Bill Text: IL HB5359 | 2011-2012 | 97th General Assembly | Enrolled

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

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Bill Title: Amends the Real Estate License Act of 2000. Creates a provision concerning the confidentiality of all information collected by the Department in the course of an examination or investigation of a licensee or applicant. Removes language that provides that when any aggrieved party commences action for a judgment that may result in collection from the Real Estate Recovery Fund, the aggrieved person must notify the Department of Financial and Professional Regulation in writing to this effect within 7 days of the commencement of the action. Provides that an aggrieved party, in an action that may result in a judgment that may result in the collection from the Real Estate Recovery Fund, shall give written notice to the Department within 30 days after entry of the judgment and provide the Department with copies of the pleadings upon which the default judgment was entered and of the default judgment order. Provides that the Department shall file a written response with the court stating that the Department has no objection to a claim on the Real Estate Recovery Fund by the aggrieved party or that the Department objects to such claim stating the basis for such objection. Provides that there is no limitation as to when an action against a person for violating the terms of the Act or its rules may be taken by the Department if it is alleged that an initial application for licensure contains false or misleading information. Also makes changes in provisions concerning continuing education requirements; managing brokers, brokers, or salespersons; advertising; grounds for discipline; and power of the Department to defend. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2012-08-17 - Public Act . . . . . . . . . 97-1002 [HB5359 Detail]

Download: Illinois-2011-HB5359-Enrolled.html

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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Real Estate License Act of 2000 is amended
by changing Sections 5-70, 10-30, 20-20, 20-85, 20-90, 20-95,
and 20-115 and by adding Section 20-78 as follows:
(225 ILCS 454/5-70)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5-70. Continuing education requirement; managing
broker, broker, or salesperson.
(a) The requirements of this Section apply to all managing
brokers, brokers, and salespersons.
(b) Except as otherwise provided in this Section, each
person who applies for renewal of his or her license as a
managing broker, real estate broker, or real estate salesperson
must successfully complete 6 hours of real estate continuing
education courses approved by the Advisory Council for each
year of the pre-renewal period. Broker licensees must
successfully complete a 6-hour broker management continuing
education course approved by the Department for the pre-renewal
period ending April 30, 2010. In addition, beginning with the
pre-renewal period for managing broker licensees that begins
after the effective date of this Act, those licensees renewing

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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 presenting instruction and real time discussion 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 Advisory Council. The requirements of
this Article are applicable to all managing brokers, brokers,
and salespersons except those brokers and salespersons 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) A person licensed as a salesperson as of April 30, 2011
shall not be required to complete the 18 hours of continuing
education for the pre-renewal period ending April 30, 2012 if
that person takes the 30-hour post-licensing course to obtain a

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broker's license. A person licensed as a broker as of April 30,
2011 shall not be required to complete the 12 hours of broker
management continuing education for the pre-renewal period
ending April 30, 2012, unless that person passes the
proficiency exam provided for in Section 5-47 of this Act to
qualify for a managing broker's license.
(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 salespersons,
brokers and managing brokers shall consist of a core curriculum
and an elective curriculum, to be established by the 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, shall be required
to be completed in the core curriculum. In establishing the
core curriculum, the 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 Advisory Council
deems appropriate, and any other areas that the Advisory
Council deems timely and applicable in order to prevent
violations of this Act and to protect the public. In
establishing the elective curriculum, the Advisory Council
shall consider subjects that cover the various aspects of the

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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 Act.
(f) The subject areas of continuing education courses
approved by the 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.
(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.
(h) Credit hours may be earned for self-study programs
approved by the Advisory Council.
(i) A broker or salesperson may earn credit for a specific

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continuing education course only once during the prerenewal
period.
(j) No more than 6 hours of continuing education credit may
be taken or earned 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 6-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
pre-renewal period in which the course is taken.
(Source: P.A. 96-856, eff. 12-31-09.)

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(225 ILCS 454/10-30)
(Section scheduled to be repealed on January 1, 2020)
Sec. 10-30. Advertising.
(a) No advertising, whether in print, via the Internet, or
through any other media, shall be fraudulent, deceptive,
inherently misleading, or proven to be misleading in practice.
Advertising shall be considered misleading or untruthful if,
when taken as a whole, there is a distinct and reasonable
possibility that it will be misunderstood or will deceive the
ordinary purchaser, seller, lessee, lessor, or owner.
Advertising shall contain all information necessary to
communicate the information contained therein to the public in
an accurate, direct, and readily comprehensible manner.
(b) No blind advertisements may be used by any licensee, in
any media, except as provided for in this Section.
(c) A licensee shall disclose, in writing, to all parties
in a transaction his or her status as a licensee and any and
all interest the licensee has or may have in the real estate
constituting the subject matter thereof, directly or
indirectly, according to the following guidelines:
(1) On broker yard signs or in broker advertisements,
no disclosure of ownership is necessary. However, the
ownership shall be indicated on any property data form and
disclosed to persons responding to any advertisement or any
sign. The term "broker owned" or "agent owned" is
sufficient disclosure.

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(2) A sponsored or inoperative licensee selling or
leasing property, owned solely by the sponsored or
inoperative licensee, without utilizing brokerage services
of their sponsoring broker or any other licensee, may
advertise "By Owner". For purposes of this Section,
property is "solely owned" by a sponsored or inoperative
licensee if he or she (i) has a 100% ownership interest
alone, (ii) has ownership as a joint tenant or tenant by
the entirety, or (iii) holds a 100% beneficial interest in
a land trust. Sponsored or inoperative licensees selling or
leasing "By Owner" shall comply with the following if
advertising by owner:
(A) On "By Owner" yard signs, the sponsored or
inoperative licensee shall indicate "broker owned" or
"agent owned." "By Owner" advertisements used in any
medium of advertising shall include the term "broker
owned" or "agent owned."
(B) If a sponsored or inoperative licensee runs
advertisements, for the purpose of purchasing or
leasing real estate, he or she shall disclose in the
advertisements his or her status as a licensee.
(C) A sponsored or inoperative licensee shall not
use the sponsoring broker's name or the sponsoring
broker's company name in connection with the sale,
lease, or advertisement of the property nor utilize the
sponsoring broker's or company's name in connection

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with the sale, lease, or advertising of the property in
a manner likely to create confusion among the public as
to whether or not the services of a real estate company
are being utilized or whether or not a real estate
company has an ownership interest in the property.
(d) A sponsored licensee may not advertise under his or her
own name. Advertising in any media shall be under the direct
supervision of the sponsoring or managing broker and in the
sponsoring broker's business name, which in the case of a
franchise shall include the franchise affiliation as well as
the name of the individual firm. This provision does not apply
under the following circumstances:
(1) When a licensee enters into a brokerage agreement
relating to his or her own real estate, or real estate in
which he or she has an ownership interest, with another
licensed broker; or
(2) When a licensee is selling or leasing his or her
own real estate or buying or leasing real estate for
himself or herself, after providing the appropriate
written disclosure of his or her ownership interest as
required in paragraph (2) of subsection (c) of this
Section.
(e) No licensee shall list his or her name under the
heading or title "Real Estate" in the telephone directory or
otherwise advertise in his or her own name to the general
public through any medium of advertising as being in the real

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estate business without listing his or her sponsoring broker's
business name.
(f) The sponsoring broker's business name and the name of
the licensee must appear in all advertisements, including
business cards. Nothing in this Act shall be construed to
require specific print size as between the broker's business
name and the name of the licensee.
(g) Those individuals licensed as a managing broker and
designated with the Department as a managing broker by their
sponsoring broker shall identify themselves to the public in
advertising, except on "For Sale" or similar signs, as a
managing broker. No other individuals holding a managing
broker's license may hold themselves out to the public or other
licensees as a managing broker.
(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 or 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

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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 conviction of, plea of guilty or plea of nolo
contendre to a felony or misdemeanor in this State or any
other jurisdiction; or the entry of an administrative
sanction by a government agency in this State or any other
jurisdiction. Action taken under this paragraph (2) for a
misdemeanor or an administrative sanction is limited to a
misdemeanor or administrative sanction that has as , an
essential element of which is dishonesty or fraud or
involves larceny, embezzlement, or obtaining money,
property, or credit by false pretenses or by means of a
confidence game, in this State, or any other jurisdiction.
(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.

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(5) Having been disciplined by another state, the
District of Columbia, a territory, a foreign nation, or a
governmental agency authorized to impose discipline
Disciplinary action of another state or jurisdiction
against the license or other authorization to practice as a
managing broker, broker, salesperson, or leasing agent 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 discipline set forth in
this Act. A certified copy of the record of the action by
the other state or jurisdiction shall be prima facie
evidence thereof.
(6) Engaging in the practice of real estate brokerage
without a license or after the licensee's license was
expired or while the license was inoperative.
(7) Cheating on or attempting to subvert the Real
Estate License Exam or continuing education exam.
(8) Aiding or abetting an applicant to subvert or cheat
on the Real Estate License Exam or continuing education
exam administered pursuant to this Act.
(9) Advertising that is inaccurate, misleading, or
contrary to the provisions of the Act.
(10) Making any substantial misrepresentation or
untruthful advertising.
(11) Making any false promises of a character likely to
influence, persuade, or induce.

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(12) Pursuing a continued and flagrant course of
misrepresentation or the making of false promises through
licensees, employees, agents, advertising, or otherwise.
(13) Any misleading or untruthful advertising, or
using any trade name or insignia of membership in any real
estate organization of which the licensee is not a member.
(14) Acting for more than one party in a transaction
without providing written notice to all parties for whom
the licensee acts.
(15) Representing or attempting to represent a broker
other than the sponsoring broker.
(16) Failure to account for or to remit any moneys or
documents coming into his or her possession that belong to
others.
(17) Failure to maintain and deposit in a special
account, separate and apart from personal and other
business accounts, all escrow moneys belonging to others
entrusted to a licensee while acting as a real estate
broker, escrow agent, or temporary custodian of the funds
of others or failure to maintain all escrow moneys on
deposit in the account until the transactions are
consummated or terminated, except to the extent that the
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

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duly authorized agents, (ii) in accordance with
directions providing for the release, payment, or
distribution of escrow moneys contained in any written
contract signed by the principals to the transaction or
their duly authorized agents, or (iii) pursuant to an
order of a court of competent jurisdiction; or
(B) deemed abandoned and transferred to the Office
of the State Treasurer to be handled as unclaimed
property pursuant to the Uniform Disposition of
Unclaimed Property Act. Escrow moneys may be deemed
abandoned under this subparagraph (B) only: (i) in the
absence of disbursement under subparagraph (A); (ii)
in the absence of notice of the filing of any claim in
a court of competent jurisdiction; and (iii) if 6
months have elapsed after the receipt of a written
demand for the escrow moneys from one of the principals
to the transaction or the principal's duly authorized
agent.
The account shall be noninterest bearing, unless the
character of the deposit is such that payment of interest
thereon is otherwise required by law or unless the
principals to the transaction specifically require, in
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

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connection with the practice of real estate within 24 hours
of a request for those documents by Department personnel.
(19) Failing to furnish copies upon request of
documents relating to a real estate transaction to a party
who has executed that document.
(20) Failure of a sponsoring broker to timely provide
information, sponsor cards, or termination of licenses to
the Department.
(21) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud, or harm the public.
(22) Commingling the money or property of others with
his or her own money or property.
(23) Employing any person on a purely temporary or
single deal basis as a means of evading the law regarding
payment of commission to nonlicensees on some contemplated
transactions.
(24) Permitting the use of his or her license as a
broker to enable a salesperson or unlicensed person to
operate a real estate business without actual
participation therein and control thereof by the broker.
(25) Any other conduct, whether of the same or a
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

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

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

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(31) Engaging in any act that constitutes a violation
of any provision of Article 3 of the Illinois Human Rights
Act, whether or not a complaint has been filed with or
adjudicated by the Human Rights Commission.
(32) Inducing any party to a contract of sale or lease
or brokerage agreement to break the contract of sale or
lease or brokerage agreement for the purpose of
substituting, in lieu thereof, a new contract for sale or
lease or brokerage agreement with a third party.
(33) Negotiating a sale, exchange, or lease of real
estate directly with any person if the licensee knows that
the person has an exclusive brokerage agreement with
another broker, unless specifically authorized by that
broker.
(34) When a licensee is also an attorney, acting as the
attorney for either the buyer or the seller in the same
transaction in which the licensee is acting or has acted as
a broker or salesperson.
(35) Advertising or offering merchandise or services
as free if any conditions or obligations necessary for
receiving the merchandise or services are not disclosed in
the same advertisement or offer. These conditions or
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

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

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by Section 15-75 of this Act when acting under an exclusive
brokerage agreement.
(42) Habitual or excessive use or addiction to alcohol,
narcotics, stimulants, or any other chemical agent or drug
that results in a managing broker, broker, salesperson, or
leasing agent's inability to practice with reasonable
skill or safety.
(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
(g) of Section 2105-15 of the Civil Administrative Code of
Illinois.
(d) In cases where the Department of Healthcare and Family
Services (formerly Department of Public Aid) has previously
determined that a licensee or a potential licensee is more than
30 days delinquent in the payment of child support and has

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subsequently certified the delinquency to the Department may
refuse to issue or renew or may revoke or suspend that person's
license or may take other disciplinary action against that
person based solely upon the certification of delinquency made
by the Department of Healthcare and Family Services in
accordance with item (5) of subsection (g) of Section 2105-15
of the Civil Administrative Code of Illinois.
(e) In enforcing this Section, the Department or Board upon
a showing of a possible violation may compel an individual
licensed to practice under this Act, or who has applied for
licensure under this Act, to submit to a mental or physical
examination, or both, as required by and at the expense of the
Department. The Department or Board may order the examining
physician to present testimony concerning the mental or
physical examination of the licensee or applicant. No
information shall be excluded by reason of any common law or
statutory privilege relating to communications between the
licensee or applicant and the examining physician. The
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

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submit to the examination was without reasonable cause.
If the Department or Board finds an individual unable to
practice because of the reasons set forth in this Section, the
Department or Board may require that individual to submit to
care, counseling, or treatment by physicians approved or
designated by the Department or Board, as a condition, term, or
restriction for continued, reinstated, or renewed licensure to
practice; or, in lieu of care, counseling, or treatment, the
Department may file, or the Board may recommend to the
Department to file, a complaint to immediately suspend, revoke,
or otherwise discipline the license of the individual. An
individual whose license was granted, continued, reinstated,
renewed, disciplined or supervised subject to such terms,
conditions, or restrictions, and who fails to comply with such
terms, conditions, or restrictions, shall be referred to the
Secretary for a determination as to whether the individual
shall have his or her license suspended immediately, pending a
hearing by the Department.
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

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confidentiality of medical records.
An individual licensed under this Act and affected under
this Section shall be afforded an opportunity to demonstrate to
the Department or Board that he or she can resume practice in
compliance with acceptable and prevailing standards under the
provisions of his or her license.
(Source: P.A. 95-851, eff. 1-1-09; 96-856, eff. 12-31-09;
revised 11-18-11.)
(225 ILCS 454/20-78 new)
Sec. 20-78. Confidentiality. All information collected by
the Department in the course of an examination or investigation
of a licensee or applicant, including, but not limited to, any
complaint against a licensee or applicant or any person who
holds himself or herself out as a licensee or applicant filed
with the Department and information collected to investigate
any such complaint, shall be maintained for the confidential
use of the Department and shall not be disclosed. The
Department may not disclose the information to anyone other
than law enforcement officials, regulatory agencies that have
an appropriate regulatory interest as determined by the
Secretary, or a party presenting a lawful subpoena to the
Department. Information and documents disclosed to a federal,
State, county, or local law enforcement agency shall not be
disclosed by the agency for any purpose to any other agency or
person. A formal complaint filed against a licensee by the

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Department or any order issued by the Department against a
licensee or applicant shall be a public record, except as
otherwise prohibited by law.
(225 ILCS 454/20-85)
(Section scheduled to be repealed on January 1, 2020)
Sec. 20-85. Recovery from Real Estate Recovery Fund. The
Department shall maintain a Real Estate Recovery Fund from
which any person aggrieved by an act, representation,
transaction, or conduct of a licensee or unlicensed employee of
a licensee that is in violation of this Act or the rules
promulgated pursuant thereto, constitutes embezzlement of
money or property, or results in money or property being
unlawfully obtained from any person by false pretenses,
artifice, trickery, or forgery or by reason of any fraud,
misrepresentation, discrimination, or deceit by or on the part
of any such licensee or the unlicensed employee of a licensee
and that results in a loss of actual cash money, as opposed to
losses in market value, may recover. The aggrieved person may
recover, by a post-judgment order of the circuit court of the
county where the violation occurred in a proceeding described
in Section 20-90 of this Act, an amount of not more than
$25,000 from the Fund for damages sustained by the act,
representation, transaction, or conduct, together with costs
of suit and attorney's fees incurred in connection therewith of
not to exceed 15% of the amount of the recovery ordered paid

HB5359 Enrolled - 24 - LRB097 19406 CEL 64659 b
from the Fund. However, no licensee may recover from the Fund
unless the court finds that the person suffered a loss
resulting from intentional misconduct. The post-judgment court
order shall not include interest on the judgment. The maximum
liability against the Fund arising out of any one act shall be
as provided in this Section, and the post-judgment judgment
order shall spread the award equitably among all co-owners or
otherwise aggrieved persons, if any. The maximum liability
against the Fund arising out of the activities of any one
licensee or one unlicensed employee of a licensee, since
January 1, 1974, shall be $100,000. Nothing in this Section
shall be construed to authorize recovery from the Fund unless
the loss of the aggrieved person results from an act or
omission of a licensee under this Act who was at the time of
the act or omission acting in such capacity or was apparently
acting in such capacity or their unlicensed employee and unless
the aggrieved person has obtained a valid judgment and
post-judgment order of the court as provided for in Section
20-90 of this Act. No person aggrieved by an act,
representation, or transaction that is in violation of the
Illinois Real Estate Time-Share Act or the Land Sales
Registration Act of 1989 may recover from the Fund.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/20-90)
(Section scheduled to be repealed on January 1, 2020)

HB5359 Enrolled - 25 - LRB097 19406 CEL 64659 b
Sec. 20-90. Collection from Real Estate Recovery Fund;
procedure.
(a) No action for a judgment that subsequently results in a
post-judgment an order for collection from the Real Estate
Recovery Fund shall be started later than 2 years after the
date on which the aggrieved person knew, or through the use of
reasonable diligence should have known, of the acts or
omissions giving rise to a right of recovery from the Real
Estate Recovery Fund.
(b) When any aggrieved person commences action for a
judgment that may result in collection from the Real Estate
Recovery Fund, the aggrieved person must name as parties
defendant to that action any and all individual licensees, or
their employees, or independent contractors who allegedly
committed or are responsible for acts or omissions giving rise
to a right of recovery from the Real Estate Recovery Fund.
Failure to name as parties defendant such licensees, or their
employees, or independent contractors shall preclude recovery
from the Real Estate Recovery Fund of any portion of any
judgment received in such an action. These The aggrieved party
may also name as additional parties defendant shall also
include any corporations, limited liability companies,
partnerships, registered limited liability partnership, or
other business associations licensed under this Act that may be
responsible for acts giving rise to a right of recovery from
the Real Estate Recovery Fund.

HB5359 Enrolled - 26 - LRB097 19406 CEL 64659 b
(c) (Blank). When any aggrieved person commences action for
a judgment that may result in collection from the Real Estate
Recovery Fund, the aggrieved person must notify the Department
in writing to this effect within 7 days of the commencement of
the action. Failure to so notify the Department shall preclude
recovery from the Real Estate Recovery Fund of any portion of
any judgment received in such an action. After receiving notice
of the commencement of such an action, the Department upon
timely application shall be permitted to intervene as a party
defendant to that action.
(d) When any aggrieved person commences action for a
judgment that may result in collection from the Real Estate
Recovery Fund, and the aggrieved person is unable to obtain
legal and proper service upon the parties defendant licensed
under this Act under the provisions of Illinois law concerning
service of process in civil actions, the aggrieved person may
petition the court where the action to obtain judgment was
begun for an order to allow service of legal process on the
Secretary. Service of process on the Secretary shall be taken
and held in that court to be as valid and binding as if due
service had been made upon the parties defendant licensed under
this Act. In case any process mentioned in this Section is
served upon the Secretary, the Secretary shall forward a copy
of the process by certified mail to the licensee's last address
on record with the Department. Any judgment obtained after
service of process on the Secretary under this Act shall apply

HB5359 Enrolled - 27 - LRB097 19406 CEL 64659 b
to and be enforceable against the Real Estate Recovery Fund
only. The Department OBRE may intervene in and defend any such
action.
(e) (Blank). When an aggrieved party commences action for a
judgment that may result in collection from the Real Estate
Recovery Fund, and the court before which that action is
commenced enters judgment by default against the defendant and
in favor of the aggrieved party, the court shall upon motion of
the Department set aside that judgment by default. After such a
judgment by default has been set aside, the Department shall
appear as party defendant to that action, and thereafter the
court shall require proof of the allegations in the pleadings
upon which relief is sought.
(f) The aggrieved person shall give written notice to the
Department within 30 days of the entry of any judgment that may
result in collection from the Real Estate Recovery Fund. The
aggrieved person shall provide the Department with OBRE within
20 days prior written notice of all supplementary proceedings
so as to allow the Department to intervene and participate in
all efforts to collect on the judgment in the same manner as
any party.
(g) When any aggrieved person recovers a valid judgment in
any court of competent jurisdiction against any licensee or an
unlicensed employee of any licensee broker, upon the grounds of
fraud, misrepresentation, discrimination, or deceit, the
aggrieved person may, upon the termination of all proceedings,

HB5359 Enrolled - 28 - LRB097 19406 CEL 64659 b
including review and appeals in connection with the judgment,
file a verified claim in the court in which the judgment was
entered and, upon 30 days' written notice to the Department,
and to the person against whom the judgment was obtained, may
apply to the court for a post-judgment an order directing
payment out of the Real Estate Recovery Fund of the amount
unpaid upon the judgment, not including interest on the
judgment, and subject to the limitations stated in Section
20-85 of this Act. The aggrieved person must set out in that
verified claim and prove at an evidentiary hearing to be held
by the court upon the application that the claim meets all
requirements of Section 20-85 and this Section to be eligible
for payment from the Real Estate Recovery Fund and the
aggrieved party shall be required to show that the aggrieved
person:
(1) Is not a spouse of the debtor or debtors or the
personal representative of such spouse.
(2) Has complied with all the requirements of this
Section.
(3) Has obtained a judgment stating the amount thereof
and the amount owing thereon, not including interest
thereon, at the date of the application.
(4) Has made all reasonable searches and inquiries to
ascertain whether the judgment debtor or debtors is
possessed of real or personal property or other assets,
liable to be sold or applied in satisfaction of the

HB5359 Enrolled - 29 - LRB097 19406 CEL 64659 b
judgment.
(5) By such search has discovered no personal or real
property or other assets liable to be sold or applied, or
has discovered certain of them, describing them as owned by
the judgment debtor or debtors and liable to be so applied
and has taken all necessary action and proceedings for the
realization thereof, and the amount thereby realized was
insufficient to satisfy the judgment, stating the amount so
realized and the balance remaining due on the judgment
after application of the amount realized.
(6) Has diligently pursued all remedies against all the
judgment debtors and all other persons liable to the
aggrieved person in the transaction for which recovery is
sought from the Real Estate Recovery Fund, including the
filing of an adversary action to have the debts declared
non-dischargeable in any bankruptcy petition matter filed
by any judgment debtor or person liable to the aggrieved
person.
The aggrieved person shall also be required to prove the
amount of attorney's fees sought to be recovered and the
reasonableness of those fees up to the maximum allowed pursuant
to Section 20-85 of this Act.
(h) After conducting the evidentiary hearing required
under this Section, the The court, in a post-judgment shall
make an order directed to the Department, shall indicate
whether requiring payment from the Real Estate Recovery Fund is

HB5359 Enrolled - 30 - LRB097 19406 CEL 64659 b
appropriate and, if so, the amount of whatever sum it finds to
be payable upon the claim, pursuant to and in accordance with
the limitations contained in Section 20-85 of this Act, if the
court is satisfied, based upon the hearing, of the truth of all
matters required to be shown by the aggrieved person under
subsection (g) of this Section and that the aggrieved person
has fully pursued and exhausted all remedies available for
recovering the amount awarded by the judgment of the court.
(i) Should the Department pay from the Real Estate Recovery
Fund any amount in settlement of a claim or toward satisfaction
of a judgment against any licensee a licensed broker or
salesperson or an unlicensed employee of a licensee broker, the
licensee's license shall be automatically revoked terminated
upon the issuance of a post-judgment court order authorizing
payment from the Real Estate Recovery Fund. No petition for
restoration of a license shall be heard until repayment has
been made in full, plus interest at the rate prescribed in
Section 12-109 of the Code of Civil Procedure of the amount
paid from the Real Estate Recovery Fund on their account,
notwithstanding any provision to the contrary in Section
2105-15 of the Department of Professional Regulation Law of the
Civil Administrative Code of Illinois. A discharge in
bankruptcy shall not relieve a person from the penalties and
disabilities provided in this subsection (i).
(j) If, at any time, the money deposited in the Real Estate
Recovery Fund is insufficient to satisfy any duly authorized

HB5359 Enrolled - 31 - LRB097 19406 CEL 64659 b
claim or portion thereof, the Department shall, when sufficient
money has been deposited in the Real Estate Recovery Fund,
satisfy such unpaid claims or portions thereof, in the order
that such claims or portions thereof were originally filed,
plus accumulated interest at the rate prescribed in Section
12-109 of the Code of Civil Procedure.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/20-95)
(Section scheduled to be repealed on January 1, 2020)
Sec. 20-95. Power of the Department to defend. When the
Department receives any process, notice, order, or other
document provided for or required under Section 20-90 of this
Act, it may enter an appearance, file an answer, appear at the
court hearing, defend the action, or take whatever other action
it deems appropriate on behalf and in the name of the parties
defendant licensed under this Act or the Department and take
recourse through any appropriate method of review on behalf of
and in the name of the parties defendant licensed under this
Act or the Department.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/20-115)
(Section scheduled to be repealed on January 1, 2020)
Sec. 20-115. Time limit on action. No action may be taken
by the Department against any person for violation of the terms

HB5359 Enrolled - 32 - LRB097 19406 CEL 64659 b
of this Act or its rules unless the action is commenced within
5 years after the occurrence of the alleged violation. This
limitation shall not apply where it is alleged that an initial
application for licensure under this Act contains false or
misleading information.
(Source: P.A. 96-856, eff. 12-31-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.