Bill Text: IL HB5209 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Real Estate License Act of 2000. Removes provisions relating to sponsor cards issued by sponsoring brokers to managing brokers, brokers, or leasing agents. Adds provisions requiring a sponsoring broker to notify the Department of Financial and Professional Regulation within 24 hours of a sponsorship of a licensee in a manner provided by rule. When a licensee's employment with a sponsoring broker is terminated, requires the licensee and sponsoring broker to notify the Department of the termination within 24 hours in a manner provided by rule. Provides that the failure to provide that notification shall subject the sponsoring broker or licensee to discipline. Adds provisions regarding the Department's recognition of a sponsorship by a sponsoring broker. Makes conforming and other changes. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB5209 Detail]

Download: Illinois-2017-HB5209-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB5209 Introduced , by Rep. Tom Demmer SYNOPSIS AS INTRODUCED:
225 ILCS 454/1-10
225 ILCS 454/5-10
225 ILCS 454/5-15
225 ILCS 454/5-27
225 ILCS 454/5-28
225 ILCS 454/5-40
225 ILCS 454/5-50
225 ILCS 454/20-20
Amends the Real Estate License Act of 2000. Removes provisions relating to sponsor cards issued by sponsoring brokers to managing brokers, brokers, or leasing agents. Adds provisions requiring a sponsoring broker to notify the Department of Financial and Professional Regulation within 24 hours of a sponsorship of a licensee in a manner provided by rule. When a licensee's employment with a sponsoring broker is terminated, requires the licensee and sponsoring broker to notify the Department of the termination within 24 hours in a manner provided by rule. Provides that the failure to provide that notification shall subject the sponsoring broker or licensee to discipline. Adds provisions regarding the Department's recognition of a sponsorship by a sponsoring broker. Makes conforming and other changes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Real Estate License Act of 2000 is amended
by changing Sections 1-10, 5-10, 5-15, 5-27, 5-28, 5-40, 5-50,
and 20-20 as follows:
(225 ILCS 454/1-10)
(Section scheduled to be repealed on January 1, 2020)
Sec. 1-10. Definitions. In this Act, unless the context
otherwise requires:
"Act" means the Real Estate License Act of 2000.
"Address of record" means the designated address recorded
by the Department in the applicant's or licensee's application
file or license file as maintained by the Department's
licensure maintenance unit. It is the duty of the applicant or
licensee to inform the Department of any change of address, and
those changes must be made either through the Department's
website or by contacting the Department.
"Agency" means a relationship in which a broker or
licensee, whether directly or through an affiliated licensee,
represents a consumer by the consumer's consent, whether
express or implied, in a real property transaction.
"Applicant" means any person, as defined in this Section,

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who applies to the Department for a valid license as a managing
broker, broker, or leasing agent.
"Blind advertisement" means any real estate advertisement
that does not include the sponsoring broker's business name and
that is used by any licensee regarding the sale or lease of
real estate, including his or her own, licensed activities, or
the hiring of any licensee under this Act. The broker's
business name in the case of a franchise shall include the
franchise affiliation as well as the name of the individual
firm.
"Board" means the Real Estate Administration and
Disciplinary Board of the Department as created by Section
25-10 of this Act.
"Branch office" means a sponsoring broker's office other
than the sponsoring broker's principal office.
"Broker" means an individual, partnership, limited
liability company, corporation, or registered limited
liability partnership other than a 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:
(1) Sells, exchanges, purchases, rents, or leases real
estate.
(2) Offers to sell, exchange, purchase, rent, or lease
real estate.
(3) Negotiates, offers, attempts, or agrees to

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negotiate the sale, exchange, purchase, rental, or leasing
of real estate.
(4) Lists, offers, attempts, or agrees to list real
estate for sale, rent, lease, or exchange.
(5) Buys, sells, offers to buy or sell, or otherwise
deals in options on real estate or improvements thereon.
(6) Supervises the collection, offer, attempt, or
agreement to collect rent for the use of real estate.
(7) Advertises or represents himself or herself as
being engaged in the business of buying, selling,
exchanging, renting, or leasing real estate.
(8) Assists or directs in procuring or referring of
leads or prospects, intended to result in the sale,
exchange, lease, or rental of real estate.
(9) Assists or directs in the negotiation of any
transaction intended to result in the sale, exchange,
lease, or rental of real estate.
(10) Opens real estate to the public for marketing
purposes.
(11) Sells, rents, leases, or offers for sale or lease
real estate at auction.
(12) Prepares or provides a broker price opinion or
comparative market analysis as those terms are defined in
this Act, pursuant to the provisions of Section 10-45 of
this Act.
"Brokerage agreement" means a written or oral agreement

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between a sponsoring broker and a consumer for licensed
activities to be provided to a consumer in return for
compensation or the right to receive compensation from another.
Brokerage agreements may constitute either a bilateral or a
unilateral agreement between the broker and the broker's client
depending upon the content of the brokerage agreement. All
exclusive brokerage agreements shall be in writing.
"Broker price opinion" means an estimate or analysis of the
probable selling price of a particular interest in real estate,
which may provide a varying level of detail about the
property's condition, market, and neighborhood and information
on comparable sales. The activities of a real estate broker or
managing broker engaging in the ordinary course of business as
a broker, as defined in this Section, shall not be considered a
broker price opinion if no compensation is paid to the broker
or managing broker, other than compensation based upon the sale
or rental of real estate.
"Client" means a person who is being represented by a
licensee.
"Comparative market analysis" is an analysis or opinion
regarding pricing, marketing, or financial aspects relating to
a specified interest or interests in real estate that may be
based upon an analysis of comparative market data, the
expertise of the real estate broker or managing broker, and
such other factors as the broker or managing broker may deem
appropriate in developing or preparing such analysis or

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opinion. The activities of a real estate broker or managing
broker engaging in the ordinary course of business as a broker,
as defined in this Section, shall not be considered a
comparative market analysis if no compensation is paid to the
broker or managing broker, other than compensation based upon
the sale or rental of real estate.
"Compensation" means the valuable consideration given by
one person or entity to another person or entity in exchange
for the performance of some activity or service. Compensation
shall include the transfer of valuable consideration,
including without limitation the following:
(1) commissions;
(2) referral fees;
(3) bonuses;
(4) prizes;
(5) merchandise;
(6) finder fees;
(7) performance of services;
(8) coupons or gift certificates;
(9) discounts;
(10) rebates;
(11) a chance to win a raffle, drawing, lottery, or
similar game of chance not prohibited by any other law or
statute;
(12) retainer fee; or
(13) salary.

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"Confidential information" means information obtained by a
licensee from a client during the term of a brokerage agreement
that (i) was made confidential by the written request or
written instruction of the client, (ii) deals with the
negotiating position of the client, or (iii) is information the
disclosure of which could materially harm the negotiating
position of the client, unless at any time:
(1) the client permits the disclosure of information
given by that client by word or conduct;
(2) the disclosure is required by law; or
(3) the information becomes public from a source other
than the licensee.
"Confidential information" shall not be considered to
include material information about the physical condition of
the property.
"Consumer" means a person or entity seeking or receiving
licensed activities.
"Coordinator" means the Coordinator of Real Estate created
in Section 25-15 of this Act.
"Credit hour" means 50 minutes of classroom instruction in
course work that meets the requirements set forth in rules
adopted by the Department.
"Customer" means a consumer who is not being represented by
the licensee but for whom the licensee is performing
ministerial acts.
"Department" means the Department of Financial and

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Professional Regulation.
"Designated agency" means a contractual relationship
between a sponsoring broker and a client under Section 15-50 of
this Act in which one or more licensees associated with or
employed by the broker are designated as agent of the client.
"Designated agent" means a sponsored licensee named by a
sponsoring broker as the legal agent of a client, as provided
for in Section 15-50 of this Act.
"Dual agency" means an agency relationship in which a
licensee is representing both buyer and seller or both landlord
and tenant in the same transaction. When the agency
relationship is a designated agency, the question of whether
there is a dual agency shall be determined by the agency
relationships of the designated agent of the parties and not of
the sponsoring broker.
"Education provider" means a school licensed by the
Department offering courses in pre-license, post-license, or
continuing education required by this Act.
"Employee" or other derivative of the word "employee", when
used to refer to, describe, or delineate the relationship
between a sponsoring broker and a managing broker, broker, or a
leasing agent, shall be construed to include an independent
contractor relationship, provided that a written agreement
exists that clearly establishes and states the relationship.
All responsibilities of a broker shall remain.
"Escrow moneys" means all moneys, promissory notes or any

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other type or manner of legal tender or financial consideration
deposited with any person for the benefit of the parties to the
transaction. A transaction exists once an agreement has been
reached and an accepted real estate contract signed or lease
agreed to by the parties. Escrow moneys includes without
limitation earnest moneys and security deposits, except those
security deposits in which the person holding the security
deposit is also the sole owner of the property being leased and
for which the security deposit is being held.
"Electronic means of proctoring" means a methodology
providing assurance that the person taking a test and
completing the answers to questions is the person seeking
licensure or credit for continuing education and is doing so
without the aid of a third party or other device.
"Exclusive brokerage agreement" means a written brokerage
agreement that provides that the sponsoring broker has the sole
right, through one or more sponsored licensees, to act as the
exclusive designated agent or representative of the client and
that meets the requirements of Section 15-75 of this Act.
"Inoperative" means a status of licensure where the
licensee holds a current license under this 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 he or she is employed is currently expired, revoked,
suspended, or otherwise rendered invalid under this Act.

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"Interactive delivery method" means delivery of a course by
an instructor through a medium allowing for 2-way communication
between the instructor and a student in which either can
initiate or respond to questions.
"Leads" means the name or names of a potential buyer,
seller, lessor, lessee, or client of a licensee.
"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 for in
Section 5-5 of this Act.
"License" means the document issued by the Department
certifying that the person named thereon has fulfilled all
requirements prerequisite to licensure under this Act.
"Licensed activities" means those activities listed in the
definition of "broker" under this Section.
"Licensee" means any person, as defined in this Section,
who holds a valid unexpired license as a managing broker,
broker, or leasing agent.
"Listing presentation" means a communication between a
managing broker or broker and a consumer in which the licensee
is attempting to secure a brokerage agreement with the consumer
to market the consumer's real estate for sale or lease.
"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.

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"Medium of advertising" means any method of communication
intended to influence the general public to use or purchase a
particular good or service or real estate.
"Ministerial acts" means those acts that a licensee may
perform for a consumer that are informative or clerical in
nature and do not rise to the level of active representation on
behalf of a consumer. Examples of these acts include without
limitation (i) responding to phone inquiries by consumers as to
the availability and pricing of brokerage services, (ii)
responding to phone inquiries from a consumer concerning the
price or location of property, (iii) attending an open house
and responding to questions about the property from a consumer,
(iv) setting an appointment to view property, (v) responding to
questions of consumers walking into a licensee's office
concerning brokerage services offered or particular
properties, (vi) accompanying an appraiser, inspector,
contractor, or similar third party on a visit to a property,
(vii) describing a property or the property's condition in
response to a consumer's inquiry, (viii) completing business or
factual information for a consumer on an offer or contract to
purchase on behalf of a client, (ix) showing a client through a
property being sold by an owner on his or her own behalf, or
(x) referral to another broker or service provider.
"Office" means a broker's place of business where the
general public is invited to transact business and where
records may be maintained and licenses displayed, whether or

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not it is the broker's principal place of business.
"Person" means and includes individuals, entities,
corporations, limited liability companies, registered limited
liability partnerships, and partnerships, foreign or domestic,
except that when the context otherwise requires, the term may
refer to a single individual or other described entity.
"Personal assistant" means a licensed or unlicensed person
who has been hired for the purpose of aiding or assisting a
sponsored licensee in the performance of the sponsored
licensee's job.
"Pocket card" means the card issued by the Department to
signify that the person named on the card is currently licensed
under this Act.
"Pre-renewal period" means the period between the date of
issue of a currently valid license and the license's expiration
date.
"Proctor" means any person, including, but not limited to,
an instructor, who has a written agreement to administer
examinations fairly and impartially with a licensed education
provider.
"Real estate" means and includes leaseholds as well as any
other interest or estate in land, whether corporeal,
incorporeal, freehold, or non-freehold and whether the real
estate is situated in this State or elsewhere. "Real estate"
does not include property sold, exchanged, or leased as a
timeshare or similar vacation item or interest, vacation club

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membership, or other activity formerly regulated under the Real
Estate Timeshare Act of 1999 (repealed).
"Regular employee" means a person working an average of 20
hours per week for a person or entity who would be considered
as an employee under the Internal Revenue Service eleven main
tests in three categories being behavioral control, financial
control and the type of relationship of the parties, formerly
the twenty factor test.
"Secretary" means the Secretary of the Department of
Financial and Professional Regulation, or a person authorized
by the Secretary to act in the Secretary's stead.
"Sponsoring broker" means the broker who sponsors has
issued a sponsor card to a licensed managing broker, broker, or
a leasing agent.
"Sponsor card" means the temporary permit issued by the
sponsoring broker certifying that the managing broker, broker,
or leasing agent named thereon is employed by or associated by
written agreement with the sponsoring broker, as provided for
in Section 5-40 of this Act.
(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18;
100-534, eff. 9-22-17; revised 10-2-17.)
(225 ILCS 454/5-10)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-10. Requirements for license as leasing agent;
continuing education.

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(a) Every applicant for licensure as a leasing agent must
meet the following qualifications:
(1) be at least 18 years of age;
(2) be of good moral character;
(3) successfully complete a 4-year course of study in a
high school or secondary school or an equivalent course of
study approved by the Illinois State Board of Education;
(4) personally take and pass a written examination
authorized by the Department sufficient to demonstrate the
applicant's knowledge of the provisions of this Act
relating to leasing agents and the applicant's competence
to engage in the activities of a licensed leasing agent;
(5) provide satisfactory evidence of having completed
15 hours of instruction in an approved course of study
relating to the leasing of residential real property. The
Board shall recommend to the Department the number of hours
each topic of study shall require. The course of study
shall, among other topics, cover the provisions of this Act
applicable to leasing agents; fair housing issues relating
to residential leasing; advertising and marketing issues;
leases, applications, and credit reports; owner-tenant
relationships and owner-tenant laws; the handling of
funds; and environmental issues relating to residential
real property;
(6) complete any other requirements as set forth by
rule; and

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(7) present a valid application for issuance of an
initial license accompanied by a sponsor card and the fees
specified by rule.
(b) No applicant shall engage in any of the activities
covered by this Act until a valid sponsorship sponsor card has
been recognized by the Department issued to such applicant. The
sponsor card shall be valid for a maximum period of 45 days
after the date of issuance unless extended for good cause as
provided by rule.
(c) Successfully completed course work, completed pursuant
to the requirements of this Section, may be applied to the
course work requirements to obtain a managing broker's or
broker's license as provided by rule. The Board may recommend
to the Department and the Department may adopt requirements for
approved courses, course content, and the approval of courses,
instructors, and education providers, as well as education
provider and instructor fees. The Department may establish
continuing education requirements for licensed leasing agents,
by rule, consistent with the language and intent of this Act,
with the advice of the Board.
(d) The continuing education requirement for leasing
agents shall consist of a single core curriculum to be
established by the Department as recommended by the Board.
Leasing agents shall be required to complete no less than 6
hours of continuing education in the core curriculum for each
2-year renewal period.

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(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
(225 ILCS 454/5-15)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-15. Necessity of managing broker, broker, or leasing
agent license or sponsor card; ownership restrictions.
(a) It is unlawful for any person, corporation, limited
liability company, registered limited liability partnership,
or partnership to act as a managing broker, broker, or leasing
agent or to advertise or assume to act as such managing broker,
broker or leasing agent until a valid sponsorship has been
recognized by the Department without a properly issued sponsor
card or a license issued under this Act by the Department,
either directly or through its authorized designee.
(b) No corporation shall be granted a license or engage in
the business or capacity, either directly or indirectly, of a
broker, unless every officer of the corporation who actively
participates in the real estate activities of the corporation
holds a license as a managing broker or broker and unless every
employee who acts as a managing broker, broker, or leasing
agent for the corporation holds a license as a managing broker,
broker, or leasing agent.
(c) No partnership shall be granted a license or engage in
the business or serve in the capacity, either directly or
indirectly, of a broker, unless every general partner in the
partnership holds a license as a managing broker or broker and

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unless every employee who acts as a managing broker, broker, or
leasing agent for the partnership holds a license as a managing
broker, broker, or leasing agent. In the case of a registered
limited liability partnership (LLP), every partner in the LLP
must hold a license as a managing broker or broker and every
employee who acts as a managing broker, broker, or leasing
agent must hold a license as a managing broker, broker, or
leasing agent.
(d) No limited liability company shall be granted a license
or engage in the business or serve in the capacity, either
directly or indirectly, of a broker unless every manager in the
limited liability company or every member in a member managed
limited liability company holds a license as a managing broker
or broker and unless every other member and employee who acts
as a managing broker, broker, or leasing agent for the limited
liability company holds a license as a managing broker, broker,
or leasing agent.
(e) No partnership, limited liability company, or
corporation shall be licensed to conduct a brokerage business
where an individual leasing agent, or group of leasing agents,
owns or directly or indirectly controls more than 49% of the
shares of stock or other ownership in the partnership, limited
liability company, or corporation.
(Source: P.A. 99-227, eff. 8-3-15.)
(225 ILCS 454/5-27)

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(Section scheduled to be repealed on January 1, 2020)
Sec. 5-27. Requirements for licensure as a broker.
(a) Every applicant for licensure as a broker must meet the
following qualifications:
(1) Be at least 21 years of age. The minimum age of 21
years shall be waived for any person seeking a license as a
broker who has attained the age of 18 and can provide
evidence of the successful completion of at least 4
semesters of post-secondary school study as a full-time
student or the equivalent, with major emphasis on real
estate courses, in a school approved by the Department;
(2) Be of good moral character;
(3) Successfully complete a 4-year course of study in a
high school or secondary school approved by the Illinois
State Board of Education or an equivalent course of study
as determined by an examination conducted by the Illinois
State Board of Education which shall be verified under oath
by the applicant;
(4) (Blank);
(5) Provide satisfactory evidence of having completed
90 hours of instruction in real estate courses approved by
the Department, 15 hours of which must consist of
situational and case studies presented in the classroom or
by live, interactive webinar or online distance education
courses;
(6) Personally take and pass a written examination

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authorized by the Department;
(7) Present a valid application for issuance of a
license accompanied by a sponsor card and the fees
specified by rule.
(b) The requirements specified in items (3) and (5) of
subsection (a) of this Section do not apply to applicants who
are currently admitted to practice law by the Supreme Court of
Illinois and are currently in active standing.
(c) No applicant shall engage in any of the activities
covered by this Act until a valid sponsorship has been
recognized by the Department sponsor card has been issued to
such applicant. The sponsor card shall be valid for a maximum
period of 45 days after the date of issuance unless extended
for good cause as provided by rule.
(d) All licenses should be readily available to the public
at their place of business.
(e) An individual holding an active license as a managing
broker may return the license to the Department along with a
form provided by the Department and shall be issued a broker's
license in exchange. Any individual obtaining a broker's
license under this subsection (e) shall be considered as having
obtained a broker's license by education and passing the
required test and shall be treated as such in determining
compliance with this Act.
(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)

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(225 ILCS 454/5-28)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-28. Requirements for licensure as a managing broker.
(a) Every applicant for licensure as a managing broker must
meet the following qualifications:
(1) be at least 21 years of age;
(2) be of good moral character;
(3) have been licensed at least 2 out of the preceding
3 years as a broker;
(4) successfully complete a 4-year course of study in
high school or secondary school approved by the Illinois
State Board of Education or an equivalent course of study
as determined by an examination conducted by the Illinois
State Board of Education, which shall be verified under
oath by the applicant;
(5) provide satisfactory evidence of having completed
at least 165 hours, 120 of which shall be those hours
required pre and post-licensure to obtain a broker's
license, and 45 additional hours completed within the year
immediately preceding the filing of an application for a
managing broker's license, which hours shall focus on
brokerage administration and management and leasing agent
management and include at least 15 hours in the classroom
or by live, interactive webinar or online distance
education courses;
(6) personally take and pass a written examination

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authorized by the Department; and
(7) present a valid application for issuance of a
license accompanied by a sponsor card, an appointment as a
managing broker, and the fees specified by rule.
(b) The requirements specified in item (5) of subsection
(a) of this Section do not apply to applicants who are
currently admitted to practice law by the Supreme Court of
Illinois and are currently in active standing.
(c) No applicant shall act as a managing broker for more
than 90 days after an appointment as a managing broker has been
filed with the Department without obtaining a managing broker's
license.
(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
(225 ILCS 454/5-40)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-40. Sponsorship and Sponsor card; termination
indicated by license endorsement; association with new broker.
(a) The sponsoring broker shall notify prepare upon forms
provided by the Department of and deliver to each licensee
employed by or associated with the sponsoring broker within 24
hours of sponsorship in a manner provided by rule. a sponsor
card certifying that the person whose name appears thereon is
in fact employed by or associated with the sponsoring broker.
The sponsoring broker shall send a duplicate of each sponsor
card, along with a valid license or other authorization as

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provided by rule and the appropriate fee, to the Department
within 24 hours of issuance of the sponsor card. It is a
violation of this Act for any broker to issue a sponsor card to
any licensee or applicant unless the licensee or applicant
presents in hand a valid license or other authorization as
provided by rule.
(b) When a licensee terminates his or her employment or
association with a sponsoring broker or the employment is
terminated by the sponsoring broker, the licensee and
sponsoring broker shall obtain from the sponsoring broker his
or her license endorsed by the sponsoring broker indicating the
termination. The sponsoring broker shall surrender to the
Department a copy of the license of the licensee within 2 days
of the termination or shall notify the Department in writing of
the termination within 24 hours in a manner provided by rule
and explain why a copy of the license is not surrendered.
Failure of the sponsoring broker or licensee to notify the
Department of the termination within 24 hours surrender the
license shall subject the sponsoring broker or licensee to
discipline under Section 20-20 of this Act. The license of any
licensee whose association with a sponsoring broker is
terminated shall automatically become inoperative immediately
upon the termination and the licensee shall not be authorized
to practice until a new valid sponsorship has been recognized
by the Department unless the licensee accepts employment or
becomes associated with a new sponsoring broker pursuant to

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subsection (c) of this Section.
(c) (Blank). When a licensee accepts employment or
association with a new sponsoring broker, the new sponsoring
broker shall send to the Department a duplicate sponsor card,
along with the licensee's endorsed license or an affidavit of
the licensee of why the endorsed license is not surrendered,
and shall pay the appropriate fee prescribed by rule to cover
administrative expenses attendant to the changes in the
registration of the licensee.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/5-50)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-50. Expiration and renewal of managing broker,
broker, or leasing agent license; sponsoring broker; register
of licensees; pocket card.
(a) The expiration date and renewal period for each license
issued under this Act shall be set by rule. Except as otherwise
provided in this Section, the holder of a license may renew the
license within 90 days preceding the expiration date thereof by
completing the continuing education required by this Act and
paying the fees specified by rule.
(b) An individual whose first license is that of a broker
received on or after the effective date of this amendatory Act
of the 100th General Assembly, must provide evidence of having
completed 30 hours of post-license education in courses

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recommended by the Board and approved by the Department, 15
hours of which must consist of situational and case studies
presented in a classroom or a live, interactive webinar, online
distance education course, or home study course. Credit for
courses taken through a home study course shall require passage
of an examination approved by the Department prior to the first
renewal of their broker's license.
(c) Any managing broker, broker, or leasing agent whose
license under this Act has expired shall be eligible to renew
the license during the 2-year period following the expiration
date, provided the managing broker, broker, or leasing agent
pays the fees as prescribed by rule and completes continuing
education and other requirements provided for by the Act or by
rule. Beginning on May 1, 2012, a managing broker licensee,
broker, or leasing agent whose license has been expired for
more than 2 years but less than 5 years may have it restored by
(i) applying to the Department, (ii) paying the required fee,
(iii) completing the continuing education requirements for the
most recent pre-renewal period that ended prior to the date of
the application for reinstatement, and (iv) filing acceptable
proof of fitness to have his or her license restored, as set by
rule. A managing broker, broker, or leasing agent whose license
has been expired for more than 5 years shall be required to
meet the requirements for a new license.
(d) Notwithstanding any other provisions of this Act to the
contrary, any managing broker, broker, or leasing agent whose

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license expired while he or she was (i) on active duty with the
Armed Forces of the United States or called into service or
training by the state militia, (ii) engaged in training or
education under the supervision of the United States
preliminary to induction into military service, or (iii)
serving as the Coordinator of Real Estate in the State of
Illinois or as an employee of the Department may have his or
her license renewed, reinstated or restored without paying any
lapsed renewal fees if within 2 years after the termination of
the service, training or education by furnishing the Department
with satisfactory evidence of service, training, or education
and it has been terminated under honorable conditions.
(e) The Department shall establish and maintain a register
of all persons currently licensed by the State and shall issue
and prescribe a form of pocket card. Upon payment by a licensee
of the appropriate fee as prescribed by rule for engagement in
the activity for which the licensee is qualified and holds a
license for the current period, the Department shall issue a
pocket card to the licensee. The pocket card shall be
verification that the required fee for the current period has
been paid and shall indicate that the person named thereon is
licensed for the current renewal period as a managing broker,
broker, or leasing agent as the case may be. The pocket card
shall further indicate that the person named thereon is
authorized by the Department to engage in the licensed activity
appropriate for his or her status (managing broker, broker, or

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leasing agent). Each licensee shall carry on his or her person
his or her pocket card or, if such pocket card has not yet been
issued, a properly issued sponsor card when engaging in any
licensed activity and shall display the same on demand.
(f) The Department shall provide to the sponsoring broker a
notice of renewal for all sponsored licensees by mailing the
notice to the sponsoring broker's address of record, or, at the
Department's discretion, by an electronic means as provided for
by rule.
(g) Upon request from the sponsoring broker, the Department
shall make available to the sponsoring broker, either by mail
or by an electronic means at the discretion of the Department,
a listing of licensees under this Act who, according to the
records of the Department, are sponsored by that broker. Every
licensee associated with or employed by a broker whose license
is revoked, suspended, terminated, or expired shall be
considered as inoperative until such time as the sponsoring
broker's license is reinstated or renewed or a new valid
sponsorship has been recognized by the Department , or the
licensee changes employment as set forth in subsection (c) of
Section 5-40 of this Act.
(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
(225 ILCS 454/20-20)
(Section scheduled to be repealed on January 1, 2020)
Sec. 20-20. Grounds for discipline.

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(a) The Department may refuse to issue or renew a license,
may place on probation, suspend, or revoke any license,
reprimand, or take any other disciplinary or non-disciplinary
action as the Department may deem proper and impose a fine not
to exceed $25,000 upon any licensee or applicant under this Act
or any person who holds himself or herself out as an applicant
or licensee or against a licensee in handling his or her own
property, whether held by deed, option, or otherwise, for any
one or any combination of the following causes:
(1) Fraud or misrepresentation in applying for, or
procuring, a license under this Act or in connection with
applying for renewal of a license under this Act.
(2) The conviction of or plea of guilty or plea of nolo
contendere to a felony or misdemeanor in this State or any
other jurisdiction; or the entry of an administrative
sanction by a government agency in this State or any other
jurisdiction. Action taken under this paragraph (2) for a
misdemeanor or an administrative sanction is limited to a
misdemeanor or administrative sanction that has as an
essential element dishonesty or fraud or involves larceny,
embezzlement, or obtaining money, property, or credit by
false pretenses or by means of a confidence game.
(3) Inability to practice the profession with
reasonable judgment, skill, or safety as a result of a
physical illness, including, but not limited to,
deterioration through the aging process or loss of motor

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skill, or a mental illness or disability.
(4) Practice under this Act as a licensee in a retail
sales establishment from an office, desk, or space that is
not separated from the main retail business by a separate
and distinct area within the establishment.
(5) Having been disciplined by another state, the
District of Columbia, a territory, a foreign nation, or a
governmental agency authorized to impose discipline if at
least one of the grounds for that discipline is the same as
or the equivalent of one of the grounds for which a
licensee may be disciplined under this Act. A certified
copy of the record of the action by the other state or
jurisdiction shall be prima facie evidence thereof.
(6) Engaging in the practice of real estate brokerage
without a license or after the licensee's license or
temporary permit was expired or while the license was
inoperative.
(7) Cheating on or attempting to subvert the Real
Estate License Exam or continuing education exam.
(8) Aiding or abetting an applicant to subvert or cheat
on the Real Estate License Exam or continuing education
exam administered pursuant to this Act.
(9) Advertising that is inaccurate, misleading, or
contrary to the provisions of the Act.
(10) Making any substantial misrepresentation or
untruthful advertising.

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(11) Making any false promises of a character likely to
influence, persuade, or induce.
(12) Pursuing a continued and flagrant course of
misrepresentation or the making of false promises through
licensees, employees, agents, advertising, or otherwise.
(13) Any misleading or untruthful advertising, or
using any trade name or insignia of membership in any real
estate organization of which the licensee is not a member.
(14) Acting for more than one party in a transaction
without providing written notice to all parties for whom
the licensee acts.
(15) Representing or attempting to represent a broker
other than the sponsoring broker.
(16) Failure to account for or to remit any moneys or
documents coming into his or her possession that belong to
others.
(17) Failure to maintain and deposit in a special
account, separate and apart from personal and other
business accounts, all escrow moneys belonging to others
entrusted to a licensee while acting as a broker, escrow
agent, or temporary custodian of the funds of others or
failure to maintain all escrow moneys on deposit in the
account until the transactions are consummated or
terminated, except to the extent that the moneys, or any
part thereof, shall be:
(A) disbursed prior to the consummation or

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termination (i) in accordance with the written
direction of the principals to the transaction or their
duly authorized agents, (ii) in accordance with
directions providing for the release, payment, or
distribution of escrow moneys contained in any written
contract signed by the principals to the transaction or
their duly authorized agents, or (iii) pursuant to an
order of a court of competent jurisdiction; or
(B) deemed abandoned and transferred to the Office
of the State Treasurer to be handled as unclaimed
property pursuant to the Revised Uniform Unclaimed
Property Act. Escrow moneys may be deemed abandoned
under this subparagraph (B) only: (i) in the absence of
disbursement under subparagraph (A); (ii) in the
absence of notice of the filing of any claim in a court
of competent jurisdiction; and (iii) if 6 months have
elapsed after the receipt of a written demand for the
escrow moneys from one of the principals to the
transaction or the principal's duly authorized agent.
The account shall be noninterest bearing, unless the
character of the deposit is such that payment of interest
thereon is otherwise required by law or unless the
principals to the transaction specifically require, in
writing, that the deposit be placed in an interest bearing
account.
(18) Failure to make available to the Department all

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escrow records and related documents maintained in
connection with the practice of real estate within 24 hours
of a request for those documents by Department personnel.
(19) Failing to furnish copies upon request of
documents relating to a real estate transaction to a party
who has executed that document.
(20) Failure of a sponsoring broker or licensee to
timely provide sponsorship or termination of sponsorship
information, sponsor cards, or termination of licenses to
the Department.
(21) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud, or harm the public.
(22) Commingling the money or property of others with
his or her own money or property.
(23) Employing any person on a purely temporary or
single deal basis as a means of evading the law regarding
payment of commission to nonlicensees on some contemplated
transactions.
(24) Permitting the use of his or her license as a
broker to enable a leasing agent or unlicensed person to
operate a real estate business without actual
participation therein and control thereof by the broker.
(25) Any other conduct, whether of the same or a
different character from that specified in this Section,
that constitutes dishonest dealing.

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(26) Displaying a "for rent" or "for sale" sign on any
property without the written consent of an owner or his or
her duly authorized agent or advertising by any means that
any property is for sale or for rent without the written
consent of the owner or his or her authorized agent.
(27) Failing to provide information requested by the
Department, or otherwise respond to that request, within 30
days of the request.
(28) Advertising by means of a blind advertisement,
except as otherwise permitted in Section 10-30 of this Act.
(29) Offering guaranteed sales plans, as defined in
clause (A) of this subdivision (29), except to the extent
hereinafter set forth:
(A) A "guaranteed sales plan" is any real estate
purchase or sales plan whereby a licensee enters into a
conditional or unconditional written contract with a
seller, prior to entering into a brokerage agreement
with the seller, by the terms of which a licensee
agrees to purchase a property of the seller within a
specified period of time at a specific price in the
event the property is not sold in accordance with the
terms of a brokerage agreement to be entered into
between the sponsoring broker and the seller.
(B) A licensee offering a guaranteed sales plan
shall provide the details and conditions of the plan in
writing to the party to whom the plan is offered.

HB5209 - 32 - LRB100 17392 XWW 32558 b
(C) A licensee offering a guaranteed sales plan
shall provide to the party to whom the plan is offered
evidence of sufficient financial resources to satisfy
the commitment to purchase undertaken by the broker in
the plan.
(D) Any licensee offering a guaranteed sales plan
shall undertake to market the property of the seller
subject to the plan in the same manner in which the
broker would market any other property, unless the
agreement with the seller provides otherwise.
(E) The licensee cannot purchase seller's property
until the brokerage agreement has ended according to
its terms or is otherwise terminated.
(F) Any licensee who fails to perform on a
guaranteed sales plan in strict accordance with its
terms shall be subject to all the penalties provided in
this Act for violations thereof and, in addition, shall
be subject to a civil fine payable to the party injured
by the default in an amount of up to $25,000.
(30) Influencing or attempting to influence, by any
words or acts, a prospective seller, purchaser, occupant,
landlord, or tenant of real estate, in connection with
viewing, buying, or leasing real estate, so as to promote
or tend to promote the continuance or maintenance of
racially and religiously segregated housing or so as to
retard, obstruct, or discourage racially integrated

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housing on or in any street, block, neighborhood, or
community.
(31) Engaging in any act that constitutes a violation
of any provision of Article 3 of the Illinois Human Rights
Act, whether or not a complaint has been filed with or
adjudicated by the Human Rights Commission.
(32) Inducing any party to a contract of sale or lease
or brokerage agreement to break the contract of sale or
lease or brokerage agreement for the purpose of
substituting, in lieu thereof, a new contract for sale or
lease or brokerage agreement with a third party.
(33) Negotiating a sale, exchange, or lease of real
estate directly with any person if the licensee knows that
the person has an exclusive brokerage agreement with
another broker, unless specifically authorized by that
broker.
(34) When a licensee is also an attorney, acting as the
attorney for either the buyer or the seller in the same
transaction in which the licensee is acting or has acted as
a managing broker or broker.
(35) Advertising or offering merchandise or services
as free if any conditions or obligations necessary for
receiving the merchandise or services are not disclosed in
the same advertisement or offer. These conditions or
obligations include without limitation the requirement
that the recipient attend a promotional activity or visit a

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real estate site. As used in this subdivision (35), "free"
includes terms such as "award", "prize", "no charge", "free
of charge", "without charge", and similar words or phrases
that reasonably lead a person to believe that he or she may
receive or has been selected to receive something of value,
without any conditions or obligations on the part of the
recipient.
(36) (Blank).
(37) Violating the terms of a disciplinary order issued
by the Department.
(38) Paying or failing to disclose compensation in
violation of Article 10 of this Act.
(39) Requiring a party to a transaction who is not a
client of the licensee to allow the licensee to retain a
portion of the escrow moneys for payment of the licensee's
commission or expenses as a condition for release of the
escrow moneys to that party.
(40) Disregarding or violating any provision of this
Act or the published rules promulgated by the Department to
enforce this Act or aiding or abetting any individual,
partnership, registered limited liability partnership,
limited liability company, or corporation in disregarding
any provision of this Act or the published rules
promulgated by the Department to enforce this Act.
(41) Failing to provide the minimum services required
by Section 15-75 of this Act when acting under an exclusive

HB5209 - 35 - LRB100 17392 XWW 32558 b
brokerage agreement.
(42) Habitual or excessive use or addiction to alcohol,
narcotics, stimulants, or any other chemical agent or drug
that results in a managing broker, broker, or leasing
agent's inability to practice with reasonable skill or
safety.
(43) Enabling, aiding, or abetting an auctioneer, as
defined in the Auction License Act, to conduct a real
estate auction in a manner that is in violation of this
Act.
(44) Permitting any leasing agent or temporary leasing
agent permit holder to engage in activities that require a
broker's or managing broker's license.
(b) The Department may refuse to issue or renew or may
suspend the license of any person who fails to file a return,
pay the tax, penalty or interest shown in a filed return, or
pay any final assessment of tax, penalty, or interest, as
required by any tax Act administered by the Department of
Revenue, until such time as the requirements of that tax Act
are satisfied in accordance with subsection (g) of Section
2105-15 of the Civil Administrative Code of Illinois.
(c) The Department shall deny a license or renewal
authorized by this Act to a person who has defaulted on an
educational loan or scholarship provided or guaranteed by the
Illinois Student Assistance Commission or any governmental
agency of this State in accordance with item (5) of subsection

HB5209 - 36 - LRB100 17392 XWW 32558 b
(a) of Section 2105-15 of the Civil Administrative Code of
Illinois.
(d) In cases where the Department of Healthcare and Family
Services (formerly Department of Public Aid) has previously
determined that a licensee or a potential licensee is more than
30 days delinquent in the payment of child support and has
subsequently certified the delinquency to the Department may
refuse to issue or renew or may revoke or suspend that person's
license or may take other disciplinary action against that
person based solely upon the certification of delinquency made
by the Department of Healthcare and Family Services in
accordance with item (5) of subsection (a) of Section 2105-15
of the Civil Administrative Code of Illinois.
(e) In enforcing this Section, the Department or Board upon
a showing of a possible violation may compel an individual
licensed to practice under this Act, or who has applied for
licensure under this Act, to submit to a mental or physical
examination, or both, as required by and at the expense of the
Department. The Department or Board may order the examining
physician to present testimony concerning the mental or
physical examination of the licensee or applicant. No
information shall be excluded by reason of any common law or
statutory privilege relating to communications between the
licensee or applicant and the examining physician. The
examining physicians shall be specifically designated by the
Board or Department. The individual to be examined may have, at

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his or her own expense, another physician of his or her choice
present during all aspects of this examination. Failure of an
individual to submit to a mental or physical examination, when
directed, shall be grounds for suspension of his or her license
until the individual submits to the examination if the
Department finds, after notice and hearing, that the refusal to
submit to the examination was without reasonable cause.
If the Department or Board finds an individual unable to
practice because of the reasons set forth in this Section, the
Department or Board may require that individual to submit to
care, counseling, or treatment by physicians approved or
designated by the Department or Board, as a condition, term, or
restriction for continued, reinstated, or renewed licensure to
practice; or, in lieu of care, counseling, or treatment, the
Department may file, or the Board may recommend to the
Department to file, a complaint to immediately suspend, revoke,
or otherwise discipline the license of the individual. An
individual whose license was granted, continued, reinstated,
renewed, disciplined or supervised subject to such terms,
conditions, or restrictions, and who fails to comply with such
terms, conditions, or restrictions, shall be referred to the
Secretary for a determination as to whether the individual
shall have his or her license suspended immediately, pending a
hearing by the Department.
In instances in which the Secretary immediately suspends a
person's license under this Section, a hearing on that person's

HB5209 - 38 - LRB100 17392 XWW 32558 b
license must be convened by the Department within 30 days after
the suspension and completed without appreciable delay. The
Department and Board shall have the authority to review the
subject individual's record of treatment and counseling
regarding the impairment to the extent permitted by applicable
federal statutes and regulations safeguarding the
confidentiality of medical records.
An individual licensed under this Act and affected under
this Section shall be afforded an opportunity to demonstrate to
the Department or Board that he or she can resume practice in
compliance with acceptable and prevailing standards under the
provisions of his or her license.
(Source: P.A. 99-227, eff. 8-3-15; 100-22, eff. 1-1-18;
100-188, eff. 1-1-18; 100-534, eff. 9-22-17; revised 10-2-17.)
Section 99. Effective date. This Act takes effect upon
becoming law.