Rep. Keith Farnham
Filed: 4/17/2013
 
 

 

 

 
09800HB0598ham001LRB098 03420 MGM 44648 a



1
AMENDMENT TO HOUSE BILL 598 




2    AMENDMENT NO. ______. Amend House Bill 598 by replacing 
3everything after the enacting clause with the following:

 
4    "Section 5. The Real Estate License Act of 2000 is amended  
5by changing Section 10-10 as follows:
 



6    (225 ILCS 454/10-10)



7    (Section scheduled to be repealed on January 1, 2020)

8    Sec. 10-10. Disclosure of compensation. 

9    (a) A licensee must disclose to a client the sponsoring 
10broker's
compensation and policy with
regard to cooperating 
11with brokers who represent other parties in a
transaction.

12    (b) A licensee must disclose to a client all sources of 
13compensation related
to the transaction
received by the 
14licensee from a third party.

15    (c) If a licensee refers a client to a third party in which 
16the licensee has
greater than a 1% ownership interest
or from 
 
 
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1which the licensee receives or may receive dividends or other 
2profit
sharing distributions, other than a
publicly held or 
3traded company, for the purpose of the client obtaining

4services related to the transaction, then the
licensee shall 
5disclose that fact to the client at the time of making the

6referral.

7    (d) If in any one transaction a sponsoring broker receives 
8compensation from
both the buyer
and seller or lessee and 
9lessor of real estate, the sponsoring broker shall
disclose in 
10writing to a
client the fact that the compensation is being 
11paid by both buyer and seller or
lessee and lessor.

12    (e) Nothing in the Act shall prohibit the cooperation with 
13or a payment of
compensation to a
person not domiciled in this 
14State or country who is licensed as a real
estate broker in
his 
15or her state or country of domicile or to a resident of a 
16country
that does not require a person to be licensed to act as 
17a real estate broker if
the person complies with the laws of 
18the country in which that person resides
and practices there as 
19a real estate broker.

20    (f) Any broker or other party representing an individual, 
21company, or other entity
seeking to lease commercial real 
22estate, including retail, office, or industrial property, but 
23not
residential property, in excess of 3,000 square feet of 
24floor space for a term of one year or
more,  shall, before 
25engaging in any activity in connection with the
representation, 
26provide the tenant with a written statement setting forth, in 
 
 
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1reasonable detail, the basis on which the broker intends to 
2charge a commission or fee for the representation,
such as 
3percentage of rent, charge per square foot of floor space per 
4year, a fixed amount, or any other other
charge, and a 
5reasonable estimate of the dollar amount of the fee.
6    (g) Any owner of commercial real estate shall, before 
7leasing floor space in excess of 3,000 square feet for a period 
8of one year or more, provide the tenant with a written 
9statement of all commissions to be paid to a broker  in 
10connection with the transaction.
11    (h) Any broker or owner of commercial real estate who fails 
12to comply with the requirements of subsections (f) and (g) of 
13this Section in connection with any signed lease shall be 
14liable to the tenant under the lease in an amount up to 3 times  
15the amount of the commission or other fees charged from the 
16transaction, plus any reasonable legal fees incurred in 
17enforcing this subsection (h). 
18(Source: P.A. 91-245, eff. 12-31-99; 92-217, eff. 8-2-01.)".