Modern Real Estate Practice in Illinois 7th Edition

Chapter 14: Illinois Real Estate License Law

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Administration of the Illinois Real Estate License Act

• Illinois Department of Financial and Professional Regulation (the Department)

• Division of Professional Regulation• Real Estate Coordinator - duties• Real Estate Administration and Disciplinary

Board– Composition of the Board

• Advisory Council• Real Estate Research and Education Fund

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Obtaining and Keeping a Real Estate License

• Services that require a real estate license• License exemptions• Civil Penalty for the Unlicensed Practice of

Real Estate - $25,000 per offense

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License Categories and Requirements• General Requirements

– HS or GED– Moral person– Pass license exam– Attorney exemption– Course work good for 4 yrs

• Broker’s License– Entry level license– 21 Yrs old (18 yrs exception)– 90 hours instruction– 30 hours within first renewal period

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License Categories and Requirements• Managing Broker License

– 21 yrs old– 165 hours (120 + 30 hours for Broker license +

45 hr Managing Broker course)– 12 hour Broker Mgr course– 2 years experience

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License Categories and Requirements• Corporations, Limited Liability Companies

and Partnerships– All officers who manage business must have

managing broker license– All partners, members must have managing

broker license– Non managing brokers cannot own more than

49%

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License Categories and Requirements• Leasing Agent’s License

– 18 years old– HS or GED– 15 hour instruction– Pass license exam– 120 day period without license

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The Licensing Examination

• Anyone applying for an original broker, managing broker or leasing agent’s license must receive a passing score on a written exam administered by an independent testing agency (AMP)

• Two parts 1) national 2) state• 75% is passing• 4 attempts

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The Real Estate License

• The branch license is to be displayed conspicuously in the place of business

• The licenses of sponsored agents are to be available at the place of business

• Changing business address or name• Leaving or changing firms• Inoperative or expired license• Nonresidents and license by reciprocity

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License Fees

• Licensing fees• Expiration and renewal of current licenses

– broker – managing broker– leasing agent– business

• Renewal of expired license – up to two yrs• Renewal of expired license – 2 to 5 yrs

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Continuing Education

• Requirements Broker– First renewal 30 hours– Six hours per year (12 hours of CE in any license

renewal period)

• Requirements Managing Broker– Six hours per year (12 hours of CE in any license

renewal period) – In addition brokers must complete a 12-hour

broker management course

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Continuing Education

– Course content• Core requirements• Electives• Courses that may not be used for CE

– Exemptions and waivers

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Your Real Estate Business and the Act

• Place of Business– Each real estate managing broker actively

engaged in the real estate business must maintain a definite office or place of business within Illinois

– Exceptions– Branch offices

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Your Real Estate Business and the Act

• Employment Agreements• Agency relationships• Disclosure• Handling client funds• Personal assistants• Advertising regulations• Compensation and business practice

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Disciplinary Provisions and Loss of License

• Causes for discipline• Not subject to discipline

– Multiple-client transactions within designated agency

– Unlawful actions by associates if no broker knowledge

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Disciplinary Provisions and Loss of License

• Procedure for disciplinary hearings • Disciplinary consent orders• Judicial review• Criminal prosecution and penalties• Injunctions• Disciplinary statute of limitations• Index of decisions

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The Real Estate Recovery Fund

• Provides a means of compensation for actual monetary losses suffered by any person as a result of certain violations by a licensee or a licensee’s unlicensed employee

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The Real Estate Recovery Fund

• Recovery amounts• Fund losses held• Collection from the recovery fund • Statute of limitations• Disciplinary action against the licensee• Financing the recovery fund