Bill Text: IL HB5551 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Real Estate License Act of 2000. Provides that for licensure as a managing broker, the person must personally take and pass a written examination on Illinois specific real estate brokerage laws authorized by the Department of Financial and Professional Regulation. Provides that approved pre-license education for licensure as a managing broker, broker, or residential leasing agent shall be valid for 2 years after the date of satisfactory completion of all required pre-license education. Provides that a nonresident broker who meets certain requirements may also operate a virtual office in the State. On January 1, 2026, repeals a provision concerning reciprocity for managing brokers and brokers licensed in another state. Provides that on and after January 1, 2026, applications for licensure based upon reciprocal agreements shall not be accepted. Provides that licenses granted under reciprocal agreements prior to January 1, 2026 shall remain in force and may be renewed in the same manner as provided for a broker or managing broker license under the Act. Requires fair housing training as part of the continuing education requirements. Sets forth provisions concerning licensure of managing brokers and brokers licensed under the laws of another state or jurisdiction of the United States and authorizing virtual offices. Makes changes in provisions concerning definitions; exemptions from licensure; continuing education; disclosure of compensation; employment agreements; agency relationship disclosure; grounds for discipline; citations; illegal discrimination; fines and penalties; a scholarship program; funds; and licensing of education provider instructors. Makes a conforming change in the State Finance Act. Effective January 1, 2025, except that certain provisions are effective immediately.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced) 2024-04-19 - Rule 19(a) / Re-referred to Rules Committee [HB5551 Detail]

Download: Illinois-2023-HB5551-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5551 Introduced , by Rep. Jenn Ladisch Douglass SYNOPSIS AS INTRODUCED:
See Index
Amends the Real Estate License Act of 2000. Provides that for licensure as a managing broker, the person must personally take and pass a written examination on Illinois specific real estate brokerage laws authorized by the Department of Financial and Professional Regulation. Provides that approved pre-license education for licensure as a managing broker, broker, or residential leasing agent shall be valid for 2 years after the date of satisfactory completion of all required pre-license education. Provides that a nonresident broker who meets certain requirements may also operate a virtual office in the State. On January 1, 2026, repeals a provision concerning reciprocity for managing brokers and brokers licensed in another state. Provides that on and after January 1, 2026, applications for licensure based upon reciprocal agreements shall not be accepted. Provides that licenses granted under reciprocal agreements prior to January 1, 2026 shall remain in force and may be renewed in the same manner as provided for a broker or managing broker license under the Act. Requires fair housing training as part of the continuing education requirements. Sets forth provisions concerning licensure of managing brokers and brokers licensed under the laws of another state or jurisdiction of the United States and authorizing virtual offices. Makes changes in provisions concerning definitions; exemptions from licensure; continuing education; disclosure of compensation; employment agreements; agency relationship disclosure; grounds for discipline; citations; illegal discrimination; fines and penalties; a scholarship program; funds; and licensing of education provider instructors. Makes a conforming change in the State Finance Act. Effective January 1, 2025, except that certain provisions are effective immediately.
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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 State Finance Act is amended by adding
Section 5.1015 as follows:
(30 ILCS 105/5.1015 new)
Sec. 5.1015. The Real Estate Recovery Fund.
Section 10. The Real Estate License Act of 2000 is amended
by changing Sections 1-10, 5-20, 5-25, 5-28, 5-35, 5-45, 5-60,
5-70, 10-10, 10-20, 15-35, 15-50, 20-20, 20-20.1, 20-50,
20-82, 25-25, 25-30, 25-35, 30-5, 30-15, and 30-25 and by
adding Sections 5-60.1 and 5-60.5 as follows:
(225 ILCS 454/1-10)
(Section scheduled to be repealed on January 1, 2030)
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.
"Agency" means a relationship in which a broker or

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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,
who applies to the Department for a valid license as a managing
broker, broker, or residential leasing agent.
"Blind advertisement" means any real estate advertisement
that is used by a licensee regarding the sale or lease of real
estate, licensed activities, or the hiring of any licensee
under this Act that does not include the sponsoring broker's
complete business name or, in the case of electronic
advertisements, does not provide a direct link to a display
with all the required disclosures. 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.
"Broker" means an individual, entity, corporation, foreign
or domestic partnership, limited liability company, registered
limited liability partnership, or other business entity 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:
(1) Sells, exchanges, purchases, rents, or leases real

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estate.
(2) Offers to sell, exchange, purchase, rent, or lease
real estate.
(3) Negotiates, offers, attempts, or agrees to
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) 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 contracts 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 2 or more
occasions in any 12-month period.
(6) Supervises the collection, offer, attempt, or
agreement to collect rent for the use of real estate.
(7) Advertises or represents oneself as being engaged
in the business of buying, selling, exchanging, renting,
or leasing real estate.
(8) Assists or directs in procuring or referring of

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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 an a written or oral agreement
between a sponsoring broker and a consumer for licensed
activities, or the performance of future 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 and may be exclusive
or non-exclusive.
"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

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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. A broker price opinion shall not
be considered an appraisal within the meaning of the Real
Estate Appraiser Licensing Act of 2002, any amendment to that
Act, or any successor Act.
"Client" means a person who is being represented by a
licensee.
"Comparative market analysis" means 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
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. A comparative market
analysis shall not be considered an appraisal within the

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meaning of the Real Estate Appraiser Licensing Act of 2002,
any amendment to that Act, or any successor Act.
"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.
"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

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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 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.
"Department" means the Department of Financial and
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.

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"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.
"Designated managing broker" means a managing 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.
"Director" means the Director of Real Estate within the
Department of Financial and Professional Regulation.
"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 residential leasing agent, shall be construed to include an
independent contractor relationship, provided that a written
agreement exists that clearly establishes and states the

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relationship.
"Escrow moneys" means all moneys, promissory notes, or any
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 agent or representative of the client and that
meets the requirements of Section 15-75 of this Act.
"Inactive" 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

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broker with whom the licensee is associated or by whom the
licensee is employed is currently expired, revoked, suspended,
or otherwise rendered invalid under this 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, shall immediately become inactive and
that entity shall be prohibited from engaging in any licensed
activities.
"Leads" means the name or names of a potential buyer,
seller, lessor, lessee, or client of a licensee.
"License" means the privilege conferred by the Department
to a person that has fulfilled all requirements prerequisite
to any type of licensure under this Act.
"Licensed activities" means those activities listed in the
definition of "broker" under this Section.
"Licensee" means any person licensed under this Act.
"Listing presentation" means any communication, written or
oral and by any means or media, 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 licensee who may be authorized
to assume responsibilities as a designated managing broker for
licensees in one or, in the case of a multi-office company,
more than one office, upon appointment by the sponsoring
broker and registration with the Department. A managing broker

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may act as one's own sponsor.
"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, including, but not
limited to, print, electronic, social media, and digital
forums.
"Non-exclusive brokerage agreement" means a written
brokerage agreement that provides that the sponsoring broker
has the non-exclusive right, through one or more sponsored
licensees, to act as an agent or representative of the client
for the performance of licensed activities and meets the
requirements of Section 15-50 of this Act.
"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 readily available,
whether or not it is the broker's principal place of business.
"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.
"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.

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"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
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 rules for
classifying workers.
"Renewal period" means the period beginning 90 days prior
to 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 for in Section 5-5 of this Act.
"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 certifies to the
Department the broker's sponsorship of a licensed managing
broker, broker, or a residential leasing agent.
"Sponsorship" means that a sponsoring broker has certified
to the Department that a managing broker, broker, or

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residential leasing agent is employed by or associated by
written agreement with the sponsoring broker and the
Department has registered the sponsorship, as provided for in
Section 5-40 of this Act.
"Team" means any 2 or more licensees who work together to
provide real estate brokerage services, represent themselves
to the public as being part of a team or group, are identified
by a team name that is different than their sponsoring
broker's name, and together are supervised by the same
managing broker and sponsored by the same sponsoring broker.
"Team" does not mean a separately organized, incorporated, or
legal entity.
(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
(225 ILCS 454/5-20)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-20. Exemptions from managing broker, broker, or
residential leasing agent license requirement; Department
exemption from education provider and related licenses. The
requirement for holding a license under this Article 5 shall
not apply to:
(1) Any person, as defined in Section 1-10, who: (A)
is the that as owner or lessor of real property who
performs any of the acts described in the definition of
"broker" under Section 1-10 of this Act only as it relates
to the owned or leased property; or (B) is with reference

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to property owned or leased by it, or to the regular
employee who, in the course of the employee's duties and
incidental to employees thereof with respect to the
property so owned or leased, where such acts are performed
in the regular course of or as an incident to the
management, sale, or other disposition of such property
and the investment of the owned or leased property
performs therein, if such regular employees do not perform
any of the acts described in the definition of "broker"
under Section 1-10 of this Act in connection with a
vocation of selling or leasing any real estate or the
improvements thereon not so owned or leased. The exemption
in this item (1) does not apply to the person, the person's
employees, or the person's agents performing licensed
activity for property not owned or leased by that person.
(2) An attorney in fact acting under a duly executed
and recorded power of attorney to convey real estate from
the owner or lessor or the services rendered by an
attorney at law in the performance of the attorney's duty
as an attorney at law.
(3) Any person acting as receiver, trustee in
bankruptcy, administrator, executor, or guardian or while
acting under a court order or under the authority of a will
or testamentary trust.
(4) Any person acting as a resident manager for the
owner or any employee acting as the resident manager for a

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broker managing an apartment building, duplex, or
apartment complex, when the resident manager resides on
the premises, the premises is the primary residence of the
resident manager, and the resident manager is engaged in
the leasing of that property.
(5) Any officer or employee of a federal agency in the
conduct of official duties.
(6) Any officer or employee of the State government or
any political subdivision thereof performing official
duties.
(7) Any multiple listing service or other similar
information exchange that is engaged in the collection and
dissemination of information concerning real estate
available for sale, purchase, lease, or exchange for the
purpose of providing licensees with a system by which
licensees may cooperatively share information along with
which no other licensed activities, as defined in Section
1-10 of this Act, are provided.
(8) Railroads and other public utilities regulated by
the State of Illinois, or the officers or full-time
employees thereof, unless the performance of any licensed
activities is in connection with the sale, purchase,
lease, or other disposition of real estate or investment
therein that does not require the approval of the
appropriate State regulatory authority.
(9) Any medium of advertising in the routine course of

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selling or publishing advertising along with which no
other licensed activities, as defined in Section 1-10 of
this Act, are provided.
(10) Any resident lessee of a residential dwelling
unit who refers for compensation to the owner of the
dwelling unit, or to the owner's agent, prospective
lessees of dwelling units in the same building or complex
as the resident lessee's unit, but only if the resident
lessee (i) refers no more than 3 prospective lessees in
any 12-month period, (ii) receives compensation of no more
than $5,000 or the equivalent of 2 months' rent, whichever
is less, in any 12-month period, and (iii) limits
activities to referring prospective lessees to the owner,
or the owner's agent, and does not show a residential
dwelling unit to a prospective lessee, discuss terms or
conditions of leasing a dwelling unit with a prospective
lessee, or otherwise participate in the negotiation of the
leasing of a dwelling unit.
(11) The purchase, sale, or transfer of a timeshare or
similar vacation item or interest, vacation club
membership, or other activity formerly regulated under the
Real Estate Timeshare Act of 1999 (repealed).
(12) (Blank).
(13) Any person who is licensed without examination
under Section 10-25 (now repealed) of the Auction License
Act is exempt from holding a managing broker's or broker's

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license under this Act for the limited purpose of selling
or leasing real estate at auction, so long as:
(A) that person has made application for said
exemption by July 1, 2000;
(B) that person verifies to the Department that
the person has sold real estate at auction for a period
of 5 years prior to licensure as an auctioneer;
(C) the person has had no lapse in the licensure as
an auctioneer; and
(D) the license issued under the Auction License
Act has not been disciplined for violation of those
provisions of Article 20 of the Auction License Act
dealing with or related to the sale or lease of real
estate at auction.
(14) A person who holds a valid license under the
Auction License Act and a valid real estate auction
certification and conducts auctions for the sale of real
estate under Section 5-32 of this Act.
(15) A hotel operator who is registered with the
Illinois Department of Revenue and pays taxes under the
Hotel Operators' Occupation Tax Act and rents a room or
rooms in a hotel as defined in the Hotel Operators'
Occupation Tax Act for a period of not more than 30
consecutive days and not more than 60 days in a calendar
year or a person who participates in an online marketplace
enabling persons to rent out all or part of the person's

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owned residence.
(16) Notwithstanding any provisions to the contrary,
the Department and its employees shall be exempt from
education, course provider, instructor, and course license
requirements and fees while acting in an official capacity
on behalf of the Department. Courses offered by the
Department shall be eligible for continuing education
credit.
(Source: P.A. 103-236, eff. 1-1-24.)
(225 ILCS 454/5-25)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-25. Good moral character.
(a) When an applicant has had a license revoked on a prior
occasion or when an applicant is found to have committed any of
the practices enumerated in Section 20-20 of this Act or when
an applicant has been convicted of or enters a plea of guilty
or nolo contendere to forgery, embezzlement, obtaining money
under false pretenses, larceny, extortion, conspiracy to
defraud, or any other similar offense or offenses or has been
convicted of a felony involving moral turpitude in any court
of competent jurisdiction in this or any other state,
district, or territory of the United States or of a foreign
country, the Department Board may consider the prior
revocation, conduct, or conviction in its determination of the
applicant's moral character and whether to grant the applicant

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a license.
(b) In its consideration of the prior revocation, conduct,
or conviction, the Department Board shall take into account
the nature of the conduct, any aggravating or extenuating
circumstances, the time elapsed since the revocation, conduct,
or conviction, the rehabilitation or restitution performed by
the applicant, mitigating factors, and any other factors that
the Department Board deems relevant, including, but not
limited to:
(1) the lack of direct relation of the offense for
which the applicant was previously convicted to the
duties, functions, and responsibilities of the position
for which a license is sought;
(2) unless otherwise specified, whether 5 years since
a felony conviction or 3 years since release from
confinement for the conviction, whichever is later, have
passed without a subsequent conviction;
(3) if the applicant was previously licensed or
employed in this State or other states or jurisdictions,
the lack of prior misconduct arising from or related to
the licensed position or position of employment;
(4) the age of the person at the time of the criminal
offense;
(5) if, due to the applicant's criminal conviction
history, the applicant would be explicitly prohibited by
federal rules or regulations from working in the position

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for which a license is sought;
(6) successful completion of sentence and, for
applicants serving a term of parole or probation, a
progress report provided by the applicant's probation or
parole officer that documents the applicant's compliance
with conditions of supervision;
(7) evidence of the applicant's present fitness and
professional character;
(8) evidence of rehabilitation or rehabilitative
effort during or after incarceration, or during or after a
term of supervision, including, but not limited to, a
certificate of good conduct under Section 5-5.5-25 of the
Unified Code of Corrections or a certificate of relief
from disabilities under Section 5-5.5-10 of the Unified
Code of Corrections; and
(9) any other mitigating factors that contribute to
the person's potential and current ability to perform the
job duties.
(c) The Department shall not require applicants to report
the following information and shall not consider the following
criminal history records in connection with an application for
licensure or registration:
(1) juvenile adjudications of delinquent minors as
defined in Section 5-105 of the Juvenile Court Act of 1987
subject to the restrictions set forth in Section 5-130 of
that Act;

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(2) law enforcement records, court records, and
conviction records of an individual who was 17 years old
at the time of the offense and before January 1, 2014,
unless the nature of the offense required the individual
to be tried as an adult;
(3) records of arrests not followed by a charge or
conviction;
(4) records of arrests where the charges were
dismissed unless related to the practice of the
profession; however, applicants shall not be asked to
report any arrests, and an arrest not followed by a
conviction shall not be the basis of a denial and may be
used only to assess an applicant's rehabilitation;
(5) convictions overturned by a higher court; or
(6) convictions or arrests that have been sealed or
expunged.
(d) If an applicant makes a false statement of material
fact on the application, the false statement may in itself be
sufficient grounds to revoke or refuse to issue a license.
(e) A licensee shall report to the Department, in a manner
prescribed by the Department and within 30 days after the
occurrence of: (1) any conviction of or plea of guilty, or nolo
contendere to forgery, embezzlement, obtaining money under
false pretenses, larceny, extortion, conspiracy to defraud, or
any similar offense or offenses or any conviction of a felony
involving moral turpitude; (2) the entry of an administrative

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sanction by a government agency in this State or any other
jurisdiction that has as an essential element of dishonesty or
fraud or involves larceny, embezzlement, or obtaining money,
property, or credit by false pretenses; or (3) any conviction
of or plea of guilty or nolo contendere to a crime that
subjects the licensee to compliance with the requirements of
the Sex Offender Registration Act.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
(225 ILCS 454/5-28)
(Section scheduled to be repealed on January 1, 2030)
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 20 years of age;
(2) be of good moral character;
(3) have been licensed at least 2 consecutive years
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 state in
which the school is located, or a State of Illinois High
School Diploma, 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

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required pre-licensure 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
residential 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 on
Illinois specific real estate brokerage laws authorized by
the Department; and
(7) submit a valid application for issuance of a
license accompanied by 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.
(Source: P.A. 101-357, eff. 8-9-19; 102-1100, eff. 1-1-23.)
(225 ILCS 454/5-35)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-35. Examination; managing broker, broker, or
residential leasing agent.
(a) The Department shall authorize examinations at such
times and places as it may designate. The examination shall be
of a character to give a fair test of the qualifications of the

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applicant to practice as a managing broker, broker, or
residential leasing agent. Applicants for examination as a
managing broker, broker, or residential leasing agent shall be
required to pay, either to the Department or the designated
testing service, a fee covering the cost of providing the
examination. Failure to appear for the examination on the
scheduled date, at the time and place specified, after the
applicant's application for examination has been received and
acknowledged by the Department or its designated testing
service, shall result in the forfeiture of the examination
fee. An applicant shall be eligible to take the examination
only after successfully completing the education requirements
and attaining the minimum age provided for in Article 5 of this
Act. Approved pre-license education, as prescribed by this Act
for licensure as a managing broker, broker, or residential
leasing agent, shall be valid for 2 years after the date of
satisfactory completion of all required pre-license education.
Each applicant shall be required to establish compliance with
the eligibility requirements in the manner provided by the
rules promulgated for the administration of this Act.
(b) If a person who has received a passing score on the
written examination described in this Section fails to submit
an application and meet all requirements for a license under
this Act within one year after receiving a passing score on the
examination, credit for the examination shall terminate. The
person thereafter may make a new application for examination.

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(c) If an applicant has failed an examination 4
consecutive times, the applicant must repeat the pre-license
education required to sit for that examination. For the
purposes of this Section, the fifth attempt shall be the same
as the first, and the applicant must complete a new
application for examination. Approved education, as prescribed
by this Act for licensure as a managing broker, broker, or
residential leasing agent, shall be valid for 2 years after
the date of satisfactory completion of the education.
(d) The Department may employ consultants for the purposes
of preparing and conducting examinations.
(e) Each applicant shall establish the applicant's
compliance with the eligibility requirements in the manner
provided by the rules adopted for the administration of this
Act.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/5-45)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-45. Offices.
(a) If a sponsoring broker maintains more than one office
within the State, the sponsoring broker shall notify the
Department in a manner prescribed by the Department for each
office other than the sponsoring broker's principal place of
business. The brokerage license shall be displayed
conspicuously in each office. The name of each branch office

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shall be the same as that of the sponsoring broker's principal
office or shall clearly delineate the office's relationship
with the principal office.
(b) The sponsoring broker shall name a designated managing
broker for each office and the sponsoring broker shall be
responsible for supervising all designated managing brokers.
The sponsoring broker shall notify the Department in a manner
prescribed by the Department of the name of all designated
managing brokers of the sponsoring broker and the office or
offices they manage. Any changes in designated managing
brokers shall be reported to the Department in a manner
prescribed by the Department within 15 days of the change.
Failure to do so shall subject the sponsoring broker to
discipline under Section 20-20 of this Act.
(c) The sponsoring broker shall, within 24 hours, notify
the Department in a manner prescribed by the Department of any
opening, closing, or change in location of any office.
(d) Except as provided in this Section, each sponsoring
broker shall maintain an office, or place of business within
this State for the transaction of real estate business, shall
conspicuously display an identification sign on the outside of
the physical office of adequate size and visibility. Any
record required by this Act to be created or maintained shall
be, in the case of a physical record, securely stored and
accessible for inspection by the Department at the sponsoring
broker's principal office and, in the case of an electronic

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record, securely stored in the format in which it was
originally generated, sent, or received and accessible for
inspection by the Department by secure electronic access to
the record. Any record relating to a transaction of a special
account shall be maintained for a minimum of 5 years, and any
electronic record shall be backed up at least monthly. The
physical office or place of business shall not be located in
any retail or financial business establishment unless it is
clearly separated from the other business and is situated
within a distinct area within the establishment.
(e) A nonresident broker who is licensed in this State by
examination or pursuant to the provisions of Section 5-60 or
5-60.5 of this Act shall not be required to maintain a definite
office or place of business in this State so long as the broker
provided all of the following conditions are met:
(1) the broker maintains an active broker's license in
the broker's other state of licensure domicile;
(2) the broker maintains an office in the broker's
other state of licensure domicile; and
(3) files the broker has filed with the Department
written statements appointing the Secretary to act as the
broker's agent upon whom all judicial and other process or
legal notices directed to the licensee may be served and
agreeing to abide by all of the provisions of this Act with
respect to the broker's real estate activities within the
State of Illinois and submitting to the jurisdiction of

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the Department.
The statements under subdivision (3) of this Section shall
be in form and substance the same as those statements required
under Section 5-60 of this Act and shall operate to the same
extent.
(f) The Department may adopt rules to regulate the
operation of virtual offices that do not have a fixed
location. A broker who qualifies under subsection (e) of this
Section may also operate a virtual office in the State subject
to all requirements of this Act and the rules adopted under
this Act.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
(225 ILCS 454/5-60)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-60. Managing broker licensed in another state;
broker licensed in another state; reciprocal agreements; agent
for service of process.
(a) A managing broker's license may be issued by the
Department to a managing broker or its equivalent licensed
under the laws of another state of the United States, under the
following conditions:
(1) the managing broker holds a managing broker's
license in a state that has entered into a reciprocal
agreement with the Department;
(2) the standards for that state for licensing as a

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managing broker are substantially equal to or greater than
the minimum standards in the State of Illinois;
(3) the managing broker has been actively practicing
as a managing broker in the managing broker's state of
licensure for a period of not less than 2 years,
immediately prior to the date of application;
(4) the managing broker furnishes the Department with
a statement under seal of the proper licensing authority
of the state in which the managing broker is licensed
showing that the managing broker has an active managing
broker's license, that the managing broker is in good
standing, and any disciplinary action taken against the
managing broker in that state;
(5) the managing broker passes a test on Illinois
specific real estate brokerage laws; and
(6) the managing broker was licensed by an examination
in the state that has entered into a reciprocal agreement
with the Department.
(b) A broker's license may be issued by the Department to a
broker or its equivalent licensed under the laws of another
state of the United States, under the following conditions:
(1) the broker holds a broker's license in a state
that has entered into a reciprocal agreement with the
Department;
(2) the standards for that state for licensing as a
broker are substantially equivalent to or greater than the

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minimum standards in the State of Illinois;
(3) (blank);
(4) the broker furnishes the Department with a
statement under seal of the proper licensing authority of
the state in which the broker is licensed showing that the
broker has an active broker's license, that the broker is
in good standing, and any disciplinary action taken
against the broker in that state;
(5) the broker passes a test on Illinois specific real
estate brokerage laws; and
(6) the broker was licensed by an examination in a
state that has entered into a reciprocal agreement with
the Department.
(c) (Blank).
(d) As a condition precedent to the issuance of a license
to a managing broker or broker pursuant to this Section, the
managing broker or broker shall agree in writing to abide by
all the provisions of this Act with respect to real estate
activities within the State of Illinois and submit to the
jurisdiction of the Department as provided in this Act. The
agreement shall be filed with the Department and shall remain
in force for so long as the managing broker or broker is
licensed by this State and thereafter with respect to acts or
omissions committed while licensed as a managing broker or
broker in this State.
(e) The Prior to the issuance of any license to any

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managing broker or broker pursuant to this Section,
verification of active licensure issued for the conduct of
such business in any other state must be filed with the
Department by the managing broker or broker, and the same fees
must be paid as provided in this Act for the obtaining of a
managing broker's or broker's license in this State.
(f) Licenses previously granted under reciprocal
agreements with other states shall remain in force so long as
the Department has a reciprocal agreement with the state that
includes the requirements of this Section, unless that license
is suspended, revoked, or terminated by the Department for any
reason provided for suspension, revocation, or termination of
a resident licensee's license. Licenses granted under
reciprocal agreements may be renewed in the same manner as a
resident's license.
(g) Prior to the issuance of a license to a nonresident
managing broker or broker, the managing broker or broker shall
file with the Department, in a manner prescribed by the
Department, a designation in writing that appoints the
Secretary to act as agent upon whom all judicial and other
process or legal notices directed to the managing broker or
broker may be served. Service upon the agent so designated
shall be equivalent to personal service upon the licensee.
Copies of the appointment, certified by the Secretary, shall
be deemed sufficient evidence thereof and shall be admitted in
evidence with the same force and effect as the original

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thereof might be admitted. In the written designation, the
managing broker or broker shall agree that any lawful process
against the licensee that is served upon the agent shall be of
the same legal force and validity as if served upon the
licensee and that the authority shall continue in force so
long as any liability remains outstanding in this State. Upon
the receipt of any process or notice, the Secretary shall
forthwith deliver a copy of the same by regular mail or email
to the last known business address or email address of the
licensee.
(h) (Blank). Any person holding a valid license under this
Section shall be eligible to obtain a managing broker's
license or a broker's license without examination should that
person change their state of domicile to Illinois and that
person otherwise meets the qualifications for licensure under
this Act.
(i) This Section is repealed on January 1, 2026.
(Source: P.A. 103-236, eff. 1-1-24.)
(225 ILCS 454/5-60.1 new)
Sec. 5-60.1. Applications for licensure based upon
reciprocal agreements. On and after January 1, 2026 (the
repeal date of Section 5-60), applications for licensure based
upon reciprocal agreements shall not be accepted. Licenses
granted under reciprocal agreements prior to January 1, 2026
shall remain in force and may be renewed in the same manner as

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provided for a broker or managing broker license under Section
5-50 of this Act and by rule.
(225 ILCS 454/5-60.5 new)
Sec. 5-60.5. Managing broker licensed in another state;
broker licensed in another state; endorsement requirements;
agent for service of process.
(a) A managing broker's license may be issued by the
Department to a managing broker or its equivalent licensed
under the laws of another state or jurisdiction of the United
States under the following conditions:
(1) the managing broker holds an active managing
broker's license or its equivalent in another state or
jurisdiction;
(2) the managing broker has been actively practicing
as a managing broker or its license equivalent in the
managing broker's state or jurisdiction of licensure for a
period of not less than 2 years immediately prior to the
date of application;
(3) the managing broker furnishes the Department with
an official statement from the proper licensing authority
of each state or jurisdiction in which the managing broker
is licensed certifying (i) that the managing broker has an
active license, (ii) that the managing broker is in good
standing, and (iii) any history of discipline against the
managing broker in that state or jurisdiction of

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licensure;
(4) the managing broker passes a test on Illinois
specific real estate brokerage laws; and
(5) the managing broker provides proof of successful
completion of a pre-license endorsement course approved by
the Department.
(b) A broker's license may be issued by the Department to a
broker or its equivalent licensed under the laws of another
state or jurisdiction of the United States under the following
conditions:
(1) the broker holds an active broker's license or its
equivalent in another state or jurisdiction;
(2) the broker furnishes the Department with an
official statement from the proper licensing authority of
each state or jurisdiction in which the broker is licensed
certifying (i) whether the broker has an active license,
(ii) that the broker is in good standing, and (iii) any
history of discipline against the broker in that state or
jurisdiction of licensure;
(3) the broker passes a test on Illinois specific real
estate brokerage laws;
(4) the broker provides proof of successful completion
of a pre-license endorsement course approved by the
Department; and
(5) if the broker has been actively practicing as a
broker or its license equivalent in any other state or

HB5551 - 35 - LRB103 37441 RTM 67563 b
jurisdiction for less than 2 years immediately prior to
the date of application, the broker must complete the 45
hours of post-license broker education prescribed in this
Act and by rule.
(c) As a condition precedent to the issuance of a license
to a managing broker or broker pursuant to this Section, the
managing broker or broker shall agree to abide by all the
provisions of this Act with respect to managing broker's or
broker's real estate activities within the State of Illinois
and submit to the jurisdiction of the Department as provided
in this Act. The agreement shall remain in force for so long as
the managing broker or broker is licensed by this State and
thereafter with respect to acts or omissions committed while
licensed in this State.
(d) Prior to the issuance of a license to a nonresident
managing broker or broker, the managing broker or broker shall
file with the Department a designation in writing that
appoints the Secretary to act as the managing broker's or
broker's agent upon whom all judicial and other process or
legal notices directed to the managing broker or broker may be
served. Service upon the Secretary shall be equivalent to
personal service upon the licensee. Copies of the appointment,
certified by the Secretary, shall be deemed sufficient
evidence and shall be admitted into evidence with the same
force and effect as if the original is admitted.
(e) The same fees must be paid as provided in this Act for

HB5551 - 36 - LRB103 37441 RTM 67563 b
obtaining a managing broker's or broker's license in this
State.
(f) In the written designation, the managing broker or
broker shall agree that any lawful process against the
licensee that is served upon the agent shall be of the same
legal force and validity as if served upon the licensee and
that the authority shall continue in force so long as any
liability remains outstanding in this State. Upon the receipt
of any process or notice, the Secretary shall deliver a copy of
the same by regular mail or email to the mailing address or
email address of record of the licensee.
(225 ILCS 454/5-70)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-70. Continuing education requirement; managing
broker or broker.
(a) The requirements of this Section apply to all managing
brokers and brokers.
(b) Except as otherwise provided in this Section, each
person who applies for renewal of a license as a managing
broker or broker must successfully complete 12 hours of real
estate continuing education courses recommended by the Board
and approved by the Department during the current term of the
license. In addition, those licensees renewing or obtaining a
managing broker's license must successfully complete a 12-hour
broker management continuing education course approved by the

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Department during the current term of the license. The broker
management continuing education course must be completed in
the classroom, or through a live, interactive webinar, or in
an online distance education format. No license may be renewed
except upon the successful completion of the required courses
or their equivalent or upon a waiver of those requirements for
good cause shown as determined by the Secretary upon the
recommendation of the Board. The requirements of this Article
are applicable to all managing brokers and brokers except
those managing brokers and brokers who, during the current
term of licensure:
(1) serve in the armed services of the United States;
(2) serve as an elected State or federal official;
(3) serve as a full-time employee of the Department;
or
(4) are admitted to practice law pursuant to Illinois
Supreme Court rule.
(c) (Blank).
(d) A person receiving an initial license during the 90
days before the renewal date shall not be required to complete
the continuing education courses provided for in subsection
(b) of this Section as a condition of initial license renewal.
(e) The continuing education requirement for brokers and
managing brokers shall consist of a single core curriculum,
which must include at least 2 credit hours of fair housing
training, and an elective curriculum, to be recommended by the

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Board and approved by the Department in accordance with this
subsection. With the exception of the fair housing training,
the The core curriculum shall not be further divided into
subcategories or divisions of instruction. The core curriculum
shall consist of 6 total 4 hours during the current term of the
license on subjects that may include, but are not limited to,
advertising, agency, disclosures, escrow, fair housing,
residential leasing agent management, and license law, and
must include at least 2 credit hours of fair housing training.
The amount of time allotted to each of the remaining these
subjects shall be recommended by the Board and determined by
the Department.
The Department, upon the recommendation of the Board,
shall review the core curriculum every 4 years, at a minimum,
and shall revise the curriculum if necessary. However, the
core curriculum's total hourly requirement shall only be
subject to change by amendment of this subsection, and any
change to the core curriculum shall not be effective for a
period of 6 months after such change is made by the Department.
The Department shall provide notice to all approved education
providers of any changes to the core curriculum. When
determining whether revisions of the core curriculum's
subjects or specific time requirements are necessary, the
Board shall consider recent changes in applicable laws, new
laws, and areas of the license law and the Department policy
that the Board deems appropriate, and any other subject areas

HB5551 - 39 - LRB103 37441 RTM 67563 b
the Board deems timely and applicable in order to prevent
violations of this Act and to protect the public. In
establishing a recommendation to the Department regarding the
elective curriculum, the Board shall consider subjects that
cover the various aspects of the practice of real estate that
are covered under the scope of this Act.
(f) The subject areas of continuing education courses
recommended by the Board and approved by the Department shall
be meant to protect the professionalism of the industry, the
consumer, and the public and prevent violations of this Act
and may include, without limitation, the following:
(1) license law and escrow;
(2) antitrust;
(3) fair housing;
(4) agency;
(5) appraisal;
(6) property management;
(7) residential brokerage;
(8) farm property management;
(9) transaction management rights and duties of
parties in a transaction;
(10) commercial brokerage and leasing;
(11) real estate financing;
(12) disclosures;
(13) residential leasing agent management;
(14) advertising;

HB5551 - 40 - LRB103 37441 RTM 67563 b
(15) broker supervision and designated managing broker
responsibility;
(16) professional conduct; and
(17) use of technology; and .
(18) diversity, equity, and inclusion.
(g) In lieu of credit for those courses listed in
subsection (f) of this Section, credit may be earned for
serving as a licensed instructor in an approved course of
continuing education. The amount of credit earned for teaching
a course shall be the amount of continuing education credit
for which the course is approved for licensees taking the
course.
(h) Credit hours may be earned for self-study programs
approved by the Department.
(i) A managing broker or broker may earn credit for a
specific continuing education course only once during the
current term of the license.
(j) No more than 12 hours of continuing education credit
may be taken in one calendar day.
(k) To promote the offering of a uniform and consistent
course content, the Department may provide for the development
of a single broker management course to be offered by all
education providers who choose to offer the broker management
continuing education course. The Department may contract for
the development of the 12-hour broker management continuing
education course with an outside vendor or consultant and, if

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the course is developed in this manner, the Department or the
outside consultant shall license the use of that course to all
approved education providers who wish to provide the course.
(l) Except as specifically provided in this Act,
continuing education credit hours may not be earned for
completion of pre-license or post-license courses. The courses
comprising the approved 45-hour post-license curriculum for
broker licensees shall satisfy the continuing education
requirement for the initial broker license term. The approved
45-hour managing broker pre-license brokerage administration
and management course shall satisfy the 12-hour broker
management continuing education requirement for the initial
managing broker license term.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
(225 ILCS 454/10-10)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-10. Disclosure of compensation.
(a) A licensee must disclose to a client the sponsoring
broker's compensation and policy, including the terms of
compensation and any amounts offered with regard to
cooperating with brokers who represent other parties in a
transaction.
(b) A licensee must disclose to a client all sources of
compensation related to the transaction received by the
licensee from a third party.

HB5551 - 42 - LRB103 37441 RTM 67563 b
(c) If a licensee refers a client to a third party in which
the licensee has greater than a 1% ownership interest or from
which the licensee receives or may receive dividends or other
profit sharing distributions, other than a publicly held or
traded company, for the purpose of the client obtaining
services related to the transaction, then the licensee shall
disclose that fact to the client at the time of making the
referral.
(d) If in any one transaction a sponsoring broker receives
compensation from both the buyer and seller or lessee and
lessor of real estate, the sponsoring broker shall disclose in
writing to a client the fact that the compensation is being
paid by both buyer and seller or lessee and lessor.
(e) Nothing in the Act shall prohibit the cooperation with
or a payment of compensation to an individual domiciled in any
other state or country who is licensed as a broker in that
individual's his or her state or country of domicile or to a
resident of a country that does not require a person to be
licensed to act as a broker if the person complies with the
laws of the country in which that person resides and practices
there as a broker.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/10-20)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-20. Sponsoring broker; employment agreement.

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(a) A licensee may perform activities as a licensee only
for the licensee's his or her sponsoring broker. A licensee
must have only one sponsoring broker at any one time.
(b) Every broker who employs licensees or has an
independent contractor relationship with a licensee shall have
a written employment or independent contractor agreement with
each such licensee. The broker having this written employment
or independent contractor agreement with the licensee must be
that licensee's sponsoring broker.
(c) Every sponsoring broker must have a written employment
or independent contractor agreement with each licensee the
broker sponsors. The agreement shall address the employment or
independent contractor relationship terms, including without
limitation supervision, duties, compensation, and termination
process.
(d) (Blank).
(d-5) If a written agreement provides for an independent
contractor relationship that clearly states and establishes
that relationship, the specific provisions of this Act shall
control for licensee's conduct of brokerage activities.
(e) Notwithstanding the fact that a sponsoring broker has
an employment or independent contractor agreement with a
licensee, a sponsoring broker may pay compensation directly to
a business entity solely owned by that licensee that has been
formed for the purpose of receiving compensation earned by the
licensee. A business entity that receives compensation from a

HB5551 - 44 - LRB103 37441 RTM 67563 b
sponsoring broker as provided for in this subsection (e) shall
not be required to be licensed under this Act and must either
be owned solely by the licensee or by the licensee together
with the licensee's spouse, but only if the spouse and
licensee are both licensed and sponsored by the same
sponsoring broker or the spouse is not also licensed.
(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)
(225 ILCS 454/15-35)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-35. Agency relationship disclosure.
(a) A licensee acting as a designated agent shall advise a
consumer in writing, no later than beginning to work as a
designated agent on behalf of the consumer, of the following:
(1) That a designated agency relationship exists,
unless there is written agreement between the sponsoring
broker and the consumer providing for a different agency
relationship; and
(2) The name or names of the designated agent or
agents on the written disclosure, which must can be
included as part of in a brokerage agreement or be a
separate document, a copy of which is retained by the
sponsoring broker for the licensee and company records,
and a copy of which must be provided to the consumer or
client.
(b) The licensee representing the consumer shall discuss

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with the consumer the sponsoring broker's compensation and
policy, including the terms of compensation and any amounts
offered with regard to cooperating with brokers who represent
other parties in a transaction.
(c) A licensee shall disclose in writing to a customer
that the licensee is not acting as the agent of the customer at
a time intended to prevent disclosure of confidential
information from a customer to a licensee, but in no event
later than the preparation of an offer to purchase or lease
real property.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
(225 ILCS 454/15-50)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-50. Brokerage agreements; designated Designated
agency.
(a) A sponsoring broker entering into a brokerage
relationship an agreement with any person for the listing of
property or for the purpose of representing any person in the
buying, selling, exchanging, renting, or leasing of real
estate shall set forth the terms of that relationship in a
written brokerage agreement. The brokerage agreement shall
specifically designate those licensees employed by or
affiliated with the sponsoring broker who will be acting as
legal agents of that person to the exclusion of all other
licensees employed by or affiliated with the sponsoring

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broker. A sponsoring broker entering into an agreement under
the provisions of this Section shall not be considered to be
acting for more than one party in a transaction if the
licensees are specifically designated as legal agents of a
person and are not representing more than one party in a
transaction.
(a-5) Nothing in this Section prevents a client from
seeking to enforce an oral agreement. The absence of a written
agreement does not create an affirmative defense (i) to the
existence, or lack thereof, of an agreement between the
parties; or (ii) as to whether licensed activity was performed
under this Act. This Section does not prevent a court from
imposing legal or equitable remedies.
(b) A sponsoring broker designating affiliated licensees
to act as agents of clients shall take ordinary and necessary
care to protect confidential information disclosed by a client
to the his or her designated agent.
(c) A designated agent may disclose to the designated
agent's his or her sponsoring broker or persons specified by
the sponsoring broker confidential information of a client for
the purpose of seeking advice or assistance for the benefit of
the client in regard to a possible transaction. Confidential
information shall not be disclosed by the sponsoring broker or
other specified representative of the sponsoring broker unless
otherwise required by this Act or requested or permitted by
the client who originally disclosed the confidential

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information.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/20-20)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-20. Nature of and grounds for discipline.
(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 for each violation upon any licensee or
applicant under this Act or any person who holds oneself out as
an applicant or licensee or against a licensee in handling
one's 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 licensee's conviction of or plea of guilty or
plea of nolo contendere, as set forth in subsection (e) of
Section 5-25, to: (A) a felony or misdemeanor in this
State or any other jurisdiction; (B) the entry of an
administrative sanction by a government agency in this
State or any other jurisdiction; or (C) any conviction of
or plea of guilty or plea of nolo contendere to a any crime

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that subjects the licensee to compliance with the
requirements of the Sex Offender Registration Act.
(3) Inability to practice the profession with
reasonable judgment, skill, or safety as a result of a
physical illness, 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 and located
within 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
inactive, revoked, or suspended.
(7) Cheating on or attempting to subvert the Real
Estate License Exam or a continuing education course or
examination.
(8) Aiding or abetting an applicant to subvert or

HB5551 - 49 - LRB103 37441 RTM 67563 b
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.
(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, or
performing licensed activities for, a broker other than
the sponsoring broker.
(16) Failure to account for or to remit any moneys or
documents coming into the licensee's 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

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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
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.

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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
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 to the Department.
(21) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud, or harm the public, including, but not limited
to, conduct set forth in rules adopted by the Department.
(22) Commingling the money or property of others with
the licensee's 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

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transactions.
(24) Permitting the use of one's license as a broker
to enable a residential 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.
(25.5) Failing to have a written brokerage agreement
between the sponsoring broker and a client for whom the
designated agent is working.
(26) Displaying a "for rent" or "for sale" sign on any
property without the written consent of an owner or the
owner's 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 the owner's 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) A licensee under this Act or an unlicensed
individual offering guaranteed sales plans, as defined in
Section 10-50, except to the extent set forth in Section

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10-50.
(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
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

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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 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 one 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 any 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

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Act or the published rules adopted by the Department to
enforce this Act or aiding or abetting any individual,
foreign or domestic partnership, registered limited
liability partnership, limited liability company,
corporation, or other business entity in disregarding any
provision of this Act or the published rules adopted 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 brokerage agreement.
(42) Habitual or excessive use of or addiction to
alcohol, narcotics, stimulants, or any other chemical
agent or drug that results in a licensee's managing
broker, broker, or residential leasing agent's inability
to practice with reasonable skill or safety, which may
result in significant harm to the public.
(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 residential leasing agent or
temporary residential leasing agent permit holder to
engage in activities that require a broker's or managing
broker's license.
(45) Failing to notify the Department, within 30 days
after the occurrence, of the information required in

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subsection (e) of Section 5-25.
(46) A designated managing broker's failure to provide
an appropriate written company policy or failure to
perform any of the duties set forth in Section 10-55.
(47) Filing liens or recording written instruments in
any county in the State on noncommercial, residential real
property that relate to a broker's compensation for
licensed activity under the Act.
(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 Department of Professional Regulation Law of
the Civil Administrative Code of Illinois.
(c) (Blank).
(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

HB5551 - 57 - LRB103 37441 RTM 67563 b
by the Department of Healthcare and Family Services in
accordance with item (5) of subsection (a) of Section 2105-15
of the Department of Professional Regulation Law of the Civil
Administrative Code of Illinois.
(e) (Blank).
(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
(225 ILCS 454/20-20.1)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-20.1. Citations.
(a) The Department may adopt rules to permit the issuance
of citations to any licensee for failure to comply with the
continuing education and post-license education requirements
set forth in this Act or as adopted by rule. The citation shall
be issued to the licensee, and a copy shall be sent to the
licensee's designated managing broker and sponsoring broker.
The citation shall contain the licensee's name and address,
the licensee's license number, the number of required hours of
continuing education or post-license education that have not
been successfully completed by the licensee's renewal
deadline, and the penalty imposed, which shall not exceed
$2,000. The issuance of any such citation shall not excuse the
licensee from completing all continuing education or
post-license education required for that term of licensure.
(b) Service of a citation shall be made by in person,
electronically, or by mail to the licensee at the licensee's

HB5551 - 58 - LRB103 37441 RTM 67563 b
address of record or email address of record, and must clearly
state that if the cited licensee wishes to dispute the
citation, the cited licensee may make a written request,
within 30 days after the citation is served, for a hearing
before the Department. If the cited licensee does not request
a hearing within 30 days after the citation is served, then the
citation shall become a final, non-disciplinary order shall be
entered, and any fine imposed is due and payable within 30 60
days after the entry of that final order. If the cited licensee
requests a hearing within 30 days after the citation is
served, the Department shall afford the cited licensee a
hearing conducted in the same manner as a hearing provided for
in this Act for any violation of this Act and shall determine
whether the cited licensee committed the violation as charged
and whether the fine as levied is warranted. If the violation
is found, any fine shall constitute non-public discipline and
be due and payable within 30 days after the order of the
Secretary, which shall constitute a final order of the
Department. No change in license status may be made by the
Department until such time as a final order of the Department
has been issued.
(c) Payment of a fine that has been assessed pursuant to
this Section shall not constitute disciplinary action
reportable on the Department's website or elsewhere unless a
licensee has previously received 2 or more citations and has
been assessed 2 or more fines.

HB5551 - 59 - LRB103 37441 RTM 67563 b
(d) Nothing in this Section shall prohibit or limit the
Department from taking further action pursuant to this Act and
rules for additional, repeated, or continuing violations.
(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)
(225 ILCS 454/20-50)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-50. Illegal discrimination. When there has been
an adjudication in a civil or criminal proceeding that a
licensee has illegally discriminated while engaged in any
activity for which a license is required under this Act, the
Department, following notice to the licensee and a hearing in
accordance with the provisions of Section 20-60, and upon the
recommendation of the Board as to the nature and extent of the
suspension or revocation, shall, in accordance with the
provisions of Section 20-64, suspend or revoke the license of
that licensee in a timely manner, unless the adjudication is
in the appeal process. The finding or judgment of the civil or
criminal proceeding is a matter of record; the merits of which
shall not be challenged in a request for a hearing by the
licensee. When there has been an order in an administrative
proceeding finding that a licensee has illegally discriminated
while engaged in any activity for which a license is required
under this Act, the Department, following notice to the
licensee and a hearing in accordance with the provisions of
Section 20-60, and upon the recommendation of the Board as to

HB5551 - 60 - LRB103 37441 RTM 67563 b
the nature and extent of the discipline, shall, in accordance
with the provisions of Section 20-64, take one or more of the
disciplinary actions provided for in Section 20-20 of this Act
in a timely manner, unless the administrative order is in the
appeal process. The finding of the administrative order is a
matter of record; the merits of which shall not be challenged
in a request for a hearing by the licensee.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/20-82)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-82. Fines and penalties; Real Estate License
Administration Recovery Fund; Real Estate Recovery Fund. All
fines and penalties collected under Section 20-20, Section
20-20.1, and otherwise under this Act by the Department shall
be deposited in the Real Estate License Administration
Recovery Fund and may be transferred to the Real Estate
Recovery Fund in accordance with the authority set forth in
Section 25-35 of this Act.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/25-25)
(Section scheduled to be repealed on January 1, 2030)
Sec. 25-25. Real Estate Research and Education Fund. A
special fund to be known as the Real Estate Research and
Education Fund is created and shall be held in trust in the

HB5551 - 61 - LRB103 37441 RTM 67563 b
State treasury. Annually, on September 15th, the State
Treasurer shall cause a transfer of $125,000 to the Real
Estate Research and Education Fund from the Real Estate
License Administration Fund. The Real Estate Research and
Education Fund shall be administered by the Department. Money
deposited in the Real Estate Research and Education Fund may
be used for research and for education at state institutions
of higher education or other organizations for research and
for education to further the advancement of education in the
real estate industry or can be used by the Department for
expenses related to the education of licensees. Of the
$125,000 annually transferred into the Real Estate Research
and Education Fund, $15,000 shall be used to fund a
scholarship program for persons of historically marginalized
classes and minority racial origin who wish to pursue a course
of study in the field of real estate. For the purposes of this
Section: ,
"Course course of study" means a course or courses that
are part of a program of courses in the field of real estate
designed to further an individual's knowledge or expertise in
the field of real estate. These courses shall include, without
limitation, courses that a broker licensed under this Act must
complete to qualify for a managing broker's license, courses
required to obtain the Graduate Realtors Institute
designation, and any other courses or programs offered by
accredited colleges, universities, or other institutions of

HB5551 - 62 - LRB103 37441 RTM 67563 b
higher education in Illinois.
"Historically marginalized classes" means a person of a
race or national origin that is Native American or Alaska
Native, Asian, Black or African American, Hispanic or Latino,
or Native Hawaiian or Pacific Islander, or is a member of a
protected class under the Illinois Human Rights Act within the
context of affirmative action.
The scholarship program shall be administered by the
Department or its designee. Moneys in the Real Estate Research
and Education Fund may be invested and reinvested in the same
manner as funds in the Real Estate Recovery Fund and all
earnings, interest, and dividends received from such
investments shall be deposited in the Real Estate Research and
Education Fund and may be used for the same purposes as moneys
transferred to the Real Estate Research and Education Fund.
Moneys in the Real Estate Research and Education Fund may be
transferred to the Professions Indirect Cost Fund as
authorized under Section 2105-300 of the Department of
Professional Regulation Law of the Civil Administrative Code
of Illinois.
(Source: P.A. 103-236, eff. 1-1-24.)
(225 ILCS 454/25-30)
(Section scheduled to be repealed on January 1, 2030)
Sec. 25-30. Real Estate License Administration Fund;
audit. A special fund to be known as the Real Estate License

HB5551 - 63 - LRB103 37441 RTM 67563 b
Administration Fund is created in the State Treasury. All
fines, penalties, and fees received by the Department under
this Act shall be deposited in the Real Estate License
Administration Fund. The moneys deposited in the Real Estate
License Administration Fund shall be appropriated to the
Department for expenses of the Department and the Board in the
administration of this Act, including, but not limited to, the
maintenance and operation of the Real Estate Recovery Fund,
and for the administration of any Act administered by the
Department providing revenue to this Fund. Moneys in the Real
Estate License Administration Fund may be invested and
reinvested in the same manner as funds in the Real Estate
Recovery Fund. All earnings received from such investment
shall be deposited in the Real Estate License Administration
Fund and may be used for the same purposes as fines, penalties,
and fees deposited in the Real Estate License Administration
Fund. Moneys in the Real Estate License Administration Fund
may be transferred to the Professions Indirect Cost Fund as
authorized under Section 2105-300 of the Department of
Professional Regulation Law of the Civil Administrative Code
of Illinois and to the Real Estate Recovery Fund as authorized
by Section 25-35 of this Act. Upon the completion of any audit
of the Department, as prescribed by the Illinois State
Auditing Act, which includes an audit of the Real Estate
License Administration Fund, the Department shall make the
audit open to inspection by any interested person.

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(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/25-35)
(Section scheduled to be repealed on January 1, 2030)
Sec. 25-35. Real Estate Recovery Fund. A special fund to
be known as the Real Estate Recovery Fund is created in the
State Treasury. All fines and penalties received by the
Department pursuant to Article 20 of this Act shall be
deposited into the State Treasury and held in the Real Estate
Recovery Fund. The money in the Real Estate Recovery Fund
shall be used by the Department exclusively for carrying out
the purposes established by this Act. If, at any time, the
balance remaining in the Real Estate Recovery Fund is less
than $900,000 $750,000, the State Treasurer shall cause a
transfer of moneys to the Real Estate Recovery Fund from the
Real Estate License Administration Fund in an amount necessary
to establish a balance of $1,000,000 $800,000 in the Real
Estate Recovery Fund. If the balance in the Real Estate
Recovery Fund exceeds $1,000,000, any excess funds over
$1,000,000 shall be transferred to the Real Estate License
Administration Fund. These funds may be invested and
reinvested in the same manner as authorized for pension funds
in Article 1 of the Illinois Pension Code. All earnings,
interest, and dividends received from investment of funds in
the Real Estate Recovery Fund shall be deposited into the Real
Estate License Administration Fund and shall be used for the

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same purposes as other moneys deposited in the Real Estate
License Administration Fund.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/30-5)
(Section scheduled to be repealed on January 1, 2030)
Sec. 30-5. Licensing of real estate education providers
and instructors.
(a) No person shall operate an education provider entity
without possessing a valid and active license issued by the
Department. Only education providers in possession of a valid
education provider license may provide real estate
pre-license, post-license, or continuing education courses
that satisfy the requirements of this Act. Every person that
desires to obtain an education provider license shall make
application to the Department in a manner prescribed by the
Department and pay the fee prescribed by rule. In addition to
any other information required to be contained in the
application as prescribed by rule, every application for an
original or renewed license shall include the applicant's
Social Security number or tax identification number.
(b) (Blank).
(c) (Blank).
(d) (Blank).
(e) (Blank).
(f) To qualify for an education provider license, an

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applicant must demonstrate the following:
(1) a sound financial base for establishing,
promoting, and delivering the necessary courses; budget
planning for the school's courses should be clearly
projected;
(2) a sufficient number of qualified, licensed
instructors as provided by rule;
(3) adequate support personnel to assist with
administrative matters and technical assistance;
(4) maintenance and availability of records of
participation for licensees;
(5) the ability to provide each participant who
successfully completes an approved program with a
certificate of completion signed by the administrator of a
licensed education provider in a manner prescribed by the
Department; the certificate of completion shall include
the program that was completed, the completion date, the
course number, and the student's and education provider's
license numbers;
(6) a written policy dealing with procedures for the
management of grievances and fee refunds;
(7) lesson plans and examinations, if applicable, for
each course;
(8) a 75% passing grade for successful completion of
any continuing education course or pre-license or
post-license examination, if required;

HB5551 - 67 - LRB103 37441 RTM 67563 b
(9) the ability to identify and use instructors who
will teach in a planned program; instructor selections
must demonstrate:
(A) appropriate credentials;
(B) competence as a teacher;
(C) knowledge of content area; and
(D) qualification by experience.
Unless otherwise provided for in this Section, the
education provider shall provide a proctor or an electronic
means of proctoring if a proctored examination is required for
each examination; the education provider shall be responsible
for the conduct of the proctor; the duties and
responsibilities of a proctor shall be established by rule.
Unless otherwise provided for in this Section, the
education provider shall must provide for closed book
examinations for each course when required unless the
Department, upon the recommendation of the Board, excuses this
requirement based on the complexity of the course material.
(g) Advertising and promotion of education activities must
be carried out in a responsible fashion clearly showing the
educational objectives of the activity, the nature of the
audience that may benefit from the activity, the cost of the
activity to the participant and the items covered by the cost,
the amount of credit that can be earned, and the credentials of
the faculty.
(h) (Blank). The Department may, or upon request of the

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Board shall, after notice, cause an education provider to
attend an informal conference before the Board for failure to
comply with any requirement for licensure or for failure to
comply with any provision of this Act or the rules for the
administration of this Act. The Board shall make a
recommendation to the Department as a result of its findings
at the conclusion of any such informal conference.
(i) All education providers shall maintain these minimum
criteria and pay the required fee in order to retain their
education provider license.
(j) The Department may adopt any administrative rule
consistent with the language and intent of this Act that may be
necessary for the implementation and enforcement of this
Section and to regulate the establishment and operation of
virtual offices that do not have a fixed location.
(Source: P.A. 100-188, eff. 1-1-18; 100-831, eff. 1-1-19;
101-357, eff. 8-9-19.)
(225 ILCS 454/30-15)
(Section scheduled to be repealed on January 1, 2030)
Sec. 30-15. Licensing of education providers; approval of
courses.
(a) (Blank).
(b) (Blank).
(c) (Blank).
(d) (Blank).

HB5551 - 69 - LRB103 37441 RTM 67563 b
(e) (Blank).
(f) All education providers shall submit, at the time of
initial application and with each license renewal, a list of
courses with course materials that comply with the course
requirements in this Act to be offered by the education
provider. The Department may establish an online mechanism by
which education providers may submit for approval by the
Department upon the recommendation of the Board or its
designee pre-license, post-license, or continuing education
courses that are submitted after the time of the education
provider's initial license application or renewal. The
Department shall provide to each education provider a
certificate for each approved pre-license, post-license, or
continuing education course. All pre-license, post-license, or
continuing education courses shall be valid for the period
coinciding with the term of license of the education provider.
However, in no case shall a course continue to be valid if it
does not, at all times, meet all of the requirements of the
core curriculum established by this Act and the Board, as
modified from time to time in accordance with this Act. All
education providers shall provide a copy of the certificate of
the pre-license, post-license, or continuing education course
within the course materials given to each student or shall
display a copy of the certificate of the pre-license,
post-license, or continuing education course in a conspicuous
place at the location of the class.

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(g) Each education provider shall provide to the
Department a report in a frequency and format determined by
the Department, with information concerning students who
successfully completed all approved pre-license, post-license,
or continuing education courses offered by the education
provider.
(h) The Department, upon the recommendation of the Board,
may temporarily suspend a licensed education provider's
approved courses without hearing and refuse to accept
successful completion of or participation in any of these
pre-license, post-license, or continuing education courses for
education credit from that education provider upon the failure
of that education provider to comply with the provisions of
this Act or the rules for the administration of this Act, until
such time as the Department receives satisfactory assurance of
compliance. The Department shall notify the education provider
of the noncompliance and may initiate disciplinary proceedings
pursuant to this Act. The Department may refuse to issue,
suspend, revoke, or otherwise discipline the license of an
education provider or may withdraw approval of a pre-license,
post-license, or continuing education course for good cause.
Failure to comply with the requirements of this Section or any
other requirements established by rule shall be deemed to be
good cause. Disciplinary proceedings shall be conducted by the
Department Board in the same manner as other disciplinary
proceedings under this Act.

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(i) Pre-license, post-license, and continuing education
courses, whether submitted for approval at the time of an
education provider's initial application for licensure or
otherwise, must meet the following minimum course
requirements:
(1) Continuing education courses shall be required to
be at least one hour in duration. For each one hour of
course time, there shall be a minimum of 50 minutes of
instruction.
(2) All core curriculum courses shall be provided only
in the classroom or through a live, interactive webinar,
or in an online distance education format.
(3) Courses provided through a live, interactive
webinar shall require all participants to demonstrate
their attendance in and attention to the course by
answering or responding to at least one polling question
per 50 minutes of course instruction.
(4) All participants in courses provided in an online
distance education format shall demonstrate proficiency
with the subject matter of the course through verifiable
responses to questions included in the course content.
(5) Credit for courses completed in a classroom or
through a live, interactive webinar, or in an online
distance education format shall not require an
examination.
(6) Credit for courses provided through

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correspondence, or by home study, shall require the
passage of an in-person, proctored examination.
(j) The Department is authorized to engage a third party
as the Board's designee to perform the functions specifically
provided for in subsection (f) of this Section, namely that of
administering the online system for receipt, review, and
approval or denial of new courses.
(k) The Department may adopt any administrative rule
consistent with the language and intent of this Act that may be
necessary for the implementation and enforcement of this
Section.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
(225 ILCS 454/30-25)
(Section scheduled to be repealed on January 1, 2030)
Sec. 30-25. Licensing of education provider instructors.
(a) No person shall act as either a pre-license or
continuing education instructor without possessing a valid
pre-license or continuing education instructor license and
satisfying any other qualification criteria adopted by the
Department by rule.
(a-5) Each person with a valid pre-license instructor
license may teach pre-license, post-license, continuing
education core curriculum, continuing education elective
curriculum, or broker management education courses if they
meet specific criteria adopted by the Department by rule.

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Those persons who have not met the criteria or who only possess
a valid continuing education instructor license shall only
teach continuing education elective curriculum courses. Any
person with a valid continuing education instructor license
who wishes to teach continuing education core curriculum or
broker management continuing education courses must obtain a
valid pre-license instructor license.
(b) Every person who desires to obtain an education
provider instructor's license shall attend and successfully
complete a one-day instructor development workshop, as
approved by the Department. However, pre-license instructors
who have complied with subsection (b) of this Section 30-25
shall not be required to complete the instructor workshop in
order to teach continuing education elective curriculum
courses.
(b-5) The term of licensure for a pre-license or
continuing education instructor shall be 2 years, with renewal
dates adopted by rule. Every person who desires to obtain a
pre-license or continuing education instructor license shall
make application to the Department in a manner prescribed by
the Department, accompanied by the fee adopted by rule. In
addition to any other information required to be contained in
the application, every application for an original license
shall include the applicant's Social Security number or
federal individual taxpayer identification number, which shall
be retained in the agency's records pertaining to the license.

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As soon as practical, the Department shall assign a customer's
identification number to each applicant for a license.
Every application for a renewal or restored license shall
require the applicant's customer identification number.
The Department shall issue a pre-license or continuing
education instructor license to applicants who meet
qualification criteria established by this Act or rule.
(c) The Department may refuse to issue, suspend, revoke,
or otherwise discipline a pre-license or continuing education
instructor for good cause. Disciplinary proceedings shall be
conducted by the Department Board in the same manner as other
disciplinary proceedings under this Act. All pre-license
instructors must teach at least one pre-license or continuing
education core curriculum course within the period of
licensure as a requirement for renewal of the instructor's
license. All continuing education instructors must teach at
least one course within the period of licensure or take an
instructor training program approved by the Department in lieu
thereof as a requirement for renewal of the instructor's
license.
(d) Each course transcript submitted by an education
provider to the Department shall include the name and license
number of the pre-license or continuing education instructor
for the course.
(e) Licensed education provider instructors may teach for
more than one licensed education provider.

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(f) The Department may adopt any administrative rule
consistent with the language and intent of this Act that may be
necessary for the implementation and enforcement of this
Section.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
Section 99. Effective date. This Act takes effect January
1, 2025, except that this Section, Section 5, and the changes
to Sections 20-82, 25-30, and 25-35 of the Real Estate License
Act of 2000 take effect upon becoming law.
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INDEX
Statutes amended in order of appearance
30 ILCS 105/5.1015 new
225 ILCS 454/1-10
225 ILCS 454/5-20
225 ILCS 454/5-25
225 ILCS 454/5-28
225 ILCS 454/5-35
225 ILCS 454/5-45
225 ILCS 454/5-60
225 ILCS 454/5-60.1 new
225 ILCS 454/5-60.5 new
225 ILCS 454/5-70
225 ILCS 454/10-10
225 ILCS 454/10-20
225 ILCS 454/15-35
225 ILCS 454/15-50
225 ILCS 454/20-20
225 ILCS 454/20-20.1
225 ILCS 454/20-50
225 ILCS 454/20-82
225 ILCS 454/25-25
225 ILCS 454/25-30
225 ILCS 454/25-35
225 ILCS 454/30-5
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