Bill Text: IL SB1872 | 2019-2020 | 101st General Assembly | Enrolled


Bill Title: Amends the Regulatory Sunset Act. Extends the repeal date of the Real Estate License Act of 2000 from January 1, 2020 to January 1, 2030. Makes conforming changes. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Enrolled) 2019-05-31 - Passed Both Houses [SB1872 Detail]

Download: Illinois-2019-SB1872-Enrolled.html



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1 AN ACT concerning government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Regulatory Sunset Act is amended by changing
5Section 4.30 and by adding Section 4.40 as follows:
6 (5 ILCS 80/4.30)
7 Sec. 4.30. Acts repealed on January 1, 2020. The following
8Acts are repealed on January 1, 2020:
9 The Auction License Act.
10 The Community Association Manager Licensing and
11Disciplinary Act.
12 The Illinois Architecture Practice Act of 1989.
13 The Illinois Landscape Architecture Act of 1989.
14 The Illinois Professional Land Surveyor Act of 1989.
15 The Orthotics, Prosthetics, and Pedorthics Practice Act.
16 The Perfusionist Practice Act.
17 The Pharmacy Practice Act.
18 The Professional Engineering Practice Act of 1989.
19 The Real Estate License Act of 2000.
20 The Structural Engineering Practice Act of 1989.
21(Source: P.A. 100-497, eff. 9-8-17; 100-534, eff. 9-22-17;
22100-863, eff. 8-14-18.)

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1 (5 ILCS 80/4.40 new)
2 Sec. 4.40. Act repealed on January 1, 2030. The following
3Act is repealed on January 1, 2030:
4 The Real Estate License Act of 2000.
5 Section 10. The Real Estate License Act of 2000 is amended
6by changing Sections 1-5, 1-10, 5-5, 5-6, 5-7, 5-10, 5-15,
75-20, 5-25, 5-27, 5-28, 5-35, 5-40, 5-41, 5-45, 5-50, 5-60,
85-70, 5-75, 10-5, 10-10, 10-15, 10-20, 10-30, 10-35, 15-5,
915-10, 15-15, 15-25, 15-35, 15-45, 15-50, 15-65, 15-75, 20-5,
1020-10, 20-15, 20-20, 20-21, 20-22, 20-25, 20-60, 20-64, 20-65,
1120-66, 20-72, 20-75, 20-85, 20-90, 25-15, 25-21, 25-25, 30-5,
1230-15, and 30-25 and by adding Sections 5-29, 10-50, 10-55, and
1320-20.1 as follows:
14 (225 ILCS 454/1-5)
15 (Section scheduled to be repealed on January 1, 2020)
16 Sec. 1-5. Legislative intent. The intent of the General
17Assembly in enacting this statute is to evaluate the competency
18of persons engaged in the real estate profession business and
19to regulate their activities this business for the protection
20of the public.
21(Source: P.A. 91-245, eff. 12-31-99.)
22 (225 ILCS 454/1-10)
23 (Section scheduled to be repealed on January 1, 2020)

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1 Sec. 1-10. Definitions. In this Act, unless the context
2otherwise requires:
3 "Act" means the Real Estate License Act of 2000.
4 "Address of record" means the designated address recorded
5by the Department in the applicant's or licensee's application
6file or license file as maintained by the Department's
7licensure maintenance unit. It is the duty of the applicant or
8licensee to inform the Department of any change of address, and
9those changes must be made either through the Department's
10website or by contacting the Department.
11 "Agency" means a relationship in which a broker or
12licensee, whether directly or through an affiliated licensee,
13represents a consumer by the consumer's consent, whether
14express or implied, in a real property transaction.
15 "Applicant" means any person, as defined in this Section,
16who applies to the Department for a valid license as a managing
17broker, broker, or residential leasing agent.
18 "Blind advertisement" means any real estate advertisement
19that is used by a licensee regarding the sale or lease of real
20estate, licensed activities, or the hiring of any licensee
21under this Act that does not include the sponsoring broker's
22complete business name or, in the case of electronic
23advertisements, does not provide a direct link to a display
24with all the required disclosures and that is used by any
25licensee regarding the sale or lease of real estate, licensed
26activities, or the hiring of any licensee under this Act. The

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1broker's business name in the case of a franchise shall include
2the franchise affiliation as well as the name of the individual
3firm.
4 "Board" means the Real Estate Administration and
5Disciplinary Board of the Department as created by Section
625-10 of this Act.
7 "Branch office" means a sponsoring broker's office other
8than the sponsoring broker's principal office.
9 "Broker" means an individual, entity, corporation, foreign
10or domestic partnership, limited liability company, registered
11limited liability partnership, or other business entity other
12than a residential leasing agent who, whether in person or
13through any media or technology, for another and for
14compensation, or with the intention or expectation of receiving
15compensation, either directly or indirectly:
16 (1) Sells, exchanges, purchases, rents, or leases real
17 estate.
18 (2) Offers to sell, exchange, purchase, rent, or lease
19 real estate.
20 (3) Negotiates, offers, attempts, or agrees to
21 negotiate the sale, exchange, purchase, rental, or leasing
22 of real estate.
23 (4) Lists, offers, attempts, or agrees to list real
24 estate for sale, rent, lease, or exchange.
25 (5) Whether for another or themselves, engages in a
26 pattern of business of buying, selling, offering to buy or

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1 sell, marketing for sale, exchanging, or otherwise dealing
2 in contracts, including assignable contracts for the
3 purchase or sale of, or Buys, sells, offers to buy or sell,
4 or otherwise deals in options on real estate or
5 improvements thereon. For purposes of this definition, an
6 individual or entity will be found to have engaged in a
7 pattern of business if the individual or entity by itself
8 or with any combination of other individuals or entities,
9 whether as partners or common owners in another entity, has
10 engaged in one or more of these practices on 2 or more
11 occasions in any 12-month period.
12 (6) Supervises the collection, offer, attempt, or
13 agreement to collect rent for the use of real estate.
14 (7) Advertises or represents himself or herself as
15 being engaged in the business of buying, selling,
16 exchanging, renting, or leasing real estate.
17 (8) Assists or directs in procuring or referring of
18 leads or prospects, intended to result in the sale,
19 exchange, lease, or rental of real estate.
20 (9) Assists or directs in the negotiation of any
21 transaction intended to result in the sale, exchange,
22 lease, or rental of real estate.
23 (10) Opens real estate to the public for marketing
24 purposes.
25 (11) Sells, rents, leases, or offers for sale or lease
26 real estate at auction.

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1 (12) Prepares or provides a broker price opinion or
2 comparative market analysis as those terms are defined in
3 this Act, pursuant to the provisions of Section 10-45 of
4 this Act.
5 "Brokerage agreement" means a written or oral agreement
6between a sponsoring broker and a consumer for licensed
7activities to be provided to a consumer in return for
8compensation or the right to receive compensation from another.
9Brokerage agreements may constitute either a bilateral or a
10unilateral agreement between the broker and the broker's client
11depending upon the content of the brokerage agreement. All
12exclusive brokerage agreements shall be in writing.
13 "Broker price opinion" means an estimate or analysis of the
14probable selling price of a particular interest in real estate,
15which may provide a varying level of detail about the
16property's condition, market, and neighborhood and information
17on comparable sales. The activities of a real estate broker or
18managing broker engaging in the ordinary course of business as
19a broker, as defined in this Section, shall not be considered a
20broker price opinion if no compensation is paid to the broker
21or managing broker, other than compensation based upon the sale
22or rental of real estate. A broker price opinion shall not be
23considered an appraisal within the meaning of the Real Estate
24Appraiser Licensing Act of 2002, any amendment to that Act, or
25any successor Act.
26 "Client" means a person who is being represented by a

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1licensee.
2 "Comparative market analysis" means is an analysis or
3opinion regarding pricing, marketing, or financial aspects
4relating to a specified interest or interests in real estate
5that may be based upon an analysis of comparative market data,
6the expertise of the real estate broker or managing broker, and
7such other factors as the broker or managing broker may deem
8appropriate in developing or preparing such analysis or
9opinion. The activities of a real estate broker or managing
10broker engaging in the ordinary course of business as a broker,
11as defined in this Section, shall not be considered a
12comparative market analysis if no compensation is paid to the
13broker or managing broker, other than compensation based upon
14the sale or rental of real estate. A comparative market
15analysis shall not be considered an appraisal within the
16meaning of the Real Estate Appraiser Licensing Act of 2002, any
17amendment to that Act, or any successor Act.
18 "Compensation" means the valuable consideration given by
19one person or entity to another person or entity in exchange
20for the performance of some activity or service. Compensation
21shall include the transfer of valuable consideration,
22including without limitation the following:
23 (1) commissions;
24 (2) referral fees;
25 (3) bonuses;
26 (4) prizes;

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1 (5) merchandise;
2 (6) finder fees;
3 (7) performance of services;
4 (8) coupons or gift certificates;
5 (9) discounts;
6 (10) rebates;
7 (11) a chance to win a raffle, drawing, lottery, or
8 similar game of chance not prohibited by any other law or
9 statute;
10 (12) retainer fee; or
11 (13) salary.
12 "Confidential information" means information obtained by a
13licensee from a client during the term of a brokerage agreement
14that (i) was made confidential by the written request or
15written instruction of the client, (ii) deals with the
16negotiating position of the client, or (iii) is information the
17disclosure of which could materially harm the negotiating
18position of the client, unless at any time:
19 (1) the client permits the disclosure of information
20 given by that client by word or conduct;
21 (2) the disclosure is required by law; or
22 (3) the information becomes public from a source other
23 than the licensee.
24 "Confidential information" shall not be considered to
25include material information about the physical condition of
26the property.

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1 "Consumer" means a person or entity seeking or receiving
2licensed activities.
3 "Coordinator" means the Coordinator of Real Estate created
4in Section 25-15 of this Act.
5 "Credit hour" means 50 minutes of classroom instruction in
6course work that meets the requirements set forth in rules
7adopted by the Department.
8 "Customer" means a consumer who is not being represented by
9the licensee but for whom the licensee is performing
10ministerial acts.
11 "Department" means the Department of Financial and
12Professional Regulation.
13 "Designated agency" means a contractual relationship
14between a sponsoring broker and a client under Section 15-50 of
15this Act in which one or more licensees associated with or
16employed by the broker are designated as agent of the client.
17 "Designated agent" means a sponsored licensee named by a
18sponsoring broker as the legal agent of a client, as provided
19for in Section 15-50 of this Act.
20 "Designated managing broker" means a managing broker who
21has supervisory responsibilities for licensees in one or, in
22the case of a multi-office company, more than one office and
23who has been appointed as such by the sponsoring broker
24registered with the Department.
25 "Director" means the Director of Real Estate within the
26Department of Financial and Professional Regulation.

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1 "Dual agency" means an agency relationship in which a
2licensee is representing both buyer and seller or both landlord
3and tenant in the same transaction. When the agency
4relationship is a designated agency, the question of whether
5there is a dual agency shall be determined by the agency
6relationships of the designated agent of the parties and not of
7the sponsoring broker.
8 "Education provider" means a school licensed by the
9Department offering courses in pre-license, post-license, or
10continuing education required by this Act.
11 "Employee" or other derivative of the word "employee", when
12used to refer to, describe, or delineate the relationship
13between a sponsoring broker and a managing broker, broker, or a
14residential leasing agent, shall be construed to include an
15independent contractor relationship, provided that a written
16agreement exists that clearly establishes and states the
17relationship. All responsibilities of a broker shall remain.
18 "Escrow moneys" means all moneys, promissory notes or any
19other type or manner of legal tender or financial consideration
20deposited with any person for the benefit of the parties to the
21transaction. A transaction exists once an agreement has been
22reached and an accepted real estate contract signed or lease
23agreed to by the parties. Escrow moneys includes without
24limitation earnest moneys and security deposits, except those
25security deposits in which the person holding the security
26deposit is also the sole owner of the property being leased and

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1for which the security deposit is being held.
2 "Electronic means of proctoring" means a methodology
3providing assurance that the person taking a test and
4completing the answers to questions is the person seeking
5licensure or credit for continuing education and is doing so
6without the aid of a third party or other device.
7 "Exclusive brokerage agreement" means a written brokerage
8agreement that provides that the sponsoring broker has the sole
9right, through one or more sponsored licensees, to act as the
10exclusive designated agent or representative of the client and
11that meets the requirements of Section 15-75 of this Act.
12 "Inactive" "Inoperative" means a status of licensure where
13the licensee holds a current license under this Act, but the
14licensee is prohibited from engaging in licensed activities
15because the licensee is unsponsored or the license of the
16sponsoring broker with whom the licensee is associated or by
17whom he or she is employed is currently expired, revoked,
18suspended, or otherwise rendered invalid under this Act. The
19license of any business entity that is not in good standing
20with the Illinois Secretary of State, or is not authorized to
21conduct business in Illinois, shall immediately become
22inactive and that entity shall be prohibited from engaging in
23any licensed activities.
24 "Interactive delivery method" means delivery of a course by
25an instructor through a medium allowing for 2-way communication
26between the instructor and a student in which either can

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1initiate or respond to questions.
2 "Leads" means the name or names of a potential buyer,
3seller, lessor, lessee, or client of a licensee.
4 "Leasing Agent" means a person who is employed by a broker
5to engage in licensed activities limited to leasing residential
6real estate who has obtained a license as provided for in
7Section 5-5 of this Act.
8 "License" means the privilege conferred document issued by
9the Department to a certifying that the person that named
10thereon has fulfilled all requirements prerequisite to any type
11of licensure under this Act.
12 "Licensed activities" means those activities listed in the
13definition of "broker" under this Section.
14 "Licensee" means any person, as defined in this Section,
15who holds a valid unexpired license as a managing broker,
16broker, or residential leasing agent.
17 "Listing presentation" means any a communication, written
18or oral and by any means or media, between a managing broker or
19broker and a consumer in which the licensee is attempting to
20secure a brokerage agreement with the consumer to market the
21consumer's real estate for sale or lease.
22 "Managing broker" means a licensee who may be authorized to
23assume broker who has supervisory responsibilities as a
24designated managing broker for licensees in one or, in the case
25of a multi-office company, more than one office, upon
26appointment by the sponsoring broker and registration with the

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1Department and who has been appointed as such by the sponsoring
2broker. A managing broker may act as his or her own sponsor.
3 "Medium of advertising" means any method of communication
4intended to influence the general public to use or purchase a
5particular good or service or real estate, including, but not
6limited to, print, electronic, social media, and digital
7forums.
8 "Ministerial acts" means those acts that a licensee may
9perform for a consumer that are informative or clerical in
10nature and do not rise to the level of active representation on
11behalf of a consumer. Examples of these acts include without
12limitation (i) responding to phone inquiries by consumers as to
13the availability and pricing of brokerage services, (ii)
14responding to phone inquiries from a consumer concerning the
15price or location of property, (iii) attending an open house
16and responding to questions about the property from a consumer,
17(iv) setting an appointment to view property, (v) responding to
18questions of consumers walking into a licensee's office
19concerning brokerage services offered or particular
20properties, (vi) accompanying an appraiser, inspector,
21contractor, or similar third party on a visit to a property,
22(vii) describing a property or the property's condition in
23response to a consumer's inquiry, (viii) completing business or
24factual information for a consumer on an offer or contract to
25purchase on behalf of a client, (ix) showing a client through a
26property being sold by an owner on his or her own behalf, or

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1(x) referral to another broker or service provider.
2 "Office" means a broker's place of business where the
3general public is invited to transact business and where
4records may be maintained and licenses displayed, whether or
5not it is the broker's principal place of business.
6 "Person" means and includes individuals, entities,
7corporations, limited liability companies, registered limited
8liability partnerships, foreign and domestic partnerships, and
9other business entities, except that when the context otherwise
10requires, the term may refer to a single individual or other
11described entity.
12 "Personal assistant" means a licensed or unlicensed person
13who has been hired for the purpose of aiding or assisting a
14sponsored licensee in the performance of the sponsored
15licensee's job.
16 "Pocket card" means the card issued by the Department to
17signify that the person named on the card is currently licensed
18under this Act.
19 "Pre-renewal period" means the period between the date of
20issue of a currently valid license and the license's expiration
21date.
22 "Proctor" means any person, including, but not limited to,
23an instructor, who has a written agreement to administer
24examinations fairly and impartially with a licensed education
25provider.
26 "Real estate" means and includes leaseholds as well as any

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1other interest or estate in land, whether corporeal,
2incorporeal, freehold, or non-freehold and whether the real
3estate is situated in this State or elsewhere. "Real estate"
4does not include property sold, exchanged, or leased as a
5timeshare or similar vacation item or interest, vacation club
6membership, or other activity formerly regulated under the Real
7Estate Timeshare Act of 1999 (repealed).
8 "Regular employee" means a person working an average of 20
9hours per week for a person or entity who would be considered
10as an employee under the Internal Revenue Service rules for
11classifying workers eleven main tests in three categories being
12behavioral control, financial control and the type of
13relationship of the parties, formerly the twenty factor test.
14 "Renewal period" means the period beginning 90 days prior
15to the expiration date of a license.
16 "Residential leasing agent" means a person who is employed
17by a broker to engage in licensed activities limited to leasing
18residential real estate who has obtained a license as provided
19for in Section 5-5 of this Act.
20 "Secretary" means the Secretary of the Department of
21Financial and Professional Regulation, or a person authorized
22by the Secretary to act in the Secretary's stead.
23 "Sponsoring broker" means the broker who certifies to the
24Department his, her, or its sponsorship of has issued a sponsor
25card to a licensed managing broker, broker, or a residential
26leasing agent.

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1 "Sponsorship" "Sponsor card" means that a sponsoring
2broker has certified to the Department that a the temporary
3permit issued by the sponsoring broker certifying that the
4managing broker, broker, or residential leasing agent named
5thereon is employed by or associated by written agreement with
6the sponsoring broker and the Department has registered the
7sponsorship, as provided for in Section 5-40 of this Act.
8 "Team" means any 2 or more licensees who work together to
9provide real estate brokerage services, represent themselves
10to the public as being part of a team or group, are identified
11by a team name that is different than their sponsoring broker's
12name, and together are supervised by the same managing broker
13and sponsored by the same sponsoring broker. "Team" does not
14mean a separately organized, incorporated, or legal entity.
15(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18;
16100-534, eff. 9-22-17; 100-831, eff. 1-1-19; 100-863, eff.
178-14-18.)
18 (225 ILCS 454/5-5)
19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 5-5. Residential leasing Leasing agent license.
21 (a) The purpose of this Section is to provide for a limited
22scope license to enable persons who wish to engage in
23activities limited to the leasing of residential real property
24for which a license is required under this Act, and only those
25activities, to do so by obtaining a the license provided for

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1under this Section.
2 (b) Notwithstanding the other provisions of this Act, there
3is hereby created a residential leasing agent license that
4shall enable the licensee to engage only in residential leasing
5activities for which a license is required under this Act. Such
6activities include leasing or renting residential real
7property, or attempting, offering, or negotiating to lease or
8rent residential real property, or supervising the collection,
9offer, attempt, or agreement to collect rent for the use of
10residential real property. Nothing in this Section shall be
11construed to require a licensed managing broker or broker to
12obtain a residential leasing agent license in order to perform
13leasing activities for which a license is required under this
14Act. Licensed residential leasing agents, including those
15operating under subsection (d), may engage in activities
16enumerated within the definition of "residential leasing
17agent" in Section 1-10 of this Act and may not engage in any
18activity that would otherwise require a broker's license,
19including, but not limited to, selling, offering for sale,
20negotiating for sale, listing or showing for sale, or referring
21for sale or commercial lease real estate. Licensed residential
22leasing agents must be sponsored and employed by a sponsoring
23broker.
24 (c) The Department, by rule and in accordance with this
25Act, shall provide for the licensing of residential leasing
26agents, including the issuance, renewal, and administration of

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1licenses.
2 (d) Notwithstanding any other provisions of this Act to the
3contrary, a person may engage in residential leasing activities
4for which a license is required under this Act, for a period of
5120 consecutive days without being licensed, so long as the
6person is acting under the supervision of a sponsoring broker,
7the sponsoring broker has notified the Department that the
8person is pursuing licensure under this Section, and the person
9has enrolled in the residential leasing agent pre-license
10education course no later than 60 days after beginning to
11engage in residential leasing activities. During the 120-day
12period all requirements of Sections 5-10 and 5-65 of this Act
13with respect to education, successful completion of an
14examination, and the payment of all required fees must be
15satisfied. The Department may adopt rules to ensure that the
16provisions of this subsection are not used in a manner that
17enables an unlicensed person to repeatedly or continually
18engage in activities for which a license is required under this
19Act.
20(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
21 (225 ILCS 454/5-6)
22 (Section scheduled to be repealed on January 1, 2020)
23 Sec. 5-6. Social Security Number or Tax Identification
24Number on license application. In addition to any other
25information required to be contained in the application, every

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1application for an original license under this Act shall
2include the applicant's Social Security Number or Tax
3Identification Number, which shall be retained in the agency's
4records pertaining to the license. As soon as practical, the
5Department shall assign a separate and distinct customer's
6identification number to each applicant for a license.
7 Every application for a renewal or restored license shall
8require the applicant's customer identification number.
9(Source: P.A. 96-856, eff. 12-31-09; 97-400, eff. 1-1-12.)
10 (225 ILCS 454/5-7)
11 (Section scheduled to be repealed on January 1, 2020)
12 Sec. 5-7. Application for residential leasing agent
13license. Every person who desires to obtain a residential
14leasing agent license shall apply to the Department in a manner
15prescribed writing on forms provided by the Department which
16application shall be accompanied by the required
17non-refundable fee. Any such application shall require such
18information as in the judgment of the Department will enable
19the Department to pass on the qualifications of the applicant
20for licensure.
21(Source: P.A. 96-856, eff. 12-31-09.)
22 (225 ILCS 454/5-10)
23 (Section scheduled to be repealed on January 1, 2020)
24 Sec. 5-10. Requirements for license as a residential

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1leasing agent; continuing education.
2 (a) Every applicant for licensure as a residential leasing
3agent must meet the following qualifications:
4 (1) be at least 18 years of age;
5 (2) be of good moral character;
6 (3) successfully complete a 4-year course of study in a
7 high school or secondary school or an equivalent course of
8 study approved by the state in which the school is located,
9 or possess a high school equivalency certificate, which
10 shall be verified under oath by the applicant the Illinois
11 State Board of Education;
12 (4) personally take and pass a written examination
13 authorized by the Department sufficient to demonstrate the
14 applicant's knowledge of the provisions of this Act
15 relating to residential leasing agents and the applicant's
16 competence to engage in the activities of a licensed
17 residential leasing agent;
18 (5) provide satisfactory evidence of having completed
19 15 hours of instruction in an approved course of study
20 relating to the leasing of residential real property. The
21 Board may shall recommend to the Department the number of
22 hours each topic of study shall require. The course of
23 study shall, among other topics, cover the provisions of
24 this Act applicable to residential leasing agents; fair
25 housing and human rights issues relating to residential
26 leasing; advertising and marketing issues; leases,

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1 applications, and credit and criminal background reports;
2 owner-tenant relationships and owner-tenant laws; the
3 handling of funds; and environmental issues relating to
4 residential real property;
5 (6) complete any other requirements as set forth by
6 rule; and
7 (7) present a valid application for issuance of an
8 initial license accompanied by a sponsor card and the fees
9 specified by rule.
10 (b) No applicant shall engage in any of the activities
11covered by this Act without a valid license and until a valid
12sponsorship has been registered with the Department sponsor
13card has been issued to such applicant. The sponsor card shall
14be valid for a maximum period of 45 days after the date of
15issuance unless extended for good cause as provided by rule.
16 (c) Successfully completed course work, completed pursuant
17to the requirements of this Section, may be applied to the
18course work requirements to obtain a managing broker's or
19broker's license as provided by rule. The Board may recommend
20to the Department and the Department may adopt requirements for
21approved courses, course content, and the approval of courses,
22instructors, and education providers, as well as education
23provider and instructor fees. The Department may establish
24continuing education requirements for residential licensed
25leasing agents, by rule, consistent with the language and
26intent of this Act, with the advice of the Board.

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1 (d) The continuing education requirement for residential
2leasing agents shall consist of a single core curriculum to be
3prescribed established by the Department as recommended by the
4Board. Leasing agents shall be required to complete no less
5than 8 6 hours of continuing education in the core curriculum
6for each 2-year renewal period. The curriculum shall, at a
7minimum, consist of a single course or courses on the subjects
8of fair housing and human rights issues related to residential
9leasing, advertising and marketing issues, leases,
10applications, credit reports, and criminal history, the
11handling of funds, owner-tenant relationships and owner-tenant
12laws, and environmental issues relating to residential real
13estate.
14(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
15 (225 ILCS 454/5-15)
16 (Section scheduled to be repealed on January 1, 2020)
17 Sec. 5-15. Necessity of managing broker, broker, or
18residential leasing agent license or sponsor card; ownership
19restrictions.
20 (a) It is unlawful for any person, as defined in Section
211-10, to act as a managing broker, broker, or residential
22leasing agent or to advertise or assume to act as such managing
23broker, broker or residential leasing agent without a properly
24issued sponsor card or a license issued in accordance with
25under this Act and a valid sponsorship registered with by the

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1Department, either directly or through its authorized
2designee.
3 (b) No corporation shall be granted a license or engage in
4the business or capacity, either directly or indirectly, of a
5broker, unless every officer of the corporation who actively
6participates in the real estate activities of the corporation
7holds a license as a managing broker or broker and unless every
8employee who acts as a managing broker, broker, or residential
9leasing agent for the corporation holds a license as a managing
10broker, broker, or residential leasing agent. All
11nonparticipating owners or officers shall submit affidavits of
12nonparticipation as required by the Department. No corporation
13shall be granted a license if any nonparticipating owner or
14officer has previously been publicly disciplined by the
15Department resulting in that licensee being currently barred
16from real estate practice because of a suspension or
17revocation.
18 (c) No partnership shall be granted a license or engage in
19the business or serve in the capacity, either directly or
20indirectly, of a broker, unless every partner in the
21partnership who actively participates in the real estate
22activities of the partnership holds a license as a managing
23broker or broker and unless every employee who acts as a
24managing broker, broker, or residential leasing agent for the
25partnership holds a license as a managing broker, broker, or
26residential leasing agent. All nonparticipating partners shall

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1submit affidavits of nonparticipation as required by the
2Department. In the case of a registered limited liability
3partnership (LLP), every partner in the LLP that actively
4participates in the real estate activities of the limited
5liability partnership must hold a license as a managing broker
6or broker and every employee who acts as a managing broker,
7broker, or residential leasing agent must hold a license as a
8managing broker, broker, or residential leasing agent. All
9nonparticipating limited liability partners shall submit
10affidavits of nonparticipation as required by the Department.
11No partnership shall be granted a license if any
12nonparticipating partner has previously been publicly
13disciplined by the Department resulting in that licensee being
14currently barred from real estate practice because of a
15suspension or revocation.
16 (d) No limited liability company shall be granted a license
17or engage in the business or serve in the capacity, either
18directly or indirectly, of a broker unless every member or
19manager in the limited liability company that actively
20participates in the real estate activities of the limited
21liability company holds a license as a managing broker or
22broker and unless every other member and employee who acts as a
23managing broker, broker, or residential leasing agent for the
24limited liability company holds a license as a managing broker,
25broker, or residential leasing agent. All nonparticipating
26members or managers shall submit affidavits of

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1nonparticipation as required by the Department. No limited
2liability company shall be granted a license if any
3nonparticipating member or manager has previously been
4publicly disciplined by the Department resulting in that
5licensee being currently barred from real estate practice
6because of a suspension or revocation.
7 (e) (Blank).
8 (f) No person, partnership, or business entity shall be
9granted a license if any participating owner, officer,
10director, partner, limited liability partner, member, or
11manager has been denied a real estate license by the Department
12in the previous 5 years or is otherwise currently barred from
13real estate practice because of a suspension or revocation.
14(Source: P.A. 99-227, eff. 8-3-15; 100-831, eff. 1-1-19.)
15 (225 ILCS 454/5-20)
16 (Section scheduled to be repealed on January 1, 2020)
17 Sec. 5-20. Exemptions from managing broker, broker, or
18residential leasing agent license requirement; Department
19exemption from education provider and related licenses. The
20requirement for holding a license under this Article 5 shall
21not apply to:
22 (1) Any person, as defined in Section 1-10, that as
23 owner or lessor performs any of the acts described in the
24 definition of "broker" under Section 1-10 of this Act with
25 reference to property owned or leased by it, or to the

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1 regular employees thereof with respect to the property so
2 owned or leased, where such acts are performed in the
3 regular course of or as an incident to the management,
4 sale, or other disposition of such property and the
5 investment therein, if provided that such regular
6 employees do not perform any of the acts described in the
7 definition of "broker" under Section 1-10 of this Act in
8 connection with a vocation of selling or leasing any real
9 estate or the improvements thereon not so owned or leased.
10 (2) An attorney in fact acting under a duly executed
11 and recorded power of attorney to convey real estate from
12 the owner or lessor or the services rendered by an attorney
13 at law in the performance of the attorney's duty as an
14 attorney at law.
15 (3) Any person acting as receiver, trustee in
16 bankruptcy, administrator, executor, or guardian or while
17 acting under a court order or under the authority of a will
18 or testamentary trust.
19 (4) Any person acting as a resident manager for the
20 owner or any employee acting as the resident manager for a
21 broker managing an apartment building, duplex, or
22 apartment complex, when the resident manager resides on the
23 premises, the premises is his or her primary residence, and
24 the resident manager is engaged in the leasing of the
25 property of which he or she is the resident manager.
26 (5) Any officer or employee of a federal agency in the

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1 conduct of official duties.
2 (6) Any officer or employee of the State government or
3 any political subdivision thereof performing official
4 duties.
5 (7) Any multiple listing service or other similar
6 information exchange that is engaged in the collection and
7 dissemination of information concerning real estate
8 available for sale, purchase, lease, or exchange for the
9 purpose of providing licensees with a system by which
10 licensees may cooperatively share information along with
11 which no other licensed activities, as defined in Section
12 1-10 of this Act, are provided.
13 (8) Railroads and other public utilities regulated by
14 the State of Illinois, or the officers or full-time full
15 time employees thereof, unless the performance of any
16 licensed activities is in connection with the sale,
17 purchase, lease, or other disposition of real estate or
18 investment therein that does not require not needing the
19 approval of the appropriate State regulatory authority.
20 (9) Any medium of advertising in the routine course of
21 selling or publishing advertising along with which no other
22 licensed activities, as defined in Section 1-10 of this
23 Act, are provided.
24 (10) Any resident lessee of a residential dwelling unit
25 who refers for compensation to the owner of the dwelling
26 unit, or to the owner's agent, prospective lessees of

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1 dwelling units in the same building or complex as the
2 resident lessee's unit, but only if the resident lessee (i)
3 refers no more than 3 prospective lessees in any 12-month
4 period, (ii) receives compensation of no more than $5,000
5 $1,500 or the equivalent of 2 months' one month's rent,
6 whichever is less, in any 12-month period, and (iii) limits
7 his or her activities to referring prospective lessees to
8 the owner, or the owner's agent, and does not show a
9 residential dwelling unit to a prospective lessee, discuss
10 terms or conditions of leasing a dwelling unit with a
11 prospective lessee, or otherwise participate in the
12 negotiation of the leasing of a dwelling unit.
13 (11) The purchase, sale, or transfer of a timeshare or
14 similar vacation item or interest, vacation club
15 membership, or other activity formerly regulated under the
16 Real Estate Timeshare Act of 1999 (repealed).
17 (12) (Blank).
18 (13) Any person who is licensed without examination
19 under Section 10-25 (now repealed) of the Auction License
20 Act is exempt from holding a managing broker's or broker's
21 license under this Act for the limited purpose of selling
22 or leasing real estate at auction, so long as:
23 (A) that person has made application for said
24 exemption by July 1, 2000;
25 (B) that person verifies to the Department that he
26 or she has sold real estate at auction for a period of

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1 5 years prior to licensure as an auctioneer;
2 (C) the person has had no lapse in his or her
3 license as an auctioneer; and
4 (D) the license issued under the Auction License
5 Act has not been disciplined for violation of those
6 provisions of Article 20 of the Auction License Act
7 dealing with or related to the sale or lease of real
8 estate at auction.
9 (14) A person who holds a valid license under the
10 Auction License Act and a valid real estate auction
11 certification and conducts auctions for the sale of real
12 estate under Section 5-32 of this Act.
13 (15) A hotel operator who is registered with the
14 Illinois Department of Revenue and pays taxes under the
15 Hotel Operators' Occupation Tax Act and rents a room or
16 rooms in a hotel as defined in the Hotel Operators'
17 Occupation Tax Act for a period of not more than 30
18 consecutive days and not more than 60 days in a calendar
19 year or a person who participates in an online marketplace
20 enabling persons to rent out all or part of the person's
21 owned residence.
22 (16) Notwithstanding any provisions to the contrary,
23 the Department and its employees shall be exempt from
24 education, course provider, instructor, and course license
25 requirements and fees while acting in an official capacity
26 on behalf of the Department. Courses offered by the

SB1872 Enrolled- 30 -LRB101 07705 RJF 52753 b
1 Department shall be eligible for continuing education
2 credit.
3(Source: P.A. 99-227, eff. 8-3-15; 100-534, eff. 9-22-17;
4100-831, eff. 1-1-19.)
5 (225 ILCS 454/5-25)
6 (Section scheduled to be repealed on January 1, 2020)
7 Sec. 5-25. Good moral character.
8 (a) When an applicant has had his or her license revoked on
9a prior occasion or when an applicant is found to have
10committed any of the practices enumerated in Section 20-20 of
11this Act or when an applicant has been convicted of or enters a
12plea of guilty or nolo contendere to forgery, embezzlement,
13obtaining money under false pretenses, larceny, extortion,
14conspiracy to defraud, or any other similar offense or offenses
15or has been convicted of a felony involving moral turpitude in
16any court of competent jurisdiction in this or any other state,
17district, or territory of the United States or of a foreign
18country, the Board may consider the prior revocation, conduct,
19or conviction in its determination of the applicant's moral
20character and whether to grant the applicant a license. In its
21consideration of the prior revocation, conduct, or conviction,
22the Board shall take into account the nature of the conduct,
23any aggravating or extenuating circumstances, the time elapsed
24since the revocation, conduct, or conviction, the
25rehabilitation or restitution performed by the applicant, and

SB1872 Enrolled- 31 -LRB101 07705 RJF 52753 b
1any other factors that the Board deems relevant. When an
2applicant has made a false statement of material fact on his or
3her application, the false statement may in itself be
4sufficient grounds to revoke or refuse to issue a license.
5 (b) In its consideration of the prior revocation, conduct,
6or conviction, the Board shall take into account the nature of
7the conduct, any aggravating or extenuating circumstances, the
8time elapsed since the revocation, conduct, or conviction, the
9rehabilitation or restitution performed by the applicant,
10mitigating factors, and any other factors that the Board deems
11relevant, including, but not limited to:
12 (1) the lack of direct relation of the offense for
13 which the applicant was previously convicted to the duties,
14 functions, and responsibilities of the position for which a
15 license is sought;
16 (2) unless otherwise specified, whether 5 years since a
17 felony conviction or 3 years since release from confinement
18 for the conviction, whichever is later, have passed without
19 a subsequent conviction;
20 (3) if the applicant was previously licensed or
21 employed in this State or other states or jurisdictions,
22 the lack of prior misconduct arising from or related to the
23 licensed position or position of employment;
24 (4) the age of the person at the time of the criminal
25 offense;
26 (5) if, due to the applicant's criminal conviction

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1 history, the applicant would be explicitly prohibited by
2 federal rules or regulations from working in the position
3 for which a license is sought;
4 (6) successful completion of sentence and, for
5 applicants serving a term of parole or probation, a
6 progress report provided by the applicant's probation or
7 parole officer that documents the applicant's compliance
8 with conditions of supervision;
9 (7) evidence of the applicant's present fitness and
10 professional character;
11 (8) evidence of rehabilitation or rehabilitative
12 effort during or after incarceration, or during or after a
13 term of supervision, including, but not limited to, a
14 certificate of good conduct under Section 5-5.5-25 of the
15 Unified Code of Corrections or a certificate of relief from
16 disabilities under Section 5-5.5-10 of the Unified Code of
17 Corrections; and
18 (9) any other mitigating factors that contribute to the
19 person's potential and current ability to perform the job
20 duties.
21 (c) The Department shall not require applicants to report
22the following information and shall not consider the following
23criminal history records in connection with an application for
24licensure or registration:
25 (1) juvenile adjudications of delinquent minors as
26 defined in Section 5-105 of the Juvenile Court Act of 1987

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1 subject to the restrictions set forth in Section 5-130 of
2 that Act;
3 (2) law enforcement records, court records, and
4 conviction records of an individual who was 17 years old at
5 the time of the offense and before January 1, 2014, unless
6 the nature of the offense required the individual to be
7 tried as an adult;
8 (3) records of arrests not followed by a charge or
9 conviction;
10 (4) records of arrests where the charges were dismissed
11 unless related to the practice of the profession; however,
12 applicants shall not be asked to report any arrests, and an
13 arrest not followed by a conviction shall not be the basis
14 of a denial and may be used only to assess an applicant's
15 rehabilitation;
16 (5) convictions overturned by a higher court; or
17 (6) convictions or arrests that have been sealed or
18 expunged.
19 (d) If an applicant makes a false statement of material
20fact on his or her application, the false statement may in
21itself be sufficient grounds to revoke or refuse to issue a
22license.
23 (e) A licensee shall report to the Department, in a manner
24adopted by rule, any plea of guilty, or nolo contendere to
25forgery, embezzlement, obtaining money under false pretenses,
26larceny, extortion, conspiracy to defraud, or any similar

SB1872 Enrolled- 34 -LRB101 07705 RJF 52753 b
1offense or offenses or any conviction of a felony involving
2moral turpitude that occurs during the licensee's term of
3licensure.
4(Source: P.A. 96-856, eff. 12-31-09.)
5 (225 ILCS 454/5-27)
6 (Section scheduled to be repealed on January 1, 2020)
7 Sec. 5-27. Requirements for licensure as a broker.
8 (a) Every applicant for licensure as a broker must meet the
9following qualifications:
10 (1) Be at least 18 21 years of age. The minimum age of
11 21 years shall be waived for any person seeking a license
12 as a broker who has attained the age of 18 and can provide
13 evidence of the successful completion of at least 4
14 semesters of post-secondary school study as a full-time
15 student or the equivalent, with major emphasis on real
16 estate courses, in a school approved by the Department;
17 (2) Be of good moral character;
18 (3) Successfully complete a 4-year course of study in a
19 high school or secondary school approved by the state in
20 which the school is located, or possess a high school
21 equivalency certificate, Illinois State Board of Education
22 or an equivalent course of study as determined by an
23 examination conducted by the Illinois State Board of
24 Education which shall be verified under oath by the
25 applicant;

SB1872 Enrolled- 35 -LRB101 07705 RJF 52753 b
1 (4) (Blank);
2 (5) Provide satisfactory evidence of having completed
3 75 90 hours of instruction in real estate courses approved
4 by the Department, 15 hours of which must consist of
5 situational and case studies presented in the classroom or
6 by live, interactive webinar or online distance education
7 courses;
8 (6) Personally take and pass a written examination
9 authorized by the Department;
10 (7) Present a valid application for issuance of a
11 license accompanied by a sponsor card and the fees
12 specified by rule.
13 (b) The requirements specified in items (3) and (5) of
14subsection (a) of this Section do not apply to applicants who
15are currently admitted to practice law by the Supreme Court of
16Illinois and are currently in active standing.
17 (c) No applicant shall engage in any of the activities
18covered by this Act until a valid sponsorship has been
19registered with the Department sponsor card has been issued to
20such applicant. The sponsor card shall be valid for a maximum
21period of 45 days after the date of issuance unless extended
22for good cause as provided by rule.
23 (d) All licenses should be readily available to the public
24at the licensee's their place of business.
25 (e) An individual holding an active license as a managing
26broker may, upon written request to the Department, permanently

SB1872 Enrolled- 36 -LRB101 07705 RJF 52753 b
1and irrevocably place his or her managing broker license on
2inactive status return the license to the Department along with
3a form provided by the Department and shall be issued a
4broker's license in exchange. Any individual obtaining a
5broker's license under this subsection (e) shall be considered
6as having obtained a broker's license by education and passing
7the required test and shall be treated as such in determining
8compliance with this Act.
9(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
10 (225 ILCS 454/5-28)
11 (Section scheduled to be repealed on January 1, 2020)
12 Sec. 5-28. Requirements for licensure as a managing broker.
13 (a) Every applicant for licensure as a managing broker must
14meet the following qualifications:
15 (1) be at least 20 21 years of age;
16 (2) be of good moral character;
17 (3) have been licensed at least 2 consecutive years out
18 of the preceding 3 years as a broker;
19 (4) successfully complete a 4-year course of study in
20 high school or secondary school approved by the state in
21 which the school is located, or a high school equivalency
22 certificate Illinois State Board of Education or an
23 equivalent course of study as determined by an examination
24 conducted by the Illinois State Board of Education, which
25 shall be verified under oath by the applicant;

SB1872 Enrolled- 37 -LRB101 07705 RJF 52753 b
1 (5) provide satisfactory evidence of having completed
2 at least 165 hours, 120 of which shall be those hours
3 required pre-licensure pre and post-licensure to obtain a
4 broker's license, and 45 additional hours completed within
5 the year immediately preceding the filing of an application
6 for a managing broker's license, which hours shall focus on
7 brokerage administration and management and residential
8 leasing agent management and include at least 15 hours in
9 the classroom or by live, interactive webinar or online
10 distance education courses;
11 (6) personally take and pass a written examination
12 authorized by the Department; and
13 (7) submit present a valid application for issuance of
14 a license accompanied by a sponsor card, an appointment as
15 a managing broker, and the fees specified by rule.
16 (b) The requirements specified in item (5) of subsection
17(a) of this Section do not apply to applicants who are
18currently admitted to practice law by the Supreme Court of
19Illinois and are currently in active standing.
20 (c) No applicant shall act as a managing broker for more
21than 90 days after an appointment as a managing broker has been
22filed with the Department without obtaining a managing broker's
23license.
24(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
25 (225 ILCS 454/5-29 new)

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1 Sec. 5-29. Temporary practice as a designated managing
2broker. Upon the loss of a designated managing broker who is
3not replaced by the sponsoring broker or in the event of the
4death or adjudicated disability of the sole proprietor of an
5office, a written request for authorization allowing the
6continued operation of the office may be submitted to the
7Department within 15 days of the loss. The Department may issue
8a written authorization allowing the continued operation,
9provided that a licensed managing broker or, in the case of the
10death or adjudicated disability of a sole proprietor, the
11representative of the estate, assumes responsibility, in
12writing, for the operation of the office and agrees to
13personally supervise the operation of the office. No such
14written authorization shall be valid for more than 60 days
15unless extended by the Department for good cause shown and upon
16written request by the broker or representative.
17 (225 ILCS 454/5-35)
18 (Section scheduled to be repealed on January 1, 2020)
19 Sec. 5-35. Examination; managing broker, broker, or
20residential leasing agent.
21 (a) The Department shall authorize examinations at such
22times and places as it may designate. The examination shall be
23of a character to give a fair test of the qualifications of the
24applicant to practice as a managing broker, broker, or
25residential leasing agent. Applicants for examination as a

SB1872 Enrolled- 39 -LRB101 07705 RJF 52753 b
1managing broker, broker, or residential leasing agent shall be
2required to pay, either to the Department or the designated
3testing service, a fee covering the cost of providing the
4examination. Failure to appear for the examination on the
5scheduled date, at the time and place specified, after the
6applicant's application for examination has been received and
7acknowledged by the Department or its the designated testing
8service, shall result in the forfeiture of the examination fee.
9An applicant shall be eligible to take the examination only
10after successfully completing the education requirements and
11attaining the minimum age provided for in Article 5 of this
12Act. Each applicant shall be required to establish compliance
13with the eligibility requirements in the manner provided by the
14rules promulgated for the administration of this Act.
15 (b) If a person who has received a passing score on the
16written examination described in this Section fails to submit
17file an application and meet all requirements for a license
18under this Act within one year after receiving a passing score
19on the examination, credit for the examination shall terminate.
20The person thereafter may make a new application for
21examination.
22 (c) If an applicant has failed an examination 4 consecutive
23times, the applicant must repeat the pre-license education
24required to sit for that the examination. For the purposes of
25this Section, the fifth attempt shall be the same as the first.
26Approved education, as prescribed by this Act for licensure as

SB1872 Enrolled- 40 -LRB101 07705 RJF 52753 b
1a managing broker, broker, or residential leasing agent, shall
2be valid for 2 4 years after the date of satisfactory
3completion of the education.
4 (d) The Department may employ consultants for the purposes
5of preparing and conducting examinations.
6(Source: P.A. 99-227, eff. 8-3-15.)
7 (225 ILCS 454/5-40)
8 (Section scheduled to be repealed on January 1, 2020)
9 Sec. 5-40. Sponsorship; establishing and terminating
10sponsorship Sponsor card; termination indicated by license
11endorsement; association with new broker.
12 (a) The sponsoring broker shall notify the Department, in a
13manner prescribed by the Department, of each licensee employed
14by or associated with the sponsoring broker within 24 hours
15after establishing a sponsorship prepare upon forms provided by
16the Department and deliver to each licensee employed by or
17associated with the sponsoring broker a sponsor card certifying
18that the person whose name appears thereon is in fact employed
19by or associated with the sponsoring broker. The sponsoring
20broker shall send a duplicate of each sponsor card, along with
21a valid license or other authorization as provided by rule and
22the appropriate fee, to the Department within 24 hours of
23issuance of the sponsor card. It is a violation of this Act for
24any broker to issue a sponsor card to any licensee or applicant
25unless the licensee or applicant presents in hand a valid

SB1872 Enrolled- 41 -LRB101 07705 RJF 52753 b
1license or other authorization as provided by rule.
2 (b) When a licensee terminates his or her employment or
3association with a sponsoring broker or the employment is
4terminated by the sponsoring broker, the person or entity
5initiating the termination shall notify the Department, in a
6manner prescribed by the Department, of the termination within
724 hours licensee shall obtain from the sponsoring broker his
8or her license endorsed by the sponsoring broker indicating the
9termination. The sponsoring broker shall surrender to the
10Department a copy of the license of the licensee within 2 days
11of the termination or shall notify the Department in writing of
12the termination and explain why a copy of the license is not
13surrendered. Failure to timely notify the Department of the
14termination shall subject the person or entity initiating the
15termination of the sponsoring broker to surrender the license
16shall subject the sponsoring broker to discipline under Section
1720-20 of this Act. The license of any licensee whose
18association with a sponsoring broker is terminated shall
19automatically become inactive inoperative immediately upon the
20termination, and the licensee shall not be authorized to
21practice until a new valid sponsorship is registered with the
22Department unless the licensee accepts employment or becomes
23associated with a new sponsoring broker pursuant to subsection
24(c) of this Section.
25 (c) When a licensee accepts employment or association with
26a new sponsoring broker, the new sponsoring broker shall send

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1to the Department a duplicate sponsor card, along with the
2licensee's endorsed license or an affidavit of the licensee of
3why the endorsed license is not surrendered, and shall pay the
4appropriate fee prescribed by rule to cover administrative
5expenses attendant to the changes in the registration of the
6licensee.
7(Source: P.A. 96-856, eff. 12-31-09.)
8 (225 ILCS 454/5-41)
9 (Section scheduled to be repealed on January 1, 2020)
10 Sec. 5-41. Licensee contact information Change of address.
11An applicant or A licensee shall inform notify the Department
12of any change of address, email address, telephone number, or
13office location within 24 hours after any such change. A
14licensee shall notify the Department of any such change either
15through the Department's website or by other means prescribed
16by the Department the address or addresses, and of every change
17of address, where the licensee practices as a leasing agent,
18broker or managing broker.
19(Source: P.A. 99-227, eff. 8-3-15.)
20 (225 ILCS 454/5-45)
21 (Section scheduled to be repealed on January 1, 2020)
22 Sec. 5-45. Offices.
23 (a) If a sponsoring broker maintains more than one office
24within the State, the sponsoring broker shall notify the

SB1872 Enrolled- 43 -LRB101 07705 RJF 52753 b
1Department in a manner on forms prescribed by the Department
2for each office other than the sponsoring broker's principal
3place of business. The brokerage license shall be displayed
4conspicuously in each branch office. The name of each branch
5office shall be the same as that of the sponsoring broker's
6principal office or shall clearly delineate the branch office's
7relationship with the principal office.
8 (b) The sponsoring broker shall name a designated managing
9broker for each branch office and the sponsoring broker shall
10be responsible for supervising all designated managing
11brokers. The sponsoring broker shall notify the Department in a
12manner prescribed by the Department writing of the name of all
13designated managing brokers of the sponsoring broker and the
14office or offices they manage. Any person initially named as a
15managing broker after April 30, 2011 must either (i) be
16licensed as a managing broker or (ii) meet all the requirements
17to be licensed as a managing broker except the required
18education and examination and secure the managing broker's
19license within 90 days of being named as a managing broker. Any
20changes in designated managing brokers shall be reported to the
21Department in a manner prescribed by the Department writing
22within 15 days of the change. Failure to do so shall subject
23the sponsoring broker to discipline under Section 20-20 of this
24Act.
25 (c) The sponsoring broker shall, within 24 hours,
26immediately notify the Department in a manner prescribed by the

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1Department writing of any opening, closing, or change in
2location of any principal or branch office.
3 (d) Except as provided in this Section, each sponsoring
4broker shall maintain an a definite office, or place of
5business within this State for the transaction of real estate
6business, shall conspicuously display an identification sign
7on the outside of his or her physical office of adequate size
8and visibility. Any record required by this Act to be created
9or maintained shall be, in the case of a physical record,
10securely stored and accessible for inspection by the Department
11at the sponsoring broker's principal office and, in the case of
12an electronic record, securely stored in the format in which it
13was originally generated, sent, or received and accessible for
14inspection by the Department by secure electronic access to the
15record. Any record relating to a transaction of a special
16account shall be maintained for a minimum of 5 years, and any
17electronic record shall be backed up at least monthly. The
18office or place of business shall not be located in any retail
19or financial business establishment unless it is clearly
20separated from the other business by a separate and is situated
21within a distinct area within the establishment.
22 (e) A broker who is licensed in this State by examination
23or pursuant to the provisions of Section 5-60 of this Act shall
24not be required to maintain a definite office or place of
25business in this State provided all of the following conditions
26are met:

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1 (1) the broker maintains an active broker's license in
2 the broker's state of domicile;
3 (2) the broker maintains an office in the broker's
4 state of domicile; and
5 (3) the broker has filed with the Department written
6 statements appointing the Secretary to act as the broker's
7 agent upon whom all judicial and other process or legal
8 notices directed to the licensee may be served and agreeing
9 to abide by all of the provisions of this Act with respect
10 to his or her real estate activities within the State of
11 Illinois and submitting to the jurisdiction of the
12 Department.
13 The statements under subdivision (3) of this Section shall
14be in form and substance the same as those statements required
15under Section 5-60 of this Act and shall operate to the same
16extent.
17 (e) Upon the loss of a managing broker who is not replaced
18by the sponsoring broker or in the event of the death or
19adjudicated disability of the sole proprietor of an office, a
20written request for authorization allowing the continued
21operation of the office may be submitted to the Department
22within 15 days of the loss. The Department may issue a written
23authorization allowing the continued operation, provided that
24a licensed broker, or in the case of the death or adjudicated
25disability of a sole proprietor, the representative of the
26estate, assumes responsibility, in writing, for the operation

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1of the office and agrees to personally supervise the operation
2of the office. No such written authorization shall be valid for
3more than 60 days unless extended by the Department for good
4cause shown and upon written request by the broker or
5representative.
6 (f) The Department may adopt rules to permit and regulate
7the operation of virtual offices that do not have a fixed
8location.
9(Source: P.A. 100-831, eff. 1-1-19.)
10 (225 ILCS 454/5-50)
11 (Section scheduled to be repealed on January 1, 2020)
12 Sec. 5-50. Expiration and renewal of managing broker,
13broker, or residential leasing agent license; sponsoring
14broker; register of licensees; pocket card.
15 (a) The expiration date and renewal period for each license
16issued under this Act shall be set by rule. Except as otherwise
17provided in this Section, the holder of a license may renew the
18license within 90 days preceding the expiration date thereof by
19completing the continuing education required by this Act and
20paying the fees specified by rule.
21 (b) An individual whose first license is that of a broker
22received on or after the effective date of this amendatory Act
23of the 101st General Assembly the effective date of this
24amendatory Act of the 100th General Assembly, must provide
25evidence of having completed 45 30 hours of post-license

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1education in courses recommended by the Board and approved by
2the Department, 15 hours of which must consist of situational
3and case studies presented in a classroom or a live,
4interactive webinar, or online distance education course, and
5which shall require passage of a final examination or home
6study course. Credit for courses taken through a home study
7course shall require passage of an examination approved by the
8Department prior to the first renewal of their broker's
9license.
10 The Board may recommend, and the Department shall approve,
1145 hours of post-license education, consisting of three 15-hour
12post-license courses, one each that covers applied brokerage
13principles, risk management/discipline, and transactional
14issues. Each of the courses shall require its own 50-question
15final examination, which shall be administered by the education
16provider that delivers the course.
17 Individuals whose first license is that of a broker
18received on or after the effective date of this amendatory Act
19of the 101st General Assembly, must complete all three 15-hour
20courses and successfully pass a course final examination for
21each course prior to the date of the next broker renewal
22deadline, except for those individuals who receive their first
23license within the 180 days preceding the next broker renewal
24deadline, who must complete all three 15-hour courses and
25successfully pass a course final examination for each course
26prior to the second broker renewal deadline that follows the

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1receipt of their license.
2 (c) Any managing broker, broker, or residential leasing
3agent whose license under this Act has expired shall be
4eligible to renew the license during the 2-year period
5following the expiration date, provided the managing broker,
6broker, or residential leasing agent pays the fees as
7prescribed by rule and completes continuing education and other
8requirements provided for by the Act or by rule. A Beginning on
9May 1, 2012, a managing broker licensee, broker, or residential
10leasing agent whose license has been expired for more than 2
11years but less than 5 years may have it restored by (i)
12applying to the Department, (ii) paying the required fee, (iii)
13completing the continuing education requirements for the most
14recent pre-renewal period that ended prior to the date of the
15application for reinstatement, and (iv) filing acceptable
16proof of fitness to have his or her license restored, as set by
17rule. A managing broker, broker, or residential leasing agent
18whose license has been expired for more than 5 years shall be
19required to meet the requirements for a new license.
20 (d) Notwithstanding any other provisions of this Act to the
21contrary, any managing broker, broker, or residential leasing
22agent whose license expired while he or she was (i) on active
23duty with the Armed Forces of the United States or called into
24service or training by the state militia, (ii) engaged in
25training or education under the supervision of the United
26States preliminary to induction into military service, or (iii)

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1serving as the Coordinator of Real Estate in the State of
2Illinois or as an employee of the Department may have his or
3her license renewed, reinstated or restored without paying any
4lapsed renewal fees if within 2 years after the termination of
5the service, training or education by furnishing the Department
6with satisfactory evidence of service, training, or education
7and it has been terminated under honorable conditions.
8 (e) The Department shall establish and maintain a register
9of all persons currently licensed by the State and shall issue
10and prescribe a form of pocket card. Upon payment by a licensee
11of the appropriate fee as prescribed by rule for engagement in
12the activity for which the licensee is qualified and holds a
13license for the current period, the Department shall issue a
14pocket card to the licensee. The pocket card shall be
15verification that the required fee for the current period has
16been paid and shall indicate that the person named thereon is
17licensed for the current renewal period as a managing broker,
18broker, or leasing agent as the case may be. The pocket card
19shall further indicate that the person named thereon is
20authorized by the Department to engage in the licensed activity
21appropriate for his or her status (managing broker, broker, or
22leasing agent). Each licensee shall carry on his or her person
23his or her license or an electronic version thereof pocket card
24or, if such pocket card has not yet been issued, a properly
25issued sponsor card when engaging in any licensed activity and
26shall display the same on demand.

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1 (f) The Department shall provide to the sponsoring broker a
2notice of renewal for all sponsored licensees by mailing the
3notice to the sponsoring broker's address of record, or, at the
4Department's discretion, emailing the notice to the sponsoring
5broker's email address of record by an electronic means as
6provided for by rule.
7 (g) Upon request from the sponsoring broker, the Department
8shall make available to the sponsoring broker, either by mail
9or by an electronic means at the discretion of the Department,
10a listing of licensees under this Act who, according to the
11records of the Department, are sponsored by that broker. Every
12licensee associated with or employed by a broker whose license
13is revoked, suspended, terminated, or expired shall be
14considered inactive as inoperative until such time as the
15sponsoring broker's license is reinstated or renewed, or the
16licensee changes employment as set forth in subsection (c) of
17Section 5-40 of this Act.
18(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
19 (225 ILCS 454/5-60)
20 (Section scheduled to be repealed on January 1, 2020)
21 Sec. 5-60. Managing broker licensed in another state;
22broker licensed in another state; reciprocal agreements; agent
23for service of process.
24 (a) A Effective May 1, 2011, a managing broker's license
25may be issued by the Department to a managing broker or its

SB1872 Enrolled- 51 -LRB101 07705 RJF 52753 b
1equivalent licensed under the laws of another state of the
2United States, under the following conditions:
3 (1) the managing broker holds a managing broker's
4 license in a state that has entered into a reciprocal
5 agreement with the Department;
6 (2) the standards for that state for licensing as a
7 managing broker are substantially equal to or greater than
8 the minimum standards in the State of Illinois;
9 (3) the managing broker has been actively practicing as
10 a managing broker in the managing broker's state of
11 licensure for a period of not less than 2 years,
12 immediately prior to the date of application;
13 (4) the managing broker furnishes the Department with a
14 statement under seal of the proper licensing authority of
15 the state in which the managing broker is licensed showing
16 that the managing broker has an active managing broker's
17 license, that the managing broker is in good standing, and
18 that no complaints are pending against the managing broker
19 in that state;
20 (5) the managing broker passes a test on Illinois
21 specific real estate brokerage laws; and
22 (6) the managing broker was licensed by an examination
23 in the state that has entered into a reciprocal agreement
24 with the Department.
25 (b) A broker's license may be issued by the Department to a
26broker or its equivalent licensed under the laws of another

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1state of the United States, under the following conditions:
2 (1) the broker holds a broker's license in a state that
3 has entered into a reciprocal agreement with the
4 Department;
5 (2) the standards for that state for licensing as a
6 broker are substantially equivalent to or greater than the
7 minimum standards in the State of Illinois;
8 (3) (blank); if the application is made prior to May 1,
9 2012, then the broker has been actively practicing as a
10 broker in the broker's state of licensure for a period of
11 not less than 2 years, immediately prior to the date of
12 application;
13 (4) the broker furnishes the Department with a
14 statement under seal of the proper licensing authority of
15 the state in which the broker is licensed showing that the
16 broker has an active broker's license, that the broker is
17 in good standing, and that no complaints are pending
18 against the broker in that state;
19 (5) the broker passes a test on Illinois specific real
20 estate brokerage laws; and
21 (6) the broker was licensed by an examination in a
22 state that has entered into a reciprocal agreement with the
23 Department.
24 (c) (Blank).
25 (d) As a condition precedent to the issuance of a license
26to a managing broker or broker pursuant to this Section, the

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1managing broker or broker shall agree in writing to abide by
2all the provisions of this Act with respect to his or her real
3estate activities within the State of Illinois and submit to
4the jurisdiction of the Department as provided in this Act. The
5agreement shall be filed with the Department and shall remain
6in force for so long as the managing broker or broker is
7licensed by this State and thereafter with respect to acts or
8omissions committed while licensed as a managing broker or
9broker in this State.
10 (e) Prior to the issuance of any license to any managing
11broker or broker pursuant to this Section, verification of
12active licensure issued for the conduct of such business in any
13other state must be filed with the Department by the managing
14broker or broker, and the same fees must be paid as provided in
15this Act for the obtaining of a managing broker's or broker's
16license in this State.
17 (f) Licenses previously granted under reciprocal
18agreements with other states shall remain in force so long as
19the Department has a reciprocal agreement with the state that
20includes the requirements of this Section, unless that license
21is suspended, revoked, or terminated by the Department for any
22reason provided for suspension, revocation, or termination of a
23resident licensee's license. Licenses granted under reciprocal
24agreements may be renewed in the same manner as a resident's
25license.
26 (g) Prior to the issuance of a license to a nonresident

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1managing broker or broker, the managing broker or broker shall
2file with the Department, in a manner prescribed by the
3Department, a designation in writing that appoints the
4Secretary to act as his or her agent upon whom all judicial and
5other process or legal notices directed to the managing broker
6or broker may be served. Service upon the agent so designated
7shall be equivalent to personal service upon the licensee.
8Copies of the appointment, certified by the Secretary, shall be
9deemed sufficient evidence thereof and shall be admitted in
10evidence with the same force and effect as the original thereof
11might be admitted. In the written designation, the managing
12broker or broker shall agree that any lawful process against
13the licensee that is served upon the agent shall be of the same
14legal force and validity as if served upon the licensee and
15that the authority shall continue in force so long as any
16liability remains outstanding in this State. Upon the receipt
17of any process or notice, the Secretary shall forthwith deliver
18mail a copy of the same by regular certified mail or email to
19the last known business address or email address of the
20licensee.
21 (h) Any person holding a valid license under this Section
22shall be eligible to obtain a managing broker's license or a
23broker's license without examination should that person change
24their state of domicile to Illinois and that person otherwise
25meets the qualifications for licensure under this Act.
26(Source: P.A. 99-227, eff. 8-3-15.)

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1 (225 ILCS 454/5-70)
2 (Section scheduled to be repealed on January 1, 2020)
3 Sec. 5-70. Continuing education requirement; managing
4broker or broker.
5 (a) The requirements of this Section apply to all managing
6brokers and brokers.
7 (b) Except as otherwise provided in this Section, each
8person who applies for renewal of his or her license as a
9managing broker or broker must successfully complete 12 6 hours
10of real estate continuing education courses recommended by the
11Board and approved by the Department during the current term of
12the license for each year of the pre-renewal period. In
13addition, beginning with the pre-renewal period for managing
14broker licensees that begins after the effective date of this
15Act, those licensees renewing or obtaining a managing broker's
16license must successfully complete a 12-hour broker management
17continuing education course approved by the Department during
18the current term of the license each pre-renewal period. The
19broker management continuing education course must be
20completed in the classroom or through a live, by other
21interactive webinar or online distance education format
22delivery method between the instructor and the students.
23Successful completion of the course shall include achieving a
24passing score as provided by rule on a test developed and
25administered in accordance with rules adopted by the

SB1872 Enrolled- 56 -LRB101 07705 RJF 52753 b
1Department. No license may be renewed except upon the
2successful completion of the required courses or their
3equivalent or upon a waiver of those requirements for good
4cause shown as determined by the Secretary upon with the
5recommendation of the Board. The requirements of this Article
6are applicable to all managing brokers and brokers except those
7managing brokers and brokers who, during the renewal
8pre-renewal period:
9 (1) serve in the armed services of the United States;
10 (2) serve as an elected State or federal official;
11 (3) serve as a full-time employee of the Department; or
12 (4) are admitted to practice law pursuant to Illinois
13 Supreme Court rule.
14 (c) (Blank).
15 (d) A person receiving an initial license during the 90
16days before the renewal date shall not be required to complete
17the continuing education courses provided for in subsection (b)
18of this Section as a condition of initial license renewal.
19 (e) The continuing education requirement for brokers and
20managing brokers shall consist of a single core curriculum and
21an elective curriculum, to be recommended by the Board and
22approved by the Department in accordance with this subsection.
23The core curriculum shall not be further divided into
24subcategories or divisions of instruction. The core curriculum
25shall consist of 4 hours during the current term of the license
26per 2-year pre-renewal period on subjects that may include, but

SB1872 Enrolled- 57 -LRB101 07705 RJF 52753 b
1are not limited to, advertising, agency, disclosures, escrow,
2fair housing, residential leasing agent management, and
3license law. The amount of time allotted to each of these
4subjects shall be recommended by the Board and determined by
5the Department. The Department, upon the recommendation of the
6Board, shall review the core curriculum every 4 years, at a
7minimum, and shall revise the curriculum if necessary. However,
8the core curriculum's total hourly requirement shall only be
9subject to change by amendment of this subsection, and any
10change to the core curriculum shall not be effective for a
11period of 6 months after such change is made by the Department.
12The Department shall provide notice to all approved education
13providers of any changes to the core curriculum. When
14determining whether revisions of the core curriculum's
15subjects or specific time requirements are necessary, the Board
16shall consider recent changes in applicable laws, new laws, and
17areas of the license law and the Department policy that the
18Board deems appropriate, and any other subject areas the Board
19deems timely and applicable in order to prevent violations of
20this Act and to protect the public. In establishing a
21recommendation to the Department regarding the elective
22curriculum, the Board shall consider subjects that cover the
23various aspects of the practice of real estate that are covered
24under the scope of this Act.
25 (f) The subject areas of continuing education courses
26recommended by the Board and approved by the Department shall

SB1872 Enrolled- 58 -LRB101 07705 RJF 52753 b
1be meant to protect the professionalism of the industry, the
2consumer, and the public and prevent violations of this Act and
3may include without limitation the following:
4 (1) license law and escrow;
5 (2) antitrust;
6 (3) fair housing;
7 (4) agency;
8 (5) appraisal;
9 (6) property management;
10 (7) residential brokerage;
11 (8) farm property management;
12 (9) transaction management rights and duties of
13 parties in a transaction sellers, buyers, and brokers;
14 (10) commercial brokerage and leasing;
15 (11) real estate financing;
16 (12) disclosures;
17 (13) residential leasing agent management; and
18 (14) advertising; .
19 (15) broker supervision and managing broker
20 responsibility;
21 (16) professional conduct; and
22 (17) use of technology.
23 (g) In lieu of credit for those courses listed in
24subsection (f) of this Section, credit may be earned for
25serving as a licensed instructor in an approved course of
26continuing education. The amount of credit earned for teaching

SB1872 Enrolled- 59 -LRB101 07705 RJF 52753 b
1a course shall be the amount of continuing education credit for
2which the course is approved for licensees taking the course.
3 (h) Credit hours may be earned for self-study programs
4approved by the Department.
5 (i) A managing broker or broker may earn credit for a
6specific continuing education course only once during the
7current term of the license pre-renewal period.
8 (j) No more than 12 6 hours of continuing education credit
9may be taken in one calendar day.
10 (k) To promote the offering of a uniform and consistent
11course content, the Department may provide for the development
12of a single broker management course to be offered by all
13education providers who choose to offer the broker management
14continuing education course. The Department may contract for
15the development of the 12-hour broker management continuing
16education course with an outside vendor or consultant and, if
17the course is developed in this manner, the Department or the
18outside consultant shall license the use of that course to all
19approved education providers who wish to provide the course.
20 (l) Except as specifically provided in this Act, continuing
21education credit hours may not be earned for completion of
22pre-license pre or post-license courses. The courses
23comprising the approved 45-hour 30-hour post-license
24curriculum course for broker licensees shall satisfy the
25continuing education requirement for the pre-renewal period in
26which the courses are course is taken. The approved 45-hour

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1brokerage administration and management course shall satisfy
2the 12-hour broker management continuing education requirement
3for the license term pre-renewal period in which the course is
4taken.
5(Source: P.A. 99-227, eff. 8-3-15; 99-728, eff. 1-1-17;
6100-188, eff. 1-1-18.)
7 (225 ILCS 454/5-75)
8 (Section scheduled to be repealed on January 1, 2020)
9 Sec. 5-75. Out-of-state continuing education credit. If a
10renewal applicant has earned continuing education hours in
11another state or territory for which he or she is claiming
12credit toward full compliance in Illinois, the Board shall
13review and recommend to the Department may whether it should
14approve those hours based upon whether the course is one that
15would be approved under Section 5-70 of this Act, whether the
16course meets the basic requirements for continuing education
17under this Act, and any other criteria that are is provided by
18statute or rule.
19(Source: P.A. 100-188, eff. 1-1-18.)
20 (225 ILCS 454/10-5)
21 (Section scheduled to be repealed on January 1, 2020)
22 Sec. 10-5. Payment of compensation.
23 (a) No licensee shall pay compensation directly to a
24licensee sponsored by another sponsoring broker for the

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1performance of licensed activities. No licensee sponsored by a
2broker may pay compensation to any licensee other than his or
3her sponsoring broker for the performance of licensed
4activities unless the licensee paying the compensation is a
5principal to the transaction. However, a non-sponsoring broker
6may pay compensation directly to a licensee sponsored by
7another or a person who is not sponsored by a broker if the
8payments are made pursuant to terms of an employment agreement
9that was previously in place between a licensee and the
10non-sponsoring broker, and the payments are for licensed
11activity performed by that person while previously sponsored by
12the now non-sponsoring broker.
13 (b) No licensee sponsored by a broker shall accept
14compensation for the performance of activities under this Act
15except from the broker by whom the licensee is sponsored,
16except as provided in this Section.
17 (c) (Blank). Any person that is a licensed personal
18assistant for another licensee may only be compensated in his
19or her capacity as a personal assistant by the sponsoring
20broker for that licensed personal assistant.
21 (d) One sponsoring broker may pay compensation directly to
22another sponsoring broker for the performance of licensed
23activities.
24 (e) Notwithstanding any other provision of this Act, a
25sponsoring broker may pay compensation to a person currently
26licensed under the Auction License Act who is in compliance

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1with and providing services under Section 5-32 of this Act.
2(Source: P.A. 98-553, eff. 1-1-14.)
3 (225 ILCS 454/10-10)
4 (Section scheduled to be repealed on January 1, 2020)
5 Sec. 10-10. Disclosure of compensation.
6 (a) A licensee must disclose to a client the sponsoring
7broker's compensation and policy with regard to cooperating
8with brokers who represent other parties in a transaction.
9 (b) A licensee must disclose to a client all sources of
10compensation related to the transaction received by the
11licensee from a third party.
12 (c) If a licensee refers a client to a third party in which
13the licensee has greater than a 1% ownership interest or from
14which the licensee receives or may receive dividends or other
15profit sharing distributions, other than a publicly held or
16traded company, for the purpose of the client obtaining
17services related to the transaction, then the licensee shall
18disclose that fact to the client at the time of making the
19referral.
20 (d) If in any one transaction a sponsoring broker receives
21compensation from both the buyer and seller or lessee and
22lessor of real estate, the sponsoring broker shall disclose in
23writing to a client the fact that the compensation is being
24paid by both buyer and seller or lessee and lessor.
25 (e) Nothing in the Act shall prohibit the cooperation with

SB1872 Enrolled- 63 -LRB101 07705 RJF 52753 b
1or a payment of compensation to an individual domiciled in any
2other state a person not domiciled in this State or country who
3is licensed as a broker in his or her state or country of
4domicile or to a resident of a country that does not require a
5person to be licensed to act as a broker if the person complies
6with the laws of the country in which that person resides and
7practices there as a broker.
8(Source: P.A. 99-227, eff. 8-3-15.)
9 (225 ILCS 454/10-15)
10 (Section scheduled to be repealed on January 1, 2020)
11 Sec. 10-15. No compensation to persons in violation of Act;
12compensation to unlicensed persons; consumer.
13 (a) No compensation may be paid to any unlicensed person in
14exchange for the person performing licensed activities in
15violation of this Act.
16 (b) No action or suit shall be instituted, nor recovery
17therein be had, in any court of this State by any person for
18compensation for any act done or service performed, the doing
19or performing of which is prohibited by this Act to other than
20licensed managing brokers, brokers, or residential leasing
21agents unless the person was duly licensed hereunder as a
22managing broker, broker, or residential leasing agent under
23this Act at the time that any such act was done or service
24performed that would give rise to a cause of action for
25compensation.

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1 (c) A licensee may offer compensation, including prizes,
2merchandise, services, rebates, discounts, or other
3consideration to an unlicensed person who is a party to a
4contract to buy or sell real estate or is a party to a contract
5for the lease of real estate, so long as the offer complies
6with the provisions of subdivision (35) of subsection (a) of
7Section 20-20 of this Act.
8 (d) A licensee may offer cash, gifts, prizes, awards,
9coupons, merchandise, rebates or chances to win a game of
10chance, if not prohibited by any other law or statute, to a
11consumer as an inducement to that consumer to use the services
12of the licensee even if the licensee and consumer do not
13ultimately enter into a broker-client relationship so long as
14the offer complies with the provisions of subdivision (35) of
15subsection (a) of Section 20-20 of this Act.
16 (e) A licensee shall not pay compensation to an unlicensed
17person who is not or will not become a party to a real estate
18transaction in exchange for a referral of real estate services.
19 (f) Nothing in this Section shall be construed as waiving
20or abrogating the provisions of the Real Estate Settlement
21Procedures Act (RESPA), 88 Stat. 1724.
22(Source: P.A. 99-227, eff. 8-3-15; 100-831, eff. 1-1-19.)
23 (225 ILCS 454/10-20)
24 (Section scheduled to be repealed on January 1, 2020)
25 Sec. 10-20. Sponsoring broker; employment agreement.

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1 (a) A licensee may perform activities as a licensee only
2for his or her sponsoring broker. A licensee must have only one
3sponsoring broker at any one time.
4 (b) Every broker who employs licensees or has an
5independent contractor relationship with a licensee shall have
6a written employment or independent contractor agreement with
7each such licensee. The broker having this written employment
8or independent contractor agreement with the licensee must be
9that licensee's sponsoring broker.
10 (c) Every sponsoring broker must have a written employment
11or independent contractor agreement with each licensee the
12broker sponsors. The agreement shall address the employment or
13independent contractor relationship terms, including without
14limitation supervision, duties, compensation, and termination
15process.
16 (d) (Blank). Every sponsoring broker must have a written
17employment agreement with each licensed personal assistant who
18assists a licensee sponsored by the sponsoring broker. This
19requirement applies to all licensed personal assistants
20whether or not they perform licensed activities in their
21capacity as a personal assistant. The agreement shall address
22the employment or independent contractor relationship terms,
23including without limitation supervision, duties,
24compensation, and termination.
25 (e) Notwithstanding the fact that a sponsoring broker has
26an employment or independent contractor agreement with a

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1licensee, a sponsoring broker may pay compensation directly to
2a business entity solely owned by that licensee that has been
3formed for the purpose of receiving compensation earned by the
4licensee. A business entity that receives compensation from a
5sponsoring broker as provided for formed for the purpose stated
6in this subsection (e) shall not be required to be licensed
7under this Act and must either be owned solely by the licensee
8or by the licensee together with the licensee's spouse, but
9only if the spouse and licensee are both licensed and sponsored
10by the same sponsoring broker or the spouse is not also
11licensed so long as the person that is the sole owner of the
12business entity is licensed.
13(Source: P.A. 100-831, eff. 1-1-19.)
14 (225 ILCS 454/10-30)
15 (Section scheduled to be repealed on January 1, 2020)
16 Sec. 10-30. Advertising.
17 (a) No advertising, whether in print, via the Internet, or
18through social media, digital forums, or any other media, shall
19be fraudulent, deceptive, inherently misleading, or proven to
20be misleading in practice. Advertising shall be considered
21misleading or untruthful if, when taken as a whole, there is a
22distinct and reasonable possibility that it will be
23misunderstood or will deceive the ordinary consumer purchaser,
24seller, lessee, lessor, or owner. Advertising shall contain all
25information necessary to communicate the information contained

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1therein to the public in an accurate, direct, and readily
2comprehensible manner. Team names may not contain inherently
3misleading terms, such as "company", "realty", "real estate",
4"agency", "associates", "brokers", "properties", or
5"property".
6 (b) No blind advertisements may be used by any licensee, in
7any media, except as provided for in this Section.
8 (c) A licensee shall disclose, in writing, to all parties
9in a transaction his or her status as a licensee and any and
10all interest the licensee has or may have in the real estate
11constituting the subject matter thereof, directly or
12indirectly, according to the following guidelines:
13 (1) On broker yard signs or in broker advertisements,
14 no disclosure of ownership is necessary. However, the
15 ownership shall be indicated on any property data form
16 accessible to the consumer and disclosed to persons
17 responding to any advertisement or any sign. The term
18 "broker owned" or "agent owned" is sufficient disclosure.
19 (2) A sponsored or inactive inoperative licensee
20 selling or leasing property, owned solely by the sponsored
21 or inactive inoperative licensee, without utilizing
22 brokerage services of their sponsoring broker or any other
23 licensee, may advertise "By Owner". For purposes of this
24 Section, property is "solely owned" by a sponsored or
25 inactive inoperative licensee if he or she (i) has a 100%
26 ownership interest alone, (ii) has ownership as a joint

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1 tenant or tenant by the entirety, or (iii) holds a 100%
2 beneficial interest in a land trust. Sponsored or inactive
3 inoperative licensees selling or leasing "By Owner" shall
4 comply with the following if advertising by owner:
5 (A) On "By Owner" yard signs, the sponsored or
6 inactive inoperative licensee shall indicate "broker
7 owned" or "agent owned." "By Owner" advertisements
8 used in any medium of advertising shall include the
9 term "broker owned" or "agent owned."
10 (B) If a sponsored or inactive inoperative
11 licensee runs advertisements, for the purpose of
12 purchasing or leasing real estate, he or she shall
13 disclose in the advertisements his or her status as a
14 licensee.
15 (C) A sponsored or inactive inoperative licensee
16 shall not use the sponsoring broker's name or the
17 sponsoring broker's company name in connection with
18 the sale, lease, or advertisement of the property nor
19 utilize the sponsoring broker's or company's name in
20 connection with the sale, lease, or advertising of the
21 property in a manner likely to create confusion among
22 the public as to whether or not the services of a real
23 estate company are being utilized or whether or not a
24 real estate company has an ownership interest in the
25 property.
26 (d) A sponsored licensee may not advertise under his or her

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1own name. Advertising in any media shall be under the direct
2supervision of the sponsoring or designated managing broker and
3in the sponsoring broker's business name, which in the case of
4a franchise shall include the franchise affiliation as well as
5the name of the individual firm. This provision does not apply
6under the following circumstances:
7 (1) When a licensee enters into a brokerage agreement
8 relating to his or her own real estate, or real estate in
9 which he or she has an ownership interest, with another
10 licensed broker; or
11 (2) When a licensee is selling or leasing his or her
12 own real estate or buying or leasing real estate for
13 himself or herself, after providing the appropriate
14 written disclosure of his or her ownership interest as
15 required in paragraph (2) of subsection (c) of this
16 Section.
17 (e) No licensee shall list his or her name under the
18heading or title "Real Estate" in the telephone directory or
19otherwise advertise in his or her own name to the general
20public through any medium of advertising as being in the real
21estate business without listing his or her sponsoring broker's
22business name.
23 (f) The sponsoring broker's business name and the name of
24the licensee must appear in all advertisements, including
25business cards. In advertising that includes the sponsoring
26broker's name and a team name or individual broker's name, the

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1sponsoring broker's business name shall be at least equal in
2size or larger than the team name or that of the individual.
3Nothing in this Act shall be construed to require specific
4print size as between the broker's business name and the name
5of the licensee.
6 (g) Those individuals licensed as a managing broker and
7designated with the Department as a designated managing broker
8by their sponsoring broker shall identify themselves to the
9public in advertising, except on "For Sale" or similar signs,
10as a designated managing broker. No other individuals holding a
11managing broker's license may hold themselves out to the public
12or other licensees as a designated managing broker, but they
13may hold themselves out to be a managing broker.
14(Source: P.A. 96-856, eff. 12-31-09; 97-1002, eff. 8-17-12.)
15 (225 ILCS 454/10-35)
16 (Section scheduled to be repealed on January 1, 2020)
17 Sec. 10-35. Internet and related advertising.
18 (a) Licensees intending to sell or share consumer
19information gathered from or through the Internet or other
20electronic communication media, including, but not limited to,
21social media and digital forums, shall disclose that intention
22to consumers in a timely and readily apparent manner.
23 (b) A licensee using Internet or other similar electronic
24advertising media must not:
25 (1) use a URL or domain name that is deceptive or

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1 misleading;
2 (2) deceptively or without authorization frame another
3 sponsoring broker's real estate brokerage or multiple
4 listing service website; or
5 (3) engage in phishing or the deceptive use of
6 metatags, keywords or other devices and methods to direct,
7 drive or divert Internet traffic or otherwise mislead
8 consumers.
9(Source: P.A. 96-856, eff. 12-31-09.)
10 (225 ILCS 454/10-50 new)
11 Sec. 10-50. Guaranteed sales plans.
12 (a) As used in this Section, a "guaranteed sales plan"
13means a real estate purchase or sales plan whereby a licensee
14enters into one or more conditional or unconditional written
15contracts with a seller, one of which is a brokerage agreement,
16and wherein the person agrees to purchase the seller's property
17within a specified period of time, at a specific price, in the
18event the property is not sold in accordance with the terms of
19a brokerage agreement to be entered into between the sponsoring
20broker and the seller.
21 (b) A person who offers a guaranteed sales plan to
22consumers is engaged in licensed activity under this Act and is
23required to have a license.
24 (c) A licensee offering a guaranteed sales plan shall
25provide the details, including the purchase price, and

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1conditions of the plan, in writing to the party to whom the
2plan is offered prior to entering into the brokerage agreement.
3 (d) A licensee offering a guaranteed sales plan shall
4provide to the party to whom the plan is offered evidence of
5sufficient financial resources to satisfy the commitment to
6purchase undertaken by the broker in the plan.
7 (e) A licensee offering a guaranteed sales plan shall
8undertake to market the property of the seller subject to the
9plan in the same manner in which the broker would market any
10other property, unless the agreement with the seller provides
11otherwise.
12 (f) The licensee may not purchase seller's property until
13the period for offering the property for sale has ended
14according to its terms or is otherwise terminated.
15 (g) Any licensee who fails to perform on a guaranteed sales
16plan in strict accordance with its terms shall be subject to
17all the penalties provided in this Act for violations thereof
18and, in addition, shall be subject to a civil fine payable to
19the party injured by the default in an amount of up to $25,000.
20 (225 ILCS 454/10-55 new)
21 Sec. 10-55. Designated managing broker responsibility and
22supervision.
23 (a) A designated managing broker shall be responsible for
24the supervision of all licensees associated with a designated
25managing broker's office. A designated managing broker's

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1responsibilities include implementation of company policies,
2the training of licensees and other employees on the company's
3policies as well as on relevant provisions of this Act, and
4providing assistance to all licensees in real estate
5transactions. The designated managing broker shall be
6responsible for, and shall supervise, all special accounts of
7the company.
8 (b) A designated managing broker's responsibilities shall
9further include directly handling all earnest money, escrows,
10and contract negotiations for all transactions where the
11designated agent for the transaction has not completed his or
12her 45 hours of post-license education, as well as the approval
13of all advertisements involving a licensee who has not
14completed his or her 45 hours of post-license education.
15Licensees that have not completed their 45 hours of
16post-license education shall have no authority to bind the
17sponsoring broker.
18 (225 ILCS 454/15-5)
19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 15-5. Legislative intent.
21 (a) The General Assembly finds that application of the
22common law of agency to the relationships among licensees under
23this Act managing brokers and brokers and consumers of real
24estate brokerage services has resulted in misunderstandings
25and consequences that have been contrary to the best interests

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1of the public. The General Assembly further finds that the real
2estate brokerage industry has a significant impact upon the
3economy of the State of Illinois and that it is in the best
4interest of the public to provide codification of the
5relationships between licensees under this Act managing
6brokers and brokers and consumers of real estate brokerage
7services in order to prevent detrimental misunderstandings and
8misinterpretations of the relationships by consumers, managing
9brokers, and brokers and thus promote and provide stability in
10the real estate market. This Article 15 is enacted to govern
11the relationships between consumers of real estate brokerage
12services and licensees under this Act managing brokers and
13brokers to the extent not governed by an individual written
14agreement between a sponsoring broker and a consumer, providing
15that there is a relationship other than designated agency. This
16Article 15 applies to the exclusion of the common law concepts
17of principal and agent and to the fiduciary duties, which have
18been applied to managing brokers, brokers, and real estate
19brokerage services.
20 (b) The General Assembly further finds that this Article 15
21is not intended to prescribe or affect contractual
22relationships between managing brokers and brokers and the
23broker's affiliated licensees.
24 (c) This Article 15 may serve as a basis for private rights
25of action and defenses by sellers, buyers, landlords, tenants,
26managing brokers, and brokers. The private rights of action,

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1however, do not extend to the provisions of any other Articles
2of this Act.
3(Source: P.A. 99-227, eff. 8-3-15.)
4 (225 ILCS 454/15-10)
5 (Section scheduled to be repealed on January 1, 2020)
6 Sec. 15-10. Relationships between licensees and consumers.
7Licensees shall be considered to be representing the consumer
8they are working with as a designated agent for the consumer
9unless there is a written agreement between the sponsoring
10broker and the consumer providing that there is a different
11relationship. :
12 (1) there is a written agreement between the sponsoring
13 broker and the consumer providing that there is a different
14 relationship; or
15 (2) the licensee is performing only ministerial acts on
16 behalf of the consumer.
17(Source: P.A. 91-245, eff. 12-31-99.)
18 (225 ILCS 454/15-15)
19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 15-15. Duties of licensees representing clients.
21 (a) A licensee representing a client shall:
22 (1) Perform the terms of the brokerage agreement
23 between a broker and the client.
24 (2) Promote the best interest of the client by:

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1 (A) Seeking a transaction at the price and terms
2 stated in the brokerage agreement or at a price and
3 terms otherwise acceptable to the client.
4 (B) Timely presenting all offers to and from the
5 client, unless the client has waived this duty.
6 (C) Disclosing to the client material facts
7 concerning the transaction of which the licensee has
8 actual knowledge, unless that information is
9 confidential information. Material facts do not
10 include the following when located on or related to
11 real estate that is not the subject of the transaction:
12 (i) physical conditions that do not have a substantial
13 adverse effect on the value of the real estate, (ii)
14 fact situations, or (iii) occurrences and acts at the
15 property.
16 (D) Timely accounting for all money and property
17 received in which the client has, may have, or should
18 have had an interest.
19 (E) Obeying specific directions of the client that
20 are not otherwise contrary to applicable statutes,
21 ordinances, or rules.
22 (F) Acting in a manner consistent with promoting
23 the client's best interests as opposed to a licensee's
24 or any other person's self-interest.
25 (3) Exercise reasonable skill and care in the
26 performance of brokerage services.

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1 (4) Keep confidential all confidential information
2 received from the client.
3 (5) Comply with all requirements of this Act and all
4 applicable statutes and regulations, including without
5 limitation fair housing and civil rights statutes.
6 (b) A licensee representing a client does not breach a duty
7or obligation to the client by showing alternative properties
8to prospective buyers or tenants, by showing properties in
9which the client is interested to other prospective buyers or
10tenants, or by making or preparing contemporaneous offers or
11contracts to purchase or lease the same property. However, a
12licensee shall provide written disclosure to all clients for
13whom the licensee is preparing or making contemporaneous offers
14or contracts to purchase or lease the same property and shall
15refer to another designated agent any client that requests such
16referral.
17 (c) A licensee representing a buyer or tenant client will
18not be presumed to have breached a duty or obligation to that
19client by working on the basis that the licensee will receive a
20higher fee or compensation based on higher selling price or
21lease cost.
22 (d) A licensee shall not be liable to a client for
23providing false information to the client if the false
24information was provided to the licensee by a customer unless
25the licensee knew or should have known the information was
26false.

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1 (e) Nothing in the Section shall be construed as changing a
2licensee's duty under common law as to negligent or fraudulent
3misrepresentation of material information.
4(Source: P.A. 96-856, eff. 12-31-09.)
5 (225 ILCS 454/15-25)
6 (Section scheduled to be repealed on January 1, 2020)
7 Sec. 15-25. Licensee's relationship with customers. (a)
8Licensees shall treat all customers honestly and shall not
9negligently or knowingly give them false information. A
10licensee engaged by a seller client shall timely disclose to
11customers who are prospective buyers all latent material
12adverse facts pertaining to the physical condition of the
13property that are actually known by the licensee and that could
14not be discovered by a reasonably diligent inspection of the
15property by the customer. A licensee shall not be liable to a
16customer for providing false information to the customer if the
17false information was provided to the licensee by the
18licensee's client and the licensee did not have actual
19knowledge that the information was false. No cause of action
20shall arise on behalf of any person against a licensee for
21revealing information in compliance with this Section.
22 (b) A licensee representing a client in a real estate
23transaction may provide assistance to a customer by performing
24ministerial acts. Performing those ministerial acts shall not
25be construed in a manner that would violate the brokerage

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1agreement with the client, and performing those ministerial
2acts for the customer shall not be construed in a manner as to
3form a brokerage agreement with the customer.
4(Source: P.A. 91-245, eff. 12-31-99.)
5 (225 ILCS 454/15-35)
6 (Section scheduled to be repealed on January 1, 2020)
7 Sec. 15-35. Agency relationship disclosure.
8 (a) A licensee acting as a designated agent shall advise a
9consumer in writing, no later than beginning to work as a
10designated agent on behalf of the consumer, of the following no
11later than beginning to work as a designated agent on behalf of
12the consumer:
13 (1) That a designated agency relationship exists,
14 unless there is written agreement between the sponsoring
15 broker and the consumer providing for a different agency
16 brokerage relationship; and .
17 (2) The name or names of his or her designated agent or
18 agents on the written disclosure, which can be included in
19 a brokerage agreement or be a separate document, a copy of
20 which is retained by the real estate brokerage firm for the
21 licensee. The written disclosure can be included in a
22 brokerage agreement or be a separate document, a copy of
23 which is retained by the sponsoring broker for the
24 licensee.
25 (b) The licensee representing the consumer shall discuss

SB1872 Enrolled- 80 -LRB101 07705 RJF 52753 b
1with the consumer the sponsoring broker's compensation and
2policy with regard to cooperating with brokers who represent
3other parties in a transaction.
4 (c) A licensee shall disclose in writing to a customer that
5the licensee is not acting as the agent of the customer at a
6time intended to prevent disclosure of confidential
7information from a customer to a licensee, but in no event
8later than the preparation of an offer to purchase or lease
9real property.
10(Source: P.A. 96-856, eff. 12-31-09.)
11 (225 ILCS 454/15-45)
12 (Section scheduled to be repealed on January 1, 2020)
13 Sec. 15-45. Dual agency.
14 (a) An individual A licensee may act as a dual agent or a
15sponsoring broker may permit one or more of its sponsored
16licensees to act as dual agents in the same transaction only
17with the informed written consent of all clients. Informed
18written consent shall be presumed to have been given by any
19client who signs a document that includes the following:
20 "The undersigned (insert name(s)), ("Licensee"), may
21 undertake a dual representation (represent both the seller
22 or landlord and the buyer or tenant) for the sale or lease
23 of property. The undersigned acknowledge they were
24 informed of the possibility of this type of representation.
25 Before signing this document please read the following:

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1 Representing more than one party to a transaction presents
2 a conflict of interest since both clients may rely upon
3 Licensee's advice and the client's respective interests
4 may be adverse to each other. Licensee will undertake this
5 representation only with the written consent of ALL clients
6 in the transaction. Any agreement between the clients as to
7 a final contract price and other terms is a result of
8 negotiations between the clients acting in their own best
9 interests and on their own behalf. You acknowledge that
10 Licensee has explained the implications of dual
11 representation, including the risks involved, and
12 understand that you have been advised to seek independent
13 advice from your advisors or attorneys before signing any
14 documents in this transaction.
15
WHAT A LICENSEE CAN DO FOR CLIENTS
16
WHEN ACTING AS A DUAL AGENT
17 1. Treat all clients honestly.
18 2. Provide information about the property to the buyer or
19 tenant.
20 3. Disclose all latent material defects in the property
21 that are known to the Licensee.
22 4. Disclose financial qualification of the buyer or tenant
23 to the seller or landlord.
24 5. Explain real estate terms.
25 6. Help the buyer or tenant to arrange for property
26 inspections.

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1 7. Explain closing costs and procedures.
2 8. Help the buyer compare financing alternatives.
3 9. Provide information about comparable properties that
4 have sold so both clients may make educated decisions on
5 what price to accept or offer.
6
WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
7
ACTING AS A DUAL AGENT
8 1. Confidential information that Licensee may know about a
9 client, without that client's permission.
10 2. The price or terms the seller or landlord will take
11 other than the listing price without permission of the
12 seller or landlord.
13 3. The price or terms the buyer or tenant is willing to pay
14 without permission of the buyer or tenant.
15 4. A recommended or suggested price or terms the buyer or
16 tenant should offer.
17 5. A recommended or suggested price or terms the seller or
18 landlord should counter with or accept.
19 If either client is uncomfortable with this disclosure
20 and dual representation, please let Licensee know. You are
21 not required to sign this document unless you want to allow
22 Licensee to proceed as a Dual Agent in this transaction. By
23 signing below, you acknowledge that you have read and
24 understand this form and voluntarily consent to Licensee
25 acting as a Dual Agent (that is, to represent BOTH the
26 seller or landlord and the buyer or tenant) should that

SB1872 Enrolled- 83 -LRB101 07705 RJF 52753 b
1 become necessary."
2 (b) The dual agency disclosure form provided for in
3subsection (a) of this Section must be presented by a licensee,
4who offers dual representation, to the client at the time the
5brokerage agreement is entered into and may be signed by the
6client at that time or at any time before the licensee acts as
7a dual agent as to the client.
8 (c) A licensee acting in a dual agency capacity in a
9transaction must obtain a written confirmation from the
10licensee's clients of their prior consent for the licensee to
11act as a dual agent in the transaction. This confirmation
12should be obtained at the time the clients are executing any
13offer or contract to purchase or lease in a transaction in
14which the licensee is acting as a dual agent. This confirmation
15may be included in another document, such as a contract to
16purchase, in which case the client must not only sign the
17document but also initial the confirmation of dual agency
18provision. That confirmation must state, at a minimum, the
19following:
20 "The undersigned confirm that they have previously
21 consented to (insert name(s)), ("Licensee"), acting as a
22 Dual Agent in providing brokerage services on their behalf
23 and specifically consent to Licensee acting as a Dual Agent
24 in regard to the transaction referred to in this document."
25 (d) No cause of action shall arise on behalf of any person
26against a dual agent for making disclosures allowed or required

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1by this Article, and the dual agent does not terminate any
2agency relationship by making the allowed or required
3disclosures.
4 (e) In the case of dual agency, each client and the
5licensee possess only actual knowledge and information. There
6shall be no imputation of knowledge or information among or
7between clients, brokers, or their affiliated licensees.
8 (f) In any transaction, a licensee may without liability
9withdraw from representing a client who has not consented to a
10disclosed dual agency. The withdrawal shall not prejudice the
11ability of the licensee to continue to represent the other
12client in the transaction or limit the licensee from
13representing the client in other transactions. When a
14withdrawal as contemplated in this subsection (f) occurs, the
15licensee shall not receive a referral fee for referring a
16client to another licensee unless written disclosure is made to
17both the withdrawing client and the client that continues to be
18represented by the licensee.
19(Source: P.A. 96-856, eff. 12-31-09.)
20 (225 ILCS 454/15-50)
21 (Section scheduled to be repealed on January 1, 2020)
22 Sec. 15-50. Designated agency.
23 (a) A sponsoring broker entering into an agreement with any
24person for the listing of property or for the purpose of
25representing any person in the buying, selling, exchanging,

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1renting, or leasing of real estate shall may specifically
2designate those licensees employed by or affiliated with the
3sponsoring broker who will be acting as legal agents of that
4person to the exclusion of all other licensees employed by or
5affiliated with the sponsoring broker. A sponsoring broker
6entering into an agreement under the provisions of this Section
7shall not be considered to be acting for more than one party in
8a transaction if the licensees specifically designated as legal
9agents of a person are not representing more than one party in
10a transaction.
11 (b) A sponsoring broker designating affiliated licensees
12to act as agents of clients shall take ordinary and necessary
13care to protect confidential information disclosed by a client
14to his or her designated agent.
15 (c) A designated agent may disclose to his or her
16sponsoring broker or persons specified by the sponsoring broker
17confidential information of a client for the purpose of seeking
18advice or assistance for the benefit of the client in regard to
19a possible transaction. Confidential information shall not be
20disclosed by the sponsoring broker or other specified
21representative of the sponsoring broker unless otherwise
22required by this Act or requested or permitted by the client
23who originally disclosed the confidential information.
24(Source: P.A. 91-245, eff. 12-31-99.)
25 (225 ILCS 454/15-65)

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1 (Section scheduled to be repealed on January 1, 2020)
2 Sec. 15-65. Regulatory enforcement. Nothing contained in
3this Article limits the Department in its regulation of
4licensees under other Articles of this Act and the substantive
5rules adopted by the Department. The Department, with the
6advice of the Board, is authorized to adopt promulgate any
7rules that may be necessary for the implementation and
8enforcement of this Article 15.
9(Source: P.A. 96-856, eff. 12-31-09.)
10 (225 ILCS 454/15-75)
11 (Section scheduled to be repealed on January 1, 2020)
12 Sec. 15-75. Exclusive brokerage agreements. All exclusive
13brokerage agreements must be in writing and specify that the
14sponsoring broker, through one or more sponsored licensees,
15must provide, at a minimum, the following services:
16 (1) accept delivery of and present to the client offers
17 and counteroffers to buy, sell, or lease the client's
18 property or the property the client seeks to purchase or
19 lease;
20 (2) assist the client in developing, communicating,
21 negotiating, and presenting offers, counteroffers, and
22 notices that relate to the offers and counteroffers until a
23 lease or purchase agreement is signed and all contingencies
24 are satisfied or waived; and
25 (3) answer the client's questions relating to the

SB1872 Enrolled- 87 -LRB101 07705 RJF 52753 b
1 offers, counteroffers, notices, and contingencies.
2(Source: P.A. 93-957, eff. 8-19-04.)
3 (225 ILCS 454/20-5)
4 (Section scheduled to be repealed on January 1, 2020)
5 Sec. 20-5. Index of decisions. The Department shall
6maintain an index of formal decisions regarding the issuance,
7refusal to issue, renewal, refusal to renew, revocation, and
8suspension of licenses and probationary or other disciplinary
9action taken under this Act on or after December 31, 1999. The
10index shall be available to the public during regular business
11hours.
12(Source: P.A. 96-856, eff. 12-31-09.)
13 (225 ILCS 454/20-10)
14 (Section scheduled to be repealed on January 1, 2020)
15 Sec. 20-10. Unlicensed practice; civil penalty.
16 (a) Any person who practices, offers to practice, attempts
17to practice, or holds oneself out to practice as a managing
18broker, broker, or residential leasing agent without being
19licensed under this Act shall, in addition to any other penalty
20provided by law, pay a civil penalty to the Department in an
21amount not to exceed $25,000 for each offense as determined by
22the Department. The civil penalty shall be assessed by the
23Department after a hearing is held in accordance with the
24provisions set forth in this Act regarding the provision of a

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1hearing for the discipline of a license.
2 (b) The Department has the authority and power to
3investigate any and all unlicensed activity.
4 (c) The civil penalty shall be paid within 60 days after
5the effective date of the order imposing the civil penalty. The
6order shall constitute a judgment and may be filed and
7execution had thereon in the same manner from any court of
8record.
9(Source: P.A. 99-227, eff. 8-3-15.)
10 (225 ILCS 454/20-15)
11 (Section scheduled to be repealed on January 1, 2020)
12 Sec. 20-15. Violations. The commission of a single act
13prohibited by this Act or prohibited by the rules adopted
14promulgated under this Act or a violation of a disciplinary
15order issued under this Act constitutes a violation of this
16Act.
17(Source: P.A. 91-245, eff. 12-31-99.)
18 (225 ILCS 454/20-20)
19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 20-20. Nature of and grounds Grounds for discipline.
21 (a) The Department may refuse to issue or renew a license,
22may place on probation, suspend, or revoke any license,
23reprimand, or take any other disciplinary or non-disciplinary
24action as the Department may deem proper and impose a fine not

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1to exceed $25,000 upon any licensee or applicant under this Act
2or any person who holds himself or herself out as an applicant
3or licensee or against a licensee in handling his or her own
4property, whether held by deed, option, or otherwise, for any
5one or any combination of the following causes:
6 (1) Fraud or misrepresentation in applying for, or
7 procuring, a license under this Act or in connection with
8 applying for renewal of a license under this Act.
9 (2) The licensee's conviction of or plea of guilty or
10 plea of nolo contendere to: (A) a felony or misdemeanor in
11 this State or any other jurisdiction; or (B) the entry of
12 an administrative sanction by a government agency in this
13 State or any other jurisdiction. Action taken under this
14 paragraph (2) for a misdemeanor or an administrative
15 sanction is limited to a misdemeanor or administrative
16 sanction that has as an essential element dishonesty or
17 fraud or involves larceny, embezzlement, or obtaining
18 money, property, or credit by false pretenses or by means
19 of a confidence game.
20 (3) Inability to practice the profession with
21 reasonable judgment, skill, or safety as a result of a
22 physical illness, including, but not limited to,
23 deterioration through the aging process or loss of motor
24 skill, or a mental illness or disability.
25 (4) Practice under this Act as a licensee in a retail
26 sales establishment from an office, desk, or space that is

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1 not separated from the main retail business and located
2 within by a separate and distinct area within the
3 establishment.
4 (5) Having been disciplined by another state, the
5 District of Columbia, a territory, a foreign nation, or a
6 governmental agency authorized to impose discipline if at
7 least one of the grounds for that discipline is the same as
8 or the equivalent of one of the grounds for which a
9 licensee may be disciplined under this Act. A certified
10 copy of the record of the action by the other state or
11 jurisdiction shall be prima facie evidence thereof.
12 (6) Engaging in the practice of real estate brokerage
13 without a license or after the licensee's license or
14 temporary permit was expired or while the license was
15 inactive, revoked, or suspended inoperative.
16 (7) Cheating on or attempting to subvert the Real
17 Estate License Exam or a continuing education course or
18 examination exam.
19 (8) Aiding or abetting an applicant to subvert or cheat
20 on the Real Estate License Exam or continuing education
21 exam administered pursuant to this Act.
22 (9) Advertising that is inaccurate, misleading, or
23 contrary to the provisions of the Act.
24 (10) Making any substantial misrepresentation or
25 untruthful advertising.
26 (11) Making any false promises of a character likely to

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1 influence, persuade, or induce.
2 (12) Pursuing a continued and flagrant course of
3 misrepresentation or the making of false promises through
4 licensees, employees, agents, advertising, or otherwise.
5 (13) Any misleading or untruthful advertising, or
6 using any trade name or insignia of membership in any real
7 estate organization of which the licensee is not a member.
8 (14) Acting for more than one party in a transaction
9 without providing written notice to all parties for whom
10 the licensee acts.
11 (15) Representing or attempting to represent, or
12 performing licensed activities for, a broker other than the
13 sponsoring broker.
14 (16) Failure to account for or to remit any moneys or
15 documents coming into his or her possession that belong to
16 others.
17 (17) Failure to maintain and deposit in a special
18 account, separate and apart from personal and other
19 business accounts, all escrow moneys belonging to others
20 entrusted to a licensee while acting as a broker, escrow
21 agent, or temporary custodian of the funds of others or
22 failure to maintain all escrow moneys on deposit in the
23 account until the transactions are consummated or
24 terminated, except to the extent that the moneys, or any
25 part thereof, shall be:
26 (A) disbursed prior to the consummation or

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1 termination (i) in accordance with the written
2 direction of the principals to the transaction or their
3 duly authorized agents, (ii) in accordance with
4 directions providing for the release, payment, or
5 distribution of escrow moneys contained in any written
6 contract signed by the principals to the transaction or
7 their duly authorized agents, or (iii) pursuant to an
8 order of a court of competent jurisdiction; or
9 (B) deemed abandoned and transferred to the Office
10 of the State Treasurer to be handled as unclaimed
11 property pursuant to the Revised Uniform Unclaimed
12 Property Act. Escrow moneys may be deemed abandoned
13 under this subparagraph (B) only: (i) in the absence of
14 disbursement under subparagraph (A); (ii) in the
15 absence of notice of the filing of any claim in a court
16 of competent jurisdiction; and (iii) if 6 months have
17 elapsed after the receipt of a written demand for the
18 escrow moneys from one of the principals to the
19 transaction or the principal's duly authorized agent.
20 The account shall be noninterest bearing, unless the
21 character of the deposit is such that payment of interest
22 thereon is otherwise required by law or unless the
23 principals to the transaction specifically require, in
24 writing, that the deposit be placed in an interest-bearing
25 interest bearing account.
26 (18) Failure to make available to the Department all

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1 escrow records and related documents maintained in
2 connection with the practice of real estate within 24 hours
3 of a request for those documents by Department personnel.
4 (19) Failing to furnish copies upon request of
5 documents relating to a real estate transaction to a party
6 who has executed that document.
7 (20) Failure of a sponsoring broker or licensee to
8 timely provide sponsorship or termination of sponsorship
9 information, sponsor cards, or termination of licenses to
10 the Department.
11 (21) Engaging in dishonorable, unethical, or
12 unprofessional conduct of a character likely to deceive,
13 defraud, or harm the public, including, but not limited to,
14 conduct set forth in rules adopted by the Department.
15 (22) Commingling the money or property of others with
16 his or her own money or property.
17 (23) Employing any person on a purely temporary or
18 single deal basis as a means of evading the law regarding
19 payment of commission to nonlicensees on some contemplated
20 transactions.
21 (24) Permitting the use of his or her license as a
22 broker to enable a residential leasing agent or unlicensed
23 person to operate a real estate business without actual
24 participation therein and control thereof by the broker.
25 (25) Any other conduct, whether of the same or a
26 different character from that specified in this Section,

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1 that constitutes dishonest dealing.
2 (26) Displaying a "for rent" or "for sale" sign on any
3 property without the written consent of an owner or his or
4 her duly authorized agent or advertising by any means that
5 any property is for sale or for rent without the written
6 consent of the owner or his or her authorized agent.
7 (27) Failing to provide information requested by the
8 Department, or otherwise respond to that request, within 30
9 days of the request.
10 (28) Advertising by means of a blind advertisement,
11 except as otherwise permitted in Section 10-30 of this Act.
12 (29) A licensee under this Act or an unlicensed
13 individual offering Offering guaranteed sales plans, as
14 defined in Section 10-50 clause (A) of this subdivision
15 (29), except to the extent hereinafter set forth in Section
16 10-50. :
17 (A) A "guaranteed sales plan" is any real estate
18 purchase or sales plan whereby a licensee enters into a
19 conditional or unconditional written contract with a
20 seller, prior to entering into a brokerage agreement
21 with the seller, by the terms of which a licensee
22 agrees to purchase a property of the seller within a
23 specified period of time at a specific price in the
24 event the property is not sold in accordance with the
25 terms of a brokerage agreement to be entered into
26 between the sponsoring broker and the seller.

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1 (B) A licensee offering a guaranteed sales plan
2 shall provide the details and conditions of the plan in
3 writing to the party to whom the plan is offered.
4 (C) A licensee offering a guaranteed sales plan
5 shall provide to the party to whom the plan is offered
6 evidence of sufficient financial resources to satisfy
7 the commitment to purchase undertaken by the broker in
8 the plan.
9 (D) Any licensee offering a guaranteed sales plan
10 shall undertake to market the property of the seller
11 subject to the plan in the same manner in which the
12 broker would market any other property, unless the
13 agreement with the seller provides otherwise.
14 (E) The licensee cannot purchase seller's property
15 until the brokerage agreement has ended according to
16 its terms or is otherwise terminated.
17 (F) Any licensee who fails to perform on a
18 guaranteed sales plan in strict accordance with its
19 terms shall be subject to all the penalties provided in
20 this Act for violations thereof and, in addition, shall
21 be subject to a civil fine payable to the party injured
22 by the default in an amount of up to $25,000.
23 (30) Influencing or attempting to influence, by any
24 words or acts, a prospective seller, purchaser, occupant,
25 landlord, or tenant of real estate, in connection with
26 viewing, buying, or leasing real estate, so as to promote

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1 or tend to promote the continuance or maintenance of
2 racially and religiously segregated housing or so as to
3 retard, obstruct, or discourage racially integrated
4 housing on or in any street, block, neighborhood, or
5 community.
6 (31) Engaging in any act that constitutes a violation
7 of any provision of Article 3 of the Illinois Human Rights
8 Act, whether or not a complaint has been filed with or
9 adjudicated by the Human Rights Commission.
10 (32) Inducing any party to a contract of sale or lease
11 or brokerage agreement to break the contract of sale or
12 lease or brokerage agreement for the purpose of
13 substituting, in lieu thereof, a new contract for sale or
14 lease or brokerage agreement with a third party.
15 (33) Negotiating a sale, exchange, or lease of real
16 estate directly with any person if the licensee knows that
17 the person has an exclusive brokerage agreement with
18 another broker, unless specifically authorized by that
19 broker.
20 (34) When a licensee is also an attorney, acting as the
21 attorney for either the buyer or the seller in the same
22 transaction in which the licensee is acting or has acted as
23 a managing broker or broker.
24 (35) Advertising or offering merchandise or services
25 as free if any conditions or obligations necessary for
26 receiving the merchandise or services are not disclosed in

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1 the same advertisement or offer. These conditions or
2 obligations include without limitation the requirement
3 that the recipient attend a promotional activity or visit a
4 real estate site. As used in this subdivision (35), "free"
5 includes terms such as "award", "prize", "no charge", "free
6 of charge", "without charge", and similar words or phrases
7 that reasonably lead a person to believe that he or she may
8 receive or has been selected to receive something of value,
9 without any conditions or obligations on the part of the
10 recipient.
11 (36) (Blank).
12 (37) Violating the terms of a disciplinary order issued
13 by the Department.
14 (38) Paying or failing to disclose compensation in
15 violation of Article 10 of this Act.
16 (39) Requiring a party to a transaction who is not a
17 client of the licensee to allow the licensee to retain a
18 portion of the escrow moneys for payment of the licensee's
19 commission or expenses as a condition for release of the
20 escrow moneys to that party.
21 (40) Disregarding or violating any provision of this
22 Act or the published rules adopted by the Department to
23 enforce this Act or aiding or abetting any individual,
24 foreign or domestic partnership, registered limited
25 liability partnership, limited liability company,
26 corporation, or other business entity in disregarding any

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1 provision of this Act or the published rules adopted by the
2 Department to enforce this Act.
3 (41) Failing to provide the minimum services required
4 by Section 15-75 of this Act when acting under an exclusive
5 brokerage agreement.
6 (42) Habitual or excessive use of or addiction to
7 alcohol, narcotics, stimulants, or any other chemical
8 agent or drug that results in a managing broker, broker, or
9 residential leasing agent's inability to practice with
10 reasonable skill or safety.
11 (43) Enabling, aiding, or abetting an auctioneer, as
12 defined in the Auction License Act, to conduct a real
13 estate auction in a manner that is in violation of this
14 Act.
15 (44) Permitting any residential leasing agent or
16 temporary residential leasing agent permit holder to
17 engage in activities that require a broker's or managing
18 broker's license.
19 (45) Failing to notify the Department of any criminal
20 conviction that occurs during the licensee's term of
21 licensure within 30 days after the conviction.
22 (46) A designated managing broker's failure to provide
23 an appropriate written company policy or failure to perform
24 any of the duties set forth in Section 10-55.
25 (b) The Department may refuse to issue or renew or may
26suspend the license of any person who fails to file a return,

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1pay the tax, penalty or interest shown in a filed return, or
2pay any final assessment of tax, penalty, or interest, as
3required by any tax Act administered by the Department of
4Revenue, until such time as the requirements of that tax Act
5are satisfied in accordance with subsection (g) of Section
62105-15 of the Department of Professional Regulation Law of the
7Civil Administrative Code of Illinois.
8 (c) (Blank).
9 (d) In cases where the Department of Healthcare and Family
10Services (formerly Department of Public Aid) has previously
11determined that a licensee or a potential licensee is more than
1230 days delinquent in the payment of child support and has
13subsequently certified the delinquency to the Department may
14refuse to issue or renew or may revoke or suspend that person's
15license or may take other disciplinary action against that
16person based solely upon the certification of delinquency made
17by the Department of Healthcare and Family Services in
18accordance with item (5) of subsection (a) of Section 2105-15
19of the Department of Professional Regulation Law of the Civil
20Administrative Code of Illinois.
21 (e) In enforcing this Section, the Department or Board upon
22a showing of a possible violation may compel an individual
23licensed to practice under this Act, or who has applied for
24licensure under this Act, to submit to a mental or physical
25examination, or both, as required by and at the expense of the
26Department. The Department or Board may order the examining

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1physician to present testimony concerning the mental or
2physical examination of the licensee or applicant. No
3information shall be excluded by reason of any common law or
4statutory privilege relating to communications between the
5licensee or applicant and the examining physician. The
6examining physicians shall be specifically designated by the
7Board or Department. The individual to be examined may have, at
8his or her own expense, another physician of his or her choice
9present during all aspects of this examination. Failure of an
10individual to submit to a mental or physical examination, when
11directed, shall be grounds for suspension of his or her license
12until the individual submits to the examination if the
13Department finds, after notice and hearing, that the refusal to
14submit to the examination was without reasonable cause.
15 If the Department or Board finds an individual unable to
16practice because of the reasons set forth in this Section, the
17Department or Board may require that individual to submit to
18care, counseling, or treatment by physicians approved or
19designated by the Department or Board, as a condition, term, or
20restriction for continued, reinstated, or renewed licensure to
21practice; or, in lieu of care, counseling, or treatment, the
22Department may file, or the Board may recommend to the
23Department to file, a complaint to immediately suspend, revoke,
24or otherwise discipline the license of the individual. An
25individual whose license was granted, continued, reinstated,
26renewed, disciplined or supervised subject to such terms,

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1conditions, or restrictions, and who fails to comply with such
2terms, conditions, or restrictions, shall be referred to the
3Secretary for a determination as to whether the individual
4shall have his or her license suspended immediately, pending a
5hearing by the Department.
6 In instances in which the Secretary immediately suspends a
7person's license under this Section, a hearing on that person's
8license must be convened by the Department within 30 days after
9the suspension and completed without appreciable delay. The
10Department and Board shall have the authority to review the
11subject individual's record of treatment and counseling
12regarding the impairment to the extent permitted by applicable
13federal statutes and regulations safeguarding the
14confidentiality of medical records.
15 An individual licensed under this Act and affected under
16this Section shall be afforded an opportunity to demonstrate to
17the Department or Board that he or she can resume practice in
18compliance with acceptable and prevailing standards under the
19provisions of his or her license.
20(Source: P.A. 99-227, eff. 8-3-15; 100-22, eff. 1-1-18;
21100-188, eff. 1-1-18; 100-534, eff. 9-22-17; 100-831, eff.
221-1-19; 100-863, eff. 8-14-18; 100-872, eff. 8-14-18; revised
2310-22-18.)
24 (225 ILCS 454/20-20.1 new)
25 Sec. 20-20.1. Citations.

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1 (a) The Department may adopt rules to permit the issuance
2of citations to any licensee for failure to comply with the
3continuing education requirements set forth in this Act or as
4adopted by rule. The citation shall be issued to the licensee,
5and a copy shall be sent to his or her designated managing
6broker and sponsoring broker. The citation shall contain the
7licensee's name and address, the licensee's license number, the
8number of required hours of continuing education that have not
9been successfully completed by the licensee within the renewal
10period, and the penalty imposed, which shall not exceed $2,000.
11The issuance of any such citation shall not excuse the licensee
12from completing all continuing education required for that
13renewal period.
14 (b) Service of a citation shall be made by in person,
15electronically, or by mail to the licensee at the licensee's
16address of record or email address of record, and must clearly
17state that if the cited licensee wishes to dispute the
18citation, he or she may make a written request, within 30 days
19after the citation is served, for a hearing before the
20Department. If the cited licensee does not request a hearing
21within 30 days after the citation is served, then the citation
22shall become a final, non-disciplinary order, and any fine
23imposed is due and payable within 60 days after that final
24order. If the cited licensee requests a hearing within 30 days
25after the citation is served, the Department shall afford the
26cited licensee a hearing conducted in the same manner as a

SB1872 Enrolled- 103 -LRB101 07705 RJF 52753 b
1hearing provided for in this Act for any violation of this Act
2and shall determine whether the cited licensee committed the
3violation as charged and whether the fine as levied is
4warranted. If the violation is found, any fine shall constitute
5non-public discipline and be due and payable within 30 days
6after the order of the Secretary, which shall constitute a
7final order of the Department. No change in license status may
8be made by the Department until such time as a final order of
9the Department has been issued.
10 (c) Payment of a fine that has been assessed pursuant to
11this Section shall not constitute disciplinary action
12reportable on the Department's website or elsewhere unless a
13licensee has previously received 2 or more citations and paid 2
14or more fines.
15 (d) Nothing in this Section shall prohibit or limit the
16Department from taking further action pursuant to this Act and
17rules for additional, repeated, or continuing violations.
18 (225 ILCS 454/20-21)
19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 20-21. Injunctions; cease and desist order.
21 (a) If any person violates the provisions of this Act, the
22Secretary may, in the name of the People of the State of
23Illinois, through the Attorney General of the State of Illinois
24or the State's Attorney for any county in which the action is
25brought, petition for an order enjoining the violation or for

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1an order enforcing compliance with this Act. Upon the filing of
2a verified petition in court, the court may issue a temporary
3restraining order, without notice or condition, and may
4preliminarily and permanently enjoin the violation. If it is
5established that the person has violated or is violating the
6injunction, the Court may punish the offender for contempt of
7court. Proceedings under this Section shall be in addition to,
8and not in lieu of, all other remedies and penalties provided
9by this Act.
10 (b) If, Whenever in the opinion of the Department, a person
11violates a provision of this Act, the Department may issue a
12ruling to show cause why an order to cease and desist should
13not be entered against that person. The rule shall clearly set
14forth the grounds relied upon by the Department and shall allow
15at least 7 days from the date of the rule to file an answer to
16the satisfaction of the Department. Failure to answer to the
17satisfaction of the Department shall cause an order to cease
18and desist to be issued immediately.
19 (c) Other than as provided in Section 5-20 of this Act, if
20any person practices as a managing broker, broker, or
21residential leasing agent or holds himself or herself out as a
22licensed sponsoring broker, managing broker, broker, or
23residential leasing agent under this Act without being issued a
24valid active existing license by the Department, then any
25licensed sponsoring broker, managing broker, broker,
26residential leasing agent, any interested party, or any person

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1injured thereby may, in addition to the Secretary, petition for
2relief as provided in subsection (a) of this Section.
3(Source: P.A. 99-227, eff. 8-3-15.)
4 (225 ILCS 454/20-22)
5 (Section scheduled to be repealed on January 1, 2020)
6 Sec. 20-22. Violations. Any person who is found working or
7acting as a managing broker, broker, or residential leasing
8agent or holding himself or herself out as a licensed
9sponsoring broker, managing broker, broker, or residential
10leasing agent without being issued a valid active existing
11license is guilty of a Class A misdemeanor and, on conviction
12of a second or subsequent offense, the violator shall be guilty
13of a Class 4 felony.
14(Source: P.A. 99-227, eff. 8-3-15.)
15 (225 ILCS 454/20-25)
16 (Section scheduled to be repealed on January 1, 2020)
17 Sec. 20-25. Returned checks and dishonored credit card
18charges; fees. Any person who (1) delivers a check or other
19payment to the Department that is returned to the Department
20unpaid by the financial institution upon which it is drawn
21shall pay to the Department; or (2) presents a credit or debit
22card for payment that is invalid or expired or against which
23charges by the Department are declined or dishonored, in
24addition to the amount already owed to the Department, a fee of

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1$50. The Department shall notify the person that payment of
2fees and fines shall be paid to the Department by certified
3check or money order within 30 calendar days of the
4notification. If, after the expiration of 30 days from the date
5of the notification, the person has failed to submit the
6necessary remittance, the Department shall automatically
7revoke terminate the license or deny the application, without
8hearing. If, after revocation termination or denial, the person
9seeks a license, he or she shall apply to the Department for
10restoration or issuance of the license and pay all fees and
11fines due to the Department. The Department may establish a fee
12for the processing of an application for restoration of a
13license to pay all expenses of processing this application. The
14Secretary may waive the fees due under this Section in
15individual cases where the Secretary finds that the fees would
16be unreasonable or unnecessarily burdensome.
17(Source: P.A. 96-856, eff. 12-31-09.)
18 (225 ILCS 454/20-60)
19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 20-60. Investigations notice and hearing. The
21Department may investigate the actions of any applicant or of
22any person or persons rendering or offering to render services
23for which a license is required by this Act or any person
24holding or claiming to hold a license under this Act and may
25notify his or her designated managing broker and sponsoring

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1broker of the pending investigation. The Department shall,
2before revoking, suspending, placing on probation,
3reprimanding, or taking any other disciplinary action under
4Article 20 of this Act, at least 30 days before the date set
5for the hearing, (i) notify the accused and his or her
6designated managing broker and sponsoring broker in writing of
7the charges made and the time and place for the hearing on the
8charges and whether the licensee's license has been temporarily
9suspended pursuant to Section 20-65, (ii) direct the accused to
10file a written answer to the charges with the Board under oath
11within 20 days after the service on him or her of the notice,
12and (iii) inform the accused that if he or she fails to answer,
13default will be taken against him or her or that his or her
14license may be suspended, revoked, placed on probationary
15status, or other disciplinary action taken with regard to the
16license, including limiting the scope, nature, or extent of his
17or her practice, as the Department may consider proper. At the
18time and place fixed in the notice, the Board shall proceed to
19hear the charges and the parties or their counsel shall be
20accorded ample opportunity to present any pertinent
21statements, testimony, evidence, and arguments. The Board may
22continue the hearing from time to time. In case the person,
23after receiving the notice, fails to file an answer, his or her
24license may, in the discretion of the Department, be suspended,
25revoked, placed on probationary status, or the Department may
26take whatever disciplinary action considered proper, including

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1limiting the scope, nature, or extent of the person's practice
2or the imposition of a fine, without a hearing, if the act or
3acts charged constitute sufficient grounds for that action
4under this Act. The written notice may be served by personal
5delivery, or by certified mail, or, at the discretion of the
6Department, by electronic means as adopted by rule to the
7address or email address specified by the accused in his or her
8last notification with the Department and shall include notice
9to the designated managing broker and sponsoring broker. A copy
10of the Department's final order shall be delivered to the
11designated managing broker and sponsoring broker.
12(Source: P.A. 100-188, eff. 1-1-18.)
13 (225 ILCS 454/20-64)
14 (Section scheduled to be repealed on January 1, 2020)
15 Sec. 20-64. Board; rehearing. At the conclusion of a
16hearing and following deliberation by the Board, a copy of the
17Board's report shall be served upon the applicant, or licensee,
18or unlicensed person by the Department, either personally or as
19provided in this Act for the service of a notice of hearing.
20Within 20 days after service, the applicant or licensee may
21present to the Department a motion in writing for a rehearing,
22which shall specify the particular grounds for rehearing. The
23Department may respond to the motion, or if a motion for
24rehearing is denied, then upon denial, and except as provided
25in Section 20-72 of this Act, the Secretary may enter an order

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1in accordance with the recommendations of the Board. If the
2applicant or licensee orders from the reporting service and
3pays for a transcript of the record within the time for filing
4a motion for rehearing, then the 20-day period within which a
5motion may be filed shall commence upon the delivery of the
6transcript to the applicant or licensee.
7(Source: P.A. 96-856, eff. 12-31-09.)
8 (225 ILCS 454/20-65)
9 (Section scheduled to be repealed on January 1, 2020)
10 Sec. 20-65. Temporary suspension. The Secretary may
11temporarily suspend the license of a licensee without a
12hearing, simultaneously with the institution of proceedings
13for a hearing provided for in Section 20-60 20-61 of this Act,
14if the Secretary finds that the evidence indicates that the
15public interest, safety, or welfare imperatively requires
16emergency action. In the event that the Secretary temporarily
17suspends the license without a hearing before the Board, a
18hearing shall be commenced within 30 days after the suspension
19has occurred. The suspended licensee may seek a continuance of
20the hearing during which the suspension shall remain in effect.
21The proceeding shall be concluded without appreciable delay.
22(Source: P.A. 96-856, eff. 12-31-09.)
23 (225 ILCS 454/20-66)
24 (Section scheduled to be repealed on January 1, 2020)

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1 Sec. 20-66. Appointment of a hearing officer. The Secretary
2has the authority to appoint any attorney licensed to practice
3law in the State of Illinois to serve as the hearing officer in
4any action for refusal to issue, restore, or renew a license or
5to discipline a licensee, applicant, or unlicensed person. The
6hearing officer has full authority to conduct the hearing. Any
7Board member may attend the hearing. The hearing officer shall
8report his or her findings of fact, conclusions of law, and
9recommendations to the Board. The Board shall review the report
10of the hearing officer and present its findings of fact,
11conclusions of law, and recommendations to the Secretary and
12all parties to the proceeding. If the Secretary disagrees with
13a recommendation of the Board or of the hearing officer, then
14the Secretary may issue an order in contravention of the
15recommendation.
16(Source: P.A. 96-856, eff. 12-31-09.)
17 (225 ILCS 454/20-72)
18 (Section scheduled to be repealed on January 1, 2020)
19 Sec. 20-72. Secretary; rehearing. If the Secretary
20believes that substantial justice has not been done in the
21revocation or , suspension of a license, with respect to or
22refusal to issue, restore, or renew a license, or any other
23discipline of an applicant, or licensee, or unlicensed person,
24then he or she may order a rehearing by the same or other
25examiners.

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1(Source: P.A. 96-856, eff. 12-31-09.)
2 (225 ILCS 454/20-75)
3 (Section scheduled to be repealed on January 1, 2020)
4 Sec. 20-75. Administrative Review venue.
5 (a) All final administrative decisions of the Department
6are subject to judicial review under the Administrative Review
7Law and its rules. The term "administrative decision" is
8defined in Section 3-101 of the Code of Civil Procedure.
9 (b) Proceedings for judicial review shall be commenced in
10the circuit court of the court in which the party applying for
11review resides, but if the party is not a resident of Illinois,
12the venue shall be in Cook Sangamon County.
13(Source: P.A. 96-856, eff. 12-31-09.)
14 (225 ILCS 454/20-85)
15 (Section scheduled to be repealed on January 1, 2020)
16 Sec. 20-85. Recovery from Real Estate Recovery Fund. The
17Department shall maintain a Real Estate Recovery Fund from
18which any person aggrieved by an act, representation,
19transaction, or conduct of a licensee or unlicensed employee of
20a licensee that is in violation of this Act or the rules
21promulgated pursuant thereto, constitutes embezzlement of
22money or property, or results in money or property being
23unlawfully obtained from any person by false pretenses,
24artifice, trickery, or forgery or by reason of any fraud,

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1misrepresentation, discrimination, or deceit by or on the part
2of any such licensee or the unlicensed employee of a licensee
3and that results in a loss of actual cash money, as opposed to
4losses in market value, may recover. The aggrieved person may
5recover, by a post-judgment order of the circuit court of the
6county where the violation occurred in a proceeding described
7in Section 20-90 of this Act, an amount of not more than the
8amount adopted by rule $25,000 from the Fund for damages
9sustained by the act, representation, transaction, or conduct,
10together with costs of suit and attorney's fees incurred in
11connection therewith of not to exceed 15% of the amount of the
12recovery ordered paid from the Fund. However, no person may
13recover from the Fund unless the court finds that the person
14suffered a loss resulting from intentional misconduct. The
15post-judgment order shall not include interest on the judgment.
16The maximum liability against the Fund arising out of any one
17act shall be as adopted by rule provided in this Section, and
18the post-judgment order shall spread the award equitably among
19all co-owners or otherwise aggrieved persons, if any. The
20maximum liability against the Fund arising out of the
21activities of any one licensee or one unlicensed employee of a
22licensee in any one transaction or set of facts that formed the
23basis of a post-judgment order , since January 1, 1974, shall be
24as adopted by rule $100,000. Nothing in this Section shall be
25construed to authorize recovery from the Fund unless the loss
26of the aggrieved person results from an act or omission of a

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1licensee under this Act who was at the time of the act or
2omission acting in such capacity or was apparently acting in
3such capacity or their unlicensed employee and unless the
4aggrieved person has obtained a valid judgment and
5post-judgment order of the court as provided for in Section
620-90 of this Act.
7(Source: P.A. 99-227, eff. 8-3-15; 100-534, eff. 9-22-17.)
8 (225 ILCS 454/20-90)
9 (Section scheduled to be repealed on January 1, 2020)
10 Sec. 20-90. Collection from Real Estate Recovery Fund;
11procedure.
12 (a) No action for a judgment that subsequently results in a
13post-judgment order for collection from the Real Estate
14Recovery Fund shall be started later than 2 years after the
15date on which the aggrieved person knew, or through the use of
16reasonable diligence should have known, of the acts or
17omissions giving rise to a right of recovery from the Real
18Estate Recovery Fund.
19 (b) When any aggrieved person commences action for a
20judgment that may result in collection from the Real Estate
21Recovery Fund, the aggrieved person must name as parties
22defendant to that action any and all licensees, their
23employees, or independent contractors who allegedly committed
24or are responsible for acts or omissions giving rise to a right
25of recovery from the Real Estate Recovery Fund. Failure to name

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1as parties defendant such licensees, their employees, or
2independent contractors shall preclude recovery from the Real
3Estate Recovery Fund of any portion of any judgment received in
4such an action. These parties defendant shall also include any
5corporations, limited liability companies, partnerships,
6registered limited liability partnership, or other business
7associations licensed under this Act that may be responsible
8for acts giving rise to a right of recovery from the Real
9Estate Recovery Fund.
10 (c) (Blank).
11 (d) When any aggrieved person commences action for a
12judgment that may result in collection from the Real Estate
13Recovery Fund, and the aggrieved person is unable to obtain
14legal and proper service upon the parties defendant licensed
15under this Act under the provisions of Illinois law concerning
16service of process in civil actions, the aggrieved person may
17petition the court where the action to obtain judgment was
18begun for an order to allow service of legal process on the
19Secretary. Service of process on the Secretary shall be taken
20and held in that court to be as valid and binding as if due
21service had been made upon the parties defendant licensed under
22this Act. In case any process mentioned in this Section is
23served upon the Secretary, the Secretary shall forward a copy
24of the process by certified mail to the licensee's last address
25on record with the Department. Any judgment obtained after
26service of process on the Secretary under this Act shall apply

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1to and be enforceable against the Real Estate Recovery Fund
2only. The Department may intervene in and defend any such
3action.
4 (e) (Blank).
5 (f) The aggrieved person shall give written notice to the
6Department within 30 days of the entry of any judgment that may
7result in collection from the Real Estate Recovery Fund. The
8aggrieved person shall provide the Department with 20 days
9prior written notice of all supplementary proceedings so as to
10allow the Department to intervene and participate in all
11efforts to collect on the judgment in the same manner as any
12party.
13 (g) When any aggrieved person recovers a valid judgment in
14any court of competent jurisdiction in an action in which the
15court has found the aggrieved person to be injured or otherwise
16damaged by against any licensee or an unlicensed employee of
17any licensee as a result , upon the grounds of fraud,
18misrepresentation, discrimination, or deceit or intentional
19violation of this Act by the licensee or the unlicensed
20employee of the licensee, the aggrieved person may, upon the
21termination of all proceedings, including review and appeals in
22connection with the judgment, file a verified claim in the
23court in which the judgment was entered and, upon 30 days'
24written notice to the Department, and to the person against
25whom the judgment was obtained, may apply to the court for a
26post-judgment order directing payment from out of the Real

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1Estate Recovery Fund of the amount unpaid upon the judgment,
2not including interest on the judgment, and subject to the
3limitations stated in Section 20-85 of this Act. The aggrieved
4person must set out in that verified claim and subsequently
5prove at an evidentiary hearing to be held by the court upon
6the application that the claim meets all requirements of
7Section 20-85 and this Section to be eligible for payment from
8the Real Estate Recovery Fund. The and the aggrieved party
9shall be required to show that the aggrieved person:
10 (1) Is not a spouse of the debtor or debtors or the
11 personal representative of such spouse.
12 (2) Has complied with all the requirements of this
13 Section.
14 (3) Has obtained a judgment stating the amount thereof
15 and the amount owing thereon, not including interest
16 thereon, at the date of the application.
17 (4) Has made all reasonable searches and inquiries to
18 ascertain whether the judgment debtor or debtors is
19 possessed of real or personal property or other assets,
20 liable to be sold or applied in satisfaction of the
21 judgment.
22 (5) By such search has discovered no personal or real
23 property or other assets liable to be sold or applied, or
24 has discovered certain of them, describing them as owned by
25 the judgment debtor or debtors and liable to be so applied
26 and has taken all necessary action and proceedings for the

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1 realization thereof, and the amount thereby realized was
2 insufficient to satisfy the judgment, stating the amount so
3 realized and the balance remaining due on the judgment
4 after application of the amount realized.
5 (6) Has diligently pursued all remedies against all the
6 judgment debtors and all other persons liable to the
7 aggrieved person in the transaction for which recovery is
8 sought from the Real Estate Recovery Fund, including the
9 filing of an adversary action to have the debts declared
10 non-dischargeable in any bankruptcy petition matter filed
11 by any judgment debtor or person liable to the aggrieved
12 person.
13 (4) Has shown evidence of The aggrieved person shall
14 also be required to prove the amount of attorney's fees
15 sought to be recovered and the reasonableness of those fees
16 up to the maximum allowed pursuant to Section 20-85 of this
17 Act. An affidavit from the aggrieved party's attorney shall
18 be sufficient evidence of the attorney's fees incurred.
19 (h) If, after After conducting the evidentiary hearing
20required under this Section, the court finds the aggrieved
21party has satisfied the requirements of Section 20-85 and this
22Section, the court shall, in a post-judgment order directed to
23the Department, order shall indicate whether requiring payment
24from the Real Estate Recovery Fund in the amount of the unpaid
25balance of the aggrieved party's judgment subject is
26appropriate and, if so, the amount it finds to be payable upon

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1the claim, pursuant to and in accordance with the limitations
2contained in Section 20-85 of this Act, if the court is
3satisfied, based upon the hearing, of the truth of all matters
4required to be shown by the aggrieved person under subsection
5(g) of this Section and that the aggrieved person has fully
6pursued and exhausted all remedies available for recovering the
7amount awarded by the judgment of the court.
8 (i) If Should the Department pays pay from the Real Estate
9Recovery Fund any amount in settlement of a claim or toward
10satisfaction of a judgment against any licensee or an
11unlicensed employee of a licensee, the licensee's license shall
12be automatically revoked upon the issuance of a post-judgment
13order authorizing payment from the Real Estate Recovery Fund.
14No petition for restoration of a license shall be heard until
15repayment has been made in full, plus interest at the rate
16prescribed in Section 12-109 of the Code of Civil Procedure of
17the amount paid from the Real Estate Recovery Fund on their
18account, notwithstanding any provision to the contrary in
19Section 2105-15 of the Department of Professional Regulation
20Law of the Civil Administrative Code of Illinois. A discharge
21in bankruptcy shall not relieve a person from the penalties and
22disabilities provided in this subsection (i).
23 (j) If, at any time, the money deposited in the Real Estate
24Recovery Fund is insufficient to satisfy any duly authorized
25claim or portion thereof, the Department shall, when sufficient
26money has been deposited in the Real Estate Recovery Fund,

SB1872 Enrolled- 119 -LRB101 07705 RJF 52753 b
1satisfy such unpaid claims or portions thereof, in the order
2that such claims or portions thereof were originally filed,
3plus accumulated interest at the rate prescribed in Section
412-109 of the Code of Civil Procedure, provided that amount
5does not exceed the limits set forth in rules adopted by the
6Department.
7(Source: P.A. 96-856, eff. 12-31-09; 97-1002, eff. 8-17-12.)
8 (225 ILCS 454/25-15)
9 (Section scheduled to be repealed on January 1, 2020)
10 Sec. 25-15. Real Estate Coordinator; duties. There shall be
11in the Department a Real Estate Coordinator, appointed by the
12Secretary, who shall hold a currently valid broker's license,
13which shall be transferred to inactive status surrendered to
14the Department during the appointment. The Real Estate
15Coordinator shall have the following duties and
16responsibilities:
17 (1) act as Chairperson of the Board, ex officio
18 ex-officio, without vote;
19 (2) be the direct liaison between the Department, the
20 profession, and real estate organizations and
21 associations;
22 (3) prepare and circulate to licensees any educational
23 and informational material that the Department deems
24 necessary for providing guidance or assistance to
25 licensees;

SB1872 Enrolled- 120 -LRB101 07705 RJF 52753 b
1 (4) appoint any necessary committees to assist in the
2 performance of the functions and duties of the Department
3 under this Act; and
4 (5) subject to the administrative approval of the
5 Secretary, supervise all real estate activities.
6 In designating the Real Estate Coordinator, the Secretary
7shall give due consideration to recommendations by members and
8organizations of the profession.
9(Source: P.A. 96-856, eff. 12-31-09.)
10 (225 ILCS 454/25-21)
11 (Section scheduled to be repealed on January 1, 2020)
12 Sec. 25-21. Peer review advisors. The Department may
13contract with licensees meeting qualifications prescribed
14established by the Department to serve as peer review advisors
15for complaints and alleged violations of the Act. A peer review
16advisor is authorized to investigate and determine the facts of
17a complaint. The peer review advisor shall, at the direction of
18the Department, interview witnesses, the complainant and any
19licensees involved in the alleged matter and make a
20recommendation as to the findings of fact to the Department.
21The Department shall have 30 days from receipt of the
22recommendation to accept, reject or modify the recommended
23findings of fact. Peer review advisors shall be compensated
24from the Real Estate Audit Fund at a rate of not to exceed
25$15,000.00 per advisor annually. A peer review advisor shall

SB1872 Enrolled- 121 -LRB101 07705 RJF 52753 b
1not investigate a complaint from a marketplace in which the
2peer review advisor does business.
3(Source: P.A. 96-856, eff. 12-31-09.)
4 (225 ILCS 454/25-25)
5 (Section scheduled to be repealed on January 1, 2020)
6 Sec. 25-25. Real Estate Research and Education Fund. A
7special fund to be known as the Real Estate Research and
8Education Fund is created and shall be held in trust in the
9State Treasury. Annually, on September 15th, the State
10Treasurer shall cause a transfer of $125,000 to the Real Estate
11Research and Education Fund from the Real Estate License
12Administration Fund. The Real Estate Research and Education
13Fund shall be administered by the Department. Money deposited
14in the Real Estate Research and Education Fund may be used for
15research and for education at state institutions of higher
16education or other organizations for research and for education
17to further the advancement of education in the real estate
18industry. Of the $125,000 annually transferred into the Real
19Estate Research and Education Fund, $15,000 shall be used to
20fund a scholarship program for persons of minority racial
21origin who wish to pursue a course of study in the field of
22real estate. For the purposes of this Section, "course of
23study" means a course or courses that are part of a program of
24courses in the field of real estate designed to further an
25individual's knowledge or expertise in the field of real

SB1872 Enrolled- 122 -LRB101 07705 RJF 52753 b
1estate. These courses shall include without limitation courses
2that a broker licensed under this Act must complete to qualify
3for a managing broker's license, courses required to obtain the
4Graduate Realtors Institute designation, and any other courses
5or programs offered by accredited colleges, universities, or
6other institutions of higher education in Illinois. The
7scholarship program shall be administered by the Department or
8its designee. Moneys in the Real Estate Research and Education
9Fund may be invested and reinvested in the same manner as funds
10in the Real Estate Recovery Fund and all earnings, interest,
11and dividends received from such investments shall be deposited
12in the Real Estate Research and Education Fund and may be used
13for the same purposes as moneys transferred to the Real Estate
14Research and Education Fund. Moneys in the Real Estate Research
15and Education Fund may be transferred to the Professions
16Indirect Cost Fund as authorized under Section 2105-300 of the
17Department of Professional Regulation Law of the Civil
18Administrative Code of Illinois.
19(Source: P.A. 99-227, eff. 8-3-15.)
20 (225 ILCS 454/30-5)
21 (Section scheduled to be repealed on January 1, 2020)
22 Sec. 30-5. Licensing of real estate education providers and
23instructors.
24 (a) No person shall operate an education provider entity
25without possessing a valid and active license issued by the

SB1872 Enrolled- 123 -LRB101 07705 RJF 52753 b
1Department. Only education providers in possession of a valid
2education provider license may provide real estate
3pre-license, post-license, or continuing education courses
4that satisfy the requirements of this Act. Every person that
5desires to obtain an education provider license shall make
6application to the Department in a manner writing on forms
7prescribed by the Department and pay the fee prescribed by
8rule. In addition to any other information required to be
9contained in the application as prescribed by rule, every
10application for an original or renewed license shall include
11the applicant's Social Security number or tax identification
12number.
13 (b) (Blank).
14 (c) (Blank).
15 (d) (Blank).
16 (e) (Blank).
17 (f) To qualify for an education provider license, an
18applicant must demonstrate the following:
19 (1) a sound financial base for establishing,
20 promoting, and delivering the necessary courses; budget
21 planning for the school's courses should be clearly
22 projected;
23 (2) a sufficient number of qualified, licensed
24 instructors as provided by rule;
25 (3) adequate support personnel to assist with
26 administrative matters and technical assistance;

SB1872 Enrolled- 124 -LRB101 07705 RJF 52753 b
1 (4) maintenance and availability of records of
2 participation for licensees;
3 (5) the ability to provide each participant who
4 successfully completes an approved program with a
5 certificate of completion signed by the administrator of a
6 licensed education provider in a manner prescribed on forms
7 provided by the Department; the certificate of completion
8 shall include the program that was completed, the
9 completion date, the course number, and the student's and
10 education provider's license numbers;
11 (6) a written policy dealing with procedures for the
12 management of grievances and fee refunds;
13 (7) lesson plans and examinations, if applicable, for
14 each course;
15 (8) a 75% passing grade for successful completion of
16 any continuing education course or pre-license or
17 post-license examination, if required;
18 (9) the ability to identify and use instructors who
19 will teach in a planned program; instructor selections must
20 demonstrate:
21 (A) appropriate credentials;
22 (B) competence as a teacher;
23 (C) knowledge of content area; and
24 (D) qualification by experience.
25 Unless otherwise provided for in this Section, the
26education provider shall provide a proctor or an electronic

SB1872 Enrolled- 125 -LRB101 07705 RJF 52753 b
1means of proctoring for each examination; the education
2provider shall be responsible for the conduct of the proctor;
3the duties and responsibilities of a proctor shall be
4established by rule.
5 Unless otherwise provided for in this Section, the
6education provider must provide for closed book examinations
7for each course unless the Department, upon the recommendation
8of the Board, excuses this requirement based on the complexity
9of the course material.
10 (g) Advertising and promotion of education activities must
11be carried out in a responsible fashion clearly showing the
12educational objectives of the activity, the nature of the
13audience that may benefit from the activity, the cost of the
14activity to the participant and the items covered by the cost,
15the amount of credit that can be earned, and the credentials of
16the faculty.
17 (h) The Department may, or upon request of the Board shall,
18after notice, cause an education provider to attend an informal
19conference before the Board for failure to comply with any
20requirement for licensure or for failure to comply with any
21provision of this Act or the rules for the administration of
22this Act. The Board shall make a recommendation to the
23Department as a result of its findings at the conclusion of any
24such informal conference.
25 (i) All education providers shall maintain these minimum
26criteria and pay the required fee in order to retain their

SB1872 Enrolled- 126 -LRB101 07705 RJF 52753 b
1education provider license.
2 (j) The Department may adopt any administrative rule
3consistent with the language and intent of this Act that may be
4necessary for the implementation and enforcement of this
5Section.
6(Source: P.A. 100-188, eff. 1-1-18; 100-831, eff. 1-1-19.)
7 (225 ILCS 454/30-15)
8 (Section scheduled to be repealed on January 1, 2020)
9 Sec. 30-15. Licensing of education providers; approval of
10courses.
11 (a) (Blank).
12 (b) (Blank).
13 (c) (Blank).
14 (d) (Blank).
15 (e) (Blank).
16 (f) All education providers shall submit, at the time of
17initial application and with each license renewal, a list of
18courses with course materials that comply with the course
19requirements in this Act to be offered by the education
20provider. The Department may establish an online mechanism by
21which education providers may submit for approval by the
22Department upon the recommendation of the Board or its designee
23pre-license, post-license, or continuing education courses
24that are submitted after the time of the education provider's
25initial license application or renewal. The Department shall

SB1872 Enrolled- 127 -LRB101 07705 RJF 52753 b
1provide to each education provider a certificate for each
2approved pre-license, post-license, or continuing education
3course. All pre-license, post-license, or continuing education
4courses shall be valid for the period coinciding with the term
5of license of the education provider. However, in no case shall
6a course continue to be valid if it does not, at all times,
7meet all of the requirements of the core curriculum established
8by this Act and the Board, as modified from time to time in
9accordance with this Act. All education providers shall provide
10a copy of the certificate of the pre-license, post-license, or
11continuing education course within the course materials given
12to each student or shall display a copy of the certificate of
13the pre-license, post-license, or continuing education course
14in a conspicuous place at the location of the class.
15 (g) Each education provider shall provide to the Department
16a report in a frequency and format determined by the
17Department, with information concerning students who
18successfully completed all approved pre-license, post-license,
19or continuing education courses offered by the education
20provider.
21 (h) The Department, upon the recommendation of the Board,
22may temporarily suspend a licensed education provider's
23approved courses without hearing and refuse to accept
24successful completion of or participation in any of these
25pre-license, post-license, or continuing education courses for
26education credit from that education provider upon the failure

SB1872 Enrolled- 128 -LRB101 07705 RJF 52753 b
1of that education provider to comply with the provisions of
2this Act or the rules for the administration of this Act, until
3such time as the Department receives satisfactory assurance of
4compliance. The Department shall notify the education provider
5of the noncompliance and may initiate disciplinary proceedings
6pursuant to this Act. The Department may refuse to issue,
7suspend, revoke, or otherwise discipline the license of an
8education provider or may withdraw approval of a pre-license,
9post-license, or continuing education course for good cause.
10Failure to comply with the requirements of this Section or any
11other requirements established by rule shall be deemed to be
12good cause. Disciplinary proceedings shall be conducted by the
13Board in the same manner as other disciplinary proceedings
14under this Act.
15 (i) Pre-license, post-license, and continuing education
16courses, whether submitted for approval at the time of an
17education provider's initial application for licensure or
18otherwise, must meet the following minimum course
19requirements:
20 (1) No continuing education course shall be required to
21 be taught in increments longer than 2 hours in duration;
22 however, for each one hour 2 hours of course time in each
23 course, there shall be a minimum of 50 100 minutes of
24 instruction.
25 (2) All core curriculum courses shall be provided only
26 in the classroom or through a live, interactive webinar or

SB1872 Enrolled- 129 -LRB101 07705 RJF 52753 b
1 online distance education format.
2 (3) Courses provided through a live, interactive
3 webinar shall require all participants to demonstrate
4 their attendance in and attention to the course by
5 answering or responding to at least one polling question
6 per 50 30 minutes of course instruction. In no event shall
7 the interval between polling questions exceed 30 minutes.
8 (4) All participants in courses provided in an online
9 distance education format shall demonstrate proficiency
10 with the subject matter of the course through verifiable
11 responses to questions included in the course content.
12 (5) Credit for courses completed in a classroom or
13 through a live, interactive webinar or online distance
14 education format shall not require an examination.
15 (6) Credit for courses provided through
16 correspondence, or by home study, shall require the passage
17 of an in-person, proctored examination.
18 (j) The Department is authorized to engage a third party as
19the Board's designee to perform the functions specifically
20provided for in subsection (f) of this Section, namely that of
21administering the online system for receipt, review, and
22approval or denial of new courses.
23 (k) The Department may adopt any administrative rule
24consistent with the language and intent of this Act that may be
25necessary for the implementation and enforcement of this
26Section.

SB1872 Enrolled- 130 -LRB101 07705 RJF 52753 b
1(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
2 (225 ILCS 454/30-25)
3 (Section scheduled to be repealed on January 1, 2020)
4 Sec. 30-25. Licensing of education provider instructors.
5 (a) No person shall act as either a pre-license or
6continuing education instructor without possessing a valid
7pre-license or continuing education instructor license and
8satisfying any other qualification criteria adopted
9established by the Department by rule.
10 (a-5) Each person with a valid pre-license instructor
11license may teach pre-license, continuing education core
12curriculum, continuing education elective curriculum, or
13broker management education courses if they meet specific
14criteria adopted by the Department by rule. Those persons who
15have not met the criteria or who only possess a valid
16continuing education instructor license shall only teach
17continuing education elective curriculum courses. Any person
18with a valid continuing education instructor license who wishes
19to teach continuing education core curriculum or broker
20management continuing education courses must obtain a valid
21pre-license instructor license. Each person that is an
22instructor for pre-license, continuing education core
23curriculum, or broker management education courses shall meet
24specific criteria established by the Department by rule. Those
25persons who have not met the criteria shall only teach

SB1872 Enrolled- 131 -LRB101 07705 RJF 52753 b
1continuing education elective curriculum courses.
2 (b) Every person who desires to obtain an education
3provider instructor's license shall attend and successfully
4complete a one-day instructor development workshop, as
5approved by the Department. However, pre-license instructors
6who have complied with subsection (b) of this Section 30-25
7shall not be required to complete the instructor workshop in
8order to teach continuing education elective curriculum
9courses.
10 (b-5) The term of licensure for a pre-license or continuing
11education instructor shall be 2 years, with renewal dates
12adopted and as established by rule. Every person who desires to
13obtain a pre-license or continuing education instructor
14license shall make application to the Department in a manner
15writing on forms prescribed by the Department, accompanied by
16the fee adopted prescribed by rule. In addition to any other
17information required to be contained in the application, every
18application for an original license shall include the
19applicant's Social Security number, which shall be retained in
20the agency's records pertaining to the license. As soon as
21practical, the Department shall assign a customer's
22identification number to each applicant for a license.
23 Every application for a renewal or restored license shall
24require the applicant's customer identification number.
25 The Department shall issue a pre-license or continuing
26education instructor license to applicants who meet

SB1872 Enrolled- 132 -LRB101 07705 RJF 52753 b
1qualification criteria established by this Act or rule.
2 (c) The Department may refuse to issue, suspend, revoke, or
3otherwise discipline a pre-license or continuing education
4instructor for good cause. Disciplinary proceedings shall be
5conducted by the Board in the same manner as other disciplinary
6proceedings under this Act. All pre-license instructors must
7teach at least one pre-license or continuing education core
8curriculum course within the period of licensure as a
9requirement for renewal of the instructor's license. All
10continuing education instructors must teach at least one course
11within the period of licensure or take an instructor training
12program approved by the Department in lieu thereof as a
13requirement for renewal of the instructor's license.
14 (d) Each course transcript submitted by an education
15provider to the Department shall include the name and license
16number of the pre-license or continuing education instructor
17for the course.
18 (e) Licensed education provider instructors may teach for
19more than one licensed education provider.
20 (f) The Department may adopt any administrative rule
21consistent with the language and intent of this Act that may be
22necessary for the implementation and enforcement of this
23Section.
24(Source: P.A. 100-188, eff. 1-1-18.)
25 (225 ILCS 454/20-68 rep.)

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1 (225 ILCS 454/25-14 rep.)
2 (225 ILCS 454/25-37 rep.)
3 Section 15. The Real Estate License Act of 2000 is amended
4by repealing Sections 20-68, 25-14, and 25-37.
5 Section 99. Effective date. This Act takes effect upon
6becoming law.
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