Modern Real Estate Practice in Illinois Chapter 14: Illinois Real Estate License Law

© 2008 Dearborn Real Estate Education Administration of the Ilinois Real Estate License Act Illinois Department of Financial and Professional Regulation (IDFPR) Bureau of Real Estate Professionals Director of Real Estate Real Estate Administration and Disciplinary Board –Composition of the Board Real Estate Education Advisory Council Real Estate Research and Education Fund

© 2008 Dearborn Real Estate Education Obtaining and Keeping a Real Estate License Services that require a real estate license Exempt Persons Civil Penalty for the Unlicensed Practice of Real Estate

© 2008 Dearborn Real Estate Education License Categories and Requirements General Requirements Broker’s License –Broker requirements Salesperson’s License –Salesperson requirements –Three-year Validity Rule for Education Transcripts Corporations, Limited Liability Companies and Partnerships Leasing Agent’s License

© 2008 Dearborn Real Estate Education The Licensing Examination Anyone applying for an original broker’s, salesperson’s or leasing agent’s license must receive a passing score on a written exam administered by an independent testing agency

© 2008 Dearborn Real Estate Education The Real Estate License The license is to be displayed conspicuously in the licensee’s place of business Leaving or changing firms Inoperative or expired license Nonresidents and license by reciprocity

© 2008 Dearborn Real Estate Education License Fees Licensing fees Expiration and renewal of current licenses Change of address and renewal Renewal of expired license Renewal without fee

© 2008 Dearborn Real Estate Education Continuing Education Requirements –Salesperson: Six hours per year of real estate continuing education (12 hours of CE in any license renewal period) approved by the Real Estate Education Council –Broker: In addition brokers must complete a 6- hour Broker management course, for a total of 18 hours for the two year renewal period.

© 2008 Dearborn Real Estate Education Continuing Education –Course content Core requirements Electives Courses that may not be used for CE –Exemptions and waivers

© 2008 Dearborn Real Estate Education Your Real Estate Business and the Act Place of Business –Each real estate broker actively engaged in the real estate business must maintain a definite office or place of business within Illinois –Exceptions –Branch offices

© 2008 Dearborn Real Estate Education Your Real Estate Business and the Act Employment Agreements Agency relationships Disclosure Handling client funds Personal assistants Advertising regulations Compensation and business practice

© 2008 Dearborn Real Estate Education 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

© 2008 Dearborn Real Estate Education 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

© 2008 Dearborn Real Estate Education 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

© 2008 Dearborn Real Estate Education 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