SB3044ham001 98TH GENERAL ASSEMBLY

Rep. Robert Rita

Filed: 5/22/2014

 

 


 

 


 
09800SB3044ham001LRB098 17651 ZMM 60019 a

1
AMENDMENT TO SENATE BILL 3044

2    AMENDMENT NO. ______. Amend Senate Bill 3044 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Real Estate License Act of 2000 is amended
5by changing Sections 1-10, 5-27, and 25-10 and by adding
6Section 10-45 as follows:
 
7    (225 ILCS 454/1-10)
8    (Section scheduled to be repealed on January 1, 2020)
9    Sec. 1-10. Definitions. In this Act, unless the context
10otherwise requires:
11    "Act" means the Real Estate License Act of 2000.
12    "Address of Record" means the designated address recorded
13by the Department in the applicant's or licensee's application
14file or license file as maintained by the Department's
15licensure maintenance unit. It is the duty of the applicant or
16licensee to inform the Department of any change of address, and

 

 

09800SB3044ham001- 2 -LRB098 17651 ZMM 60019 a

1those changes must be made either through the Department's
2website or by contacting the Department.
3    "Advisory Council" means the Real Estate Education
4Advisory Council created under Section 30-10 of this Act.
5    "Agency" means a relationship in which a real estate broker
6or licensee, whether directly or through an affiliated
7licensee, represents a consumer by the consumer's consent,
8whether express or implied, in a real property transaction.
9    "Applicant" means any person, as defined in this Section,
10who applies to the Department for a valid license as a real
11estate broker, real estate salesperson, or leasing agent.
12    "Blind advertisement" means any real estate advertisement
13that does not include the sponsoring broker's business name and
14that is used by any licensee regarding the sale or lease of
15real estate, including his or her own, licensed activities, or
16the hiring of any licensee under this Act. The broker's
17business name in the case of a franchise shall include the
18franchise affiliation as well as the name of the individual
19firm.
20    "Board" means the Real Estate Administration and
21Disciplinary Board of the Department as created by Section
2225-10 of this Act.
23    "Branch office" means a sponsoring broker's office other
24than the sponsoring broker's principal office.
25    "Broker" means an individual, partnership, limited
26liability company, corporation, or registered limited

 

 

09800SB3044ham001- 3 -LRB098 17651 ZMM 60019 a

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

 

 

09800SB3044ham001- 4 -LRB098 17651 ZMM 60019 a

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

 

 

09800SB3044ham001- 5 -LRB098 17651 ZMM 60019 a

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

 

 

09800SB3044ham001- 6 -LRB098 17651 ZMM 60019 a

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

 

 

09800SB3044ham001- 7 -LRB098 17651 ZMM 60019 a

1licensed activities.
2    "Continuing education school" means any person licensed by
3the Department as a school for continuing education in
4accordance with Section 30-15 of this Act.
5    "Coordinator" means the Coordinator of Real Estate created
6in Section 25-15 of this Act.
7    "Credit hour" means 50 minutes of classroom instruction in
8course work that meets the requirements set forth in rules
9adopted by the Department.
10    "Customer" means a consumer who is not being represented by
11the licensee but for whom the licensee is performing
12ministerial acts.
13    "Department" means the Department of Financial and
14Professional Regulation.
15    "Designated agency" means a contractual relationship
16between a sponsoring broker and a client under Section 15-50 of
17this Act in which one or more licensees associated with or
18employed by the broker are designated as agent of the client.
19    "Designated agent" means a sponsored licensee named by a
20sponsoring broker as the legal agent of a client, as provided
21for in Section 15-50 of this Act.
22    "Dual agency" means an agency relationship in which a
23licensee is representing both buyer and seller or both landlord
24and tenant in the same transaction. When the agency
25relationship is a designated agency, the question of whether
26there is a dual agency shall be determined by the agency

 

 

09800SB3044ham001- 8 -LRB098 17651 ZMM 60019 a

1relationships of the designated agent of the parties and not of
2the sponsoring broker.
3    "Employee" or other derivative of the word "employee", when
4used to refer to, describe, or delineate the relationship
5between a real estate broker and a real estate salesperson,
6another real estate broker, or a leasing agent, shall be
7construed to include an independent contractor relationship,
8provided that a written agreement exists that clearly
9establishes and states the relationship. All responsibilities
10of a broker shall remain.
11    "Escrow moneys" means all moneys, promissory notes or any
12other type or manner of legal tender or financial consideration
13deposited with any person for the benefit of the parties to the
14transaction. A transaction exists once an agreement has been
15reached and an accepted real estate contract signed or lease
16agreed to by the parties. Escrow moneys includes without
17limitation earnest moneys and security deposits, except those
18security deposits in which the person holding the security
19deposit is also the sole owner of the property being leased and
20for which the security deposit is being held.
21    "Electronic means of proctoring" means a methodology
22providing assurance that the person taking a test and
23completing the answers to questions is the person seeking
24licensure or credit for continuing education and is doing so
25without the aid of a third party or other device.
26    "Exclusive brokerage agreement" means a written brokerage

 

 

09800SB3044ham001- 9 -LRB098 17651 ZMM 60019 a

1agreement that provides that the sponsoring broker has the sole
2right, through one or more sponsored licensees, to act as the
3exclusive designated agent or representative of the client and
4that meets the requirements of Section 15-75 of this Act.
5    "Inoperative" means a status of licensure where the
6licensee holds a current license under this Act, but the
7licensee is prohibited from engaging in licensed activities
8because the licensee is unsponsored or the license of the
9sponsoring broker with whom the licensee is associated or by
10whom he or she is employed is currently expired, revoked,
11suspended, or otherwise rendered invalid under this Act.
12    "Interactive delivery method" means delivery of a course by
13an instructor through a medium allowing for 2-way communication
14between the instructor and a student in which either can
15initiate or respond to questions.
16    "Leads" means the name or names of a potential buyer,
17seller, lessor, lessee, or client of a licensee.
18    "Leasing Agent" means a person who is employed by a real
19estate broker to engage in licensed activities limited to
20leasing residential real estate who has obtained a license as
21provided for in Section 5-5 of this Act.
22    "License" means the document issued by the Department
23certifying that the person named thereon has fulfilled all
24requirements prerequisite to licensure under this Act.
25    "Licensed activities" means those activities listed in the
26definition of "broker" under this Section.

 

 

09800SB3044ham001- 10 -LRB098 17651 ZMM 60019 a

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

 

 

09800SB3044ham001- 11 -LRB098 17651 ZMM 60019 a

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

 

 

09800SB3044ham001- 12 -LRB098 17651 ZMM 60019 a

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

 

 

09800SB3044ham001- 13 -LRB098 17651 ZMM 60019 a

1Section.
2    "Secretary" means the Secretary of the Department of
3Financial and Professional Regulation, or a person authorized
4by the Secretary to act in the Secretary's stead.
5    "Sponsoring broker" means the broker who has issued a
6sponsor card to a licensed salesperson, another licensed
7broker, or a leasing agent.
8    "Sponsor card" means the temporary permit issued by the
9sponsoring real estate broker certifying that the real estate
10broker, real estate salesperson, or leasing agent named thereon
11is employed by or associated by written agreement with the
12sponsoring real estate broker, as provided for in Section 5-40
13of this Act.
14(Source: P.A. 98-531, eff. 8-23-13.)
 
15    (225 ILCS 454/5-27)
16    (Section scheduled to be repealed on January 1, 2020)
17    Sec. 5-27. Requirements for licensure as a broker.
18    (a) Every applicant for licensure as a broker must meet the
19following qualifications:
20        (1) Be at least 21 years of age. After April 30, 2011,
21    the minimum age of 21 years shall be waived for any person
22    seeking a license as a broker who has attained the age of
23    18 and can provide evidence of the successful completion of
24    at least 4 semesters of post-secondary school study as a
25    full-time student or the equivalent, with major emphasis on

 

 

09800SB3044ham001- 14 -LRB098 17651 ZMM 60019 a

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 oath
9    by the applicant;
10        (4) Prior to May 1, 2011, provide (i) satisfactory
11    evidence of having completed at least 120 classroom hours,
12    45 of which shall be those hours required to obtain a
13    salesperson's license plus 15 hours in brokerage
14    administration courses, in real estate courses approved by
15    the Advisory Council or (ii) for applicants who currently
16    hold a valid real estate salesperson's license, give
17    satisfactory evidence of having completed at least 75 hours
18    in real estate courses, not including the courses that are
19    required to obtain a salesperson's license, approved by the
20    Advisory Council;
21        (5) After April 30, 2011, provide satisfactory
22    evidence of having completed 90 hours of instruction in
23    real estate courses approved by the Advisory Council, 15
24    hours of which must consist of situational and case studies
25    presented in the classroom or by other interactive delivery
26    method presenting instruction and real time discussion

 

 

09800SB3044ham001- 15 -LRB098 17651 ZMM 60019 a

1    between the instructor and the students;
2        (6) Personally take and pass a written examination
3    authorized by the Department;
4        (7) Present a valid application for issuance of a
5    license accompanied by a sponsor card and the fees
6    specified by rule.
7    (b) The requirements specified in items (4) and (5) of
8subsection (a) of this Section do not apply to applicants who
9are currently admitted to practice law by the Supreme Court of
10Illinois and are currently in active standing.
11    (c) No applicant shall engage in any of the activities
12covered by this Act until a valid sponsor card has been issued
13to such applicant. The sponsor card shall be valid for a
14maximum period of 45 days after the date of issuance unless
15extended for good cause as provided by rule.
16    (d) All licenses should be readily available to the public
17at their place of business.
18    (e) An individual holding an active license as a managing
19broker may return the license to the Department along with a
20form provided by the Department and shall be issued a broker's
21license in exchange. Any individual obtaining a broker's
22license under this subsection (e) shall be considered as having
23obtained a broker's license by education and passing the
24required test and shall be treated as such in determining
25compliance with this Act.
26(Source: P.A. 98-531, eff. 8-23-13.)
 

 

 

09800SB3044ham001- 16 -LRB098 17651 ZMM 60019 a

1    (225 ILCS 454/10-45 new)
2    Sec. 10-45. Broker price opinions and comparative market
3analyses.
4    (a) A broker price opinion or comparative market analysis
5may be prepared or provided by a real estate broker or managing
6broker for any of the following:
7        (1) an existing or potential buyer or seller of an
8    interest in real estate;
9        (2) an existing or potential lessor or lessee of an
10    interest in real estate;
11        (3) a third party making decisions or performing due
12    diligence related to the potential listing, offering,
13    sale, option, lease, or acquisition price of an interest in
14    real estate; or
15        (4) an existing or potential lienholder or other third
16    party for any purpose other than as the primary basis to
17    determine the market value of an interest in real estate
18    for the purpose of a mortgage loan origination by a
19    financial institution secured by such real estate.
20    (b) A broker price opinion or comparative market analysis
21shall be in writing either on paper or electronically and shall
22include the following provisions:
23        (1) a statement of the intended purpose of the broker
24    price opinion or comparative market analysis;
25        (2) a brief description of the interest in real estate

 

 

09800SB3044ham001- 17 -LRB098 17651 ZMM 60019 a

1    that is the subject of the broker price opinion or
2    comparative market analysis;
3        (3) a brief description of the methodology used to
4    develop the broker price opinion or comparative market
5    analysis;
6        (4) any assumptions or limiting conditions;
7        (5) a disclosure of any existing or contemplated
8    interest of the broker or managing broker in the interest
9    in real estate that is the subject of the broker price
10    opinion or comparative market analysis;
11        (6) the name, license number, and signature of the
12    broker or managing broker that developed the broker price
13    opinion or comparative market analysis;
14        (7) a statement in substantially the following form:
15        "This is a broker price opinion/comparative market
16    analysis, not an appraisal of the market value of the real
17    estate, and was prepared by a licensed real estate broker
18    or managing broker, not by a State certified real estate
19    appraiser."; and
20        (8) such other items as the broker or managing broker
21    may deem appropriate.
 
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

 

 

09800SB3044ham001- 18 -LRB098 17651 ZMM 60019 a

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    brokers or salespersons or both for at least the 10 years
9    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. No member shall be reappointed
22to the Board for a term that would cause his or her service on
23the Board to be longer than 12 years in a lifetime. The
24membership of the Board should reasonably reflect the
25geographic distribution of the licensee population in this
26State. In making the appointments, the Governor shall give due

 

 

09800SB3044ham001- 19 -LRB098 17651 ZMM 60019 a

1consideration to the recommendations by members and
2organizations of the profession. The Governor may terminate the
3appointment of any member for cause that in the opinion of the
4Governor reasonably justifies the termination. Cause for
5termination shall include without limitation misconduct,
6incapacity, neglect of duty, or missing 4 board meetings during
7any one calendar year. Each member of the Board may receive a
8per diem stipend in an amount to be determined by the
9Secretary. Each member shall be paid his or her necessary
10expenses while engaged in the performance of his or her duties.
11Such compensation and expenses shall be paid out of the Real
12Estate License Administration Fund. The Secretary shall
13consider the recommendations of the Board on questions
14involving standards of professional conduct, discipline, and
15examination of candidates under this Act. The Department, after
16notifying and considering the recommendations of the Board, if
17any, may issue rules, consistent with the provisions of this
18Act, for the administration and enforcement thereof and may
19prescribe forms that shall be used in connection therewith.
20Five Board members shall constitute a quorum. A quorum is
21required for all Board decisions.
22(Source: P.A. 96-856, eff. 12-31-09.)
 
23    Section 10. The Real Estate Appraiser Licensing Act of 2002
24is amended by changing Sections 1-5, 1-10, 5-5, 5-10, 5-15,
255-20, 5-30, 5-35, 5-40, 5-50, 10-5, 15-10, 20-5, 20-10, 25-10,

 

 

09800SB3044ham001- 20 -LRB098 17651 ZMM 60019 a

1and 25-15 and by adding Section 5-22 as follows:
 
2    (225 ILCS 458/1-5)
3    (Section scheduled to be repealed on January 1, 2022)
4    Sec. 1-5. Legislative intent. The intent of the General
5Assembly in enacting this Act is to evaluate the competency of
6persons engaged in the appraisal of real estate in connection
7with a federally related transaction and to license and
8regulate those persons for the protection of the public.
9Additionally, it is the intent of the General Assembly for this
10Act to be consistent with the provisions of Title XI of the
11federal Financial Institutions Reform, Recovery and
12Enforcement Act of 1989.
13(Source: P.A. 92-180, eff. 7-1-02.)
 
14    (225 ILCS 458/1-10)
15    (Section scheduled to be repealed on January 1, 2022)
16    Sec. 1-10. Definitions. As used in this Act, unless the
17context otherwise requires:
18    "Accredited college or university, junior college, or
19community college" means a college or university, junior
20college, or community college that is approved or accredited by
21the Board of Higher Education, a regional or national
22accreditation association, or by an accrediting agency that is
23recognized by the U.S. Secretary of Education.
24    "Address of record" means the designated address recorded

 

 

09800SB3044ham001- 21 -LRB098 17651 ZMM 60019 a

1by the Department in the applicant's or licensee's application
2file or license file as maintained by the Department's
3licensure maintenance unit. It is the duty of the applicant or
4licensee to inform the Department of any change of address and
5those changes must be made either through the Department's
6website or by contacting the Department.
7    "Applicant" means person who applies to the Department for
8a license under this Act.
9    "Appraisal" means (noun) the act or process of developing
10an opinion of value; an opinion of value (adjective) of or
11pertaining to appraising and related functions, such as
12appraisal practice or appraisal services.
13    "Appraisal assignment" means a valuation service provided
14as a consequence of an agreement between an appraiser and a
15client.
16    "Appraisal consulting" means the act or process of
17developing an analysis, recommendation, or opinion to solve a
18problem, where an opinion of value is a component of the
19analysis leading to the assignment results.
20    "Appraisal firm" means an appraisal entity that is 100%
21owned and controlled by a person or persons licensed in
22Illinois as a certified general real estate appraiser or a
23certified residential real estate appraiser. "Appraisal firm"
24does not include an appraisal management company.
25    "Appraisal management company" means any corporation,
26limited liability company, partnership, sole proprietorship,

 

 

09800SB3044ham001- 22 -LRB098 17651 ZMM 60019 a

1subsidiary, unit, or other business entity that directly or
2indirectly performs the following appraisal management
3services: (1) administers networks of independent contractors
4or employee appraisers to perform real estate appraisal
5assignments for clients; (2) receives requests for real estate
6appraisal services from clients and, for a fee paid by the
7client, enters into an agreement with one or more independent
8appraisers to perform the real estate appraisal services
9contained in the request; or (3) otherwise serves as a
10third-party broker of appraisal management services between
11clients and appraisers. "Appraisal management company" does
12not include an appraisal firm.
13    "Appraisal practice" means valuation services performed by
14an individual acting as an appraiser, including, but not
15limited to, appraisal, appraisal review, or appraisal
16consulting.
17    "Appraisal report" means any communication, written or
18oral, of an appraisal or , appraisal review, or appraisal
19consulting service that is transmitted to a client upon
20completion of an assignment.
21    "Appraisal review" means the act or process of developing
22and communicating an opinion about the quality of another
23appraiser's work that was performed as part of an appraisal,
24appraisal review, or appraisal assignment.
25    "Appraisal Subcommittee" means the Appraisal Subcommittee
26of the Federal Financial Institutions Examination Council as

 

 

09800SB3044ham001- 23 -LRB098 17651 ZMM 60019 a

1established by Title XI.
2    "Appraiser" means a person who performs real estate or real
3property appraisals.
4    "AQB" means the Appraisal Qualifications Board of the
5Appraisal Foundation.
6    "Associate real estate trainee appraiser" means an
7entry-level appraiser who holds a license of this
8classification under this Act with restrictions as to the scope
9of practice in accordance with this Act.
10    "Board" means the Real Estate Appraisal Administration and
11Disciplinary Board.
12    "Broker price opinion" means an estimate or analysis of the
13probable selling price of a particular interest in real estate,
14which may provide a varying level of detail about the
15property's condition, market, and neighborhood and information
16on comparable sales. The activities of a real estate broker or
17managing broker engaging in the ordinary course of business as
18a broker, as defined in this Section, shall not be considered a
19broker price opinion if no compensation is paid to the broker
20or managing broker, other than compensation based upon the sale
21or rental of real estate.
22    "Classroom hour" means 50 minutes of instruction out of
23each 60 minute segment of coursework.
24    "Client" means the party or parties who engage an appraiser
25by employment or contract in a specific appraisal assignment.
26    "Comparative market analysis" is an analysis or opinion

 

 

09800SB3044ham001- 24 -LRB098 17651 ZMM 60019 a

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    "Coordinator" means the Coordinator of Real Estate
14Appraisal of the Division of Professional Regulation of the
15Department of Financial and Professional Regulation.
16    "Department" means the Department of Financial and
17Professional Regulation.
18    "Federal financial institutions regulatory agencies" means
19the Board of Governors of the Federal Reserve System, the
20Federal Deposit Insurance Corporation, the Office of the
21Comptroller of the Currency, the Consumer Financial Protection
22Bureau Office of Thrift Supervision, and the National Credit
23Union Administration.
24    "Federally related transaction" means any real
25estate-related financial transaction in which a federal
26financial institutions regulatory agency, the Department of

 

 

09800SB3044ham001- 25 -LRB098 17651 ZMM 60019 a

1Housing and Urban Development, Fannie Mae, Freddie Mae, or the
2National Credit Union Administration engages in, contracts
3for, or regulates and requires the services of an appraiser.
4    "Financial institution" means any bank, savings bank,
5savings and loan association, credit union, mortgage broker,
6mortgage banker, licensee under the Consumer Installment Loan
7Act or the Sales Finance Agency Act, or a corporate fiduciary,
8subsidiary, affiliate, parent company, or holding company of
9any such licensee, or any institution involved in real estate
10financing that is regulated by state or federal law.
11    "Modular Course" means the Appraisal Qualifying Course
12Design conforming to the Sub Topics Course Outline contained in
13the AQB Criteria 2008.
14    "Person" means an individual, entity, sole proprietorship,
15corporation, limited liability company, partnership, and joint
16venture, foreign or domestic, except that when the context
17otherwise requires, the term may refer to more than one
18individual or other described entity.
19    "Real estate" means an identified parcel or tract of land,
20including any improvements.
21    "Real estate related financial transaction" means any
22transaction involving:
23        (1) the sale, lease, purchase, investment in, or
24    exchange of real property, including interests in property
25    or the financing thereof;
26        (2) the refinancing of real property or interests in

 

 

09800SB3044ham001- 26 -LRB098 17651 ZMM 60019 a

1    real property; and
2        (3) the use of real property or interest in property as
3    security for a loan or investment, including mortgage
4    backed securities.
5    "Real property" means the interests, benefits, and rights
6inherent in the ownership of real estate.
7    "Secretary" means the Secretary of Financial and
8Professional Regulation.
9    "State certified general real estate appraiser" means an
10appraiser who holds a license of this classification under this
11Act and such classification applies to the appraisal of all
12types of real property without restrictions as to the scope of
13practice.
14    "State certified residential real estate appraiser" means
15an appraiser who holds a license of this classification under
16this Act and such classification applies to the appraisal of
17one to 4 units of residential real property without regard to
18transaction value or complexity, but with restrictions as to
19the scope of practice in a federally related transaction in
20accordance with Title XI, the provisions of USPAP, criteria
21established by the AQB, and further defined by rule.
22    "Supervising appraiser" means either (i) an appraiser who
23holds a valid license under this Act as either a State
24certified general real estate appraiser or a State certified
25residential real estate appraiser, who co-signs an appraisal
26report for an associate real estate trainee appraiser or (ii) a

 

 

09800SB3044ham001- 27 -LRB098 17651 ZMM 60019 a

1State certified general real estate appraiser who holds a valid
2license under this Act who co-signs an appraisal report for a
3State certified residential real estate appraiser on
4properties other than one to 4 units of residential real
5property without regard to transaction value or complexity.
6    "Title XI" means Title XI of the federal Financial
7Institutions Reform, Recovery and Enforcement Act of 1989.
8    "USPAP" means the Uniform Standards of Professional
9Appraisal Practice as promulgated by the Appraisal Standards
10Board pursuant to Title XI and by rule.
11    "Valuation services" means services pertaining to aspects
12of property value.
13(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
14    (225 ILCS 458/5-5)
15    (Section scheduled to be repealed on January 1, 2022)
16    Sec. 5-5. Necessity of license; use of title; exemptions.
17    (a) It is unlawful for a person to (i) act, offer services,
18or advertise services as a State certified general real estate
19appraiser, State certified residential real estate appraiser,
20or associate real estate trainee appraiser, (ii) develop a real
21estate appraisal, (iii) practice as a real estate appraiser, or
22(iv) advertise or hold himself or herself out to be a real
23estate appraiser without a license issued under this Act. A
24person who violates this subsection is guilty of a Class A
25misdemeanor for a first offense and a Class 4 felony for any

 

 

09800SB3044ham001- 28 -LRB098 17651 ZMM 60019 a

1subsequent offense.
2    (a-5) It is unlawful for a person, unless registered as an
3appraisal management company, to solicit clients or enter into
4an appraisal engagement with clients without either a certified
5residential real estate appraiser license or a certified
6general real estate appraiser license issued under this Act. A
7person who violates this subsection is guilty of a Class A
8misdemeanor for a first offense and a Class 4 felony for any
9subsequent offense.
10    (b) It is unlawful for a person, other than a person who
11holds a valid license issued pursuant to this Act as a State
12certified general real estate appraiser, a State certified
13residential real estate appraiser, or an associate real estate
14trainee appraiser to use these titles or any other title,
15designation, or abbreviation likely to create the impression
16that the person is licensed as a real estate appraiser pursuant
17to this Act. A person who violates this subsection is guilty of
18a Class A misdemeanor for a first offense and a Class 4 felony
19for any subsequent offense.
20    (c) This Act does not apply to a person who holds a valid
21license as a real estate broker or managing broker pursuant to
22the Real Estate License Act of 2000 who prepares or provides a
23broker price opinion or comparative market analysis in
24compliance with Section 10-45 of the Real Estate License Act of
252000. The licensing requirements of this Act do not require a
26person who holds a valid license pursuant to the Real Estate

 

 

09800SB3044ham001- 29 -LRB098 17651 ZMM 60019 a

1License Act of 2000, to be licensed as a real estate appraiser
2under this Act, unless that person is providing or attempting
3to provide an appraisal report, as defined in Section 1-10 of
4this Act, in connection with a federally-related transaction.
5Nothing in this Act shall prohibit a person who holds a valid
6license under the Real Estate License Act of 2000 from
7performing a comparative market analysis or broker price
8opinion for compensation, provided that the person does not
9hold himself out as being a licensed real estate appraiser.
10    (d) Nothing in this Act shall preclude a State certified
11general real estate appraiser, a State certified residential
12real estate appraiser, or an associate real estate trainee
13appraiser from rendering appraisals for or on behalf of a
14partnership, association, corporation, firm, or group.
15However, no State appraisal license or certification shall be
16issued under this Act to a partnership, association,
17corporation, firm, or group.
18    (e) This Act does not apply to a county assessor, township
19assessor, multi-township assessor, county supervisor of
20assessments, or any deputy or employee of any county assessor,
21township assessor, multi-township assessor, or county
22supervisor of assessments who is performing his or her
23respective duties in accordance with the provisions of the
24Property Tax Code.
25    (e-5) For the purposes of this Act, valuation waivers may
26be prepared by a licensed appraiser notwithstanding any other

 

 

09800SB3044ham001- 30 -LRB098 17651 ZMM 60019 a

1provision of this Act, and the following types of valuations
2are not appraisals and may not be represented to be appraisals,
3and a license is not required under this Act to perform such
4valuations if the valuations are performed by (1) an employee
5of the Illinois Department of Transportation who has completed
6a minimum of 45 hours of course work in real estate appraisal,
7including the principals of real estate appraisals, appraisal
8of partial acquisitions, easement valuation, reviewing
9appraisals in eminent domain, appraisal for federal aid highway
10programs, and appraisal review for federal aid highway programs
11and has at least 2 years' experience in a field closely related
12to real estate or (2) a county engineer who is a registered
13professional engineer under the Professional Engineering
14Practice Act of 1989, under the following circumstances:
15        (A) a valuation waiver in an amount not to exceed
16    $10,000 prepared pursuant to the federal Uniform
17    Relocation Assistance and Real Property Acquisition
18    Policies Act of 1970, or prepared pursuant to the federal
19    Uniform Relocation Assistance and Real Property
20    Acquisition for Federal and Federally-Assisted Programs
21    regulations and which is performed by an employee of the
22    Illinois Department of Transportation and co-signed, with
23    a license number affixed, by another employee of the
24    Illinois Department of Transportation who is a registered
25    professional engineer under the Professional Engineering
26    Practice Act of 1989; and

 

 

09800SB3044ham001- 31 -LRB098 17651 ZMM 60019 a

1        (B) a valuation waiver in an amount not to exceed
2    $10,000 prepared pursuant to the federal Uniform
3    Relocation Assistance and Real Property Acquisition
4    Policies Act of 1970, or prepared pursuant to the federal
5    Uniform Relocation Assistance and Real Property
6    Acquisition for Federal and Federally-Assisted Programs
7    regulations and which is performed by a county engineer who
8    is employed by a county and is a registered professional
9    engineer under the Professional Engineering Practice Act
10    of 1989. In addition to his or her signature, the county
11    engineer shall affix his or her license number to the
12    valuation.
13    Nothing in this subsection (e-5) shall be construed to
14allow the State of Illinois, a political subdivision thereof,
15or any public body to acquire real estate by eminent domain in
16any manner other than provided for in the Eminent Domain Act.
17    (f) A State real estate appraisal certification or license
18is not required under this Act for any of the following:
19        (1) A person, partnership, association, or corporation
20    that performs appraisals of property owned by that person,
21    partnership, association, or corporation for the sole use
22    of that person, partnership, association, or corporation.
23        (2) A court-appointed commissioner who conducts an
24    appraisal pursuant to a judicially ordered evaluation of
25    property.
26However, any person who is certified or licensed under this Act

 

 

09800SB3044ham001- 32 -LRB098 17651 ZMM 60019 a

1and who performs any of the activities set forth in this
2subsection (f) must comply with the provisions of this Act. A
3person who violates this subsection (f) is guilty of a Class A
4misdemeanor for a first offense and a Class 4 felony for any
5subsequent offense.
6    (g) This Act does not apply to an employee, officer,
7director, or member of a credit or loan committee of a
8financial institution or any other person engaged by a
9financial institution when performing an evaluation of real
10property for the sole use of the financial institution in a
11transaction for which the financial institution would not be
12required to use the services of a State licensed or State
13certified appraiser pursuant to federal regulations adopted
14under Title XI of the federal Financial Institutions Reform,
15Recovery, and Enforcement Act of 1989, nor does this Act apply
16to the procurement of an automated valuation model.
17    "Automated valuation model" means an automated system that
18is used to derive a property value through the use of publicly
19available property records and various analytic methodologies
20such as comparable sales prices, home characteristics, and
21historical home price appreciations.
22(Source: P.A. 97-602, eff. 8-26-11; 98-444, eff. 8-16-13.)
 
23    (225 ILCS 458/5-10)
24    (Section scheduled to be repealed on January 1, 2022)
25    Sec. 5-10. Application for State certified general real

 

 

09800SB3044ham001- 33 -LRB098 17651 ZMM 60019 a

1estate appraiser.
2    (a) Every person who desires to obtain a State certified
3general real estate appraiser license shall:
4        (1) apply to the Department on forms provided by the
5    Department accompanied by the required fee;
6        (2) be at least 18 years of age;
7        (3) (blank);
8        (4) personally take and pass an examination authorized
9    by the Department and endorsed by the AQB;
10        (5) prior to taking the examination, provide evidence
11    to the Department, in Modular Course format, with each
12    module conforming to the Required Core Curriculum Real
13    Property Appraiser Qualification Criteria established and
14    adopted by the AQB, that he or she has successfully
15    completed the prerequisite classroom hours of instruction
16    in appraising as established by the AQB and by rule; and
17        (6) prior to taking the examination, provide evidence
18    to the Department that he or she has successfully completed
19    the prerequisite experience and educational requirements
20    in appraising as established by AQB and by rule.
21    (b) Applicants must provide evidence to the Department of
22(i) holding a Bachelor's degree or higher from an accredited
23college or university. or (ii) successfully passing 30 semester
24credit hours or the equivalent from an accredited college or
25university, junior college, or community college in the
26following subjects:

 

 

09800SB3044ham001- 34 -LRB098 17651 ZMM 60019 a

1        (1) English composition;
2        (2) micro economics;
3        (3) macro economics;
4        (4) finance;
5        (5) algebra, geometry, or higher mathematics;
6        (6) statistics;
7        (7) introduction to computers-word processing and
8    spreadsheets;
9        (8) business or real estate law; and
10        (9) two elective courses in accounting, geography,
11    agricultural economics, business management, or real
12    estate.
13    If an accredited college or university accepts the
14College-Level Examination Program (CLEP) examinations and
15issues a transcript for the exam showing its approval, it will
16be considered credit for the college course for the purposes of
17meeting the requirements of this subsection (b).
18(Source: P.A. 96-844, eff. 12-23-09; 96-1000, eff. 7-2-10.)
 
19    (225 ILCS 458/5-15)
20    (Section scheduled to be repealed on January 1, 2022)
21    Sec. 5-15. Application for State certified residential
22real estate appraiser.
23    (a) Every person who desires to obtain a State certified
24residential real estate appraiser license shall:
25        (1) apply to the Department on forms provided by the

 

 

09800SB3044ham001- 35 -LRB098 17651 ZMM 60019 a

1    Department accompanied by the required fee;
2        (2) be at least 18 years of age;
3        (3) (blank);
4        (4) personally take and pass an examination authorized
5    by the Department and endorsed by the AQB;
6        (5) prior to taking the examination, provide evidence
7    to the Department, in Modular Course format, with each
8    module conforming to the Required Core Curriculum Real
9    Property Appraiser Qualification Criteria established and
10    adopted by the AQB, that he or she has successfully
11    completed the prerequisite classroom hours of instruction
12    in appraising as established by the AQB and by rule; and
13        (6) prior to taking the examination, provide evidence
14    to the Department that he or she has successfully completed
15    the prerequisite experience and educational requirements
16    as established by AQB and by rule.
17    (b) Applicants must provide evidence to the Department of
18(i) holding an Associate's degree or its equivalent from an
19accredited college or university, junior college, or community
20college or (ii) successfully passing 21 semester credit hours
21or the equivalent from an accredited college or university,
22junior college, or community college in the following subjects:
23        (1) English composition;
24        (2) principals of economics (micro or macro);
25        (3) finance;
26        (4) algebra, geometry, or higher mathematics;

 

 

09800SB3044ham001- 36 -LRB098 17651 ZMM 60019 a

1        (5) statistics;
2        (6) introduction to computers-word processing and
3    spreadsheets; and
4        (7) business or real estate law.
5    If an accredited college or university accepts the
6College-Level Examination Program (CLEP) examinations and
7issues a transcript for the exam showing its approval, it will
8be considered credit for the college course for the purposes of
9the requirements of this subsection (b).
10(Source: P.A. 96-844, eff. 12-23-09.)
 
11    (225 ILCS 458/5-20)
12    (Section scheduled to be repealed on January 1, 2022)
13    Sec. 5-20. Application for associate real estate trainee
14appraiser. Every person who desires to obtain an associate real
15estate trainee appraiser license shall:
16        (1) apply to the Department on forms provided by the
17    Department accompanied by the required fee;
18        (2) be at least 18 years of age;
19        (3) provide evidence of having attained a high school
20    diploma or completed an equivalent course of study as
21    determined by an examination conducted or accepted by the
22    Illinois State Board of Education;
23        (4) personally take and pass an examination authorized
24    by the Department; and
25        (5) prior to taking the examination, provide evidence

 

 

09800SB3044ham001- 37 -LRB098 17651 ZMM 60019 a

1    to the Department that he or she has successfully completed
2    the prerequisite qualifying and any conditional education
3    requirements classroom hours of instruction in appraising
4    as established by rule.
5(Source: P.A. 96-844, eff. 12-23-09.)
 
6    (225 ILCS 458/5-22 new)
7    Sec. 5-22. Criminal history records check. Each applicant
8for licensure by examination or restoration shall have his or
9her fingerprints submitted to the Department of State Police in
10an electronic format that complies with the form and manner for
11requesting and furnishing criminal history record information
12as prescribed by the Department of State Police. These
13fingerprints shall be checked against the Department of State
14Police and Federal Bureau of Investigation criminal history
15record databases now and hereafter filed. The Department of
16State Police shall charge applicants a fee for conducting the
17criminal history records check, which shall be deposited into
18the State Police Services Fund and shall not exceed the actual
19cost of the records check. The Department of State Police shall
20furnish, pursuant to positive identification, records of
21Illinois convictions to the Department. The Department may
22require applicants to pay a separate fingerprinting fee, either
23to the Department or to a vendor. The Department may adopt any
24rules necessary to implement this Section.
 

 

 

09800SB3044ham001- 38 -LRB098 17651 ZMM 60019 a

1    (225 ILCS 458/5-30)
2    (Section scheduled to be repealed on January 1, 2022)
3    Sec. 5-30. Endorsement. The Department may issue an
4appraiser license, without the required examination, to an
5applicant licensed by another state, territory, possession of
6the United States, or the District of Columbia, if (i) the
7licensing requirements of that licensing authority are, on the
8date of licensure, substantially equal to the requirements set
9forth under this Act or to a person who, at the time of his or
10her application, possessed individual qualifications that were
11substantially equivalent to the requirements of this Act or
12(ii) the applicant provides the Department with evidence of
13good standing from the Appraisal Subcommittee National
14Registry report and a criminal history records check in
15accordance with Section 5-22. An applicant under this Section
16shall pay all of the required fees.
17(Source: P.A. 96-844, eff. 12-23-09.)
 
18    (225 ILCS 458/5-35)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 5-35. Qualifying Pre-license education requirements.
21    (a) The prerequisite classroom hours necessary for a person
22to be approved to sit for the examination for licensure as a
23State certified general real estate appraiser or a State
24certified residential real estate appraiser shall be in
25accordance with AQB criteria and established by rule.

 

 

09800SB3044ham001- 39 -LRB098 17651 ZMM 60019 a

1    (b) The prerequisite classroom hours necessary for a person
2to sit for the examination for licensure as an associate real
3estate trainee appraiser shall be established by rule.
4(Source: P.A. 96-844, eff. 12-23-09.)
 
5    (225 ILCS 458/5-40)
6    (Section scheduled to be repealed on January 1, 2022)
7    Sec. 5-40. Qualifying Pre-license experience requirements.
8The prerequisite experience necessary for a person to be
9approved to sit for the examination for licensure as a State
10certified general real estate appraiser or a State certified
11residential real estate appraiser shall be established by rule.
12(Source: P.A. 96-844, eff. 12-23-09.)
 
13    (225 ILCS 458/5-50)
14    (Section scheduled to be repealed on January 1, 2022)
15    Sec. 5-50. Temporary practice permits. A nonresident
16appraiser who holds a valid appraiser license in another state,
17territory, possession of the United States, or the District of
18Columbia may be granted a temporary practice permit to practice
19as an appraiser in the State of Illinois upon making an
20application and paying the applicable fees pursuant to
21Appraisal Subcommittee policy statements and as established by
22rule.
23(Source: P.A. 92-180, eff. 7-1-02.)
 

 

 

09800SB3044ham001- 40 -LRB098 17651 ZMM 60019 a

1    (225 ILCS 458/10-5)
2    (Section scheduled to be repealed on January 1, 2022)
3    Sec. 10-5. Scope of practice.
4    (a) This Act does not limit a State certified general real
5estate appraiser in his or her scope of practice in a federally
6related transaction. A certified general real estate appraiser
7may independently provide appraisal services, review, or
8consulting relating to any type of property for which he or she
9has experience or is competent. All such appraisal practice
10must be made in accordance with the provisions of USPAP,
11criteria established by the AQB, and rules adopted pursuant to
12this Act.
13    (b) A State certified residential real estate appraiser is
14limited in his or her scope of practice to the provisions of
15USPAP, criteria established by the AQB, and the rules adopted
16pursuant to this Act.
17    (c) A State certified residential real estate appraiser
18must have a State certified general real estate appraiser who
19holds a valid license under this Act co-sign all appraisal
20reports on properties other than one to 4 units of residential
21real property without regard to transaction value or
22complexity.
23    (d) An associate real estate trainee appraiser is limited
24in his or her scope of practice in all transactions in
25accordance with the provisions of USPAP, this Act, and the
26rules adopted pursuant to this Act. In addition, an associate

 

 

09800SB3044ham001- 41 -LRB098 17651 ZMM 60019 a

1real estate trainee appraiser shall be required to have a State
2certified general real estate appraiser or State certified
3residential real estate appraiser who holds a valid license
4under this Act to co-sign all appraisal reports. A The
5associate real estate trainee appraiser licensee may not have
6more than 3 supervising appraisers, and a supervising appraiser
7may not supervise more than 3 associate real estate trainee
8appraisers at one time. Associate real estate trainee
9appraisers shall not be limited in the number of concurrent
10supervising appraisers. A chronological appraisal log on an
11approved log form shall be maintained by the associate real
12estate trainee appraiser and shall be made available to the
13Department upon request.
14(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
15    (225 ILCS 458/15-10)
16    (Section scheduled to be repealed on January 1, 2022)
17    Sec. 15-10. Grounds for disciplinary action.
18    (a) The Department may suspend, revoke, refuse to issue,
19renew, or restore a license and may reprimand place on
20probation or administrative supervision, or take any
21disciplinary or non-disciplinary action, including imposing
22conditions limiting the scope, nature, or extent of the real
23estate appraisal practice of a licensee or reducing the
24appraisal rank of a licensee, and may impose an administrative
25fine not to exceed $25,000 for each violation upon a licensee

 

 

09800SB3044ham001- 42 -LRB098 17651 ZMM 60019 a

1for any one or combination of the following:
2        (1) Procuring or attempting to procure a license by
3    knowingly making a false statement, submitting false
4    information, engaging in any form of fraud or
5    misrepresentation, or refusing to provide complete
6    information in response to a question in an application for
7    licensure.
8        (2) Failing to meet the minimum qualifications for
9    licensure as an appraiser established by this Act.
10        (3) Paying money, other than for the fees provided for
11    by this Act, or anything of value to a member or employee
12    of the Board or the Department to procure licensure under
13    this Act.
14        (4) Conviction by plea of guilty or nolo contendere,
15    finding of guilt, jury verdict, or entry of judgment or by
16    sentencing of any crime, including, but not limited to,
17    convictions, preceding sentences of supervision,
18    conditional discharge, or first offender probation, under
19    the laws of any jurisdiction of the United States: (i) that
20    is a felony; or (ii) that is a misdemeanor, an essential
21    element of which is dishonesty, or that is directly related
22    to the practice of the profession.
23        (5) Committing an act or omission involving
24    dishonesty, fraud, or misrepresentation with the intent to
25    substantially benefit the licensee or another person or
26    with intent to substantially injure another person as

 

 

09800SB3044ham001- 43 -LRB098 17651 ZMM 60019 a

1    defined by rule.
2        (6) Violating a provision or standard for the
3    development or communication of real estate appraisals as
4    provided in Section 10-10 of this Act or as defined by
5    rule.
6        (7) Failing or refusing without good cause to exercise
7    reasonable diligence in developing, reporting, or
8    communicating an appraisal, as defined by this Act or by
9    rule.
10        (8) Violating a provision of this Act or the rules
11    adopted pursuant to this Act.
12        (9) Having been disciplined by another state, the
13    District of Columbia, a territory, a foreign nation, a
14    governmental agency, or any other entity authorized to
15    impose discipline if at least one of the grounds for that
16    discipline is the same as or the equivalent of one of the
17    grounds for which a licensee may be disciplined under this
18    Act.
19        (10) Engaging in dishonorable, unethical, or
20    unprofessional conduct of a character likely to deceive,
21    defraud, or harm the public.
22        (11) Accepting an appraisal assignment when the
23    employment itself is contingent upon the appraiser
24    reporting a predetermined estimate, analysis, or opinion
25    or when the fee to be paid is contingent upon the opinion,
26    conclusion, or valuation reached or upon the consequences

 

 

09800SB3044ham001- 44 -LRB098 17651 ZMM 60019 a

1    resulting from the appraisal assignment.
2        (12) Developing valuation conclusions based on the
3    race, color, religion, sex, national origin, ancestry,
4    age, marital status, family status, physical or mental
5    disability, or unfavorable military discharge, as defined
6    under the Illinois Human Rights Act, of the prospective or
7    present owners or occupants of the area or property under
8    appraisal.
9        (13) Violating the confidential nature of government
10    records to which the licensee gained access through
11    employment or engagement as an appraiser by a government
12    agency.
13        (14) Being adjudicated liable in a civil proceeding on
14    grounds of fraud, misrepresentation, or deceit. In a
15    disciplinary proceeding based upon a finding of civil
16    liability, the appraiser shall be afforded an opportunity
17    to present mitigating and extenuating circumstances, but
18    may not collaterally attack the civil adjudication.
19        (15) Being adjudicated liable in a civil proceeding for
20    violation of a state or federal fair housing law.
21        (16) Engaging in misleading or untruthful advertising
22    or using a trade name or insignia of membership in a real
23    estate appraisal or real estate organization of which the
24    licensee is not a member.
25        (17) Failing to fully cooperate with a Department
26    investigation by knowingly making a false statement,

 

 

09800SB3044ham001- 45 -LRB098 17651 ZMM 60019 a

1    submitting false or misleading information, or refusing to
2    provide complete information in response to written
3    interrogatories or a written request for documentation
4    within 30 days of the request.
5        (18) Failing to include within the certificate of
6    appraisal for all written appraisal reports the
7    appraiser's license number and licensure title. All
8    appraisers providing significant contribution to the
9    development and reporting of an appraisal must be disclosed
10    in the appraisal report. It is a violation of this Act for
11    an appraiser to sign a report, transmittal letter, or
12    appraisal certification knowing that a person providing a
13    significant contribution to the report has not been
14    disclosed in the appraisal report.
15        (19) Violating the terms of a disciplinary order or
16    consent to administrative supervision order.
17        (20) Habitual or excessive use or addiction to alcohol,
18    narcotics, stimulants, or any other chemical agent or drug
19    that results in a licensee's inability to practice with
20    reasonable judgment, skill, or safety.
21        (21) A physical or mental illness or disability which
22    results in the inability to practice under this Act with
23    reasonable judgment, skill, or safety.
24        (22) Gross negligence in developing an appraisal or in
25    communicating an appraisal or failing to observe one or
26    more of the Uniform Standards of Professional Appraisal

 

 

09800SB3044ham001- 46 -LRB098 17651 ZMM 60019 a

1    Practice.
2        (23) A pattern of practice or other behavior that
3    demonstrates incapacity or incompetence to practice under
4    this Act.
5        (24) Using or attempting to use the seal, certificate,
6    or license of another as his or her own; falsely
7    impersonating any duly licensed appraiser; using or
8    attempting to use an inactive, expired, suspended, or
9    revoked license; or aiding or abetting any of the
10    foregoing.
11        (25) Solicitation of professional services by using
12    false, misleading, or deceptive advertising.
13        (26) Making a material misstatement in furnishing
14    information to the Department.
15        (27) Failure to furnish information to the Department
16    upon written request.
17    (b) The Department may reprimand suspend, revoke, or refuse
18to issue or renew an education provider's license, may
19reprimand, place on probation, or otherwise discipline an
20education provider and may suspend or revoke the course
21approval of any course offered by an education provider and may
22impose an administrative fine not to exceed $25,000 upon an
23education provider, for any of the following:
24        (1) Procuring or attempting to procure licensure by
25    knowingly making a false statement, submitting false
26    information, engaging in any form of fraud or

 

 

09800SB3044ham001- 47 -LRB098 17651 ZMM 60019 a

1    misrepresentation, or refusing to provide complete
2    information in response to a question in an application for
3    licensure.
4        (2) Failing to comply with the covenants certified to
5    on the application for licensure as an education provider.
6        (3) Committing an act or omission involving
7    dishonesty, fraud, or misrepresentation or allowing any
8    such act or omission by any employee or contractor under
9    the control of the provider.
10        (4) Engaging in misleading or untruthful advertising.
11        (5) Failing to retain competent instructors in
12    accordance with rules adopted under this Act.
13        (6) Failing to meet the topic or time requirements for
14    course approval as the provider of a qualifying pre-license
15    curriculum course or a continuing education course.
16        (7) Failing to administer an approved course using the
17    course materials, syllabus, and examinations submitted as
18    the basis of the course approval.
19        (8) Failing to provide an appropriate classroom
20    environment for presentation of courses, with
21    consideration for student comfort, acoustics, lighting,
22    seating, workspace, and visual aid material.
23        (9) Failing to maintain student records in compliance
24    with the rules adopted under this Act.
25        (10) Failing to provide a certificate, transcript, or
26    other student record to the Department or to a student as

 

 

09800SB3044ham001- 48 -LRB098 17651 ZMM 60019 a

1    may be required by rule.
2        (11) Failing to fully cooperate with an investigation
3    by the Department by knowingly making a false statement,
4    submitting false or misleading information, or refusing to
5    provide complete information in response to written
6    interrogatories or a written request for documentation
7    within 30 days of the request.
8    (c) In appropriate cases, the Department may resolve a
9complaint against a licensee through the issuance of a Consent
10to Administrative Supervision order. A licensee subject to a
11Consent to Administrative Supervision order shall be
12considered by the Department as an active licensee in good
13standing. This order shall not be reported or considered by the
14Department to be a discipline of the licensee. The records
15regarding an investigation and a Consent to Administrative
16Supervision order shall be considered confidential and shall
17not be released by the Department except as mandated by law. A
18complainant shall be notified if his or her complaint has been
19resolved by a Consent to Administrative Supervision order.
20(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11;
2197-877, eff. 8-2-12.)
 
22    (225 ILCS 458/20-5)
23    (Section scheduled to be repealed on January 1, 2022)
24    Sec. 20-5. Education providers.
25    (a) Beginning July 1, 2002, only education providers

 

 

09800SB3044ham001- 49 -LRB098 17651 ZMM 60019 a

1licensed or otherwise approved by the Department may provide
2the qualifying pre-license and continuing education courses
3required for licensure under this Act.
4    (b) A person or entity seeking to be licensed as an
5education provider under this Act shall provide satisfactory
6evidence of the following:
7        (1) a sound financial base for establishing,
8    promoting, and delivering the necessary courses;
9        (2) a sufficient number of qualified instructors;
10        (3) adequate support personnel to assist with
11    administrative matters and technical assistance;
12        (4) a written policy dealing with procedures for
13    management of grievances and fee refunds;
14        (5) a qualified administrator, who is responsible for
15    the administration of the education provider, courses, and
16    the actions of the instructors; and
17        (6) any other requirements as provided by rule.
18    (c) All applicants for an education provider's license
19shall make initial application to the Department on forms
20provided by the Department and pay the appropriate fee as
21provided by rule. The term, expiration date, and renewal of an
22education provider's license shall be established by rule.
23    (d) An education provider shall provide each successful
24course participant with a certificate of completion signed by
25the school administrator. The format and content of the
26certificate shall be specified by rule.

 

 

09800SB3044ham001- 50 -LRB098 17651 ZMM 60019 a

1    (e) All education providers shall provide to the Department
2a monthly roster of all successful course participants as
3provided by rule.
4(Source: P.A. 96-844, eff. 12-23-09.)
 
5    (225 ILCS 458/20-10)
6    (Section scheduled to be repealed on January 1, 2022)
7    Sec. 20-10. Course approval.
8    (a) Only courses offered by licensed education providers
9and approved by the Department, courses approved by the AQB, or
10courses approved by jurisdictions regulated by the Appraisal
11Subcommittee shall be used to meet the requirements of this Act
12and rules.
13    (b) An education provider licensed under this Act may
14submit courses to the Department for approval. The criteria,
15requirements, and fees for courses shall be established by rule
16in accordance with this Act, Title XI, and the criteria
17established by the AQB.
18    (c) For each course approved, the Department shall issue a
19license to the education provider. The term, expiration date,
20and renewal of a course approval shall be established by rule.
21    (d) An education provider must use an instructor for each
22course approved by the Department who (i) holds a valid real
23estate appraisal license in good standing as a State certified
24general real estate appraiser or a State certified residential
25real estate appraiser in Illinois or any other jurisdiction

 

 

09800SB3044ham001- 51 -LRB098 17651 ZMM 60019 a

1monitored regulated by the Appraisal Subcommittee, (ii) holds a
2valid teaching certificate issued by the State of Illinois,
3(iii) is a faculty member in good standing with an accredited
4college or university or community college, or (iv) is an
5approved appraisal instructor from an appraisal organization
6that is a member of the Appraisal Foundation.
7(Source: P.A. 96-844, eff. 12-23-09.)
 
8    (225 ILCS 458/25-10)
9    (Section scheduled to be repealed on January 1, 2022)
10    Sec. 25-10. Real Estate Appraisal Administration and
11Disciplinary Board; appointment.
12    (a) There is hereby created the Real Estate Appraisal
13Administration and Disciplinary Board. The Board shall be
14composed of 10 persons appointed by the Governor, plus the
15Coordinator of the Real Estate Appraisal Division. Members
16shall be appointed to the Board subject to the following
17conditions:
18        (1) All appointed members shall have been residents and
19    citizens of this State for at least 5 years prior to the
20    date of appointment.
21        (2) The appointed membership of the Board should
22    reasonably reflect the geographic distribution of the
23    population of the State.
24        (3) Four appointed members shall have been actively
25    engaged and currently licensed as State certified general

 

 

09800SB3044ham001- 52 -LRB098 17651 ZMM 60019 a

1    real estate appraisers for a period of not less than 5
2    years.
3        (4) Two appointed members shall have been actively
4    engaged and currently licensed as State certified
5    residential real estate appraisers for a period of not less
6    than 5 years.
7        (5) Two appointed members shall hold a valid license as
8    a real estate broker for at least 10 years prior to the
9    date of the appointment, one of whom shall hold a valid
10    State certified general real estate appraiser license
11    issued under this Act or a predecessor Act for a period of
12    at least 5 years prior to the appointment and one of whom
13    shall hold a valid State certified residential real estate
14    appraiser license issued under this Act or a predecessor
15    Act for a period of at least 5 years prior to the
16    appointment.
17        (6) One appointed member shall be a representative of a
18    financial institution, as evidenced by his or her
19    employment with a financial institution.
20        (7) One appointed member shall represent the interests
21    of the general public. This member or his or her spouse
22    shall not be licensed under this Act nor be employed by or
23    have any interest in an appraisal business, appraisal
24    management company, real estate brokerage business, or a
25    financial institution.
26    In making appointments as provided in paragraphs (3) and

 

 

09800SB3044ham001- 53 -LRB098 17651 ZMM 60019 a

1(4) of this subsection, the Governor shall give due
2consideration to recommendations by members and organizations
3representing the profession.
4    In making the appointments as provided in paragraph (5) of
5this subsection, the Governor shall give due consideration to
6the recommendations by members and organizations representing
7the real estate industry.
8    In making the appointment as provided in paragraph (6) of
9this subsection, the Governor shall give due consideration to
10the recommendations by members and organizations representing
11financial institutions.
12    (b) The term for members of the Board shall be 4 years, and
13each member shall serve until his or her successor is appointed
14and qualified. No member shall serve more than 10 years in a
15lifetime.
16    (c) The Governor may terminate the appointment of a member
17for cause that, in the opinion of the Governor, reasonably
18justifies the termination. Cause for termination may include,
19without limitation, misconduct, incapacity, neglect of duty,
20or missing 4 Board meetings during any one calendar year.
21    (d) A majority of the Board members shall constitute a
22quorum. A vacancy in the membership of the Board shall not
23impair the right of a quorum to exercise all of the rights and
24perform all of the duties of the Board.
25    (e) The Board shall meet at least quarterly and may be
26convened by the Chairperson, Vice-Chairperson, or 3 members of

 

 

09800SB3044ham001- 54 -LRB098 17651 ZMM 60019 a

1the Board upon 10 days written notice.
2    (f) The Board shall, annually at the first meeting of the
3fiscal year, elect a Chairperson and Vice-Chairperson from its
4members. The Chairperson shall preside over the meetings and
5shall coordinate with the Coordinator in developing and
6distributing an agenda for each meeting. In the absence of the
7Chairperson, the Vice-Chairperson shall preside over the
8meeting.
9    (g) The Coordinator of the Real Estate Appraisal Division
10shall serve as a member of the Board without vote.
11    (h) The Board shall advise and make recommendations to the
12Department on the education and experience qualifications of
13any applicant for initial licensure as a State certified
14general real estate appraiser or a State certified residential
15real estate appraiser. The Department shall not make any
16decisions concerning education or experience qualifications of
17an applicant for initial licensure as a State certified general
18real estate appraiser or a State certified residential real
19estate appraiser without having first received the advice and
20recommendation of the Board and shall give due consideration to
21all such advice and recommendations; however, if the Board does
22not render advice or make a recommendation within a reasonable
23amount of time, then the Department may render a decision.
24    (i) Except as provided in Section 15-17 of this Act, the
25Board shall hear and make recommendations to the Secretary on
26disciplinary matters that require a formal evidentiary

 

 

09800SB3044ham001- 55 -LRB098 17651 ZMM 60019 a

1hearing. The Secretary shall give due consideration to the
2recommendations of the Board involving discipline and
3questions involving standards of professional conduct of
4licensees.
5    (j) The Department shall seek and the Board shall provide
6recommendations to the Department consistent with the
7provisions of this Act and for the administration and
8enforcement of all rules adopted pursuant to this Act. The
9Department shall give due consideration to such
10recommendations prior to adopting rules.
11    (k) The Department shall seek and the Board shall provide
12recommendations to the Department on the approval of all
13courses submitted to the Department pursuant to this Act and
14the rules adopted pursuant to this Act. The Department shall
15not approve any courses without having first received the
16recommendation of the Board and shall give due consideration to
17such recommendations prior to approving and licensing courses;
18however, if the Board does not make a recommendation within a
19reasonable amount of time, then the Department may approve
20courses.
21    (l) Each voting member of the Board shall receive a per
22diem stipend in an amount to be determined by the Secretary.
23Each member shall be paid his or her necessary expenses while
24engaged in the performance of his or her duties.
25    (m) Members of the Board shall be immune from suit in an
26action based upon any disciplinary proceedings or other acts

 

 

09800SB3044ham001- 56 -LRB098 17651 ZMM 60019 a

1performed in good faith as members of the Board.
2    (n) If the Department disagrees with any advice or
3recommendation provided by the Board under this Section to the
4Secretary or the Department, then notice of such disagreement
5must be provided to the Board by the Department.
6    (o) Upon resolution adopted at any Board meeting, the
7exercise of any Board function, power, or duty enumerated in
8this Section or in subsection (d) of Section 15-10 of this Act
9may be suspended. The exercise of any suspended function,
10power, or duty of the Board may be reinstated by a resolution
11adopted at a subsequent Board meeting. Any resolution adopted
12pursuant to this Section shall take effect immediately.
13(Source: P.A. 96-844, eff. 12-23-09.)
 
14    (225 ILCS 458/25-15)
15    (Section scheduled to be repealed on January 1, 2022)
16    Sec. 25-15. Coordinator of Real Estate Appraisal;
17appointment; duties. The Secretary shall appoint, subject to
18the Personnel Code, a Coordinator of Real Estate Appraisal. In
19appointing the Coordinator, the Secretary shall give due
20consideration to recommendations made by members,
21organizations, and associations of the real estate appraisal
22industry. On or after January 1, 2010, the Coordinator must
23hold a current, valid State certified general real estate
24appraiser license. The Coordinator shall not practice or a
25State certified residential real estate appraiser license,

 

 

09800SB3044ham001- 57 -LRB098 17651 ZMM 60019 a

1which shall be surrendered to the Department during the term of
2his or her appointment. The Coordinator must take the 30-hour
3National Instructors Course on Uniform Standards of
4Professional Appraisal Practice. The Coordinator Coordinator's
5license shall be returned in the same status as it was on the
6date of surrender, credited with all fees that came due during
7his or her employment. The Coordinator shall:
8        (1) serve as a member of the Real Estate Appraisal
9    Administration and Disciplinary Board without vote;
10        (2) be the direct liaison between the Department, the
11    profession, and the real estate appraisal industry
12    organizations and associations;
13        (3) prepare and circulate to licensees such
14    educational and informational material as the Department
15    deems necessary for providing guidance or assistance to
16    licensees;
17        (4) appoint necessary committees to assist in the
18    performance of the functions and duties of the Department
19    under this Act;
20        (5) (blank); and
21        (6) be authorized to investigate and determine the
22    facts of a complaint; the coordinator may interview
23    witnesses, the complainant, and any licensees involved in
24    the alleged matter and make a recommendation as to the
25    findings of fact.
26(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)".