State of Illinois
92nd General Assembly

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]

[ Introduced ][ Engrossed ][ House Amendment 001 ]


HB2566 Enrolled                                LRB9205328LBcs

 1        AN ACT concerning the regulation of professions.

 2        Be it  enacted  by  the  People  of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  State  Finance Act is amended by adding
 5    Section 5.545 as follows:

 6        (30 ILCS 105/5.545 new)
 7        Sec. 5.545.  The Real Estate Audit Fund.

 8        Section 10.  The Real  Estate  License  Act  of  2000  is
 9    amended by changing Sections 1-10, 5-20, 10-10, and 20-60 and
10    by adding Sections 25-14 and 25-37 as follows:

11        (225 ILCS 454/1-10)
12        Sec.  1-10. Definitions.  In this Act, unless the context
13    otherwise requires:
14        "Act" means the Real Estate License Act of 2000.
15        "Advisory  Council"  means  the  Real  Estate   Education
16    Advisory Council created under Section 30-10 of this Act.
17        "Agency"  means  a  relationship  in  which a real estate
18    broker or licensee, whether directly or through an affiliated
19    licensee, represents a consumer by  the  consumer's  consent,
20    whether express or implied, in a real property transaction.
21        "Applicant" means any person, as defined in this Section,
22    who  applies  to  OBRE  for  a valid license as a real estate
23    broker, real estate salesperson, or leasing agent.
24        "Blind advertisement" means any real estate advertisement
25    that does not include the sponsoring broker's  business  name
26    and  that is used by any licensee regarding the sale or lease
27    of  real  estate,  including  his  or   her   own,   licensed
28    activities,  or  the  hiring  of any licensee under this Act.
29    The broker's business name in the case of a  franchise  shall
HB2566 Enrolled             -2-                LRB9205328LBcs
 1    include  the franchise affiliation as well as the name of the
 2    individual firm.
 3        "Board"  means  the  Real   Estate   Administration   and
 4    Disciplinary Board of OBRE.
 5        "Branch  office" means a sponsoring broker's office other
 6    than the sponsoring broker's principal office.
 7        "Broker"  means  an  individual,   partnership,   limited
 8    liability   company,   corporation,   or  registered  limited
 9    liability partnership other than a real estate salesperson or
10    leasing agent who for another and for compensation,  or  with
11    the  intention  or  expectation  of  receiving  compensation,
12    either directly or indirectly:
13             (1)  Sells,  exchanges,  purchases, rents, or leases
14        real estate.
15             (2)  Offers to sell, exchange,  purchase,  rent,  or
16        lease real estate.
17             (3)  Negotiates,  offers,  attempts,  or  agrees  to
18        negotiate   the  sale,  exchange,  purchase,  rental,  or
19        leasing of real estate.
20             (4)  Lists, offers, attempts, or agrees to list real
21        estate for sale, lease, or exchange.
22             (5)  Buys,  sells,  offers  to  buy  or   sell,   or
23        otherwise deals in options on real estate or improvements
24        thereon.
25             (6)  Supervises  the  collection, offer, attempt, or
26        agreement to collect rent for the use of real estate.
27             (7)  Advertises or represents himself or herself  as
28        being   engaged  in  the  business  of  buying,  selling,
29        exchanging, renting, or leasing real estate.
30             (8)  Assists or directs in procuring or referring of
31        prospects, intended to  result  in  the  sale,  exchange,
32        lease, or rental of real estate.
33             (9)  Assists  or  directs  in the negotiation of any
34        transaction intended to result  in  the  sale,  exchange,
HB2566 Enrolled             -3-                LRB9205328LBcs
 1        lease, or rental of real estate.
 2             (10)  Opens  real estate to the public for marketing
 3        purposes.
 4             (11)  Sells, leases, or offers  for  sale  or  lease
 5        real estate at auction.
 6        "Brokerage  agreement"  means a written or oral agreement
 7    between a sponsoring  broker  and  a  consumer  for  licensed
 8    activities  to  be  provided  to  a  consumer  in  return for
 9    compensation  or  the  right  to  receive  compensation  from
10    another.  Brokerage  agreements  may  constitute   either   a
11    bilateral  or  a  unilateral agreement between the broker and
12    the  broker's  client  depending  upon  the  content  of  the
13    brokerage  agreement.   All  exclusive  brokerage  agreements
14    shall be in writing.
15        "Client" means a person who is  being  represented  by  a
16    licensee.
17        "Commissioner"  means  the Commissioner of Banks and Real
18    Estate or a person authorized by the Commissioner, the Office
19    of Banks and Real Estate Act, or  this  Act  to  act  in  the
20    Commissioner's stead.
21        "Compensation"  means the valuable consideration given by
22    one person or entity to another person or entity in  exchange
23    for   the   performance   of   some   activity   or  service.
24    Compensation  shall  include   the   transfer   of   valuable
25    consideration, including without limitation the following:
26             (1)  commissions;
27             (2)  referral fees;
28             (3)  bonuses;
29             (4)  prizes;
30             (5)  merchandise;
31             (6)  finder fees;
32             (7)  performance of services;
33             (8)  coupons or gift certificates;
34             (9)  discounts;
HB2566 Enrolled             -4-                LRB9205328LBcs
 1             (10)  rebates;
 2             (11)  a chance to win a raffle, drawing, lottery, or
 3        similar game of chance not prohibited by any other law or
 4        statute;
 5             (12)  retainer fee; or
 6             (13)  salary.
 7        "Confidential  information" means information obtained by
 8    a licensee from a client  during  the  term  of  a  brokerage
 9    agreement  that  (i)  was  made  confidential  by the written
10    request or written instruction of the client, (ii) deals with
11    the  negotiating  position  of  the  client,  or   (iii)   is
12    information the disclosure of which could materially harm the
13    negotiating position of the client, unless at any time:
14             (1)  the    client   permits   the   disclosure   of
15        information given by that client by word or conduct;
16             (2)  the disclosure is required by law; or
17             (3)  the information becomes public  from  a  source
18        other than the licensee.
19        "Confidential  information"  shall  not  be considered to
20    include material information about the physical condition  of
21    the property.
22        "Consumer"  means a person or entity seeking or receiving
23    licensed activities.
24        "Continuing education school" means any  person  licensed
25    by  OBRE  as  a school for continuing education in accordance
26    with Section 30-15 of this Act.
27        "Credit hour" means 50 minutes of  classroom  instruction
28    in course work that meets the requirements set forth in rules
29    adopted by OBRE.
30        "Customer"  means a consumer who is not being represented
31    by the licensee but  for  whom  the  licensee  is  performing
32    ministerial acts.
33        "Designated  agency"  means  a  contractual  relationship
34    between  a sponsoring broker and a client under Section 15-50
HB2566 Enrolled             -5-                LRB9205328LBcs
 1    of this Act in which one or more licensees associated with or
 2    employed by the broker are designated as agent of the client.
 3        "Designated agent" means a sponsored licensee named by  a
 4    sponsoring broker as the legal agent of a client, as provided
 5    for in Section 15-50 of this Act.
 6        "Director"   means   the  Director  of  the  Real  Estate
 7    Division, OBRE.
 8        "Dual agency" means an agency  relationship  in  which  a
 9    licensee  is  representing  both  buyer  and  seller  or both
10    landlord and tenant in the same transaction.  When the agency
11    relationship is a designated agency, the question of  whether
12    there  is  a  dual  agency  shall be determined by the agency
13    relationships of the designated agent of the parties and  not
14    of the sponsoring broker.
15        "Employee"  or  other  derivative of the word "employee",
16    when  used  to  refer  to,   describe,   or   delineate   the
17    relationship  between  a real estate broker and a real estate
18    salesperson, another real estate broker, or a leasing  agent,
19    shall  be  construed  to  include  an  independent contractor
20    relationship, provided that a written agreement  exists  that
21    clearly   establishes  and  states  the  relationship.    All
22    responsibilities of a broker shall remain.
23        "Escrow moneys" means all moneys, promissory notes or any
24    other  type  or  manner  of   legal   tender   or   financial
25    consideration  deposited  with  any person for the benefit of
26    the parties to the transaction.  A transaction exists once an
27    agreement has  been  reached  and  an  accepted  real  estate
28    contract  signed  or  lease agreed to by the parties.  Escrow
29    moneys  includes  without  limitation  earnest   moneys   and
30    security  deposits,  except  those security deposits in which
31    the person holding the security  deposit  is  also  the  sole
32    owner of the property being leased and for which the security
33    deposit is being held.
34        "Inoperative"  means  a  status  of  licensure  where the
HB2566 Enrolled             -6-                LRB9205328LBcs
 1    licensee holds a current license  under  this  Act,  but  the
 2    licensee  is  prohibited from engaging in licensed activities
 3    because the licensee is unsponsored or  the  license  of  the
 4    sponsoring  broker with whom the licensee is associated or by
 5    whom he or she is employed  is  currently  expired,  revoked,
 6    suspended, or otherwise rendered invalid under this Act.
 7        "Leasing  Agent" means a person who is employed by a real
 8    estate broker to engage in  licensed  activities  limited  to
 9    leasing residential real estate who has obtained a license as
10    provided for in Section 5-5 of this Act.
11        "License"  means  the  document issued by OBRE certifying
12    that the person named thereon has fulfilled all  requirements
13    prerequisite to licensure under this Act.
14        "Licensed  activities"  means  those activities listed in
15    the definition of "broker" under this Section.
16        "Licensee" means any person, as defined in this  Section,
17    who  holds a valid unexpired license as a real estate broker,
18    real estate salesperson, or leasing agent.
19        "Listing presentation" means a  communication  between  a
20    real estate broker or salesperson and a consumer in which the
21    licensee  is  attempting to secure a brokerage agreement with
22    the consumer to market the consumer's real estate for sale or
23    lease.
24        "Managing broker" means  a  broker  who  has  supervisory
25    responsibilities  for  licensees  in one or, in the case of a
26    multi-office company, more than one office and who  has  been
27    appointed as such by the sponsoring broker.
28        "Medium of advertising" means any method of communication
29    intended to influence the general public to use or purchase a
30    particular good or service or real estate.
31        "Ministerial  acts"  means those acts that a licensee may
32    perform for a consumer that are informative  or  clerical  in
33    nature  and do not rise to the level of active representation
34    on behalf of a consumer.   Examples  of  these  acts  include
HB2566 Enrolled             -7-                LRB9205328LBcs
 1    without  limitation  (i)  responding  to  phone  inquiries by
 2    consumers as to the availability  and  pricing  of  brokerage
 3    services,  (ii) responding to phone inquiries from a consumer
 4    concerning the price or location of property, (iii) attending
 5    an open house and responding to questions about the  property
 6    from   a  consumer,  (iv)  setting  an  appointment  to  view
 7    property, (v) responding to questions  of  consumers  walking
 8    into   a  licensee's  office  concerning  brokerage  services
 9    offered  or  particular  properties,  (vi)  accompanying   an
10    appraiser, inspector, contractor, or similar third party on a
11    visit  to  a  property,  (vii)  describing  a property or the
12    property's condition in response  to  a  consumer's  inquiry,
13    (viii)  completing  business  or  factual  information  for a
14    consumer on an offer or contract to purchase on behalf  of  a
15    client,  (ix)  showing a client through a property being sold
16    by an owner on his or her own  behalf,  or  (x)  referral  to
17    another broker or service provider.
18        "OBRE" means the Office of Banks and Real Estate.
19        "Office"  means  a real estate broker's place of business
20    where the general public is invited to transact business  and
21    where  records  may  be  maintained  and  licenses displayed,
22    whether  or  not  it  is  the  broker's  principal  place  of
23    business.
24        "Person"  means  and  includes   individuals,   entities,
25    corporations, limited liability companies, registered limited
26    liability   partnerships,   and   partnerships,   foreign  or
27    domestic, except that when the  context  otherwise  requires,
28    the  term may refer to a single individual or other described
29    entity.
30        "Personal  assistant"  means  a  licensed  or  unlicensed
31    person who has been  hired  for  the  purpose  of  aiding  or
32    assisting  a  sponsored  licensee  in  the performance of the
33    sponsored licensee's job.
34        "Pocket card" means the card issued by  OBRE  to  signify
HB2566 Enrolled             -8-                LRB9205328LBcs
 1    that the person named on the card is currently licensed under
 2    this Act.
 3        "Pre-license  school"  means  a  school  licensed by OBRE
 4    offering  courses  in  subjects  related   to   real   estate
 5    transactions,  including the subjects upon which an applicant
 6    is examined in determining fitness to receive a license.
 7        "Pre-renewal period" means the period between the date of
 8    issue  of  a  currently  valid  license  and  the   license's
 9    expiration date.
10        "Real  estate"  means  and includes leaseholds as well as
11    any other interest or  estate  in  land,  whether  corporeal,
12    incorporeal,  freehold,  or non-freehold, including timeshare
13    interests, and whether the real estate is  situated  in  this
14    State or elsewhere.
15        "Real  Estate  Administration  and Disciplinary Board" or
16    "Board" means the Real Estate Administration and Disciplinary
17    Board created by Section 25-10 of this Act.
18        "Salesperson" means any individual,  other  than  a  real
19    estate  broker  or  leasing  agent, who is employed by a real
20    estate broker or is associated by written  agreement  with  a
21    real   estate   broker   as  an  independent  contractor  and
22    participates in any activity described in the  definition  of
23    "broker" under this Section.
24        "Sponsoring  broker"  means  the  broker who has issued a
25    sponsor card to  a  licensed  salesperson,  another  licensed
26    broker, or a leasing agent.
27        "Sponsor  card"  means the temporary permit issued by the
28    sponsoring real estate broker certifying that the real estate
29    broker, real  estate  salesperson,  or  leasing  agent  named
30    thereon  is  employed  by  or associated by written agreement
31    with the sponsoring real estate broker, as  provided  for  in
32    Section 5-40 of this Act.
33    (Source:  P.A.  91-245,  eff.  12-31-99; 91-585, eff. 1-1-00;
34    91-603, eff. 1-1-00; 91-702, eff. 5-12-00.)
HB2566 Enrolled             -9-                LRB9205328LBcs
 1        (225 ILCS 454/5-20)
 2        Sec.  5-20.   Exemptions  from  broker,  salesperson,  or
 3    leasing  agent  license  requirement.   The  requirement  for
 4    holding a license under this Article 5 shall not apply to:
 5        (1)  Any person,  partnership,  or  corporation  that  as
 6    owner  or  lessor  performs  any of the acts described in the
 7    definition of "broker" under Section 1-10 of  this  Act  with
 8    reference  to  property  owned  or  leased  by  it, or to the
 9    regular employees thereof with respect  to  the  property  so
10    owned or leased, where such acts are performed in the regular
11    course of or as an incident to the management, sale, or other
12    disposition  of  such  property  and  the investment therein,
13    provided that such regular employees do not  perform  any  of
14    the  acts  described  in  the  definition  of  "broker" under
15    Section 1-10 of this Act in connection  with  a  vocation  of
16    selling  or  leasing  any  real  estate  or  the improvements
17    thereon not so owned or leased.
18        (2)  An attorney in fact acting under a duly executed and
19    recorded power of attorney to convey  real  estate  from  the
20    owner  or  lessor  or the services rendered by an attorney at
21    law in the performance of the attorney's duty as an  attorney
22    at law.
23        (3)  Any   person   acting   as   receiver,   trustee  in
24    bankruptcy, administrator, executor,  or  guardian  or  while
25    acting  under  a court order or under the authority of a will
26    or testamentary trust.
27        (4)  Any person acting as  a  resident  manager  for  the
28    owner  or  any  employee acting as the resident manager for a
29    broker managing an apartment building, duplex,  or  apartment
30    complex,  when  the resident manager resides on the premises,
31    the premises  is  his  or  her  primary  residence,  and  the
32    resident manager is engaged in the leasing of the property of
33    which he or she is the resident manager.
34        (5)  Any  officer  or employee of a federal agency in the
HB2566 Enrolled             -10-               LRB9205328LBcs
 1    conduct of official duties.
 2        (6)  Any officer or employee of the State  government  or
 3    any political subdivision thereof performing official duties.
 4        (7)  Any  multiple  listing  service or other information
 5    exchange that is engaged in the collection and  dissemination
 6    of  information  concerning  real  estate available for sale,
 7    purchase, lease,  or  exchange  along  with  which  no  other
 8    licensed activities are provided.
 9        (8)  Railroads  and  other  public utilities regulated by
10    the State of Illinois, or the officers or full time employees
11    thereof, unless the performance of any licensed activities is
12    in connection  with  the  sale,  purchase,  lease,  or  other
13    disposition  of real estate or investment therein not needing
14    the approval of the appropriate State regulatory authority.
15        (9)  Any medium of advertising in the routine  course  of
16    selling  or  publishing advertising along with which no other
17    licensed activities are provided.
18        (10)  Any resident lessee of a residential dwelling  unit
19    who  refers  for  compensation  to  the owner of the dwelling
20    unit,  or  to  the  owner's  agent,  prospective  lessees  of
21    dwelling units  in  the  same  building  or  complex  as  the
22    resident  lessee's  unit, but only if the resident lessee (i)
23    refers no more than 3 prospective  lessees  in  any  12-month
24    period,  (ii) receives compensation of no more than $1,000 or
25    the equivalent of one month's rent, whichever is less, in any
26    12-month period, and (iii) limits his or  her  activities  to
27    referring  prospective  lessees  to the owner, or the owner's
28    agent, and does not show a residential  dwelling  unit  to  a
29    prospective  lessee, discuss terms or conditions of leasing a
30    dwelling  unit  with  a  prospective  lessee,  or   otherwise
31    participate  in  the negotiation of the leasing of a dwelling
32    unit.
33        (11)  An  exchange  company  registered  under  the  Real
34    Estate Timeshare Act of 1999 and  the  regular  employees  of
HB2566 Enrolled             -11-               LRB9205328LBcs
 1    that  registered exchange company but only when conducting an
 2    exchange program as defined in that Act.
 3        (12)  An existing timeshare owner who, for  compensation,
 4    refers  prospective  purchasers,  but  only  if  the existing
 5    timeshare owner  (i)  refers  no  more  than  20  prospective
 6    purchasers  in  any calendar year, (ii) receives no more than
 7    $1,000, or its equivalent, for referrals in any calendar year
 8    and  (iii)  limits  his  or  her  activities   to   referring
 9    prospective   purchasers   of   timeshare  interests  to  the
10    developer or the developer's employees or  agents,  and  does
11    not   show,  discuss  terms  or  conditions  of  purchase  or
12    otherwise  participate  in  negotiations   with   regard   to
13    timeshare interests.
14        (13)  (11) Any person who is licensed without examination
15    under Section 10-25 of the Auction License Act is exempt from
16    holding a broker's or salesperson's license  under  this  Act
17    for  the limited purpose of selling or leasing real estate at
18    auction, so long as:
19                  (A)  that person has made application for  said
20             exemption by July 1, 2000;
21                  (B)  that  person  verifies  to OBRE that he or
22             she has sold real estate at auction for a period  of
23             5 years prior to licensure as an auctioneer;
24                  (C)  the  person has had no lapse in his or her
25             license as an auctioneer; and
26                  (D)  the  license  issued  under  the   Auction
27             License  Act  has not been disciplined for violation
28             of those provisions of Article  20  of  the  Auction
29             License  Act  dealing with or related to the sale or
30             lease of real estate at auction.
31        (14)  A  hotel  operator  who  is  registered  with   the
32    Illinois Department of Revenue and pays taxes under the Hotel
33    Operators'  Occupation Tax Act and rents a room or rooms in a
34    hotel as defined in the Hotel Operators' Occupation  Tax  Act
HB2566 Enrolled             -12-               LRB9205328LBcs
 1    for  a  period  of  not more than 30 consecutive days and not
 2    more than 60 days in a calendar year.
 3    (Source: P.A. 91-245, eff.  12-31-99;  91-585,  eff.  1-1-00;
 4    91-603, eff. 1-1-00; revised 10-27-99.)

 5        (225 ILCS 454/10-10)
 6        Sec. 10-10.  Disclosure of compensation.
 7        (a)  A  licensee must disclose to a client the sponsoring
 8    broker's compensation and policy with regard  to  cooperating
 9    with brokers who represent other parties in a transaction.
10        (b)  A  licensee must disclose to a client all sources of
11    compensation related  to  the  transaction  received  by  the
12    licensee from a third party.
13        (c)  If  a  licensee  refers a client to a third party in
14    which the licensee has greater than a 1%  ownership  interest
15    or  from which the licensee receives or may receive dividends
16    or other profit sharing distributions, other than a  publicly
17    held  or  traded  company,  for  the  purpose  of  the client
18    obtaining services  related  to  the  transaction,  then  the
19    licensee  shall  disclose that fact to the client at the time
20    of making the referral.
21        (d)  If  in  any  one  transaction  a  sponsoring  broker
22    receives compensation from  both  the  buyer  and  seller  or
23    lessee and lessor of real estate, the sponsoring broker shall
24    disclose   in   writing   to  a  client  the  fact  that  the
25    compensation is being paid by both buyer and seller or lessee
26    and lessor.
27        (e)  Nothing in the Act shall  prohibit  the  cooperation
28    with  or  a payment of compensation to a person not domiciled
29    in this State or country who is licensed  as  a  real  estate
30    broker  in  his  or  her state or country of domicile or to a
31    resident of a country that does not require a  person  to  be
32    licensed  to  act  as  a  real  estate  broker  if the person
33    complies with the laws of the country in  which  that  person
HB2566 Enrolled             -13-               LRB9205328LBcs
 1    resides and practices there as a real estate broker.
 2    (Source: P.A. 91-245, eff. 12-31-99.)

 3        (225 ILCS 454/20-60)
 4        Sec. 20-60.  Hearing; investigation; notice; disciplinary
 5    consent order.
 6        (a)  OBRE  may  conduct  hearings  through the Board or a
 7    duly appointed hearing officer  on  proceedings  to  suspend,
 8    revoke,  or  to  refuse to issue or renew licenses of persons
 9    applying for licensure or  licensed  under  this  Act  or  to
10    censure,  reprimand,  or  impose  a  civil fine not to exceed
11    $25,000 upon any licensee hereunder and may revoke,  suspend,
12    or  refuse  to  issue  or  renew  these  licenses or censure,
13    reprimand, or impose a civil fine not to exceed $25,000  upon
14    any licensee hereunder.
15        (b)  Upon  the motion of either OBRE or the Board or upon
16    the verified complaint in  writing  of  any  persons  setting
17    forth  facts  that  if  proven  would  constitute grounds for
18    suspension or revocation under this Act, OBRE, the Board,  or
19    its  subcommittee  shall cause to be investigated the actions
20    of any person so accused who holds a license  or  is  holding
21    himself  or  herself  out  to  be a licensee.  This person is
22    hereinafter called the accused.
23        (c)  Prior  to   initiating   any   formal   disciplinary
24    proceedings   resulting   from   an  investigation  conducted
25    pursuant to subsection (b) of this Section, that matter shall
26    be reviewed by a  subcommittee  of  the  Board  according  to
27    procedures established by rule. The subcommittee shall make a
28    recommendation  to  the  full Board as to the validity of the
29    complaint and may recommend that the Board not  proceed  with
30    formal   disciplinary   proceedings   if   the  complaint  is
31    determined to be frivolous or without merit.
32        (d)  Except as provided for in Section 20-65 of this Act,
33    OBRE  shall,  before   suspending,   revoking,   placing   on
HB2566 Enrolled             -14-               LRB9205328LBcs
 1    probationary  status, or taking any other disciplinary action
 2    as OBRE may deem proper with regard to any license:
 3             (1)  notify the accused in writing at least 30  days
 4        prior to the date set for the hearing of any charges made
 5        and  the time and place for the hearing of the charges to
 6        be heard before the Board under oath; and
 7             (2)  inform the accused that upon failure to file an
 8        answer and request a hearing before the  date  originally
 9        set  for  the  hearing, default will be taken against the
10        accused and his or her license may be suspended, revoked,
11        or placed on probationary status, or  other  disciplinary
12        action,  including  limiting the scope, nature, or extent
13        of the accused's practice, as OBRE may deem  proper,  may
14        be taken with regard thereto.
15        In  case  the  person  fails  to  file  an  answer  after
16    receiving  notice,  his or her license may, in the discretion
17    of OBRE, be suspended, revoked,  or  placed  on  probationary
18    status,  or OBRE may take whatever disciplinary action deemed
19    proper, including limiting the scope, nature,  or  extent  of
20    the  person's practice or the imposition of a fine, without a
21    hearing, if the act or  acts  charged  constitute  sufficient
22    grounds for such action under this Act.
23        (e)  At the time and place fixed in the notice, the Board
24    shall  proceed to hearing of the charges and both the accused
25    person  and  the  complainant   shall   be   accorded   ample
26    opportunity   to   present  in  person  or  by  counsel  such
27    statements,  testimony,  evidence  and  argument  as  may  be
28    pertinent to the charges or  to  any  defense  thereto.   The
29    Board or its hearing officer may continue a hearing date upon
30    its own motion or upon an accused's motion for one period not
31    to  exceed  30  days.   The  Board or its hearing officer may
32    grant further continuances for periods not to exceed 30  days
33    only  upon  good  cause being shown by the moving party.  The
34    non-moving party shall have the opportunity to  object  to  a
HB2566 Enrolled             -15-               LRB9205328LBcs
 1    continuance  on  the  record  at a hearing upon the motion to
 2    continue. All motions for  continuances  and  any  denial  or
 3    grant  thereof  shall  be  in  writing.  All motions shall be
 4    submitted not  later  than  48  hours  before  the  scheduled
 5    hearing  unless made upon an emergency basis.  In determining
 6    whether good cause for a continuance is shown, the  Board  or
 7    its hearing officer shall consider such factors as the volume
 8    of  cases  pending, the nature and complexity of legal issues
 9    raised, the diligence of the party making  the  request,  the
10    availability  of  party's  legal representative or witnesses,
11    and the number of previous requests for continuance.
12        (f)  Any  unlawful  act  or  violation  of  any  of   the
13    provisions  of  this  Act  upon  the  part  of  any licensees
14    employed by a real estate broker  or  associated  by  written
15    agreement with the real estate broker, or unlicensed employee
16    of  a  licensed broker, shall not be cause for the revocation
17    of the license of any  such  broker,  partial  or  otherwise,
18    unless it appears to the satisfaction of OBRE that the broker
19    had knowledge thereof.
20        (g)  OBRE  or the Board has power to subpoena any persons
21    or documents for the purpose of investigation or hearing with
22    the  same  fees  and  mileage  and  in  the  same  manner  as
23    prescribed by law for judicial procedure in  civil  cases  in
24    courts  of  this  State.  The Commissioner, the Director, any
25    member of the Board, a certified court reporter, or a hearing
26    officer  shall  each  have  power  to  administer  oaths   to
27    witnesses  at any hearing which OBRE is authorized under this
28    Act to conduct.
29        (h)  Any circuit court or any  judge  thereof,  upon  the
30    application  of the accused person, complainant, OBRE, or the
31    Board, may, by  order  entered,  require  the  attendance  of
32    witnesses  and  the  production  of relevant books and papers
33    before the Board in any hearing relative to  the  application
34    for  or  refusal,  recall,  suspension,  or  revocation  of a
HB2566 Enrolled             -16-               LRB9205328LBcs
 1    license, and the court or judge may compel obedience  to  the
 2    court's or the judge's order by proceedings for contempt.
 3        (i)  OBRE, at its expense, shall preserve a record of all
 4    proceedings  at  the formal hearing of any case involving the
 5    refusal to issue or  the  revocation,  suspension,  or  other
 6    discipline  of  a licensee.  The notice of hearing, complaint
 7    and all other  documents  in  the  nature  of  pleadings  and
 8    written  motions  filed in the proceedings, the transcript of
 9    testimony, the report of the Board, and the  orders  of  OBRE
10    shall  be  the  record  of the proceeding. At all hearings or
11    pre-hearing  conferences,  OBRE  and  the  accused  shall  be
12    entitled to have a court reporter in attendance for  purposes
13    of  transcribing  the proceeding or pre-hearing conference at
14    the expense of the  party  requesting  the  court  reporter's
15    attendance.  A  copy  of  the transcribed proceeding shall be
16    available to the other party for the cost of a  copy  of  the
17    transcript.
18        (j)  The  Board  shall  present  to  the Commissioner its
19    written report of its findings and recommendations.   A  copy
20    of  the  report  shall  be  served  upon  the accused, either
21    personally or by certified mail as provided in this  Act  for
22    the  service  of  the  citation.   Within  20  days after the
23    service, the accused may present to the Commissioner a motion
24    in writing for a rehearing that shall specify the  particular
25    grounds  therefor.   If the accused shall order and pay for a
26    transcript of the record as provided in this  Act,  the  time
27    elapsing  thereafter  and  before the transcript is ready for
28    delivery to the accused shall not be counted as part  of  the
29    20   days.   Whenever  the  Commissioner  is  satisfied  that
30    substantial justice has not been done, the  Commissioner  may
31    order  a  rehearing  by  the Board or other special committee
32    appointed by the Commissioner or may remand the matter to the
33    Board for their reconsideration of the matter  based  on  the
34    pleadings  and  evidence  presented  to  the  Board.   In all
HB2566 Enrolled             -17-               LRB9205328LBcs
 1    instances, under this Act, in which the Board has rendered  a
 2    recommendation   to   the  Commissioner  with  respect  to  a
 3    particular licensee or applicant, the Commissioner shall,  in
 4    the  event  that  he  or  she  disagrees with or takes action
 5    contrary to the recommendation of the Board,  file  with  the
 6    Board and the Secretary of State his specific written reasons
 7    of  disagreement  with the Board.  The reasons shall be filed
 8    within  60  days  of  the  Board's  recommendation   to   the
 9    Commissioner  and  prior  to  any  contrary  action.   At the
10    expiration of the time specified for filing a  motion  for  a
11    rehearing,  the Commissioner shall have the right to take the
12    action recommended by the  Board.   Upon  the  suspension  or
13    revocation  of  a  license, the licensee shall be required to
14    surrender his or her license to OBRE,  and  upon  failure  or
15    refusal  to  do  so,  OBRE  shall have the right to seize the
16    license.
17        (k)  At  any  time  after   the   suspension,   temporary
18    suspension, or revocation of any license, OBRE may restore it
19    to   the   accused  without  examination,  upon  the  written
20    recommendation of the Board.
21        (l)  An order of revocation or suspension or a  certified
22    copy  thereof,  over  the  seal  of OBRE and purporting to be
23    signed by the Commissioner, shall be prima facie proof that:
24             (1)  The signature is the genuine signature  of  the
25        Commissioner.
26             (2)  The   Commissioner   is   duly   appointed  and
27        qualified.
28             (3)  The  Board  and   the   members   thereof   are
29        qualified.
30    Such proof may be rebutted.
31        (m)  Notwithstanding   any   provisions   concerning  the
32    conduct of  hearings  and  recommendations  for  disciplinary
33    actions,  OBRE  as  directed  by  the  Commissioner  has  the
34    authority   to   negotiate   agreements  with  licensees  and
HB2566 Enrolled             -18-               LRB9205328LBcs
 1    applicants resulting in disciplinary consent  orders.   These
 2    consent orders may provide for any of the forms of discipline
 3    provided  in  this  Act.   These consent orders shall provide
 4    that they were not entered into as a result of  any  coercion
 5    by  OBRE.   Any  such  consent  order shall be filed with the
 6    Commissioner  along  with  the  Board's  recommendation   and
 7    accepted  or  rejected  by the Commissioner within 60 days of
 8    the Board's recommendation.
 9    (Source: P.A. 91-245, eff. 12-31-99.)

10        (225 ILCS 454/25-14 new)
11        Sec. 25-14.  Reliance on advisory letters.  Licensees  or
12    their  representatives  may seek an advisory letter from OBRE
13    as to matters arising under this Act or the rules promulgated
14    pursuant to this Act.  OBRE shall promulgate rules as to  the
15    process  of  seeking  and  obtaining  an  advisory letter and
16    topics and areas on which advisory rules will  be  issued  by
17    OBRE.  A licensee is entitled to rely upon an advisory letter
18    from  OBRE  and  will  not be disciplined by OBRE for actions
19    taken in reliance on the advisory letter.

20        (225 ILCS 454/25-37 new)
21        Sec. 25-37.  Real Estate Audit  Fund;  audit  of  special
22    accounts; audit of fund.
23        (a)  A  special fund to be known as the Real Estate Audit
24    Fund is created in the State Treasury.  The  State  Treasurer
25    shall  cause  a  transfer  of  $200,000  from the Real Estate
26    License Administration Fund to the Real Estate Audit Fund  on
27    January  1,  2002.   If, at any time, the balance in the Real
28    Estate Audit Fund is less than $25,000, the  State  Treasurer
29    shall  cause  a  transfer  of  $200,000  from the Real Estate
30    License Administration Fund to the Real  Estate  Audit  Fund.
31    The  moneys  held in the Real Estate Audit Fund shall be used
32    exclusively by OBRE to conduct audits of special accounts  of
HB2566 Enrolled             -19-               LRB9205328LBcs
 1    moneys belonging to others held by a broker.
 2        (b)  Upon  receipt  of  a  complaint  or evidence by OBRE
 3    sufficient to cause OBRE to  reasonably  believe  that  funds
 4    required  to  be  maintained in a special account by a broker
 5    have been misappropriated, the broker shall, within  30  days
 6    of  written  notice,  submit  to  an  audit  of  all  special
 7    accounts.   Such  audit  shall  be  performed  by  a licensed
 8    certified public accountant, shall result in a written report
 9    by the accountant, and shall specifically refer to the escrow
10    and record-keeping requirements of this  Act  and  the  rules
11    adopted under this Act.  If it is found, pursuant to an order
12    issued  by  the  Commissioner,  that  moneys  required  to be
13    maintained  in  a  special   account   by   a   broker   were
14    misappropriated, as further defined by rule, the broker shall
15    reimburse  OBRE, in addition to any other discipline or civil
16    penalty imposed, for the cost of the audit performed pursuant
17    to this Section.  OBRE  may  file  in  circuit  court  for  a
18    judgment  to  enforce  the collection of the reimbursement of
19    the cost of such audit.  Any reimbursement collected by  OBRE
20    shall be deposited into the Real Estate Audit Fund.
21        (c)  Moneys in the Real Estate Audit Fund may be invested
22    and reinvested in the same manner as funds in the Real Estate
23    Recovery  Fund.   All  earnings received from such investment
24    shall be deposited in the Real Estate Audit Fund and  may  be
25    used  for  the  same purpose as other moneys deposited in the
26    Real Estate Audit Fund.  Upon  completion  of  any  audit  of
27    OBRE,  prescribed  by  the Illinois State Auditing Act, which
28    includes an audit of the Real Estate Audit Fund,  OBRE  shall
29    make the audit open to inspection by any interested person.

30        (225 ILCS 454/20-70 rep.)
31        Section  15.  The  Real  Estate  License  Act  of 2000 is
32    amended by repealing Section 20-70.
HB2566 Enrolled             -20-               LRB9205328LBcs
 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.

[ Top ]