Bill Text: IL SB0092 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Real Estate License Act of 2000. Creates an exemption from the licensing requirements under the Act for any person who holds a valid license under the Auction License Act while conducting an auction for the sale of real estate, provided that certain provisions are complied with. Creates a new provision that provides the Department of Financial and Professional Regulation shall issue a real estate auction certification to applicants who meet certain qualifications. Provides that enabling, aiding, or abetting an auctioneer to conduct a real estate auction in a manner that is in violation of the Act shall be grounds for discipline. Makes corresponding changes in the Auction License Act. Effective on January 1, 2014.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-08-27 - Public Act . . . . . . . . . 98-0553 [SB0092 Detail]

Download: Illinois-2013-SB0092-Introduced.html

---

98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB0092 Introduced 1/23/2013, by Sen. John M. Sullivan SYNOPSIS AS INTRODUCED:
225 ILCS 407/5-10
225 ILCS 407/20-15
225 ILCS 454/5-20
225 ILCS 454/5-32 new
225 ILCS 454/10-5
225 ILCS 454/20-20
Amends the Real Estate License Act of 2000. Creates an exemption from the licensing requirements under the Act for any person who holds a valid license under the Auction License Act while conducting an auction for the sale of real estate, provided that certain provisions are complied with. Creates a new provision that provides the Department of Financial and Professional Regulation shall issue a real estate auction certification to applicants who meet certain qualifications. Provides that enabling, aiding, or abetting an auctioneer to conduct a real estate auction in a manner that is in violation of the Act shall be grounds for discipline. Makes corresponding changes in the Auction License Act. Effective on January 1, 2014.
LRB098 06113 MGM 36154 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
SB0092 LRB098 06113 MGM 36154 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Auction License Act is amended by changing
Sections 5-10 and 20-15 as follows:
(225 ILCS 407/5-10)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-10. Definitions. As used in this Act:
"Advertisement" means any written, oral, or electronic
communication that contains a promotion, inducement, or offer
to conduct an auction or offer to provide an auction service,
including but not limited to brochures, pamphlets, radio and
television scripts, telephone and direct mail solicitations,
electronic media, and other means of promotion.
"Advisory Board" or "Board" means the Auctioneer Advisory
Board.
"Associate auctioneer" means a person who conducts an
auction, but who is under the direct supervision of, and is
sponsored by, a licensed auctioneer or auction firm.
"Auction" means the sale or lease of property, real or
personal, by means of exchanges between an auctioneer and
prospective purchasers or lessees, which consists of a series
of invitations for offers made by the auctioneer and offers by

SB0092 - 2 - LRB098 06113 MGM 36154 b
prospective purchasers or lessees for the purpose of obtaining
an acceptable offer for the sale or lease of the property,
including the sale or lease of property via mail,
telecommunications, or the Internet.
"Auction contract" means a written agreement between an
auctioneer or auction firm and a seller or sellers.
"Auction firm" means any corporation, partnership, or
limited liability company that acts as an auctioneer and
provides an auction service.
"Auction school" means any educational institution, public
or private, which offers a curriculum of auctioneer education
and training approved by the Department.
"Auction service" means the service of arranging,
managing, advertising, or conducting auctions.
"Auctioneer" means a person or entity who, for another, for
a fee, compensation, commission, or any other valuable
consideration at auction or with the intention or expectation
of receiving valuable consideration by the means of or process
of an auction or sale at auction or providing an auction
service, offers, negotiates, or attempts to negotiate an
auction contract, sale, purchase, or exchange of goods,
chattels, merchandise, personal property, real property, or
any commodity that may be lawfully kept or offered for sale by
or at auction.
"Address of Record" means the designated address recorded
by the Department in the applicant's or licensee's application

SB0092 - 3 - LRB098 06113 MGM 36154 b
file or license file maintained by the Department. It is the
duty of the applicant or licensee to inform the Department of
any change of address, and such changes must be made either
through the Department's website or by directly contacting the
Department.
"Buyer premium" means any fee or compensation paid by the
successful purchaser of property sold or leased at or by
auction, to the auctioneer, auction firms, seller, lessor, or
other party to the transaction, other than the purchase price.
"Department" means the Department of Financial and
Professional Regulation.
"Goods" means chattels, movable goods, merchandise, or
personal property or commodities of any form or type that may
be lawfully kept or offered for sale.
"Licensee" means any person licensed under this Act.
"Managing auctioneer" means any person licensed as an
auctioneer who manages and supervises licensees sponsored by an
auction firm or auctioneer.
"Person" means an individual, association, partnership,
corporation, or limited liability company or the officers,
directors, or employees of the same.
"Pre-renewal period" means the 24 months prior to the
expiration date of a license issued under this Act.
"Real estate" means real estate as defined in Section 1-10
of the Real Estate License Act of 2000 or its successor Acts.
"Secretary" means the Secretary of the Department of

SB0092 - 4 - LRB098 06113 MGM 36154 b
Financial and Professional Regulation or his or her designee.
"Sponsoring auctioneer" means the auctioneer or auction
firm who has issued a sponsor card to a licensed auctioneer.
"Sponsor card" means the temporary permit issued by the
sponsoring auctioneer certifying that the licensee named
thereon is employed by or associated with the sponsoring
auctioneer and the sponsoring auctioneer shall be responsible
for the actions of the sponsored licensee.
(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
(225 ILCS 407/20-15)
(Section scheduled to be repealed on January 1, 2020)
Sec. 20-15. Disciplinary actions; grounds. The Department
may refuse to issue or renew a license, may place on probation
or administrative supervision, suspend, or revoke any license
or may reprimand or take other disciplinary or non-disciplinary
action as the Department may deem proper, including the
imposition of fines not to exceed $10,000 for each violation
upon anyone licensed under this Act for any of the following
reasons:
(1) False or fraudulent representation or material
misstatement in furnishing information to the Department
in obtaining or seeking to obtain a license.
(2) Violation of any provision of this Act or the rules
promulgated pursuant to this Act.
(3) Conviction of or entry of a plea of guilty or nolo

SB0092 - 5 - LRB098 06113 MGM 36154 b
contendere to any crime that is a felony under the laws of
the United States or any state or territory thereof, or
that is a misdemeanor, an essential element of which is
dishonesty, or any crime that is directly related to the
practice of the profession.
(4) Being adjudged to be a person under legal
disability or subject to involuntary admission or to meet
the standard for judicial admission as provided in the
Mental Health and Developmental Disabilities Code.
(5) Discipline of a licensee by another state, the
District of Columbia, a territory of the United States, a
foreign nation, a governmental agency, or any other entity
authorized to impose discipline if at least one of the
grounds for that discipline is the same as or the
equivalent to one of the grounds for discipline set forth
in this Act or for failing to report to the Department,
within 30 days, any adverse final action taken against the
licensee by any other licensing jurisdiction, government
agency, law enforcement agency, or court, or liability for
conduct that would constitute grounds for action as set
forth in this Act.
(6) Engaging in the practice of auctioneering,
conducting an auction, or providing an auction service
without a license or after the license was expired,
revoked, suspended, or terminated or while the license was
inoperative.

SB0092 - 6 - LRB098 06113 MGM 36154 b
(7) Attempting to subvert or cheat on the auctioneer
exam or any continuing education exam, or aiding or
abetting another to do the same.
(8) Directly or indirectly giving to or receiving from
a person, firm, corporation, partnership, or association a
fee, commission, rebate, or other form of compensation for
professional service not actually or personally rendered,
except that an auctioneer licensed under this Act may
receive a fee from another licensed auctioneer from this
State or jurisdiction for the referring of a client or
prospect for auction services to the licensed auctioneer.
(9) Making any substantial misrepresentation or
untruthful advertising.
(10) Making any false promises of a character likely to
influence, persuade, or induce.
(11) Pursuing a continued and flagrant course of
misrepresentation or the making of false promises through a
licensee, agent, employee, advertising, or otherwise.
(12) Any misleading or untruthful advertising, or
using any trade name or insignia of membership in any
auctioneer association or organization of which the
licensee is not a member.
(13) Commingling funds of others with his or her own
funds or failing to keep the funds of others in an escrow
or trustee account.
(14) Failure to account for, remit, or return any

SB0092 - 7 - LRB098 06113 MGM 36154 b
moneys, property, or documents coming into his or her
possession that belong to others, acquired through the
practice of auctioneering, conducting an auction, or
providing an auction service within 30 days of the written
request from the owner of said moneys, property, or
documents.
(15) Failure to maintain and deposit into a special
account, separate and apart from any personal or other
business accounts, all moneys belonging to others
entrusted to a licensee while acting as an auctioneer,
associate auctioneer, auction firm, or as a temporary
custodian of the funds of others.
(16) Failure to make available to Department personnel
during normal business hours all escrow and trustee records
and related documents maintained in connection with the
practice of auctioneering, conducting an auction, or
providing an auction service within 24 hours after a
request from Department personnel.
(17) Making or filing false records or reports in his
or her practice, including but not limited to false records
or reports filed with State agencies.
(18) Failing to voluntarily furnish copies of all
written instruments prepared by the auctioneer and signed
by all parties to all parties at the time of execution.
(19) Failing to provide information within 30 days in
response to a written request made by the Department.

SB0092 - 8 - LRB098 06113 MGM 36154 b
(20) Engaging in any act that constitutes a violation
of Section 2-102, 3-103, or 3-105 of the Illinois Human
Rights Act.
(21) (Blank).
(22) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud, or harm the public.
(23) Offering or advertising real estate for sale or
lease at auction without a valid broker or managing
broker's salesperson's license under the Real Estate
License Act of 1983, or any successor Act, unless exempt
from licensure under the terms of the Real Estate License
Act of 2000, or any successor Act, except as provided for
in Section 5-32 of the Real Estate License Act of 2000.
(24) Inability to practice the profession with
reasonable judgment judgement, skill, or safety as a result
of a physical illness, including, but not limited to,
deterioration through the aging process or loss of motor
skill, or a mental illness or disability.
(25) A pattern of practice or other behavior that
demonstrates incapacity or incompetence to practice under
this Act.
(26) Being named as a perpetrator in an indicated
report by the Department of Children and Family Services
under the Abused and Neglected Child Reporting Act and upon
proof by clear and convincing evidence that the licensee

SB0092 - 9 - LRB098 06113 MGM 36154 b
has caused a child to be an abused child or a neglected
child as defined in the Abused and Neglected Child
Reporting Act.
(27) Inability to practice with reasonable judgment
judgement, skill, or safety as a result of habitual or
excessive use or addiction to alcohol, narcotics,
stimulants, or any other chemical agent or drug.
(28) Wilfully failing to report an instance of
suspected child abuse or neglect as required by the Abused
and Neglected Child Reporting Act.
The entry of an order by a circuit court establishing that
any person holding a license under this Act is subject to
involuntary admission or judicial admission, as provided for in
the Mental Health and Developmental Disabilities Code,
operates as an automatic suspension of that license. That
person may have his or her license restored only upon the
determination by a circuit court that the patient is no longer
subject to involuntary admission or judicial admission and the
issuance of an order so finding and discharging the patient and
upon the Board's recommendation to the Department that the
license be restored. Where circumstances so indicate, the Board
may recommend to the Department that it require an examination
prior to restoring a suspended license.
If the Department or Board finds an individual unable to
practice because of the reasons set forth in this Section, the
Department or Board may require that individual to submit to

SB0092 - 10 - LRB098 06113 MGM 36154 b
care, counseling, or treatment by physicians approved or
designated by the Department or Board, as a condition, term, or
restriction for continued, reinstated, or renewed licensure to
practice; or, in lieu of care, counseling, or treatment, the
Department may file, or the Board may recommend to the
Department to file, a complaint to immediately suspend, revoke,
or otherwise discipline the license of the individual. An
individual whose license was granted, continued, reinstated,
renewed, disciplined or supervised subject to such terms,
conditions, or restrictions, and who fails to comply with such
terms, conditions, or restrictions, shall be referred to the
Secretary for a determination as to whether the individual
shall have his or her license suspended immediately, pending a
hearing by the Department. In instances in which the Secretary
immediately suspends a person's license under this Section, a
hearing on that person's license must be convened by the
Department within 21 days after the suspension and completed
without appreciable delay. The Department and Board shall have
the authority to review the subject individual's record of
treatment and counseling regarding the impairment to the extent
permitted by applicable federal statutes and regulations
safeguarding the confidentiality of medical records.
An individual licensed under this Act and affected under
this Section shall be afforded an opportunity to demonstrate to
the Department or Board that he or she can resume practice in
compliance with acceptable and prevailing standards under the

SB0092 - 11 - LRB098 06113 MGM 36154 b
provisions of his or her license.
In enforcing this Section, the Department or Board, upon a
showing of a possible violation, may compel an individual
licensed to practice under this Act, or who has applied for
licensure under this Act, to submit to a mental or physical
examination, or both, as required by and at the expense of the
Department. The Department or Board may order the examining
physician to present testimony concerning the mental or
physical examination of the licensee or applicant. No
information shall be excluded by reason of any common law or
statutory privilege relating to communications between the
licensee or applicant and the examining physician. The
examining physicians shall be specifically designated by the
Board or Department. The individual to be examined may have, at
his or her own expense, another physician of his or her choice
present during all aspects of this examination. Failure of an
individual to submit to a mental or physical examination when
directed shall be grounds for suspension of his or her license
until the individual submits to the examination, if the
Department finds that, after notice and hearing, the refusal to
submit to the examination was without reasonable cause.
(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
Section 10. The Real Estate License Act of 2000 is amended
by changing Sections 5-20, 10-5, and 20-20 and by adding
Section 5-32 as follows:

SB0092 - 12 - LRB098 06113 MGM 36154 b
(225 ILCS 454/5-20)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-20. Exemptions from broker, salesperson, or leasing
agent license requirement. The requirement for holding a
license under this Article 5 shall not apply to:
(1) Any person, partnership, or corporation that as
owner or lessor performs any of the acts described in the
definition of "broker" under Section 1-10 of this Act with
reference to property owned or leased by it, or to the
regular 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 therein, provided that 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.
(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

SB0092 - 13 - LRB098 06113 MGM 36154 b
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
broker managing an apartment building, duplex, or
apartment complex, when the resident manager resides on the
premises, the premises is his or her primary residence, and
the resident manager is engaged in the leasing of the
property of which he or she is the resident manager.
(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,

SB0092 - 14 - LRB098 06113 MGM 36154 b
or other disposition of real estate or investment therein
not needing the approval of the appropriate State
regulatory authority.
(9) Any medium of advertising in the routine course of
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 $1,500
or the equivalent of one month's rent, whichever is less,
in any 12-month period, and (iii) limits his or her
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) An exchange company registered under the Real
Estate Timeshare Act of 1999 and the regular employees of
that registered exchange company but only when conducting
an exchange program as defined in that Act.

SB0092 - 15 - LRB098 06113 MGM 36154 b
(12) An existing timeshare owner who, for
compensation, refers prospective purchasers, but only if
the existing timeshare owner (i) refers no more than 20
prospective purchasers in any calendar year, (ii) receives
no more than $1,000, or its equivalent, for referrals in
any calendar year and (iii) limits his or her activities to
referring prospective purchasers of timeshare interests to
the developer or the developer's employees or agents, and
does not show, discuss terms or conditions of purchase or
otherwise participate in negotiations with regard to
timeshare interests.
(13) Any person who is licensed without examination
under Section 10-25 (now repealed) of the Auction License
Act is exempt from holding a broker's or salesperson's
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 he
or she 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 his or her
license 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

SB0092 - 16 - LRB098 06113 MGM 36154 b
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) (14) 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.
(Source: P.A. 96-328, eff. 8-11-09; 96-856, eff. 12-31-09.)
(225 ILCS 454/5-32 new)
Sec. 5-32. Real estate auction certification.
(a) An auctioneer licensed under the Auction License Act
who does not possess a valid and active broker's or managing
broker's license under this Act, or who is not otherwise exempt
from licensure, may not engage in the practice of auctioning
real estate, except as provided in this Section.
(b) The Department shall issue a real estate auction
certification to applicants who:
(1) possess a valid auctioneer's license under the
Auction License Act;

SB0092 - 17 - LRB098 06113 MGM 36154 b
(2) successfully complete a real estate auction course
of at least 30 hours approved by the Real Estate Education
Advisory Council, which shall cover the scope of activities
that may be engaged in by a person holding a real estate
auction certification and the activities for which a person
must hold a real estate license, as well as other material
as provided by the Advisory Council;
(3) successfully complete an examination provided for
by the Department; and
(4) successfully complete any other reasonable
requirements as provided by rule.
(c) The auctioneer's role shall be limited to establishing
the time, place, and method of the real estate auction, placing
advertisements regarding the auction, and crying or calling the
auction; any other real estate brokerage activities must be
performed by a person holding a valid and active real estate
broker's or managing broker's license under the provisions of
this Act or by a person who is otherwise exempt from licensure
under this Act.
(d) An auctioneer who conducts any real estate auction
activities in violation of this Section is guilty of unlicensed
practice under Section 20-10 of this Act.
(e) The Department may revoke, suspend, or otherwise
discipline the real estate auction certification of an
auctioneer who is adjudicated to be in violation of the
provisions of Section 20-15 of the Auction License Act.

SB0092 - 18 - LRB098 06113 MGM 36154 b
(f) Advertising for the real estate auction must contain
the name and address of the licensed real estate broker or
managing broker who is providing brokerage services for the
transaction.
(g) The requirement to hold a real estate auction
certification shall not apply to a person exempt from this Act
under the provisions of paragraph (13) of subsection 5-20 of
this Act, unless that person is performing licensed activities
in a transaction in which a licensed auctioneer with a real
estate certification is providing the limited services
provided for in subsection (c) of this Section.
(h) Nothing in this Section shall require a person licensed
under this Act as a real estate broker or managing broker to
obtain a real estate auction certification in order to auction
real estate.
(i) The Department may adopt rules to implement this
Section.
(225 ILCS 454/10-5)
(Section scheduled to be repealed on January 1, 2020)
Sec. 10-5. Payment of compensation.
(a) No licensee shall pay compensation directly to a
licensee sponsored by another broker for the performance of
licensed activities. No licensee sponsored by a broker may pay
compensation to any licensee other than his or her sponsoring
broker for the performance of licensed activities unless the

SB0092 - 19 - LRB098 06113 MGM 36154 b
licensee paying the compensation is a principal to the
transaction. However, a non-sponsoring broker may pay
compensation directly to a licensee sponsored by another or a
person who is not sponsored by a broker if the payments are
made pursuant to terms of an employment agreement that was
previously in place between a licensee and the non-sponsoring
broker, and the payments are for licensed activity performed by
that person while previously sponsored by the now
non-sponsoring broker.
(b) No licensee sponsored by a broker shall accept
compensation for the performance of activities under this Act
except from the broker by whom the licensee is sponsored,
except as provided in this Section.
(c) Any person that is a licensed personal assistant for
another licensee may only be compensated in his or her capacity
as a personal assistant by the sponsoring broker for that
licensed personal assistant.
(d) One sponsoring broker may pay compensation directly to
another sponsoring broker for the performance of licensed
activities.
(e) Notwithstanding any other provision of this Act, a
sponsoring broker may pay compensation to a person currently
licensed under the Auction License Act who is in compliance
with and providing services under Section 5-32 of this Act.
(Source: P.A. 91-245, eff. 12-31-99.)

SB0092 - 20 - LRB098 06113 MGM 36154 b
(225 ILCS 454/20-20)
(Section scheduled to be repealed on January 1, 2020)
Sec. 20-20. 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 upon any licensee or applicant under this Act
or any person who holds himself or herself out as an applicant
or licensee or against a licensee in handling his or her own
property, whether held by deed, option, or otherwise, for any
one or any combination of the following causes:
(1) Fraud or misrepresentation in applying for, or
procuring, a license under this Act or in connection with
applying for renewal of a license under this Act.
(2) The conviction of or plea of guilty or plea of nolo
contendere to a felony or misdemeanor in this State or any
other jurisdiction; or the entry of an administrative
sanction by a government agency in this State or any other
jurisdiction. Action taken under this paragraph (2) for a
misdemeanor or an administrative sanction is limited to a
misdemeanor or administrative sanction that has as an
essential element dishonesty or fraud or involves larceny,
embezzlement, or obtaining money, property, or credit by
false pretenses or by means of a confidence game.
(3) Inability to practice the profession with

SB0092 - 21 - LRB098 06113 MGM 36154 b
reasonable judgment, skill, or safety as a result of a
physical illness, including, but not limited to,
deterioration through the aging process or loss of motor
skill, or a mental illness or disability.
(4) Practice under this Act as a licensee in a retail
sales establishment from an office, desk, or space that is
not separated from the main retail business by a separate
and distinct area within the establishment.
(5) Having been disciplined by another state, the
District of Columbia, a territory, a foreign nation, or a
governmental agency authorized to impose discipline if at
least one of the grounds for that discipline is the same as
or the equivalent of one of the grounds for which a
licensee may be disciplined under this Act. A certified
copy of the record of the action by the other state or
jurisdiction shall be prima facie evidence thereof.
(6) Engaging in the practice of real estate brokerage
without a license or after the licensee's license was
expired or while the license was inoperative.
(7) Cheating on or attempting to subvert the Real
Estate License Exam or continuing education exam.
(8) Aiding or abetting an applicant to subvert or cheat
on the Real Estate License Exam or continuing education
exam administered pursuant to this Act.
(9) Advertising that is inaccurate, misleading, or
contrary to the provisions of the Act.

SB0092 - 22 - LRB098 06113 MGM 36154 b
(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 a broker
other than the sponsoring broker.
(16) Failure to account for or to remit any moneys or
documents coming into his or her possession that belong to
others.
(17) Failure to maintain and deposit in a special
account, separate and apart from personal and other
business accounts, all escrow moneys belonging to others
entrusted to a licensee while acting as a real estate
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

SB0092 - 23 - LRB098 06113 MGM 36154 b
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 Uniform Disposition of
Unclaimed Property Act. Escrow moneys may be deemed
abandoned under this subparagraph (B) only: (i) in the
absence of disbursement under subparagraph (A); (ii)
in the absence of notice of the filing of any claim in
a court of competent jurisdiction; and (iii) if 6
months have elapsed after the receipt of a written
demand for the escrow moneys from one of the principals
to the transaction or the principal's duly authorized
agent.
The account shall be noninterest bearing, unless the
character of the deposit is such that payment of interest
thereon is otherwise required by law or unless the
principals to the transaction specifically require, in

SB0092 - 24 - LRB098 06113 MGM 36154 b
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 to timely provide
information, sponsor cards, or termination of licenses to
the Department.
(21) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud, or harm the public.
(22) Commingling the money or property of others with
his or her own money or property.
(23) Employing any person on a purely temporary or
single deal basis as a means of evading the law regarding
payment of commission to nonlicensees on some contemplated
transactions.
(24) Permitting the use of his or her license as a
broker to enable a salesperson 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

SB0092 - 25 - LRB098 06113 MGM 36154 b
different character from that specified in this Section,
that constitutes dishonest dealing.
(26) Displaying a "for rent" or "for sale" sign on any
property without the written consent of an owner or his or
her duly authorized agent or advertising by any means that
any property is for sale or for rent without the written
consent of the owner or his or her authorized agent.
(27) Failing to provide information requested by the
Department, or otherwise respond to that request, within 30
days of the request.
(28) Advertising by means of a blind advertisement,
except as otherwise permitted in Section 10-30 of this Act.
(29) Offering guaranteed sales plans, as defined in
clause (A) of this subdivision (29), except to the extent
hereinafter set forth:
(A) A "guaranteed sales plan" is any real estate
purchase or sales plan whereby a licensee enters into a
conditional or unconditional written contract with a
seller, prior to entering into a brokerage agreement
with the seller, by the terms of which a licensee
agrees to purchase a property of the seller within a
specified period of time at a specific price in the
event the property is not sold in accordance with the
terms of a brokerage agreement to be entered into
between the sponsoring broker and the seller.
(B) A licensee offering a guaranteed sales plan

SB0092 - 26 - LRB098 06113 MGM 36154 b
shall provide the details and conditions of the plan in
writing to the party to whom the plan is offered.
(C) A licensee offering a guaranteed sales plan
shall provide to the party to whom the plan is offered
evidence of sufficient financial resources to satisfy
the commitment to purchase undertaken by the broker in
the plan.
(D) Any licensee offering a guaranteed sales plan
shall undertake to market the property of the seller
subject to the plan in the same manner in which the
broker would market any other property, unless the
agreement with the seller provides otherwise.
(E) The licensee cannot purchase seller's property
until the brokerage agreement has ended according to
its terms or is otherwise terminated.
(F) Any licensee who fails to perform on a
guaranteed sales plan in strict accordance with its
terms shall be subject to all the penalties provided in
this Act for violations thereof and, in addition, shall
be subject to a civil fine payable to the party injured
by the default in an amount of up to $25,000.
(30) Influencing or attempting to influence, by any
words or acts, a prospective seller, purchaser, occupant,
landlord, or tenant of real estate, in connection with
viewing, buying, or leasing real estate, so as to promote
or tend to promote the continuance or maintenance of

SB0092 - 27 - LRB098 06113 MGM 36154 b
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
transaction in which the licensee is acting or has acted as
a broker or salesperson.
(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

SB0092 - 28 - LRB098 06113 MGM 36154 b
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 he or she may
receive or has been selected to receive something of value,
without any conditions or obligations on the part of the
recipient.
(36) Disregarding or violating any provision of the
Land Sales Registration Act of 1989, the Illinois Real
Estate Time-Share Act, or the published rules promulgated
by the Department to enforce those Acts.
(37) Violating the terms of a disciplinary order issued
by the Department.
(38) Paying or failing to disclose compensation in
violation of Article 10 of this Act.
(39) Requiring a party to a transaction who is not a
client of the licensee to allow the licensee to retain a
portion of the escrow moneys for payment of the licensee's
commission or expenses as a condition for release of the
escrow moneys to that party.
(40) Disregarding or violating any provision of this
Act or the published rules promulgated by the Department to
enforce this Act or aiding or abetting any individual,
partnership, registered limited liability partnership,

SB0092 - 29 - LRB098 06113 MGM 36154 b
limited liability company, or corporation in disregarding
any provision of this Act or the published rules
promulgated by the Department to enforce this Act.
(41) Failing to provide the minimum services required
by Section 15-75 of this Act when acting under an exclusive
brokerage agreement.
(42) Habitual or excessive use or addiction to alcohol,
narcotics, stimulants, or any other chemical agent or drug
that results in a managing broker, broker, salesperson, or
leasing agent's inability to practice with reasonable
skill or safety.
(43) Enabling, aiding, or abetting an auctioneer, as
defined in the Auction License Act, to conduct a real
estate auction in a manner that is in violation of this
Act.
(b) The Department may refuse to issue or renew or may
suspend the license of any person who fails to file a return,
pay the tax, penalty or interest shown in a filed return, or
pay any final assessment of tax, penalty, or interest, as
required by any tax Act administered by the Department of
Revenue, until such time as the requirements of that tax Act
are satisfied in accordance with subsection (g) of Section
2105-15 of the Civil Administrative Code of Illinois.
(c) The Department shall deny a license or renewal
authorized by this Act to a person who has defaulted on an
educational loan or scholarship provided or guaranteed by the

SB0092 - 30 - LRB098 06113 MGM 36154 b
Illinois Student Assistance Commission or any governmental
agency of this State in accordance with item (5) of subsection
(g) of Section 2105-15 of the Civil Administrative Code of
Illinois.
(d) In cases where the Department of Healthcare and Family
Services (formerly Department of Public Aid) has previously
determined that a licensee or a potential licensee is more than
30 days delinquent in the payment of child support and has
subsequently certified the delinquency to the Department may
refuse to issue or renew or may revoke or suspend that person's
license or may take other disciplinary action against that
person based solely upon the certification of delinquency made
by the Department of Healthcare and Family Services in
accordance with item (5) of subsection (g) of Section 2105-15
of the Civil Administrative Code of Illinois.
(e) In enforcing this Section, the Department or Board upon
a showing of a possible violation may compel an individual
licensed to practice under this Act, or who has applied for
licensure under this Act, to submit to a mental or physical
examination, or both, as required by and at the expense of the
Department. The Department or Board may order the examining
physician to present testimony concerning the mental or
physical examination of the licensee or applicant. No
information shall be excluded by reason of any common law or
statutory privilege relating to communications between the
licensee or applicant and the examining physician. The

SB0092 - 31 - LRB098 06113 MGM 36154 b
examining physicians shall be specifically designated by the
Board or Department. The individual to be examined may have, at
his or her own expense, another physician of his or her choice
present during all aspects of this examination. Failure of an
individual to submit to a mental or physical examination, when
directed, shall be grounds for suspension of his or her license
until the individual submits to the examination if the
Department finds, after notice and hearing, that the refusal to
submit to the examination was without reasonable cause.
If the Department or Board finds an individual unable to
practice because of the reasons set forth in this Section, the
Department or Board may require that individual to submit to
care, counseling, or treatment by physicians approved or
designated by the Department or Board, as a condition, term, or
restriction for continued, reinstated, or renewed licensure to
practice; or, in lieu of care, counseling, or treatment, the
Department may file, or the Board may recommend to the
Department to file, a complaint to immediately suspend, revoke,
or otherwise discipline the license of the individual. An
individual whose license was granted, continued, reinstated,
renewed, disciplined or supervised subject to such terms,
conditions, or restrictions, and who fails to comply with such
terms, conditions, or restrictions, shall be referred to the
Secretary for a determination as to whether the individual
shall have his or her license suspended immediately, pending a
hearing by the Department.

SB0092 - 32 - LRB098 06113 MGM 36154 b
In instances in which the Secretary immediately suspends a
person's license under this Section, a hearing on that person's
license must be convened by the Department within 30 days after
the suspension and completed without appreciable delay. The
Department and Board shall have the authority to review the
subject individual's record of treatment and counseling
regarding the impairment to the extent permitted by applicable
federal statutes and regulations safeguarding the
confidentiality of medical records.
An individual licensed under this Act and affected under
this Section shall be afforded an opportunity to demonstrate to
the Department or Board that he or she can resume practice in
compliance with acceptable and prevailing standards under the
provisions of his or her license.
(Source: P.A. 96-856, eff. 12-31-09; 97-813, eff. 7-13-12;
97-1002, eff. 8-17-12.)
Section 99. Effective date. This Act takes effect January
1, 2014.