Bill Amendment: IL HB3528 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: REAL ESTATE LICENSE-CONT ED

Status: 2017-08-18 - Public Act . . . . . . . . . 100-0188 [HB3528 Detail]

Download: Illinois-2017-HB3528-House_Amendment_001.html

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Rep. Robert Rita

Filed: 4/21/2017

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AMENDMENT TO HOUSE BILL 3528
AMENDMENT NO. ______. Amend House Bill 3528 by replacing
everything after the enacting clause with the following:
"Section 5. The Real Estate License Act of 2000 is amended
by changing Sections 1-10, 5-5, 5-10, 5-27, 5-28, 5-50, 5-70,
5-75, 5-80, 20-20, 20-60, 25-10, 30-5, 30-15, 30-20, and 30-25
and the heading of Article 30 as follows:
(225 ILCS 454/1-10)
(Section scheduled to be repealed on January 1, 2020)
Sec. 1-10. Definitions. In this Act, unless the context
otherwise requires:
"Act" means the Real Estate License Act of 2000.
"Address of record" means the designated address recorded
by the Department in the applicant's or licensee's application
file or license file as maintained by the Department's
licensure maintenance unit. It is the duty of the applicant or

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licensee to inform the Department of any change of address, and
those changes must be made either through the Department's
website or by contacting the Department.
"Advisory Council" means the Real Estate Education
Advisory Council created under Section 30-10 of this Act.
"Agency" means a relationship in which a broker or
licensee, whether directly or through an affiliated licensee,
represents a consumer by the consumer's consent, whether
express or implied, in a real property transaction.
"Applicant" means any person, as defined in this Section,
who applies to the Department for a valid license as a managing
broker, broker, or leasing agent.
"Blind advertisement" means any real estate advertisement
that does not include the sponsoring broker's business name and
that is used by any licensee regarding the sale or lease of
real estate, including his or her own, licensed activities, or
the hiring of any licensee under this Act. The broker's
business name in the case of a franchise shall include the
franchise affiliation as well as the name of the individual
firm.
"Board" means the Real Estate Administration and
Disciplinary Board of the Department as created by Section
25-10 of this Act.
"Branch office" means a sponsoring broker's office other
than the sponsoring broker's principal office.
"Broker" means an individual, partnership, limited

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liability company, corporation, or registered limited
liability partnership other than a leasing agent who, whether
in person or through any media or technology, for another and
for compensation, or with the intention or expectation of
receiving compensation, either directly or indirectly:
(1) Sells, exchanges, purchases, rents, or leases real
estate.
(2) Offers to sell, exchange, purchase, rent, or lease
real estate.
(3) Negotiates, offers, attempts, or agrees to
negotiate the sale, exchange, purchase, rental, or leasing
of real estate.
(4) Lists, offers, attempts, or agrees to list real
estate for sale, rent, lease, or exchange.
(5) Buys, sells, offers to buy or sell, or otherwise
deals in options on real estate or improvements thereon.
(6) Supervises the collection, offer, attempt, or
agreement to collect rent for the use of real estate.
(7) Advertises or represents himself or herself as
being engaged in the business of buying, selling,
exchanging, renting, or leasing real estate.
(8) Assists or directs in procuring or referring of
leads or prospects, intended to result in the sale,
exchange, lease, or rental of real estate.
(9) Assists or directs in the negotiation of any
transaction intended to result in the sale, exchange,

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lease, or rental of real estate.
(10) Opens real estate to the public for marketing
purposes.
(11) Sells, rents, leases, or offers for sale or lease
real estate at auction.
(12) Prepares or provides a broker price opinion or
comparative market analysis as those terms are defined in
this Act, pursuant to the provisions of Section 10-45 of
this Act.
"Brokerage agreement" means a written or oral agreement
between a sponsoring broker and a consumer for licensed
activities to be provided to a consumer in return for
compensation or the right to receive compensation from another.
Brokerage agreements may constitute either a bilateral or a
unilateral agreement between the broker and the broker's client
depending upon the content of the brokerage agreement. All
exclusive brokerage agreements shall be in writing.
"Broker price opinion" means an estimate or analysis of the
probable selling price of a particular interest in real estate,
which may provide a varying level of detail about the
property's condition, market, and neighborhood and information
on comparable sales. The activities of a real estate broker or
managing broker engaging in the ordinary course of business as
a broker, as defined in this Section, shall not be considered a
broker price opinion if no compensation is paid to the broker
or managing broker, other than compensation based upon the sale

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or rental of real estate.
"Client" means a person who is being represented by a
licensee.
"Comparative market analysis" is an analysis or opinion
regarding pricing, marketing, or financial aspects relating to
a specified interest or interests in real estate that may be
based upon an analysis of comparative market data, the
expertise of the real estate broker or managing broker, and
such other factors as the broker or managing broker may deem
appropriate in developing or preparing such analysis or
opinion. The activities of a real estate broker or managing
broker engaging in the ordinary course of business as a broker,
as defined in this Section, shall not be considered a
comparative market analysis if no compensation is paid to the
broker or managing broker, other than compensation based upon
the sale or rental of real estate.
"Compensation" means the valuable consideration given by
one person or entity to another person or entity in exchange
for the performance of some activity or service. Compensation
shall include the transfer of valuable consideration,
including without limitation the following:
(1) commissions;
(2) referral fees;
(3) bonuses;
(4) prizes;
(5) merchandise;

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(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 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

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licensed activities.
"Continuing education school" means any person licensed by
the Department as a school for continuing education in
accordance with Section 30-15 of this Act.
"Coordinator" means the Coordinator of Real Estate created
in Section 25-15 of this Act.
"Credit hour" means 50 minutes of classroom instruction in
course work that meets the requirements set forth in rules
adopted by the Department.
"Customer" means a consumer who is not being represented by
the licensee but for whom the licensee is performing
ministerial acts.
"Department" means the Department of Financial and
Professional Regulation.
"Designated agency" means a contractual relationship
between a sponsoring broker and a client under Section 15-50 of
this Act in which one or more licensees associated with or
employed by the broker are designated as agent of the client.
"Designated agent" means a sponsored licensee named by a
sponsoring broker as the legal agent of a client, as provided
for in Section 15-50 of this Act.
"Dual agency" means an agency relationship in which a
licensee is representing both buyer and seller or both landlord
and tenant in the same transaction. When the agency
relationship is a designated agency, the question of whether
there is a dual agency shall be determined by the agency

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relationships of the designated agent of the parties and not of
the sponsoring broker.
"Education provider" means a school licensed by the
Department offering courses in pre-license, post-license, or
continuing education required by this Act.
"Employee" or other derivative of the word "employee", when
used to refer to, describe, or delineate the relationship
between a sponsoring broker and a managing broker, broker, or a
leasing agent, shall be construed to include an independent
contractor relationship, provided that a written agreement
exists that clearly establishes and states the relationship.
All responsibilities of a broker shall remain.
"Escrow moneys" means all moneys, promissory notes or any
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

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without the aid of a third party or other device.
"Exclusive brokerage agreement" means a written brokerage
agreement that provides that the sponsoring broker has the sole
right, through one or more sponsored licensees, to act as the
exclusive designated agent or representative of the client and
that meets the requirements of Section 15-75 of this Act.
"Inoperative" means a status of licensure where the
licensee holds a current license under this Act, but the
licensee is prohibited from engaging in licensed activities
because the licensee is unsponsored or the license of the
sponsoring broker with whom the licensee is associated or by
whom he or she is employed is currently expired, revoked,
suspended, or otherwise rendered invalid under this Act.
"Interactive delivery method" means delivery of a course by
an instructor through a medium allowing for 2-way communication
between the instructor and a student in which either can
initiate or respond to questions.
"Leads" means the name or names of a potential buyer,
seller, lessor, lessee, or client of a licensee.
"Leasing Agent" means a person who is employed by a broker
to engage in licensed activities limited to leasing residential
real estate who has obtained a license as provided for in
Section 5-5 of this Act.
"License" means the document issued by the Department
certifying that the person named thereon has fulfilled all
requirements prerequisite to licensure under this Act.

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"Licensed activities" means those activities listed in the
definition of "broker" under this Section.
"Licensee" means any person, as defined in this Section,
who holds a valid unexpired license as a managing broker,
broker, or leasing agent.
"Listing presentation" means a communication between a
managing broker or broker and a consumer in which the licensee
is attempting to secure a brokerage agreement with the consumer
to market the consumer's real estate for sale or lease.
"Managing broker" means a broker who has supervisory
responsibilities for licensees in one or, in the case of a
multi-office company, more than one office and who has been
appointed as such by the sponsoring broker.
"Medium of advertising" means any method of communication
intended to influence the general public to use or purchase a
particular good or service or real estate.
"Ministerial acts" means those acts that a licensee may
perform for a consumer that are informative or clerical in
nature and do not rise to the level of active representation on
behalf of a consumer. Examples of these acts include without
limitation (i) responding to phone inquiries by consumers as to
the availability and pricing of brokerage services, (ii)
responding to phone inquiries from a consumer concerning the
price or location of property, (iii) attending an open house
and responding to questions about the property from a consumer,
(iv) setting an appointment to view property, (v) responding to

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questions of consumers walking into a licensee's office
concerning brokerage services offered or particular
properties, (vi) accompanying an appraiser, inspector,
contractor, or similar third party on a visit to a property,
(vii) describing a property or the property's condition in
response to a consumer's inquiry, (viii) completing business or
factual information for a consumer on an offer or contract to
purchase on behalf of a client, (ix) showing a client through a
property being sold by an owner on his or her own behalf, or
(x) referral to another broker or service provider.
"Office" means a broker's place of business where the
general public is invited to transact business and where
records may be maintained and licenses displayed, whether or
not it is the broker's principal place of business.
"Person" means and includes individuals, entities,
corporations, limited liability companies, registered limited
liability partnerships, and partnerships, foreign or domestic,
except that when the context otherwise requires, the term may
refer to a single individual or other described entity.
"Personal assistant" means a licensed or unlicensed person
who has been hired for the purpose of aiding or assisting a
sponsored licensee in the performance of the sponsored
licensee's job.
"Pocket card" means the card issued by the Department to
signify that the person named on the card is currently licensed
under this Act.

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"Pre-license school" means a school licensed by the
Department offering courses in subjects related to real estate
transactions, including the subjects upon which an applicant is
examined in determining fitness to receive a license.
"Pre-renewal period" means the period between the date of
issue of a currently valid license and the license's expiration
date.
"Proctor" means any person, including, but not limited to,
an instructor, who has a written agreement to administer
examinations fairly and impartially with a licensed
pre-license school or a licensed continuing education provider
school.
"Real estate" means and includes leaseholds as well as any
other interest or estate in land, whether corporeal,
incorporeal, freehold, or non-freehold, including timeshare
interests, and whether the real estate is situated in this
State or elsewhere.
"Regular employee" means a person working an average of 20
hours per week for a person or entity who would be considered
as an employee under the Internal Revenue Service eleven main
tests in three categories being behavioral control, financial
control and the type of relationship of the parties, formerly
the twenty factor test.
"Secretary" means the Secretary of the Department of
Financial and Professional Regulation, or a person authorized
by the Secretary to act in the Secretary's stead.

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"Sponsoring broker" means the broker who has issued a
sponsor card to a licensed managing broker, broker, or a
leasing agent.
"Sponsor card" means the temporary permit issued by the
sponsoring broker certifying that the managing broker, broker,
or leasing agent named thereon is employed by or associated by
written agreement with the sponsoring broker, as provided for
in Section 5-40 of this Act.
(Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15;
99-227, eff. 8-3-15.)
(225 ILCS 454/5-5)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-5. Leasing agent license.
(a) The purpose of this Section is to provide for a limited
scope license to enable persons who wish to engage in
activities limited to the leasing of residential real property
for which a license is required under this Act, and only those
activities, to do so by obtaining the license provided for
under this Section.
(b) Notwithstanding the other provisions of this Act, there
is hereby created a leasing agent license that shall enable the
licensee to engage only in residential leasing activities for
which a license is required under this Act. Such activities
include without limitation leasing or renting residential real
property, or attempting, offering, or negotiating to lease or

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rent residential real property, or supervising the collection,
offer, attempt, or agreement to collect rent for the use of
residential real property. Nothing in this Section shall be
construed to require a licensed managing broker or broker to
obtain a leasing agent license in order to perform leasing
activities for which a license is required under this Act.
Licensed leasing agents, including those operating under
subsection (d), may engage in activities enumerated within the
definition of "leasing agent" in Section 1-10 of this Act and
may not engage in any activity that would otherwise require a
broker's license, including, but not limited to, selling,
offering for sale, negotiating for sale, listing or showing for
sale, or referring for sale or commercial lease real estate.
Licensed leasing agents must be sponsored and employed by a
sponsoring broker.
(c) The Department, by rule and in accordance with this
Act, shall provide for the licensing of leasing agents,
including the issuance, renewal, and administration of
licenses.
(d) Notwithstanding any other provisions of this Act to the
contrary, a person may engage in residential leasing activities
for which a license is required under this Act, for a period of
120 consecutive days without being licensed, so long as the
person is acting under the supervision of a sponsoring broker,
and the sponsoring broker has notified the Department that the
person is pursuing licensure under this Section, and the person

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has enrolled in the leasing agent pre-license education course
no later than 60 days after beginning to engage in residential
leasing activities. During the 120-day 120 day period all
requirements of Sections 5-10 and 5-65 of this Act with respect
to education, successful completion of an examination, and the
payment of all required fees must be satisfied. The Department
may adopt rules to ensure that the provisions of this
subsection are not used in a manner that enables an unlicensed
person to repeatedly or continually engage in activities for
which a license is required under this Act.
(Source: P.A. 99-227, eff. 8-3-15.)
(225 ILCS 454/5-10)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-10. Requirements for license as leasing agent;
continuing education.
(a) Every applicant for licensure as a leasing agent must
meet the following qualifications:
(1) be at least 18 years of age;
(2) be of good moral character;
(3) successfully complete a 4-year course of study in a
high school or secondary school or an equivalent course of
study approved by the Illinois State Board of Education;
(4) personally take and pass a written examination
authorized by the Department sufficient to demonstrate the
applicant's knowledge of the provisions of this Act

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relating to leasing agents and the applicant's competence
to engage in the activities of a licensed leasing agent;
(5) provide satisfactory evidence of having completed
15 hours of instruction in an approved course of study
relating to the leasing of residential real property. The
Board shall recommend to the Department the number of hours
each topic of study shall require. The course of study
shall, among other topics, cover the provisions of this Act
applicable to leasing agents; fair housing issues relating
to residential leasing; advertising and marketing issues;
leases, applications, and credit reports; owner-tenant
relationships and owner-tenant laws; the handling of
funds; and environmental issues relating to residential
real property;
(6) complete any other requirements as set forth by
rule; and
(7) present a valid application for issuance of an
initial license accompanied by a sponsor card and the fees
specified by rule.
(b) No applicant shall engage in any of the activities
covered by this Act until a valid sponsor card has been issued
to such applicant. The sponsor card shall be valid for a
maximum period of 45 days after the date of issuance unless
extended for good cause as provided by rule.
(c) Successfully completed course work, completed pursuant
to the requirements of this Section, may be applied to the

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course work requirements to obtain a managing broker's or
broker's license as provided by rule. The Board Advisory
Council may recommend through the Board to the Department and
the Department may adopt requirements for approved courses,
course content, and the approval of courses, instructors, and
education providers schools, as well as education provider
school and instructor fees. The Department may establish
continuing education requirements for licensed leasing agents,
by rule, consistent with the language and intent of this Act,
with the advice of the Advisory Council and Board.
(d) The continuing education requirement for leasing
agents shall consist of a single core curriculum to be
established by the Department as recommended by the Board.
Leasing agents shall be required to complete no less than 6
hours of continuing education in the core curriculum for each
2-year renewal period.
(Source: P.A. 99-227, eff. 8-3-15.)
(225 ILCS 454/5-27)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-27. Requirements for licensure as a broker.
(a) Every applicant for licensure as a broker must meet the
following qualifications:
(1) Be at least 21 years of age. The After April 30,
2011, the minimum age of 21 years shall be waived for any
person seeking a license as a broker who has attained the

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age of 18 and can provide evidence of the successful
completion of at least 4 semesters of post-secondary school
study as a full-time student or the equivalent, with major
emphasis on real estate courses, in a school approved by
the Department;
(2) Be of good moral character;
(3) Successfully complete a 4-year course of study in a
high school or secondary school approved by the Illinois
State Board of Education or an equivalent course of study
as determined by an examination conducted by the Illinois
State Board of Education which shall be verified under oath
by the applicant;
(4) (Blank);
(5) Provide After April 30, 2011, provide satisfactory
evidence of having completed 90 hours of instruction in
real estate courses approved by the Department Advisory
Council, 15 hours of which must consist of situational and
case studies presented in the classroom or by live, other
interactive webinar or online distance education courses
delivery method between the instructor and the students;
(6) Personally take and pass a written examination
authorized by the Department;
(7) Present a valid application for issuance of a
license accompanied by a sponsor card and the fees
specified by rule.
(b) The requirements specified in items (3) and (5) of

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subsection (a) of this Section do not apply to applicants who
are currently admitted to practice law by the Supreme Court of
Illinois and are currently in active standing.
(c) No applicant shall engage in any of the activities
covered by this Act until a valid sponsor card has been issued
to such applicant. The sponsor card shall be valid for a
maximum period of 45 days after the date of issuance unless
extended for good cause as provided by rule.
(d) All licenses should be readily available to the public
at their place of business.
(e) An individual holding an active license as a managing
broker may return the license to the Department along with a
form provided by the Department and shall be issued a broker's
license in exchange. Any individual obtaining a broker's
license under this subsection (e) shall be considered as having
obtained a broker's license by education and passing the
required test and shall be treated as such in determining
compliance with this Act.
(Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15;
99-227, eff. 8-3-15.)
(225 ILCS 454/5-28)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-28. Requirements for licensure as a managing broker.
(a) Every Effective May 1, 2012, every applicant for
licensure as a managing broker must meet the following

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qualifications:
(1) be at least 21 years of age;
(2) be of good moral character;
(3) have been licensed at least 2 out of the preceding
3 years as a broker;
(4) successfully complete a 4-year course of study in
high school or secondary school approved by the Illinois
State Board of Education or an equivalent course of study
as determined by an examination conducted by the Illinois
State Board of Education, which shall be verified under
oath by the applicant;
(5) provide satisfactory evidence of having completed
at least 165 hours, 120 of which shall be those hours
required pre and post-licensure to obtain a broker's
license, and 45 additional hours completed within the year
immediately preceding the filing of an application for a
managing broker's license, which hours shall focus on
brokerage administration and management and leasing agent
management and include at least 15 hours in the classroom
or by live, other interactive webinar or online distance
education courses delivery method between the instructor
and the students;
(6) personally take and pass a written examination
authorized by the Department; and
(7) present a valid application for issuance of a
license accompanied by a sponsor card, an appointment as a

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managing broker, and the fees specified by rule.
(b) The requirements specified in item (5) of subsection
(a) of this Section do not apply to applicants who are
currently admitted to practice law by the Supreme Court of
Illinois and are currently in active standing.
(c) No applicant shall act as a managing broker for more
than 90 days after an appointment as a managing broker has been
filed with the Department without obtaining a managing broker's
license.
(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15.)
(225 ILCS 454/5-50)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-50. Expiration and renewal of managing broker,
broker, or leasing agent license; sponsoring broker; register
of licensees; pocket card.
(a) The expiration date and renewal period for each license
issued under this Act shall be set by rule. Except as otherwise
provided in this Section, the holder of a license may renew the
license within 90 days preceding the expiration date thereof by
completing the continuing education required by this Act and
paying the fees specified by rule.
(b) An individual whose first license is that of a broker
received on or after the effective date of this amendatory Act
of the 100th General Assembly April 30, 2011, must provide
evidence of having completed 30 hours of post-license education

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

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

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shall further indicate that the person named thereon is
authorized by the Department to engage in the licensed activity
appropriate for his or her status (managing broker, broker, or
leasing agent). Each licensee shall carry on his or her person
his or her pocket card or, if such pocket card has not yet been
issued, a properly issued sponsor card when engaging in any
licensed activity and shall display the same on demand.
(f) The Department shall provide to the sponsoring broker a
notice of renewal for all sponsored licensees by mailing the
notice to the sponsoring broker's address of record, or, at the
Department's discretion, by an electronic means as provided for
by rule.
(g) Upon request from the sponsoring broker, the Department
shall make available to the sponsoring broker, either by mail
or by an electronic means at the discretion of the Department,
a listing of licensees under this Act who, according to the
records of the Department, are sponsored by that broker. Every
licensee associated with or employed by a broker whose license
is revoked, suspended, terminated, or expired shall be
considered as inoperative until such time as the sponsoring
broker's license is reinstated or renewed, or the licensee
changes employment as set forth in subsection (c) of Section
5-40 of this Act.
(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15.)
(225 ILCS 454/5-70)

10000HB3528ham001 - 25 - LRB100 11358 SMS 24898 a
(Section scheduled to be repealed on January 1, 2020)
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 his or her license as a
managing broker or broker must successfully complete 6 hours of
real estate continuing education courses recommended by the
Board and approved by the Department Advisory Council for each
year of the pre-renewal period. In addition, beginning with the
pre-renewal period for managing broker licensees that begins
after the effective date of this Act, those licensees renewing
or obtaining a managing broker's license must successfully
complete a 12-hour broker management continuing education
course approved by the Department each pre-renewal period. The
broker management continuing education course must be
completed in the classroom or by other interactive delivery
method between the instructor and the students. Successful
completion of the course shall include achieving a passing
score as provided by rule on a test developed and administered
in accordance with rules adopted by the Department. 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 with the recommendation of the Board Advisory

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Council. The requirements of this Article are applicable to all
managing brokers and brokers except those managing brokers and
brokers who, during the pre-renewal period:
(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 and
an elective curriculum, to be recommended established by the
Board and approved by the Department in accordance with this
subsection. The core curriculum shall not be further divided
into subcategories or divisions of instruction. The core
curriculum shall consist of 4 hours per 2-year Advisory
Council. In meeting the continuing education requirements of
this Act, at least 3 hours per year or their equivalent, 6
hours for each two-year pre-renewal period on subjects that may
include, but are not limited to, advertising, agency,
disclosures, escrow, fair housing, leasing agent management,
and license law. The amount of time allotted to each of these

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subjects shall be recommended by the Board and determined by
the Department , shall be required to be completed in the core
curriculum. 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 In
establishing the core curriculum, the Board Advisory Council
shall consider subjects that will educate licensees on recent
changes in applicable laws, and new laws, and refresh the
licensee on areas of the license law and the Department policy
that the Board Advisory Council deems appropriate, and any
other subject areas the Board that the Advisory Council 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
Advisory Council shall consider subjects that cover the various
aspects of the practice of real estate that are covered under
the scope of this Act. However, the elective curriculum shall
not include any offerings referred to in Section 5-85 of this

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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
Advisory Council 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) rights and duties of sellers, buyers, and brokers;
(10) commercial brokerage and leasing; and
(11) real estate financing; .
(12) disclosures;
(13) leasing agent management; and
(14) advertising.
(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.

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(h) Credit hours may be earned for self-study programs
approved by the Department Advisory Council.
(i) A managing broker or broker may earn credit for a
specific continuing education course only once during the
pre-renewal prerenewal period.
(j) No more than 6 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
continuing 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 the course is developed in this manner, the
Department or the outside consultant shall license the use of
that course to all approved continuing 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
or post-license courses. The approved 30-hour post-license
course for broker licensees shall satisfy the continuing
education requirement for the pre-renewal period in which the
course is taken. The approved 45-hour brokerage administration
and management course shall satisfy the 12-hour broker
management continuing education requirement for the

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pre-renewal period in which the course is taken.
(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15;
99-728, eff. 1-1-17.)
(225 ILCS 454/5-75)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-75. Out-of-state continuing education credit. If a
renewal applicant has earned continuing education hours in
another state or territory for which he or she is claiming
credit toward full compliance in Illinois, the Board Advisory
Council shall review and recommend to the Department whether it
should , approve, or disapprove those hours based upon whether
the course is one that would be approved under Section 5-70 of
this Act, whether the course meets the basic requirements for
continuing education under this Act, and any other criteria
that is provided by statute or rule.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/5-80)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-80. Evidence of compliance with continuing
education requirements.
(a) Each renewal applicant shall certify, on his or her
renewal application, full compliance with continuing education
requirements set forth in Section 5-70. The continuing
education provider school shall retain and submit to the

10000HB3528ham001 - 31 - LRB100 11358 SMS 24898 a
Department after the completion of each course evidence of
those successfully completing the course as provided by rule.
(b) The Department may require additional evidence
demonstrating compliance with the continuing education
requirements. The renewal applicant shall retain and produce
the evidence of compliance upon request of the Department.
(Source: P.A. 96-856, eff. 12-31-09.)
(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

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sanction by a government agency in this State or any other
jurisdiction. Action taken under this paragraph (2) for a
misdemeanor or an administrative sanction is limited to a
misdemeanor or administrative sanction that has as an
essential element dishonesty or fraud or involves larceny,
embezzlement, or obtaining money, property, or credit by
false pretenses or by means of a confidence game.
(3) Inability to practice the profession with
reasonable judgment, skill, or safety as a result of a
physical illness, including, but not limited to,
deterioration through the aging process or loss of motor
skill, or a mental illness or disability.
(4) Practice under this Act as a licensee in a retail
sales establishment from an office, desk, or space that is
not separated from the main retail business by a separate
and distinct area within the establishment.
(5) Having been disciplined by another state, the
District of Columbia, a territory, a foreign nation, or a
governmental agency authorized to impose discipline if at
least one of the grounds for that discipline is the same as
or the equivalent of one of the grounds for which a
licensee may be disciplined under this Act. A certified
copy of the record of the action by the other state or
jurisdiction shall be prima facie evidence thereof.
(6) Engaging in the practice of real estate brokerage
without a license or after the licensee's license or

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temporary permit was expired or while the license was
inoperative.
(7) Cheating on or attempting to subvert the Real
Estate License Exam or continuing education exam.
(8) Aiding or abetting an applicant to subvert or cheat
on the Real Estate License Exam or continuing education
exam administered pursuant to this Act.
(9) Advertising that is inaccurate, misleading, or
contrary to the provisions of the Act.
(10) Making any substantial misrepresentation or
untruthful advertising.
(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

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others.
(17) Failure to maintain and deposit in a special
account, separate and apart from personal and other
business accounts, all escrow moneys belonging to others
entrusted to a licensee while acting as a broker, escrow
agent, or temporary custodian of the funds of others or
failure to maintain all escrow moneys on deposit in the
account until the transactions are consummated or
terminated, except to the extent that the moneys, or any
part thereof, shall be:
(A) disbursed prior to the consummation or
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

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a court of competent jurisdiction; and (iii) if 6
months have elapsed after the receipt of a written
demand for the escrow moneys from one of the principals
to the transaction or the principal's duly authorized
agent.
The account shall be noninterest bearing, unless the
character of the deposit is such that payment of interest
thereon is otherwise required by law or unless the
principals to the transaction specifically require, in
writing, that the deposit be placed in an interest bearing
account.
(18) Failure to make available to the Department all
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.

10000HB3528ham001 - 36 - LRB100 11358 SMS 24898 a
(23) Employing any person on a purely temporary or
single deal basis as a means of evading the law regarding
payment of commission to nonlicensees on some contemplated
transactions.
(24) Permitting the use of his or her license as a
broker to enable a leasing agent or unlicensed person to
operate a real estate business without actual
participation therein and control thereof by the broker.
(25) Any other conduct, whether of the same or a
different character from that specified in this Section,
that constitutes dishonest dealing.
(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

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conditional or unconditional written contract with a
seller, prior to entering into a brokerage agreement
with the seller, by the terms of which a licensee
agrees to purchase a property of the seller within a
specified period of time at a specific price in the
event the property is not sold in accordance with the
terms of a brokerage agreement to be entered into
between the sponsoring broker and the seller.
(B) A licensee offering a guaranteed sales plan
shall provide the details and conditions of the plan in
writing to the party to whom the plan is offered.
(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

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terms shall be subject to all the penalties provided in
this Act for violations thereof and, in addition, shall
be subject to a civil fine payable to the party injured
by the default in an amount of up to $25,000.
(30) Influencing or attempting to influence, by any
words or acts, a prospective seller, purchaser, occupant,
landlord, or tenant of real estate, in connection with
viewing, buying, or leasing real estate, so as to promote
or tend to promote the continuance or maintenance of
racially and religiously segregated housing or so as to
retard, obstruct, or discourage racially integrated
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

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broker.
(34) When a licensee is also an attorney, acting as the
attorney for either the buyer or the seller in the same
transaction in which the licensee is acting or has acted as
a managing broker or broker.
(35) Advertising or offering merchandise or services
as free if any conditions or obligations necessary for
receiving the merchandise or services are not disclosed in
the same advertisement or offer. These conditions or
obligations include without limitation the requirement
that the recipient attend a promotional activity or visit a
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.

10000HB3528ham001 - 40 - LRB100 11358 SMS 24898 a
(39) Requiring a party to a transaction who is not a
client of the licensee to allow the licensee to retain a
portion of the escrow moneys for payment of the licensee's
commission or expenses as a condition for release of the
escrow moneys to that party.
(40) Disregarding or violating any provision of this
Act or the published rules promulgated by the Department to
enforce this Act or aiding or abetting any individual,
partnership, registered limited liability partnership,
limited liability company, or corporation in disregarding
any provision of this Act or the published rules
promulgated by the Department to enforce this Act.
(41) Failing to provide the minimum services required
by Section 15-75 of this Act when acting under an exclusive
brokerage agreement.
(42) Habitual or excessive use or addiction to alcohol,
narcotics, stimulants, or any other chemical agent or drug
that results in a managing broker, broker, or leasing
agent's inability to practice with reasonable skill or
safety.
(43) Enabling, aiding, or abetting an auctioneer, as
defined in the Auction License Act, to conduct a real
estate auction in a manner that is in violation of this
Act.
(44) Permitting any leasing agent or temporary leasing
agent permit holder to engage in activities that require a

10000HB3528ham001 - 41 - LRB100 11358 SMS 24898 a
broker's or managing broker's license.
(b) The Department may refuse to issue or renew or may
suspend the license of any person who fails to file a return,
pay the tax, penalty or interest shown in a filed return, or
pay any final assessment of tax, penalty, or interest, as
required by any tax Act administered by the Department of
Revenue, until such time as the requirements of that tax Act
are satisfied in accordance with subsection (g) of Section
2105-15 of the Civil Administrative Code of Illinois.
(c) The Department shall deny a license or renewal
authorized by this Act to a person who has defaulted on an
educational loan or scholarship provided or guaranteed by the
Illinois Student Assistance Commission or any governmental
agency of this State in accordance with item (5) of subsection
(a) of Section 2105-15 of the Civil Administrative Code of
Illinois.
(d) In cases where the Department of Healthcare and Family
Services (formerly Department of Public Aid) has previously
determined that a licensee or a potential licensee is more than
30 days delinquent in the payment of child support and has
subsequently certified the delinquency to the Department may
refuse to issue or renew or may revoke or suspend that person's
license or may take other disciplinary action against that
person based solely upon the certification of delinquency made
by the Department of Healthcare and Family Services in
accordance with item (5) of subsection (a) of Section 2105-15

10000HB3528ham001 - 42 - LRB100 11358 SMS 24898 a
of the Civil Administrative Code of Illinois.
(e) In enforcing this Section, the Department or Board upon
a showing of a possible violation may compel an individual
licensed to practice under this Act, or who has applied for
licensure under this Act, to submit to a mental or physical
examination, or both, as required by and at the expense of the
Department. The Department or Board may order the examining
physician to present testimony concerning the mental or
physical examination of the licensee or applicant. No
information shall be excluded by reason of any common law or
statutory privilege relating to communications between the
licensee or applicant and the examining physician. The
examining physicians shall be specifically designated by the
Board or Department. The individual to be examined may have, at
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

10000HB3528ham001 - 43 - LRB100 11358 SMS 24898 a
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 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.

10000HB3528ham001 - 44 - LRB100 11358 SMS 24898 a
(Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14;
99-227, eff. 8-3-15.)
(225 ILCS 454/20-60)
(Section scheduled to be repealed on January 1, 2020)
Sec. 20-60. Investigations notice and hearing. The
Department may investigate the actions of any applicant or of
any person or persons rendering or offering to render services
or any person holding or claiming to hold a license under this
Act and may notify his or her managing broker and sponsoring
broker of the pending investigation. The Department shall,
before revoking, suspending, placing on probation,
reprimanding, or taking any other disciplinary action under
Article 20 of this Act, at least 30 days before the date set
for the hearing, (i) notify the accused and his or her managing
broker and sponsoring broker in writing of the charges made and
the time and place for the hearing on the charges, (ii) direct
the accused him or her to file a written answer to the charges
with the Board under oath within 20 days after the service on
him or her of the notice, and (iii) inform the accused that if
he or she fails to answer, default will be taken against him or
her or that his or her license may be suspended, revoked,
placed on probationary status, or other disciplinary action
taken with regard to the license, including limiting the scope,
nature, or extent of his or her practice, as the Department may
consider proper. At the time and place fixed in the notice, the

10000HB3528ham001 - 45 - LRB100 11358 SMS 24898 a
Board shall proceed to hear the charges and the parties or
their counsel shall be accorded ample opportunity to present
any pertinent statements, testimony, evidence, and arguments.
The Board may continue the hearing from time to time. In case
the person, after receiving the notice, fails to file an
answer, his or her license may, in the discretion of the
Department, be suspended, revoked, placed on probationary
status, or the Department may take whatever disciplinary action
considered proper, including limiting the scope, nature, or
extent of the person's practice or the imposition of a fine,
without a hearing, if the act or acts charged constitute
sufficient grounds for that action under this Act. The written
notice may be served by personal delivery or by certified mail
to the address specified by the accused in his or her last
notification with the Department and shall include notice to
the managing broker and sponsoring broker. A copy of the
Department's final order shall be delivered to the managing
broker and sponsoring broker.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/25-10)
(Section scheduled to be repealed on January 1, 2020)
Sec. 25-10. Real Estate Administration and Disciplinary
Board; duties. There is created the Real Estate Administration
and Disciplinary Board. The Board shall be composed of 15 9
persons appointed by the Governor. Members shall be appointed

10000HB3528ham001 - 46 - LRB100 11358 SMS 24898 a
to the Board subject to the following conditions:
(1) All members shall have been residents and citizens
of this State for at least 6 years prior to the date of
appointment.
(2) Twelve Six members shall have been actively engaged
as managing brokers or brokers or both for at least the 10
years prior to the appointment, 2 of whom must possess an
active pre-license instructor license.
(3) Three members of the Board shall be public members
who represent consumer interests.
None of these members shall be (i) a person who is licensed
under this Act or a similar Act of another jurisdiction, (ii)
the spouse or family member of a licensee, (iii) a person who
has an ownership interest in a real estate brokerage business,
or (iv) a person the Department determines to have any other
connection with a real estate brokerage business or a licensee.
The members' terms shall be 4 years or until their
successor is appointed, and the expiration of their terms shall
be staggered. No member shall be reappointed to the Board for a
term that would cause his or her cumulative service to the
Board to exceed 12 years. Appointments to fill vacancies shall
be for the unexpired portion of the term. Those members of the
Board that satisfy the requirements of paragraph (2) shall be
chosen in a manner such that no area of the State shall be
unreasonably represented. The membership of the Board should
reasonably reflect the geographic distribution of the licensee

10000HB3528ham001 - 47 - LRB100 11358 SMS 24898 a
population in this State. In making the appointments, the
Governor shall give due consideration to the recommendations by
members and organizations of the profession. The Governor may
terminate the appointment of any member for cause that in the
opinion of the Governor reasonably justifies the termination.
Cause for termination shall include without limitation
misconduct, incapacity, neglect of duty, or missing 4 board
meetings during any one calendar year. Each member of the Board
may receive a per diem stipend in an amount to be determined by
the Secretary. Each member shall be paid his or her necessary
expenses while engaged in the performance of his or her duties.
Such compensation and expenses shall be paid out of the Real
Estate License Administration Fund. The Secretary shall
consider the recommendations of the Board on questions
involving standards of professional conduct, discipline,
education, and policies and procedures and examination of
candidates under this Act. With regard to this subject matter,
the Secretary may establish temporary or permanent committees
of the Board and may consider the recommendations of the Board
on matters that include, but are not limited to, criteria for
the licensing and renewal of education providers, pre-license
and continuing education instructors, pre-license and
continuing education curricula, standards of educational
criteria, and qualifications for licensure and renewal of
professions, courses, and instructors. The Department, after
notifying and considering the recommendations of the Board, if

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any, may issue rules, consistent with the provisions of this
Act, for the administration and enforcement thereof and may
prescribe forms that shall be used in connection therewith.
Eight Five Board members shall constitute a quorum. A quorum is
required for all Board decisions.
(Source: P.A. 98-1109, eff. 1-1-15; 99-227, eff. 8-3-15.)
(225 ILCS 454/Art. 30 heading)
ARTICLE 30. EDUCATION PROVIDERS AND COURSES SCHOOLS AND
INSTRUCTORS
(225 ILCS 454/30-5)
(Section scheduled to be repealed on January 1, 2020)
Sec. 30-5. Licensing of real estate education providers,
education provider pre-license schools, school branches, 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 writing on forms prescribed by
the Department and pay the fee prescribed by rule. In addition
to any other information required to be contained in the

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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. No person
shall operate a pre-license school or school branch without
possessing a valid pre-license school or school branch license
issued by the Department. No person shall act as a pre-license
instructor at a pre-license school or school branch without
possessing a valid pre-license instructor license issued by the
Department. Every person who desires to obtain a pre-license
school, school branch, or pre-license instructor license shall
make application to the Department in writing in form and
substance satisfactory to the Department and pay the required
fees prescribed 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, which shall be retained in the agency's
records pertaining to the license. 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 school, school
branch, or pre-license instructor license to applicants who
meet qualification criteria established by rule. The
Department may refuse to issue, suspend, revoke, or otherwise
discipline a pre-license school, school branch, or pre-license

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instructor license or may withdraw approval of a course offered
by a pre-license school for good cause. Disciplinary
proceedings shall be conducted by the Board in the same manner
as other disciplinary proceedings under this Act.
(b) (Blank). All pre-license 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. A pre-license instructor may teach at more than one
licensed pre-license school.
(c) (Blank). The term of license for pre-license schools,
branches, and instructors shall be 2 years as established by
rule.
(d) (Blank). The Department or the Advisory Council may,
after notice, cause a pre-license school to attend an informal
conference before the Advisory Council 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 Advisory Council shall make a
recommendation to the Board as a result of its findings at the
conclusion of any such informal conference.
(e) (Blank). For purposes of this Section, the term
"pre-license" shall also include the 30-hour post-license
course required to be taken to retain a broker's license.
(f) To qualify for an education provider license, an
applicant must demonstrate the following:
(1) a sound financial base for establishing,

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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 on forms provided by the
Department;
(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;
(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;

10000HB3528ham001 - 52 - LRB100 11358 SMS 24898 a
(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 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 must provide for closed book examinations
for each course 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) The Department may, or upon request of the 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

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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.
(Source: P.A. 96-856, eff. 12-31-09; 97-400, eff. 1-1-12.)
(225 ILCS 454/30-15)
(Section scheduled to be repealed on January 1, 2020)
Sec. 30-15. Licensing of continuing education providers
schools; approval of courses.
(a) (Blank). Only continuing education schools in
possession of a valid continuing education school license may
provide real estate continuing education courses that will
satisfy the requirements of this Act. Pre-license schools
licensed to offer pre-license education courses for brokers,
managing brokers, or leasing agents shall qualify for a
continuing education school license upon completion of an
application and the submission of the required fee. Every
entity that desires to obtain a continuing education school
license shall make application to the Department in writing in
forms prescribed by the Department and pay the fee prescribed

10000HB3528ham001 - 54 - LRB100 11358 SMS 24898 a
by rule. In addition to any other information required to be
contained in the application, every application for an original
or renewed license shall include the applicant's Social
Security number.
(b) (Blank). The criteria for a continuing education
license shall include 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 continuing education school on forms provided by
the Department.
(6) The continuing education school must have a written
policy dealing with procedures for the management of
grievances and fee refunds.
(7) The continuing education school shall maintain
lesson plans and examinations for each course.

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(8) The continuing education school shall require a 70%
passing grade for successful completion of any continuing
education course.
(9) The continuing education school shall identify and
use instructors who will teach in a planned program.
Suggested criteria for instructor selections include:
(A) appropriate credentials;
(B) competence as a teacher;
(C) knowledge of content area; and
(D) qualification by experience.
(10) The continuing education school shall provide a
proctor or an electronic means of proctoring for each
examination. The continuing education school shall be
responsible for the conduct of the proctor. The duties and
responsibilities of a proctor shall be established by rule.
(11) The continuing education school must provide for
closed book examinations for each course unless the
Advisory Council excuses this requirement based on the
complexity of the course material.
(c) (Blank). Advertising and promotion of continuing
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.

10000HB3528ham001 - 56 - LRB100 11358 SMS 24898 a
(d) (Blank). The Department may or upon request of the
Advisory Council shall, after notice, cause a continuing
education school to attend an informal conference before the
Advisory Council 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
Advisory Council shall make a recommendation to the Board as a
result of its findings at the conclusion of any such informal
conference.
(e) (Blank). All continuing education schools shall
maintain these minimum criteria and pay the required fee in
order to retain their continuing education school license.
(f) All education providers continuing education schools
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 continuing education school. The
Department may , however, shall establish an online a mechanism
by which education providers whereby continuing education
schools may submit apply for and obtain approval by the
Department upon the recommendation of the Board or its designee
pre-license, post-license, or continuing education for
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 continuing education school a certificate for each

10000HB3528ham001 - 57 - LRB100 11358 SMS 24898 a
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 continuing education school. All
education providers continuing education schools 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.
(g) Each education provider continuing education school
shall provide to the Department a monthly 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 continuing education provider school for the
prior month.
(h) The Department, upon the recommendation of the Board
Advisory Council, may temporarily suspend a licensed
continuing education provider's school's approved courses
without hearing and refuse to accept successful completion of
or participation in any of these pre-license, post-license, or

10000HB3528ham001 - 58 - LRB100 11358 SMS 24898 a
continuing education courses for continuing education credit
from that education provider school upon the failure of that
continuing education provider school 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 continuing education provider school 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 a
continuing education provider school 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 Board in the same manner as other disciplinary
proceedings under this Act.
(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) No continuing education course shall be required to
be taught in increments longer than 2 hours in duration;
however, for each 2 hours of course time in each course,
there shall be a minimum of 100 minutes of instruction.

10000HB3528ham001 - 59 - LRB100 11358 SMS 24898 a
(2) All core curriculum courses shall be provided only
in the classroom or through a live, interactive webinar or
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 30 minutes of course instruction. In no event shall the
interval between polling questions exceed 30 minutes.
(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 online distance
education format shall not require an examination.
(6) Credit for courses provided through
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

10000HB3528ham001 - 60 - LRB100 11358 SMS 24898 a
necessary for the implementation and enforcement of this
Section.
(Source: P.A. 99-227, eff. 8-3-15.)
(225 ILCS 454/30-20)
(Section scheduled to be repealed on January 1, 2020)
Sec. 30-20. Fees for continuing education provider school
license; renewal; term. All applications for an a continuing
education provider school license shall be accompanied by a
nonrefundable application fee in an amount established by rule.
All continuing education providers schools shall be required to
submit a renewal application, the required fee as established
by rule, and a listing of the courses to be offered during the
year in order to renew their continuing education provider
school licenses. The term for an a continuing education
provider school license shall be 2 years and as established by
rule. The fees collected under this Article 30 shall be
deposited in the Real Estate License Administration Fund and
shall be used to defray the cost of administration of the
program and per diem of the Board Advisory Council as
determined by the Secretary.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/30-25)
(Section scheduled to be repealed on January 1, 2020)
Sec. 30-25. Licensing of continuing education provider

10000HB3528ham001 - 61 - LRB100 11358 SMS 24898 a
instructors.
(a) No such person shall act as either a pre-license or
continuing education instructor at a continuing education
school or branch without possessing a valid pre-license or
continuing education instructor license and satisfying any
other qualification criteria established by the Department by
rule.
(a-5) Each person that is an instructor for pre-license,
continuing education core curriculum, or broker management
education courses shall meet specific criteria established by
the Department by rule. Those persons who have not met the
criteria shall only teach continuing education elective
curriculum courses.
(b) Every After the effective date of this Act, every
person who desires to obtain an a continuing 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 and as established by
rule. Every person who desires to obtain a pre-license or
continuing education instructor license shall make application
to the Department in writing on forms prescribed by the

10000HB3528ham001 - 62 - LRB100 11358 SMS 24898 a
Department Office, accompanied by the fee prescribed 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, which
shall be retained in the agency's records pertaining to the
license. 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 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

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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.
(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. 96-856, eff. 12-31-09; 97-400, eff. 1-1-12.)
(225 ILCS 454/5-26 rep.)
(225 ILCS 454/5-85 rep.)
(225 ILCS 454/20-78 rep.)
(225 ILCS 454/30-10 rep.)
Section 10. The Real Estate License Act of 2000 is amended
by repealing Sections 5-26, 5-85, 20-78, and 30-10.
Section 99. Effective date. This Act takes effect January
1, 2018.".