Bill Amendment: IL SB0838 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: ROOFING ACT-SUNSET

Status: 2015-08-26 - Public Act . . . . . . . . . 99-0469 [SB0838 Detail]

Download: Illinois-2015-SB0838-House_Amendment_003.html

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Rep. Robert Rita

Filed: 5/14/2015

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AMENDMENT TO SENATE BILL 838
AMENDMENT NO. ______. Amend Senate Bill 838 on page 51,
immediately below line 6, by inserting the following:
"Section 20. The Real Estate License Act of 2000 is amended
by changing Sections 1-10 and 5-32 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(Section scheduled to be repealed on January 1, 2020)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
licensee to inform the Department of any change of address, and
those changes must be made either through the Department's

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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 real estate 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 real
estate broker, real estate salesperson, 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
liability company, corporation, or registered limited
liability partnership other than a real estate salesperson or

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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, 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,
lease, or rental of real estate.

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(10) Opens real estate to the public for marketing
purposes.
(11) Sells, 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
or rental of real estate.

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"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;
(6) finder fees;

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(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
licensed activities.

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"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
relationships of the designated agent of the parties and not of

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the sponsoring broker.
"Employee" or other derivative of the word "employee", when
used to refer to, describe, or delineate the relationship
between a real estate broker and a real estate salesperson,
another real estate 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
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

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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.
"Grandfathered auctioneer" means a person who is exempt
from holding a license under paragraph (13) of Section 5-20 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 real
estate 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 real estate broker,
real estate salesperson, or leasing agent.
"Listing presentation" means a communication between a
real estate broker or salesperson 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,

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(iv) setting an appointment to view property, (v) responding to
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 real estate 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

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under this Act.
"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 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.
"Salesperson" means any individual, other than a real
estate broker or leasing agent, who is employed by a real
estate broker or is associated by written agreement with a real

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estate broker as an independent contractor and participates in
any activity described in the definition of "broker" under this
Section.
"Secretary" means the Secretary of the Department of
Financial and Professional Regulation, or a person authorized
by the Secretary to act in the Secretary's stead.
"Sponsoring broker" means the broker who has issued a
sponsor card to a licensed salesperson, another licensed
broker, or a leasing agent.
"Sponsor card" means the temporary permit issued by the
sponsoring real estate broker certifying that the real estate
broker, real estate salesperson, or leasing agent named thereon
is employed by or associated by written agreement with the
sponsoring real estate 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.)
(225 ILCS 454/5-32)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-32. Real estate auction certification.
(a) An auctioneer licensed under the Auction License Act
who does not possess a valid and active broker's or managing
broker's license under this Act, or who is not otherwise exempt
from licensure, may not engage in the practice of auctioning
real estate, except as provided in this Section.
(b) The Department shall issue a real estate auction

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certification to applicants who:
(1) possess a valid auctioneer's license under the
Auction License Act;
(2) successfully complete a real estate auction course
of at least 30 hours approved by the Department, which
shall cover the scope of activities that may be engaged in
by a person holding a real estate auction certification and
the activities for which a person must hold a real estate
license, as well as other material as provided by the
Department;
(3) provide documentation of the completion of the real
estate auction course; and
(4) successfully complete any other reasonable
requirements as provided by rule.
(c) The auctioneer's role shall be limited to establishing
the time, place, and method of the real estate auction, placing
advertisements regarding the auction, and crying or calling the
auction; any other real estate brokerage activities must be
performed by a person holding a valid and active real estate
broker's or managing broker's license under the provisions of
this Act or by a grandfathered auctioneer a person who is
exempt from holding a license under paragraph (13) of Section
5-20 who has a certificate under this Section. A grandfathered
auctioneer must only be certified under this Section if the
grandfathered auctioneer sells or leases real estate at auction
in a transaction in which a licensed auctioneer with a real

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estate certification is providing the limited services
provided for in this subsection (c).
(d) An auctioneer who conducts any real estate auction
activities in violation of this Section is guilty of unlicensed
practice under Section 20-10 of this Act.
(e) The Department may revoke, suspend, or otherwise
discipline the real estate auction certification of an
auctioneer who is adjudicated to be in violation of the
provisions of this Section or Section 20-15 of the Auction
License Act.
(f) Advertising for the real estate auction must contain
the name and address of the licensed real estate broker,
managing broker, or a licensed auctioneer under paragraph (13)
of Section 5-20 of this Act who is providing brokerage services
for the transaction.
(g) (Blank). The requirement to hold a real estate auction
certification shall not apply to a person exempt from this Act
under the provisions of paragraph (13) of Section 5-20 of this
Act, unless that person is performing licensed activities in a
transaction in which a licensed auctioneer with a real estate
certification is providing the limited services provided for in
subsection (c) of this Section.
(h) Nothing in this Section shall require a person licensed
under this Act as a real estate broker or managing broker to
obtain a real estate auction certification in order to auction
real estate.

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(i) The Department may adopt rules to implement this
Section.
(Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14.)".