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90_SB0897sam001
LRB9003359DPcwam01
1 AMENDMENT TO SENATE BILL 897
2 AMENDMENT NO. . Amend Senate Bill 897 by replacing
3 the title with the following:
4 "AN ACT to amend the Real Estate License Act of 1983 by
5 changing Section 18."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Real Estate License Act of 1983 is
9 amended by changing Section 18 as follows:
10 (225 ILCS 455/18) (from Ch. 111, par. 5818)
11 Sec. 18. The Office of Banks and Real Estate may refuse
12 to issue or renew a license, may place on probation, suspend
13 or revoke any license, or may reprimand or impose a civil
14 penalty not to exceed $10,000 upon any licensee hereunder for
15 any one or any combination of the following causes:
16 (a) Where the applicant or licensee has, by false or
17 fraudulent representation, obtained or sought to obtain a
18 license.
19 (b) Where the applicant or licensee has been convicted
20 of any crime, an essential element of which is dishonesty or
21 fraud or larceny, embezzlement, obtaining money, property or
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1 credit by false pretenses or by means of a confidence game,
2 has been convicted in this or another state of a crime which
3 is a felony under the laws of this State or has been
4 convicted of a felony in a federal court.
5 (c) Where the applicant or licensee has been adjudged to
6 be a person under legal disability or subject to involuntary
7 admission or to meet the standard for judicial admission as
8 provided in the Mental Health and Developmental Disabilities
9 Code, as now or hereafter amended.
10 (d) Where the licensee performs or attempts to perform
11 any act as a broker or salesperson in a retail sales
12 establishment, from an office, desk or space that is not
13 separated from the main retail business by a separate and
14 distinct area within such establishment.
15 (e) Discipline by another state, the District of
16 Columbia, territory, or foreign nation of a licensee if at
17 least one of the grounds for that discipline is the same as
18 or the equivalent of one of the grounds for discipline set
19 forth in this Act.
20 (f) Where the applicant or licensee has engaged in real
21 estate activity without a license, or after the licensee's
22 license was expired, or while the license was inoperative.
23 (g) Where the applicant or licensee attempts to subvert
24 or cheat on the Real Estate License Exam, or aids and abets
25 an applicant to subvert or cheat on the Real Estate License
26 Exam administered pursuant to this Act.
27 (h) Where the licensee in performing or attempting to
28 perform or pretending to perform any act as a broker or
29 salesperson, or where such licensee, in handling his own
30 property, whether held by deed, option, or otherwise, is
31 found guilty of:
32 1. Making any substantial misrepresentation, or
33 untruthful advertising;
34 2. Making any false promises of a character likely
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1 to influence, persuade, or induce;
2 3. Pursuing a continued and flagrant course of
3 misrepresentation or the making of false promises through
4 agents, salespersons or advertising or otherwise;
5 4. Any misleading or untruthful advertising, or
6 using any trade name or insignia of membership in any
7 real estate organization of which the licensee is not a
8 member;
9 5. Acting for more than one party in a transaction
10 without providing written notice to all parties for whom
11 the licensee acts;
12 6. Representing or attempting to represent a broker
13 other than the employer;
14 7. Failure to account for or to remit any moneys or
15 documents coming into their possession which belong to
16 others;
17 8. Failure to maintain and deposit in a special
18 account, separate and apart from personal and other
19 business accounts, all escrow monies belonging to others
20 entrusted to a licensee while acting as a real estate
21 broker, escrow agent, or temporary custodian of the funds
22 of others, or failure to maintain all escrow monies on
23 deposit in such account until the transactions are
24 consummated or terminated, except to the extent that such
25 monies, or any part thereof, shall be disbursed prior to
26 the consummation or termination in accordance with (i)
27 the written direction of the principals to the
28 transaction or their duly authorized agents, or (ii)
29 directions providing for the release, payment, or
30 distribution of escrow monies contained in any written
31 contract signed by the principals to the transaction or
32 their duly authorized agents. Such account shall be
33 noninterest bearing, unless the character of the deposit
34 is such that payment of interest thereon is otherwise
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1 required by law or unless the principals to the
2 transaction specifically require, in writing, that the
3 deposit be placed in an interest bearing account;
4 9. Failure to make available to the real estate
5 enforcement personnel of the Office of Banks and Real
6 Estate during normal business hours all escrow records
7 and related documents maintained in connection with the
8 practice of real estate;
9 10. Failing to furnish copies upon request of all
10 documents relating to a real estate transaction to all
11 parties executing them;
12 11. Paying a commission or valuable consideration
13 to any person for acts or services performed in violation
14 of this Act;
15 12. Having demonstrated unworthiness or
16 incompetency to act as a broker or salesperson in such
17 manner as to endanger the interest of the public;
18 13. Commingling the money or property of others
19 with his own;
20 14. Employing any person on a purely temporary or
21 single deal basis as a means of evading the law regarding
22 payment of commission to nonlicensees on some
23 contemplated transactions;
24 15. Permitting the use of his license as a broker
25 to enable a salesperson or unlicensed person to operate a
26 real estate business without actual participation therein
27 and control thereof by the broker;
28 16. Any other conduct, whether of the same or a
29 different character from that specified in this Section
30 which constitutes dishonest dealing;
31 17. Displaying a "for rent" or "for sale" sign on
32 any property without the written consent of an owner or
33 his duly authorized agent, or advertising by any means
34 that any property is for sale or for rent without the
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1 written consent of the owner or his authorized agent;
2 18. Failing to provide information requested by the
3 Office of Banks and Real Estate, within 30 days of the
4 request, either as the result of a formal or informal
5 complaint to the Office of Banks and Real Estate or as a
6 result of a random audit conducted by the Office of Banks
7 and Real Estate, which would indicate a violation of this
8 Act;
9 19. Disregarding or violating any provision of this
10 Act, or the published rules or regulations promulgated by
11 the Office of Banks and Real Estate to enforce this Act,
12 or aiding or abetting any individual, partnership,
13 limited liability company, or corporation in disregarding
14 any provision of this Act, or the published rules or
15 regulations promulgated by the Office of Banks and Real
16 Estate to enforce this Act;
17 20. Advertising any property for sale or
18 advertising any transaction of any kind or character
19 relating to the sale of property by whatsoever means,
20 without clearly disclosing in or on such advertising one
21 of the following: the name of the firm with which the
22 licensee is associated, if a sole broker, evidence of the
23 broker's occupation, or a name with respect to which the
24 broker has complied with the requirements of "An Act in
25 relation to the use of an assumed name in the conduct or
26 transaction of business in this State", approved July 17,
27 1941, as amended, whether such advertising is done by the
28 broker or by any salesperson or broker employed by the
29 broker;
30 21. "Offering guaranteed sales plans" as defined in
31 subparagraph (A) except to the extent hereinafter set
32 forth:
33 (A) A "guaranteed sales plan" is any real
34 estate purchase or sales plan whereby a broker
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1 enters into a conditional or unconditional written
2 contract with a seller by the terms of which a
3 broker agrees to purchase a property of the seller
4 within a specified period of time at a specific
5 price in the event the property is not sold in
6 accordance with the terms of a listing contract
7 between the broker and the seller or on other terms
8 acceptable to the seller;
9 (B) A broker offering a "guaranteed sales
10 plan" shall provide the details and conditions of
11 such plan in writing to the party to whom the plan
12 is offered;
13 (C) A broker offering a "guaranteed sales
14 plan" shall provide to the party to whom the plan is
15 offered, evidence of sufficient financial resources
16 to satisfy the commitment to purchase undertaken by
17 the broker in the plan;
18 (D) Any broker offering a "guaranteed sales
19 plan" shall undertake to market the property of the
20 seller subject to the plan in the same manner in
21 which the broker would market any other property,
22 unless such agreement with the seller provides
23 otherwise;
24 (E) Any broker who fails to perform on a
25 "guaranteed sales plan" in strict accordance with
26 its terms shall be subject to all the penalties
27 provided in this Act for violations thereof, and, in
28 addition, shall be subject to a civil penalty
29 payable to the party injured by the default in an
30 amount of up to $10,000.
31 22. Influencing or attempting to influence, by any
32 words or acts a prospective seller, purchaser, occupant,
33 landlord or tenant of real estate, in connection with
34 viewing, buying or leasing of real estate, so as to
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1 promote, or tend to promote, the continuance or
2 maintenance of racially and religiously segregated
3 housing, or so as to retard, obstruct or discourage
4 racially integrated housing on or in any street, block,
5 neighborhood or community;
6 23. Engaging in any act which constitutes a
7 violation of Section 3-102, 3-103, 3-104 or 3-105 of the
8 Illinois Human Rights Act, whether or not a complaint has
9 been filed with or adjudicated by the Human Rights
10 Commission;
11 24. Inducing any party to a contract of sale or
12 listing agreement to break such a contract of sale or
13 listing agreement for the purpose of substituting, in
14 lieu thereof, a new contract for sale or listing
15 agreement with a third party.
16 25. Negotiating a sale, exchange or lease of real
17 property directly with an owner or lessor without
18 authority from the listing broker if the licensee knows
19 that the owner or lessor has a written exclusive listing
20 agreement covering the property with another broker.
21 26. Where a licensee is also an attorney, acting as
22 the attorney for either the buyer or the seller in the
23 same transaction in which such licensee is acting or has
24 acted as a broker or salesperson.
25 27. Advertising or offering merchandise or services
26 as free if any conditions or obligations necessary for
27 receiving such merchandise or services are not disclosed
28 in the same advertisement or offer. Such conditions or
29 obligations include, but are not limited to, the
30 requirement that the recipient attend a promotional
31 activity or visit a real estate site. As used in this
32 paragraph 27, "free" includes terms such as "award",
33 "prize", "no charge," "free of charge," "without charge"
34 and similar words or phrases which reasonably lead a
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1 person to believe that he may receive, or has been
2 selected to receive, something of value, without any
3 conditions or obligations on the part of the recipient.
4 28. Disregarding or violating any provision of the
5 Illinois Real Estate Time-Share Act, enacted by the 84th
6 General Assembly, or the published rules or regulations
7 promulgated by the Office of Banks and Real Estate to
8 enforce that Act.
9 29. A finding that the licensee has violated the
10 terms of the disciplinary order issued by the Office of
11 Banks and Real Estate.
12 30. Paying fees or commissions directly to a
13 licensee employed by another broker.
14 31. Requiring a party to a transaction who is not a
15 client of the licensee, as defined in Article 4, to allow
16 the licensee to retain a portion of the escrow monies for
17 payment of the licensee's commission or expenses as a
18 condition for release of the escrow monies to that party.
19 (Source: P.A. 88-683, eff. 1-24-95; 89-508, eff. 7-3-96.).
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.".