Full Text of SB2887 93rd General Assembly
SB2887enr 93RD GENERAL ASSEMBLY
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| AN ACT concerning professional regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Real Estate License Act of 2000 is amended | 5 |
| by changing Sections 1-10, 5-30, 5-50, 5-70, and 20-20 and by | 6 |
| adding Section 15-75 as follows:
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| (225 ILCS 454/1-10)
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| (Section scheduled to be repealed on January 1, 2010)
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| Sec. 1-10. Definitions. In this Act, unless the context | 10 |
| otherwise requires:
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| "Act" means the Real Estate License Act of 2000.
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| "Advisory Council" means the Real Estate Education | 13 |
| Advisory Council created
under Section 30-10 of this Act.
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| "Agency" means a relationship in which a real estate broker | 15 |
| or licensee,
whether directly or through an affiliated | 16 |
| licensee, represents a consumer by
the consumer's consent, | 17 |
| whether express or implied, in a real property
transaction.
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| "Applicant" means any person, as defined in this Section, | 19 |
| who applies to
OBRE for a valid license as a real estate | 20 |
| broker, real estate salesperson, or
leasing agent.
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| "Blind advertisement" means any real estate advertisement | 22 |
| that does not
include the sponsoring broker's business name and | 23 |
| that is used by any licensee
regarding the sale or lease of | 24 |
| real estate, including his or her own, licensed
activities, or | 25 |
| the hiring of any licensee under this Act. The broker's
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| business name in the case of a franchise shall include the | 27 |
| franchise
affiliation as well as the name of the individual | 28 |
| firm.
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| "Board" means the Real Estate Administration and | 30 |
| Disciplinary Board of OBRE.
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| "Branch office" means a sponsoring broker's office other | 32 |
| than the sponsoring
broker's principal office.
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| "Broker" means an individual, partnership, limited | 2 |
| liability company,
corporation, or registered limited | 3 |
| liability partnership other than a real
estate salesperson or | 4 |
| leasing agent who for another and for compensation, or
with the | 5 |
| intention or expectation of receiving compensation, either
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| directly or indirectly:
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| (1) Sells, exchanges, purchases, rents, or leases real | 8 |
| estate.
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| (2) Offers to sell, exchange, purchase, rent, or lease | 10 |
| real estate.
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| (3) Negotiates, offers, attempts, or agrees to | 12 |
| negotiate the sale,
exchange, purchase, rental, or leasing | 13 |
| of real estate.
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| (4) Lists, offers, attempts, or agrees to list real | 15 |
| estate for sale,
lease, or exchange.
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| (5) Buys, sells, offers to buy or sell, or otherwise | 17 |
| deals in options on
real estate or improvements thereon.
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| (6) Supervises the collection, offer, attempt, or | 19 |
| agreement
to collect rent for the use of real estate.
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| (7) Advertises or represents himself or herself as | 21 |
| being engaged in the
business of buying, selling, | 22 |
| exchanging, renting, or leasing real estate.
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| (8) Assists or directs in procuring or referring of | 24 |
| prospects, intended to
result in the sale, exchange, lease, | 25 |
| or rental of real estate.
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| (9) Assists or directs in the negotiation of any | 27 |
| transaction intended to
result in the sale, exchange, | 28 |
| lease, or rental of real estate.
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| (10) Opens real estate to the public for marketing | 30 |
| purposes.
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| (11) Sells, leases, or offers for sale or lease real | 32 |
| estate at
auction.
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| "Brokerage agreement" means a written or oral agreement | 34 |
| between a sponsoring
broker and a consumer for licensed | 35 |
| activities to be provided to a consumer in
return for | 36 |
| compensation or the right to receive compensation from another.
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| Brokerage agreements may constitute either a bilateral or a | 2 |
| unilateral
agreement between the broker and the broker's client | 3 |
| depending upon the content
of the brokerage agreement. All | 4 |
| exclusive brokerage agreements shall be in
writing.
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| "Client" means a person who is being represented by a | 6 |
| licensee.
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| "Commissioner" means the Commissioner of Banks and Real | 8 |
| Estate or a person
authorized by the Commissioner, the Office | 9 |
| of Banks and Real Estate Act, or
this Act to act in the | 10 |
| Commissioner's stead.
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| "Compensation" means the valuable consideration given by | 12 |
| one person or entity
to another person or entity in exchange | 13 |
| for the performance of some activity or
service. Compensation | 14 |
| shall include the transfer of valuable consideration,
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| including without limitation the following:
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| (1) commissions;
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| (2) referral fees;
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| (3) bonuses;
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| (4) prizes;
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| (5) merchandise;
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| (6) finder fees;
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| (7) performance of services;
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| (8) coupons or gift certificates;
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| (9) discounts;
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| (10) rebates;
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| (11) a chance to win a raffle, drawing, lottery, or | 27 |
| similar game of chance
not prohibited by any other law or | 28 |
| statute;
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| (12) retainer fee; or
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| (13) salary.
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| "Confidential information" means information obtained by a | 32 |
| licensee from a
client during the term of a brokerage agreement | 33 |
| that (i) was made confidential
by the written request or | 34 |
| written instruction of the client, (ii) deals with
the | 35 |
| negotiating position of the client, or (iii) is information the | 36 |
| disclosure
of which could materially harm the negotiating |
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| position of the client, unless
at any time:
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| (1) the client permits the disclosure of information | 3 |
| given by that client
by word or conduct;
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| (2) the disclosure is required by law; or
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| (3) the information becomes public from a source other | 6 |
| than the licensee.
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| "Confidential information" shall not be considered to | 8 |
| include material
information about the physical condition of | 9 |
| the property.
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| "Consumer" means a person or entity seeking or receiving | 11 |
| licensed
activities.
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| "Continuing education school" means any person licensed by | 13 |
| OBRE as a school
for continuing education in accordance with | 14 |
| Section 30-15 of this Act.
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| "Credit hour" means 50 minutes of classroom instruction in | 16 |
| course work that
meets the requirements set forth in rules | 17 |
| adopted by OBRE.
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| "Customer" means a consumer who is not being represented by | 19 |
| the licensee but
for whom the licensee is performing | 20 |
| ministerial acts.
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| "Designated agency" means a contractual relationship | 22 |
| between a sponsoring
broker and a client under Section 15-50 of | 23 |
| this Act in which one or more
licensees associated with or | 24 |
| employed by the broker are designated as agent of
the client.
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| "Designated agent" means a sponsored licensee named by a | 26 |
| sponsoring broker as
the legal agent of a client, as provided | 27 |
| for in Section 15-50 of this Act.
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| "Director" means the Director of the Real Estate Division, | 29 |
| OBRE.
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| "Dual agency" means an agency relationship in which a | 31 |
| licensee is
representing both buyer and seller or both landlord | 32 |
| and tenant in the same
transaction. When the agency | 33 |
| relationship is a designated agency, the
question of whether | 34 |
| there is a dual agency shall be determined by the agency
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| relationships of the designated agent of the parties and not of | 36 |
| the sponsoring
broker.
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| "Employee" or other derivative of the word "employee", when | 2 |
| used to refer to,
describe, or delineate the relationship | 3 |
| between a real estate broker and a real
estate salesperson, | 4 |
| another real estate broker, or a leasing agent, shall be
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| construed to include an independent contractor relationship, | 6 |
| provided that a
written agreement exists that clearly | 7 |
| establishes and states the relationship.
All responsibilities | 8 |
| of a broker shall remain.
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| "Escrow moneys" means all moneys, promissory notes or any | 10 |
| other type or
manner of legal tender or financial consideration | 11 |
| deposited with any person for
the benefit of the parties to the | 12 |
| transaction. A transaction exists once an
agreement has been | 13 |
| reached and an accepted real estate contract signed or lease
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| agreed to by the parties. Escrow moneys includes without | 15 |
| limitation earnest
moneys and security deposits, except those | 16 |
| security deposits in which the
person holding the security | 17 |
| deposit is also the sole owner of the property
being leased and | 18 |
| for which the security deposit is being held.
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| "Exclusive brokerage agreement" means a written brokerage | 20 |
| agreement that provides that the sponsoring broker has the sole | 21 |
| right, through one or more sponsored licensees, to act as the | 22 |
| exclusive designated agent or representative of the client and | 23 |
| that meets the requirements of Section 15-75 of this Act.
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| "Inoperative" means a status of licensure where the | 25 |
| licensee holds a current
license under this Act, but the | 26 |
| licensee is prohibited from engaging in
licensed activities | 27 |
| because the licensee is unsponsored or the license of the
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| sponsoring broker with whom the licensee is associated or by | 29 |
| whom he or she is
employed is currently expired, revoked, | 30 |
| suspended, or otherwise rendered
invalid under this Act.
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| "Leasing Agent" means a person who is employed by a real | 32 |
| estate broker to
engage in licensed activities limited to | 33 |
| leasing residential real estate who
has obtained a license as | 34 |
| provided for in Section 5-5 of this Act.
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| "License" means the document issued by OBRE certifying that | 36 |
| the person named
thereon has fulfilled all requirements |
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| prerequisite to licensure under this
Act.
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| "Licensed activities" means those activities listed in the | 3 |
| definition of
"broker" under this Section.
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| "Licensee" means any person, as defined in this Section, | 5 |
| who holds a
valid unexpired license as a real estate broker, | 6 |
| real estate salesperson, or
leasing agent.
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| "Listing presentation" means a communication between a | 8 |
| real estate broker or
salesperson and a consumer in which the | 9 |
| licensee is attempting to secure a
brokerage agreement with the | 10 |
| consumer to market the consumer's real estate for
sale or | 11 |
| lease.
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| "Managing broker" means a broker who has supervisory | 13 |
| responsibilities for
licensees in one or, in the case of a | 14 |
| multi-office company, more than one
office and who has been | 15 |
| appointed as such by the sponsoring broker.
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| "Medium of advertising" means any method of communication | 17 |
| intended to
influence the general public to use or purchase a | 18 |
| particular good or service or
real estate.
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| "Ministerial acts" means those acts that a licensee may | 20 |
| perform for a
consumer that are informative or clerical in | 21 |
| nature and do not rise to the
level of active representation on | 22 |
| behalf of a consumer. Examples of these acts
include without | 23 |
| limitation (i) responding to phone inquiries by consumers as to
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| the availability and pricing of brokerage services, (ii) | 25 |
| responding to phone
inquiries from a consumer concerning the | 26 |
| price or location of property, (iii)
attending an open house | 27 |
| and responding to questions about the property from a
consumer, | 28 |
| (iv) setting an appointment to view property, (v) responding to
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| questions of consumers walking into a licensee's office | 30 |
| concerning brokerage
services offered or particular | 31 |
| properties, (vi) accompanying an appraiser,
inspector, | 32 |
| contractor, or similar third party on a visit to a property, | 33 |
| (vii)
describing a property or the property's condition in | 34 |
| response to a consumer's
inquiry, (viii) completing business or | 35 |
| factual information for a consumer on an
offer or contract to | 36 |
| purchase on behalf of a client, (ix) showing a client
through a |
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| property being sold by an owner on his or her own behalf, or | 2 |
| (x)
referral to another broker or service provider.
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| "OBRE" means the Office of Banks and Real Estate.
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| "Office" means a real estate broker's place of business | 5 |
| where the general
public is invited to transact business and | 6 |
| where records may be maintained and
licenses displayed, whether | 7 |
| or not it is the broker's principal place of
business.
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| "Person" means and includes individuals, entities, | 9 |
| corporations, limited
liability companies, registered limited | 10 |
| liability partnerships, and
partnerships, foreign or domestic, | 11 |
| except that when the context otherwise
requires, the term may | 12 |
| refer to a single individual or other described entity.
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| "Personal assistant" means a licensed or unlicensed person | 14 |
| who has been hired
for the purpose of aiding or assisting a | 15 |
| sponsored licensee in the performance
of the sponsored | 16 |
| licensee's job.
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| "Pocket card" means the card issued by OBRE to signify that | 18 |
| the person named
on the card is currently licensed under this | 19 |
| Act.
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| "Pre-license school" means a school licensed by OBRE | 21 |
| offering courses in
subjects related to real estate | 22 |
| transactions, including the subjects upon
which an applicant is | 23 |
| examined in determining fitness to receive a license.
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| "Pre-renewal period" means the period between the date of | 25 |
| issue of a
currently valid license and the license's expiration | 26 |
| date.
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| "Real estate" means and includes leaseholds as well as any | 28 |
| other interest or
estate in land, whether corporeal, | 29 |
| incorporeal, freehold, or non-freehold,
including timeshare | 30 |
| interests, and whether the real estate is situated in this
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| State or elsewhere.
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| "Real Estate Administration and Disciplinary Board" or | 33 |
| "Board" means the
Real Estate Administration and Disciplinary | 34 |
| Board created by Section 25-10 of
this Act.
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| "Salesperson" means any individual, other than a real | 36 |
| estate broker or
leasing agent, who is employed by a real |
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| estate broker or is associated by
written agreement with a real | 2 |
| estate broker as an independent contractor and
participates in | 3 |
| any activity described in the definition of "broker" under this
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| Section.
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| "Sponsoring broker" means the broker who has issued a | 6 |
| sponsor card to a
licensed salesperson, another licensed | 7 |
| broker, or a leasing agent.
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| "Sponsor card" means the temporary permit issued by the | 9 |
| sponsoring real
estate broker certifying that the real estate | 10 |
| broker, real estate salesperson,
or leasing agent named thereon | 11 |
| is employed by or associated by written
agreement with the | 12 |
| sponsoring real estate broker, as provided for in Section
5-40 | 13 |
| of this Act.
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| (Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00; | 15 |
| 91-603, eff.
1-1-00; 91-702, eff. 5-12-00; 92-217, eff. | 16 |
| 8-2-01.)
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| (225 ILCS 454/5-30)
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| (Section scheduled to be repealed on January 1, 2010)
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| Sec. 5-30. Education requirements to obtain an original | 20 |
| broker or
salesperson
license.
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| (a) All applicants for a broker's license, except | 22 |
| applicants who meet the
criteria set forth in
subsection (c) of | 23 |
| this Section shall (i) give satisfactory evidence of having
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| completed at
least 120 classroom
hours, 45 of which shall be | 25 |
| those hours required to obtain a salesperson's
license plus 15 | 26 |
| hours in
brokerage administration courses, in real estate | 27 |
| courses approved by the
Advisory Council or (ii)
for applicants | 28 |
| who currently hold a valid real estate salesperson's license,
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| give satisfactory evidence
of having completed at least 75 | 30 |
| hours in real estate courses, not including the
courses that | 31 |
| are
required to obtain a salesperson's license, approved by the | 32 |
| Advisory Council.
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| (b) All applicants for a salesperson's license, except | 34 |
| applicants who meet
the criteria set forth in
subsection (c) of | 35 |
| this Section shall give satisfactory evidence that they have
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| completed at least 45 hours of
instruction in real estate | 2 |
| courses approved by the Advisory Council.
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| (c) The requirements specified in subsections (a) and (b) | 4 |
| of this Section do
not apply to applicants who :
(1) are | 5 |
| currently admitted to practice law by the Supreme Court of
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| Illinois
and are
currently in active standing ; or
(2) show | 7 |
| evidence of receiving a baccalaureate degree including courses
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| involving real
estate or related material from a college or | 9 |
| university approved by the
Advisory Council .
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| (d) A minimum of 15 of the required hours of pre-license | 11 |
| education shall be
in the areas of
Article 15 of this Act, | 12 |
| disclosure and environmental issues, or any other
currently | 13 |
| topical areas that are
determined by the Advisory Council.
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| (Source: P.A. 91-245, eff. 12-31-99.)
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| (225 ILCS 454/5-50)
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| (Section scheduled to be repealed on January 1, 2010)
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| Sec. 5-50. Expiration date and renewal period of broker, | 18 |
| salesperson, or
leasing agent license; sponsoring broker;
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| register of licensees; pocket card.
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| (a) The expiration date and renewal period for each license | 21 |
| issued under
this Act shall be set by
rule. Except as otherwise | 22 |
| provided in Section 5-55 of this Act, the holder of
a
license | 23 |
| may renew
the license within 90 days preceding the expiration | 24 |
| date thereof by paying the
fees specified by
rule. Upon written | 25 |
| request from the sponsoring broker, OBRE shall prepare and
mail | 26 |
| to the
sponsoring broker a listing of licensees under this Act | 27 |
| who, according to the
records of OBRE, are
sponsored by that | 28 |
| broker. Every licensee associated with or employed by a
broker | 29 |
| whose license is
revoked, suspended, terminated, or expired | 30 |
| shall be considered as inoperative
until such time as the
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| sponsoring broker's license is reinstated or renewed, or the | 32 |
| licensee changes
employment as set
forth in subsection (c) of | 33 |
| Section 5-40 of this Act.
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| (b) OBRE shall establish and maintain a register of all | 35 |
| persons currently
licensed by the State
and shall issue and |
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| prescribe a form of pocket card. Upon payment by a
licensee of | 2 |
| the appropriate
fee as prescribed by rule for engagement in the | 3 |
| activity for which the licensee
is qualified and holds
a | 4 |
| license for the current period, OBRE shall issue a pocket card | 5 |
| to the
licensee. The pocket card
shall be verification that the | 6 |
| required fee for the current period has been
paid and shall | 7 |
| indicate that
the person named thereon is licensed for the | 8 |
| current renewal period as a
broker, salesperson, or
leasing | 9 |
| agent as the case may be. The pocket card shall further | 10 |
| indicate that
the person named
thereon is authorized by OBRE to | 11 |
| engage in the licensed activity appropriate
for his or her | 12 |
| status
(broker, salesperson, or leasing agent). Each licensee | 13 |
| shall carry on his or
her person his or her
pocket card or, if | 14 |
| such pocket card has not yet been issued, a properly issued
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| sponsor card when
engaging in any licensed activity and shall | 16 |
| display the same on demand.
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| (c) Any person licensed as a broker shall be entitled at | 18 |
| any renewal date to change his or her license status from | 19 |
| broker to salesperson.
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| (Source: P.A. 91-245, eff. 12-31-99.)
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| (225 ILCS 454/5-70)
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| (Section scheduled to be repealed on January 1, 2010)
| 23 |
| Sec. 5-70. Continuing education requirement; broker or | 24 |
| salesperson.
| 25 |
| (a) The requirements of this Section apply to all licensees | 26 |
| who have
had a license for less than 15 years as of January 1, | 27 |
| 1992 .
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| (b) Except as otherwise
provided in this Section, each
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| person who applies for renewal of his or her license as a real
| 30 |
| estate broker or real
estate salesperson must successfully | 31 |
| complete real estate continuing education
courses approved by
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| the Advisory Council at the rate of 6 hours per year or its | 33 |
| equivalent. In addition, beginning with the pre-renewal period | 34 |
| for broker licensees that begins after the effective date of | 35 |
| this amendatory Act of the 93rd General Assembly, to renew a |
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| real estate broker's license, the licensee must successfully | 2 |
| complete a 6-hour broker management continuing education | 3 |
| course approved by OBRE. Successful completion of the course | 4 |
| shall include achieving a passing score as provided by rule on | 5 |
| a test developed and administered in accordance with rules | 6 |
| adopted by the OBRE. Beginning on the first day of the | 7 |
| pre-renewal period for broker licensees that begins after the | 8 |
| effective date of this amendatory Act of the 93rd General | 9 |
| Assembly, the 6-hour broker management continuing education | 10 |
| course must be completed by all persons receiving their initial | 11 |
| broker's license within 180 days after the date of initial | 12 |
| licensure as a broker. No
license may be renewed
except upon | 13 |
| the successful completion of the required courses or their
| 14 |
| equivalent or upon a waiver
of those requirements for good | 15 |
| cause shown as determined by the Commissioner
with the
| 16 |
| recommendation of the Advisory Council.
The requirements of | 17 |
| this Article are applicable to all brokers and salespersons
| 18 |
| except those brokers
and salespersons who, during the | 19 |
| pre-renewal period:
| 20 |
| (1) serve in the armed services of the United States;
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| (2) serve as an elected State or federal official;
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| (3) serve as a full-time employee of OBRE; or
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| (4) are admitted to practice law pursuant to Illinois | 24 |
| Supreme Court rule.
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| (c) A person who is issued an initial license as a real | 26 |
| estate salesperson
less than one year prior
to the expiration | 27 |
| date of that license shall not be required to complete
| 28 |
| continuing education as a
condition of license renewal. A | 29 |
| person who is issued an initial license as a
real estate broker | 30 |
| less
than one year prior to the expiration date of that license | 31 |
| and who has not been
licensed as a real estate
salesperson | 32 |
| during the pre-renewal period shall not be required to complete
| 33 |
| continuing education as
a condition of license renewal. A
| 34 |
| person receiving an initial license as a real estate broker
| 35 |
| during the 90 days before the broker renewal date shall not be
| 36 |
| required to complete the broker management continuing
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| education course provided for in subsection (b) of this
Section | 2 |
| as a condition of initial license renewal.
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| (d) The continuing education requirement for salespersons | 4 |
| and brokers shall
consist of a core
curriculum and an elective | 5 |
| curriculum, to be established by the Advisory
Council. In | 6 |
| meeting the
continuing education requirements of this Act, at | 7 |
| least 3 hours per year or
their equivalent shall
be required to | 8 |
| be completed in the core curriculum.
In establishing the core | 9 |
| curriculum, the Advisory Council shall consider
subjects that | 10 |
| will
educate licensees on recent changes in applicable laws and | 11 |
| new laws and refresh
the licensee on areas
of the license law | 12 |
| and OBRE policy that the Advisory Council deems appropriate,
| 13 |
| and any other
areas that the Advisory Council deems timely and | 14 |
| applicable in order to prevent
violations of this Act
and to | 15 |
| protect the public.
In establishing the elective curriculum, | 16 |
| the Advisory Council shall consider
subjects that cover
the | 17 |
| various aspects of the practice of real estate that are covered | 18 |
| under the
scope of this Act.
However, the elective curriculum | 19 |
| shall not include any offerings referred to in
Section 5-85 of | 20 |
| this Act.
| 21 |
| (e) The subject areas of continuing education courses | 22 |
| approved by the
Advisory Council may
include without limitation | 23 |
| the following:
| 24 |
| (1) license law and escrow;
| 25 |
| (2) antitrust;
| 26 |
| (3) fair housing;
| 27 |
| (4) agency;
| 28 |
| (5) appraisal;
| 29 |
| (6) property management;
| 30 |
| (7) residential brokerage;
| 31 |
| (8) farm property management;
| 32 |
| (9) rights and duties of sellers, buyers, and brokers;
| 33 |
| (10) commercial brokerage and leasing; and
| 34 |
| (11) real estate financing.
| 35 |
| (f) In lieu of credit for those courses listed in | 36 |
| subsection (e) of this
Section, credit may be
earned for |
|
|
|
SB2887 Enrolled |
- 13 - |
LRB093 20864 AMC 46932 b |
|
| 1 |
| serving as a licensed instructor in an approved course of | 2 |
| continuing
education. The
amount of credit earned for teaching | 3 |
| a course shall be the amount of continuing
education credit for
| 4 |
| which the course is approved for licensees taking the course.
| 5 |
| (g) Credit hours may be earned for self-study programs | 6 |
| approved by the
Advisory Council.
| 7 |
| (h) A broker or salesperson may earn credit for a specific | 8 |
| continuing
education course only
once during the prerenewal | 9 |
| period.
| 10 |
| (i) No more than 6 hours of continuing education credit may | 11 |
| be earned in one
calendar day.
| 12 |
| (j) To promote the offering of a uniform and consistent | 13 |
| course content, the OBRE may provide for the development of a | 14 |
| single broker management course to be offered by all continuing | 15 |
| education providers who choose to offer the broker management | 16 |
| continuing education course. The OBRE may contract for the | 17 |
| development of the 6-hour broker management continuing | 18 |
| education course with an outside vendor and, if the course is | 19 |
| developed in this manner, the OBRE shall license the use of | 20 |
| that course to all approved continuing education providers who | 21 |
| wish to provide the course.
| 22 |
| (Source: P.A. 91-245, eff. 12-31-99.)
| 23 |
| (225 ILCS 454/15-75 new) | 24 |
| (Section scheduled to be repealed on January 1, 2010) | 25 |
| Sec. 15-75. Exclusive brokerage agreements. All exclusive
| 26 |
| brokerage agreements must specify that the sponsoring broker, | 27 |
| through one or more sponsored licensees, must provide, at a | 28 |
| minimum, the following services: | 29 |
| (1) accept delivery of and present to the client offers | 30 |
| and counteroffers to buy, sell, or lease the client's
| 31 |
| property or the property the client seeks to purchase or | 32 |
| lease; | 33 |
| (2) assist the client in developing, communicating, | 34 |
| negotiating, and presenting offers, counteroffers, and
| 35 |
| notices that relate to the offers and counteroffers until a |
|
|
|
SB2887 Enrolled |
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LRB093 20864 AMC 46932 b |
|
| 1 |
| lease or purchase agreement is signed and all contingencies
| 2 |
| are satisfied or waived; and | 3 |
| (3) answer the client's questions relating to the | 4 |
| offers, counteroffers, notices, and contingencies.
| 5 |
| (225 ILCS 454/20-20)
| 6 |
| (Section scheduled to be repealed on January 1, 2010)
| 7 |
| Sec. 20-20. Disciplinary actions; causes. OBRE may refuse | 8 |
| to issue or renew a license, may place on probation, suspend,
| 9 |
| or
revoke any
license, or may censure, reprimand, or otherwise | 10 |
| discipline or impose a civil
fine not to exceed
$25,000 upon | 11 |
| any licensee hereunder for any one or any combination of the
| 12 |
| following causes:
| 13 |
| (a) When the applicant or licensee has, by false or | 14 |
| fraudulent
representation,
obtained or sought to obtain a | 15 |
| license.
| 16 |
| (b) When the applicant or licensee has been convicted of | 17 |
| any crime, an
essential element of which is dishonesty or fraud | 18 |
| or larceny, embezzlement,
or obtaining money, property, or | 19 |
| credit by false pretenses or by means of a
confidence
game, has | 20 |
| been convicted in this or another state of a crime that is a | 21 |
| felony
under
the laws of this State, or has been convicted of a | 22 |
| felony in a federal court.
| 23 |
| (c) When the applicant or licensee has been adjudged to be | 24 |
| a person under
legal
disability or subject to involuntary | 25 |
| admission or to meet the standard for
judicial
admission as | 26 |
| provided in the Mental Health and Developmental Disabilities | 27 |
| Code.
| 28 |
| (d) When the licensee performs or attempts to perform any | 29 |
| act as a broker
or
salesperson in a retail sales establishment | 30 |
| from an office, desk, or space that
is not
separated from the | 31 |
| main retail business by a separate and distinct area within
the
| 32 |
| establishment.
| 33 |
| (e) Discipline of a licensee by another state, the District | 34 |
| of Columbia,
a territory,
a foreign nation, a governmental | 35 |
| agency, or any other entity authorized to
impose
discipline if |
|
|
|
SB2887 Enrolled |
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LRB093 20864 AMC 46932 b |
|
| 1 |
| at least one of the grounds for that discipline is the same as | 2 |
| or
the
equivalent of one of the grounds for discipline set | 3 |
| forth in this Act, in which
case the
only issue will be whether | 4 |
| one of the grounds for that discipline is the same
or
| 5 |
| equivalent to one of the grounds for discipline under this Act.
| 6 |
| (f) When the applicant or licensee has engaged in real | 7 |
| estate activity
without a
license or after the licensee's | 8 |
| license was expired or while the license was
inoperative.
| 9 |
| (g) When the applicant or licensee attempts to subvert or | 10 |
| cheat on the Real
Estate License Exam or continuing education | 11 |
| exam or aids and abets an applicant
to
subvert or cheat on the | 12 |
| Real Estate License Exam or continuing education exam
| 13 |
| administered pursuant to this Act.
| 14 |
| (h) When the licensee in performing, attempting to perform, | 15 |
| or pretending to
perform any act as a broker, salesperson, or | 16 |
| leasing agent or when the
licensee in
handling his or her own | 17 |
| property, whether held by deed, option, or otherwise,
is
found
| 18 |
| guilty of:
| 19 |
| (1) Making any substantial misrepresentation or | 20 |
| untruthful advertising.
| 21 |
| (2) Making any false promises of a character likely to | 22 |
| influence,
persuade,
or induce.
| 23 |
| (3) Pursuing a continued and flagrant course of | 24 |
| misrepresentation or the
making
of false promises through | 25 |
| licensees, employees, agents, advertising, or
otherwise.
| 26 |
| (4) Any misleading or untruthful advertising, or using | 27 |
| any trade name or
insignia of membership in any real estate | 28 |
| organization of which the licensee is
not a member.
| 29 |
| (5) Acting for more than one party in a transaction | 30 |
| without providing
written
notice to all parties for whom | 31 |
| the licensee acts.
| 32 |
| (6) Representing or attempting to represent a broker | 33 |
| other than the
sponsoring broker.
| 34 |
| (7) Failure to account for or to remit any moneys or | 35 |
| documents coming into
his or her possession that belong to | 36 |
| others.
|
|
|
|
SB2887 Enrolled |
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LRB093 20864 AMC 46932 b |
|
| 1 |
| (8) Failure to maintain and deposit in a special | 2 |
| account, separate and
apart from
personal and other | 3 |
| business accounts, all escrow moneys belonging to others
| 4 |
| entrusted to a licensee
while acting as a real estate | 5 |
| broker, escrow agent, or temporary custodian of
the funds | 6 |
| of others or
failure to maintain all escrow moneys on | 7 |
| deposit in the account until the
transactions are
| 8 |
| consummated or terminated, except to the extent that the | 9 |
| moneys, or any part
thereof, shall be
disbursed prior to | 10 |
| the consummation or termination in accordance with (i) the
| 11 |
| written direction of
the principals to the transaction or | 12 |
| their duly authorized agents, (ii)
directions providing | 13 |
| for the
release, payment, or distribution of escrow moneys | 14 |
| contained in any written
contract signed by the
principals | 15 |
| to the transaction or their duly authorized agents,
or | 16 |
| (iii)
pursuant to an order of a court of competent
| 17 |
| jurisdiction.
The account
shall be noninterest
bearing, | 18 |
| unless the character of the deposit is such that payment of | 19 |
| interest
thereon is otherwise
required by law or unless the | 20 |
| principals to the transaction specifically
require, in | 21 |
| writing, that the
deposit be placed in an interest bearing | 22 |
| account.
| 23 |
| (9) Failure to make available to the real estate | 24 |
| enforcement personnel of
OBRE
during normal business hours | 25 |
| all escrow records and related documents
maintained in | 26 |
| connection
with the practice of real estate within 24 hours | 27 |
| of a request for those
documents by OBRE personnel.
| 28 |
| (10) Failing to furnish copies upon request of all | 29 |
| documents relating to a
real
estate transaction to all | 30 |
| parties executing them.
| 31 |
| (11) Failure of a sponsoring broker to timely provide | 32 |
| information, sponsor
cards,
or termination of licenses to | 33 |
| OBRE.
| 34 |
| (12) Engaging in dishonorable, unethical, or | 35 |
| unprofessional conduct of a
character
likely to deceive, | 36 |
| defraud, or harm the public.
|
|
|
|
SB2887 Enrolled |
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LRB093 20864 AMC 46932 b |
|
| 1 |
| (13) Commingling the money or property of others with | 2 |
| his or her own.
| 3 |
| (14) Employing any person on a purely temporary or | 4 |
| single deal basis as a
means
of evading the law regarding | 5 |
| payment of commission to nonlicensees on some
contemplated
| 6 |
| transactions.
| 7 |
| (15) Permitting the use of his or her license as a | 8 |
| broker to enable a
salesperson or
unlicensed person to | 9 |
| operate a real estate business without actual
| 10 |
| participation therein and control
thereof by the broker.
| 11 |
| (16) Any other conduct, whether of the same or a | 12 |
| different character from
that
specified in this Section, | 13 |
| that constitutes dishonest dealing.
| 14 |
| (17) Displaying a "for rent" or "for sale" sign on any | 15 |
| property without
the written
consent of an owner or his or | 16 |
| her duly authorized agent or advertising by any
means that | 17 |
| any property is
for sale or for rent without the written | 18 |
| consent of the owner or his or her
authorized agent.
| 19 |
| (18) Failing to provide information requested by OBRE, | 20 |
| within 30 days of
the
request, either as the result of a | 21 |
| formal or informal complaint to OBRE or as a
result of a | 22 |
| random
audit conducted by OBRE, which would indicate a | 23 |
| violation of this Act.
| 24 |
| (19) Advertising by means of a blind advertisement, | 25 |
| except as otherwise
permitted in Section 10-30 of this Act.
| 26 |
| (20) Offering guaranteed sales plans, as defined in | 27 |
| clause (A) of
this subdivision (20), except to
the extent | 28 |
| hereinafter set forth:
| 29 |
| (A) A "guaranteed sales plan" is any real estate | 30 |
| purchase or sales plan
whereby a licensee enters into a | 31 |
| conditional or unconditional written contract
with a | 32 |
| seller by the
terms of which a licensee agrees to | 33 |
| purchase a property of the seller within a
specified | 34 |
| period of time
at a specific price in the event the | 35 |
| property is not sold in accordance with
the terms of a | 36 |
| listing
contract between the sponsoring broker and the |
|
|
|
SB2887 Enrolled |
- 18 - |
LRB093 20864 AMC 46932 b |
|
| 1 |
| seller or on other terms
acceptable to the
seller.
| 2 |
| (B) A licensee offering a guaranteed sales plan | 3 |
| shall provide the
details
and conditions of the plan in | 4 |
| writing to the party to whom the plan is
offered.
| 5 |
| (C) A licensee offering a guaranteed sales plan | 6 |
| shall provide to the
party
to whom the plan is offered | 7 |
| evidence of sufficient financial resources to
satisfy | 8 |
| the commitment to
purchase undertaken by the broker in | 9 |
| the plan.
| 10 |
| (D) Any licensee offering a guaranteed sales plan | 11 |
| shall undertake to
market the property of the seller | 12 |
| subject to the plan in the same manner in
which the | 13 |
| broker would
market any other property, unless the | 14 |
| agreement with the seller provides
otherwise.
| 15 |
| (E) Any licensee who fails to perform on a | 16 |
| guaranteed sales plan in
strict accordance with its | 17 |
| terms shall be subject to all the penalties provided
in | 18 |
| this Act for
violations thereof and, in addition, shall | 19 |
| be subject to a civil fine payable
to the party injured | 20 |
| by the
default in an amount of up to $25,000.
| 21 |
| (21) Influencing or attempting to influence, by any | 22 |
| words or acts, a
prospective
seller, purchaser, occupant, | 23 |
| landlord, or tenant of real estate, in connection
with | 24 |
| viewing, buying, or
leasing real estate, so as to promote | 25 |
| or tend to promote the continuance
or maintenance of
| 26 |
| racially and religiously segregated housing or so as to | 27 |
| retard, obstruct, or
discourage racially
integrated | 28 |
| housing on or in any street, block, neighborhood, or | 29 |
| community.
| 30 |
| (22) Engaging in any act that constitutes a violation | 31 |
| of any provision of
Article 3 of the Illinois Human Rights | 32 |
| Act, whether or not a complaint has
been filed with or
| 33 |
| adjudicated by the Human Rights Commission.
| 34 |
| (23) Inducing any party to a contract of sale or lease | 35 |
| or brokerage
agreement to
break the contract of sale or | 36 |
| lease or brokerage agreement for the purpose of
|
|
|
|
SB2887 Enrolled |
- 19 - |
LRB093 20864 AMC 46932 b |
|
| 1 |
| substituting, in lieu
thereof, a new contract for sale or | 2 |
| lease or brokerage agreement with a third
party.
| 3 |
| (24) Negotiating a sale, exchange, or lease of real | 4 |
| estate directly with
any person
if the licensee knows that | 5 |
| the person has a written exclusive brokerage
agreement with | 6 |
| another
broker, unless specifically authorized by that | 7 |
| broker.
| 8 |
| (25) When a licensee is also an attorney, acting as the | 9 |
| attorney for
either the
buyer or the seller in the same | 10 |
| transaction in which the licensee is acting or
has acted as | 11 |
| a broker
or salesperson.
| 12 |
| (26) Advertising or offering merchandise or services | 13 |
| as free if any
conditions or
obligations necessary for | 14 |
| receiving the merchandise or services are not
disclosed in | 15 |
| the same
advertisement or offer. These conditions or | 16 |
| obligations include without
limitation the
requirement | 17 |
| that the recipient attend a promotional activity or visit a | 18 |
| real
estate site. As used in this
subdivision (26), "free" | 19 |
| includes terms such as "award", "prize", "no charge",
"free | 20 |
| of charge",
"without charge", and similar words or phrases | 21 |
| that reasonably lead a person to
believe that he or she
may | 22 |
| receive or has been selected to receive something of value, | 23 |
| without any
conditions or
obligations on the part of the | 24 |
| recipient.
| 25 |
| (27) Disregarding or violating any provision of the | 26 |
| Land Sales
Registration Act of 1989, the Illinois Real | 27 |
| Estate
Time-Share Act, or the published rules promulgated | 28 |
| by OBRE to enforce
those Acts.
| 29 |
| (28) Violating the terms of a disciplinary order
issued | 30 |
| by OBRE.
| 31 |
| (29) Paying compensation in violation of Article 10 of | 32 |
| this Act.
| 33 |
| (30) Requiring a party to a transaction who is not a | 34 |
| client of the
licensee
to allow the licensee to retain a | 35 |
| portion of the escrow moneys for payment of
the licensee's | 36 |
| commission or expenses as a condition for release of the |
|
|
|
SB2887 Enrolled |
- 20 - |
LRB093 20864 AMC 46932 b |
|
| 1 |
| escrow
moneys to that party.
| 2 |
| (31) Disregarding or violating any provision of this | 3 |
| Act or the published
rules
promulgated by OBRE to enforce | 4 |
| this Act or aiding or abetting any individual,
partnership, | 5 |
| registered limited liability partnership, limited | 6 |
| liability
company, or corporation in
disregarding any | 7 |
| provision of this Act or the published rules promulgated by
| 8 |
| OBRE
to enforce this Act.
| 9 |
| (32) Failing to provide the minimum services required | 10 |
| by Section 15-75 of this Act when acting under an exclusive | 11 |
| brokerage agreement.
| 12 |
| (Source: P.A. 91-245, eff. 12-31-99.)
| 13 |
| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.
|
|