99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3803

Introduced , by Rep. Mark Batinick

SYNOPSIS AS INTRODUCED:
See Index

Amends the Real Estate License Act of 2000. Removes references to salespersons under the Act (salesperson licenses were transitioned to broker licenses in 2011). Repeals provisions concerning transitions in licensure. Makes changes in provisions concerning definitions, leasing agent licenses, necessity of licenses, exemption from licensure, broker licenses, managing broker licenses, real estate auction certification, examinations, change of address, expiration of licenses, managing brokers licensed in other states, continuing education, compensation, legislative intent, penalties for unlicensed practice, disciplinary actions, injunctions, violations, the Real Estate Recovery Fund, the Real Estate Administration and Disciplinary Board, the Real Estate Research and Education Fund, licensing of continuing education schools, and savings provisions.
LRB099 09518 AMC 29726 b

A BILL FOR

HB3803LRB099 09518 AMC 29726 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Real Estate License Act of 2000 is amended
5by changing Sections 1-10, 5-5, 5-10, 5-15, 5-20, 5-26, 5-27,
65-28, 5-32, 5-35, 5-41, 5-50, 5-60, 5-70, 10-10, 10-15, 15-5,
720-10, 20-20, 20-21, 20-22, 20-85, 25-10, 25-25, 30-15, and
835-5 as follows:
9 (225 ILCS 454/1-10)
10 (Section scheduled to be repealed on January 1, 2020)
11 Sec. 1-10. Definitions. In this Act, unless the context
12otherwise requires:
13 "Act" means the Real Estate License Act of 2000.
14 "Address of Record" means the designated address recorded
15by the Department in the applicant's or licensee's application
16file or license file as maintained by the Department's
17licensure maintenance unit. It is the duty of the applicant or
18licensee to inform the Department of any change of address, and
19those changes must be made either through the Department's
20website or by contacting the Department.
21 "Advisory Council" means the Real Estate Education
22Advisory Council created under Section 30-10 of this Act.
23 "Agency" means a relationship in which a real estate broker

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1or licensee, whether directly or through an affiliated
2licensee, represents a consumer by the consumer's consent,
3whether express or implied, in a real property transaction.
4 "Applicant" means any person, as defined in this Section,
5who applies to the Department for a valid license as a managing
6real estate broker, broker real estate salesperson, or leasing
7agent.
8 "Blind advertisement" means any real estate advertisement
9that does not include the sponsoring broker's business name and
10that is used by any licensee regarding the sale or lease of
11real estate, including his or her own, licensed activities, or
12the hiring of any licensee under this Act. The broker's
13business name in the case of a franchise shall include the
14franchise affiliation as well as the name of the individual
15firm.
16 "Board" means the Real Estate Administration and
17Disciplinary Board of the Department as created by Section
1825-10 of this Act.
19 "Branch office" means a sponsoring broker's office other
20than the sponsoring broker's principal office.
21 "Broker" means an individual, partnership, limited
22liability company, corporation, or registered limited
23liability partnership other than a real estate salesperson or
24leasing agent who, whether in person or through any media or
25technology, for another and for compensation, or with the
26intention or expectation of receiving compensation, either

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1directly or indirectly:
2 (1) Sells, exchanges, purchases, rents, or leases real
3 estate.
4 (2) Offers to sell, exchange, purchase, rent, or lease
5 real estate.
6 (3) Negotiates, offers, attempts, or agrees to
7 negotiate the sale, exchange, purchase, rental, or leasing
8 of real estate.
9 (4) Lists, offers, attempts, or agrees to list real
10 estate for sale, rent, lease, or exchange.
11 (5) Buys, sells, offers to buy or sell, or otherwise
12 deals in options on real estate or improvements thereon.
13 (6) Supervises the collection, offer, attempt, or
14 agreement to collect rent for the use of real estate.
15 (7) Advertises or represents himself or herself as
16 being engaged in the business of buying, selling,
17 exchanging, renting, or leasing real estate.
18 (8) Assists or directs in procuring or referring of
19 leads or prospects, intended to result in the sale,
20 exchange, lease, or rental of real estate.
21 (9) Assists or directs in the negotiation of any
22 transaction intended to result in the sale, exchange,
23 lease, or rental of real estate.
24 (10) Opens real estate to the public for marketing
25 purposes.
26 (11) Sells, leases, or offers for sale or lease real

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1 estate at auction.
2 (12) Prepares or provides a broker price opinion or
3 comparative market analysis as those terms are defined in
4 this Act, pursuant to the provisions of Section 10-45 of
5 this Act.
6 "Brokerage agreement" means a written or oral agreement
7between a sponsoring broker and a consumer for licensed
8activities to be provided to a consumer in return for
9compensation or the right to receive compensation from another.
10Brokerage agreements may constitute either a bilateral or a
11unilateral agreement between the broker and the broker's client
12depending upon the content of the brokerage agreement. All
13exclusive brokerage agreements shall be in writing.
14 "Broker price opinion" means an estimate or analysis of the
15probable selling price of a particular interest in real estate,
16which may provide a varying level of detail about the
17property's condition, market, and neighborhood and information
18on comparable sales. The activities of a real estate broker or
19managing broker engaging in the ordinary course of business as
20a broker, as defined in this Section, shall not be considered a
21broker price opinion if no compensation is paid to the broker
22or managing broker, other than compensation based upon the sale
23or rental of real estate.
24 "Client" means a person who is being represented by a
25licensee.
26 "Comparative market analysis" is an analysis or opinion

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1regarding pricing, marketing, or financial aspects relating to
2a specified interest or interests in real estate that may be
3based upon an analysis of comparative market data, the
4expertise of the real estate broker or managing broker, and
5such other factors as the broker or managing broker may deem
6appropriate in developing or preparing such analysis or
7opinion. The activities of a real estate broker or managing
8broker engaging in the ordinary course of business as a broker,
9as defined in this Section, shall not be considered a
10comparative market analysis if no compensation is paid to the
11broker or managing broker, other than compensation based upon
12the sale or rental of real estate.
13 "Compensation" means the valuable consideration given by
14one person or entity to another person or entity in exchange
15for the performance of some activity or service. Compensation
16shall include the transfer of valuable consideration,
17including without limitation the following:
18 (1) commissions;
19 (2) referral fees;
20 (3) bonuses;
21 (4) prizes;
22 (5) merchandise;
23 (6) finder fees;
24 (7) performance of services;
25 (8) coupons or gift certificates;
26 (9) discounts;

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1 (10) rebates;
2 (11) a chance to win a raffle, drawing, lottery, or
3 similar game of chance not prohibited by any other law or
4 statute;
5 (12) retainer fee; or
6 (13) salary.
7 "Confidential information" means information obtained by a
8licensee from a client during the term of a brokerage agreement
9that (i) was made confidential by the written request or
10written instruction of the client, (ii) deals with the
11negotiating position of the client, or (iii) is information the
12disclosure of which could materially harm the negotiating
13position of the client, unless at any time:
14 (1) the client permits the disclosure of information
15 given by that client by word or conduct;
16 (2) the disclosure is required by law; or
17 (3) the information becomes public from a source other
18 than the licensee.
19 "Confidential information" shall not be considered to
20include material information about the physical condition of
21the property.
22 "Consumer" means a person or entity seeking or receiving
23licensed activities.
24 "Continuing education school" means any person licensed by
25the Department as a school for continuing education in
26accordance with Section 30-15 of this Act.

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1 "Coordinator" means the Coordinator of Real Estate created
2in Section 25-15 of this Act.
3 "Credit hour" means 50 minutes of classroom instruction in
4course work that meets the requirements set forth in rules
5adopted by the Department.
6 "Customer" means a consumer who is not being represented by
7the licensee but for whom the licensee is performing
8ministerial acts.
9 "Department" means the Department of Financial and
10Professional Regulation.
11 "Designated agency" means a contractual relationship
12between a sponsoring broker and a client under Section 15-50 of
13this Act in which one or more licensees associated with or
14employed by the broker are designated as agent of the client.
15 "Designated agent" means a sponsored licensee named by a
16sponsoring broker as the legal agent of a client, as provided
17for in Section 15-50 of this Act.
18 "Dual agency" means an agency relationship in which a
19licensee is representing both buyer and seller or both landlord
20and tenant in the same transaction. When the agency
21relationship is a designated agency, the question of whether
22there is a dual agency shall be determined by the agency
23relationships of the designated agent of the parties and not of
24the sponsoring broker.
25 "Employee" or other derivative of the word "employee", when
26used to refer to, describe, or delineate the relationship

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1between a real estate broker and a real estate salesperson,
2another real estate broker, or a leasing agent, shall be
3construed to include an independent contractor relationship,
4provided that a written agreement exists that clearly
5establishes and states the relationship. All responsibilities
6of a broker shall remain.
7 "Escrow moneys" means all moneys, promissory notes or any
8other type or manner of legal tender or financial consideration
9deposited with any person for the benefit of the parties to the
10transaction. A transaction exists once an agreement has been
11reached and an accepted real estate contract signed or lease
12agreed to by the parties. Escrow moneys includes without
13limitation earnest moneys and security deposits, except those
14security deposits in which the person holding the security
15deposit is also the sole owner of the property being leased and
16for which the security deposit is being held.
17 "Electronic means of proctoring" means a methodology
18providing assurance that the person taking a test and
19completing the answers to questions is the person seeking
20licensure or credit for continuing education and is doing so
21without the aid of a third party or other device.
22 "Exclusive brokerage agreement" means a written brokerage
23agreement that provides that the sponsoring broker has the sole
24right, through one or more sponsored licensees, to act as the
25exclusive designated agent or representative of the client and
26that meets the requirements of Section 15-75 of this Act.

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1 "Inoperative" means a status of licensure where the
2licensee holds a current license under this Act, but the
3licensee is prohibited from engaging in licensed activities
4because the licensee is unsponsored or the license of the
5sponsoring broker with whom the licensee is associated or by
6whom he or she is employed is currently expired, revoked,
7suspended, or otherwise rendered invalid under this Act.
8 "Interactive delivery method" means delivery of a course by
9an instructor through a medium allowing for 2-way communication
10between the instructor and a student in which either can
11initiate or respond to questions.
12 "Leads" means the name or names of a potential buyer,
13seller, lessor, lessee, or client of a licensee.
14 "Leasing Agent" means a person who is employed by a real
15estate broker to engage in licensed activities limited to
16leasing residential real estate who has obtained a license as
17provided for in Section 5-5 of this Act.
18 "License" means the document issued by the Department
19certifying that the person named thereon has fulfilled all
20requirements prerequisite to licensure under this Act.
21 "Licensed activities" means those activities listed in the
22definition of "broker" under this Section.
23 "Licensee" means any person, as defined in this Section,
24who holds a valid unexpired license as a managing real estate
25broker, broker real estate salesperson, or leasing agent.
26 "Listing presentation" means a communication between a

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1managing real estate broker or broker salesperson and a
2consumer in which the licensee is attempting to secure a
3brokerage agreement with the consumer to market the consumer's
4real estate for sale or lease.
5 "Managing broker" means a broker who has supervisory
6responsibilities for licensees in one or, in the case of a
7multi-office company, more than one office and who has been
8appointed as such by the sponsoring broker.
9 "Medium of advertising" means any method of communication
10intended to influence the general public to use or purchase a
11particular good or service or real estate.
12 "Ministerial acts" means those acts that a licensee may
13perform for a consumer that are informative or clerical in
14nature and do not rise to the level of active representation on
15behalf of a consumer. Examples of these acts include without
16limitation (i) responding to phone inquiries by consumers as to
17the availability and pricing of brokerage services, (ii)
18responding to phone inquiries from a consumer concerning the
19price or location of property, (iii) attending an open house
20and responding to questions about the property from a consumer,
21(iv) setting an appointment to view property, (v) responding to
22questions of consumers walking into a licensee's office
23concerning brokerage services offered or particular
24properties, (vi) accompanying an appraiser, inspector,
25contractor, or similar third party on a visit to a property,
26(vii) describing a property or the property's condition in

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1response to a consumer's inquiry, (viii) completing business or
2factual information for a consumer on an offer or contract to
3purchase on behalf of a client, (ix) showing a client through a
4property being sold by an owner on his or her own behalf, or
5(x) referral to another broker or service provider.
6 "Office" means a real estate broker's place of business
7where the general public is invited to transact business and
8where records may be maintained and licenses displayed, whether
9or not it is the broker's principal place of business.
10 "Person" means and includes individuals, entities,
11corporations, limited liability companies, registered limited
12liability partnerships, and partnerships, foreign or domestic,
13except that when the context otherwise requires, the term may
14refer to a single individual or other described entity.
15 "Personal assistant" means a licensed or unlicensed person
16who has been hired for the purpose of aiding or assisting a
17sponsored licensee in the performance of the sponsored
18licensee's job.
19 "Pocket card" means the card issued by the Department to
20signify that the person named on the card is currently licensed
21under this Act.
22 "Pre-license school" means a school licensed by the
23Department offering courses in subjects related to real estate
24transactions, including the subjects upon which an applicant is
25examined in determining fitness to receive a license.
26 "Pre-renewal period" means the period between the date of

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1issue of a currently valid license and the license's expiration
2date.
3 "Proctor" means any person, including, but not limited to,
4an instructor, who has a written agreement to administer
5examinations fairly and impartially with a licensed
6pre-license school or a licensed continuing education school.
7 "Real estate" means and includes leaseholds as well as any
8other interest or estate in land, whether corporeal,
9incorporeal, freehold, or non-freehold, including timeshare
10interests, and whether the real estate is situated in this
11State or elsewhere.
12 "Regular employee" means a person working an average of 20
13hours per week for a person or entity who would be considered
14as an employee under the Internal Revenue Service eleven main
15tests in three categories being behavioral control, financial
16control and the type of relationship of the parties, formerly
17the twenty factor test.
18 "Salesperson" means any individual, other than a real
19estate broker or leasing agent, who is employed by a real
20estate broker or is associated by written agreement with a real
21estate broker as an independent contractor and participates in
22any activity described in the definition of "broker" under this
23Section.
24 "Secretary" means the Secretary of the Department of
25Financial and Professional Regulation, or a person authorized
26by the Secretary to act in the Secretary's stead.

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1 "Sponsoring broker" means the broker who has issued a
2sponsor card to a licensed managing broker salesperson, another
3licensed broker, or a leasing agent.
4 "Sponsor card" means the temporary permit issued by the
5sponsoring real estate broker certifying that the managing real
6estate broker, broker real estate salesperson, or leasing agent
7named thereon is employed by or associated by written agreement
8with the sponsoring real estate broker, as provided for in
9Section 5-40 of this Act.
10(Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15.)
11 (225 ILCS 454/5-5)
12 (Section scheduled to be repealed on January 1, 2020)
13 Sec. 5-5. Leasing agent license.
14 (a) The purpose of this Section is to provide for a limited
15scope license to enable persons who wish to engage in
16activities limited to the leasing of residential real property
17for which a license is required under this Act, and only those
18activities, to do so by obtaining the license provided for
19under this Section.
20 (b) Notwithstanding the other provisions of this Act, there
21is hereby created a leasing agent license that shall enable the
22licensee to engage only in residential leasing activities for
23which a license is required under this Act. Such activities
24include without limitation leasing or renting residential real
25property, or attempting, offering, or negotiating to lease or

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1rent residential real property, or supervising the collection,
2offer, attempt, or agreement to collect rent for the use of
3residential real property. Nothing in this Section shall be
4construed to require a licensed managing real estate broker or
5broker salesperson to obtain a leasing agent license in order
6to perform leasing activities for which a license is required
7under this Act. Licensed leasing agents must be sponsored and
8employed by a sponsoring broker.
9 (c) The Department, by rule shall provide for the licensing
10of leasing agents, including the issuance, renewal, and
11administration of licenses.
12 (d) Notwithstanding any other provisions of this Act to the
13contrary, a person may engage in residential leasing activities
14for which a license is required under this Act, for a period of
15120 consecutive days without being licensed, so long as the
16person is acting under the supervision of a licensed real
17estate broker and the broker has notified the Department that
18the person is pursuing licensure under this Section. During the
19120 day period all requirements of Sections 5-10 and 5-65 of
20this Act with respect to education, successful completion of an
21examination, and the payment of all required fees must be
22satisfied. The Department may adopt rules to ensure that the
23provisions of this subsection are not used in a manner that
24enables an unlicensed person to repeatedly or continually
25engage in activities for which a license is required under this
26Act.

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1(Source: P.A. 96-856, eff. 12-31-09.)
2 (225 ILCS 454/5-10)
3 (Section scheduled to be repealed on January 1, 2020)
4 Sec. 5-10. Requirements for license as leasing agent.
5 (a) Every applicant for licensure as a leasing agent must
6meet the following qualifications:
7 (1) be at least 18 years of age;
8 (2) be of good moral character;
9 (3) successfully complete a 4-year course of study in a
10 high school or secondary school or an equivalent course of
11 study approved by the Illinois State Board of Education;
12 (4) personally take and pass a written examination
13 authorized by the Department sufficient to demonstrate the
14 applicant's knowledge of the provisions of this Act
15 relating to leasing agents and the applicant's competence
16 to engage in the activities of a licensed leasing agent;
17 (5) provide satisfactory evidence of having completed
18 15 hours of instruction in an approved course of study
19 relating to the leasing of residential real property. The
20 course of study shall, among other topics, cover the
21 provisions of this Act applicable to leasing agents; fair
22 housing issues relating to residential leasing;
23 advertising and marketing issues; leases, applications,
24 and credit reports; owner-tenant relationships and
25 owner-tenant laws; the handling of funds; and

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1 environmental issues relating to residential real
2 property;
3 (6) complete any other requirements as set forth by
4 rule; and
5 (7) present a valid application for issuance of an
6 initial license accompanied by a sponsor card and the fees
7 specified by rule.
8 (b) No applicant shall engage in any of the activities
9covered by this Act until a valid sponsor card has been issued
10to such applicant. The sponsor card shall be valid for a
11maximum period of 45 days after the date of issuance unless
12extended for good cause as provided by rule.
13 (c) Successfully completed course work, completed pursuant
14to the requirements of this Section, may be applied to the
15course work requirements to obtain a managing real estate
16broker's or broker's salesperson's license as provided by rule.
17The Advisory Council may recommend through the Board to the
18Department and the Department may adopt requirements for
19approved courses, course content, and the approval of courses,
20instructors, and schools, as well as school and instructor
21fees. The Department may establish continuing education
22requirements for licensed leasing agents, by rule, with the
23advice of the Advisory Council and Board.
24(Source: P.A. 96-856, eff. 12-31-09.)
25 (225 ILCS 454/5-15)

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1 (Section scheduled to be repealed on January 1, 2020)
2 Sec. 5-15. Necessity of managing broker, broker,
3salesperson, or leasing agent license or sponsor card;
4ownership restrictions.
5 (a) It is unlawful for any person, corporation, limited
6liability company, registered limited liability partnership,
7or partnership to act as a managing broker, real estate broker,
8real estate salesperson, or leasing agent or to advertise or
9assume to act as such broker, salesperson, or leasing agent
10without a properly issued sponsor card or a license issued
11under this Act by the Department, either directly or through
12its authorized designee.
13 (b) No corporation shall be granted a license or engage in
14the business or capacity, either directly or indirectly, of a
15real estate broker, unless every officer of the corporation who
16actively participates in the real estate activities of the
17corporation holds a license as a managing broker or broker and
18unless every employee who acts as a salesperson, or leasing
19agent for the corporation holds a license as a broker,
20salesperson, or leasing agent.
21 (c) No partnership shall be granted a license or engage in
22the business or serve in the capacity, either directly or
23indirectly, of a real estate broker, unless every general
24partner in the partnership holds a license as a managing broker
25or broker and unless every employee who acts as a salesperson
26or leasing agent for the partnership holds a license as a

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1managing broker, broker, salesperson, or leasing agent. In the
2case of a registered limited liability partnership (LLP), every
3partner in the LLP must hold a license as a managing broker or
4broker and every employee who acts as a salesperson or leasing
5agent must hold a license as a managing broker, broker,
6salesperson, or leasing agent.
7 (d) No limited liability company shall be granted a license
8or engage in the business or serve in the capacity, either
9directly or indirectly, of a broker unless every manager in the
10limited liability company or every member in a member managed
11limited liability company holds a license as a managing broker
12or broker and unless every other member and employee who acts
13as a salesperson or leasing agent for the limited liability
14company holds a license as a managing broker, broker,
15salesperson, or leasing agent.
16 (e) No partnership, limited liability company, or
17corporation shall be licensed to conduct a brokerage business
18where an individual salesperson or leasing agent, or group of
19salespersons or leasing agents, owns or directly or indirectly
20controls more than 49% of the shares of stock or other
21ownership in the partnership, limited liability company, or
22corporation.
23(Source: P.A. 96-856, eff. 12-31-09.)
24 (225 ILCS 454/5-20)
25 (Section scheduled to be repealed on January 1, 2020)

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1 Sec. 5-20. Exemptions from managing broker, broker,
2salesperson, or leasing agent license requirement. The
3requirement for holding a license under this Article 5 shall
4not apply to:
5 (1) Any person, partnership, or corporation that as
6 owner or lessor performs any of the acts described in the
7 definition of "broker" under Section 1-10 of this Act with
8 reference to property owned or leased by it, or to the
9 regular employees thereof with respect to the property so
10 owned or leased, where such acts are performed in the
11 regular course of or as an incident to the management,
12 sale, or other disposition of such property and the
13 investment therein, provided that such regular employees
14 do not perform any of the acts described in the definition
15 of "broker" under Section 1-10 of this Act in connection
16 with a vocation of selling or leasing any real estate or
17 the improvements thereon not so owned or leased.
18 (2) An attorney in fact acting under a duly executed
19 and recorded power of attorney to convey real estate from
20 the owner or lessor or the services rendered by an attorney
21 at law in the performance of the attorney's duty as an
22 attorney at law.
23 (3) Any person acting as receiver, trustee in
24 bankruptcy, administrator, executor, or guardian or while
25 acting under a court order or under the authority of a will
26 or testamentary trust.

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1 (4) Any person acting as a resident manager for the
2 owner or any employee acting as the resident manager for a
3 broker managing an apartment building, duplex, or
4 apartment complex, when the resident manager resides on the
5 premises, the premises is his or her primary residence, and
6 the resident manager is engaged in the leasing of the
7 property of which he or she is the resident manager.
8 (5) Any officer or employee of a federal agency in the
9 conduct of official duties.
10 (6) Any officer or employee of the State government or
11 any political subdivision thereof performing official
12 duties.
13 (7) Any multiple listing service or other similar
14 information exchange that is engaged in the collection and
15 dissemination of information concerning real estate
16 available for sale, purchase, lease, or exchange for the
17 purpose of providing licensees with a system by which
18 licensees may cooperatively share information along with
19 which no other licensed activities, as defined in Section
20 1-10 of this Act, are provided.
21 (8) Railroads and other public utilities regulated by
22 the State of Illinois, or the officers or full time
23 employees thereof, unless the performance of any licensed
24 activities is in connection with the sale, purchase, lease,
25 or other disposition of real estate or investment therein
26 not needing the approval of the appropriate State

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1 regulatory authority.
2 (9) Any medium of advertising in the routine course of
3 selling or publishing advertising along with which no other
4 licensed activities, as defined in Section 1-10 of this
5 Act, are provided.
6 (10) Any resident lessee of a residential dwelling unit
7 who refers for compensation to the owner of the dwelling
8 unit, or to the owner's agent, prospective lessees of
9 dwelling units in the same building or complex as the
10 resident lessee's unit, but only if the resident lessee (i)
11 refers no more than 3 prospective lessees in any 12-month
12 period, (ii) receives compensation of no more than $1,500
13 or the equivalent of one month's rent, whichever is less,
14 in any 12-month period, and (iii) limits his or her
15 activities to referring prospective lessees to the owner,
16 or the owner's agent, and does not show a residential
17 dwelling unit to a prospective lessee, discuss terms or
18 conditions of leasing a dwelling unit with a prospective
19 lessee, or otherwise participate in the negotiation of the
20 leasing of a dwelling unit.
21 (11) An exchange company registered under the Real
22 Estate Timeshare Act of 1999 and the regular employees of
23 that registered exchange company but only when conducting
24 an exchange program as defined in that Act.
25 (12) An existing timeshare owner who, for
26 compensation, refers prospective purchasers, but only if

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1 the existing timeshare owner (i) refers no more than 20
2 prospective purchasers in any calendar year, (ii) receives
3 no more than $1,000, or its equivalent, for referrals in
4 any calendar year and (iii) limits his or her activities to
5 referring prospective purchasers of timeshare interests to
6 the developer or the developer's employees or agents, and
7 does not show, discuss terms or conditions of purchase or
8 otherwise participate in negotiations with regard to
9 timeshare interests.
10 (13) Any person who is licensed without examination
11 under Section 10-25 (now repealed) of the Auction License
12 Act is exempt from holding a managing broker's or broker's
13 salesperson's license under this Act for the limited
14 purpose of selling or leasing real estate at auction, so
15 long as:
16 (A) that person has made application for said
17 exemption by July 1, 2000;
18 (B) that person verifies to the Department that he
19 or she has sold real estate at auction for a period of
20 5 years prior to licensure as an auctioneer;
21 (C) the person has had no lapse in his or her
22 license as an auctioneer; and
23 (D) the license issued under the Auction License
24 Act has not been disciplined for violation of those
25 provisions of Article 20 of the Auction License Act
26 dealing with or related to the sale or lease of real

HB3803- 23 -LRB099 09518 AMC 29726 b
1 estate at auction.
2 (14) A person who holds a valid license under the
3 Auction License Act and a valid real estate auction
4 certification and conducts auctions for the sale of real
5 estate under Section 5-32 of this Act.
6 (15) A hotel operator who is registered with the
7 Illinois Department of Revenue and pays taxes under the
8 Hotel Operators' Occupation Tax Act and rents a room or
9 rooms in a hotel as defined in the Hotel Operators'
10 Occupation Tax Act for a period of not more than 30
11 consecutive days and not more than 60 days in a calendar
12 year.
13(Source: P.A. 98-553, eff. 1-1-14.)
14 (225 ILCS 454/5-26)
15 (Section scheduled to be repealed on January 1, 2020)
16 Sec. 5-26. License Requirements for license as a
17salesperson.
18 (a) Every applicant for licensure as a salesperson must
19meet the following qualifications:
20 (1) Be at least 21 years of age. The minimum age of 21
21 years shall be waived for any person seeking a license as a
22 real estate salesperson who has attained the age of 18 and
23 can provide evidence of the successful completion of at
24 least 4 semesters of post-secondary school study as a
25 full-time student or the equivalent, with major emphasis on

HB3803- 24 -LRB099 09518 AMC 29726 b
1 real estate courses, in a school approved by the
2 Department;
3 (2) Be of good moral character;
4 (3) Successfully complete a 4-year course of study in a
5 high school or secondary school approved by the Illinois
6 State Board of Education or an equivalent course of study
7 as determined by an examination conducted by the Illinois
8 State Board of Education, which shall be verified under
9 oath by the applicant;
10 (4) Provide satisfactory evidence of having completed
11 at least 45 hours of instruction in real estate courses
12 approved by the Advisory Council, except applicants who are
13 currently admitted to practice law by the Supreme Court of
14 Illinois and are currently in active standing;
15 (5) Personally take and pass a written examination
16 authorized by the Department; and
17 (6) Present a valid application for issuance of a
18 license accompanied by a sponsor card and the fees
19 specified by rule.
20 (b) No applicant shall engage in any of the activities
21covered by this Act until a valid sponsor card has been issued
22to the applicant. The sponsor card shall be valid for a maximum
23period of 45 days after the date of issuance unless extended
24for good cause as provided by rule.
25 (c) All licenses should be readily available to the public
26at their sponsoring place of business.

HB3803- 25 -LRB099 09518 AMC 29726 b
1 (d) No new salesperson licenses shall be issued after April
230, 2011 and all existing salesperson licenses shall terminate
3on May 1, 2012.
4(Source: P.A. 96-856, eff. 12-31-09; 97-333, eff. 8-12-11.)
5 (225 ILCS 454/5-27)
6 (Section scheduled to be repealed on January 1, 2020)
7 Sec. 5-27. Requirements for licensure as a broker.
8 (a) Every applicant for licensure as a broker must meet the
9following qualifications:
10 (1) Be at least 21 years of age. After April 30, 2011,
11 the minimum age of 21 years shall be waived for any person
12 seeking a license as a broker who has attained the age of
13 18 and can provide evidence of the successful completion of
14 at least 4 semesters of post-secondary school study as a
15 full-time student or the equivalent, with major emphasis on
16 real estate courses, in a school approved by the
17 Department;
18 (2) Be of good moral character;
19 (3) Successfully complete a 4-year course of study in a
20 high school or secondary school approved by the Illinois
21 State Board of Education or an equivalent course of study
22 as determined by an examination conducted by the Illinois
23 State Board of Education which shall be verified under oath
24 by the applicant;
25 (4) (Blank); Prior to May 1, 2011, provide (i)

HB3803- 26 -LRB099 09518 AMC 29726 b
1 satisfactory evidence of having completed at least 120
2 classroom hours, 45 of which shall be those hours required
3 to obtain a salesperson's license plus 15 hours in
4 brokerage administration courses, in real estate courses
5 approved by the Advisory Council or (ii) for applicants who
6 currently hold a valid real estate salesperson's license,
7 give satisfactory evidence of having completed at least 75
8 hours in real estate courses, not including the courses
9 that are required to obtain a salesperson's license,
10 approved by the Advisory Council;
11 (5) After April 30, 2011, provide satisfactory
12 evidence of having completed 90 hours of instruction in
13 real estate courses approved by the Advisory Council, 15
14 hours of which must consist of situational and case studies
15 presented in the classroom or by other interactive delivery
16 method between the instructor and the students;
17 (6) Personally take and pass a written examination
18 authorized by the Department;
19 (7) Present a valid application for issuance of a
20 license accompanied by a sponsor card and the fees
21 specified by rule.
22 (b) The requirements specified in items (3) (4) and (5) of
23subsection (a) of this Section do not apply to applicants who
24are currently admitted to practice law by the Supreme Court of
25Illinois and are currently in active standing.
26 (c) No applicant shall engage in any of the activities

HB3803- 27 -LRB099 09518 AMC 29726 b
1covered by this Act until a valid sponsor card has been issued
2to such applicant. The sponsor card shall be valid for a
3maximum period of 45 days after the date of issuance unless
4extended for good cause as provided by rule.
5 (d) All licenses should be readily available to the public
6at their place of business.
7 (e) An individual holding an active license as a managing
8broker may return the license to the Department along with a
9form provided by the Department and shall be issued a broker's
10license in exchange. Any individual obtaining a broker's
11license under this subsection (e) shall be considered as having
12obtained a broker's license by education and passing the
13required test and shall be treated as such in determining
14compliance with this Act.
15(Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15.)
16 (225 ILCS 454/5-28)
17 (Section scheduled to be repealed on January 1, 2020)
18 Sec. 5-28. Requirements for licensure as a managing broker.
19 (a) Effective May 1, 2012, every applicant for licensure as
20a managing broker must meet the following qualifications:
21 (1) be at least 21 years of age;
22 (2) be of good moral character;
23 (3) have been licensed at least 2 out of the preceding
24 3 years as a real estate broker or salesperson;
25 (4) successfully complete a 4-year course of study in

HB3803- 28 -LRB099 09518 AMC 29726 b
1 high school or secondary school approved by the Illinois
2 State Board of Education or an equivalent course of study
3 as determined by an examination conducted by the Illinois
4 State Board of Education, which shall be verified under
5 oath by the applicant;
6 (5) provide satisfactory evidence of having completed
7 at least 165 hours, 120 of which shall be those hours
8 required pre and post-licensure to obtain a broker's
9 license, and 45 additional hours completed within the year
10 immediately preceding the filing of an application for a
11 managing broker's license, which hours shall focus on
12 brokerage administration and management and include at
13 least 15 hours in the classroom or by other interactive
14 delivery method between the instructor and the students;
15 (6) personally take and pass a written examination
16 authorized by the Department; and
17 (7) present a valid application for issuance of a
18 license accompanied by a sponsor card, an appointment as a
19 managing broker, and the fees specified by rule.
20 (b) The requirements specified in item (5) of subsection
21(a) of this Section do not apply to applicants who are
22currently admitted to practice law by the Supreme Court of
23Illinois and are currently in active standing.
24 (c) No applicant shall act as a managing broker for more
25than 90 days after an appointment as a managing broker has been
26filed with the Department without obtaining a managing broker's

HB3803- 29 -LRB099 09518 AMC 29726 b
1license.
2(Source: P.A. 98-531, eff. 8-23-13.)
3 (225 ILCS 454/5-32)
4 (Section scheduled to be repealed on January 1, 2020)
5 Sec. 5-32. Real estate auction certification.
6 (a) An auctioneer licensed under the Auction License Act
7who does not possess a valid and active broker's or managing
8broker's license under this Act, or who is not otherwise exempt
9from licensure, may not engage in the practice of auctioning
10real estate, except as provided in this Section.
11 (b) The Department shall issue a real estate auction
12certification to applicants who:
13 (1) possess a valid auctioneer's license under the
14 Auction License Act;
15 (2) successfully complete a real estate auction course
16 of at least 30 hours approved by the Department, which
17 shall cover the scope of activities that may be engaged in
18 by a person holding a real estate auction certification and
19 the activities for which a person must hold a real estate
20 license, as well as other material as provided by the
21 Department;
22 (3) provide documentation of the completion of the real
23 estate auction course; and
24 (4) successfully complete any other reasonable
25 requirements as provided by rule.

HB3803- 30 -LRB099 09518 AMC 29726 b
1 (c) The auctioneer's role shall be limited to establishing
2the time, place, and method of the real estate auction, placing
3advertisements regarding the auction, and crying or calling the
4auction; any other real estate brokerage activities must be
5performed by a person holding a valid and active real estate
6broker's or managing broker's license under the provisions of
7this Act or by a person who is exempt from holding a license
8under paragraph (13) of Section 5-20 who has a certificate
9under this Section.
10 (d) An auctioneer who conducts any real estate auction
11activities in violation of this Section is guilty of unlicensed
12practice under Section 20-10 of this Act.
13 (e) The Department may revoke, suspend, or otherwise
14discipline the real estate auction certification of an
15auctioneer who is adjudicated to be in violation of the
16provisions of this Section or Section 20-15 of the Auction
17License Act.
18 (f) Advertising for the real estate auction must contain
19the name and address of the licensed real estate broker,
20managing broker, or a licensed auctioneer under paragraph (13)
21of Section 5-20 of this Act who is providing brokerage services
22for the transaction.
23 (g) The requirement to hold a real estate auction
24certification shall not apply to a person exempt from this Act
25under the provisions of paragraph (13) of Section 5-20 of this
26Act, unless that person is performing licensed activities in a

HB3803- 31 -LRB099 09518 AMC 29726 b
1transaction in which a licensed auctioneer with a real estate
2certification is providing the limited services provided for in
3subsection (c) of this Section.
4 (h) Nothing in this Section shall require a person licensed
5under this Act as a real estate broker or managing broker to
6obtain a real estate auction certification in order to auction
7real estate.
8 (i) The Department may adopt rules to implement this
9Section.
10(Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14.)
11 (225 ILCS 454/5-35)
12 (Section scheduled to be repealed on January 1, 2020)
13 Sec. 5-35. Examination; managing broker, broker,
14salesperson, or leasing agent.
15 (a) The Department shall authorize examinations at such
16times and places as it may designate. The examination shall be
17of a character to give a fair test of the qualifications of the
18applicant to practice as a managing broker, broker,
19salesperson, or leasing agent. Applicants for examination as a
20managing broker, broker, salesperson, or leasing agent shall be
21required to pay, either to the Department or the designated
22testing service, a fee covering the cost of providing the
23examination. Failure to appear for the examination on the
24scheduled date, at the time and place specified, after the
25applicant's application for examination has been received and

HB3803- 32 -LRB099 09518 AMC 29726 b
1acknowledged by the Department or the designated testing
2service, shall result in the forfeiture of the examination fee.
3An applicant shall be eligible to take the examination only
4after successfully completing the education requirements and
5attaining the minimum age provided for in Article 5 of this
6Act. Each applicant shall be required to establish compliance
7with the eligibility requirements in the manner provided by the
8rules promulgated for the administration of this Act.
9 (b) If a person who has received a passing score on the
10written examination described in this Section fails to file an
11application and meet all requirements for a license under this
12Act within one year after receiving a passing score on the
13examination, credit for the examination shall terminate. The
14person thereafter may make a new application for examination.
15 (c) If an applicant has failed an examination 4 times, the
16applicant must repeat the pre-license education required to sit
17for the examination. For the purposes of this Section, the
18fifth attempt shall be the same as the first. Approved
19education, as prescribed by this Act for licensure as a
20salesperson or broker, shall be valid for 4 years after the
21date of satisfactory completion of the education.
22 (d) The Department may employ consultants for the purposes
23of preparing and conducting examinations.
24(Source: P.A. 96-856, eff. 12-31-09.)
25 (225 ILCS 454/5-41)

HB3803- 33 -LRB099 09518 AMC 29726 b
1 (Section scheduled to be repealed on January 1, 2020)
2 Sec. 5-41. Change of address. A licensee shall notify the
3Department of the address or addresses, and of every change of
4address, where the licensee practices as a leasing agent,
5salesperson, broker or managing broker.
6(Source: P.A. 96-856, eff. 12-31-09.)
7 (225 ILCS 454/5-50)
8 (Section scheduled to be repealed on January 1, 2020)
9 Sec. 5-50. Expiration and renewal of managing broker,
10broker, salesperson, or leasing agent license; sponsoring
11broker; register of licensees; pocket card.
12 (a) The expiration date and renewal period for each license
13issued under this Act shall be set by rule, except that the
14first renewal period ending after the effective date of this
15Act for those licensed as a salesperson shall be extended
16through April 30, 2012. Except as otherwise provided in this
17Section, the holder of a license may renew the license within
1890 days preceding the expiration date thereof by completing the
19continuing education required by this Act and paying the fees
20specified by rule.
21 (b) An individual whose first license is that of a broker
22received after April 30, 2011, must provide evidence of having
23completed 30 hours of post-license education in courses
24approved by the Advisory Council, 15 hours of which must
25consist of situational and case studies presented in the

HB3803- 34 -LRB099 09518 AMC 29726 b
1classroom or by other interactive delivery method between the
2instructor and the students, and personally take and pass an
3examination approved by the Department prior to the first
4renewal of their broker's license.
5 (c) Any salesperson until April 30, 2011 or any managing
6broker, broker, or leasing agent whose license under this Act
7has expired shall be eligible to renew the license during the
82-year period following the expiration date, provided the
9managing broker, broker, salesperson, or leasing agent pays the
10fees as prescribed by rule and completes continuing education
11and other requirements provided for by the Act or by rule.
12Beginning on May 1, 2012, a managing broker licensee, broker,
13or leasing agent whose license has been expired for more than 2
14years but less than 5 years may have it restored by (i)
15applying to the Department, (ii) paying the required fee, (iii)
16completing the continuing education requirements for the most
17recent pre-renewal period that ended prior to the date of the
18application for reinstatement, and (iv) filing acceptable
19proof of fitness to have his or her license restored, as set by
20rule. A managing broker, broker, or leasing agent whose license
21has been expired for more than 5 years shall be required to
22meet the requirements for a new license.
23 (d) Notwithstanding any other provisions of this Act to the
24contrary, any managing broker, broker, salesperson, or leasing
25agent whose license expired while he or she was (i) on active
26duty with the Armed Forces of the United States or called into

HB3803- 35 -LRB099 09518 AMC 29726 b
1service or training by the state militia, (ii) engaged in
2training or education under the supervision of the United
3States preliminary to induction into military service, or (iii)
4serving as the Coordinator of Real Estate in the State of
5Illinois or as an employee of the Department may have his or
6her license renewed, reinstated or restored without paying any
7lapsed renewal fees if within 2 years after the termination of
8the service, training or education by furnishing the Department
9with satisfactory evidence of service, training, or education
10and it has been terminated under honorable conditions.
11 (e) The Department shall establish and maintain a register
12of all persons currently licensed by the State and shall issue
13and prescribe a form of pocket card. Upon payment by a licensee
14of the appropriate fee as prescribed by rule for engagement in
15the activity for which the licensee is qualified and holds a
16license for the current period, the Department shall issue a
17pocket card to the licensee. The pocket card shall be
18verification that the required fee for the current period has
19been paid and shall indicate that the person named thereon is
20licensed for the current renewal period as a managing broker,
21broker, salesperson, or leasing agent as the case may be. The
22pocket card shall further indicate that the person named
23thereon is authorized by the Department to engage in the
24licensed activity appropriate for his or her status (managing
25broker, broker, salesperson, or leasing agent). Each licensee
26shall carry on his or her person his or her pocket card or, if

HB3803- 36 -LRB099 09518 AMC 29726 b
1such pocket card has not yet been issued, a properly issued
2sponsor card when engaging in any licensed activity and shall
3display the same on demand.
4 (f) The Department shall provide to the sponsoring broker a
5notice of renewal for all sponsored licensees by mailing the
6notice to the sponsoring broker's address of record, or, at the
7Department's discretion, by an electronic means as provided for
8by rule.
9 (g) Upon request from the sponsoring broker, the Department
10shall make available to the sponsoring broker, either by mail
11or by an electronic means at the discretion of the Department,
12a listing of licensees under this Act who, according to the
13records of the Department, are sponsored by that broker. Every
14licensee associated with or employed by a broker whose license
15is revoked, suspended, terminated, or expired shall be
16considered as inoperative until such time as the sponsoring
17broker's license is reinstated or renewed, or the licensee
18changes employment as set forth in subsection (c) of Section
195-40 of this Act.
20(Source: P.A. 98-531, eff. 8-23-13.)
21 (225 ILCS 454/5-60)
22 (Section scheduled to be repealed on January 1, 2020)
23 Sec. 5-60. Managing broker licensed in another state;
24broker licensed in another state; salesperson licensed in
25another state; reciprocal agreements; agent for service of

HB3803- 37 -LRB099 09518 AMC 29726 b
1process.
2 (a) Effective May 1, 2011, a managing broker's license may
3be issued by the Department to a managing broker or its
4equivalent licensed under the laws of another state of the
5United States, under the following conditions:
6 (1) the managing broker holds a managing broker's
7 license in a state that has entered into a reciprocal
8 agreement with the Department;
9 (2) the standards for that state for licensing as a
10 managing broker are substantially equal to or greater than
11 the minimum standards in the State of Illinois;
12 (3) the managing broker has been actively practicing as
13 a managing broker in the managing broker's state of
14 licensure for a period of not less than 2 years,
15 immediately prior to the date of application;
16 (4) the managing broker furnishes the Department with a
17 statement under seal of the proper licensing authority of
18 the state in which the managing broker is licensed showing
19 that the managing broker has an active managing broker's
20 license, that the managing broker is in good standing, and
21 that no complaints are pending against the managing broker
22 in that state;
23 (5) the managing broker passes a test on Illinois
24 specific real estate brokerage laws; and
25 (6) the managing broker was licensed by an examination
26 in the state that has entered into a reciprocal agreement

HB3803- 38 -LRB099 09518 AMC 29726 b
1 with the Department.
2 (b) A broker's license may be issued by the Department to a
3broker or its equivalent licensed under the laws of another
4state of the United States, under the following conditions:
5 (1) the broker holds a broker's license in a state that
6 has entered into a reciprocal agreement with the
7 Department;
8 (2) the standards for that state for licensing as a
9 broker are substantially equivalent to or greater than the
10 minimum standards in the State of Illinois;
11 (3) if the application is made prior to May 1, 2012,
12 then the broker has been actively practicing as a broker in
13 the broker's state of licensure for a period of not less
14 than 2 years, immediately prior to the date of application;
15 (4) the broker furnishes the Department with a
16 statement under seal of the proper licensing authority of
17 the state in which the broker is licensed showing that the
18 broker has an active broker's license, that the broker is
19 in good standing, and that no complaints are pending
20 against the broker in that state;
21 (5) the broker passes a test on Illinois specific real
22 estate brokerage laws; and
23 (6) the broker was licensed by an examination in a
24 state that has entered into a reciprocal agreement with the
25 Department.
26 (c) (Blank). Prior to May 1, 2011, a salesperson may, in

HB3803- 39 -LRB099 09518 AMC 29726 b
1the discretion of the Department, be issued a salesperson's
2license provided all of the following conditions are met:
3 (1) the salesperson maintains an active license in the
4 state that has entered into a reciprocal agreement with the
5 Department;
6 (2) the salesperson passes a test on Illinois specific
7 real estate brokerage laws; and
8 (3) the salesperson was licensed by an examination in
9 the state that has entered into a reciprocal agreement with
10 the Department.
11 The broker with whom the salesperson is associated shall
12comply with the provisions of this Act and issue the
13salesperson a sponsor card upon the form provided by the
14Department.
15 (d) As a condition precedent to the issuance of a license
16to a managing broker, or broker, or salesperson pursuant to
17this Section, the managing broker or broker salesperson shall
18agree in writing to abide by all the provisions of this Act
19with respect to his or her real estate activities within the
20State of Illinois and submit to the jurisdiction of the
21Department as provided in this Act. The agreement shall be
22filed with the Department and shall remain in force for so long
23as the managing broker, or broker or salesperson is licensed by
24this State and thereafter with respect to acts or omissions
25committed while licensed as a managing broker or broker
26salesperson in this State.

HB3803- 40 -LRB099 09518 AMC 29726 b
1 (e) Prior to the issuance of any license to any managing
2broker, or broker, or salesperson licensed pursuant to this
3Section, verification of active licensure issued for the
4conduct of such business in any other state must be filed with
5the Department by the managing broker, or broker, or
6salesperson, and the same fees must be paid as provided in this
7Act for the obtaining of a managing broker's, or broker's or
8salesperson's license in this State.
9 (f) Licenses previously granted under reciprocal
10agreements with other states shall remain in force so long as
11the Department has a reciprocal agreement with the state that
12includes the requirements of this Section, unless that license
13is suspended, revoked, or terminated by the Department for any
14reason provided for suspension, revocation, or termination of a
15resident licensee's license. Licenses granted under reciprocal
16agreements may be renewed in the same manner as a resident's
17license.
18 (g) Prior to the issuance of a license to a nonresident
19managing broker, or broker or salesperson, the managing broker,
20or broker or salesperson shall file with the Department a
21designation in writing that appoints the Secretary to act as
22his or her agent upon whom all judicial and other process or
23legal notices directed to the managing broker, or broker or
24salesperson may be served. Service upon the agent so designated
25shall be equivalent to personal service upon the licensee.
26Copies of the appointment, certified by the Secretary, shall be

HB3803- 41 -LRB099 09518 AMC 29726 b
1deemed sufficient evidence thereof and shall be admitted in
2evidence with the same force and effect as the original thereof
3might be admitted. In the written designation, the managing
4broker, or broker or salesperson shall agree that any lawful
5process against the licensee that is served upon the agent
6shall be of the same legal force and validity as if served upon
7the licensee and that the authority shall continue in force so
8long as any liability remains outstanding in this State. Upon
9the receipt of any process or notice, the Secretary shall
10forthwith mail a copy of the same by certified mail to the last
11known business address of the licensee.
12 (h) Any person holding a valid license under this Section
13shall be eligible to obtain a resident managing broker's
14license, or a broker's license, or, prior to May 1, 2011, a
15salesperson's license without examination should that person
16change their state of domicile to Illinois and that person
17otherwise meets the qualifications for licensure under this
18Act.
19(Source: P.A. 96-856, eff. 12-31-09.)
20 (225 ILCS 454/5-70)
21 (Section scheduled to be repealed on January 1, 2020)
22 Sec. 5-70. Continuing education requirement; managing
23broker, or broker, or salesperson.
24 (a) The requirements of this Section apply to all managing
25brokers, and brokers, and salespersons.

HB3803- 42 -LRB099 09518 AMC 29726 b
1 (b) Except as otherwise provided in this Section, each
2person who applies for renewal of his or her license as a
3managing broker, or real estate broker, or real estate
4salesperson must successfully complete 6 hours of real estate
5continuing education courses approved by the Advisory Council
6for each year of the pre-renewal period. Broker licensees must
7successfully complete a 6-hour broker management continuing
8education course approved by the Department for the pre-renewal
9period ending April 30, 2010. In addition, beginning with the
10pre-renewal period for managing broker licensees that begins
11after the effective date of this Act, those licensees renewing
12or obtaining a managing broker's license must successfully
13complete a 12-hour broker management continuing education
14course approved by the Department each pre-renewal period. The
15broker management continuing education course must be
16completed in the classroom or by other interactive delivery
17method between the instructor and the students. Successful
18completion of the course shall include achieving a passing
19score as provided by rule on a test developed and administered
20in accordance with rules adopted by the Department. No license
21may be renewed except upon the successful completion of the
22required courses or their equivalent or upon a waiver of those
23requirements for good cause shown as determined by the
24Secretary with the recommendation of the Advisory Council. The
25requirements of this Article are applicable to all managing
26brokers, and brokers, and salespersons except those managing

HB3803- 43 -LRB099 09518 AMC 29726 b
1brokers and brokers salespersons who, during the pre-renewal
2period:
3 (1) serve in the armed services of the United States;
4 (2) serve as an elected State or federal official;
5 (3) serve as a full-time employee of the Department; or
6 (4) are admitted to practice law pursuant to Illinois
7 Supreme Court rule.
8 (c) (Blank). A person licensed as a salesperson as of April
930, 2011 shall not be required to complete the 18 hours of
10continuing education for the pre-renewal period ending April
1130, 2012 if that person takes the 30-hour post-licensing course
12to obtain a broker's license. A person licensed as a broker as
13of April 30, 2011 shall not be required to complete the 12
14hours of broker management continuing education for the
15pre-renewal period ending April 30, 2012, unless that person
16passes the proficiency exam provided for in Section 5-47 of
17this Act to qualify for a managing broker's license.
18 (d) A person receiving an initial license during the 90
19days before the renewal date shall not be required to complete
20the continuing education courses provided for in subsection (b)
21of this Section as a condition of initial license renewal.
22 (e) The continuing education requirement for salespersons,
23brokers and managing brokers shall consist of a core curriculum
24and an elective curriculum, to be established by the Advisory
25Council. In meeting the continuing education requirements of
26this Act, at least 3 hours per year or their equivalent, 6

HB3803- 44 -LRB099 09518 AMC 29726 b
1hours for each two-year pre-renewal period, shall be required
2to be completed in the core curriculum. In establishing the
3core curriculum, the Advisory Council shall consider subjects
4that will educate licensees on recent changes in applicable
5laws and new laws and refresh the licensee on areas of the
6license law and the Department policy that the Advisory Council
7deems appropriate, and any other areas that the Advisory
8Council deems timely and applicable in order to prevent
9violations of this Act and to protect the public. In
10establishing the elective curriculum, the Advisory Council
11shall consider subjects that cover the various aspects of the
12practice of real estate that are covered under the scope of
13this Act. However, the elective curriculum shall not include
14any offerings referred to in Section 5-85 of this Act.
15 (f) The subject areas of continuing education courses
16approved by the Advisory Council may include without limitation
17the following:
18 (1) license law and escrow;
19 (2) antitrust;
20 (3) fair housing;
21 (4) agency;
22 (5) appraisal;
23 (6) property management;
24 (7) residential brokerage;
25 (8) farm property management;
26 (9) rights and duties of sellers, buyers, and brokers;

HB3803- 45 -LRB099 09518 AMC 29726 b
1 (10) commercial brokerage and leasing; and
2 (11) real estate financing.
3 (g) In lieu of credit for those courses listed in
4subsection (f) of this Section, credit may be earned for
5serving as a licensed instructor in an approved course of
6continuing education. The amount of credit earned for teaching
7a course shall be the amount of continuing education credit for
8which the course is approved for licensees taking the course.
9 (h) Credit hours may be earned for self-study programs
10approved by the Advisory Council.
11 (i) A managing broker or broker salesperson may earn credit
12for a specific continuing education course only once during the
13prerenewal period.
14 (j) No more than 6 hours of continuing education credit may
15be taken or earned in one calendar day.
16 (k) To promote the offering of a uniform and consistent
17course content, the Department may provide for the development
18of a single broker management course to be offered by all
19continuing education providers who choose to offer the broker
20management continuing education course. The Department may
21contract for the development of the 12-hour broker management
22continuing education course with an outside vendor or
23consultant and, if the course is developed in this manner, the
24Department or the outside consultant shall license the use of
25that course to all approved continuing education providers who
26wish to provide the course.

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1 (l) Except as specifically provided in this Act, continuing
2education credit hours may not be earned for completion of pre
3or post-license courses. The approved 30-hour post-license
4course for broker licensees shall satisfy the continuing
5education requirement for the pre-renewal period in which the
6course is taken. The approved 45-hour brokerage administration
7and management course shall satisfy the 12-hour broker
8management continuing education requirement for the
9pre-renewal period in which the course is taken.
10(Source: P.A. 97-1002, eff. 8-17-12; 98-531, eff. 8-23-13.)
11 (225 ILCS 454/10-10)
12 (Section scheduled to be repealed on January 1, 2020)
13 Sec. 10-10. Disclosure of compensation.
14 (a) A licensee must disclose to a client the sponsoring
15broker's compensation and policy with regard to cooperating
16with brokers who represent other parties in a transaction.
17 (b) A licensee must disclose to a client all sources of
18compensation related to the transaction received by the
19licensee from a third party.
20 (c) If a licensee refers a client to a third party in which
21the licensee has greater than a 1% ownership interest or from
22which the licensee receives or may receive dividends or other
23profit sharing distributions, other than a publicly held or
24traded company, for the purpose of the client obtaining
25services related to the transaction, then the licensee shall

HB3803- 47 -LRB099 09518 AMC 29726 b
1disclose that fact to the client at the time of making the
2referral.
3 (d) If in any one transaction a sponsoring broker receives
4compensation from both the buyer and seller or lessee and
5lessor of real estate, the sponsoring broker shall disclose in
6writing to a client the fact that the compensation is being
7paid by both buyer and seller or lessee and lessor.
8 (e) Nothing in the Act shall prohibit the cooperation with
9or a payment of compensation to a person not domiciled in this
10State or country who is licensed as a real estate broker in his
11or her state or country of domicile or to a resident of a
12country that does not require a person to be licensed to act as
13a real estate broker if the person complies with the laws of
14the country in which that person resides and practices there as
15a real estate broker.
16(Source: P.A. 91-245, eff. 12-31-99; 92-217, eff. 8-2-01.)
17 (225 ILCS 454/10-15)
18 (Section scheduled to be repealed on January 1, 2020)
19 Sec. 10-15. No compensation to persons in violation of Act;
20compensation to unlicensed persons; consumer.
21 (a) No compensation may be paid to any unlicensed person in
22exchange for the person performing licensed activities in
23violation of this Act.
24 (b) No action or suit shall be instituted, nor recovery
25therein be had, in any court of this State by any person,

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1partnership, registered limited liability partnership, limited
2liability company, or corporation for compensation for any act
3done or service performed, the doing or performing of which is
4prohibited by this Act to other than licensed managing brokers,
5brokers, salespersons, or leasing agents unless the person,
6partnership, registered limited liability partnership, limited
7liability company, or corporation was duly licensed hereunder
8as a managing broker, broker, salesperson, or leasing agent
9under this Act at the time that any such act was done or
10service performed that would give rise to a cause of action for
11compensation.
12 (c) A licensee may offer compensation, including prizes,
13merchandise, services, rebates, discounts, or other
14consideration to an unlicensed person who is a party to a
15contract to buy or sell real estate or is a party to a contract
16for the lease of real estate, so long as the offer complies
17with the provisions of subdivision (35) of subsection (a) of
18Section 20-20 of this Act.
19 (d) A licensee may offer cash, gifts, prizes, awards,
20coupons, merchandise, rebates or chances to win a game of
21chance, if not prohibited by any other law or statute, to a
22consumer as an inducement to that consumer to use the services
23of the licensee even if the licensee and consumer do not
24ultimately enter into a broker-client relationship so long as
25the offer complies with the provisions of subdivision (35) of
26subsection (a) of Section 20-20 of this Act.

HB3803- 49 -LRB099 09518 AMC 29726 b
1(Source: P.A. 96-856, eff. 12-31-09.)
2 (225 ILCS 454/15-5)
3 (Section scheduled to be repealed on January 1, 2020)
4 Sec. 15-5. Legislative intent.
5 (a) The General Assembly finds that application of the
6common law of agency to the relationships among managing real
7estate brokers and brokers salespersons and consumers of real
8estate brokerage services has resulted in misunderstandings
9and consequences that have been contrary to the best interests
10of the public. The General Assembly further finds that the real
11estate brokerage industry has a significant impact upon the
12economy of the State of Illinois and that it is in the best
13interest of the public to provide codification of the
14relationships between managing real estate brokers and brokers
15salespersons and consumers of real estate brokerage services in
16order to prevent detrimental misunderstandings and
17misinterpretations of the relationships by consumers, managing
18real estate brokers, and brokers salespersons and thus promote
19and provide stability in the real estate market. This Article
2015 is enacted to govern the relationships between consumers of
21real estate brokerage services and managing real estate brokers
22and brokers salespersons to the extent not governed by an
23individual written agreement between a sponsoring broker and a
24consumer, providing that there is a relationship other than
25designated agency. This Article 15 applies to the exclusion of

HB3803- 50 -LRB099 09518 AMC 29726 b
1the common law concepts of principal and agent and to the
2fiduciary duties, which have been applied to managing real
3estate brokers, brokers salespersons, and real estate
4brokerage services.
5 (b) The General Assembly further finds that this Article 15
6is not intended to prescribe or affect contractual
7relationships between managing brokers and real estate brokers
8and the broker's affiliated licensees.
9 (c) This Article 15 may serve as a basis for private rights
10of action and defenses by sellers, buyers, landlords, tenants,
11managing brokers, and real estate brokers, and real estate
12salespersons. The private rights of action, however, do not
13extend to the provisions of any other Articles of this Act.
14(Source: P.A. 91-245, eff. 12-31-99.)
15 (225 ILCS 454/20-10)
16 (Section scheduled to be repealed on January 1, 2020)
17 Sec. 20-10. Unlicensed practice; civil penalty.
18 (a) Any person who practices, offers to practice, attempts
19to practice, or holds oneself out to practice as a managing
20real estate broker, broker real estate salesperson, or leasing
21agent without being licensed under this Act shall, in addition
22to any other penalty provided by law, pay a civil penalty to
23the Department in an amount not to exceed $25,000 for each
24offense as determined by the Department. The civil penalty
25shall be assessed by the Department after a hearing is held in

HB3803- 51 -LRB099 09518 AMC 29726 b
1accordance with the provisions set forth in this Act regarding
2the provision of a hearing for the discipline of a license.
3 (b) The Department has the authority and power to
4investigate any and all unlicensed activity.
5 (c) The civil penalty shall be paid within 60 days after
6the effective date of the order imposing the civil penalty. The
7order shall constitute a judgment and may be filed and
8execution had thereon in the same manner from any court of
9record.
10(Source: P.A. 96-856, eff. 12-31-09.)
11 (225 ILCS 454/20-20)
12 (Section scheduled to be repealed on January 1, 2020)
13 Sec. 20-20. Grounds for discipline.
14 (a) The Department may refuse to issue or renew a license,
15may place on probation, suspend, or revoke any license,
16reprimand, or take any other disciplinary or non-disciplinary
17action as the Department may deem proper and impose a fine not
18to exceed $25,000 upon any licensee or applicant under this Act
19or any person who holds himself or herself out as an applicant
20or licensee or against a licensee in handling his or her own
21property, whether held by deed, option, or otherwise, for any
22one or any combination of the following causes:
23 (1) Fraud or misrepresentation in applying for, or
24 procuring, a license under this Act or in connection with
25 applying for renewal of a license under this Act.

HB3803- 52 -LRB099 09518 AMC 29726 b
1 (2) The conviction of or plea of guilty or plea of nolo
2 contendere to a felony or misdemeanor in this State or any
3 other jurisdiction; or the entry of an administrative
4 sanction by a government agency in this State or any other
5 jurisdiction. Action taken under this paragraph (2) for a
6 misdemeanor or an administrative sanction is limited to a
7 misdemeanor or administrative sanction that has as an
8 essential element dishonesty or fraud or involves larceny,
9 embezzlement, or obtaining money, property, or credit by
10 false pretenses or by means of a confidence game.
11 (3) Inability to practice the profession with
12 reasonable judgment, skill, or safety as a result of a
13 physical illness, including, but not limited to,
14 deterioration through the aging process or loss of motor
15 skill, or a mental illness or disability.
16 (4) Practice under this Act as a licensee in a retail
17 sales establishment from an office, desk, or space that is
18 not separated from the main retail business by a separate
19 and distinct area within the establishment.
20 (5) Having been disciplined by another state, the
21 District of Columbia, a territory, a foreign nation, or a
22 governmental agency authorized to impose discipline if at
23 least one of the grounds for that discipline is the same as
24 or the equivalent of one of the grounds for which a
25 licensee may be disciplined under this Act. A certified
26 copy of the record of the action by the other state or

HB3803- 53 -LRB099 09518 AMC 29726 b
1 jurisdiction shall be prima facie evidence thereof.
2 (6) Engaging in the practice of real estate brokerage
3 without a license or after the licensee's license was
4 expired or while the license was inoperative.
5 (7) Cheating on or attempting to subvert the Real
6 Estate License Exam or continuing education exam.
7 (8) Aiding or abetting an applicant to subvert or cheat
8 on the Real Estate License Exam or continuing education
9 exam administered pursuant to this Act.
10 (9) Advertising that is inaccurate, misleading, or
11 contrary to the provisions of the Act.
12 (10) Making any substantial misrepresentation or
13 untruthful advertising.
14 (11) Making any false promises of a character likely to
15 influence, persuade, or induce.
16 (12) Pursuing a continued and flagrant course of
17 misrepresentation or the making of false promises through
18 licensees, employees, agents, advertising, or otherwise.
19 (13) Any misleading or untruthful advertising, or
20 using any trade name or insignia of membership in any real
21 estate organization of which the licensee is not a member.
22 (14) Acting for more than one party in a transaction
23 without providing written notice to all parties for whom
24 the licensee acts.
25 (15) Representing or attempting to represent a broker
26 other than the sponsoring broker.

HB3803- 54 -LRB099 09518 AMC 29726 b
1 (16) Failure to account for or to remit any moneys or
2 documents coming into his or her possession that belong to
3 others.
4 (17) Failure to maintain and deposit in a special
5 account, separate and apart from personal and other
6 business accounts, all escrow moneys belonging to others
7 entrusted to a licensee while acting as a real estate
8 broker, escrow agent, or temporary custodian of the funds
9 of others or failure to maintain all escrow moneys on
10 deposit in the account until the transactions are
11 consummated or terminated, except to the extent that the
12 moneys, or any part thereof, shall be:
13 (A) disbursed prior to the consummation or
14 termination (i) in accordance with the written
15 direction of the principals to the transaction or their
16 duly authorized agents, (ii) in accordance with
17 directions providing for the release, payment, or
18 distribution of escrow moneys contained in any written
19 contract signed by the principals to the transaction or
20 their duly authorized agents, or (iii) pursuant to an
21 order of a court of competent jurisdiction; or
22 (B) deemed abandoned and transferred to the Office
23 of the State Treasurer to be handled as unclaimed
24 property pursuant to the Uniform Disposition of
25 Unclaimed Property Act. Escrow moneys may be deemed
26 abandoned under this subparagraph (B) only: (i) in the

HB3803- 55 -LRB099 09518 AMC 29726 b
1 absence of disbursement under subparagraph (A); (ii)
2 in the absence of notice of the filing of any claim in
3 a court of competent jurisdiction; and (iii) if 6
4 months have elapsed after the receipt of a written
5 demand for the escrow moneys from one of the principals
6 to the transaction or the principal's duly authorized
7 agent.
8 The account shall be noninterest bearing, unless the
9 character of the deposit is such that payment of interest
10 thereon is otherwise required by law or unless the
11 principals to the transaction specifically require, in
12 writing, that the deposit be placed in an interest bearing
13 account.
14 (18) Failure to make available to the Department all
15 escrow records and related documents maintained in
16 connection with the practice of real estate within 24 hours
17 of a request for those documents by Department personnel.
18 (19) Failing to furnish copies upon request of
19 documents relating to a real estate transaction to a party
20 who has executed that document.
21 (20) Failure of a sponsoring broker to timely provide
22 information, sponsor cards, or termination of licenses to
23 the Department.
24 (21) Engaging in dishonorable, unethical, or
25 unprofessional conduct of a character likely to deceive,
26 defraud, or harm the public.

HB3803- 56 -LRB099 09518 AMC 29726 b
1 (22) Commingling the money or property of others with
2 his or her own money or property.
3 (23) Employing any person on a purely temporary or
4 single deal basis as a means of evading the law regarding
5 payment of commission to nonlicensees on some contemplated
6 transactions.
7 (24) Permitting the use of his or her license as a
8 broker to enable a leasing agent salesperson or unlicensed
9 person to operate a real estate business without actual
10 participation therein and control thereof by the broker.
11 (25) Any other conduct, whether of the same or a
12 different character from that specified in this Section,
13 that constitutes dishonest dealing.
14 (26) Displaying a "for rent" or "for sale" sign on any
15 property without the written consent of an owner or his or
16 her duly authorized agent or advertising by any means that
17 any property is for sale or for rent without the written
18 consent of the owner or his or her authorized agent.
19 (27) Failing to provide information requested by the
20 Department, or otherwise respond to that request, within 30
21 days of the request.
22 (28) Advertising by means of a blind advertisement,
23 except as otherwise permitted in Section 10-30 of this Act.
24 (29) Offering guaranteed sales plans, as defined in
25 clause (A) of this subdivision (29), except to the extent
26 hereinafter set forth:

HB3803- 57 -LRB099 09518 AMC 29726 b
1 (A) A "guaranteed sales plan" is any real estate
2 purchase or sales plan whereby a licensee enters into a
3 conditional or unconditional written contract with a
4 seller, prior to entering into a brokerage agreement
5 with the seller, by the terms of which a licensee
6 agrees to purchase a property of the seller within a
7 specified period of time at a specific price in the
8 event the property is not sold in accordance with the
9 terms of a brokerage agreement to be entered into
10 between the sponsoring broker and the seller.
11 (B) A licensee offering a guaranteed sales plan
12 shall provide the details and conditions of the plan in
13 writing to the party to whom the plan is offered.
14 (C) A licensee offering a guaranteed sales plan
15 shall provide to the party to whom the plan is offered
16 evidence of sufficient financial resources to satisfy
17 the commitment to purchase undertaken by the broker in
18 the plan.
19 (D) Any licensee offering a guaranteed sales plan
20 shall undertake to market the property of the seller
21 subject to the plan in the same manner in which the
22 broker would market any other property, unless the
23 agreement with the seller provides otherwise.
24 (E) The licensee cannot purchase seller's property
25 until the brokerage agreement has ended according to
26 its terms or is otherwise terminated.

HB3803- 58 -LRB099 09518 AMC 29726 b
1 (F) Any licensee who fails to perform on a
2 guaranteed sales plan in strict accordance with its
3 terms shall be subject to all the penalties provided in
4 this Act for violations thereof and, in addition, shall
5 be subject to a civil fine payable to the party injured
6 by the default in an amount of up to $25,000.
7 (30) Influencing or attempting to influence, by any
8 words or acts, a prospective seller, purchaser, occupant,
9 landlord, or tenant of real estate, in connection with
10 viewing, buying, or leasing real estate, so as to promote
11 or tend to promote the continuance or maintenance of
12 racially and religiously segregated housing or so as to
13 retard, obstruct, or discourage racially integrated
14 housing on or in any street, block, neighborhood, or
15 community.
16 (31) Engaging in any act that constitutes a violation
17 of any provision of Article 3 of the Illinois Human Rights
18 Act, whether or not a complaint has been filed with or
19 adjudicated by the Human Rights Commission.
20 (32) Inducing any party to a contract of sale or lease
21 or brokerage agreement to break the contract of sale or
22 lease or brokerage agreement for the purpose of
23 substituting, in lieu thereof, a new contract for sale or
24 lease or brokerage agreement with a third party.
25 (33) Negotiating a sale, exchange, or lease of real
26 estate directly with any person if the licensee knows that

HB3803- 59 -LRB099 09518 AMC 29726 b
1 the person has an exclusive brokerage agreement with
2 another broker, unless specifically authorized by that
3 broker.
4 (34) When a licensee is also an attorney, acting as the
5 attorney for either the buyer or the seller in the same
6 transaction in which the licensee is acting or has acted as
7 a managing broker or broker salesperson.
8 (35) Advertising or offering merchandise or services
9 as free if any conditions or obligations necessary for
10 receiving the merchandise or services are not disclosed in
11 the same advertisement or offer. These conditions or
12 obligations include without limitation the requirement
13 that the recipient attend a promotional activity or visit a
14 real estate site. As used in this subdivision (35), "free"
15 includes terms such as "award", "prize", "no charge", "free
16 of charge", "without charge", and similar words or phrases
17 that reasonably lead a person to believe that he or she may
18 receive or has been selected to receive something of value,
19 without any conditions or obligations on the part of the
20 recipient.
21 (36) Disregarding or violating any provision of the
22 Land Sales Registration Act of 1989, the Illinois Real
23 Estate Time-Share Act, or the published rules promulgated
24 by the Department to enforce those Acts.
25 (37) Violating the terms of a disciplinary order issued
26 by the Department.

HB3803- 60 -LRB099 09518 AMC 29726 b
1 (38) Paying or failing to disclose compensation in
2 violation of Article 10 of this Act.
3 (39) Requiring a party to a transaction who is not a
4 client of the licensee to allow the licensee to retain a
5 portion of the escrow moneys for payment of the licensee's
6 commission or expenses as a condition for release of the
7 escrow moneys to that party.
8 (40) Disregarding or violating any provision of this
9 Act or the published rules promulgated by the Department to
10 enforce this Act or aiding or abetting any individual,
11 partnership, registered limited liability partnership,
12 limited liability company, or corporation in disregarding
13 any provision of this Act or the published rules
14 promulgated by the Department to enforce this Act.
15 (41) Failing to provide the minimum services required
16 by Section 15-75 of this Act when acting under an exclusive
17 brokerage agreement.
18 (42) Habitual or excessive use or addiction to alcohol,
19 narcotics, stimulants, or any other chemical agent or drug
20 that results in a managing broker, broker, salesperson, or
21 leasing agent's inability to practice with reasonable
22 skill or safety.
23 (43) Enabling, aiding, or abetting an auctioneer, as
24 defined in the Auction License Act, to conduct a real
25 estate auction in a manner that is in violation of this
26 Act.

HB3803- 61 -LRB099 09518 AMC 29726 b
1 (b) The Department may refuse to issue or renew or may
2suspend the license of any person who fails to file a return,
3pay the tax, penalty or interest shown in a filed return, or
4pay any final assessment of tax, penalty, or interest, as
5required by any tax Act administered by the Department of
6Revenue, until such time as the requirements of that tax Act
7are satisfied in accordance with subsection (g) of Section
82105-15 of the Civil Administrative Code of Illinois.
9 (c) The Department shall deny a license or renewal
10authorized by this Act to a person who has defaulted on an
11educational loan or scholarship provided or guaranteed by the
12Illinois Student Assistance Commission or any governmental
13agency of this State in accordance with item (5) of subsection
14(a) of Section 2105-15 of the Civil Administrative Code of
15Illinois.
16 (d) In cases where the Department of Healthcare and Family
17Services (formerly Department of Public Aid) has previously
18determined that a licensee or a potential licensee is more than
1930 days delinquent in the payment of child support and has
20subsequently certified the delinquency to the Department may
21refuse to issue or renew or may revoke or suspend that person's
22license or may take other disciplinary action against that
23person based solely upon the certification of delinquency made
24by the Department of Healthcare and Family Services in
25accordance with item (5) of subsection (a) of Section 2105-15
26of the Civil Administrative Code of Illinois.

HB3803- 62 -LRB099 09518 AMC 29726 b
1 (e) In enforcing this Section, the Department or Board upon
2a showing of a possible violation may compel an individual
3licensed to practice under this Act, or who has applied for
4licensure under this Act, to submit to a mental or physical
5examination, or both, as required by and at the expense of the
6Department. The Department or Board may order the examining
7physician to present testimony concerning the mental or
8physical examination of the licensee or applicant. No
9information shall be excluded by reason of any common law or
10statutory privilege relating to communications between the
11licensee or applicant and the examining physician. The
12examining physicians shall be specifically designated by the
13Board or Department. The individual to be examined may have, at
14his or her own expense, another physician of his or her choice
15present during all aspects of this examination. Failure of an
16individual to submit to a mental or physical examination, when
17directed, shall be grounds for suspension of his or her license
18until the individual submits to the examination if the
19Department finds, after notice and hearing, that the refusal to
20submit to the examination was without reasonable cause.
21 If the Department or Board finds an individual unable to
22practice because of the reasons set forth in this Section, the
23Department or Board may require that individual to submit to
24care, counseling, or treatment by physicians approved or
25designated by the Department or Board, as a condition, term, or
26restriction for continued, reinstated, or renewed licensure to

HB3803- 63 -LRB099 09518 AMC 29726 b
1practice; or, in lieu of care, counseling, or treatment, the
2Department may file, or the Board may recommend to the
3Department to file, a complaint to immediately suspend, revoke,
4or otherwise discipline the license of the individual. An
5individual whose license was granted, continued, reinstated,
6renewed, disciplined or supervised subject to such terms,
7conditions, or restrictions, and who fails to comply with such
8terms, conditions, or restrictions, shall be referred to the
9Secretary for a determination as to whether the individual
10shall have his or her license suspended immediately, pending a
11hearing by the Department.
12 In instances in which the Secretary immediately suspends a
13person's license under this Section, a hearing on that person's
14license must be convened by the Department within 30 days after
15the suspension and completed without appreciable delay. The
16Department and Board shall have the authority to review the
17subject individual's record of treatment and counseling
18regarding the impairment to the extent permitted by applicable
19federal statutes and regulations safeguarding the
20confidentiality of medical records.
21 An individual licensed under this Act and affected under
22this Section shall be afforded an opportunity to demonstrate to
23the Department or Board that he or she can resume practice in
24compliance with acceptable and prevailing standards under the
25provisions of his or her license.
26(Source: P.A. 97-813, eff. 7-13-12; 97-1002, eff. 8-17-12;

HB3803- 64 -LRB099 09518 AMC 29726 b
198-553, eff. 1-1-14; 98-756, eff. 7-16-14.)
2 (225 ILCS 454/20-21)
3 (Section scheduled to be repealed on January 1, 2020)
4 Sec. 20-21. Injunctions; cease and desist order.
5 (a) If any person violates the provisions of this Act, the
6Secretary may, in the name of the People of the State of
7Illinois, through the Attorney General of the State of Illinois
8or the State's Attorney for any county in which the action is
9brought, petition for an order enjoining the violation or for
10an order enforcing compliance with this Act. Upon the filing of
11a verified petition in court, the court may issue a temporary
12restraining order, without notice or condition, and may
13preliminarily and permanently enjoin the violation. If it is
14established that the person has violated or is violating the
15injunction, the Court may punish the offender for contempt of
16court. Proceedings under this Section shall be in addition to,
17and not in lieu of, all other remedies and penalties provided
18by this Act.
19 (b) Whenever in the opinion of the Department a person
20violates a provision of this Act, the Department may issue a
21ruling to show cause why an order to cease and desist should
22not be entered against that person. The rule shall clearly set
23forth the grounds relied upon by the Department and shall allow
24at least 7 days from the date of the rule to file an answer to
25the satisfaction of the Department. Failure to answer to the

HB3803- 65 -LRB099 09518 AMC 29726 b
1satisfaction of the Department shall cause an order to cease
2and desist to be issued immediately.
3 (c) Other than as provided in Section 5-20 of this Act, if
4any person practices as a managing real estate broker, broker,
5real estate salesperson or leasing agent or holds himself or
6herself out as a licensed sponsoring broker, managing broker,
7real estate broker, real estate salesperson or leasing agent
8under this Act without being issued a valid existing license by
9the Department, then any licensed sponsoring broker, managing
10broker, real estate broker, real estate salesperson, leasing
11agent, any interested party, or any person injured thereby may,
12in addition to the Secretary, petition for relief as provided
13in subsection (a) of this Section.
14(Source: P.A. 96-856, eff. 12-31-09.)
15 (225 ILCS 454/20-22)
16 (Section scheduled to be repealed on January 1, 2020)
17 Sec. 20-22. Violations. Any person who is found working or
18acting as a managing broker, real estate broker, real estate
19salesperson, or leasing agent or holding himself or herself out
20as a licensed sponsoring broker, managing broker, real estate
21broker, real estate salesperson, or leasing agent without being
22issued a valid existing license is guilty of a Class A
23misdemeanor and on conviction of a second or subsequent offense
24the violator shall be guilty of a Class 4 felony.
25(Source: P.A. 96-856, eff. 12-31-09.)

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1 (225 ILCS 454/20-85)
2 (Section scheduled to be repealed on January 1, 2020)
3 Sec. 20-85. Recovery from Real Estate Recovery Fund. The
4Department shall maintain a Real Estate Recovery Fund from
5which any person aggrieved by an act, representation,
6transaction, or conduct of a licensee or unlicensed employee of
7a licensee that is in violation of this Act or the rules
8promulgated pursuant thereto, constitutes embezzlement of
9money or property, or results in money or property being
10unlawfully obtained from any person by false pretenses,
11artifice, trickery, or forgery or by reason of any fraud,
12misrepresentation, discrimination, or deceit by or on the part
13of any such licensee or the unlicensed employee of a licensee
14and that results in a loss of actual cash money, as opposed to
15losses in market value, rent, or security deposits, may
16recover. The aggrieved person may recover, by a post-judgment
17order of the circuit court of the county where the violation
18occurred in a proceeding described in Section 20-90 of this
19Act, an amount of not more than $25,000 from the Fund for
20damages sustained by the act, representation, transaction, or
21conduct, together with costs of suit and attorney's fees
22incurred in connection therewith of not to exceed 15% of the
23amount of the recovery ordered paid from the Fund. However, no
24person licensee may recover from the Fund unless the court
25finds that the person suffered a loss resulting from

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1intentional misconduct. The post-judgment order shall not
2include interest on the judgment. The maximum liability against
3the Fund arising out of any one act shall be as provided in
4this Section, and the post-judgment order shall spread the
5award equitably among all co-owners or otherwise aggrieved
6persons, if any. The maximum liability against the Fund arising
7out of the activities of any one licensee or one unlicensed
8employee of a licensee, since January 1, 1974, shall be
9$100,000. Nothing in this Section shall be construed to
10authorize recovery from the Fund unless the loss of the
11aggrieved person results from an act or omission of a licensee
12under this Act who was at the time of the act or omission
13acting in such capacity or was apparently acting in such
14capacity or their unlicensed employee and unless the aggrieved
15person has obtained a valid judgment and post-judgment order of
16the court as provided for in Section 20-90 of this Act. No
17person aggrieved by an act, representation, or transaction that
18is in violation of the Illinois Real Estate Time-Share Act or
19the Land Sales Registration Act of 1989 may recover from the
20Fund.
21(Source: P.A. 96-856, eff. 12-31-09; 97-1002, eff. 8-17-12.)
22 (225 ILCS 454/25-10)
23 (Section scheduled to be repealed on January 1, 2020)
24 Sec. 25-10. Real Estate Administration and Disciplinary
25Board; duties. There is created the Real Estate Administration

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1and Disciplinary Board. The Board shall be composed of 9
2persons appointed by the Governor. Members shall be appointed
3to the Board subject to the following conditions:
4 (1) All members shall have been residents and citizens
5 of this State for at least 6 years prior to the date of
6 appointment.
7 (2) Six members shall have been actively engaged as
8 managing brokers or brokers salespersons or both for at
9 least the 10 years prior to the appointment.
10 (3) Three members of the Board shall be public members
11 who represent consumer interests.
12 None of these members shall be (i) a person who is licensed
13under this Act or a similar Act of another jurisdiction, (ii)
14the spouse or family member of a licensee, (iii) a person who
15has an ownership interest in a real estate brokerage business,
16or (iv) a person the Department determines to have any other
17connection with a real estate brokerage business or a licensee.
18The members' terms shall be 4 years or until their successor is
19appointed, and the expiration of their terms shall be
20staggered. Appointments to fill vacancies shall be for the
21unexpired portion of the term. The membership of the Board
22should reasonably reflect the geographic distribution of the
23licensee population in this State. In making the appointments,
24the Governor shall give due consideration to the
25recommendations by members and organizations of the
26profession. The Governor may terminate the appointment of any

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1member for cause that in the opinion of the Governor reasonably
2justifies the termination. Cause for termination shall include
3without limitation misconduct, incapacity, neglect of duty, or
4missing 4 board meetings during any one calendar year. Each
5member of the Board may receive a per diem stipend in an amount
6to be determined by the Secretary. Each member shall be paid
7his or her necessary expenses while engaged in the performance
8of his or her duties. Such compensation and expenses shall be
9paid out of the Real Estate License Administration Fund. The
10Secretary shall consider the recommendations of the Board on
11questions involving standards of professional conduct,
12discipline, and examination of candidates under this Act. The
13Department, after notifying and considering the
14recommendations of the Board, if any, may issue rules,
15consistent with the provisions of this Act, for the
16administration and enforcement thereof and may prescribe forms
17that shall be used in connection therewith. Five Board members
18shall constitute a quorum. A quorum is required for all Board
19decisions.
20(Source: P.A. 98-1109, eff. 1-1-15.)
21 (225 ILCS 454/25-25)
22 (Section scheduled to be repealed on January 1, 2020)
23 Sec. 25-25. Real Estate Research and Education Fund. A
24special fund to be known as the Real Estate Research and
25Education Fund is created and shall be held in trust in the

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1State Treasury. Annually, on September 15th, the State
2Treasurer shall cause a transfer of $125,000 to the Real Estate
3Research and Education Fund from the Real Estate License
4Administration Fund. The Real Estate Research and Education
5Fund shall be administered by the Department. Money deposited
6in the Real Estate Research and Education Fund may be used for
7research and education at state institutions of higher
8education or other organizations for research and the
9advancement of education in the real estate industry. Of the
10$125,000 annually transferred into the Real Estate Research and
11Education Fund, $15,000 shall be used to fund a scholarship
12program for persons of minority racial origin who wish to
13pursue a course of study in the field of real estate. For the
14purposes of this Section, "course of study" means a course or
15courses that are part of a program of courses in the field of
16real estate designed to further an individual's knowledge or
17expertise in the field of real estate. These courses shall
18include without limitation courses that a salesperson licensed
19under this Act must complete to qualify for a real estate
20broker's license, courses that a broker licensed under this Act
21must complete to qualify for a managing broker's license,
22courses required to obtain the Graduate Realtors Institute
23designation, and any other courses or programs offered by
24accredited colleges, universities, or other institutions of
25higher education in Illinois. The scholarship program shall be
26administered by the Department or its designee. Moneys in the

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1Real Estate Research and Education Fund may be invested and
2reinvested in the same manner as funds in the Real Estate
3Recovery Fund and all earnings, interest, and dividends
4received from such investments shall be deposited in the Real
5Estate Research and Education Fund and may be used for the same
6purposes as moneys transferred to the Real Estate Research and
7Education Fund. Moneys in the Real Estate Research and
8Education Fund may be transferred to the Professions Indirect
9Cost Fund as authorized under Section 2105-300 of the
10Department of Professional Regulation Law of the Civil
11Administrative Code of Illinois.
12(Source: P.A. 96-856, eff. 12-31-09.)
13 (225 ILCS 454/30-15)
14 (Section scheduled to be repealed on January 1, 2020)
15 Sec. 30-15. Licensing of continuing education schools;
16approval of courses.
17 (a) Only continuing education schools in possession of a
18valid continuing education school license may provide real
19estate continuing education courses that will satisfy the
20requirements of this Act. Pre-license schools licensed to offer
21pre-license education courses for salespersons, brokers and
22managing brokers shall qualify for a continuing education
23school license upon completion of an application and the
24submission of the required fee. Every entity that desires to
25obtain a continuing education school license shall make

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1application to the Department in writing in forms prescribed by
2the Department and pay the fee prescribed by rule. In addition
3to any other information required to be contained in the
4application, every application for an original or renewed
5license shall include the applicant's Social Security number.
6 (b) The criteria for a continuing education license shall
7include the following:
8 (1) A sound financial base for establishing,
9 promoting, and delivering the necessary courses. Budget
10 planning for the School's courses should be clearly
11 projected.
12 (2) A sufficient number of qualified, licensed
13 instructors as provided by rule.
14 (3) Adequate support personnel to assist with
15 administrative matters and technical assistance.
16 (4) Maintenance and availability of records of
17 participation for licensees.
18 (5) The ability to provide each participant who
19 successfully completes an approved program with a
20 certificate of completion signed by the administrator of a
21 licensed continuing education school on forms provided by
22 the Department.
23 (6) The continuing education school must have a written
24 policy dealing with procedures for the management of
25 grievances and fee refunds.
26 (7) The continuing education school shall maintain

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1 lesson plans and examinations for each course.
2 (8) The continuing education school shall require a 70%
3 passing grade for successful completion of any continuing
4 education course.
5 (9) The continuing education school shall identify and
6 use instructors who will teach in a planned program.
7 Suggested criteria for instructor selections include:
8 (A) appropriate credentials;
9 (B) competence as a teacher;
10 (C) knowledge of content area; and
11 (D) qualification by experience.
12 (10) The continuing education school shall provide a
13 proctor or an electronic means of proctoring for each
14 examination. The continuing education school shall be
15 responsible for the conduct of the proctor. The duties and
16 responsibilities of a proctor shall be established by rule.
17 (11) The continuing education school must provide for
18 closed book examinations for each course unless the
19 Advisory Council excuses this requirement based on the
20 complexity of the course material.
21 (c) Advertising and promotion of continuing education
22activities must be carried out in a responsible fashion,
23clearly showing the educational objectives of the activity, the
24nature of the audience that may benefit from the activity, the
25cost of the activity to the participant and the items covered
26by the cost, the amount of credit that can be earned, and the

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1credentials of the faculty.
2 (d) The Department may or upon request of the Advisory
3Council shall, after notice, cause a continuing education
4school to attend an informal conference before the Advisory
5Council for failure to comply with any requirement for
6licensure or for failure to comply with any provision of this
7Act or the rules for the administration of this Act. The
8Advisory Council shall make a recommendation to the Board as a
9result of its findings at the conclusion of any such informal
10conference.
11 (e) All continuing education schools shall maintain these
12minimum criteria and pay the required fee in order to retain
13their continuing education school license.
14 (f) All continuing education schools shall submit, at the
15time of initial application and with each license renewal, a
16list of courses with course materials to be offered by the
17continuing education school. The Department, however, shall
18establish a mechanism whereby continuing education schools may
19apply for and obtain approval for continuing education courses
20that are submitted after the time of initial application or
21renewal. The Department shall provide to each continuing
22education school a certificate for each approved continuing
23education course. All continuing education courses shall be
24valid for the period coinciding with the term of license of the
25continuing education school. All continuing education schools
26shall provide a copy of the certificate of the continuing

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1education course within the course materials given to each
2student or shall display a copy of the certificate of the
3continuing education course in a conspicuous place at the
4location of the class.
5 (g) Each continuing education school shall provide to the
6Department a monthly report in a format determined by the
7Department, with information concerning students who
8successfully completed all approved continuing education
9courses offered by the continuing education school for the
10prior month.
11 (h) The Department, upon the recommendation of the Advisory
12Council, may temporarily suspend a licensed continuing
13education school's approved courses without hearing and refuse
14to accept successful completion of or participation in any of
15these continuing education courses for continuing education
16credit from that school upon the failure of that continuing
17education school to comply with the provisions of this Act or
18the rules for the administration of this Act, until such time
19as the Department receives satisfactory assurance of
20compliance. The Department shall notify the continuing
21education school of the noncompliance and may initiate
22disciplinary proceedings pursuant to this Act. The Department
23may refuse to issue, suspend, revoke, or otherwise discipline
24the license of a continuing education school or may withdraw
25approval of a continuing education course for good cause.
26Failure to comply with the requirements of this Section or any

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1other requirements established by rule shall be deemed to be
2good cause. Disciplinary proceedings shall be conducted by the
3Board in the same manner as other disciplinary proceedings
4under this Act.
5(Source: P.A. 96-856, eff. 12-31-09.)
6 (225 ILCS 454/35-5)
7 (Section scheduled to be repealed on January 1, 2020)
8 Sec. 35-5. Savings provisions.
9 (a) This Act is intended to replace the Real Estate License
10Act of 1983 in all respects.
11 (b) The Beginning December 31, 1999, the rights, powers,
12and duties exercised by the Office of Banks and Real Estate
13under the Real Estate License Act of 1983 shall continue to be
14vested in, be the obligation of, and shall be exercised by the
15Division of Real Estate of the Department of Financial and
16Professional Regulation Office of Banks and Real Estate under
17the provisions of this Act.
18 (c) This Act does not affect any act done, ratified, or
19cancelled, or any right occurring or established, or any action
20or proceeding had or commenced in an administrative, civil, or
21criminal cause before December 31, 1999, by the Office of Banks
22and Real Estate under the Real Estate License Act of 1983, and
23those actions or proceedings may be prosecuted and continued by
24the Division of Real Estate of the Department of Financial and
25Professional Regulation Office of Banks and Real Estate under

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1this Act.
2 (d) This Act does not affect any license, certificate,
3permit, or other form of licensure or authorization issued by
4the Office of Banks and Real Estate under the Real Estate
5License Act of 1983 or by the Division of Professional
6Regulation of the Department of Financial and Professional
7Regulation under this Act, and all such licenses, certificates,
8permits, or other form of licensure or authorization shall
9continue to be valid under the terms and conditions of this
10Act.
11 (e) The rules adopted by the Office of Banks and Real
12Estate relating to the Real Estate License Act of 1983, unless
13inconsistent with the provisions of this Act, are not affected
14by this Act, and on December 31, 1999 those rules become the
15rules under this Act. The Office of Banks and Real Estate
16shall, as soon as practicable, adopt new or amended rules
17consistent with the provisions of this Act.
18 (f) This Act does not affect any discipline, suspension, or
19termination taken under the Real Estate License Act of 1983 and
20that discipline, suspension, or termination shall be continued
21under this Act.
22 (g) This Act does not affect any appointments, term
23limitations, years served, or other matters relating to
24individuals serving on any board or council under the Real
25Estate License Act of 1983, and these appointments, term
26limitations, years served, and other matters shall be continued

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1under this Act.
2(Source: P.A. 91-245, eff. 12-31-99.)
3 (225 ILCS 454/5-46 rep.)
4 (225 ILCS 454/5-47 rep.)
5 Section 10. The Real Estate License Act of 2000 is amended
6by repealing Sections 5-46 and 5-47.

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1 INDEX
2 Statutes amended in order of appearance
3 225 ILCS 454/1-10
4 225 ILCS 454/5-5
5 225 ILCS 454/5-10
6 225 ILCS 454/5-15
7 225 ILCS 454/5-20
8 225 ILCS 454/5-26
9 225 ILCS 454/5-27
10 225 ILCS 454/5-28
11 225 ILCS 454/5-32
12 225 ILCS 454/5-35
13 225 ILCS 454/5-41
14 225 ILCS 454/5-50
15 225 ILCS 454/5-60
16 225 ILCS 454/5-70
17 225 ILCS 454/10-10
18 225 ILCS 454/10-15
19 225 ILCS 454/15-5
20 225 ILCS 454/20-10
21 225 ILCS 454/20-20
22 225 ILCS 454/20-21
23 225 ILCS 454/20-22
24 225 ILCS 454/20-85
25 225 ILCS 454/25-10

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