Modern Real Estate Practice in Illinois 7th Edition Chapter 14: Illinois Real Estate License Law Administration of the Illinois Real Estate License Act • Illinois Department of Financial and Professional Regulation (the Department) • Division of Professional Regulation • Real Estate Coordinator - duties • Real Estate Administration and Disciplinary Board – Composition of the Board • Advisory Council • Real Estate Research and Education Fund ©2011 Kaplan, Inc. Obtaining and Keeping a Real Estate License • Services that require a real estate license • License exemptions • Civil Penalty for the Unlicensed Practice of Real Estate - $25,000 per offense ©2011 Kaplan, Inc. License Categories and Requirements • General Requirements – – – – – HS or GED Moral person Pass license exam Attorney exemption Course work good for 4 yrs • Broker’s License – – – – Entry level license 21 Yrs old (18 yrs exception) 90 hours instruction 30 hours within first renewal period ©2011 Kaplan, Inc. License Categories and Requirements • Managing Broker License – 21 yrs old – 165 hours (120 + 30 hours for Broker license + 45 hr Managing Broker course) – 12 hour Broker Mgr course – 2 years experience ©2011 Kaplan, Inc. License Categories and Requirements • Corporations, Limited Liability Companies and Partnerships – All officers who manage business must have managing broker license – All partners, members must have managing broker license – Non managing brokers cannot own more than 49% ©2011 Kaplan, Inc. License Categories and Requirements • Leasing Agent’s License – – – – – 18 years old HS or GED 15 hour instruction Pass license exam 120 day period without license ©2011 Kaplan, Inc. The Licensing Examination • Anyone applying for an original broker, managing broker or leasing agent’s license must receive a passing score on a written exam administered by an independent testing agency (AMP) • Two parts 1) national 2) state • 75% is passing • 4 attempts ©2011 Kaplan, Inc. The Real Estate License • The branch license is to be displayed conspicuously in the place of business • The licenses of sponsored agents are to be available at the place of business • Changing business address or name • Leaving or changing firms • Inoperative or expired license • Nonresidents and license by reciprocity ©2011 Kaplan, Inc. License Fees • Licensing fees • Expiration and renewal of current licenses – – – – broker managing broker leasing agent business • Renewal of expired license – up to two yrs • Renewal of expired license – 2 to 5 yrs ©2011 Kaplan, Inc. Continuing Education • Requirements Broker – First renewal 30 hours – Six hours per year (12 hours of CE in any license renewal period) • Requirements Managing Broker – Six hours per year (12 hours of CE in any license renewal period) – In addition brokers must complete a 12-hour broker management course ©2011 Kaplan, Inc. Continuing Education – Course content • Core requirements • Electives • Courses that may not be used for CE – Exemptions and waivers ©2011 Kaplan, Inc. Your Real Estate Business and the Act • Place of Business – Each real estate managing broker actively engaged in the real estate business must maintain a definite office or place of business within Illinois – Exceptions – Branch offices ©2011 Kaplan, Inc. Your Real Estate Business and the Act • • • • • • • Employment Agreements Agency relationships Disclosure Handling client funds Personal assistants Advertising regulations Compensation and business practice ©2011 Kaplan, Inc. Disciplinary Provisions and Loss of License • Causes for discipline • Not subject to discipline – Multiple-client transactions within designated agency – Unlawful actions by associates if no broker knowledge ©2011 Kaplan, Inc. Disciplinary Provisions and Loss of License • • • • • • • Procedure for disciplinary hearings Disciplinary consent orders Judicial review Criminal prosecution and penalties Injunctions Disciplinary statute of limitations Index of decisions ©2011 Kaplan, Inc. The Real Estate Recovery Fund • Provides a means of compensation for actual monetary losses suffered by any person as a result of certain violations by a licensee or a licensee’s unlicensed employee ©2011 Kaplan, Inc. The Real Estate Recovery Fund • • • • • • Recovery amounts Fund losses held Collection from the recovery fund Statute of limitations Disciplinary action against the licensee Financing the recovery fund ©2011 Kaplan, Inc.