same as
1319-or the equivalent of one of the grounds for which a
1320-licensee may be disciplined under this Act. A certified
1321-copy of the record of the action by the other state or
1322-jurisdiction shall be prima facie evidence thereof.
1323-(6) Engaging in the practice of real estate brokerage
1324-without a license or after the licensee's license or
1325-temporary permit was expired or while the license was
1326-inactive, revoked, or suspended.
1327-(7) Cheating on or attempting to subvert the Real
1328-Estate License Exam or a continuing education course or
1329-examination.
1330-(8) Aiding or abetting an applicant to subvert or
1331-
1332-
1333-cheat on the Real Estate License Exam or continuing
1334-education exam administered pursuant to this Act.
1335-(9) Advertising that is inaccurate, misleading, or
1336-contrary to the provisions of the Act.
1337-(10) Making any substantial misrepresentation or
1338-untruthful advertising.
1339-(11) Making any false promises of a character likely
1340-to influence, persuade, or induce.
1341-(12) Pursuing a continued and flagrant course of
1342-misrepresentation or the making of false promises through
1343-licensees, employees, agents, advertising, or otherwise.
1344-(13) Any misleading or untruthful advertising, or
1345-using any trade name or insignia of membership in any real
1346-estate organization of which the licensee is not a member.
1347-(14) Acting for more than one party in a transaction
1348-without providing written notice to all parties for whom
1349-the licensee acts.
1350-(15) Representing or attempting to represent, or
1351-performing licensed activities for, a broker other than
1352-the sponsoring broker.
1353-(16) Failure to account for or to remit any moneys or
1354-documents coming into the licensee's possession that
1355-belong to others.
1356-(17) Failure to maintain and deposit in a special
1357-account, separate and apart from personal and other
1358-business accounts, all escrow moneys belonging to others
1359-
1360-
1361-entrusted to a licensee while acting as a broker, escrow
1362-agent, or temporary custodian of the funds of others or
1363-failure to maintain all escrow moneys on deposit in the
1364-account until the transactions are consummated or
1365-terminated, except to the extent that the moneys, or any
1366-part thereof, shall be:
1367-(A) disbursed prior to the consummation or
1368-termination (i) in accordance with the written
1369-direction of the principals to the transaction or
1370-their duly authorized agents, (ii) in accordance with
1371-directions providing for the release, payment, or
1372-distribution of escrow moneys contained in any written
1373-contract signed by the principals to the transaction
1374-or their duly authorized agents, or (iii) pursuant to
1375-an order of a court of competent jurisdiction; or
1376-(B) deemed abandoned and transferred to the Office
1377-of the State Treasurer to be handled as unclaimed
1378-property pursuant to the Revised Uniform Unclaimed
1379-Property Act. Escrow moneys may be deemed abandoned
1380-under this subparagraph (B) only: (i) in the absence
1381-of disbursement under subparagraph (A); (ii) in the
1382-absence of notice of the filing of any claim in a court
1383-of competent jurisdiction; and (iii) if 6 months have
1384-elapsed after the receipt of a written demand for the
1385-escrow moneys from one of the principals to the
1386-transaction or the principal's duly authorized agent.
1387-
1388-
1389-The account shall be noninterest bearing, unless the
1390-character of the deposit is such that payment of interest
1391-thereon is otherwise required by law or unless the
1392-principals to the transaction specifically require, in
1393-writing, that the deposit be placed in an interest-bearing
1394-account.
1395-(18) Failure to make available to the Department all
1396-escrow records and related documents maintained in
1397-connection with the practice of real estate within 24
1398-hours of a request for those documents by Department
1399-personnel.
1400-(19) Failing to furnish copies upon request of
1401-documents relating to a real estate transaction to a party
1402-who has executed that document.
1403-(20) Failure of a sponsoring broker or licensee to
1404-timely provide sponsorship or termination of sponsorship
1405-information to the Department.
1406-(21) Engaging in dishonorable, unethical, or
1407-unprofessional conduct of a character likely to deceive,
1408-defraud, or harm the public, including, but not limited
1409-to, conduct set forth in rules adopted by the Department.
1410-(22) Commingling the money or property of others with
1411-the licensee's own money or property.
1412-(23) Employing any person on a purely temporary or
1413-single deal basis as a means of evading the law regarding
1414-payment of commission to nonlicensees on some contemplated
1415-
1416-
1417-transactions.
1418-(24) Permitting the use of one's license as a broker
1419-to enable a residential leasing agent or unlicensed person
1420-to operate a real estate business without actual
1421-participation therein and control thereof by the broker.
1422-(25) Any other conduct, whether of the same or a
1423-different character from that specified in this Section,
1424-that constitutes dishonest dealing.
1425-(25.5) Failing to have a written brokerage agreement
1426-between the sponsoring broker and a client for whom the
1427-designated agent is working.
1428-(26) Displaying a "for rent" or "for sale" sign on any
1429-property without the written consent of an owner or the
1430-owner's duly authorized agent or advertising by any means
1431-that any property is for sale or for rent without the
1432-written consent of the owner or the owner's authorized
1433-agent.
1434-(27) Failing to provide information requested by the
1435-Department, or otherwise respond to that request, within
1436-30 days of the request.
1437-(28) Advertising by means of a blind advertisement,
1438-except as otherwise permitted in Section 10-30 of this
1439-Act.
1440-(29) A licensee under this Act or an unlicensed
1441-individual offering guaranteed sales plans, as defined in
1442-Section 10-50, except to the extent set forth in Section
1443-
1444-
1445-10-50.
1446-(30) Influencing or attempting to influence, by any
1447-words or acts, a prospective seller, purchaser, occupant,
1448-landlord, or tenant of real estate, in connection with
1449-viewing, buying, or leasing real estate, so as to promote
1450-or tend to promote the continuance or maintenance of
1451-racially and religiously segregated housing or so as to
1452-retard, obstruct, or discourage racially integrated
1453-housing on or in any street, block, neighborhood, or
1454-community.
1455-(31) Engaging in any act that constitutes a violation
1456-of any provision of Article 3 of the Illinois Human Rights
1457-Act, whether or not a complaint has been filed with or
1458-adjudicated by the Human Rights Commission.
1459-(32) Inducing any party to a contract of sale or lease
1460-or brokerage agreement to break the contract of sale or
1461-lease or brokerage agreement for the purpose of
1462-substituting, in lieu thereof, a new contract for sale or
1463-lease or brokerage agreement with a third party.
1464-(33) Negotiating a sale, exchange, or lease of real
1465-estate directly with any person if the licensee knows that
1466-the person has an exclusive brokerage agreement with
1467-another broker, unless specifically authorized by that
1468-broker.
1469-(34) When a licensee is also an attorney, acting as
1470-the attorney for either the buyer or the seller in the same
1471-
1472-
1473-transaction in which the licensee is acting or has acted
1474-as a managing broker or broker.
1475-(35) Advertising or offering merchandise or services
1476-as free if any conditions or obligations necessary for
1477-receiving the merchandise or services are not disclosed in
1478-the same advertisement or offer. These conditions or
1479-obligations include without limitation the requirement
1480-that the recipient attend a promotional activity or visit
1481-a real estate site. As used in this subdivision (35),
1482-"free" includes terms such as "award", "prize", "no
1483-charge", "free of charge", "without charge", and similar
1484-words or phrases that reasonably lead a person to believe
1485-that one may receive or has been selected to receive
1486-something of value, without any conditions or obligations
1487-on the part of the recipient.
1488-(36) (Blank).
1489-(37) Violating the terms of any order issued by the
1490-Department.
1491-(38) Paying or failing to disclose compensation in
1492-violation of Article 10 of this Act.
1493-(39) Requiring a party to a transaction who is not a
1494-client of the licensee to allow the licensee to retain a
1495-portion of the escrow moneys for payment of the licensee's
1496-commission or expenses as a condition for release of the
1497-escrow moneys to that party.
1498-(40) Disregarding or violating any provision of this
1499-
1500-
1501-Act or the published rules adopted by the Department to
1502-enforce this Act or aiding or abetting any individual,
1503-foreign or domestic partnership, registered limited
1504-liability partnership, limited liability company,
1505-corporation, or other business entity in disregarding any
1506-provision of this Act or the published rules adopted by
1507-the Department to enforce this Act.
1508-(41) Failing to provide the minimum services required
1509-by Section 15-75 of this Act when acting under an
1510-exclusive brokerage agreement.
1511-(42) Habitual or excessive use of or addiction to
1512-alcohol, narcotics, stimulants, or any other chemical
1513-agent or drug that results in a licensee's managing
1514-broker, broker, or residential leasing agent's inability
1515-to practice with reasonable skill or safety, which may
1516-result in significant harm to the public.
1517-(43) Enabling, aiding, or abetting an auctioneer, as
1518-defined in the Auction License Act, to conduct a real
1519-estate auction in a manner that is in violation of this
1520-Act.
1521-(44) Permitting any residential leasing agent or
1522-temporary residential leasing agent permit holder to
1523-engage in activities that require a broker's or managing
1524-broker's license.
1525-(45) Failing to notify the Department, within 30 days
1526-after the occurrence, of the information required in
1527-
1528-
1529-subsection (e) of Section 5-25.
1530-(46) A designated managing broker's failure to provide
1531-an appropriate written company policy or failure to
1532-perform any of the duties set forth in Section 10-55.
1533-(47) Filing liens or recording written instruments in
1534-any county in the State on noncommercial, residential real
1535-property that relate to a broker's compensation for
1536-licensed activity under the Act.
1537-(b) The Department may refuse to issue or renew or may
1538-suspend the license of any person who fails to file a return,
1539-pay the tax, penalty or interest shown in a filed return, or
1540-pay any final assessment of tax, penalty, or interest, as
1541-required by any tax Act administered by the Department of
1542-Revenue, until such time as the requirements of that tax Act
1543-are satisfied in accordance with subsection (g) of Section
1544-2105-15 of the Department of Professional Regulation Law of
1545-the Civil Administrative Code of Illinois.
1546-(c) (Blank).
1547-(d) In cases where the Department of Healthcare and Family
1548-Services (formerly Department of Public Aid) has previously
1549-determined that a licensee or a potential licensee is more
1550-than 30 days delinquent in the payment of child support and has
1551-subsequently certified the delinquency to the Department may
1552-refuse to issue or renew or may revoke or suspend that person's
1553-license or may take other disciplinary action against that
1554-person based solely upon the certification of delinquency made
1555-
1556-
1557-by the Department of Healthcare and Family Services in
1558-accordance with item (5) of subsection (a) of Section 2105-15
1559-of the Department of Professional Regulation Law of the Civil
1560-Administrative Code of Illinois.
1561-(e) (Blank).
1562-(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
1563-(225 ILCS 454/20-20.1)
1564-(Section scheduled to be repealed on January 1, 2030)
1565-Sec. 20-20.1. Citations.
1566-(a) The Department may adopt rules to permit the issuance
1567-of citations to any licensee for failure to comply with the
1568-continuing education and post-license education requirements
1569-set forth in this Act or as adopted by rule. The citation shall
1570-be issued to the licensee, and a copy shall be sent to the
1571-licensee's designated managing broker and sponsoring broker.
1572-The citation shall contain the licensee's name and address,
1573-the licensee's license number, the number of required hours of
1574-continuing education or post-license education that have not
1575-been successfully completed by the licensee's renewal
1576-deadline, and the penalty imposed, which shall not exceed
1577-$2,000. The issuance of any such citation shall not excuse the
1578-licensee from completing all continuing education or
1579-post-license education required for that term of licensure.
1580-(b) Service of a citation shall be made by in person,
1581-electronically, or by mail to the licensee at the licensee's
1582-
1583-
1584-address of record or email address of record, and must clearly
1585-state that if the cited licensee wishes to dispute the
1586-citation, the cited licensee may make a written request,
1587-within 30 days after the citation is served, for a hearing
1588-before the Department. If the cited licensee does not request
1589-a hearing within 30 days after the citation is served, then the
1590-citation shall become a final, non-disciplinary order shall be
1591-entered, and any fine imposed is due and payable within 30 60
1592-days after the entry of that final order. If the cited licensee
1593-requests a hearing within 30 days after the citation is
1594-served, the Department shall afford the cited licensee a
1595-hearing conducted in the same manner as a hearing provided for
1596-in this Act for any violation of this Act and shall determine
1597-whether the cited licensee committed the violation as charged
1598-and whether the fine as levied is warranted. If the violation
1599-is found, any fine shall constitute non-public discipline and
1600-be due and payable within 30 days after the order of the
1601-Secretary, which shall constitute a final order of the
1602-Department. No change in license status may be made by the
1603-Department until such time as a final order of the Department
1604-has been issued.
1605-(c) Payment of a fine that has been assessed pursuant to
1606-this Section shall not constitute disciplinary action
1607-reportable on the Department's website or elsewhere unless a
1608-licensee has previously received 2 or more citations and has
1609-been assessed 2 or more fines.
1610-
1611-
1612-(d) Nothing in this Section shall prohibit or limit the
1613-Department from taking further action pursuant to this Act and
1614-rules for additional, repeated, or continuing violations.
1615-(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
1616-(225 ILCS 454/20-50)
1617-(Section scheduled to be repealed on January 1, 2030)
1618-Sec. 20-50. Illegal discrimination. When there has been
1619-an adjudication in a civil or criminal proceeding that a
1620-licensee has illegally discriminated while engaged in any
1621-activity for which a license is required under this Act, the
1622-Department, following notice to the licensee and a hearing in
1623-accordance with the provisions of Section 20-60, and upon the
1624-recommendation of the Board as to the nature and extent of the
1625-suspension or revocation, shall, in accordance with the
1626-provisions of Section 20-64, suspend or revoke the license of
1627-that licensee in a timely manner, unless the adjudication is
1628-in the appeal process. The finding or judgment of the civil or
1629-criminal proceeding is a matter of record; the merits of which
1630-shall not be challenged in a request for a hearing by the
1631-licensee. When there has been an order in an administrative
1632-proceeding finding that a licensee has illegally discriminated
1633-while engaged in any activity for which a license is required
1634-under this Act, the Department, following notice to the
1635-licensee and a hearing in accordance with the provisions of
1636-Section 20-60, and upon the recommendation of the Board as to
1637-
1638-
1639-the nature and extent of the discipline, shall, in accordance
1640-with the provisions of Section 20-64, take one or more of the
1641-disciplinary actions provided for in Section 20-20 of this Act
1642-in a timely manner, unless the administrative order is in the
1643-appeal process. The finding of the administrative order is a
1644-matter of record; the merits of which shall not be challenged
1645-in a request for a hearing by the licensee.
1646-(Source: P.A. 96-856, eff. 12-31-09.)
1647-(225 ILCS 454/20-82)
1648-(Section scheduled to be repealed on January 1, 2030)
1649-Sec. 20-82. Fines and penalties; Real Estate License
1650-Administration Recovery Fund; Real Estate Recovery Fund. All
1651-fines and penalties collected under Section 20-20, Section
1652-20-20.1, and otherwise under this Act by the Department shall
1653-be deposited in the Real Estate License Administration
1654-Recovery Fund and may be transferred to the Real Estate
1655-Recovery Fund in accordance with the authority set forth in
1656-Section 25-35 of this Act.
1657-(Source: P.A. 96-856, eff. 12-31-09.)
1658-(225 ILCS 454/25-25)
1659-(Section scheduled to be repealed on January 1, 2030)
1660-Sec. 25-25. Real Estate Research and Education Fund. A
1661-special fund to be known as the Real Estate Research and
1662-Education Fund is created and shall be held in trust in the
1663-
1664-
1665-State treasury. Annually, on September 15th, the State
1666-Treasurer shall cause a transfer of $125,000 to the Real
1667-Estate Research and Education Fund from the Real Estate
1668-License Administration Fund. The Real Estate Research and
1669-Education Fund shall be administered by the Department. Money
1670-deposited in the Real Estate Research and Education Fund may
1671-be used for research and for education at state institutions
1672-of higher education or other organizations for research and
1673-for education to further the advancement of education in the
1674-real estate industry or can be used by the Department for
1675-expenses related to the education of licensees. Of the
1676-$125,000 annually transferred into the Real Estate Research
1677-and Education Fund, $15,000 shall be used to fund a
1678-scholarship program for persons of historically marginalized
1679-classes and minority racial origin who wish to pursue a course
1680-of study in the field of real estate. For the purposes of this
1681-Section: ,
1682-"Course course of study" means a course or courses that
1683-are part of a program of courses in the field of real estate
1684-designed to further an individual's knowledge or expertise in
1685-the field of real estate. These courses shall include, without
1686-limitation, courses that a broker licensed under this Act must
1687-complete to qualify for a managing broker's license, courses
1688-required to obtain the Graduate Realtors Institute
1689-designation, and any other courses or programs offered by
1690-accredited colleges, universities, or other institutions of
1691-
1692-
1693-higher education in Illinois.
1694-"Historically marginalized classes" means a person of a
1695-race or national origin that is Native American or Alaska
1696-Native, Asian, Black or African American, Hispanic or Latino,
1697-or Native Hawaiian or Pacific Islander, or is a member of a
1698-protected class under the Illinois Human Rights Act within the
1699-context of affirmative action.
1700-The scholarship program shall be administered by the
1701-Department or its designee. Moneys in the Real Estate Research
1702-and Education Fund may be invested and reinvested in the same
1703-manner as funds in the Real Estate Recovery Fund and all
1704-earnings, interest, and dividends received from such
1705-investments shall be deposited in the Real Estate Research and
1706-Education Fund and may be used for the same purposes as moneys
1707-transferred to the Real Estate Research and Education Fund.
1708-Moneys in the Real Estate Research and Education Fund may be
1709-transferred to the Professions Indirect Cost Fund as
1710-authorized under Section 2105-300 of the Department of
1711-Professional Regulation Law of the Civil Administrative Code
1712-of Illinois.
1713-(Source: P.A. 103-236, eff. 1-1-24.)
1714-(225 ILCS 454/25-30)
1715-(Section scheduled to be repealed on January 1, 2030)
1716-Sec. 25-30. Real Estate License Administration Fund;
1717-audit. A special fund to be known as the Real Estate License
1718-
1719-
1720-Administration Fund is created in the State Treasury. All
1721-fines, penalties, and fees received by the Department under
1722-this Act shall be deposited in the Real Estate License
1723-Administration Fund. The moneys deposited in the Real Estate
1724-License Administration Fund shall be appropriated to the
1725-Department for expenses of the Department and the Board in the
1726-administration of this Act, including, but not limited to, the
1727-maintenance and operation of the Real Estate Recovery Fund,
1728-and for the administration of any Act administered by the
1729-Department providing revenue to this Fund. Moneys in the Real
1730-Estate License Administration Fund may be invested and
1731-reinvested in the same manner as funds in the Real Estate
1732-Recovery Fund. All earnings received from such investment
1733-shall be deposited in the Real Estate License Administration
1734-Fund and may be used for the same purposes as fines, penalties,
1735-and fees deposited in the Real Estate License Administration
1736-Fund. Moneys in the Real Estate License Administration Fund
1737-may be transferred to the Professions Indirect Cost Fund as
1738-authorized under Section 2105-300 of the Department of
1739-Professional Regulation Law of the Civil Administrative Code
1740-of Illinois and to the Real Estate Recovery Fund as authorized
1741-by Section 25-35 of this Act. Upon the completion of any audit
1742-of the Department, as prescribed by the Illinois State
1743-Auditing Act, which includes an audit of the Real Estate
1744-License Administration Fund, the Department shall make the
1745-audit open to inspection by any interested person.
1746-
1747-
1748-(Source: P.A. 96-856, eff. 12-31-09.)
1749-(225 ILCS 454/25-35)
1750-(Section scheduled to be repealed on January 1, 2030)
1751-Sec. 25-35. Real Estate Recovery Fund. A special fund to
1752-be known as the Real Estate Recovery Fund is created in the
1753-State Treasury. All fines and penalties received by the
1754-Department pursuant to Article 20 of this Act shall be
1755-deposited into the State Treasury and held in the Real Estate
1756-Recovery Fund. The money in the Real Estate Recovery Fund
1757-shall be used by the Department exclusively for carrying out
1758-the purposes established by this Act. If, at any time, the
1759-balance remaining in the Real Estate Recovery Fund is less
1760-than $900,000 $750,000, the State Treasurer shall cause a
1761-transfer of moneys to the Real Estate Recovery Fund from the
1762-Real Estate License Administration Fund in an amount necessary
1763-to establish a balance of $1,000,000 $800,000 in the Real
1764-Estate Recovery Fund. If the balance in the Real Estate
1765-Recovery Fund exceeds $1,000,000, any excess funds over
1766-$1,000,000 shall be transferred to the Real Estate License
1767-Administration Fund. These funds may be invested and
1768-reinvested in the same manner as authorized for pension funds
1769-in Article 1 of the Illinois Pension Code. All earnings,
1770-interest, and dividends received from investment of funds in
1771-the Real Estate Recovery Fund shall be deposited into the Real
1772-Estate License Administration Fund and shall be used for the
1773-
1774-
1775-same purposes as other moneys deposited in the Real Estate
1776-License Administration Fund.
1777-(Source: P.A. 96-856, eff. 12-31-09.)
1778-(225 ILCS 454/30-5)
1779-(Section scheduled to be repealed on January 1, 2030)
1780-Sec. 30-5. Licensing of real estate education providers
1781-and instructors.
1782-(a) No person shall operate an education provider entity
1783-without possessing a valid and active license issued by the
1784-Department. Only education providers in possession of a valid
1785-education provider license may provide real estate
1786-pre-license, post-license, or continuing education courses
1787-that satisfy the requirements of this Act. Every person that
1788-desires to obtain an education provider license shall make
1789-application to the Department in a manner prescribed by the
1790-Department and pay the fee prescribed by rule. In addition to
1791-any other information required to be contained in the
1792-application as prescribed by rule, every application for an
1793-original or renewed license shall include the applicant's
1794-Social Security number or tax identification number.
1795-(b) (Blank).
1796-(c) (Blank).
1797-(d) (Blank).
1798-(e) (Blank).
1799-(f) To qualify for an education provider license, an
1800-
1801-
1802-applicant must demonstrate the following:
1803-(1) a sound financial base for establishing,
1804-promoting, and delivering the necessary courses; budget
1805-planning for the school's courses should be clearly
1806-projected;
1807-(2) a sufficient number of qualified, licensed
1808-instructors as provided by rule;
1809-(3) adequate support personnel to assist with
1810-administrative matters and technical assistance;
1811-(4) maintenance and availability of records of
1812-participation for licensees;
1813-(5) the ability to provide each participant who
1814-successfully completes an approved program with a
1815-certificate of completion signed by the administrator of a
1816-licensed education provider in a manner prescribed by the
1817-Department; the certificate of completion shall include
1818-the program that was completed, the completion date, the
1819-course number, and the student's and education provider's
1820-license numbers;
1821-(6) a written policy dealing with procedures for the
1822-management of grievances and fee refunds;
1823-(7) lesson plans and examinations, if applicable, for
1824-each course;
1825-(8) a 75% passing grade for successful completion of
1826-any continuing education course or pre-license or
1827-post-license examination, if required;
1828-
1829-
1830-(9) the ability to identify and use instructors who
1831-will teach in a planned program; instructor selections
1832-must demonstrate:
1833-(A) appropriate credentials;
1834-(B) competence as a teacher;
1835-(C) knowledge of content area; and
1836-(D) qualification by experience.
1837-Unless otherwise provided for in this Section, the
1838-education provider shall provide a proctor or an electronic
1839-means of proctoring if a proctored examination is required for
1840-each examination; the education provider shall be responsible
1841-for the conduct of the proctor; the duties and
1842-responsibilities of a proctor shall be established by rule.
1843-Unless otherwise provided for in this Section, the
1844-education provider shall must provide for closed book
1845-examinations for each course when required unless the
1846-Department, upon the recommendation of the Board, excuses this
1847-requirement based on the complexity of the course material.
1848-(g) Advertising and promotion of education activities must
1849-be carried out in a responsible fashion clearly showing the
1850-educational objectives of the activity, the nature of the
1851-audience that may benefit from the activity, the cost of the
1852-activity to the participant and the items covered by the cost,
1853-the amount of credit that can be earned, and the credentials of
1854-the faculty.
1855-(h) (Blank). The Department may, or upon request of the
1856-
1857-
1858-Board shall, after notice, cause an education provider to
1859-attend an informal conference before the Board for failure to
1860-comply with any requirement for licensure or for failure to
1861-comply with any provision of this Act or the rules for the
1862-administration of this Act. The Board shall make a
1863-recommendation to the Department as a result of its findings
1864-at the conclusion of any such informal conference.
1865-(i) All education providers shall maintain these minimum
1866-criteria and pay the required fee in order to retain their
1867-education provider license.
1868-(j) The Department may adopt any administrative rule
1869-consistent with the language and intent of this Act that may be
1870-necessary for the implementation and enforcement of this
1871-Section and to regulate the establishment and operation of
1872-virtual offices that do not have a fixed location.
1873-(Source: P.A. 100-188, eff. 1-1-18; 100-831, eff. 1-1-19;
1874-101-357, eff. 8-9-19.)
1875-(225 ILCS 454/30-15)
1876-(Section scheduled to be repealed on January 1, 2030)
1877-Sec. 30-15. Licensing of education providers; approval of
1878-courses.
1879-(a) (Blank).
1880-(b) (Blank).
1881-(c) (Blank).
1882-(d) (Blank).
1883-
1884-
1885-(e) (Blank).
1886-(f) All education providers shall submit, at the time of
1887-initial application and with each license renewal, a list of
1888-courses with course materials that comply with the course
1889-requirements in this Act to be offered by the education
1890-provider. The Department may establish an online mechanism by
1891-which education providers may submit for approval by the
1892-Department upon the recommendation of the Board or its
1893-designee pre-license, post-license, or continuing education
1894-courses that are submitted after the time of the education
1895-provider's initial license application or renewal. The
1896-Department shall provide to each education provider a
1897-certificate for each approved pre-license, post-license, or
1898-continuing education course. All pre-license, post-license, or
1899-continuing education courses shall be valid for the period
1900-coinciding with the term of license of the education provider.
1901-However, in no case shall a course continue to be valid if it
1902-does not, at all times, meet all of the requirements of the
1903-core curriculum established by this Act and the Board, as
1904-modified from time to time in accordance with this Act. All
1905-education providers shall provide a copy of the certificate of
1906-the pre-license, post-license, or continuing education course
1907-within the course materials given to each student or shall
1908-display a copy of the certificate of the pre-license,
1909-post-license, or continuing education course in a conspicuous
1910-place at the location of the class.
1911-
1912-
1913-(g) Each education provider shall provide to the
1914-Department a report in a frequency and format determined by
1915-the Department, with information concerning students who
1916-successfully completed all approved pre-license, post-license,
1917-or continuing education courses offered by the education
1918-provider.
1919-(h) The Department, upon the recommendation of the Board,
1920-may temporarily suspend a licensed education provider's
1921-approved courses without hearing and refuse to accept
1922-successful completion of or participation in any of these
1923-pre-license, post-license, or continuing education courses for
1924-education credit from that education provider upon the failure
1925-of that education provider to comply with the provisions of
1926-this Act or the rules for the administration of this Act, until
1927-such time as the Department receives satisfactory assurance of
1928-compliance. The Department shall notify the education provider
1929-of the noncompliance and may initiate disciplinary proceedings
1930-pursuant to this Act. The Department may refuse to issue,
1931-suspend, revoke, or otherwise discipline the license of an
1932-education provider or may withdraw approval of a pre-license,
1933-post-license, or continuing education course for good cause.
1934-Failure to comply with the requirements of this Section or any
1935-other requirements established by rule shall be deemed to be
1936-good cause. Disciplinary proceedings shall be conducted by the
1937-Department Board in the same manner as other disciplinary
1938-proceedings under this Act.
1939-
1940-
1941-(i) Pre-license, post-license, and continuing education
1942-courses, whether submitted for approval at the time of an
1943-education provider's initial application for licensure or
1944-otherwise, must meet the following minimum course
1945-requirements:
1946-(1) Continuing education courses shall be required to
1947-be at least one hour in duration. For each one hour of
1948-course time, there shall be a minimum of 50 minutes of
1949-instruction.
1950-(2) All core curriculum courses shall be provided only
1951-in the classroom or through a live, interactive webinar,
1952-or in an online distance education format.
1953-(3) Courses provided through a live, interactive
1954-webinar shall require all participants to demonstrate
1955-their attendance in and attention to the course by
1956-answering or responding to at least one polling question
1957-per 50 minutes of course instruction.
1958-(4) All participants in courses provided in an online
1959-distance education format shall demonstrate proficiency
1960-with the subject matter of the course through verifiable
1961-responses to questions included in the course content.
1962-(5) Credit for courses completed in a classroom or
1963-through a live, interactive webinar, or in an online
1964-distance education format shall not require an
1965-examination.
1966-(6) Credit for courses provided through
1967-
1968-
1969-correspondence, or by home study, shall require the
1970-passage of an in-person, proctored examination.
1971-(j) The Department is authorized to engage a third party
1972-as the Board's designee to perform the functions specifically
1973-provided for in subsection (f) of this Section, namely that of
1974-administering the online system for receipt, review, and
1975-approval or denial of new courses.
1976-(k) The Department may adopt any administrative rule
1977-consistent with the language and intent of this Act that may be
1978-necessary for the implementation and enforcement of this
1979-Section.
1980-(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
1981-(225 ILCS 454/30-25)
1982-(Section scheduled to be repealed on January 1, 2030)
1983-Sec. 30-25. Licensing of education provider instructors.
1984-(a) No person shall act as either a pre-license or
1985-continuing education instructor without possessing a valid
1986-pre-license or continuing education instructor license and
1987-satisfying any other qualification criteria adopted by the
1988-Department by rule.
1989-(a-5) Each person with a valid pre-license instructor
1990-license may teach pre-license, post-license, continuing
1991-education core curriculum, continuing education elective
1992-curriculum, or broker management education courses if they
1993-meet specific criteria adopted by the Department by rule.
1994-
1995-
1996-Those persons who have not met the criteria or who only possess
1997-a valid continuing education instructor license shall only
1998-teach continuing education elective curriculum courses. Any
1999-person with a valid continuing education instructor license
2000-who wishes to teach continuing education core curriculum or
2001-broker management continuing education courses must obtain a
2002-valid pre-license instructor license.
2003-(b) Every person who desires to obtain an education
2004-provider instructor's license shall attend and successfully
2005-complete a one-day instructor development workshop, as
2006-approved by the Department. However, pre-license instructors
2007-who have complied with subsection (b) of this Section 30-25
2008-shall not be required to complete the instructor workshop in
2009-order to teach continuing education elective curriculum
2010-courses.
2011-(b-5) The term of licensure for a pre-license or
2012-continuing education instructor shall be 2 years, with renewal
2013-dates adopted by rule. Every person who desires to obtain a
2014-pre-license or continuing education instructor license shall
2015-make application to the Department in a manner prescribed by
2016-the Department, accompanied by the fee adopted by rule. In
2017-addition to any other information required to be contained in
2018-the application, every application for an original license
2019-shall include the applicant's Social Security number or
2020-federal individual taxpayer identification number, which shall
2021-be retained in the agency's records pertaining to the license.
2022-
2023-
2024-As soon as practical, the Department shall assign a customer's
2025-identification number to each applicant for a license.
2026-Every application for a renewal or restored license shall
2027-require the applicant's customer identification number.
2028-The Department shall issue a pre-license or continuing
2029-education instructor license to applicants who meet
2030-qualification criteria established by this Act or rule.
2031-(c) The Department may refuse to issue, suspend, revoke,
2032-or otherwise discipline a pre-license or continuing education
2033-instructor for good cause. Disciplinary proceedings shall be
2034-conducted by the Department Board in the same manner as other
2035-disciplinary proceedings under this Act. All pre-license
2036-instructors must teach at least one pre-license or continuing
2037-education core curriculum course within the period of
2038-licensure as a requirement for renewal of the instructor's
2039-license. All continuing education instructors must teach at
2040-least one course within the period of licensure or take an
2041-instructor training program approved by the Department in lieu
2042-thereof as a requirement for renewal of the instructor's
2043-license.
2044-(d) Each course transcript submitted by an education
2045-provider to the Department shall include the name and license
2046-number of the pre-license or continuing education instructor
2047-for the course.
2048-(e) Licensed education provider instructors may teach for
2049-more than one licensed education provider.
2050-
2051-
2052-(f) The Department may adopt any administrative rule
2053-consistent with the language and intent of this Act that may be
2054-necessary for the implementation and enforcement of this
2055-Section.
2056-(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
2057-Section 99. Effective date. This Act takes effect January
2058-1, 2025, except that this Section, Section 5, and the changes
2059-to Sections 20-82, 25-30, and 25-35 of the Real Estate License
2060-Act of 2000 take effect upon becoming law.
2061-INDEX Statutes amended in order of appearance INDEX Statutes amended in order of appearance
2062-INDEX
2063-Statutes amended in order of appearance
2064-
2065-
2066-
2067-INDEX
2068-Statutes amended in order of appearance
30+SB3740 Enrolled- 2 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 2 - LRB103 36856 RTM 66968 b
31+ SB3740 Enrolled - 2 - LRB103 36856 RTM 66968 b
32+1 licensee, whether directly or through an affiliated licensee,
33+2 represents a consumer by the consumer's consent, whether
34+3 express or implied, in a real property transaction.
35+4 "Applicant" means any person, as defined in this Section,
36+5 who applies to the Department for a valid license as a managing
37+6 broker, broker, or residential leasing agent.
38+7 "Blind advertisement" means any real estate advertisement
39+8 that is used by a licensee regarding the sale or lease of real
40+9 estate, licensed activities, or the hiring of any licensee
41+10 under this Act that does not include the sponsoring broker's
42+11 complete business name or, in the case of electronic
43+12 advertisements, does not provide a direct link to a display
44+13 with all the required disclosures. The broker's business name
45+14 in the case of a franchise shall include the franchise
46+15 affiliation as well as the name of the individual firm.
47+16 "Board" means the Real Estate Administration and
48+17 Disciplinary Board of the Department as created by Section
49+18 25-10 of this Act.
50+19 "Broker" means an individual, entity, corporation, foreign
51+20 or domestic partnership, limited liability company, registered
52+21 limited liability partnership, or other business entity other
53+22 than a residential leasing agent who, whether in person or
54+23 through any media or technology, for another and for
55+24 compensation, or with the intention or expectation of
56+25 receiving compensation, either directly or indirectly:
57+26 (1) Sells, exchanges, purchases, rents, or leases real
58+
59+
60+
61+
62+
63+ SB3740 Enrolled - 2 - LRB103 36856 RTM 66968 b
64+
65+
66+SB3740 Enrolled- 3 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 3 - LRB103 36856 RTM 66968 b
67+ SB3740 Enrolled - 3 - LRB103 36856 RTM 66968 b
68+1 estate.
69+2 (2) Offers to sell, exchange, purchase, rent, or lease
70+3 real estate.
71+4 (3) Negotiates, offers, attempts, or agrees to
72+5 negotiate the sale, exchange, purchase, rental, or leasing
73+6 of real estate.
74+7 (4) Lists, offers, attempts, or agrees to list real
75+8 estate for sale, rent, lease, or exchange.
76+9 (5) Whether for another or themselves, engages in a
77+10 pattern of business of buying, selling, offering to buy or
78+11 sell, marketing for sale, exchanging, or otherwise dealing
79+12 in contracts, including assignable contracts for the
80+13 purchase or sale of, or options on real estate or
81+14 improvements thereon. For purposes of this definition, an
82+15 individual or entity will be found to have engaged in a
83+16 pattern of business if the individual or entity by itself
84+17 or with any combination of other individuals or entities,
85+18 whether as partners or common owners in another entity,
86+19 has engaged in one or more of these practices on 2 or more
87+20 occasions in any 12-month period.
88+21 (6) Supervises the collection, offer, attempt, or
89+22 agreement to collect rent for the use of real estate.
90+23 (7) Advertises or represents oneself as being engaged
91+24 in the business of buying, selling, exchanging, renting,
92+25 or leasing real estate.
93+26 (8) Assists or directs in procuring or referring of
94+
95+
96+
97+
98+
99+ SB3740 Enrolled - 3 - LRB103 36856 RTM 66968 b
100+
101+
102+SB3740 Enrolled- 4 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 4 - LRB103 36856 RTM 66968 b
103+ SB3740 Enrolled - 4 - LRB103 36856 RTM 66968 b
104+1 leads or prospects, intended to result in the sale,
105+2 exchange, lease, or rental of real estate.
106+3 (9) Assists or directs in the negotiation of any
107+4 transaction intended to result in the sale, exchange,
108+5 lease, or rental of real estate.
109+6 (10) Opens real estate to the public for marketing
110+7 purposes.
111+8 (11) Sells, rents, leases, or offers for sale or lease
112+9 real estate at auction.
113+10 (12) Prepares or provides a broker price opinion or
114+11 comparative market analysis as those terms are defined in
115+12 this Act, pursuant to the provisions of Section 10-45 of
116+13 this Act.
117+14 "Brokerage agreement" means an a written or oral agreement
118+15 between a sponsoring broker and a consumer for licensed
119+16 activities, or the performance of future licensed activities,
120+17 to be provided to a consumer in return for compensation or the
121+18 right to receive compensation from another. Brokerage
122+19 agreements may constitute either a bilateral or a unilateral
123+20 agreement between the broker and the broker's client depending
124+21 upon the content of the brokerage agreement. All exclusive
125+22 brokerage agreements shall be in writing and may be exclusive
126+23 or non-exclusive.
127+24 "Broker price opinion" means an estimate or analysis of
128+25 the probable selling price of a particular interest in real
129+26 estate, which may provide a varying level of detail about the
130+
131+
132+
133+
134+
135+ SB3740 Enrolled - 4 - LRB103 36856 RTM 66968 b
136+
137+
138+SB3740 Enrolled- 5 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 5 - LRB103 36856 RTM 66968 b
139+ SB3740 Enrolled - 5 - LRB103 36856 RTM 66968 b
140+1 property's condition, market, and neighborhood and information
141+2 on comparable sales. The activities of a real estate broker or
142+3 managing broker engaging in the ordinary course of business as
143+4 a broker, as defined in this Section, shall not be considered a
144+5 broker price opinion if no compensation is paid to the broker
145+6 or managing broker, other than compensation based upon the
146+7 sale or rental of real estate. A broker price opinion shall not
147+8 be considered an appraisal within the meaning of the Real
148+9 Estate Appraiser Licensing Act of 2002, any amendment to that
149+10 Act, or any successor Act.
150+11 "Client" means a person who is being represented by a
151+12 licensee.
152+13 "Comparative market analysis" means an analysis or opinion
153+14 regarding pricing, marketing, or financial aspects relating to
154+15 a specified interest or interests in real estate that may be
155+16 based upon an analysis of comparative market data, the
156+17 expertise of the real estate broker or managing broker, and
157+18 such other factors as the broker or managing broker may deem
158+19 appropriate in developing or preparing such analysis or
159+20 opinion. The activities of a real estate broker or managing
160+21 broker engaging in the ordinary course of business as a
161+22 broker, as defined in this Section, shall not be considered a
162+23 comparative market analysis if no compensation is paid to the
163+24 broker or managing broker, other than compensation based upon
164+25 the sale or rental of real estate. A comparative market
165+26 analysis shall not be considered an appraisal within the
166+
167+
168+
169+
170+
171+ SB3740 Enrolled - 5 - LRB103 36856 RTM 66968 b
172+
173+
174+SB3740 Enrolled- 6 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 6 - LRB103 36856 RTM 66968 b
175+ SB3740 Enrolled - 6 - LRB103 36856 RTM 66968 b
176+1 meaning of the Real Estate Appraiser Licensing Act of 2002,
177+2 any amendment to that Act, or any successor Act.
178+3 "Compensation" means the valuable consideration given by
179+4 one person or entity to another person or entity in exchange
180+5 for the performance of some activity or service. Compensation
181+6 shall include the transfer of valuable consideration,
182+7 including without limitation the following:
183+8 (1) commissions;
184+9 (2) referral fees;
185+10 (3) bonuses;
186+11 (4) prizes;
187+12 (5) merchandise;
188+13 (6) finder fees;
189+14 (7) performance of services;
190+15 (8) coupons or gift certificates;
191+16 (9) discounts;
192+17 (10) rebates;
193+18 (11) a chance to win a raffle, drawing, lottery, or
194+19 similar game of chance not prohibited by any other law or
195+20 statute;
196+21 (12) retainer fee; or
197+22 (13) salary.
198+23 "Confidential information" means information obtained by a
199+24 licensee from a client during the term of a brokerage
200+25 agreement that (i) was made confidential by the written
201+26 request or written instruction of the client, (ii) deals with
202+
203+
204+
205+
206+
207+ SB3740 Enrolled - 6 - LRB103 36856 RTM 66968 b
208+
209+
210+SB3740 Enrolled- 7 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 7 - LRB103 36856 RTM 66968 b
211+ SB3740 Enrolled - 7 - LRB103 36856 RTM 66968 b
212+1 the negotiating position of the client, or (iii) is
213+2 information the disclosure of which could materially harm the
214+3 negotiating position of the client, unless at any time:
215+4 (1) the client permits the disclosure of information
216+5 given by that client by word or conduct;
217+6 (2) the disclosure is required by law; or
218+7 (3) the information becomes public from a source other
219+8 than the licensee.
220+9 "Confidential information" shall not be considered to
221+10 include material information about the physical condition of
222+11 the property.
223+12 "Consumer" means a person or entity seeking or receiving
224+13 licensed activities.
225+14 "Coordinator" means the Coordinator of Real Estate created
226+15 in Section 25-15 of this Act.
227+16 "Credit hour" means 50 minutes of instruction in course
228+17 work that meets the requirements set forth in rules adopted by
229+18 the Department.
230+19 "Customer" means a consumer who is not being represented
231+20 by the licensee.
232+21 "Department" means the Department of Financial and
233+22 Professional Regulation.
234+23 "Designated agency" means a contractual relationship
235+24 between a sponsoring broker and a client under Section 15-50
236+25 of this Act in which one or more licensees associated with or
237+26 employed by the broker are designated as agent of the client.
238+
239+
240+
241+
242+
243+ SB3740 Enrolled - 7 - LRB103 36856 RTM 66968 b
244+
245+
246+SB3740 Enrolled- 8 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 8 - LRB103 36856 RTM 66968 b
247+ SB3740 Enrolled - 8 - LRB103 36856 RTM 66968 b
248+1 "Designated agent" means a sponsored licensee named by a
249+2 sponsoring broker as the legal agent of a client, as provided
250+3 for in Section 15-50 of this Act.
251+4 "Designated managing broker" means a managing broker who
252+5 has supervisory responsibilities for licensees in one or, in
253+6 the case of a multi-office company, more than one office and
254+7 who has been appointed as such by the sponsoring broker
255+8 registered with the Department.
256+9 "Director" means the Director of Real Estate within the
257+10 Department of Financial and Professional Regulation.
258+11 "Dual agency" means an agency relationship in which a
259+12 licensee is representing both buyer and seller or both
260+13 landlord and tenant in the same transaction. When the agency
261+14 relationship is a designated agency, the question of whether
262+15 there is a dual agency shall be determined by the agency
263+16 relationships of the designated agent of the parties and not
264+17 of the sponsoring broker.
265+18 "Education provider" means a school licensed by the
266+19 Department offering courses in pre-license, post-license, or
267+20 continuing education required by this Act.
268+21 "Employee" or other derivative of the word "employee",
269+22 when used to refer to, describe, or delineate the relationship
270+23 between a sponsoring broker and a managing broker, broker, or
271+24 a residential leasing agent, shall be construed to include an
272+25 independent contractor relationship, provided that a written
273+26 agreement exists that clearly establishes and states the
274+
275+
276+
277+
278+
279+ SB3740 Enrolled - 8 - LRB103 36856 RTM 66968 b
280+
281+
282+SB3740 Enrolled- 9 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 9 - LRB103 36856 RTM 66968 b
283+ SB3740 Enrolled - 9 - LRB103 36856 RTM 66968 b
284+1 relationship.
285+2 "Escrow moneys" means all moneys, promissory notes, or any
286+3 other type or manner of legal tender or financial
287+4 consideration deposited with any person for the benefit of the
288+5 parties to the transaction. A transaction exists once an
289+6 agreement has been reached and an accepted real estate
290+7 contract signed or lease agreed to by the parties. "Escrow
291+8 moneys" includes, without limitation, earnest moneys and
292+9 security deposits, except those security deposits in which the
293+10 person holding the security deposit is also the sole owner of
294+11 the property being leased and for which the security deposit
295+12 is being held.
296+13 "Electronic means of proctoring" means a methodology
297+14 providing assurance that the person taking a test and
298+15 completing the answers to questions is the person seeking
299+16 licensure or credit for continuing education and is doing so
300+17 without the aid of a third party or other device.
301+18 "Exclusive brokerage agreement" means a written brokerage
302+19 agreement that provides that the sponsoring broker has the
303+20 sole right, through one or more sponsored licensees, to act as
304+21 the exclusive agent or representative of the client and that
305+22 meets the requirements of Section 15-75 of this Act.
306+23 "Inactive" means a status of licensure where the licensee
307+24 holds a current license under this Act, but the licensee is
308+25 prohibited from engaging in licensed activities because the
309+26 licensee is unsponsored or the license of the sponsoring
310+
311+
312+
313+
314+
315+ SB3740 Enrolled - 9 - LRB103 36856 RTM 66968 b
316+
317+
318+SB3740 Enrolled- 10 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 10 - LRB103 36856 RTM 66968 b
319+ SB3740 Enrolled - 10 - LRB103 36856 RTM 66968 b
320+1 broker with whom the licensee is associated or by whom the
321+2 licensee is employed is currently expired, revoked, suspended,
322+3 or otherwise rendered invalid under this Act. The license of
323+4 any business entity that is not in good standing with the
324+5 Illinois Secretary of State, or is not authorized to conduct
325+6 business in Illinois, shall immediately become inactive and
326+7 that entity shall be prohibited from engaging in any licensed
327+8 activities.
328+9 "Leads" means the name or names of a potential buyer,
329+10 seller, lessor, lessee, or client of a licensee.
330+11 "License" means the privilege conferred by the Department
331+12 to a person that has fulfilled all requirements prerequisite
332+13 to any type of licensure under this Act.
333+14 "Licensed activities" means those activities listed in the
334+15 definition of "broker" under this Section.
335+16 "Licensee" means any person licensed under this Act.
336+17 "Listing presentation" means any communication, written or
337+18 oral and by any means or media, between a managing broker or
338+19 broker and a consumer in which the licensee is attempting to
339+20 secure a brokerage agreement with the consumer to market the
340+21 consumer's real estate for sale or lease.
341+22 "Managing broker" means a licensee who may be authorized
342+23 to assume responsibilities as a designated managing broker for
343+24 licensees in one or, in the case of a multi-office company,
344+25 more than one office, upon appointment by the sponsoring
345+26 broker and registration with the Department. A managing broker
346+
347+
348+
349+
350+
351+ SB3740 Enrolled - 10 - LRB103 36856 RTM 66968 b
352+
353+
354+SB3740 Enrolled- 11 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 11 - LRB103 36856 RTM 66968 b
355+ SB3740 Enrolled - 11 - LRB103 36856 RTM 66968 b
356+1 may act as one's own sponsor.
357+2 "Medium of advertising" means any method of communication
358+3 intended to influence the general public to use or purchase a
359+4 particular good or service or real estate, including, but not
360+5 limited to, print, electronic, social media, and digital
361+6 forums.
362+7 "Non-exclusive brokerage agreement" means a written
363+8 brokerage agreement that provides that the sponsoring broker
364+9 has the non-exclusive right, through one or more sponsored
365+10 licensees, to act as an agent or representative of the client
366+11 for the performance of licensed activities and meets the
367+12 requirements of Section 15-50 of this Act.
368+13 "Office" means a broker's place of business where the
369+14 general public is invited to transact business and where
370+15 records may be maintained and licenses readily available,
371+16 whether or not it is the broker's principal place of business.
372+17 "Person" means and includes individuals, entities,
373+18 corporations, limited liability companies, registered limited
374+19 liability partnerships, foreign and domestic partnerships, and
375+20 other business entities, except that when the context
376+21 otherwise requires, the term may refer to a single individual
377+22 or other described entity.
378+23 "Proctor" means any person, including, but not limited to,
379+24 an instructor, who has a written agreement to administer
380+25 examinations fairly and impartially with a licensed education
381+26 provider.
382+
383+
384+
385+
386+
387+ SB3740 Enrolled - 11 - LRB103 36856 RTM 66968 b
388+
389+
390+SB3740 Enrolled- 12 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 12 - LRB103 36856 RTM 66968 b
391+ SB3740 Enrolled - 12 - LRB103 36856 RTM 66968 b
392+1 "Real estate" means and includes leaseholds as well as any
393+2 other interest or estate in land, whether corporeal,
394+3 incorporeal, freehold, or non-freehold and whether the real
395+4 estate is situated in this State or elsewhere. "Real estate"
396+5 does not include property sold, exchanged, or leased as a
397+6 timeshare or similar vacation item or interest, vacation club
398+7 membership, or other activity formerly regulated under the
399+8 Real Estate Timeshare Act of 1999 (repealed).
400+9 "Regular employee" means a person working an average of 20
401+10 hours per week for a person or entity who would be considered
402+11 as an employee under the Internal Revenue Service rules for
403+12 classifying workers.
404+13 "Renewal period" means the period beginning 90 days prior
405+14 to the expiration date of a license.
406+15 "Residential leasing agent" means a person who is employed
407+16 by a broker to engage in licensed activities limited to
408+17 leasing residential real estate who has obtained a license as
409+18 provided for in Section 5-5 of this Act.
410+19 "Secretary" means the Secretary of the Department of
411+20 Financial and Professional Regulation, or a person authorized
412+21 by the Secretary to act in the Secretary's stead.
413+22 "Sponsoring broker" means the broker who certifies to the
414+23 Department the broker's sponsorship of a licensed managing
415+24 broker, broker, or a residential leasing agent.
416+25 "Sponsorship" means that a sponsoring broker has certified
417+26 to the Department that a managing broker, broker, or
418+
419+
420+
421+
422+
423+ SB3740 Enrolled - 12 - LRB103 36856 RTM 66968 b
424+
425+
426+SB3740 Enrolled- 13 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 13 - LRB103 36856 RTM 66968 b
427+ SB3740 Enrolled - 13 - LRB103 36856 RTM 66968 b
428+1 residential leasing agent is employed by or associated by
429+2 written agreement with the sponsoring broker and the
430+3 Department has registered the sponsorship, as provided for in
431+4 Section 5-40 of this Act.
432+5 "Team" means any 2 or more licensees who work together to
433+6 provide real estate brokerage services, represent themselves
434+7 to the public as being part of a team or group, are identified
435+8 by a team name that is different than their sponsoring
436+9 broker's name, and together are supervised by the same
437+10 managing broker and sponsored by the same sponsoring broker.
438+11 "Team" does not mean a separately organized, incorporated, or
439+12 legal entity.
440+13 (Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
441+14 (225 ILCS 454/5-20)
442+15 (Section scheduled to be repealed on January 1, 2030)
443+16 Sec. 5-20. Exemptions from managing broker, broker, or
444+17 residential leasing agent license requirement; Department
445+18 exemption from education provider and related licenses. The
446+19 requirement for holding a license under this Article 5 shall
447+20 not apply to:
448+21 (1) Any person, as defined in Section 1-10, who: (A)
449+22 is the that as owner or lessor of real property who
450+23 performs any of the acts described in the definition of
451+24 "broker" under Section 1-10 of this Act only as it relates
452+25 to the owned or leased property; or (B) is with reference
453+
454+
455+
456+
457+
458+ SB3740 Enrolled - 13 - LRB103 36856 RTM 66968 b
459+
460+
461+SB3740 Enrolled- 14 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 14 - LRB103 36856 RTM 66968 b
462+ SB3740 Enrolled - 14 - LRB103 36856 RTM 66968 b
463+1 to property owned or leased by it, or to the regular
464+2 employee who, in the course of the employee's duties and
465+3 incidental to employees thereof with respect to the
466+4 property so owned or leased, where such acts are performed
467+5 in the regular course of or as an incident to the
468+6 management, sale, or other disposition of such property
469+7 and the investment of the owned or leased property
470+8 performs therein, if such regular employees do not perform
471+9 any of the acts described in the definition of "broker"
472+10 under Section 1-10 of this Act in connection with a
473+11 vocation of selling or leasing any real estate or the
474+12 improvements thereon not so owned or leased. The exemption
475+13 in this item (1) does not apply to the person, the person's
476+14 employees, or the person's agents performing licensed
477+15 activity for property not owned or leased by that person.
478+16 (2) An attorney in fact acting under a duly executed
479+17 and recorded power of attorney to convey real estate from
480+18 the owner or lessor or the services rendered by an
481+19 attorney at law in the performance of the attorney's duty
482+20 as an attorney at law.
483+21 (3) Any person acting as receiver, trustee in
484+22 bankruptcy, administrator, executor, or guardian or while
485+23 acting under a court order or under the authority of a will
486+24 or testamentary trust.
487+25 (4) Any person acting as a resident manager for the
488+26 owner or any employee acting as the resident manager for a
489+
490+
491+
492+
493+
494+ SB3740 Enrolled - 14 - LRB103 36856 RTM 66968 b
495+
496+
497+SB3740 Enrolled- 15 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 15 - LRB103 36856 RTM 66968 b
498+ SB3740 Enrolled - 15 - LRB103 36856 RTM 66968 b
499+1 broker managing an apartment building, duplex, or
500+2 apartment complex, when the resident manager resides on
501+3 the premises, the premises is the primary residence of the
502+4 resident manager, and the resident manager is engaged in
503+5 the leasing of that property.
504+6 (5) Any officer or employee of a federal agency in the
505+7 conduct of official duties.
506+8 (6) Any officer or employee of the State government or
507+9 any political subdivision thereof performing official
508+10 duties.
509+11 (7) Any multiple listing service or other similar
510+12 information exchange that is engaged in the collection and
511+13 dissemination of information concerning real estate
512+14 available for sale, purchase, lease, or exchange for the
513+15 purpose of providing licensees with a system by which
514+16 licensees may cooperatively share information along with
515+17 which no other licensed activities, as defined in Section
516+18 1-10 of this Act, are provided.
517+19 (8) Railroads and other public utilities regulated by
518+20 the State of Illinois, or the officers or full-time
519+21 employees thereof, unless the performance of any licensed
520+22 activities is in connection with the sale, purchase,
521+23 lease, or other disposition of real estate or investment
522+24 therein that does not require the approval of the
523+25 appropriate State regulatory authority.
524+26 (9) Any medium of advertising in the routine course of
525+
526+
527+
528+
529+
530+ SB3740 Enrolled - 15 - LRB103 36856 RTM 66968 b
531+
532+
533+SB3740 Enrolled- 16 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 16 - LRB103 36856 RTM 66968 b
534+ SB3740 Enrolled - 16 - LRB103 36856 RTM 66968 b
535+1 selling or publishing advertising along with which no
536+2 other licensed activities, as defined in Section 1-10 of
537+3 this Act, are provided.
538+4 (10) Any resident lessee of a residential dwelling
539+5 unit who refers for compensation to the owner of the
540+6 dwelling unit, or to the owner's agent, prospective
541+7 lessees of dwelling units in the same building or complex
542+8 as the resident lessee's unit, but only if the resident
543+9 lessee (i) refers no more than 3 prospective lessees in
544+10 any 12-month period, (ii) receives compensation of no more
545+11 than $5,000 or the equivalent of 2 months' rent, whichever
546+12 is less, in any 12-month period, and (iii) limits
547+13 activities to referring prospective lessees to the owner,
548+14 or the owner's agent, and does not show a residential
549+15 dwelling unit to a prospective lessee, discuss terms or
550+16 conditions of leasing a dwelling unit with a prospective
551+17 lessee, or otherwise participate in the negotiation of the
552+18 leasing of a dwelling unit.
553+19 (11) The purchase, sale, or transfer of a timeshare or
554+20 similar vacation item or interest, vacation club
555+21 membership, or other activity formerly regulated under the
556+22 Real Estate Timeshare Act of 1999 (repealed).
557+23 (12) (Blank).
558+24 (13) Any person who is licensed without examination
559+25 under Section 10-25 (now repealed) of the Auction License
560+26 Act is exempt from holding a managing broker's or broker's
561+
562+
563+
564+
565+
566+ SB3740 Enrolled - 16 - LRB103 36856 RTM 66968 b
567+
568+
569+SB3740 Enrolled- 17 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 17 - LRB103 36856 RTM 66968 b
570+ SB3740 Enrolled - 17 - LRB103 36856 RTM 66968 b
571+1 license under this Act for the limited purpose of selling
572+2 or leasing real estate at auction, so long as:
573+3 (A) that person has made application for said
574+4 exemption by July 1, 2000;
575+5 (B) that person verifies to the Department that
576+6 the person has sold real estate at auction for a period
577+7 of 5 years prior to licensure as an auctioneer;
578+8 (C) the person has had no lapse in the licensure as
579+9 an auctioneer; and
580+10 (D) the license issued under the Auction License
581+11 Act has not been disciplined for violation of those
582+12 provisions of Article 20 of the Auction License Act
583+13 dealing with or related to the sale or lease of real
584+14 estate at auction.
585+15 (14) A person who holds a valid license under the
586+16 Auction License Act and a valid real estate auction
587+17 certification and conducts auctions for the sale of real
588+18 estate under Section 5-32 of this Act.
589+19 (15) A hotel operator who is registered with the
590+20 Illinois Department of Revenue and pays taxes under the
591+21 Hotel Operators' Occupation Tax Act and rents a room or
592+22 rooms in a hotel as defined in the Hotel Operators'
593+23 Occupation Tax Act for a period of not more than 30
594+24 consecutive days and not more than 60 days in a calendar
595+25 year or a person who participates in an online marketplace
596+26 enabling persons to rent out all or part of the person's
597+
598+
599+
600+
601+
602+ SB3740 Enrolled - 17 - LRB103 36856 RTM 66968 b
603+
604+
605+SB3740 Enrolled- 18 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 18 - LRB103 36856 RTM 66968 b
606+ SB3740 Enrolled - 18 - LRB103 36856 RTM 66968 b
607+1 owned residence.
608+2 (16) Notwithstanding any provisions to the contrary,
609+3 the Department and its employees shall be exempt from
610+4 education, course provider, instructor, and course license
611+5 requirements and fees while acting in an official capacity
612+6 on behalf of the Department. Courses offered by the
613+7 Department shall be eligible for continuing education
614+8 credit.
615+9 (Source: P.A. 103-236, eff. 1-1-24.)
616+10 (225 ILCS 454/5-25)
617+11 (Section scheduled to be repealed on January 1, 2030)
618+12 Sec. 5-25. Good moral character.
619+13 (a) When an applicant has had a license revoked on a prior
620+14 occasion or when an applicant is found to have committed any of
621+15 the practices enumerated in Section 20-20 of this Act or when
622+16 an applicant has been convicted of or enters a plea of guilty
623+17 or nolo contendere to forgery, embezzlement, obtaining money
624+18 under false pretenses, larceny, extortion, conspiracy to
625+19 defraud, or any other similar offense or offenses or has been
626+20 convicted of a felony involving moral turpitude in any court
627+21 of competent jurisdiction in this or any other state,
628+22 district, or territory of the United States or of a foreign
629+23 country, the Department Board may consider the prior
630+24 revocation, conduct, or conviction in its determination of the
631+25 applicant's moral character and whether to grant the applicant
632+
633+
634+
635+
636+
637+ SB3740 Enrolled - 18 - LRB103 36856 RTM 66968 b
638+
639+
640+SB3740 Enrolled- 19 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 19 - LRB103 36856 RTM 66968 b
641+ SB3740 Enrolled - 19 - LRB103 36856 RTM 66968 b
642+1 a license.
643+2 (b) In its consideration of the prior revocation, conduct,
644+3 or conviction, the Department Board shall take into account
645+4 the nature of the conduct, any aggravating or extenuating
646+5 circumstances, the time elapsed since the revocation, conduct,
647+6 or conviction, the rehabilitation or restitution performed by
648+7 the applicant, mitigating factors, and any other factors that
649+8 the Department Board deems relevant, including, but not
650+9 limited to:
651+10 (1) the lack of direct relation of the offense for
652+11 which the applicant was previously convicted to the
653+12 duties, functions, and responsibilities of the position
654+13 for which a license is sought;
655+14 (2) unless otherwise specified, whether 5 years since
656+15 a felony conviction or 3 years since release from
657+16 confinement for the conviction, whichever is later, have
658+17 passed without a subsequent conviction;
659+18 (3) if the applicant was previously licensed or
660+19 employed in this State or other states or jurisdictions,
661+20 the lack of prior misconduct arising from or related to
662+21 the licensed position or position of employment;
663+22 (4) the age of the person at the time of the criminal
664+23 offense;
665+24 (5) if, due to the applicant's criminal conviction
666+25 history, the applicant would be explicitly prohibited by
667+26 federal rules or regulations from working in the position
668+
669+
670+
671+
672+
673+ SB3740 Enrolled - 19 - LRB103 36856 RTM 66968 b
674+
675+
676+SB3740 Enrolled- 20 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 20 - LRB103 36856 RTM 66968 b
677+ SB3740 Enrolled - 20 - LRB103 36856 RTM 66968 b
678+1 for which a license is sought;
679+2 (6) successful completion of sentence and, for
680+3 applicants serving a term of parole or probation, a
681+4 progress report provided by the applicant's probation or
682+5 parole officer that documents the applicant's compliance
683+6 with conditions of supervision;
684+7 (7) evidence of the applicant's present fitness and
685+8 professional character;
686+9 (8) evidence of rehabilitation or rehabilitative
687+10 effort during or after incarceration, or during or after a
688+11 term of supervision, including, but not limited to, a
689+12 certificate of good conduct under Section 5-5.5-25 of the
690+13 Unified Code of Corrections or a certificate of relief
691+14 from disabilities under Section 5-5.5-10 of the Unified
692+15 Code of Corrections; and
693+16 (9) any other mitigating factors that contribute to
694+17 the person's potential and current ability to perform the
695+18 job duties.
696+19 (c) The Department shall not require applicants to report
697+20 the following information and shall not consider the following
698+21 criminal history records in connection with an application for
699+22 licensure or registration:
700+23 (1) juvenile adjudications of delinquent minors as
701+24 defined in Section 5-105 of the Juvenile Court Act of 1987
702+25 subject to the restrictions set forth in Section 5-130 of
703+26 that Act;
704+
705+
706+
707+
708+
709+ SB3740 Enrolled - 20 - LRB103 36856 RTM 66968 b
710+
711+
712+SB3740 Enrolled- 21 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 21 - LRB103 36856 RTM 66968 b
713+ SB3740 Enrolled - 21 - LRB103 36856 RTM 66968 b
714+1 (2) law enforcement records, court records, and
715+2 conviction records of an individual who was 17 years old
716+3 at the time of the offense and before January 1, 2014,
717+4 unless the nature of the offense required the individual
718+5 to be tried as an adult;
719+6 (3) records of arrests not followed by a charge or
720+7 conviction;
721+8 (4) records of arrests where the charges were
722+9 dismissed unless related to the practice of the
723+10 profession; however, applicants shall not be asked to
724+11 report any arrests, and an arrest not followed by a
725+12 conviction shall not be the basis of a denial and may be
726+13 used only to assess an applicant's rehabilitation;
727+14 (5) convictions overturned by a higher court; or
728+15 (6) convictions or arrests that have been sealed or
729+16 expunged.
730+17 (d) If an applicant makes a false statement of material
731+18 fact on the application, the false statement may in itself be
732+19 sufficient grounds to revoke or refuse to issue a license.
733+20 (e) A licensee shall report to the Department, in a manner
734+21 prescribed by the Department and within 30 days after the
735+22 occurrence of: (1) any conviction of or plea of guilty, or nolo
736+23 contendere to forgery, embezzlement, obtaining money under
737+24 false pretenses, larceny, extortion, conspiracy to defraud, or
738+25 any similar offense or offenses or any conviction of a felony
739+26 involving moral turpitude; (2) the entry of an administrative
740+
741+
742+
743+
744+
745+ SB3740 Enrolled - 21 - LRB103 36856 RTM 66968 b
746+
747+
748+SB3740 Enrolled- 22 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 22 - LRB103 36856 RTM 66968 b
749+ SB3740 Enrolled - 22 - LRB103 36856 RTM 66968 b
750+1 sanction by a government agency in this State or any other
751+2 jurisdiction that has as an essential element of dishonesty or
752+3 fraud or involves larceny, embezzlement, or obtaining money,
753+4 property, or credit by false pretenses; or (3) any conviction
754+5 of or plea of guilty or nolo contendere to a crime that
755+6 subjects the licensee to compliance with the requirements of
756+7 the Sex Offender Registration Act.
757+8 (Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
758+9 (225 ILCS 454/5-28)
759+10 (Section scheduled to be repealed on January 1, 2030)
760+11 Sec. 5-28. Requirements for licensure as a managing
761+12 broker.
762+13 (a) Every applicant for licensure as a managing broker
763+14 must meet the following qualifications:
764+15 (1) be at least 20 years of age;
765+16 (2) be of good moral character;
766+17 (3) have been licensed at least 2 consecutive years
767+18 out of the preceding 3 years as a broker;
768+19 (4) successfully complete a 4-year course of study in
769+20 high school or secondary school approved by the state in
770+21 which the school is located, or a State of Illinois High
771+22 School Diploma, which shall be verified under oath by the
772+23 applicant;
773+24 (5) provide satisfactory evidence of having completed
774+25 at least 165 hours, 120 of which shall be those hours
775+
776+
777+
778+
779+
780+ SB3740 Enrolled - 22 - LRB103 36856 RTM 66968 b
781+
782+
783+SB3740 Enrolled- 23 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 23 - LRB103 36856 RTM 66968 b
784+ SB3740 Enrolled - 23 - LRB103 36856 RTM 66968 b
785+1 required pre-licensure and post-licensure to obtain a
786+2 broker's license, and 45 additional hours completed within
787+3 the year immediately preceding the filing of an
788+4 application for a managing broker's license, which hours
789+5 shall focus on brokerage administration and management and
790+6 residential leasing agent management and include at least
791+7 15 hours in the classroom or by live, interactive webinar
792+8 or online distance education courses;
793+9 (6) personally take and pass a written examination on
794+10 Illinois specific real estate brokerage laws authorized by
795+11 the Department; and
796+12 (7) submit a valid application for issuance of a
797+13 license accompanied by the fees specified by rule.
798+14 (b) The requirements specified in item (5) of subsection
799+15 (a) of this Section do not apply to applicants who are
800+16 currently admitted to practice law by the Supreme Court of
801+17 Illinois and are currently in active standing.
802+18 (Source: P.A. 101-357, eff. 8-9-19; 102-1100, eff. 1-1-23.)
803+19 (225 ILCS 454/5-35)
804+20 (Section scheduled to be repealed on January 1, 2030)
805+21 Sec. 5-35. Examination; managing broker, broker, or
806+22 residential leasing agent.
807+23 (a) The Department shall authorize examinations at such
808+24 times and places as it may designate. The examination shall be
809+25 of a character to give a fair test of the qualifications of the
810+
811+
812+
813+
814+
815+ SB3740 Enrolled - 23 - LRB103 36856 RTM 66968 b
816+
817+
818+SB3740 Enrolled- 24 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 24 - LRB103 36856 RTM 66968 b
819+ SB3740 Enrolled - 24 - LRB103 36856 RTM 66968 b
820+1 applicant to practice as a managing broker, broker, or
821+2 residential leasing agent. Applicants for examination as a
822+3 managing broker, broker, or residential leasing agent shall be
823+4 required to pay, either to the Department or the designated
824+5 testing service, a fee covering the cost of providing the
825+6 examination. Failure to appear for the examination on the
826+7 scheduled date, at the time and place specified, after the
827+8 applicant's application for examination has been received and
828+9 acknowledged by the Department or its designated testing
829+10 service, shall result in the forfeiture of the examination
830+11 fee. An applicant shall be eligible to take the examination
831+12 only after successfully completing the education requirements
832+13 and attaining the minimum age provided for in Article 5 of this
833+14 Act. Approved pre-license education, as prescribed by this Act
834+15 for licensure as a managing broker, broker, or residential
835+16 leasing agent, shall be valid for 2 years after the date of
836+17 satisfactory completion of all required pre-license education.
837+18 Each applicant shall be required to establish compliance with
838+19 the eligibility requirements in the manner provided by the
839+20 rules promulgated for the administration of this Act.
840+21 (b) If a person who has received a passing score on the
841+22 written examination described in this Section fails to submit
842+23 an application and meet all requirements for a license under
843+24 this Act within one year after receiving a passing score on the
844+25 examination, credit for the examination shall terminate. The
845+26 person thereafter may make a new application for examination.
846+
847+
848+
849+
850+
851+ SB3740 Enrolled - 24 - LRB103 36856 RTM 66968 b
852+
853+
854+SB3740 Enrolled- 25 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 25 - LRB103 36856 RTM 66968 b
855+ SB3740 Enrolled - 25 - LRB103 36856 RTM 66968 b
856+1 (c) If an applicant has failed an examination 4
857+2 consecutive times, the applicant must repeat the pre-license
858+3 education required to sit for that examination. For the
859+4 purposes of this Section, the fifth attempt shall be the same
860+5 as the first, and the applicant must complete a new
861+6 application for examination. Approved education, as prescribed
862+7 by this Act for licensure as a managing broker, broker, or
863+8 residential leasing agent, shall be valid for 2 years after
864+9 the date of satisfactory completion of the education.
865+10 (d) The Department may employ consultants for the purposes
866+11 of preparing and conducting examinations.
867+12 (e) Each applicant shall establish the applicant's
868+13 compliance with the eligibility requirements in the manner
869+14 provided by the rules adopted for the administration of this
870+15 Act.
871+16 (Source: P.A. 101-357, eff. 8-9-19.)
872+17 (225 ILCS 454/5-45)
873+18 (Section scheduled to be repealed on January 1, 2030)
874+19 Sec. 5-45. Offices.
875+20 (a) If a sponsoring broker maintains more than one office
876+21 within the State, the sponsoring broker shall notify the
877+22 Department in a manner prescribed by the Department for each
878+23 office other than the sponsoring broker's principal place of
879+24 business. The brokerage license shall be displayed
880+25 conspicuously in each office. The name of each branch office
881+
882+
883+
884+
885+
886+ SB3740 Enrolled - 25 - LRB103 36856 RTM 66968 b
887+
888+
889+SB3740 Enrolled- 26 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 26 - LRB103 36856 RTM 66968 b
890+ SB3740 Enrolled - 26 - LRB103 36856 RTM 66968 b
891+1 shall be the same as that of the sponsoring broker's principal
892+2 office or shall clearly delineate the office's relationship
893+3 with the principal office.
894+4 (b) The sponsoring broker shall name a designated managing
895+5 broker for each office and the sponsoring broker shall be
896+6 responsible for supervising all designated managing brokers.
897+7 The sponsoring broker shall notify the Department in a manner
898+8 prescribed by the Department of the name of all designated
899+9 managing brokers of the sponsoring broker and the office or
900+10 offices they manage. Any changes in designated managing
901+11 brokers shall be reported to the Department in a manner
902+12 prescribed by the Department within 15 days of the change.
903+13 Failure to do so shall subject the sponsoring broker to
904+14 discipline under Section 20-20 of this Act.
905+15 (c) The sponsoring broker shall, within 24 hours, notify
906+16 the Department in a manner prescribed by the Department of any
907+17 opening, closing, or change in location of any office.
908+18 (d) Except as provided in this Section, each sponsoring
909+19 broker shall maintain an office, or place of business within
910+20 this State for the transaction of real estate business, shall
911+21 conspicuously display an identification sign on the outside of
912+22 the physical office of adequate size and visibility. Any
913+23 record required by this Act to be created or maintained shall
914+24 be, in the case of a physical record, securely stored and
915+25 accessible for inspection by the Department at the sponsoring
916+26 broker's principal office and, in the case of an electronic
917+
918+
919+
920+
921+
922+ SB3740 Enrolled - 26 - LRB103 36856 RTM 66968 b
923+
924+
925+SB3740 Enrolled- 27 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 27 - LRB103 36856 RTM 66968 b
926+ SB3740 Enrolled - 27 - LRB103 36856 RTM 66968 b
927+1 record, securely stored in the format in which it was
928+2 originally generated, sent, or received and accessible for
929+3 inspection by the Department by secure electronic access to
930+4 the record. Any record relating to a transaction of a special
931+5 account shall be maintained for a minimum of 5 years, and any
932+6 electronic record shall be backed up at least monthly. The
933+7 physical office or place of business shall not be located in
934+8 any retail or financial business establishment unless it is
935+9 clearly separated from the other business and is situated
936+10 within a distinct area within the establishment.
937+11 (e) A nonresident broker who is licensed in this State by
938+12 examination or pursuant to the provisions of Section 5-60 or
939+13 5-60.5 of this Act shall not be required to maintain a definite
940+14 office or place of business in this State so long as the broker
941+15 provided all of the following conditions are met:
942+16 (1) the broker maintains an active broker's license in
943+17 the broker's other state of licensure domicile;
944+18 (2) the broker maintains an office in the broker's
945+19 other state of licensure domicile; and
946+20 (3) files the broker has filed with the Department
947+21 written statements appointing the Secretary to act as the
948+22 broker's agent upon whom all judicial and other process or
949+23 legal notices directed to the licensee may be served and
950+24 agreeing to abide by all of the provisions of this Act with
951+25 respect to the broker's real estate activities within the
952+26 State of Illinois and submitting to the jurisdiction of
953+
954+
955+
956+
957+
958+ SB3740 Enrolled - 27 - LRB103 36856 RTM 66968 b
959+
960+
961+SB3740 Enrolled- 28 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 28 - LRB103 36856 RTM 66968 b
962+ SB3740 Enrolled - 28 - LRB103 36856 RTM 66968 b
963+1 the Department.
964+2 The statements under subdivision (3) of this Section shall
965+3 be in form and substance the same as those statements required
966+4 under Section 5-60 of this Act and shall operate to the same
967+5 extent.
968+6 (f) The Department may adopt rules to regulate the
969+7 operation of virtual offices that do not have a fixed
970+8 location. A broker who qualifies under subsection (e) of this
971+9 Section may also operate a virtual office in the State subject
972+10 to all requirements of this Act and the rules adopted under
973+11 this Act.
974+12 (Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
975+13 (225 ILCS 454/5-60)
976+14 (Section scheduled to be repealed on January 1, 2030)
977+15 Sec. 5-60. Managing broker licensed in another state;
978+16 broker licensed in another state; reciprocal agreements; agent
979+17 for service of process.
980+18 (a) A managing broker's license may be issued by the
981+19 Department to a managing broker or its equivalent licensed
982+20 under the laws of another state of the United States, under the
983+21 following conditions:
984+22 (1) the managing broker holds a managing broker's
985+23 license in a state that has entered into a reciprocal
986+24 agreement with the Department;
987+25 (2) the standards for that state for licensing as a
988+
989+
990+
991+
992+
993+ SB3740 Enrolled - 28 - LRB103 36856 RTM 66968 b
994+
995+
996+SB3740 Enrolled- 29 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 29 - LRB103 36856 RTM 66968 b
997+ SB3740 Enrolled - 29 - LRB103 36856 RTM 66968 b
998+1 managing broker are substantially equal to or greater than
999+2 the minimum standards in the State of Illinois;
1000+3 (3) the managing broker has been actively practicing
1001+4 as a managing broker in the managing broker's state of
1002+5 licensure for a period of not less than 2 years,
1003+6 immediately prior to the date of application;
1004+7 (4) the managing broker furnishes the Department with
1005+8 a statement under seal of the proper licensing authority
1006+9 of the state in which the managing broker is licensed
1007+10 showing that the managing broker has an active managing
1008+11 broker's license, that the managing broker is in good
1009+12 standing, and any disciplinary action taken against the
1010+13 managing broker in that state;
1011+14 (5) the managing broker passes a test on Illinois
1012+15 specific real estate brokerage laws; and
1013+16 (6) the managing broker was licensed by an examination
1014+17 in the state that has entered into a reciprocal agreement
1015+18 with the Department.
1016+19 (b) A broker's license may be issued by the Department to a
1017+20 broker or its equivalent licensed under the laws of another
1018+21 state of the United States, under the following conditions:
1019+22 (1) the broker holds a broker's license in a state
1020+23 that has entered into a reciprocal agreement with the
1021+24 Department;
1022+25 (2) the standards for that state for licensing as a
1023+26 broker are substantially equivalent to or greater than the
1024+
1025+
1026+
1027+
1028+
1029+ SB3740 Enrolled - 29 - LRB103 36856 RTM 66968 b
1030+
1031+
1032+SB3740 Enrolled- 30 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 30 - LRB103 36856 RTM 66968 b
1033+ SB3740 Enrolled - 30 - LRB103 36856 RTM 66968 b
1034+1 minimum standards in the State of Illinois;
1035+2 (3) (blank);
1036+3 (4) the broker furnishes the Department with a
1037+4 statement under seal of the proper licensing authority of
1038+5 the state in which the broker is licensed showing that the
1039+6 broker has an active broker's license, that the broker is
1040+7 in good standing, and any disciplinary action taken
1041+8 against the broker in that state;
1042+9 (5) the broker passes a test on Illinois specific real
1043+10 estate brokerage laws; and
1044+11 (6) the broker was licensed by an examination in a
1045+12 state that has entered into a reciprocal agreement with
1046+13 the Department.
1047+14 (c) (Blank).
1048+15 (d) As a condition precedent to the issuance of a license
1049+16 to a managing broker or broker pursuant to this Section, the
1050+17 managing broker or broker shall agree in writing to abide by
1051+18 all the provisions of this Act with respect to real estate
1052+19 activities within the State of Illinois and submit to the
1053+20 jurisdiction of the Department as provided in this Act. The
1054+21 agreement shall be filed with the Department and shall remain
1055+22 in force for so long as the managing broker or broker is
1056+23 licensed by this State and thereafter with respect to acts or
1057+24 omissions committed while licensed as a managing broker or
1058+25 broker in this State.
1059+26 (e) The Prior to the issuance of any license to any
1060+
1061+
1062+
1063+
1064+
1065+ SB3740 Enrolled - 30 - LRB103 36856 RTM 66968 b
1066+
1067+
1068+SB3740 Enrolled- 31 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 31 - LRB103 36856 RTM 66968 b
1069+ SB3740 Enrolled - 31 - LRB103 36856 RTM 66968 b
1070+1 managing broker or broker pursuant to this Section,
1071+2 verification of active licensure issued for the conduct of
1072+3 such business in any other state must be filed with the
1073+4 Department by the managing broker or broker, and the same fees
1074+5 must be paid as provided in this Act for the obtaining of a
1075+6 managing broker's or broker's license in this State.
1076+7 (f) Licenses previously granted under reciprocal
1077+8 agreements with other states shall remain in force so long as
1078+9 the Department has a reciprocal agreement with the state that
1079+10 includes the requirements of this Section, unless that license
1080+11 is suspended, revoked, or terminated by the Department for any
1081+12 reason provided for suspension, revocation, or termination of
1082+13 a resident licensee's license. Licenses granted under
1083+14 reciprocal agreements may be renewed in the same manner as a
1084+15 resident's license.
1085+16 (g) Prior to the issuance of a license to a nonresident
1086+17 managing broker or broker, the managing broker or broker shall
1087+18 file with the Department, in a manner prescribed by the
1088+19 Department, a designation in writing that appoints the
1089+20 Secretary to act as agent upon whom all judicial and other
1090+21 process or legal notices directed to the managing broker or
1091+22 broker may be served. Service upon the agent so designated
1092+23 shall be equivalent to personal service upon the licensee.
1093+24 Copies of the appointment, certified by the Secretary, shall
1094+25 be deemed sufficient evidence thereof and shall be admitted in
1095+26 evidence with the same force and effect as the original
1096+
1097+
1098+
1099+
1100+
1101+ SB3740 Enrolled - 31 - LRB103 36856 RTM 66968 b
1102+
1103+
1104+SB3740 Enrolled- 32 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 32 - LRB103 36856 RTM 66968 b
1105+ SB3740 Enrolled - 32 - LRB103 36856 RTM 66968 b
1106+1 thereof might be admitted. In the written designation, the
1107+2 managing broker or broker shall agree that any lawful process
1108+3 against the licensee that is served upon the agent shall be of
1109+4 the same legal force and validity as if served upon the
1110+5 licensee and that the authority shall continue in force so
1111+6 long as any liability remains outstanding in this State. Upon
1112+7 the receipt of any process or notice, the Secretary shall
1113+8 forthwith deliver a copy of the same by regular mail or email
1114+9 to the last known business address or email address of the
1115+10 licensee.
1116+11 (h) (Blank). Any person holding a valid license under this
1117+12 Section shall be eligible to obtain a managing broker's
1118+13 license or a broker's license without examination should that
1119+14 person change their state of domicile to Illinois and that
1120+15 person otherwise meets the qualifications for licensure under
1121+16 this Act.
1122+17 (i) This Section is repealed on January 1, 2026.
1123+18 (Source: P.A. 103-236, eff. 1-1-24.)
1124+19 (225 ILCS 454/5-60.1 new)
1125+20 Sec. 5-60.1. Applications for licensure based upon
1126+21 reciprocal agreements. On and after January 1, 2026 (the
1127+22 repeal date of Section 5-60), applications for licensure based
1128+23 upon reciprocal agreements shall not be accepted. Licenses
1129+24 granted under reciprocal agreements prior to January 1, 2026
1130+25 shall remain in force and may be renewed in the same manner as
1131+
1132+
1133+
1134+
1135+
1136+ SB3740 Enrolled - 32 - LRB103 36856 RTM 66968 b
1137+
1138+
1139+SB3740 Enrolled- 33 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 33 - LRB103 36856 RTM 66968 b
1140+ SB3740 Enrolled - 33 - LRB103 36856 RTM 66968 b
1141+1 provided for a broker or managing broker license under Section
1142+2 5-50 of this Act and by rule.
1143+3 (225 ILCS 454/5-60.5 new)
1144+4 Sec. 5-60.5. Managing broker licensed in another state;
1145+5 broker licensed in another state; endorsement requirements;
1146+6 agent for service of process.
1147+7 (a) A managing broker's license may be issued by the
1148+8 Department to a managing broker or its equivalent licensed
1149+9 under the laws of another state or jurisdiction of the United
1150+10 States under the following conditions:
1151+11 (1) the managing broker holds an active managing
1152+12 broker's license or its equivalent in another state or
1153+13 jurisdiction;
1154+14 (2) the managing broker has been actively practicing
1155+15 as a managing broker or its license equivalent in the
1156+16 managing broker's state or jurisdiction of licensure for a
1157+17 period of not less than 2 years immediately prior to the
1158+18 date of application;
1159+19 (3) the managing broker furnishes the Department with
1160+20 an official statement from the proper licensing authority
1161+21 of each state or jurisdiction in which the managing broker
1162+22 is licensed certifying (i) that the managing broker has an
1163+23 active license, (ii) that the managing broker is in good
1164+24 standing, and (iii) any history of discipline against the
1165+25 managing broker in that state or jurisdiction of
1166+
1167+
1168+
1169+
1170+
1171+ SB3740 Enrolled - 33 - LRB103 36856 RTM 66968 b
1172+
1173+
1174+SB3740 Enrolled- 34 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 34 - LRB103 36856 RTM 66968 b
1175+ SB3740 Enrolled - 34 - LRB103 36856 RTM 66968 b
1176+1 licensure;
1177+2 (4) the managing broker passes a test on Illinois
1178+3 specific real estate brokerage laws; and
1179+4 (5) the managing broker provides proof of successful
1180+5 completion of a pre-license endorsement course approved by
1181+6 the Department.
1182+7 (b) A broker's license may be issued by the Department to a
1183+8 broker or its equivalent licensed under the laws of another
1184+9 state or jurisdiction of the United States under the following
1185+10 conditions:
1186+11 (1) the broker holds an active broker's license or its
1187+12 equivalent in another state or jurisdiction;
1188+13 (2) the broker furnishes the Department with an
1189+14 official statement from the proper licensing authority of
1190+15 each state or jurisdiction in which the broker is licensed
1191+16 certifying (i) whether the broker has an active license,
1192+17 (ii) that the broker is in good standing, and (iii) any
1193+18 history of discipline against the broker in that state or
1194+19 jurisdiction of licensure;
1195+20 (3) the broker passes a test on Illinois specific real
1196+21 estate brokerage laws;
1197+22 (4) the broker provides proof of successful completion
1198+23 of a pre-license endorsement course approved by the
1199+24 Department; and
1200+25 (5) if the broker has been actively practicing as a
1201+26 broker or its license equivalent in any other state or
1202+
1203+
1204+
1205+
1206+
1207+ SB3740 Enrolled - 34 - LRB103 36856 RTM 66968 b
1208+
1209+
1210+SB3740 Enrolled- 35 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 35 - LRB103 36856 RTM 66968 b
1211+ SB3740 Enrolled - 35 - LRB103 36856 RTM 66968 b
1212+1 jurisdiction for less than 2 years immediately prior to
1213+2 the date of application, the broker must complete the 45
1214+3 hours of post-license broker education prescribed in this
1215+4 Act and by rule.
1216+5 (c) As a condition precedent to the issuance of a license
1217+6 to a managing broker or broker pursuant to this Section, the
1218+7 managing broker or broker shall agree to abide by all the
1219+8 provisions of this Act with respect to managing broker's or
1220+9 broker's real estate activities within the State of Illinois
1221+10 and submit to the jurisdiction of the Department as provided
1222+11 in this Act. The agreement shall remain in force for so long as
1223+12 the managing broker or broker is licensed by this State and
1224+13 thereafter with respect to acts or omissions committed while
1225+14 licensed in this State.
1226+15 (d) Prior to the issuance of a license to a nonresident
1227+16 managing broker or broker, the managing broker or broker shall
1228+17 file with the Department a designation in writing that
1229+18 appoints the Secretary to act as the managing broker's or
1230+19 broker's agent upon whom all judicial and other process or
1231+20 legal notices directed to the managing broker or broker may be
1232+21 served. Service upon the Secretary shall be equivalent to
1233+22 personal service upon the licensee. Copies of the appointment,
1234+23 certified by the Secretary, shall be deemed sufficient
1235+24 evidence and shall be admitted into evidence with the same
1236+25 force and effect as if the original is admitted.
1237+26 (e) The same fees must be paid as provided in this Act for
1238+
1239+
1240+
1241+
1242+
1243+ SB3740 Enrolled - 35 - LRB103 36856 RTM 66968 b
1244+
1245+
1246+SB3740 Enrolled- 36 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 36 - LRB103 36856 RTM 66968 b
1247+ SB3740 Enrolled - 36 - LRB103 36856 RTM 66968 b
1248+1 obtaining a managing broker's or broker's license in this
1249+2 State.
1250+3 (f) In the written designation, the managing broker or
1251+4 broker shall agree that any lawful process against the
1252+5 licensee that is served upon the agent shall be of the same
1253+6 legal force and validity as if served upon the licensee and
1254+7 that the authority shall continue in force so long as any
1255+8 liability remains outstanding in this State. Upon the receipt
1256+9 of any process or notice, the Secretary shall deliver a copy of
1257+10 the same by regular mail or email to the mailing address or
1258+11 email address of record of the licensee.
1259+12 (225 ILCS 454/5-70)
1260+13 (Section scheduled to be repealed on January 1, 2030)
1261+14 Sec. 5-70. Continuing education requirement; managing
1262+15 broker or broker.
1263+16 (a) The requirements of this Section apply to all managing
1264+17 brokers and brokers.
1265+18 (b) Except as otherwise provided in this Section, each
1266+19 person who applies for renewal of a license as a managing
1267+20 broker or broker must successfully complete 12 hours of real
1268+21 estate continuing education courses recommended by the Board
1269+22 and approved by the Department during the current term of the
1270+23 license. In addition, those licensees renewing or obtaining a
1271+24 managing broker's license must successfully complete a 12-hour
1272+25 broker management continuing education course approved by the
1273+
1274+
1275+
1276+
1277+
1278+ SB3740 Enrolled - 36 - LRB103 36856 RTM 66968 b
1279+
1280+
1281+SB3740 Enrolled- 37 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 37 - LRB103 36856 RTM 66968 b
1282+ SB3740 Enrolled - 37 - LRB103 36856 RTM 66968 b
1283+1 Department during the current term of the license. The broker
1284+2 management continuing education course must be completed in
1285+3 the classroom, or through a live, interactive webinar, or in
1286+4 an online distance education format. No license may be renewed
1287+5 except upon the successful completion of the required courses
1288+6 or their equivalent or upon a waiver of those requirements for
1289+7 good cause shown as determined by the Secretary upon the
1290+8 recommendation of the Board. The requirements of this Article
1291+9 are applicable to all managing brokers and brokers except
1292+10 those managing brokers and brokers who, during the current
1293+11 term of licensure:
1294+12 (1) serve in the armed services of the United States;
1295+13 (2) serve as an elected State or federal official;
1296+14 (3) serve as a full-time employee of the Department;
1297+15 or
1298+16 (4) are admitted to practice law pursuant to Illinois
1299+17 Supreme Court rule.
1300+18 (c) (Blank).
1301+19 (d) A person receiving an initial license during the 90
1302+20 days before the renewal date shall not be required to complete
1303+21 the continuing education courses provided for in subsection
1304+22 (b) of this Section as a condition of initial license renewal.
1305+23 (e) The continuing education requirement for brokers and
1306+24 managing brokers shall consist of a single core curriculum,
1307+25 which must include at least 2 credit hours of fair housing
1308+26 training, and an elective curriculum, to be recommended by the
1309+
1310+
1311+
1312+
1313+
1314+ SB3740 Enrolled - 37 - LRB103 36856 RTM 66968 b
1315+
1316+
1317+SB3740 Enrolled- 38 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 38 - LRB103 36856 RTM 66968 b
1318+ SB3740 Enrolled - 38 - LRB103 36856 RTM 66968 b
1319+1 Board and approved by the Department in accordance with this
1320+2 subsection. With the exception of the fair housing training,
1321+3 the The core curriculum shall not be further divided into
1322+4 subcategories or divisions of instruction. The core curriculum
1323+5 shall consist of 6 total 4 hours during the current term of the
1324+6 license on subjects that may include, but are not limited to,
1325+7 advertising, agency, disclosures, escrow, fair housing,
1326+8 residential leasing agent management, and license law, and
1327+9 must include at least 2 credit hours of fair housing training.
1328+10 The amount of time allotted to each of the remaining these
1329+11 subjects shall be recommended by the Board and determined by
1330+12 the Department.
1331+13 The Department, upon the recommendation of the Board,
1332+14 shall review the core curriculum every 4 years, at a minimum,
1333+15 and shall revise the curriculum if necessary. However, the
1334+16 core curriculum's total hourly requirement shall only be
1335+17 subject to change by amendment of this subsection, and any
1336+18 change to the core curriculum shall not be effective for a
1337+19 period of 6 months after such change is made by the Department.
1338+20 The Department shall provide notice to all approved education
1339+21 providers of any changes to the core curriculum. When
1340+22 determining whether revisions of the core curriculum's
1341+23 subjects or specific time requirements are necessary, the
1342+24 Board shall consider recent changes in applicable laws, new
1343+25 laws, and areas of the license law and the Department policy
1344+26 that the Board deems appropriate, and any other subject areas
1345+
1346+
1347+
1348+
1349+
1350+ SB3740 Enrolled - 38 - LRB103 36856 RTM 66968 b
1351+
1352+
1353+SB3740 Enrolled- 39 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 39 - LRB103 36856 RTM 66968 b
1354+ SB3740 Enrolled - 39 - LRB103 36856 RTM 66968 b
1355+1 the Board deems timely and applicable in order to prevent
1356+2 violations of this Act and to protect the public. In
1357+3 establishing a recommendation to the Department regarding the
1358+4 elective curriculum, the Board shall consider subjects that
1359+5 cover the various aspects of the practice of real estate that
1360+6 are covered under the scope of this Act.
1361+7 (f) The subject areas of continuing education courses
1362+8 recommended by the Board and approved by the Department shall
1363+9 be meant to protect the professionalism of the industry, the
1364+10 consumer, and the public and prevent violations of this Act
1365+11 and may include, without limitation, the following:
1366+12 (1) license law and escrow;
1367+13 (2) antitrust;
1368+14 (3) fair housing;
1369+15 (4) agency;
1370+16 (5) appraisal;
1371+17 (6) property management;
1372+18 (7) residential brokerage;
1373+19 (8) farm property management;
1374+20 (9) transaction management rights and duties of
1375+21 parties in a transaction;
1376+22 (10) commercial brokerage and leasing;
1377+23 (11) real estate financing;
1378+24 (12) disclosures;
1379+25 (13) residential leasing agent management;
1380+26 (14) advertising;
1381+
1382+
1383+
1384+
1385+
1386+ SB3740 Enrolled - 39 - LRB103 36856 RTM 66968 b
1387+
1388+
1389+SB3740 Enrolled- 40 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 40 - LRB103 36856 RTM 66968 b
1390+ SB3740 Enrolled - 40 - LRB103 36856 RTM 66968 b
1391+1 (15) broker supervision and designated managing broker
1392+2 responsibility;
1393+3 (16) professional conduct; and
1394+4 (17) use of technology; and .
1395+5 (18) diversity, equity, and inclusion.
1396+6 (g) In lieu of credit for those courses listed in
1397+7 subsection (f) of this Section, credit may be earned for
1398+8 serving as a licensed instructor in an approved course of
1399+9 continuing education. The amount of credit earned for teaching
1400+10 a course shall be the amount of continuing education credit
1401+11 for which the course is approved for licensees taking the
1402+12 course.
1403+13 (h) Credit hours may be earned for self-study programs
1404+14 approved by the Department.
1405+15 (i) A managing broker or broker may earn credit for a
1406+16 specific continuing education course only once during the
1407+17 current term of the license.
1408+18 (j) No more than 12 hours of continuing education credit
1409+19 may be taken in one calendar day.
1410+20 (k) To promote the offering of a uniform and consistent
1411+21 course content, the Department may provide for the development
1412+22 of a single broker management course to be offered by all
1413+23 education providers who choose to offer the broker management
1414+24 continuing education course. The Department may contract for
1415+25 the development of the 12-hour broker management continuing
1416+26 education course with an outside vendor or consultant and, if
1417+
1418+
1419+
1420+
1421+
1422+ SB3740 Enrolled - 40 - LRB103 36856 RTM 66968 b
1423+
1424+
1425+SB3740 Enrolled- 41 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 41 - LRB103 36856 RTM 66968 b
1426+ SB3740 Enrolled - 41 - LRB103 36856 RTM 66968 b
1427+1 the course is developed in this manner, the Department or the
1428+2 outside consultant shall license the use of that course to all
1429+3 approved education providers who wish to provide the course.
1430+4 (l) Except as specifically provided in this Act,
1431+5 continuing education credit hours may not be earned for
1432+6 completion of pre-license or post-license courses. The courses
1433+7 comprising the approved 45-hour post-license curriculum for
1434+8 broker licensees shall satisfy the continuing education
1435+9 requirement for the initial broker license term. The approved
1436+10 45-hour managing broker pre-license brokerage administration
1437+11 and management course shall satisfy the 12-hour broker
1438+12 management continuing education requirement for the initial
1439+13 managing broker license term.
1440+14 (Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
1441+15 (225 ILCS 454/10-10)
1442+16 (Section scheduled to be repealed on January 1, 2030)
1443+17 Sec. 10-10. Disclosure of compensation.
1444+18 (a) A licensee must disclose to a client the sponsoring
1445+19 broker's compensation and policy, including the terms of
1446+20 compensation and any amounts offered with regard to
1447+21 cooperating with brokers who represent other parties in a
1448+22 transaction.
1449+23 (b) A licensee must disclose to a client all sources of
1450+24 compensation related to the transaction received by the
1451+25 licensee from a third party.
1452+
1453+
1454+
1455+
1456+
1457+ SB3740 Enrolled - 41 - LRB103 36856 RTM 66968 b
1458+
1459+
1460+SB3740 Enrolled- 42 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 42 - LRB103 36856 RTM 66968 b
1461+ SB3740 Enrolled - 42 - LRB103 36856 RTM 66968 b
1462+1 (c) If a licensee refers a client to a third party in which
1463+2 the licensee has greater than a 1% ownership interest or from
1464+3 which the licensee receives or may receive dividends or other
1465+4 profit sharing distributions, other than a publicly held or
1466+5 traded company, for the purpose of the client obtaining
1467+6 services related to the transaction, then the licensee shall
1468+7 disclose that fact to the client at the time of making the
1469+8 referral.
1470+9 (d) If in any one transaction a sponsoring broker receives
1471+10 compensation from both the buyer and seller or lessee and
1472+11 lessor of real estate, the sponsoring broker shall disclose in
1473+12 writing to a client the fact that the compensation is being
1474+13 paid by both buyer and seller or lessee and lessor.
1475+14 (e) Nothing in the Act shall prohibit the cooperation with
1476+15 or a payment of compensation to an individual domiciled in any
1477+16 other state or country who is licensed as a broker in that
1478+17 individual's his or her state or country of domicile or to a
1479+18 resident of a country that does not require a person to be
1480+19 licensed to act as a broker if the person complies with the
1481+20 laws of the country in which that person resides and practices
1482+21 there as a broker.
1483+22 (Source: P.A. 101-357, eff. 8-9-19.)
1484+23 (225 ILCS 454/10-20)
1485+24 (Section scheduled to be repealed on January 1, 2030)
1486+25 Sec. 10-20. Sponsoring broker; employment agreement.
1487+
1488+
1489+
1490+
1491+
1492+ SB3740 Enrolled - 42 - LRB103 36856 RTM 66968 b
1493+
1494+
1495+SB3740 Enrolled- 43 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 43 - LRB103 36856 RTM 66968 b
1496+ SB3740 Enrolled - 43 - LRB103 36856 RTM 66968 b
1497+1 (a) A licensee may perform activities as a licensee only
1498+2 for the licensee's his or her sponsoring broker. A licensee
1499+3 must have only one sponsoring broker at any one time.
1500+4 (b) Every broker who employs licensees or has an
1501+5 independent contractor relationship with a licensee shall have
1502+6 a written employment or independent contractor agreement with
1503+7 each such licensee. The broker having this written employment
1504+8 or independent contractor agreement with the licensee must be
1505+9 that licensee's sponsoring broker.
1506+10 (c) Every sponsoring broker must have a written employment
1507+11 or independent contractor agreement with each licensee the
1508+12 broker sponsors. The agreement shall address the employment or
1509+13 independent contractor relationship terms, including without
1510+14 limitation supervision, duties, compensation, and termination
1511+15 process.
1512+16 (d) (Blank).
1513+17 (d-5) If a written agreement provides for an independent
1514+18 contractor relationship that clearly states and establishes
1515+19 that relationship, the specific provisions of this Act shall
1516+20 control for licensee's conduct of brokerage activities.
1517+21 (e) Notwithstanding the fact that a sponsoring broker has
1518+22 an employment or independent contractor agreement with a
1519+23 licensee, a sponsoring broker may pay compensation directly to
1520+24 a business entity solely owned by that licensee that has been
1521+25 formed for the purpose of receiving compensation earned by the
1522+26 licensee. A business entity that receives compensation from a
1523+
1524+
1525+
1526+
1527+
1528+ SB3740 Enrolled - 43 - LRB103 36856 RTM 66968 b
1529+
1530+
1531+SB3740 Enrolled- 44 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 44 - LRB103 36856 RTM 66968 b
1532+ SB3740 Enrolled - 44 - LRB103 36856 RTM 66968 b
1533+1 sponsoring broker as provided for in this subsection (e) shall
1534+2 not be required to be licensed under this Act and must either
1535+3 be owned solely by the licensee or by the licensee together
1536+4 with the licensee's spouse, but only if the spouse and
1537+5 licensee are both licensed and sponsored by the same
1538+6 sponsoring broker or the spouse is not also licensed.
1539+7 (Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)
1540+8 (225 ILCS 454/15-35)
1541+9 (Section scheduled to be repealed on January 1, 2030)
1542+10 Sec. 15-35. Agency relationship disclosure.
1543+11 (a) A licensee acting as a designated agent shall advise a
1544+12 consumer in writing, no later than beginning to work as a
1545+13 designated agent on behalf of the consumer, of the following:
1546+14 (1) That a designated agency relationship exists,
1547+15 unless there is written agreement between the sponsoring
1548+16 broker and the consumer providing for a different agency
1549+17 relationship; and
1550+18 (2) The name or names of the designated agent or
1551+19 agents on the written disclosure, which must can be
1552+20 included as part of in a brokerage agreement or be a
1553+21 separate document, a copy of which is retained by the
1554+22 sponsoring broker for the licensee and company records,
1555+23 and a copy of which must be provided to the consumer or
1556+24 client.
1557+25 (b) The licensee representing the consumer shall discuss
1558+
1559+
1560+
1561+
1562+
1563+ SB3740 Enrolled - 44 - LRB103 36856 RTM 66968 b
1564+
1565+
1566+SB3740 Enrolled- 45 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 45 - LRB103 36856 RTM 66968 b
1567+ SB3740 Enrolled - 45 - LRB103 36856 RTM 66968 b
1568+1 with the consumer the sponsoring broker's compensation and
1569+2 policy, including the terms of compensation and any amounts
1570+3 offered with regard to cooperating with brokers who represent
1571+4 other parties in a transaction.
1572+5 (c) A licensee shall disclose in writing to a customer
1573+6 that the licensee is not acting as the agent of the customer at
1574+7 a time intended to prevent disclosure of confidential
1575+8 information from a customer to a licensee, but in no event
1576+9 later than the preparation of an offer to purchase or lease
1577+10 real property.
1578+11 (Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
1579+12 (225 ILCS 454/15-50)
1580+13 (Section scheduled to be repealed on January 1, 2030)
1581+14 Sec. 15-50. Brokerage agreements; designated Designated
1582+15 agency.
1583+16 (a) A sponsoring broker entering into a brokerage
1584+17 relationship an agreement with any person for the listing of
1585+18 property or for the purpose of representing any person in the
1586+19 buying, selling, exchanging, renting, or leasing of real
1587+20 estate shall set forth the terms of that relationship in a
1588+21 written brokerage agreement. The brokerage agreement shall
1589+22 specifically designate those licensees employed by or
1590+23 affiliated with the sponsoring broker who will be acting as
1591+24 legal agents of that person to the exclusion of all other
1592+25 licensees employed by or affiliated with the sponsoring
1593+
1594+
1595+
1596+
1597+
1598+ SB3740 Enrolled - 45 - LRB103 36856 RTM 66968 b
1599+
1600+
1601+SB3740 Enrolled- 46 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 46 - LRB103 36856 RTM 66968 b
1602+ SB3740 Enrolled - 46 - LRB103 36856 RTM 66968 b
1603+1 broker. A sponsoring broker entering into an agreement under
1604+2 the provisions of this Section shall not be considered to be
1605+3 acting for more than one party in a transaction if the
1606+4 licensees are specifically designated as legal agents of a
1607+5 person and are not representing more than one party in a
1608+6 transaction.
1609+7 (a-5) Nothing in this Section prevents a client from
1610+8 seeking to enforce an oral agreement. The absence of a written
1611+9 agreement does not create an affirmative defense (i) to the
1612+10 existence, or lack thereof, of an agreement between the
1613+11 parties; or (ii) as to whether licensed activity was performed
1614+12 under this Act. This Section does not prevent a court from
1615+13 imposing legal or equitable remedies.
1616+14 (b) A sponsoring broker designating affiliated licensees
1617+15 to act as agents of clients shall take ordinary and necessary
1618+16 care to protect confidential information disclosed by a client
1619+17 to the his or her designated agent.
1620+18 (c) A designated agent may disclose to the designated
1621+19 agent's his or her sponsoring broker or persons specified by
1622+20 the sponsoring broker confidential information of a client for
1623+21 the purpose of seeking advice or assistance for the benefit of
1624+22 the client in regard to a possible transaction. Confidential
1625+23 information shall not be disclosed by the sponsoring broker or
1626+24 other specified representative of the sponsoring broker unless
1627+25 otherwise required by this Act or requested or permitted by
1628+26 the client who originally disclosed the confidential
1629+
1630+
1631+
1632+
1633+
1634+ SB3740 Enrolled - 46 - LRB103 36856 RTM 66968 b
1635+
1636+
1637+SB3740 Enrolled- 47 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 47 - LRB103 36856 RTM 66968 b
1638+ SB3740 Enrolled - 47 - LRB103 36856 RTM 66968 b
1639+1 information.
1640+2 (Source: P.A. 101-357, eff. 8-9-19.)
1641+3 (225 ILCS 454/20-20)
1642+4 (Section scheduled to be repealed on January 1, 2030)
1643+5 Sec. 20-20. Nature of and grounds for discipline.
1644+6 (a) The Department may refuse to issue or renew a license,
1645+7 may place on probation, suspend, or revoke any license,
1646+8 reprimand, or take any other disciplinary or non-disciplinary
1647+9 action as the Department may deem proper and impose a fine not
1648+10 to exceed $25,000 for each violation upon any licensee or
1649+11 applicant under this Act or any person who holds oneself out as
1650+12 an applicant or licensee or against a licensee in handling
1651+13 one's own property, whether held by deed, option, or
1652+14 otherwise, for any one or any combination of the following
1653+15 causes:
1654+16 (1) Fraud or misrepresentation in applying for, or
1655+17 procuring, a license under this Act or in connection with
1656+18 applying for renewal of a license under this Act.
1657+19 (2) The licensee's conviction of or plea of guilty or
1658+20 plea of nolo contendere, as set forth in subsection (e) of
1659+21 Section 5-25, to: (A) a felony or misdemeanor in this
1660+22 State or any other jurisdiction; (B) the entry of an
1661+23 administrative sanction by a government agency in this
1662+24 State or any other jurisdiction; or (C) any conviction of
1663+25 or plea of guilty or plea of nolo contendere to a any crime
1664+
1665+
1666+
1667+
1668+
1669+ SB3740 Enrolled - 47 - LRB103 36856 RTM 66968 b
1670+
1671+
1672+SB3740 Enrolled- 48 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 48 - LRB103 36856 RTM 66968 b
1673+ SB3740 Enrolled - 48 - LRB103 36856 RTM 66968 b
1674+1 that subjects the licensee to compliance with the
1675+2 requirements of the Sex Offender Registration Act.
1676+3 (3) Inability to practice the profession with
1677+4 reasonable judgment, skill, or safety as a result of a
1678+5 physical illness, mental illness, or disability.
1679+6 (4) Practice under this Act as a licensee in a retail
1680+7 sales establishment from an office, desk, or space that is
1681+8 not separated from the main retail business and located
1682+9 within a separate and distinct area within the
1683+10 establishment.
1684+11 (5) Having been disciplined by another state, the
1685+12 District of Columbia, a territory, a foreign nation, or a
1686+13 governmental agency authorized to impose discipline if at
1687+14 least one of the grounds for that discipline is the same as
1688+15 or the equivalent of one of the grounds for which a
1689+16 licensee may be disciplined under this Act. A certified
1690+17 copy of the record of the action by the other state or
1691+18 jurisdiction shall be prima facie evidence thereof.
1692+19 (6) Engaging in the practice of real estate brokerage
1693+20 without a license or after the licensee's license or
1694+21 temporary permit was expired or while the license was
1695+22 inactive, revoked, or suspended.
1696+23 (7) Cheating on or attempting to subvert the Real
1697+24 Estate License Exam or a continuing education course or
1698+25 examination.
1699+26 (8) Aiding or abetting an applicant to subvert or
1700+
1701+
1702+
1703+
1704+
1705+ SB3740 Enrolled - 48 - LRB103 36856 RTM 66968 b
1706+
1707+
1708+SB3740 Enrolled- 49 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 49 - LRB103 36856 RTM 66968 b
1709+ SB3740 Enrolled - 49 - LRB103 36856 RTM 66968 b
1710+1 cheat on the Real Estate License Exam or continuing
1711+2 education exam administered pursuant to this Act.
1712+3 (9) Advertising that is inaccurate, misleading, or
1713+4 contrary to the provisions of the Act.
1714+5 (10) Making any substantial misrepresentation or
1715+6 untruthful advertising.
1716+7 (11) Making any false promises of a character likely
1717+8 to influence, persuade, or induce.
1718+9 (12) Pursuing a continued and flagrant course of
1719+10 misrepresentation or the making of false promises through
1720+11 licensees, employees, agents, advertising, or otherwise.
1721+12 (13) Any misleading or untruthful advertising, or
1722+13 using any trade name or insignia of membership in any real
1723+14 estate organization of which the licensee is not a member.
1724+15 (14) Acting for more than one party in a transaction
1725+16 without providing written notice to all parties for whom
1726+17 the licensee acts.
1727+18 (15) Representing or attempting to represent, or
1728+19 performing licensed activities for, a broker other than
1729+20 the sponsoring broker.
1730+21 (16) Failure to account for or to remit any moneys or
1731+22 documents coming into the licensee's possession that
1732+23 belong to others.
1733+24 (17) Failure to maintain and deposit in a special
1734+25 account, separate and apart from personal and other
1735+26 business accounts, all escrow moneys belonging to others
1736+
1737+
1738+
1739+
1740+
1741+ SB3740 Enrolled - 49 - LRB103 36856 RTM 66968 b
1742+
1743+
1744+SB3740 Enrolled- 50 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 50 - LRB103 36856 RTM 66968 b
1745+ SB3740 Enrolled - 50 - LRB103 36856 RTM 66968 b
1746+1 entrusted to a licensee while acting as a broker, escrow
1747+2 agent, or temporary custodian of the funds of others or
1748+3 failure to maintain all escrow moneys on deposit in the
1749+4 account until the transactions are consummated or
1750+5 terminated, except to the extent that the moneys, or any
1751+6 part thereof, shall be:
1752+7 (A) disbursed prior to the consummation or
1753+8 termination (i) in accordance with the written
1754+9 direction of the principals to the transaction or
1755+10 their duly authorized agents, (ii) in accordance with
1756+11 directions providing for the release, payment, or
1757+12 distribution of escrow moneys contained in any written
1758+13 contract signed by the principals to the transaction
1759+14 or their duly authorized agents, or (iii) pursuant to
1760+15 an order of a court of competent jurisdiction; or
1761+16 (B) deemed abandoned and transferred to the Office
1762+17 of the State Treasurer to be handled as unclaimed
1763+18 property pursuant to the Revised Uniform Unclaimed
1764+19 Property Act. Escrow moneys may be deemed abandoned
1765+20 under this subparagraph (B) only: (i) in the absence
1766+21 of disbursement under subparagraph (A); (ii) in the
1767+22 absence of notice of the filing of any claim in a court
1768+23 of competent jurisdiction; and (iii) if 6 months have
1769+24 elapsed after the receipt of a written demand for the
1770+25 escrow moneys from one of the principals to the
1771+26 transaction or the principal's duly authorized agent.
1772+
1773+
1774+
1775+
1776+
1777+ SB3740 Enrolled - 50 - LRB103 36856 RTM 66968 b
1778+
1779+
1780+SB3740 Enrolled- 51 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 51 - LRB103 36856 RTM 66968 b
1781+ SB3740 Enrolled - 51 - LRB103 36856 RTM 66968 b
1782+1 The account shall be noninterest bearing, unless the
1783+2 character of the deposit is such that payment of interest
1784+3 thereon is otherwise required by law or unless the
1785+4 principals to the transaction specifically require, in
1786+5 writing, that the deposit be placed in an interest-bearing
1787+6 account.
1788+7 (18) Failure to make available to the Department all
1789+8 escrow records and related documents maintained in
1790+9 connection with the practice of real estate within 24
1791+10 hours of a request for those documents by Department
1792+11 personnel.
1793+12 (19) Failing to furnish copies upon request of
1794+13 documents relating to a real estate transaction to a party
1795+14 who has executed that document.
1796+15 (20) Failure of a sponsoring broker or licensee to
1797+16 timely provide sponsorship or termination of sponsorship
1798+17 information to the Department.
1799+18 (21) Engaging in dishonorable, unethical, or
1800+19 unprofessional conduct of a character likely to deceive,
1801+20 defraud, or harm the public, including, but not limited
1802+21 to, conduct set forth in rules adopted by the Department.
1803+22 (22) Commingling the money or property of others with
1804+23 the licensee's own money or property.
1805+24 (23) Employing any person on a purely temporary or
1806+25 single deal basis as a means of evading the law regarding
1807+26 payment of commission to nonlicensees on some contemplated
1808+
1809+
1810+
1811+
1812+
1813+ SB3740 Enrolled - 51 - LRB103 36856 RTM 66968 b
1814+
1815+
1816+SB3740 Enrolled- 52 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 52 - LRB103 36856 RTM 66968 b
1817+ SB3740 Enrolled - 52 - LRB103 36856 RTM 66968 b
1818+1 transactions.
1819+2 (24) Permitting the use of one's license as a broker
1820+3 to enable a residential leasing agent or unlicensed person
1821+4 to operate a real estate business without actual
1822+5 participation therein and control thereof by the broker.
1823+6 (25) Any other conduct, whether of the same or a
1824+7 different character from that specified in this Section,
1825+8 that constitutes dishonest dealing.
1826+9 (25.5) Failing to have a written brokerage agreement
1827+10 between the sponsoring broker and a client for whom the
1828+11 designated agent is working.
1829+12 (26) Displaying a "for rent" or "for sale" sign on any
1830+13 property without the written consent of an owner or the
1831+14 owner's duly authorized agent or advertising by any means
1832+15 that any property is for sale or for rent without the
1833+16 written consent of the owner or the owner's authorized
1834+17 agent.
1835+18 (27) Failing to provide information requested by the
1836+19 Department, or otherwise respond to that request, within
1837+20 30 days of the request.
1838+21 (28) Advertising by means of a blind advertisement,
1839+22 except as otherwise permitted in Section 10-30 of this
1840+23 Act.
1841+24 (29) A licensee under this Act or an unlicensed
1842+25 individual offering guaranteed sales plans, as defined in
1843+26 Section 10-50, except to the extent set forth in Section
1844+
1845+
1846+
1847+
1848+
1849+ SB3740 Enrolled - 52 - LRB103 36856 RTM 66968 b
1850+
1851+
1852+SB3740 Enrolled- 53 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 53 - LRB103 36856 RTM 66968 b
1853+ SB3740 Enrolled - 53 - LRB103 36856 RTM 66968 b
1854+1 10-50.
1855+2 (30) Influencing or attempting to influence, by any
1856+3 words or acts, a prospective seller, purchaser, occupant,
1857+4 landlord, or tenant of real estate, in connection with
1858+5 viewing, buying, or leasing real estate, so as to promote
1859+6 or tend to promote the continuance or maintenance of
1860+7 racially and religiously segregated housing or so as to
1861+8 retard, obstruct, or discourage racially integrated
1862+9 housing on or in any street, block, neighborhood, or
1863+10 community.
1864+11 (31) Engaging in any act that constitutes a violation
1865+12 of any provision of Article 3 of the Illinois Human Rights
1866+13 Act, whether or not a complaint has been filed with or
1867+14 adjudicated by the Human Rights Commission.
1868+15 (32) Inducing any party to a contract of sale or lease
1869+16 or brokerage agreement to break the contract of sale or
1870+17 lease or brokerage agreement for the purpose of
1871+18 substituting, in lieu thereof, a new contract for sale or
1872+19 lease or brokerage agreement with a third party.
1873+20 (33) Negotiating a sale, exchange, or lease of real
1874+21 estate directly with any person if the licensee knows that
1875+22 the person has an exclusive brokerage agreement with
1876+23 another broker, unless specifically authorized by that
1877+24 broker.
1878+25 (34) When a licensee is also an attorney, acting as
1879+26 the attorney for either the buyer or the seller in the same
1880+
1881+
1882+
1883+
1884+
1885+ SB3740 Enrolled - 53 - LRB103 36856 RTM 66968 b
1886+
1887+
1888+SB3740 Enrolled- 54 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 54 - LRB103 36856 RTM 66968 b
1889+ SB3740 Enrolled - 54 - LRB103 36856 RTM 66968 b
1890+1 transaction in which the licensee is acting or has acted
1891+2 as a managing broker or broker.
1892+3 (35) Advertising or offering merchandise or services
1893+4 as free if any conditions or obligations necessary for
1894+5 receiving the merchandise or services are not disclosed in
1895+6 the same advertisement or offer. These conditions or
1896+7 obligations include without limitation the requirement
1897+8 that the recipient attend a promotional activity or visit
1898+9 a real estate site. As used in this subdivision (35),
1899+10 "free" includes terms such as "award", "prize", "no
1900+11 charge", "free of charge", "without charge", and similar
1901+12 words or phrases that reasonably lead a person to believe
1902+13 that one may receive or has been selected to receive
1903+14 something of value, without any conditions or obligations
1904+15 on the part of the recipient.
1905+16 (36) (Blank).
1906+17 (37) Violating the terms of any order issued by the
1907+18 Department.
1908+19 (38) Paying or failing to disclose compensation in
1909+20 violation of Article 10 of this Act.
1910+21 (39) Requiring a party to a transaction who is not a
1911+22 client of the licensee to allow the licensee to retain a
1912+23 portion of the escrow moneys for payment of the licensee's
1913+24 commission or expenses as a condition for release of the
1914+25 escrow moneys to that party.
1915+26 (40) Disregarding or violating any provision of this
1916+
1917+
1918+
1919+
1920+
1921+ SB3740 Enrolled - 54 - LRB103 36856 RTM 66968 b
1922+
1923+
1924+SB3740 Enrolled- 55 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 55 - LRB103 36856 RTM 66968 b
1925+ SB3740 Enrolled - 55 - LRB103 36856 RTM 66968 b
1926+1 Act or the published rules adopted by the Department to
1927+2 enforce this Act or aiding or abetting any individual,
1928+3 foreign or domestic partnership, registered limited
1929+4 liability partnership, limited liability company,
1930+5 corporation, or other business entity in disregarding any
1931+6 provision of this Act or the published rules adopted by
1932+7 the Department to enforce this Act.
1933+8 (41) Failing to provide the minimum services required
1934+9 by Section 15-75 of this Act when acting under an
1935+10 exclusive brokerage agreement.
1936+11 (42) Habitual or excessive use of or addiction to
1937+12 alcohol, narcotics, stimulants, or any other chemical
1938+13 agent or drug that results in a licensee's managing
1939+14 broker, broker, or residential leasing agent's inability
1940+15 to practice with reasonable skill or safety, which may
1941+16 result in significant harm to the public.
1942+17 (43) Enabling, aiding, or abetting an auctioneer, as
1943+18 defined in the Auction License Act, to conduct a real
1944+19 estate auction in a manner that is in violation of this
1945+20 Act.
1946+21 (44) Permitting any residential leasing agent or
1947+22 temporary residential leasing agent permit holder to
1948+23 engage in activities that require a broker's or managing
1949+24 broker's license.
1950+25 (45) Failing to notify the Department, within 30 days
1951+26 after the occurrence, of the information required in
1952+
1953+
1954+
1955+
1956+
1957+ SB3740 Enrolled - 55 - LRB103 36856 RTM 66968 b
1958+
1959+
1960+SB3740 Enrolled- 56 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 56 - LRB103 36856 RTM 66968 b
1961+ SB3740 Enrolled - 56 - LRB103 36856 RTM 66968 b
1962+1 subsection (e) of Section 5-25.
1963+2 (46) A designated managing broker's failure to provide
1964+3 an appropriate written company policy or failure to
1965+4 perform any of the duties set forth in Section 10-55.
1966+5 (47) Filing liens or recording written instruments in
1967+6 any county in the State on noncommercial, residential real
1968+7 property that relate to a broker's compensation for
1969+8 licensed activity under the Act.
1970+9 (b) The Department may refuse to issue or renew or may
1971+10 suspend the license of any person who fails to file a return,
1972+11 pay the tax, penalty or interest shown in a filed return, or
1973+12 pay any final assessment of tax, penalty, or interest, as
1974+13 required by any tax Act administered by the Department of
1975+14 Revenue, until such time as the requirements of that tax Act
1976+15 are satisfied in accordance with subsection (g) of Section
1977+16 2105-15 of the Department of Professional Regulation Law of
1978+17 the Civil Administrative Code of Illinois.
1979+18 (c) (Blank).
1980+19 (d) In cases where the Department of Healthcare and Family
1981+20 Services (formerly Department of Public Aid) has previously
1982+21 determined that a licensee or a potential licensee is more
1983+22 than 30 days delinquent in the payment of child support and has
1984+23 subsequently certified the delinquency to the Department may
1985+24 refuse to issue or renew or may revoke or suspend that person's
1986+25 license or may take other disciplinary action against that
1987+26 person based solely upon the certification of delinquency made
1988+
1989+
1990+
1991+
1992+
1993+ SB3740 Enrolled - 56 - LRB103 36856 RTM 66968 b
1994+
1995+
1996+SB3740 Enrolled- 57 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 57 - LRB103 36856 RTM 66968 b
1997+ SB3740 Enrolled - 57 - LRB103 36856 RTM 66968 b
1998+1 by the Department of Healthcare and Family Services in
1999+2 accordance with item (5) of subsection (a) of Section 2105-15
2000+3 of the Department of Professional Regulation Law of the Civil
2001+4 Administrative Code of Illinois.
2002+5 (e) (Blank).
2003+6 (Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
2004+7 (225 ILCS 454/20-20.1)
2005+8 (Section scheduled to be repealed on January 1, 2030)
2006+9 Sec. 20-20.1. Citations.
2007+10 (a) The Department may adopt rules to permit the issuance
2008+11 of citations to any licensee for failure to comply with the
2009+12 continuing education and post-license education requirements
2010+13 set forth in this Act or as adopted by rule. The citation shall
2011+14 be issued to the licensee, and a copy shall be sent to the
2012+15 licensee's designated managing broker and sponsoring broker.
2013+16 The citation shall contain the licensee's name and address,
2014+17 the licensee's license number, the number of required hours of
2015+18 continuing education or post-license education that have not
2016+19 been successfully completed by the licensee's renewal
2017+20 deadline, and the penalty imposed, which shall not exceed
2018+21 $2,000. The issuance of any such citation shall not excuse the
2019+22 licensee from completing all continuing education or
2020+23 post-license education required for that term of licensure.
2021+24 (b) Service of a citation shall be made by in person,
2022+25 electronically, or by mail to the licensee at the licensee's
2023+
2024+
2025+
2026+
2027+
2028+ SB3740 Enrolled - 57 - LRB103 36856 RTM 66968 b
2029+
2030+
2031+SB3740 Enrolled- 58 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 58 - LRB103 36856 RTM 66968 b
2032+ SB3740 Enrolled - 58 - LRB103 36856 RTM 66968 b
2033+1 address of record or email address of record, and must clearly
2034+2 state that if the cited licensee wishes to dispute the
2035+3 citation, the cited licensee may make a written request,
2036+4 within 30 days after the citation is served, for a hearing
2037+5 before the Department. If the cited licensee does not request
2038+6 a hearing within 30 days after the citation is served, then the
2039+7 citation shall become a final, non-disciplinary order shall be
2040+8 entered, and any fine imposed is due and payable within 30 60
2041+9 days after the entry of that final order. If the cited licensee
2042+10 requests a hearing within 30 days after the citation is
2043+11 served, the Department shall afford the cited licensee a
2044+12 hearing conducted in the same manner as a hearing provided for
2045+13 in this Act for any violation of this Act and shall determine
2046+14 whether the cited licensee committed the violation as charged
2047+15 and whether the fine as levied is warranted. If the violation
2048+16 is found, any fine shall constitute non-public discipline and
2049+17 be due and payable within 30 days after the order of the
2050+18 Secretary, which shall constitute a final order of the
2051+19 Department. No change in license status may be made by the
2052+20 Department until such time as a final order of the Department
2053+21 has been issued.
2054+22 (c) Payment of a fine that has been assessed pursuant to
2055+23 this Section shall not constitute disciplinary action
2056+24 reportable on the Department's website or elsewhere unless a
2057+25 licensee has previously received 2 or more citations and has
2058+26 been assessed 2 or more fines.
2059+
2060+
2061+
2062+
2063+
2064+ SB3740 Enrolled - 58 - LRB103 36856 RTM 66968 b
2065+
2066+
2067+SB3740 Enrolled- 59 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 59 - LRB103 36856 RTM 66968 b
2068+ SB3740 Enrolled - 59 - LRB103 36856 RTM 66968 b
2069+1 (d) Nothing in this Section shall prohibit or limit the
2070+2 Department from taking further action pursuant to this Act and
2071+3 rules for additional, repeated, or continuing violations.
2072+4 (Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
2073+5 (225 ILCS 454/20-50)
2074+6 (Section scheduled to be repealed on January 1, 2030)
2075+7 Sec. 20-50. Illegal discrimination. When there has been
2076+8 an adjudication in a civil or criminal proceeding that a
2077+9 licensee has illegally discriminated while engaged in any
2078+10 activity for which a license is required under this Act, the
2079+11 Department, following notice to the licensee and a hearing in
2080+12 accordance with the provisions of Section 20-60, and upon the
2081+13 recommendation of the Board as to the nature and extent of the
2082+14 suspension or revocation, shall, in accordance with the
2083+15 provisions of Section 20-64, suspend or revoke the license of
2084+16 that licensee in a timely manner, unless the adjudication is
2085+17 in the appeal process. The finding or judgment of the civil or
2086+18 criminal proceeding is a matter of record; the merits of which
2087+19 shall not be challenged in a request for a hearing by the
2088+20 licensee. When there has been an order in an administrative
2089+21 proceeding finding that a licensee has illegally discriminated
2090+22 while engaged in any activity for which a license is required
2091+23 under this Act, the Department, following notice to the
2092+24 licensee and a hearing in accordance with the provisions of
2093+25 Section 20-60, and upon the recommendation of the Board as to
2094+
2095+
2096+
2097+
2098+
2099+ SB3740 Enrolled - 59 - LRB103 36856 RTM 66968 b
2100+
2101+
2102+SB3740 Enrolled- 60 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 60 - LRB103 36856 RTM 66968 b
2103+ SB3740 Enrolled - 60 - LRB103 36856 RTM 66968 b
2104+1 the nature and extent of the discipline, shall, in accordance
2105+2 with the provisions of Section 20-64, take one or more of the
2106+3 disciplinary actions provided for in Section 20-20 of this Act
2107+4 in a timely manner, unless the administrative order is in the
2108+5 appeal process. The finding of the administrative order is a
2109+6 matter of record; the merits of which shall not be challenged
2110+7 in a request for a hearing by the licensee.
2111+8 (Source: P.A. 96-856, eff. 12-31-09.)
2112+9 (225 ILCS 454/20-82)
2113+10 (Section scheduled to be repealed on January 1, 2030)
2114+11 Sec. 20-82. Fines and penalties; Real Estate License
2115+12 Administration Recovery Fund; Real Estate Recovery Fund. All
2116+13 fines and penalties collected under Section 20-20, Section
2117+14 20-20.1, and otherwise under this Act by the Department shall
2118+15 be deposited in the Real Estate License Administration
2119+16 Recovery Fund and may be transferred to the Real Estate
2120+17 Recovery Fund in accordance with the authority set forth in
2121+18 Section 25-35 of this Act.
2122+19 (Source: P.A. 96-856, eff. 12-31-09.)
2123+20 (225 ILCS 454/25-25)
2124+21 (Section scheduled to be repealed on January 1, 2030)
2125+22 Sec. 25-25. Real Estate Research and Education Fund. A
2126+23 special fund to be known as the Real Estate Research and
2127+24 Education Fund is created and shall be held in trust in the
2128+
2129+
2130+
2131+
2132+
2133+ SB3740 Enrolled - 60 - LRB103 36856 RTM 66968 b
2134+
2135+
2136+SB3740 Enrolled- 61 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 61 - LRB103 36856 RTM 66968 b
2137+ SB3740 Enrolled - 61 - LRB103 36856 RTM 66968 b
2138+1 State treasury. Annually, on September 15th, the State
2139+2 Treasurer shall cause a transfer of $125,000 to the Real
2140+3 Estate Research and Education Fund from the Real Estate
2141+4 License Administration Fund. The Real Estate Research and
2142+5 Education Fund shall be administered by the Department. Money
2143+6 deposited in the Real Estate Research and Education Fund may
2144+7 be used for research and for education at state institutions
2145+8 of higher education or other organizations for research and
2146+9 for education to further the advancement of education in the
2147+10 real estate industry or can be used by the Department for
2148+11 expenses related to the education of licensees. Of the
2149+12 $125,000 annually transferred into the Real Estate Research
2150+13 and Education Fund, $15,000 shall be used to fund a
2151+14 scholarship program for persons of historically marginalized
2152+15 classes and minority racial origin who wish to pursue a course
2153+16 of study in the field of real estate. For the purposes of this
2154+17 Section: ,
2155+18 "Course course of study" means a course or courses that
2156+19 are part of a program of courses in the field of real estate
2157+20 designed to further an individual's knowledge or expertise in
2158+21 the field of real estate. These courses shall include, without
2159+22 limitation, courses that a broker licensed under this Act must
2160+23 complete to qualify for a managing broker's license, courses
2161+24 required to obtain the Graduate Realtors Institute
2162+25 designation, and any other courses or programs offered by
2163+26 accredited colleges, universities, or other institutions of
2164+
2165+
2166+
2167+
2168+
2169+ SB3740 Enrolled - 61 - LRB103 36856 RTM 66968 b
2170+
2171+
2172+SB3740 Enrolled- 62 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 62 - LRB103 36856 RTM 66968 b
2173+ SB3740 Enrolled - 62 - LRB103 36856 RTM 66968 b
2174+1 higher education in Illinois.
2175+2 "Historically marginalized classes" means a person of a
2176+3 race or national origin that is Native American or Alaska
2177+4 Native, Asian, Black or African American, Hispanic or Latino,
2178+5 or Native Hawaiian or Pacific Islander, or is a member of a
2179+6 protected class under the Illinois Human Rights Act within the
2180+7 context of affirmative action.
2181+8 The scholarship program shall be administered by the
2182+9 Department or its designee. Moneys in the Real Estate Research
2183+10 and Education Fund may be invested and reinvested in the same
2184+11 manner as funds in the Real Estate Recovery Fund and all
2185+12 earnings, interest, and dividends received from such
2186+13 investments shall be deposited in the Real Estate Research and
2187+14 Education Fund and may be used for the same purposes as moneys
2188+15 transferred to the Real Estate Research and Education Fund.
2189+16 Moneys in the Real Estate Research and Education Fund may be
2190+17 transferred to the Professions Indirect Cost Fund as
2191+18 authorized under Section 2105-300 of the Department of
2192+19 Professional Regulation Law of the Civil Administrative Code
2193+20 of Illinois.
2194+21 (Source: P.A. 103-236, eff. 1-1-24.)
2195+22 (225 ILCS 454/25-30)
2196+23 (Section scheduled to be repealed on January 1, 2030)
2197+24 Sec. 25-30. Real Estate License Administration Fund;
2198+25 audit. A special fund to be known as the Real Estate License
2199+
2200+
2201+
2202+
2203+
2204+ SB3740 Enrolled - 62 - LRB103 36856 RTM 66968 b
2205+
2206+
2207+SB3740 Enrolled- 63 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 63 - LRB103 36856 RTM 66968 b
2208+ SB3740 Enrolled - 63 - LRB103 36856 RTM 66968 b
2209+1 Administration Fund is created in the State Treasury. All
2210+2 fines, penalties, and fees received by the Department under
2211+3 this Act shall be deposited in the Real Estate License
2212+4 Administration Fund. The moneys deposited in the Real Estate
2213+5 License Administration Fund shall be appropriated to the
2214+6 Department for expenses of the Department and the Board in the
2215+7 administration of this Act, including, but not limited to, the
2216+8 maintenance and operation of the Real Estate Recovery Fund,
2217+9 and for the administration of any Act administered by the
2218+10 Department providing revenue to this Fund. Moneys in the Real
2219+11 Estate License Administration Fund may be invested and
2220+12 reinvested in the same manner as funds in the Real Estate
2221+13 Recovery Fund. All earnings received from such investment
2222+14 shall be deposited in the Real Estate License Administration
2223+15 Fund and may be used for the same purposes as fines, penalties,
2224+16 and fees deposited in the Real Estate License Administration
2225+17 Fund. Moneys in the Real Estate License Administration Fund
2226+18 may be transferred to the Professions Indirect Cost Fund as
2227+19 authorized under Section 2105-300 of the Department of
2228+20 Professional Regulation Law of the Civil Administrative Code
2229+21 of Illinois and to the Real Estate Recovery Fund as authorized
2230+22 by Section 25-35 of this Act. Upon the completion of any audit
2231+23 of the Department, as prescribed by the Illinois State
2232+24 Auditing Act, which includes an audit of the Real Estate
2233+25 License Administration Fund, the Department shall make the
2234+26 audit open to inspection by any interested person.
2235+
2236+
2237+
2238+
2239+
2240+ SB3740 Enrolled - 63 - LRB103 36856 RTM 66968 b
2241+
2242+
2243+SB3740 Enrolled- 64 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 64 - LRB103 36856 RTM 66968 b
2244+ SB3740 Enrolled - 64 - LRB103 36856 RTM 66968 b
2245+1 (Source: P.A. 96-856, eff. 12-31-09.)
2246+2 (225 ILCS 454/25-35)
2247+3 (Section scheduled to be repealed on January 1, 2030)
2248+4 Sec. 25-35. Real Estate Recovery Fund. A special fund to
2249+5 be known as the Real Estate Recovery Fund is created in the
2250+6 State Treasury. All fines and penalties received by the
2251+7 Department pursuant to Article 20 of this Act shall be
2252+8 deposited into the State Treasury and held in the Real Estate
2253+9 Recovery Fund. The money in the Real Estate Recovery Fund
2254+10 shall be used by the Department exclusively for carrying out
2255+11 the purposes established by this Act. If, at any time, the
2256+12 balance remaining in the Real Estate Recovery Fund is less
2257+13 than $900,000 $750,000, the State Treasurer shall cause a
2258+14 transfer of moneys to the Real Estate Recovery Fund from the
2259+15 Real Estate License Administration Fund in an amount necessary
2260+16 to establish a balance of $1,000,000 $800,000 in the Real
2261+17 Estate Recovery Fund. If the balance in the Real Estate
2262+18 Recovery Fund exceeds $1,000,000, any excess funds over
2263+19 $1,000,000 shall be transferred to the Real Estate License
2264+20 Administration Fund. These funds may be invested and
2265+21 reinvested in the same manner as authorized for pension funds
2266+22 in Article 1 of the Illinois Pension Code. All earnings,
2267+23 interest, and dividends received from investment of funds in
2268+24 the Real Estate Recovery Fund shall be deposited into the Real
2269+25 Estate License Administration Fund and shall be used for the
2270+
2271+
2272+
2273+
2274+
2275+ SB3740 Enrolled - 64 - LRB103 36856 RTM 66968 b
2276+
2277+
2278+SB3740 Enrolled- 65 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 65 - LRB103 36856 RTM 66968 b
2279+ SB3740 Enrolled - 65 - LRB103 36856 RTM 66968 b
2280+1 same purposes as other moneys deposited in the Real Estate
2281+2 License Administration Fund.
2282+3 (Source: P.A. 96-856, eff. 12-31-09.)
2283+4 (225 ILCS 454/30-5)
2284+5 (Section scheduled to be repealed on January 1, 2030)
2285+6 Sec. 30-5. Licensing of real estate education providers
2286+7 and instructors.
2287+8 (a) No person shall operate an education provider entity
2288+9 without possessing a valid and active license issued by the
2289+10 Department. Only education providers in possession of a valid
2290+11 education provider license may provide real estate
2291+12 pre-license, post-license, or continuing education courses
2292+13 that satisfy the requirements of this Act. Every person that
2293+14 desires to obtain an education provider license shall make
2294+15 application to the Department in a manner prescribed by the
2295+16 Department and pay the fee prescribed by rule. In addition to
2296+17 any other information required to be contained in the
2297+18 application as prescribed by rule, every application for an
2298+19 original or renewed license shall include the applicant's
2299+20 Social Security number or tax identification number.
2300+21 (b) (Blank).
2301+22 (c) (Blank).
2302+23 (d) (Blank).
2303+24 (e) (Blank).
2304+25 (f) To qualify for an education provider license, an
2305+
2306+
2307+
2308+
2309+
2310+ SB3740 Enrolled - 65 - LRB103 36856 RTM 66968 b
2311+
2312+
2313+SB3740 Enrolled- 66 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 66 - LRB103 36856 RTM 66968 b
2314+ SB3740 Enrolled - 66 - LRB103 36856 RTM 66968 b
2315+1 applicant must demonstrate the following:
2316+2 (1) a sound financial base for establishing,
2317+3 promoting, and delivering the necessary courses; budget
2318+4 planning for the school's courses should be clearly
2319+5 projected;
2320+6 (2) a sufficient number of qualified, licensed
2321+7 instructors as provided by rule;
2322+8 (3) adequate support personnel to assist with
2323+9 administrative matters and technical assistance;
2324+10 (4) maintenance and availability of records of
2325+11 participation for licensees;
2326+12 (5) the ability to provide each participant who
2327+13 successfully completes an approved program with a
2328+14 certificate of completion signed by the administrator of a
2329+15 licensed education provider in a manner prescribed by the
2330+16 Department; the certificate of completion shall include
2331+17 the program that was completed, the completion date, the
2332+18 course number, and the student's and education provider's
2333+19 license numbers;
2334+20 (6) a written policy dealing with procedures for the
2335+21 management of grievances and fee refunds;
2336+22 (7) lesson plans and examinations, if applicable, for
2337+23 each course;
2338+24 (8) a 75% passing grade for successful completion of
2339+25 any continuing education course or pre-license or
2340+26 post-license examination, if required;
2341+
2342+
2343+
2344+
2345+
2346+ SB3740 Enrolled - 66 - LRB103 36856 RTM 66968 b
2347+
2348+
2349+SB3740 Enrolled- 67 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 67 - LRB103 36856 RTM 66968 b
2350+ SB3740 Enrolled - 67 - LRB103 36856 RTM 66968 b
2351+1 (9) the ability to identify and use instructors who
2352+2 will teach in a planned program; instructor selections
2353+3 must demonstrate:
2354+4 (A) appropriate credentials;
2355+5 (B) competence as a teacher;
2356+6 (C) knowledge of content area; and
2357+7 (D) qualification by experience.
2358+8 Unless otherwise provided for in this Section, the
2359+9 education provider shall provide a proctor or an electronic
2360+10 means of proctoring if a proctored examination is required for
2361+11 each examination; the education provider shall be responsible
2362+12 for the conduct of the proctor; the duties and
2363+13 responsibilities of a proctor shall be established by rule.
2364+14 Unless otherwise provided for in this Section, the
2365+15 education provider shall must provide for closed book
2366+16 examinations for each course when required unless the
2367+17 Department, upon the recommendation of the Board, excuses this
2368+18 requirement based on the complexity of the course material.
2369+19 (g) Advertising and promotion of education activities must
2370+20 be carried out in a responsible fashion clearly showing the
2371+21 educational objectives of the activity, the nature of the
2372+22 audience that may benefit from the activity, the cost of the
2373+23 activity to the participant and the items covered by the cost,
2374+24 the amount of credit that can be earned, and the credentials of
2375+25 the faculty.
2376+26 (h) (Blank). The Department may, or upon request of the
2377+
2378+
2379+
2380+
2381+
2382+ SB3740 Enrolled - 67 - LRB103 36856 RTM 66968 b
2383+
2384+
2385+SB3740 Enrolled- 68 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 68 - LRB103 36856 RTM 66968 b
2386+ SB3740 Enrolled - 68 - LRB103 36856 RTM 66968 b
2387+1 Board shall, after notice, cause an education provider to
2388+2 attend an informal conference before the Board for failure to
2389+3 comply with any requirement for licensure or for failure to
2390+4 comply with any provision of this Act or the rules for the
2391+5 administration of this Act. The Board shall make a
2392+6 recommendation to the Department as a result of its findings
2393+7 at the conclusion of any such informal conference.
2394+8 (i) All education providers shall maintain these minimum
2395+9 criteria and pay the required fee in order to retain their
2396+10 education provider license.
2397+11 (j) The Department may adopt any administrative rule
2398+12 consistent with the language and intent of this Act that may be
2399+13 necessary for the implementation and enforcement of this
2400+14 Section and to regulate the establishment and operation of
2401+15 virtual offices that do not have a fixed location.
2402+16 (Source: P.A. 100-188, eff. 1-1-18; 100-831, eff. 1-1-19;
2403+17 101-357, eff. 8-9-19.)
2404+18 (225 ILCS 454/30-15)
2405+19 (Section scheduled to be repealed on January 1, 2030)
2406+20 Sec. 30-15. Licensing of education providers; approval of
2407+21 courses.
2408+22 (a) (Blank).
2409+23 (b) (Blank).
2410+24 (c) (Blank).
2411+25 (d) (Blank).
2412+
2413+
2414+
2415+
2416+
2417+ SB3740 Enrolled - 68 - LRB103 36856 RTM 66968 b
2418+
2419+
2420+SB3740 Enrolled- 69 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 69 - LRB103 36856 RTM 66968 b
2421+ SB3740 Enrolled - 69 - LRB103 36856 RTM 66968 b
2422+1 (e) (Blank).
2423+2 (f) All education providers shall submit, at the time of
2424+3 initial application and with each license renewal, a list of
2425+4 courses with course materials that comply with the course
2426+5 requirements in this Act to be offered by the education
2427+6 provider. The Department may establish an online mechanism by
2428+7 which education providers may submit for approval by the
2429+8 Department upon the recommendation of the Board or its
2430+9 designee pre-license, post-license, or continuing education
2431+10 courses that are submitted after the time of the education
2432+11 provider's initial license application or renewal. The
2433+12 Department shall provide to each education provider a
2434+13 certificate for each approved pre-license, post-license, or
2435+14 continuing education course. All pre-license, post-license, or
2436+15 continuing education courses shall be valid for the period
2437+16 coinciding with the term of license of the education provider.
2438+17 However, in no case shall a course continue to be valid if it
2439+18 does not, at all times, meet all of the requirements of the
2440+19 core curriculum established by this Act and the Board, as
2441+20 modified from time to time in accordance with this Act. All
2442+21 education providers shall provide a copy of the certificate of
2443+22 the pre-license, post-license, or continuing education course
2444+23 within the course materials given to each student or shall
2445+24 display a copy of the certificate of the pre-license,
2446+25 post-license, or continuing education course in a conspicuous
2447+26 place at the location of the class.
2448+
2449+
2450+
2451+
2452+
2453+ SB3740 Enrolled - 69 - LRB103 36856 RTM 66968 b
2454+
2455+
2456+SB3740 Enrolled- 70 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 70 - LRB103 36856 RTM 66968 b
2457+ SB3740 Enrolled - 70 - LRB103 36856 RTM 66968 b
2458+1 (g) Each education provider shall provide to the
2459+2 Department a report in a frequency and format determined by
2460+3 the Department, with information concerning students who
2461+4 successfully completed all approved pre-license, post-license,
2462+5 or continuing education courses offered by the education
2463+6 provider.
2464+7 (h) The Department, upon the recommendation of the Board,
2465+8 may temporarily suspend a licensed education provider's
2466+9 approved courses without hearing and refuse to accept
2467+10 successful completion of or participation in any of these
2468+11 pre-license, post-license, or continuing education courses for
2469+12 education credit from that education provider upon the failure
2470+13 of that education provider to comply with the provisions of
2471+14 this Act or the rules for the administration of this Act, until
2472+15 such time as the Department receives satisfactory assurance of
2473+16 compliance. The Department shall notify the education provider
2474+17 of the noncompliance and may initiate disciplinary proceedings
2475+18 pursuant to this Act. The Department may refuse to issue,
2476+19 suspend, revoke, or otherwise discipline the license of an
2477+20 education provider or may withdraw approval of a pre-license,
2478+21 post-license, or continuing education course for good cause.
2479+22 Failure to comply with the requirements of this Section or any
2480+23 other requirements established by rule shall be deemed to be
2481+24 good cause. Disciplinary proceedings shall be conducted by the
2482+25 Department Board in the same manner as other disciplinary
2483+26 proceedings under this Act.
2484+
2485+
2486+
2487+
2488+
2489+ SB3740 Enrolled - 70 - LRB103 36856 RTM 66968 b
2490+
2491+
2492+SB3740 Enrolled- 71 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 71 - LRB103 36856 RTM 66968 b
2493+ SB3740 Enrolled - 71 - LRB103 36856 RTM 66968 b
2494+1 (i) Pre-license, post-license, and continuing education
2495+2 courses, whether submitted for approval at the time of an
2496+3 education provider's initial application for licensure or
2497+4 otherwise, must meet the following minimum course
2498+5 requirements:
2499+6 (1) Continuing education courses shall be required to
2500+7 be at least one hour in duration. For each one hour of
2501+8 course time, there shall be a minimum of 50 minutes of
2502+9 instruction.
2503+10 (2) All core curriculum courses shall be provided only
2504+11 in the classroom or through a live, interactive webinar,
2505+12 or in an online distance education format.
2506+13 (3) Courses provided through a live, interactive
2507+14 webinar shall require all participants to demonstrate
2508+15 their attendance in and attention to the course by
2509+16 answering or responding to at least one polling question
2510+17 per 50 minutes of course instruction.
2511+18 (4) All participants in courses provided in an online
2512+19 distance education format shall demonstrate proficiency
2513+20 with the subject matter of the course through verifiable
2514+21 responses to questions included in the course content.
2515+22 (5) Credit for courses completed in a classroom or
2516+23 through a live, interactive webinar, or in an online
2517+24 distance education format shall not require an
2518+25 examination.
2519+26 (6) Credit for courses provided through
2520+
2521+
2522+
2523+
2524+
2525+ SB3740 Enrolled - 71 - LRB103 36856 RTM 66968 b
2526+
2527+
2528+SB3740 Enrolled- 72 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 72 - LRB103 36856 RTM 66968 b
2529+ SB3740 Enrolled - 72 - LRB103 36856 RTM 66968 b
2530+1 correspondence, or by home study, shall require the
2531+2 passage of an in-person, proctored examination.
2532+3 (j) The Department is authorized to engage a third party
2533+4 as the Board's designee to perform the functions specifically
2534+5 provided for in subsection (f) of this Section, namely that of
2535+6 administering the online system for receipt, review, and
2536+7 approval or denial of new courses.
2537+8 (k) The Department may adopt any administrative rule
2538+9 consistent with the language and intent of this Act that may be
2539+10 necessary for the implementation and enforcement of this
2540+11 Section.
2541+12 (Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
2542+13 (225 ILCS 454/30-25)
2543+14 (Section scheduled to be repealed on January 1, 2030)
2544+15 Sec. 30-25. Licensing of education provider instructors.
2545+16 (a) No person shall act as either a pre-license or
2546+17 continuing education instructor without possessing a valid
2547+18 pre-license or continuing education instructor license and
2548+19 satisfying any other qualification criteria adopted by the
2549+20 Department by rule.
2550+21 (a-5) Each person with a valid pre-license instructor
2551+22 license may teach pre-license, post-license, continuing
2552+23 education core curriculum, continuing education elective
2553+24 curriculum, or broker management education courses if they
2554+25 meet specific criteria adopted by the Department by rule.
2555+
2556+
2557+
2558+
2559+
2560+ SB3740 Enrolled - 72 - LRB103 36856 RTM 66968 b
2561+
2562+
2563+SB3740 Enrolled- 73 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 73 - LRB103 36856 RTM 66968 b
2564+ SB3740 Enrolled - 73 - LRB103 36856 RTM 66968 b
2565+1 Those persons who have not met the criteria or who only possess
2566+2 a valid continuing education instructor license shall only
2567+3 teach continuing education elective curriculum courses. Any
2568+4 person with a valid continuing education instructor license
2569+5 who wishes to teach continuing education core curriculum or
2570+6 broker management continuing education courses must obtain a
2571+7 valid pre-license instructor license.
2572+8 (b) Every person who desires to obtain an education
2573+9 provider instructor's license shall attend and successfully
2574+10 complete a one-day instructor development workshop, as
2575+11 approved by the Department. However, pre-license instructors
2576+12 who have complied with subsection (b) of this Section 30-25
2577+13 shall not be required to complete the instructor workshop in
2578+14 order to teach continuing education elective curriculum
2579+15 courses.
2580+16 (b-5) The term of licensure for a pre-license or
2581+17 continuing education instructor shall be 2 years, with renewal
2582+18 dates adopted by rule. Every person who desires to obtain a
2583+19 pre-license or continuing education instructor license shall
2584+20 make application to the Department in a manner prescribed by
2585+21 the Department, accompanied by the fee adopted by rule. In
2586+22 addition to any other information required to be contained in
2587+23 the application, every application for an original license
2588+24 shall include the applicant's Social Security number or
2589+25 federal individual taxpayer identification number, which shall
2590+26 be retained in the agency's records pertaining to the license.
2591+
2592+
2593+
2594+
2595+
2596+ SB3740 Enrolled - 73 - LRB103 36856 RTM 66968 b
2597+
2598+
2599+SB3740 Enrolled- 74 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 74 - LRB103 36856 RTM 66968 b
2600+ SB3740 Enrolled - 74 - LRB103 36856 RTM 66968 b
2601+1 As soon as practical, the Department shall assign a customer's
2602+2 identification number to each applicant for a license.
2603+3 Every application for a renewal or restored license shall
2604+4 require the applicant's customer identification number.
2605+5 The Department shall issue a pre-license or continuing
2606+6 education instructor license to applicants who meet
2607+7 qualification criteria established by this Act or rule.
2608+8 (c) The Department may refuse to issue, suspend, revoke,
2609+9 or otherwise discipline a pre-license or continuing education
2610+10 instructor for good cause. Disciplinary proceedings shall be
2611+11 conducted by the Department Board in the same manner as other
2612+12 disciplinary proceedings under this Act. All pre-license
2613+13 instructors must teach at least one pre-license or continuing
2614+14 education core curriculum course within the period of
2615+15 licensure as a requirement for renewal of the instructor's
2616+16 license. All continuing education instructors must teach at
2617+17 least one course within the period of licensure or take an
2618+18 instructor training program approved by the Department in lieu
2619+19 thereof as a requirement for renewal of the instructor's
2620+20 license.
2621+21 (d) Each course transcript submitted by an education
2622+22 provider to the Department shall include the name and license
2623+23 number of the pre-license or continuing education instructor
2624+24 for the course.
2625+25 (e) Licensed education provider instructors may teach for
2626+26 more than one licensed education provider.
2627+
2628+
2629+
2630+
2631+
2632+ SB3740 Enrolled - 74 - LRB103 36856 RTM 66968 b
2633+
2634+
2635+SB3740 Enrolled- 75 -LRB103 36856 RTM 66968 b SB3740 Enrolled - 75 - LRB103 36856 RTM 66968 b
2636+ SB3740 Enrolled - 75 - LRB103 36856 RTM 66968 b
2637+1 (f) The Department may adopt any administrative rule
2638+2 consistent with the language and intent of this Act that may be
2639+3 necessary for the implementation and enforcement of this
2640+4 Section.
2641+5 (Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
2642+
2643+
2644+
2645+
2646+
2647+ SB3740 Enrolled - 75 - LRB103 36856 RTM 66968 b