SB3044enr 98TH GENERAL ASSEMBLY

  
  
  

 


 
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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, 5-27, 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8    (Section scheduled to be repealed on January 1, 2020)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
17those changes must be made either through the Department's
18website or by contacting the Department.
19    "Advisory Council" means the Real Estate Education
20Advisory Council created under Section 30-10 of this Act.
21    "Agency" means a relationship in which a real estate broker
22or licensee, whether directly or through an affiliated
23licensee, represents a consumer by the consumer's consent,

 

 

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1whether express or implied, in a real property transaction.
2    "Applicant" means any person, as defined in this Section,
3who applies to the Department for a valid license as a real
4estate broker, real estate salesperson, or leasing agent.
5    "Blind advertisement" means any real estate advertisement
6that does not include the sponsoring broker's business name and
7that is used by any licensee regarding the sale or lease of
8real estate, including his or her own, licensed activities, or
9the hiring of any licensee under this Act. The broker's
10business name in the case of a franchise shall include the
11franchise affiliation as well as the name of the individual
12firm.
13    "Board" means the Real Estate Administration and
14Disciplinary Board of the Department as created by Section
1525-10 of this Act.
16    "Branch office" means a sponsoring broker's office other
17than the sponsoring broker's principal office.
18    "Broker" means an individual, partnership, limited
19liability company, corporation, or registered limited
20liability partnership other than a real estate salesperson or
21leasing agent who, whether in person or through any media or
22technology, for another and for compensation, or with the
23intention or expectation of receiving compensation, either
24directly or indirectly:
25        (1) Sells, exchanges, purchases, rents, or leases real
26    estate.

 

 

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

 

 

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

 

 

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

 

 

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1    statute;
2        (12) retainer fee; or
3        (13) salary.
4    "Confidential information" means information obtained by a
5licensee from a client during the term of a brokerage agreement
6that (i) was made confidential by the written request or
7written instruction of the client, (ii) deals with the
8negotiating position of the client, or (iii) is information the
9disclosure of which could materially harm the negotiating
10position of the client, unless at any time:
11        (1) the client permits the disclosure of information
12    given by that client by word or conduct;
13        (2) the disclosure is required by law; or
14        (3) the information becomes public from a source other
15    than the licensee.
16    "Confidential information" shall not be considered to
17include material information about the physical condition of
18the property.
19    "Consumer" means a person or entity seeking or receiving
20licensed activities.
21    "Continuing education school" means any person licensed by
22the Department as a school for continuing education in
23accordance with Section 30-15 of this Act.
24    "Coordinator" means the Coordinator of Real Estate created
25in Section 25-15 of this Act.
26    "Credit hour" means 50 minutes of classroom instruction in

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1an instructor, who has a written agreement to administer
2examinations fairly and impartially with a licensed
3pre-license school or a licensed continuing education school.
4    "Real estate" means and includes leaseholds as well as any
5other interest or estate in land, whether corporeal,
6incorporeal, freehold, or non-freehold, including timeshare
7interests, and whether the real estate is situated in this
8State or elsewhere.
9    "Regular employee" means a person working an average of 20
10hours per week for a person or entity who would be considered
11as an employee under the Internal Revenue Service eleven main
12tests in three categories being behavioral control, financial
13control and the type of relationship of the parties, formerly
14the twenty factor test.
15    "Salesperson" means any individual, other than a real
16estate broker or leasing agent, who is employed by a real
17estate broker or is associated by written agreement with a real
18estate broker as an independent contractor and participates in
19any activity described in the definition of "broker" under this
20Section.
21    "Secretary" means the Secretary of the Department of
22Financial and Professional Regulation, or a person authorized
23by the Secretary to act in the Secretary's stead.
24    "Sponsoring broker" means the broker who has issued a
25sponsor card to a licensed salesperson, another licensed
26broker, or a leasing agent.

 

 

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

 

 

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1    State Board of Education which shall be verified under oath
2    by the applicant;
3        (4) Prior to May 1, 2011, provide (i) satisfactory
4    evidence of having completed at least 120 classroom hours,
5    45 of which shall be those hours required to obtain a
6    salesperson's license plus 15 hours in brokerage
7    administration courses, in real estate courses approved by
8    the Advisory Council or (ii) for applicants who currently
9    hold a valid real estate salesperson's license, give
10    satisfactory evidence of having completed at least 75 hours
11    in real estate courses, not including the courses that are
12    required to obtain a salesperson's license, approved by the
13    Advisory Council;
14        (5) After April 30, 2011, provide satisfactory
15    evidence of having completed 90 hours of instruction in
16    real estate courses approved by the Advisory Council, 15
17    hours of which must consist of situational and case studies
18    presented in the classroom or by other interactive delivery
19    method presenting instruction and real time discussion
20    between the instructor and the students;
21        (6) Personally take and pass a written examination
22    authorized by the Department;
23        (7) Present a valid application for issuance of a
24    license accompanied by a sponsor card and the fees
25    specified by rule.
26    (b) The requirements specified in items (4) and (5) of

 

 

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1subsection (a) of this Section do not apply to applicants who
2are currently admitted to practice law by the Supreme Court of
3Illinois and are currently in active standing.
4    (c) No applicant shall engage in any of the activities
5covered by this Act until a valid sponsor card has been issued
6to such applicant. The sponsor card shall be valid for a
7maximum period of 45 days after the date of issuance unless
8extended for good cause as provided by rule.
9    (d) All licenses should be readily available to the public
10at their place of business.
11    (e) An individual holding an active license as a managing
12broker may return the license to the Department along with a
13form provided by the Department and shall be issued a broker's
14license in exchange. Any individual obtaining a broker's
15license under this subsection (e) shall be considered as having
16obtained a broker's license by education and passing the
17required test and shall be treated as such in determining
18compliance with this Act.
19(Source: P.A. 98-531, eff. 8-23-13.)
 
20    (225 ILCS 454/10-45 new)
21    Sec. 10-45. Broker price opinions and comparative market
22analyses.
23    (a) A broker price opinion or comparative market analysis
24may be prepared or provided by a real estate broker or managing
25broker for any of the following:

 

 

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1        (1) an existing or potential buyer or seller of an
2    interest in real estate;
3        (2) an existing or potential lessor or lessee of an
4    interest in real estate;
5        (3) a third party making decisions or performing due
6    diligence related to the potential listing, offering,
7    sale, option, lease, or acquisition price of an interest in
8    real estate; or
9        (4) an existing or potential lienholder or other third
10    party for any purpose other than as the primary basis to
11    determine the market value of an interest in real estate
12    for the purpose of a mortgage loan origination by a
13    financial institution secured by such real estate.
14    (b) A broker price opinion or comparative market analysis
15shall be in writing either on paper or electronically and shall
16include the following provisions:
17        (1) a statement of the intended purpose of the broker
18    price opinion or comparative market analysis;
19        (2) a brief description of the interest in real estate
20    that is the subject of the broker price opinion or
21    comparative market analysis;
22        (3) a brief description of the methodology used to
23    develop the broker price opinion or comparative market
24    analysis;
25        (4) any assumptions or limiting conditions;
26        (5) a disclosure of any existing or contemplated

 

 

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1    interest of the broker or managing broker in the interest
2    in real estate that is the subject of the broker price
3    opinion or comparative market analysis;
4        (6) the name, license number, and signature of the
5    broker or managing broker that developed the broker price
6    opinion or comparative market analysis;
7        (7) a statement in substantially the following form:
8        "This is a broker price opinion/comparative market
9    analysis, not an appraisal of the market value of the real
10    estate, and was prepared by a licensed real estate broker
11    or managing broker, not by a State certified real estate
12    appraiser."; and
13        (8) such other items as the broker or managing broker
14    may deem appropriate.
 
15    (225 ILCS 454/25-10)
16    (Section scheduled to be repealed on January 1, 2020)
17    Sec. 25-10. Real Estate Administration and Disciplinary
18Board; duties. There is created the Real Estate Administration
19and Disciplinary Board. The Board shall be composed of 9
20persons appointed by the Governor. Members shall be appointed
21to the Board subject to the following conditions:
22        (1) All members shall have been residents and citizens
23    of this State for at least 6 years prior to the date of
24    appointment.
25        (2) Six members shall have been actively engaged as

 

 

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1    brokers or salespersons or both for at least the 10 years
2    prior to the appointment.
3        (3) Three members of the Board shall be public members
4    who represent consumer interests.
5    None of these members shall be (i) a person who is licensed
6under this Act or a similar Act of another jurisdiction, (ii)
7the spouse or family member of a licensee, (iii) a person who
8has an ownership interest in a real estate brokerage business,
9or (iv) a person the Department determines to have any other
10connection with a real estate brokerage business or a licensee.
11The members' terms shall be 4 years or until their successor is
12appointed, and the expiration of their terms shall be
13staggered. Appointments to fill vacancies shall be for the
14unexpired portion of the term. No member shall be reappointed
15to the Board for a term that would cause his or her service on
16the Board to be longer than 12 years in a lifetime. The
17membership of the Board should reasonably reflect the
18geographic distribution of the licensee population in this
19State. In making the appointments, the Governor shall give due
20consideration to the recommendations by members and
21organizations of the profession. The Governor may terminate the
22appointment of any member for cause that in the opinion of the
23Governor reasonably justifies the termination. Cause for
24termination shall include without limitation misconduct,
25incapacity, neglect of duty, or missing 4 board meetings during
26any one calendar year. Each member of the Board may receive a

 

 

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1per diem stipend in an amount to be determined by the
2Secretary. Each member shall be paid his or her necessary
3expenses while engaged in the performance of his or her duties.
4Such compensation and expenses shall be paid out of the Real
5Estate License Administration Fund. The Secretary shall
6consider the recommendations of the Board on questions
7involving standards of professional conduct, discipline, and
8examination of candidates under this Act. The Department, after
9notifying and considering the recommendations of the Board, if
10any, may issue rules, consistent with the provisions of this
11Act, for the administration and enforcement thereof and may
12prescribe forms that shall be used in connection therewith.
13Five Board members shall constitute a quorum. A quorum is
14required for all Board decisions.
15(Source: P.A. 96-856, eff. 12-31-09.)
 
16    Section 10. The Real Estate Appraiser Licensing Act of 2002
17is amended by changing Sections 1-5, 1-10, 5-5, 5-10, 5-15,
185-20, 5-30, 5-35, 5-40, 5-50, 10-5, 15-10, 20-5, 20-10, 25-10,
19and 25-15 and by adding Section 5-22 as follows:
 
20    (225 ILCS 458/1-5)
21    (Section scheduled to be repealed on January 1, 2022)
22    Sec. 1-5. Legislative intent. The intent of the General
23Assembly in enacting this Act is to evaluate the competency of
24persons engaged in the appraisal of real estate in connection

 

 

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1with a federally related transaction and to license and
2regulate those persons for the protection of the public.
3Additionally, it is the intent of the General Assembly for this
4Act to be consistent with the provisions of Title XI of the
5federal Financial Institutions Reform, Recovery and
6Enforcement Act of 1989.
7(Source: P.A. 92-180, eff. 7-1-02.)
 
8    (225 ILCS 458/1-10)
9    (Section scheduled to be repealed on January 1, 2022)
10    Sec. 1-10. Definitions. As used in this Act, unless the
11context otherwise requires:
12    "Accredited college or university, junior college, or
13community college" means a college or university, junior
14college, or community college that is approved or accredited by
15the Board of Higher Education, a regional or national
16accreditation association, or by an accrediting agency that is
17recognized by the U.S. Secretary of Education.
18    "Address of record" means the designated address recorded
19by the Department in the applicant's or licensee's application
20file or license file as maintained by the Department's
21licensure maintenance unit. It is the duty of the applicant or
22licensee to inform the Department of any change of address and
23those changes must be made either through the Department's
24website or by contacting the Department.
25    "Applicant" means person who applies to the Department for

 

 

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1a license under this Act.
2    "Appraisal" means (noun) the act or process of developing
3an opinion of value; an opinion of value (adjective) of or
4pertaining to appraising and related functions, such as
5appraisal practice or appraisal services.
6    "Appraisal assignment" means a valuation service provided
7as a consequence of an agreement between an appraiser and a
8client.
9    "Appraisal consulting" means the act or process of
10developing an analysis, recommendation, or opinion to solve a
11problem, where an opinion of value is a component of the
12analysis leading to the assignment results.
13    "Appraisal firm" means an appraisal entity that is 100%
14owned and controlled by a person or persons licensed in
15Illinois as a certified general real estate appraiser or a
16certified residential real estate appraiser. "Appraisal firm"
17does not include an appraisal management company.
18    "Appraisal management company" means any corporation,
19limited liability company, partnership, sole proprietorship,
20subsidiary, unit, or other business entity that directly or
21indirectly performs the following appraisal management
22services: (1) administers networks of independent contractors
23or employee appraisers to perform real estate appraisal
24assignments for clients; (2) receives requests for real estate
25appraisal services from clients and, for a fee paid by the
26client, enters into an agreement with one or more independent

 

 

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1appraisers to perform the real estate appraisal services
2contained in the request; or (3) otherwise serves as a
3third-party broker of appraisal management services between
4clients and appraisers. "Appraisal management company" does
5not include an appraisal firm.
6    "Appraisal practice" means valuation services performed by
7an individual acting as an appraiser, including, but not
8limited to, appraisal, appraisal review, or appraisal
9consulting.
10    "Appraisal report" means any communication, written or
11oral, of an appraisal or , appraisal review, or appraisal
12consulting service that is transmitted to a client upon
13completion of an assignment.
14    "Appraisal review" means the act or process of developing
15and communicating an opinion about the quality of another
16appraiser's work that was performed as part of an appraisal,
17appraisal review, or appraisal assignment.
18    "Appraisal Subcommittee" means the Appraisal Subcommittee
19of the Federal Financial Institutions Examination Council as
20established by Title XI.
21    "Appraiser" means a person who performs real estate or real
22property appraisals.
23    "AQB" means the Appraisal Qualifications Board of the
24Appraisal Foundation.
25    "Associate real estate trainee appraiser" means an
26entry-level appraiser who holds a license of this

 

 

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1classification under this Act with restrictions as to the scope
2of practice in accordance with this Act.
3    "Board" means the Real Estate Appraisal Administration and
4Disciplinary Board.
5    "Broker price opinion" means an estimate or analysis of the
6probable selling price of a particular interest in real estate,
7which may provide a varying level of detail about the
8property's condition, market, and neighborhood and information
9on comparable sales. The activities of a real estate broker or
10managing broker engaging in the ordinary course of business as
11a broker, as defined in this Section, shall not be considered a
12broker price opinion if no compensation is paid to the broker
13or managing broker, other than compensation based upon the sale
14or rental of real estate.
15    "Classroom hour" means 50 minutes of instruction out of
16each 60 minute segment of coursework.
17    "Client" means the party or parties who engage an appraiser
18by employment or contract in a specific appraisal assignment.
19    "Comparative market analysis" is an analysis or opinion
20regarding pricing, marketing, or financial aspects relating to
21a specified interest or interests in real estate that may be
22based upon an analysis of comparative market data, the
23expertise of the real estate broker or managing broker, and
24such other factors as the broker or managing broker may deem
25appropriate in developing or preparing such analysis or
26opinion. The activities of a real estate broker or managing

 

 

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1broker engaging in the ordinary course of business as a broker,
2as defined in this Section, shall not be considered a
3comparative market analysis if no compensation is paid to the
4broker or managing broker, other than compensation based upon
5the sale or rental of real estate.
6    "Coordinator" means the Coordinator of Real Estate
7Appraisal of the Division of Professional Regulation of the
8Department of Financial and Professional Regulation.
9    "Department" means the Department of Financial and
10Professional Regulation.
11    "Federal financial institutions regulatory agencies" means
12the Board of Governors of the Federal Reserve System, the
13Federal Deposit Insurance Corporation, the Office of the
14Comptroller of the Currency, the Consumer Financial Protection
15Bureau Office of Thrift Supervision, and the National Credit
16Union Administration.
17    "Federally related transaction" means any real
18estate-related financial transaction in which a federal
19financial institutions regulatory agency, the Department of
20Housing and Urban Development, Fannie Mae, Freddie Mae, or the
21National Credit Union Administration engages in, contracts
22for, or regulates and requires the services of an appraiser.
23    "Financial institution" means any bank, savings bank,
24savings and loan association, credit union, mortgage broker,
25mortgage banker, licensee under the Consumer Installment Loan
26Act or the Sales Finance Agency Act, or a corporate fiduciary,

 

 

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1subsidiary, affiliate, parent company, or holding company of
2any such licensee, or any institution involved in real estate
3financing that is regulated by state or federal law.
4    "Modular Course" means the Appraisal Qualifying Course
5Design conforming to the Sub Topics Course Outline contained in
6the AQB Criteria 2008.
7    "Person" means an individual, entity, sole proprietorship,
8corporation, limited liability company, partnership, and joint
9venture, foreign or domestic, except that when the context
10otherwise requires, the term may refer to more than one
11individual or other described entity.
12    "Real estate" means an identified parcel or tract of land,
13including any improvements.
14    "Real estate related financial transaction" means any
15transaction involving:
16        (1) the sale, lease, purchase, investment in, or
17    exchange of real property, including interests in property
18    or the financing thereof;
19        (2) the refinancing of real property or interests in
20    real property; and
21        (3) the use of real property or interest in property as
22    security for a loan or investment, including mortgage
23    backed securities.
24    "Real property" means the interests, benefits, and rights
25inherent in the ownership of real estate.
26    "Secretary" means the Secretary of Financial and

 

 

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1Professional Regulation.
2    "State certified general real estate appraiser" means an
3appraiser who holds a license of this classification under this
4Act and such classification applies to the appraisal of all
5types of real property without restrictions as to the scope of
6practice.
7    "State certified residential real estate appraiser" means
8an appraiser who holds a license of this classification under
9this Act and such classification applies to the appraisal of
10one to 4 units of residential real property without regard to
11transaction value or complexity, but with restrictions as to
12the scope of practice in a federally related transaction in
13accordance with Title XI, the provisions of USPAP, criteria
14established by the AQB, and further defined by rule.
15    "Supervising appraiser" means either (i) an appraiser who
16holds a valid license under this Act as either a State
17certified general real estate appraiser or a State certified
18residential real estate appraiser, who co-signs an appraisal
19report for an associate real estate trainee appraiser or (ii) a
20State certified general real estate appraiser who holds a valid
21license under this Act who co-signs an appraisal report for a
22State certified residential real estate appraiser on
23properties other than one to 4 units of residential real
24property without regard to transaction value or complexity.
25    "Title XI" means Title XI of the federal Financial
26Institutions Reform, Recovery and Enforcement Act of 1989.

 

 

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

 

 

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1misdemeanor for a first offense and a Class 4 felony for any
2subsequent offense.
3    (b) It is unlawful for a person, other than a person who
4holds a valid license issued pursuant to this Act as a State
5certified general real estate appraiser, a State certified
6residential real estate appraiser, or an associate real estate
7trainee appraiser to use these titles or any other title,
8designation, or abbreviation likely to create the impression
9that the person is licensed as a real estate appraiser pursuant
10to this Act. A person who violates this subsection is guilty of
11a Class A misdemeanor for a first offense and a Class 4 felony
12for any subsequent offense.
13    (c) This Act does not apply to a person who holds a valid
14license as a real estate broker or managing broker pursuant to
15the Real Estate License Act of 2000 who prepares or provides a
16broker price opinion or comparative market analysis in
17compliance with Section 10-45 of the Real Estate License Act of
182000. The licensing requirements of this Act do not require a
19person who holds a valid license pursuant to the Real Estate
20License Act of 2000, to be licensed as a real estate appraiser
21under this Act, unless that person is providing or attempting
22to provide an appraisal report, as defined in Section 1-10 of
23this Act, in connection with a federally-related transaction.
24Nothing in this Act shall prohibit a person who holds a valid
25license under the Real Estate License Act of 2000 from
26performing a comparative market analysis or broker price

 

 

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1opinion for compensation, provided that the person does not
2hold himself out as being a licensed real estate appraiser.
3    (d) Nothing in this Act shall preclude a State certified
4general real estate appraiser, a State certified residential
5real estate appraiser, or an associate real estate trainee
6appraiser from rendering appraisals for or on behalf of a
7partnership, association, corporation, firm, or group.
8However, no State appraisal license or certification shall be
9issued under this Act to a partnership, association,
10corporation, firm, or group.
11    (e) This Act does not apply to a county assessor, township
12assessor, multi-township assessor, county supervisor of
13assessments, or any deputy or employee of any county assessor,
14township assessor, multi-township assessor, or county
15supervisor of assessments who is performing his or her
16respective duties in accordance with the provisions of the
17Property Tax Code.
18    (e-5) For the purposes of this Act, valuation waivers may
19be prepared by a licensed appraiser notwithstanding any other
20provision of this Act, and the following types of valuations
21are not appraisals and may not be represented to be appraisals,
22and a license is not required under this Act to perform such
23valuations if the valuations are performed by (1) an employee
24of the Illinois Department of Transportation who has completed
25a minimum of 45 hours of course work in real estate appraisal,
26including the principals of real estate appraisals, appraisal

 

 

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

 

 

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1    is employed by a county and is a registered professional
2    engineer under the Professional Engineering Practice Act
3    of 1989. In addition to his or her signature, the county
4    engineer shall affix his or her license number to the
5    valuation.
6    Nothing in this subsection (e-5) shall be construed to
7allow the State of Illinois, a political subdivision thereof,
8or any public body to acquire real estate by eminent domain in
9any manner other than provided for in the Eminent Domain Act.
10    (f) A State real estate appraisal certification or license
11is not required under this Act for any of the following:
12        (1) A person, partnership, association, or corporation
13    that performs appraisals of property owned by that person,
14    partnership, association, or corporation for the sole use
15    of that person, partnership, association, or corporation.
16        (2) A court-appointed commissioner who conducts an
17    appraisal pursuant to a judicially ordered evaluation of
18    property.
19However, any person who is certified or licensed under this Act
20and who performs any of the activities set forth in this
21subsection (f) must comply with the provisions of this Act. A
22person who violates this subsection (f) is guilty of a Class A
23misdemeanor for a first offense and a Class 4 felony for any
24subsequent offense.
25    (g) This Act does not apply to an employee, officer,
26director, or member of a credit or loan committee of a

 

 

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1financial institution or any other person engaged by a
2financial institution when performing an evaluation of real
3property for the sole use of the financial institution in a
4transaction for which the financial institution would not be
5required to use the services of a State licensed or State
6certified appraiser pursuant to federal regulations adopted
7under Title XI of the federal Financial Institutions Reform,
8Recovery, and Enforcement Act of 1989, nor does this Act apply
9to the procurement of an automated valuation model.
10    "Automated valuation model" means an automated system that
11is used to derive a property value through the use of publicly
12available property records and various analytic methodologies
13such as comparable sales prices, home characteristics, and
14historical home price appreciations.
15(Source: P.A. 97-602, eff. 8-26-11; 98-444, eff. 8-16-13.)
 
16    (225 ILCS 458/5-10)
17    (Section scheduled to be repealed on January 1, 2022)
18    Sec. 5-10. Application for State certified general real
19estate appraiser.
20    (a) Every person who desires to obtain a State certified
21general real estate appraiser license shall:
22        (1) apply to the Department on forms provided by the
23    Department accompanied by the required fee;
24        (2) be at least 18 years of age;
25        (3) (blank);

 

 

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1        (4) personally take and pass an examination authorized
2    by the Department and endorsed by the AQB;
3        (5) prior to taking the examination, provide evidence
4    to the Department, in Modular Course format, with each
5    module conforming to the Required Core Curriculum Real
6    Property Appraiser Qualification Criteria established and
7    adopted by the AQB, that he or she has successfully
8    completed the prerequisite classroom hours of instruction
9    in appraising as established by the AQB and by rule; and
10        (6) prior to taking the examination, provide evidence
11    to the Department that he or she has successfully completed
12    the prerequisite experience and educational requirements
13    in appraising as established by AQB and by rule.
14    (b) Applicants must provide evidence to the Department of
15(i) holding a Bachelor's degree or higher from an accredited
16college or university. or (ii) successfully passing 30 semester
17credit hours or the equivalent from an accredited college or
18university, junior college, or community college in the
19following subjects:
20        (1) English composition;
21        (2) micro economics;
22        (3) macro economics;
23        (4) finance;
24        (5) algebra, geometry, or higher mathematics;
25        (6) statistics;
26        (7) introduction to computers-word processing and

 

 

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1    spreadsheets;
2        (8) business or real estate law; and
3        (9) two elective courses in accounting, geography,
4    agricultural economics, business management, or real
5    estate.
6    If an accredited college or university accepts the
7College-Level Examination Program (CLEP) examinations and
8issues a transcript for the exam showing its approval, it will
9be considered credit for the college course for the purposes of
10meeting the requirements of this subsection (b).
11(Source: P.A. 96-844, eff. 12-23-09; 96-1000, eff. 7-2-10.)
 
12    (225 ILCS 458/5-15)
13    (Section scheduled to be repealed on January 1, 2022)
14    Sec. 5-15. Application for State certified residential
15real estate appraiser.
16    (a) Every person who desires to obtain a State certified
17residential real estate appraiser license shall:
18        (1) apply to the Department on forms provided by the
19    Department accompanied by the required fee;
20        (2) be at least 18 years of age;
21        (3) (blank);
22        (4) personally take and pass an examination authorized
23    by the Department and endorsed by the AQB;
24        (5) prior to taking the examination, provide evidence
25    to the Department, in Modular Course format, with each

 

 

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1    module conforming to the Required Core Curriculum Real
2    Property Appraiser Qualification Criteria established and
3    adopted by the AQB, that he or she has successfully
4    completed the prerequisite classroom hours of instruction
5    in appraising as established by the AQB and by rule; and
6        (6) prior to taking the examination, provide evidence
7    to the Department that he or she has successfully completed
8    the prerequisite experience and educational requirements
9    as established by AQB and by rule.
10    (b) Applicants must provide evidence to the Department of
11(i) holding an Associate's degree or its equivalent from an
12accredited college or university, junior college, or community
13college or (ii) successfully passing 21 semester credit hours
14or the equivalent from an accredited college or university,
15junior college, or community college in the following subjects:
16        (1) English composition;
17        (2) principals of economics (micro or macro);
18        (3) finance;
19        (4) algebra, geometry, or higher mathematics;
20        (5) statistics;
21        (6) introduction to computers-word processing and
22    spreadsheets; and
23        (7) business or real estate law.
24    If an accredited college or university accepts the
25College-Level Examination Program (CLEP) examinations and
26issues a transcript for the exam showing its approval, it will

 

 

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1be considered credit for the college course for the purposes of
2the requirements of this subsection (b).
3(Source: P.A. 96-844, eff. 12-23-09.)
 
4    (225 ILCS 458/5-20)
5    (Section scheduled to be repealed on January 1, 2022)
6    Sec. 5-20. Application for associate real estate trainee
7appraiser. Every person who desires to obtain an associate real
8estate trainee appraiser license shall:
9        (1) apply to the Department on forms provided by the
10    Department accompanied by the required fee;
11        (2) be at least 18 years of age;
12        (3) provide evidence of having attained a high school
13    diploma or completed an equivalent course of study as
14    determined by an examination conducted or accepted by the
15    Illinois State Board of Education;
16        (4) personally take and pass an examination authorized
17    by the Department; and
18        (5) prior to taking the examination, provide evidence
19    to the Department that he or she has successfully completed
20    the prerequisite qualifying and any conditional education
21    requirements classroom hours of instruction in appraising
22    as established by rule.
23(Source: P.A. 96-844, eff. 12-23-09.)
 
24    (225 ILCS 458/5-22 new)

 

 

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1    Sec. 5-22. Criminal history records check. Each applicant
2for licensure by examination or restoration shall have his or
3her fingerprints submitted to the Department of State Police in
4an electronic format that complies with the form and manner for
5requesting and furnishing criminal history record information
6as prescribed by the Department of State Police. These
7fingerprints shall be checked against the Department of State
8Police and Federal Bureau of Investigation criminal history
9record databases now and hereafter filed. The Department of
10State Police shall charge applicants a fee for conducting the
11criminal history records check, which shall be deposited into
12the State Police Services Fund and shall not exceed the actual
13cost of the records check. The Department of State Police shall
14furnish, pursuant to positive identification, records of
15Illinois convictions to the Department. The Department may
16require applicants to pay a separate fingerprinting fee, either
17to the Department or to a vendor. The Department may adopt any
18rules necessary to implement this Section.
 
19    (225 ILCS 458/5-30)
20    (Section scheduled to be repealed on January 1, 2022)
21    Sec. 5-30. Endorsement. The Department may issue an
22appraiser license, without the required examination, to an
23applicant licensed by another state, territory, possession of
24the United States, or the District of Columbia, if (i) the
25licensing requirements of that licensing authority are, on the

 

 

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1date of licensure, substantially equal to the requirements set
2forth under this Act or to a person who, at the time of his or
3her application, possessed individual qualifications that were
4substantially equivalent to the requirements of this Act or
5(ii) the applicant provides the Department with evidence of
6good standing from the Appraisal Subcommittee National
7Registry report and a criminal history records check in
8accordance with Section 5-22. An applicant under this Section
9shall pay all of the required fees.
10(Source: P.A. 96-844, eff. 12-23-09.)
 
11    (225 ILCS 458/5-35)
12    (Section scheduled to be repealed on January 1, 2022)
13    Sec. 5-35. Qualifying Pre-license education requirements.
14    (a) The prerequisite classroom hours necessary for a person
15to be approved to sit for the examination for licensure as a
16State certified general real estate appraiser or a State
17certified residential real estate appraiser shall be in
18accordance with AQB criteria and established by rule.
19    (b) The prerequisite classroom hours necessary for a person
20to sit for the examination for licensure as an associate real
21estate trainee appraiser shall be established by rule.
22(Source: P.A. 96-844, eff. 12-23-09.)
 
23    (225 ILCS 458/5-40)
24    (Section scheduled to be repealed on January 1, 2022)

 

 

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1    Sec. 5-40. Qualifying Pre-license experience requirements.
2The prerequisite experience necessary for a person to be
3approved to sit for the examination for licensure as a State
4certified general real estate appraiser or a State certified
5residential real estate appraiser shall be established by rule.
6(Source: P.A. 96-844, eff. 12-23-09.)
 
7    (225 ILCS 458/5-50)
8    (Section scheduled to be repealed on January 1, 2022)
9    Sec. 5-50. Temporary practice permits. A nonresident
10appraiser who holds a valid appraiser license in another state,
11territory, possession of the United States, or the District of
12Columbia may be granted a temporary practice permit to practice
13as an appraiser in the State of Illinois upon making an
14application and paying the applicable fees pursuant to
15Appraisal Subcommittee policy statements and as established by
16rule.
17(Source: P.A. 92-180, eff. 7-1-02.)
 
18    (225 ILCS 458/10-5)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 10-5. Scope of practice.
21    (a) This Act does not limit a State certified general real
22estate appraiser in his or her scope of practice in a federally
23related transaction. A certified general real estate appraiser
24may independently provide appraisal services, review, or

 

 

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

 

 

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1appraisers at one time. Associate real estate trainee
2appraisers shall not be limited in the number of concurrent
3supervising appraisers. A chronological appraisal log on an
4approved log form shall be maintained by the associate real
5estate trainee appraiser and shall be made available to the
6Department upon request.
7(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
8    (225 ILCS 458/15-10)
9    (Section scheduled to be repealed on January 1, 2022)
10    Sec. 15-10. Grounds for disciplinary action.
11    (a) The Department may suspend, revoke, refuse to issue,
12renew, or restore a license and may reprimand place on
13probation or administrative supervision, or take any
14disciplinary or non-disciplinary action, including imposing
15conditions limiting the scope, nature, or extent of the real
16estate appraisal practice of a licensee or reducing the
17appraisal rank of a licensee, and may impose an administrative
18fine not to exceed $25,000 for each violation upon a licensee
19for any one or combination of the following:
20        (1) Procuring or attempting to procure a license by
21    knowingly making a false statement, submitting false
22    information, engaging in any form of fraud or
23    misrepresentation, or refusing to provide complete
24    information in response to a question in an application for
25    licensure.

 

 

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1        (2) Failing to meet the minimum qualifications for
2    licensure as an appraiser established by this Act.
3        (3) Paying money, other than for the fees provided for
4    by this Act, or anything of value to a member or employee
5    of the Board or the Department to procure licensure under
6    this Act.
7        (4) Conviction by plea of guilty or nolo contendere,
8    finding of guilt, jury verdict, or entry of judgment or by
9    sentencing of any crime, including, but not limited to,
10    convictions, preceding sentences of supervision,
11    conditional discharge, or first offender probation, under
12    the laws of any jurisdiction of the United States: (i) that
13    is a felony; or (ii) that is a misdemeanor, an essential
14    element of which is dishonesty, or that is directly related
15    to the practice of the profession.
16        (5) Committing an act or omission involving
17    dishonesty, fraud, or misrepresentation with the intent to
18    substantially benefit the licensee or another person or
19    with intent to substantially injure another person as
20    defined by rule.
21        (6) Violating a provision or standard for the
22    development or communication of real estate appraisals as
23    provided in Section 10-10 of this Act or as defined by
24    rule.
25        (7) Failing or refusing without good cause to exercise
26    reasonable diligence in developing, reporting, or

 

 

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1    communicating an appraisal, as defined by this Act or by
2    rule.
3        (8) Violating a provision of this Act or the rules
4    adopted pursuant to this Act.
5        (9) Having been disciplined by another state, the
6    District of Columbia, a territory, a foreign nation, a
7    governmental agency, or any other entity authorized to
8    impose discipline if at least one of the grounds for that
9    discipline is the same as or the equivalent of one of the
10    grounds for which a licensee may be disciplined under this
11    Act.
12        (10) Engaging in dishonorable, unethical, or
13    unprofessional conduct of a character likely to deceive,
14    defraud, or harm the public.
15        (11) Accepting an appraisal assignment when the
16    employment itself is contingent upon the appraiser
17    reporting a predetermined estimate, analysis, or opinion
18    or when the fee to be paid is contingent upon the opinion,
19    conclusion, or valuation reached or upon the consequences
20    resulting from the appraisal assignment.
21        (12) Developing valuation conclusions based on the
22    race, color, religion, sex, national origin, ancestry,
23    age, marital status, family status, physical or mental
24    disability, or unfavorable military discharge, as defined
25    under the Illinois Human Rights Act, of the prospective or
26    present owners or occupants of the area or property under

 

 

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1    appraisal.
2        (13) Violating the confidential nature of government
3    records to which the licensee gained access through
4    employment or engagement as an appraiser by a government
5    agency.
6        (14) Being adjudicated liable in a civil proceeding on
7    grounds of fraud, misrepresentation, or deceit. In a
8    disciplinary proceeding based upon a finding of civil
9    liability, the appraiser shall be afforded an opportunity
10    to present mitigating and extenuating circumstances, but
11    may not collaterally attack the civil adjudication.
12        (15) Being adjudicated liable in a civil proceeding for
13    violation of a state or federal fair housing law.
14        (16) Engaging in misleading or untruthful advertising
15    or using a trade name or insignia of membership in a real
16    estate appraisal or real estate organization of which the
17    licensee is not a member.
18        (17) Failing to fully cooperate with a Department
19    investigation by knowingly making a false statement,
20    submitting false or misleading information, or refusing to
21    provide complete information in response to written
22    interrogatories or a written request for documentation
23    within 30 days of the request.
24        (18) Failing to include within the certificate of
25    appraisal for all written appraisal reports the
26    appraiser's license number and licensure title. All

 

 

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1    appraisers providing significant contribution to the
2    development and reporting of an appraisal must be disclosed
3    in the appraisal report. It is a violation of this Act for
4    an appraiser to sign a report, transmittal letter, or
5    appraisal certification knowing that a person providing a
6    significant contribution to the report has not been
7    disclosed in the appraisal report.
8        (19) Violating the terms of a disciplinary order or
9    consent to administrative supervision order.
10        (20) Habitual or excessive use or addiction to alcohol,
11    narcotics, stimulants, or any other chemical agent or drug
12    that results in a licensee's inability to practice with
13    reasonable judgment, skill, or safety.
14        (21) A physical or mental illness or disability which
15    results in the inability to practice under this Act with
16    reasonable judgment, skill, or safety.
17        (22) Gross negligence in developing an appraisal or in
18    communicating an appraisal or failing to observe one or
19    more of the Uniform Standards of Professional Appraisal
20    Practice.
21        (23) A pattern of practice or other behavior that
22    demonstrates incapacity or incompetence to practice under
23    this Act.
24        (24) Using or attempting to use the seal, certificate,
25    or license of another as his or her own; falsely
26    impersonating any duly licensed appraiser; using or

 

 

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1    attempting to use an inactive, expired, suspended, or
2    revoked license; or aiding or abetting any of the
3    foregoing.
4        (25) Solicitation of professional services by using
5    false, misleading, or deceptive advertising.
6        (26) Making a material misstatement in furnishing
7    information to the Department.
8        (27) Failure to furnish information to the Department
9    upon written request.
10    (b) The Department may reprimand suspend, revoke, or refuse
11to issue or renew an education provider's license, may
12reprimand, place on probation, or otherwise discipline an
13education provider and may suspend or revoke the course
14approval of any course offered by an education provider and may
15impose an administrative fine not to exceed $25,000 upon an
16education provider, for any of the following:
17        (1) Procuring or attempting to procure licensure by
18    knowingly making a false statement, submitting false
19    information, engaging in any form of fraud or
20    misrepresentation, or refusing to provide complete
21    information in response to a question in an application for
22    licensure.
23        (2) Failing to comply with the covenants certified to
24    on the application for licensure as an education provider.
25        (3) Committing an act or omission involving
26    dishonesty, fraud, or misrepresentation or allowing any

 

 

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1    such act or omission by any employee or contractor under
2    the control of the provider.
3        (4) Engaging in misleading or untruthful advertising.
4        (5) Failing to retain competent instructors in
5    accordance with rules adopted under this Act.
6        (6) Failing to meet the topic or time requirements for
7    course approval as the provider of a qualifying pre-license
8    curriculum course or a continuing education course.
9        (7) Failing to administer an approved course using the
10    course materials, syllabus, and examinations submitted as
11    the basis of the course approval.
12        (8) Failing to provide an appropriate classroom
13    environment for presentation of courses, with
14    consideration for student comfort, acoustics, lighting,
15    seating, workspace, and visual aid material.
16        (9) Failing to maintain student records in compliance
17    with the rules adopted under this Act.
18        (10) Failing to provide a certificate, transcript, or
19    other student record to the Department or to a student as
20    may be required by rule.
21        (11) Failing to fully cooperate with an investigation
22    by the Department by knowingly making a false statement,
23    submitting false or misleading information, or refusing to
24    provide complete information in response to written
25    interrogatories or a written request for documentation
26    within 30 days of the request.

 

 

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1    (c) In appropriate cases, the Department may resolve a
2complaint against a licensee through the issuance of a Consent
3to Administrative Supervision order. A licensee subject to a
4Consent to Administrative Supervision order shall be
5considered by the Department as an active licensee in good
6standing. This order shall not be reported or considered by the
7Department to be a discipline of the licensee. The records
8regarding an investigation and a Consent to Administrative
9Supervision order shall be considered confidential and shall
10not be released by the Department except as mandated by law. A
11complainant shall be notified if his or her complaint has been
12resolved by a Consent to Administrative Supervision order.
13(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11;
1497-877, eff. 8-2-12.)
 
15    (225 ILCS 458/20-5)
16    (Section scheduled to be repealed on January 1, 2022)
17    Sec. 20-5. Education providers.
18    (a) Beginning July 1, 2002, only education providers
19licensed or otherwise approved by the Department may provide
20the qualifying pre-license and continuing education courses
21required for licensure under this Act.
22    (b) A person or entity seeking to be licensed as an
23education provider under this Act shall provide satisfactory
24evidence of the following:
25        (1) a sound financial base for establishing,

 

 

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1    promoting, and delivering the necessary courses;
2        (2) a sufficient number of qualified instructors;
3        (3) adequate support personnel to assist with
4    administrative matters and technical assistance;
5        (4) a written policy dealing with procedures for
6    management of grievances and fee refunds;
7        (5) a qualified administrator, who is responsible for
8    the administration of the education provider, courses, and
9    the actions of the instructors; and
10        (6) any other requirements as provided by rule.
11    (c) All applicants for an education provider's license
12shall make initial application to the Department on forms
13provided by the Department and pay the appropriate fee as
14provided by rule. The term, expiration date, and renewal of an
15education provider's license shall be established by rule.
16    (d) An education provider shall provide each successful
17course participant with a certificate of completion signed by
18the school administrator. The format and content of the
19certificate shall be specified by rule.
20    (e) All education providers shall provide to the Department
21a monthly roster of all successful course participants as
22provided by rule.
23(Source: P.A. 96-844, eff. 12-23-09.)
 
24    (225 ILCS 458/20-10)
25    (Section scheduled to be repealed on January 1, 2022)

 

 

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1    Sec. 20-10. Course approval.
2    (a) Only courses offered by licensed education providers
3and approved by the Department, courses approved by the AQB, or
4courses approved by jurisdictions regulated by the Appraisal
5Subcommittee shall be used to meet the requirements of this Act
6and rules.
7    (b) An education provider licensed under this Act may
8submit courses to the Department for approval. The criteria,
9requirements, and fees for courses shall be established by rule
10in accordance with this Act, Title XI, and the criteria
11established by the AQB.
12    (c) For each course approved, the Department shall issue a
13license to the education provider. The term, expiration date,
14and renewal of a course approval shall be established by rule.
15    (d) An education provider must use an instructor for each
16course approved by the Department who (i) holds a valid real
17estate appraisal license in good standing as a State certified
18general real estate appraiser or a State certified residential
19real estate appraiser in Illinois or any other jurisdiction
20monitored regulated by the Appraisal Subcommittee, (ii) holds a
21valid teaching certificate issued by the State of Illinois,
22(iii) is a faculty member in good standing with an accredited
23college or university or community college, or (iv) is an
24approved appraisal instructor from an appraisal organization
25that is a member of the Appraisal Foundation.
26(Source: P.A. 96-844, eff. 12-23-09.)
 

 

 

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1    (225 ILCS 458/25-10)
2    (Section scheduled to be repealed on January 1, 2022)
3    Sec. 25-10. Real Estate Appraisal Administration and
4Disciplinary Board; appointment.
5    (a) There is hereby created the Real Estate Appraisal
6Administration and Disciplinary Board. The Board shall be
7composed of 10 persons appointed by the Governor, plus the
8Coordinator of the Real Estate Appraisal Division. Members
9shall be appointed to the Board subject to the following
10conditions:
11        (1) All appointed members shall have been residents and
12    citizens of this State for at least 5 years prior to the
13    date of appointment.
14        (2) The appointed membership of the Board should
15    reasonably reflect the geographic distribution of the
16    population of the State.
17        (3) Four appointed members shall have been actively
18    engaged and currently licensed as State certified general
19    real estate appraisers for a period of not less than 5
20    years.
21        (4) Two appointed members shall have been actively
22    engaged and currently licensed as State certified
23    residential real estate appraisers for a period of not less
24    than 5 years.
25        (5) Two appointed members shall hold a valid license as

 

 

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

 

 

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

 

 

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1meeting.
2    (g) The Coordinator of the Real Estate Appraisal Division
3shall serve as a member of the Board without vote.
4    (h) The Board shall advise and make recommendations to the
5Department on the education and experience qualifications of
6any applicant for initial licensure as a State certified
7general real estate appraiser or a State certified residential
8real estate appraiser. The Department shall not make any
9decisions concerning education or experience qualifications of
10an applicant for initial licensure as a State certified general
11real estate appraiser or a State certified residential real
12estate appraiser without having first received the advice and
13recommendation of the Board and shall give due consideration to
14all such advice and recommendations; however, if the Board does
15not render advice or make a recommendation within a reasonable
16amount of time, then the Department may render a decision.
17    (i) Except as provided in Section 15-17 of this Act, the
18Board shall hear and make recommendations to the Secretary on
19disciplinary matters that require a formal evidentiary
20hearing. The Secretary shall give due consideration to the
21recommendations of the Board involving discipline and
22questions involving standards of professional conduct of
23licensees.
24    (j) The Department shall seek and the Board shall provide
25recommendations to the Department consistent with the
26provisions of this Act and for the administration and

 

 

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1enforcement of all rules adopted pursuant to this Act. The
2Department shall give due consideration to such
3recommendations prior to adopting rules.
4    (k) The Department shall seek and the Board shall provide
5recommendations to the Department on the approval of all
6courses submitted to the Department pursuant to this Act and
7the rules adopted pursuant to this Act. The Department shall
8not approve any courses without having first received the
9recommendation of the Board and shall give due consideration to
10such recommendations prior to approving and licensing courses;
11however, if the Board does not make a recommendation within a
12reasonable amount of time, then the Department may approve
13courses.
14    (l) Each voting member of the Board shall receive a per
15diem stipend in an amount to be determined by the Secretary.
16Each member shall be paid his or her necessary expenses while
17engaged in the performance of his or her duties.
18    (m) Members of the Board shall be immune from suit in an
19action based upon any disciplinary proceedings or other acts
20performed in good faith as members of the Board.
21    (n) If the Department disagrees with any advice or
22recommendation provided by the Board under this Section to the
23Secretary or the Department, then notice of such disagreement
24must be provided to the Board by the Department.
25    (o) Upon resolution adopted at any Board meeting, the
26exercise of any Board function, power, or duty enumerated in

 

 

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1this Section or in subsection (d) of Section 15-10 of this Act
2may be suspended. The exercise of any suspended function,
3power, or duty of the Board may be reinstated by a resolution
4adopted at a subsequent Board meeting. Any resolution adopted
5pursuant to this Section shall take effect immediately.
6(Source: P.A. 96-844, eff. 12-23-09.)
 
7    (225 ILCS 458/25-15)
8    (Section scheduled to be repealed on January 1, 2022)
9    Sec. 25-15. Coordinator of Real Estate Appraisal;
10appointment; duties. The Secretary shall appoint, subject to
11the Personnel Code, a Coordinator of Real Estate Appraisal. In
12appointing the Coordinator, the Secretary shall give due
13consideration to recommendations made by members,
14organizations, and associations of the real estate appraisal
15industry. On or after January 1, 2010, the Coordinator must
16hold a current, valid State certified general real estate
17appraiser license. The Coordinator shall not practice or a
18State certified residential real estate appraiser license,
19which shall be surrendered to the Department during the term of
20his or her appointment. The Coordinator must take the 30-hour
21National Instructors Course on Uniform Standards of
22Professional Appraisal Practice. The Coordinator Coordinator's
23license shall be returned in the same status as it was on the
24date of surrender, credited with all fees that came due during
25his or her employment. The Coordinator shall:

 

 

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1        (1) serve as a member of the Real Estate Appraisal
2    Administration and Disciplinary Board without vote;
3        (2) be the direct liaison between the Department, the
4    profession, and the real estate appraisal industry
5    organizations and associations;
6        (3) prepare and circulate to licensees such
7    educational and informational material as the Department
8    deems necessary for providing guidance or assistance to
9    licensees;
10        (4) appoint necessary committees to assist in the
11    performance of the functions and duties of the Department
12    under this Act;
13        (5) (blank); and
14        (6) be authorized to investigate and determine the
15    facts of a complaint; the coordinator may interview
16    witnesses, the complainant, and any licensees involved in
17    the alleged matter and make a recommendation as to the
18    findings of fact.
19(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)