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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
90_SB0897enr
225 ILCS 455/18.1 from Ch. 111, par. 5818.1
Amends the Real Estate License Act of 1983 to add a
caption.
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1 AN ACT to amend the Real Estate License Act of 1983 by
2 changing Section 18.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Real Estate License Act of 1983 is
6 amended by changing Section 18 as follows:
7 (225 ILCS 455/18) (from Ch. 111, par. 5818)
8 Sec. 18. The Office of Banks and Real Estate may refuse
9 to issue or renew a license, may place on probation, suspend
10 or revoke any license, or may reprimand or impose a civil
11 penalty not to exceed $10,000 upon any licensee hereunder for
12 any one or any combination of the following causes:
13 (a) Where the applicant or licensee has, by false or
14 fraudulent representation, obtained or sought to obtain a
15 license.
16 (b) Where the applicant or licensee has been convicted
17 of any crime, an essential element of which is dishonesty or
18 fraud or larceny, embezzlement, obtaining money, property or
19 credit by false pretenses or by means of a confidence game,
20 has been convicted in this or another state of a crime which
21 is a felony under the laws of this State or has been
22 convicted of a felony in a federal court.
23 (c) Where the applicant or licensee has been adjudged to
24 be 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, as now or hereafter amended.
28 (d) Where the licensee performs or attempts to perform
29 any act as a broker or salesperson in a retail sales
30 establishment, from an office, desk or space that is not
31 separated from the main retail business by a separate and
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1 distinct area within such establishment.
2 (e) Discipline by another state, the District of
3 Columbia, territory, or foreign nation of a licensee if at
4 least one of the grounds for that discipline is the same as
5 or the equivalent of one of the grounds for discipline set
6 forth in this Act.
7 (f) Where the applicant or licensee has engaged in real
8 estate activity without a license, or after the licensee's
9 license was expired, or while the license was inoperative.
10 (g) Where the applicant or licensee attempts to subvert
11 or cheat on the Real Estate License Exam, or aids and abets
12 an applicant to subvert or cheat on the Real Estate License
13 Exam administered pursuant to this Act.
14 (h) Where the licensee in performing or attempting to
15 perform or pretending to perform any act as a broker or
16 salesperson, or where such licensee, in handling his own
17 property, whether held by deed, option, or otherwise, is
18 found guilty of:
19 1. Making any substantial misrepresentation, or
20 untruthful advertising;
21 2. Making any false promises of a character likely
22 to influence, persuade, or induce;
23 3. Pursuing a continued and flagrant course of
24 misrepresentation or the making of false promises through
25 agents, salespersons or advertising or otherwise;
26 4. Any misleading or untruthful advertising, or
27 using any trade name or insignia of membership in any
28 real estate organization of which the licensee is not a
29 member;
30 5. Acting for more than one party in a transaction
31 without providing written notice to all parties for whom
32 the licensee acts;
33 6. Representing or attempting to represent a broker
34 other than the employer;
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1 7. Failure to account for or to remit any moneys or
2 documents coming into their possession which belong to
3 others;
4 8. Failure to maintain and deposit in a special
5 account, separate and apart from personal and other
6 business accounts, all escrow monies belonging to others
7 entrusted to a licensee while acting as a real estate
8 broker, escrow agent, or temporary custodian of the funds
9 of others, or failure to maintain all escrow monies on
10 deposit in such account until the transactions are
11 consummated or terminated, except to the extent that such
12 monies, or any part thereof, shall be disbursed prior to
13 the consummation or termination in accordance with (i)
14 the written direction of the principals to the
15 transaction or their duly authorized agents, or (ii)
16 directions providing for the release, payment, or
17 distribution of escrow monies contained in any written
18 contract signed by the principals to the transaction or
19 their duly authorized agents. Such account shall be
20 noninterest bearing, unless the character of the deposit
21 is such that payment of interest thereon is otherwise
22 required by law or unless the principals to the
23 transaction specifically require, in writing, that the
24 deposit be placed in an interest bearing account;
25 9. Failure to make available to the real estate
26 enforcement personnel of the Office of Banks and Real
27 Estate during normal business hours all escrow records
28 and related documents maintained in connection with the
29 practice of real estate;
30 10. Failing to furnish copies upon request of all
31 documents relating to a real estate transaction to all
32 parties executing them;
33 11. Paying a commission or valuable consideration
34 to any person for acts or services performed in violation
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1 of this Act;
2 12. Having demonstrated unworthiness or
3 incompetency to act as a broker or salesperson in such
4 manner as to endanger the interest of the public;
5 13. Commingling the money or property of others
6 with his own;
7 14. Employing any person on a purely temporary or
8 single deal basis as a means of evading the law regarding
9 payment of commission to nonlicensees on some
10 contemplated transactions;
11 15. Permitting the use of his license as a broker
12 to enable a salesperson or unlicensed person to operate a
13 real estate business without actual participation therein
14 and control thereof by the broker;
15 16. Any other conduct, whether of the same or a
16 different character from that specified in this Section
17 which constitutes dishonest dealing;
18 17. Displaying a "for rent" or "for sale" sign on
19 any property without the written consent of an owner or
20 his duly authorized agent, or advertising by any means
21 that any property is for sale or for rent without the
22 written consent of the owner or his authorized agent;
23 18. Failing to provide information requested by the
24 Office of Banks and Real Estate, within 30 days of the
25 request, either as the result of a formal or informal
26 complaint to the Office of Banks and Real Estate or as a
27 result of a random audit conducted by the Office of Banks
28 and Real Estate, which would indicate a violation of this
29 Act;
30 19. Disregarding or violating any provision of this
31 Act, or the published rules or regulations promulgated by
32 the Office of Banks and Real Estate to enforce this Act,
33 or aiding or abetting any individual, partnership,
34 limited liability company, or corporation in disregarding
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1 any provision of this Act, or the published rules or
2 regulations promulgated by the Office of Banks and Real
3 Estate to enforce this Act;
4 20. Advertising any property for sale or
5 advertising any transaction of any kind or character
6 relating to the sale of property by whatsoever means,
7 without clearly disclosing in or on such advertising one
8 of the following: the name of the firm with which the
9 licensee is associated, if a sole broker, evidence of the
10 broker's occupation, or a name with respect to which the
11 broker has complied with the requirements of "An Act in
12 relation to the use of an assumed name in the conduct or
13 transaction of business in this State", approved July 17,
14 1941, as amended, whether such advertising is done by the
15 broker or by any salesperson or broker employed by the
16 broker;
17 21. "Offering guaranteed sales plans" as defined in
18 subparagraph (A) except to the extent hereinafter set
19 forth:
20 (A) A "guaranteed sales plan" is any real
21 estate purchase or sales plan whereby a broker
22 enters into a conditional or unconditional written
23 contract with a seller by the terms of which a
24 broker agrees to purchase a property of the seller
25 within a specified period of time at a specific
26 price in the event the property is not sold in
27 accordance with the terms of a listing contract
28 between the broker and the seller or on other terms
29 acceptable to the seller;
30 (B) A broker offering a "guaranteed sales
31 plan" shall provide the details and conditions of
32 such plan in writing to the party to whom the plan
33 is offered;
34 (C) A broker offering a "guaranteed sales
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1 plan" shall provide to the party to whom the plan is
2 offered, evidence of sufficient financial resources
3 to satisfy the commitment to purchase undertaken by
4 the broker in the plan;
5 (D) Any broker offering a "guaranteed sales
6 plan" shall undertake to market the property of the
7 seller subject to the plan in the same manner in
8 which the broker would market any other property,
9 unless such agreement with the seller provides
10 otherwise;
11 (E) Any broker who fails to perform on a
12 "guaranteed sales plan" in strict accordance with
13 its terms shall be subject to all the penalties
14 provided in this Act for violations thereof, and, in
15 addition, shall be subject to a civil penalty
16 payable to the party injured by the default in an
17 amount of up to $10,000.
18 22. Influencing or attempting to influence, by any
19 words or acts a prospective seller, purchaser, occupant,
20 landlord or tenant of real estate, in connection with
21 viewing, buying or leasing of real estate, so as to
22 promote, or tend to promote, the continuance or
23 maintenance of racially and religiously segregated
24 housing, or so as to retard, obstruct or discourage
25 racially integrated housing on or in any street, block,
26 neighborhood or community;
27 23. Engaging in any act which constitutes a
28 violation of Section 3-102, 3-103, 3-104 or 3-105 of the
29 Illinois Human Rights Act, whether or not a complaint has
30 been filed with or adjudicated by the Human Rights
31 Commission;
32 24. Inducing any party to a contract of sale or
33 listing agreement to break such a contract of sale or
34 listing agreement for the purpose of substituting, in
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1 lieu thereof, a new contract for sale or listing
2 agreement with a third party.
3 25. Negotiating a sale, exchange or lease of real
4 property directly with an owner or lessor without
5 authority from the listing broker if the licensee knows
6 that the owner or lessor has a written exclusive listing
7 agreement covering the property with another broker.
8 26. Where a licensee is also an attorney, acting as
9 the attorney for either the buyer or the seller in the
10 same transaction in which such licensee is acting or has
11 acted as a broker or salesperson.
12 27. Advertising or offering merchandise or services
13 as free if any conditions or obligations necessary for
14 receiving such merchandise or services are not disclosed
15 in the same advertisement or offer. Such conditions or
16 obligations include, but are not limited to, the
17 requirement that the recipient attend a promotional
18 activity or visit a real estate site. As used in this
19 paragraph 27, "free" includes terms such as "award",
20 "prize", "no charge," "free of charge," "without charge"
21 and similar words or phrases which reasonably lead a
22 person to believe that he may receive, or has been
23 selected to receive, something of value, without any
24 conditions or obligations on the part of the recipient.
25 28. Disregarding or violating any provision of the
26 Illinois Real Estate Time-Share Act, enacted by the 84th
27 General Assembly, or the published rules or regulations
28 promulgated by the Office of Banks and Real Estate to
29 enforce that Act.
30 29. A finding that the licensee has violated the
31 terms of the disciplinary order issued by the Office of
32 Banks and Real Estate.
33 30. Paying fees or commissions directly to a
34 licensee employed by another broker.
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1 31. Requiring a party to a transaction who is not a
2 client of the licensee, as defined in Article 4, to allow
3 the licensee to retain a portion of the escrow monies for
4 payment of the licensee's commission or expenses as a
5 condition for release of the escrow monies to that party.
6 (Source: P.A. 88-683, eff. 1-24-95; 89-508, eff. 7-3-96.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.