Chapter 14 Illinois Real Estate
License Law online book
Administrative Code currently - -The Administrative Code ("The Rules")
which amplifies and works in conjunction with the Illinois Real Estate License
Act is anticipated to be effective by July 1, 2020
- Illinois real estate license law - -Illinois has had a real estate license law
since 1921, this body of law is intended to evaluate the competency of
persons engaged in the real estate profession and to regulate their activities
for the protection of the public
- Illinois real estate license law today - -Today the law is called the Real
Estate License Act of 2000 (as amended in 2020), The real estate industry in
Illinois is regulated by the Division of Real Estate a branch of the Illinois
Department of Financial and Professional Regulation (IDFPR) (also sometimes
called the Department) which is charged with protecting and improving the
lives of Illinois consumers
- Secretary of IDFPR - -is appointed by the Governor and oversees the
Division of Real Estate, the Division of Banking, the Division of Financial
Institutions, and the Division of Professional Regulation, the Division of Real
Estate by law is overseen by a Director of the Real Estate Division and a Real
Estate Coordinator
- IDFPR responsibility - -Is responsible for administering and enforcing the
Real Estate License Act of 2000, in addition IDFPR Administers all licenses for
Illinois real estate brokers, managing brokers, residential leasing agents, real
estate corporations, partnerships, limited liability companies, real estate
branch offices, licensed education providers, and real estate instructors,
IDFPR promulgates rules for the Act's implementation and enforcement,
these are often called "the rules" and they supply explanatory detail and
guidelines for the Act
- The Act source - -the Act, rules, and other significant legislation are
available online at https://www.idfpr.com/profs/REALEST.asp
- Four major funds administered through IDFPR - -The Real Estate License
Administration Fund to which license fees and other funds initially go, the
Real Estate Research and Education Fund for research and scholarships, the
Real Estate Recovery Fund a consumer-oriented fund for compensating
consumers harmed by licensees actions, and the Real Estate Audit Fund for
conducting audits of special accounts
, - Division of Real Estate - -IDPFR gives the Division of Real Estate (the
Division) the primary authority to administer the Real Estate License Act of
2000, the Division is also empowered to issue rules and regulations that
implement and interpret the act, the rules accompanying the act are
important to a full understanding of the Act's implications and applications,
IDFPR has the authority to contract with third parties for any services
deemed necessary for proper administration of the act
- IDFPR administrative activities responsibilities - -Conducting license
examinations, issuing and renewing licenses, preparing all forms including
applications and licenses, and collecting fees from applicants and licensees
- IDFPR functions only exercised on Board - -IDFPR has following functions
which may be exercised only on the initiative and approval of the Real Estate
Administration and Disciplinary Board: conducting hearings that may result
in the revocation or suspension of licenses or in the refusal to issue or renew
licenses, imposing penalties for violations of the Act, restoring suspended or
revoked licenses
- Real estate coordinator - -A licensed broker is appointed to the position of
real estate coordinator by the IDFPR secretary after the recommendations of
real estate professionals and organizations are considered, this individuals
license is transferred to inactive status during the appointment
- Real estate coordinator duties - -Acting as ex officio chairperson of the
Real Estate Administration and Disciplinary Board without a vote, being the
direct liaison between IDFPR, the real estate profession, and real estate
organizations and associations, preparing and circulating educational and
informational material for licensees, appointing any committees necessary to
assist IDFPR in carrying out its duties, and supervising real estate activities
- The Real Estate Administration and Disciplinary Board - -Also called The
Board, acts in an advisory capacity to the real estate coordinator regarding
matters involving standards of professional conduct, discipline, and
examination, in addition to its advisory functions the Board conducts
hearings on disciplinary actions against persons accused of violating the Act
or the rules, the real estate coordinator is the nonvoting ex officio board
chairperson
- Composition of the Board - -The Board is composed of 15 members
appointed by the governor, members will be appointed subject to the
following conditions: 1. All members must have been residents and citizens
of the state for at least six years prior to the date of appointment, 2. twelve
members must have been actively engaged as managing brokers, brokers,
or both for at least 10 years prior to the appointment and two must possess
,an active prelicense instructor, 3. Three members of the board must be
public members who represent consumer interests
- Composition of Board rules - -Members are chosen in a manner such that
all areas of the state are reasonably represented, members terms are for
four years and the expiration of those terms are staggered, no member is
reappointed to the Board for a term that would cause his or her cumulative
service to exceed 10 years, the governor may terminate a member's
appointment due to cause
- Real Estate Research and Education Fund - -The Act created the Real
Estate Research and Education Fund which is held in trust in the state
Treasury and administered by IDFPR, annually on September 15 the state
treasurer transfers $125,000 to this fund from the Real Estate License
Administration Fund, these funds are used for research and for education at
state institutions of higher education or other organizations for research and
for the advancement of education in the real estate industry, of the
$125,000 annual allocation $15,000 is used to fund a scholarship program to
support the real estate education of minority real estate professionals
- Obtaining and keeping a real estate license - -Determining who can obtain
a real estate license, the purposes of a license, and the types of licenses
available are all covered in Article 5 of the real estate license act of 2000
with supportive definitions found in Article 1, educational requirements such
as the prelicensing coursework needed, testing requirements, and continuing
education requirements for all Illinois licenses are also covered in Article 5
- Illegal agents - -It is illegal for anyone to act as a broker, managing broker,
or residential leasing agent without a real estate license issued by IDFPR
- "Broker" according to - -according to 225 ILCS 454/1-10 "Broker" means
an individual, partnership, limited liability company, corporation, or
registered limited liability partnership other than a residential leasing agent
who whether in person or through any media or technology for another and
for compensation or with the intention or expectation of receiving
compensation either directly or indirectly does the following: sells,
exchanges, purchases, rents, or leases real estate; offers to sell, exchange,
purchase, rent, or lease real estate; negotiates offers, attempts, or agrees to
negotiate the sale, exchange, purchase, rental, or leasing of real estate; lists,
offers, attempts, or agrees to list real estate for sale, lease, or exchange;
buys, sells, offers to buy or sell, or otherwise deals in options on real estate
or improvements thereon; whether for another or themselves engages in a
pattern of business of buying, selling, offering to buy or sell, marketing for
sale, exchanging, or otherwise dealing in contracts including assignable
contract for the purchase or sale of or options on real estate or
improvements thereon, for purposes of this definition an individual or entity
, will be found to have engaged in a pattern of business if the individual or
entity by itself or with any combination of other individuals or entities
whether as partners or common owners in another entity has engaged in one
or more of these practices on two or more occasions in any 12-month period;
supervises the collection, offer, attempt, or agreement to collect rent for the
use of real estate; advertises or represents themselves as being engaged in
the business of buying, selling, exchanging, renting, or leasing real estate;
assists or directs in the procuring or referring of leads or prospects intended
to result in the sale, exchange, lease, or rental of real esta
- Designated managing broker - -Means a broker who has supervisory
responsibilities for licensees in one or in the case of a multi-office company
more than one office and who has been appointed as such by the sponsoring
broker registered with the Department
- Inactive - -Means a status of licensure where the licensee holds a current
license under the Act but the licensee is prohibited from engaging in licensed
activities because the licensee is unsponsored or the license of the
sponsoring broker with whom the licensee is associated or by whom the
licensee is employed is currently expired, revoked, suspended, or otherwise
rendered invalid under the Act, The license of any business entity that is not
in good standing with the Illinois Secretary of State or is not authorized to
conduct business in Illinois will immediately become inactive and that entity
will be prohibited from engaging in any licensed activities
- Person - -Means and includes individuals, entities, corporations, limited
liability companies, registered limited liability partnerships, foreign and
domestic partnerships, and other business entities except that when the
context otherwise requires the term may refer to a single individual or other
described entity
- Renewal period - -Means the period beginning 90 days before the
expiration date of a license
- Residential leasing agent - -Means a person who is employed by a broker
to engage in licensed activities limited to leasing residential real estate who
has obtained a license as provided by the Act
- Sponsoring broker - -Means the broker who certifies to the Department
sponsorship of a licensed managing broker, broker, or a residential leasing
agent
- License requirement exemptions - -According to 225 ILCS 454/5-20 the
requirements for holding a broker, managing broker, or residential leasing
agent license does not apply to the following: any person as defined in
Section 1-10 that as owner or lessor performs any of the acts described in
License Law online book
Administrative Code currently - -The Administrative Code ("The Rules")
which amplifies and works in conjunction with the Illinois Real Estate License
Act is anticipated to be effective by July 1, 2020
- Illinois real estate license law - -Illinois has had a real estate license law
since 1921, this body of law is intended to evaluate the competency of
persons engaged in the real estate profession and to regulate their activities
for the protection of the public
- Illinois real estate license law today - -Today the law is called the Real
Estate License Act of 2000 (as amended in 2020), The real estate industry in
Illinois is regulated by the Division of Real Estate a branch of the Illinois
Department of Financial and Professional Regulation (IDFPR) (also sometimes
called the Department) which is charged with protecting and improving the
lives of Illinois consumers
- Secretary of IDFPR - -is appointed by the Governor and oversees the
Division of Real Estate, the Division of Banking, the Division of Financial
Institutions, and the Division of Professional Regulation, the Division of Real
Estate by law is overseen by a Director of the Real Estate Division and a Real
Estate Coordinator
- IDFPR responsibility - -Is responsible for administering and enforcing the
Real Estate License Act of 2000, in addition IDFPR Administers all licenses for
Illinois real estate brokers, managing brokers, residential leasing agents, real
estate corporations, partnerships, limited liability companies, real estate
branch offices, licensed education providers, and real estate instructors,
IDFPR promulgates rules for the Act's implementation and enforcement,
these are often called "the rules" and they supply explanatory detail and
guidelines for the Act
- The Act source - -the Act, rules, and other significant legislation are
available online at https://www.idfpr.com/profs/REALEST.asp
- Four major funds administered through IDFPR - -The Real Estate License
Administration Fund to which license fees and other funds initially go, the
Real Estate Research and Education Fund for research and scholarships, the
Real Estate Recovery Fund a consumer-oriented fund for compensating
consumers harmed by licensees actions, and the Real Estate Audit Fund for
conducting audits of special accounts
, - Division of Real Estate - -IDPFR gives the Division of Real Estate (the
Division) the primary authority to administer the Real Estate License Act of
2000, the Division is also empowered to issue rules and regulations that
implement and interpret the act, the rules accompanying the act are
important to a full understanding of the Act's implications and applications,
IDFPR has the authority to contract with third parties for any services
deemed necessary for proper administration of the act
- IDFPR administrative activities responsibilities - -Conducting license
examinations, issuing and renewing licenses, preparing all forms including
applications and licenses, and collecting fees from applicants and licensees
- IDFPR functions only exercised on Board - -IDFPR has following functions
which may be exercised only on the initiative and approval of the Real Estate
Administration and Disciplinary Board: conducting hearings that may result
in the revocation or suspension of licenses or in the refusal to issue or renew
licenses, imposing penalties for violations of the Act, restoring suspended or
revoked licenses
- Real estate coordinator - -A licensed broker is appointed to the position of
real estate coordinator by the IDFPR secretary after the recommendations of
real estate professionals and organizations are considered, this individuals
license is transferred to inactive status during the appointment
- Real estate coordinator duties - -Acting as ex officio chairperson of the
Real Estate Administration and Disciplinary Board without a vote, being the
direct liaison between IDFPR, the real estate profession, and real estate
organizations and associations, preparing and circulating educational and
informational material for licensees, appointing any committees necessary to
assist IDFPR in carrying out its duties, and supervising real estate activities
- The Real Estate Administration and Disciplinary Board - -Also called The
Board, acts in an advisory capacity to the real estate coordinator regarding
matters involving standards of professional conduct, discipline, and
examination, in addition to its advisory functions the Board conducts
hearings on disciplinary actions against persons accused of violating the Act
or the rules, the real estate coordinator is the nonvoting ex officio board
chairperson
- Composition of the Board - -The Board is composed of 15 members
appointed by the governor, members will be appointed subject to the
following conditions: 1. All members must have been residents and citizens
of the state for at least six years prior to the date of appointment, 2. twelve
members must have been actively engaged as managing brokers, brokers,
or both for at least 10 years prior to the appointment and two must possess
,an active prelicense instructor, 3. Three members of the board must be
public members who represent consumer interests
- Composition of Board rules - -Members are chosen in a manner such that
all areas of the state are reasonably represented, members terms are for
four years and the expiration of those terms are staggered, no member is
reappointed to the Board for a term that would cause his or her cumulative
service to exceed 10 years, the governor may terminate a member's
appointment due to cause
- Real Estate Research and Education Fund - -The Act created the Real
Estate Research and Education Fund which is held in trust in the state
Treasury and administered by IDFPR, annually on September 15 the state
treasurer transfers $125,000 to this fund from the Real Estate License
Administration Fund, these funds are used for research and for education at
state institutions of higher education or other organizations for research and
for the advancement of education in the real estate industry, of the
$125,000 annual allocation $15,000 is used to fund a scholarship program to
support the real estate education of minority real estate professionals
- Obtaining and keeping a real estate license - -Determining who can obtain
a real estate license, the purposes of a license, and the types of licenses
available are all covered in Article 5 of the real estate license act of 2000
with supportive definitions found in Article 1, educational requirements such
as the prelicensing coursework needed, testing requirements, and continuing
education requirements for all Illinois licenses are also covered in Article 5
- Illegal agents - -It is illegal for anyone to act as a broker, managing broker,
or residential leasing agent without a real estate license issued by IDFPR
- "Broker" according to - -according to 225 ILCS 454/1-10 "Broker" means
an individual, partnership, limited liability company, corporation, or
registered limited liability partnership other than a residential leasing agent
who whether in person or through any media or technology for another and
for compensation or with the intention or expectation of receiving
compensation either directly or indirectly does the following: sells,
exchanges, purchases, rents, or leases real estate; offers to sell, exchange,
purchase, rent, or lease real estate; negotiates offers, attempts, or agrees to
negotiate the sale, exchange, purchase, rental, or leasing of real estate; lists,
offers, attempts, or agrees to list real estate for sale, lease, or exchange;
buys, sells, offers to buy or sell, or otherwise deals in options on real estate
or improvements thereon; whether for another or themselves engages in a
pattern of business of buying, selling, offering to buy or sell, marketing for
sale, exchanging, or otherwise dealing in contracts including assignable
contract for the purchase or sale of or options on real estate or
improvements thereon, for purposes of this definition an individual or entity
, will be found to have engaged in a pattern of business if the individual or
entity by itself or with any combination of other individuals or entities
whether as partners or common owners in another entity has engaged in one
or more of these practices on two or more occasions in any 12-month period;
supervises the collection, offer, attempt, or agreement to collect rent for the
use of real estate; advertises or represents themselves as being engaged in
the business of buying, selling, exchanging, renting, or leasing real estate;
assists or directs in the procuring or referring of leads or prospects intended
to result in the sale, exchange, lease, or rental of real esta
- Designated managing broker - -Means a broker who has supervisory
responsibilities for licensees in one or in the case of a multi-office company
more than one office and who has been appointed as such by the sponsoring
broker registered with the Department
- Inactive - -Means a status of licensure where the licensee holds a current
license under the Act but the licensee is prohibited from engaging in licensed
activities because the licensee is unsponsored or the license of the
sponsoring broker with whom the licensee is associated or by whom the
licensee is employed is currently expired, revoked, suspended, or otherwise
rendered invalid under the Act, The license of any business entity that is not
in good standing with the Illinois Secretary of State or is not authorized to
conduct business in Illinois will immediately become inactive and that entity
will be prohibited from engaging in any licensed activities
- Person - -Means and includes individuals, entities, corporations, limited
liability companies, registered limited liability partnerships, foreign and
domestic partnerships, and other business entities except that when the
context otherwise requires the term may refer to a single individual or other
described entity
- Renewal period - -Means the period beginning 90 days before the
expiration date of a license
- Residential leasing agent - -Means a person who is employed by a broker
to engage in licensed activities limited to leasing residential real estate who
has obtained a license as provided by the Act
- Sponsoring broker - -Means the broker who certifies to the Department
sponsorship of a licensed managing broker, broker, or a residential leasing
agent
- License requirement exemptions - -According to 225 ILCS 454/5-20 the
requirements for holding a broker, managing broker, or residential leasing
agent license does not apply to the following: any person as defined in
Section 1-10 that as owner or lessor performs any of the acts described in
