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91_SB0239sam001
LRB9102225ACtmam02
1 AMENDMENT TO SENATE BILL 239
2 AMENDMENT NO. . Amend Senate Bill 239 by replacing
3 the title with the following:
4 "AN ACT to amend the Real Estate License Act of 2000 by
5 changing Sections 1-10 and 5-60."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Real Estate License Act of 2000 is
9 amended by changing Sections 1-10 and 5-60 as follows:
10 (225 ILCS 454/1-10)
11 Sec. 1-10. Definitions. In this Act, unless the context
12 otherwise requires:
13 "Act" means the Real Estate License Act of 2000 1999.
14 "Advisory Council" means the Real Estate Education
15 Advisory Council created under Section 30-10 of this Act.
16 "Agency" means a relationship in which a real estate
17 broker or licensee, whether directly or through an affiliated
18 licensee, represents a consumer by the consumer's consent,
19 whether express or implied, in a real property transaction.
20 "Applicant" means any person, as defined in this Section,
21 who applies to OBRE for a valid license as a real estate
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1 broker, real estate salesperson, or leasing agent.
2 "Blind advertisement" means any real estate advertisement
3 that does not include the sponsoring broker's business name
4 and that is used by any licensee regarding the sale or lease
5 of real estate, including his or her own, licensed
6 activities, or the hiring of any licensee under this Act.
7 The broker's business name in the case of a franchise shall
8 include the franchise affiliation as well as the name of the
9 individual firm.
10 "Board" means the Real Estate Administration and
11 Disciplinary Board of OBRE.
12 "Branch office" means a sponsoring broker's office other
13 than the sponsoring broker's principal office.
14 "Broker" means an individual, partnership, limited
15 liability company, corporation, or registered limited
16 liability partnership other than a real estate salesperson or
17 leasing agent who for another and for compensation either
18 directly or indirectly:
19 (1) Sells, exchanges, purchases, rents, or leases
20 real estate.
21 (2) Offers to sell, exchange, purchase, rent, or
22 lease real estate.
23 (3) Negotiates, offers, attempts, or agrees to
24 negotiate the sale, exchange, purchase, rental, or
25 leasing of real estate.
26 (4) Lists, offers, attempts, or agrees to list real
27 estate for sale, lease, or exchange.
28 (5) Buys, sells, offers to buy or sell, or
29 otherwise deals in options on real estate or improvements
30 thereon.
31 (6) Supervises the collection, offer, attempt, or
32 agreement to collect rent for the use of real estate.
33 (7) Advertises or represents himself or herself as
34 being engaged in the business of buying, selling,
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1 exchanging, renting, or leasing real estate.
2 (8) Assists or directs in procuring or referring of
3 prospects, intended to result in the sale, exchange,
4 lease, or rental of real estate.
5 (9) Assists or directs in the negotiation of any
6 transaction intended to result in the sale, exchange,
7 lease, or rental of real estate.
8 (10) Opens real estate to the public for marketing
9 purposes.
10 (11) Sells, leases, or offers for sale or lease
11 real estate at auction.
12 "Brokerage agreement" means a written or oral agreement
13 between a sponsoring broker and a consumer for licensed
14 activities to be provided to a consumer in return for
15 compensation or the right to receive compensation from
16 another. Brokerage agreements may constitute either a
17 bilateral or a unilateral agreement between the broker and
18 the broker's client depending upon the content of the
19 brokerage agreement. All exclusive brokerage agreements
20 shall be in writing.
21 "Client" means a person who is being represented by a
22 licensee.
23 "Commissioner" means the Commissioner of Banks and Real
24 Estate or a person authorized by the Commissioner, the Office
25 of Banks and Real Estate Act, or this Act to act in the
26 Commissioner's stead.
27 "Compensation" means the valuable consideration given by
28 one person or entity to another person or entity in exchange
29 for the performance of some activity or service.
30 Compensation shall include the transfer of valuable
31 consideration, including without limitation the following:
32 (1) commissions;
33 (2) referral fees;
34 (3) bonuses;
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1 (4) prizes;
2 (5) merchandise;
3 (6) finder fees;
4 (7) performance of services;
5 (8) coupons or gift certificates;
6 (9) discounts;
7 (10) rebates;
8 (11) a chance to win a raffle, drawing, lottery, or
9 similar game of chance not prohibited by any other law or
10 statute;
11 (12) retainer fee; or
12 (13) salary.
13 "Confidential information" means information obtained by
14 a licensee from a client during the term of a brokerage
15 agreement that (i) was made confidential by the written
16 request or written instruction of the client, (ii) deals with
17 the negotiating position of the client, or (iii) is
18 information the disclosure of which could materially harm the
19 negotiating position of the client, unless at any time:
20 (1) the client permits the disclosure of
21 information given by that client by word or conduct;
22 (2) the disclosure is required by law; or
23 (3) the information becomes public from a source
24 other than the licensee.
25 "Confidential information" shall not be considered to
26 include material information about the physical condition of
27 the property.
28 "Consumer" means a person or entity seeking or receiving
29 licensed activities.
30 "Continuing education school" means any person licensed
31 by OBRE as a school for continuing education in accordance
32 with Section 30-15 of this Act.
33 "Credit hour" means 50 minutes of classroom instruction
34 in course work that meets the requirements set forth in rules
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1 adopted by OBRE.
2 "Customer" means a consumer who is not being represented
3 by the licensee but for whom the licensee is performing
4 ministerial acts.
5 "Designated agency" means a contractual relationship
6 between a sponsoring broker and a client under Section 15-50
7 of this Act in which one or more licensees associated with or
8 employed by the broker are designated as agent of the client.
9 "Designated agent" means a sponsored licensee named by a
10 sponsoring broker as the legal agent of a client, as provided
11 for in Section 15-50 of this Act.
12 "Director" means the Director of the Real Estate
13 Division, OBRE.
14 "Dual agency" means an agency relationship in which a
15 licensee is representing both buyer and seller or both
16 landlord and tenant in the same transaction. When the agency
17 relationship is a designated agency, the question of whether
18 there is a dual agency shall be determined by the agency
19 relationships of the designated agent of the parties and not
20 of the sponsoring broker.
21 "Employee" or other derivative of the word "employee",
22 when used to refer to, describe, or delineate the
23 relationship between a real estate broker and a real estate
24 salesperson, another real estate broker, or a leasing agent,
25 shall be construed to include an independent contractor
26 relationship, provided that a written agreement exists that
27 clearly establishes and states the relationship. All
28 responsibilities of a broker shall remain.
29 "Escrow moneys" means all moneys, promissory notes or any
30 other type or manner of legal tender or financial
31 consideration deposited with any person for the benefit of
32 the parties to the transaction. A transaction exists once an
33 agreement has been reached and an accepted real estate
34 contract signed or lease agreed to by the parties. Escrow
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1 moneys includes without limitation earnest moneys and
2 security deposits, except those security deposits in which
3 the person holding the security deposit is also the sole
4 owner of the property being leased and for which the security
5 deposit is being held.
6 "Inoperative" means a status of licensure where the
7 licensee holds a current license under this Act, but the
8 licensee is prohibited from engaging in licensed activities
9 because the licensee is unsponsored or the license of the
10 sponsoring broker with whom the licensee is associated or by
11 whom he or she is employed is currently expired, revoked,
12 suspended, or otherwise rendered invalid under this Act.
13 "Leasing Agent" means a person who is employed by a real
14 estate broker to engage in licensed activities limited to
15 leasing residential real estate who has obtained a license as
16 provided for in Section 5-5 of this Act.
17 "License" means the document issued by OBRE certifying
18 that the person named thereon has fulfilled all requirements
19 prerequisite to licensure under this Act.
20 "Licensed activities" means those activities listed in
21 the definition of "broker" under this Section.
22 "Licensee" means any person, as defined in this Section,
23 who holds a valid unexpired license as a real estate broker,
24 real estate salesperson, or leasing agent.
25 "Listing presentation" means a communication between a
26 real estate broker or salesperson and a consumer in which the
27 licensee is attempting to secure a brokerage agreement with
28 the consumer to market the consumer's real estate for sale or
29 lease.
30 "Managing broker" means a broker who has supervisory
31 responsibilities for licensees in one or, in the case of a
32 multi-office company, more than one office and who has been
33 appointed as such by the sponsoring broker of the real estate
34 firm.
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1 "Medium of advertising" means any method of communication
2 intended to influence the general public to use or purchase a
3 particular good or service or real estate.
4 "Ministerial acts" means those acts that a licensee may
5 perform for a consumer that are informative or clerical in
6 nature and do not rise to the level of active representation
7 on behalf of a consumer. Examples of these acts include
8 without limitation (i) responding to phone inquiries by
9 consumers as to the availability and pricing of brokerage
10 services, (ii) responding to phone inquiries from a consumer
11 concerning the price or location of property, (iii) attending
12 an open house and responding to questions about the property
13 from a consumer, (iv) setting an appointment to view
14 property, (v) responding to questions of consumers walking
15 into a licensee's office concerning brokerage services
16 offered or particular properties, (vi) accompanying an
17 appraiser, inspector, contractor, or similar third party on a
18 visit to a property, (vii) describing a property or the
19 property's condition in response to a consumer's inquiry,
20 (viii) completing business or factual information for a
21 consumer on an offer or contract to purchase on behalf of a
22 client, (ix) showing a client through a property being sold
23 by an owner on his or her own behalf, or (x) referral to
24 another broker or service provider.
25 "OBRE" means the Office of Banks and Real Estate.
26 "Office" means a real estate broker's place of business
27 where the general public is invited to transact business and
28 where records may be maintained and licenses displayed,
29 whether or not it is the broker's principal place of
30 business.
31 "Person" means and includes individuals, entities,
32 corporations, limited liability companies, registered limited
33 liability partnerships, and partnerships, foreign or
34 domestic, except that when the context otherwise requires,
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1 the term may refer to a single individual or other described
2 entity.
3 "Personal assistant" means a licensed or unlicensed
4 person who has been hired for the purpose of aiding or
5 assisting a sponsored licensee in the performance of the
6 sponsored licensee's job.
7 "Pocket card" means the card issued by OBRE to signify
8 that the person named on the card is currently licensed under
9 this Act.
10 "Pre-license school" means a school licensed by OBRE
11 offering courses in subjects related to real estate
12 transactions, including the subjects upon which an applicant
13 is examined in determining fitness to receive a license.
14 "Pre-renewal period" means the period between the date of
15 issue of a currently valid license and the license's
16 expiration date.
17 "Real estate" means and includes leaseholds as well as
18 any other interest or estate in land, whether corporeal,
19 incorporeal, freehold, or non-freehold, including timeshare
20 interests, and whether the real estate is situated in this
21 State or elsewhere.
22 "Real Estate Administration and Disciplinary Board" or
23 "Board" means the Real Estate Administration and Disciplinary
24 Board created by Section 25-10 of this Act.
25 "Salesperson" means any individual, other than a real
26 estate broker or leasing agent, who is employed by a real
27 estate broker or is associated by written agreement with a
28 real estate broker as an independent contractor and
29 participates in any activity described in the definition of
30 "broker" under this Section.
31 "Sponsoring broker" means the broker who has issued a
32 sponsor card to a licensed salesperson, another licensed
33 broker, or a leasing agent.
34 "Sponsor card" means the temporary permit issued by the
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1 sponsoring real estate broker certifying that the real estate
2 broker, real estate salesperson, or leasing agent named
3 thereon is employed by or associated by written agreement
4 with the sponsoring real estate broker, as provided for in
5 Section 5-40 of this Act.
6 (Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00;
7 91-603, eff. 1-1-00; revised 10-27-99.)
8 (225 ILCS 454/5-60)
9 Sec. 5-60. Broker licensed in another state; nonresident
10 salesperson; reciprocal agreements; agent for service of
11 process.
12 (a) A broker's license may be issued by OBRE to a broker
13 licensed under the laws of another state of the United
14 States, under the following conditions:
15 (1) the broker holds a broker's license in his or
16 her state of domicile;
17 (2) the standards for that state for licensing as a
18 broker are substantially equivalent to or greater than
19 the minimum standards in the State of Illinois;
20 (3) the broker has been actively practicing as a
21 broker in the broker's state of domicile for a period of
22 not less than 2 years, immediately prior to the date of
23 application;
24 (4) the broker furnishes OBRE with a statement
25 under seal of the proper licensing authority of the state
26 in which the broker is licensed showing that the broker
27 has an active broker's license, that the broker is in
28 good standing, and that no complaints are pending against
29 the broker in that state; and
30 (5) the broker completes a course of education and
31 passes a test on Illinois specific real estate brokerage
32 laws; and.
33 (6) OBRE has a reciprocal agreement with that state
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1 that includes the provisions of this Section.
2 (b) A nonresident salesperson employed by or associated
3 with a nonresident broker holding a broker's license in this
4 State pursuant to this Section may, in the discretion of
5 OBRE, be issued a nonresident salesperson's license under the
6 nonresident broker provided all of the following conditions
7 are met:
8 (1) the salesperson maintains an active license in
9 the state in which he or she is domiciled;
10 (2) the salesperson is domiciled in the same state
11 as the broker with whom he or she is associated; and
12 (3) the salesperson completes a course of education
13 and passes a test on Illinois specific real estate
14 brokerage laws; and.
15 (4) OBRE has a reciprocal agreement with that State
16 that includes the provisions of this Section.
17 The nonresident broker with whom the salesperson is
18 associated shall comply with the provisions of this Act and
19 issue the salesperson a sponsor card upon the form provided
20 by OBRE.
21 (c) As a condition precedent to the issuance of a
22 license to a nonresident broker or salesperson, the broker or
23 salesperson shall agree in writing to abide by all the
24 provisions of this Act with respect to his or her real estate
25 activities within the State of Illinois and submit to the
26 jurisdiction of OBRE as provided in this Act. The agreement
27 shall be filed with OBRE and shall remain in force for so
28 long as the nonresident broker or salesperson is licensed by
29 this State and thereafter with respect to acts or omissions
30 committed while licensed as a broker or salesperson in this
31 State.
32 (d) Prior to the issuance of any license to any
33 nonresident, verification of active licensure issued for the
34 conduct of such business in any other state must be filed
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1 with OBRE by the nonresident, and the same fees must be paid
2 as provided in this Act for the obtaining of a broker's or
3 salesperson's license in this State.
4 (e) Licenses previously granted under reciprocal
5 agreements with other states shall remain in force so long as
6 OBRE has a reciprocal agreement with the state that includes
7 the requirements of this Section, unless that license is
8 suspended, revoked, or terminated by OBRE for any reason
9 provided for suspension, revocation, or termination of a
10 resident licensee's license. Licenses granted under
11 reciprocal agreements may be renewed in the same manner as a
12 resident's license.
13 (f) Prior to the issuance of a license to a nonresident
14 broker or salesperson, the broker or salesperson shall file
15 with OBRE a designation in writing that appoints the
16 Commissioner to act as his or her agent upon whom all
17 judicial and other process or legal notices directed to the
18 broker or salesperson may be served. Service upon the agent
19 so designated shall be equivalent to personal service upon
20 the licensee. Copies of the appointment, certified by the
21 Commissioner, shall be deemed sufficient evidence thereof and
22 shall be admitted in evidence with the same force and effect
23 as the original thereof might be admitted. In the written
24 designation, the broker or salesperson shall agree that any
25 lawful process against the licensee that is served upon the
26 agent shall be of the same legal force and validity as if
27 served upon the licensee and that the authority shall
28 continue in force so long as any liability remains
29 outstanding in this State. Upon the receipt of any process
30 or notice, the Commissioner shall forthwith mail a copy of
31 the same by certified mail to the last known business address
32 of the licensee.
33 (g) Any person holding a valid license under this
34 Section shall be eligible to obtain a resident broker's or
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1 salesperson's license without examination should that person
2 change their state of domicile to Illinois and that person
3 otherwise meets the qualifications or licensure under this
4 Act.
5 (Source: P.A. 91-245, eff. 12-31-99.)
6 Section 99. Effective date. This Act takes effect
7 December 31, 1999.".