Transcript Modern Real Estate Practice in Illinois 7th Edition

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
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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
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License Categories and Requirements
• General Requirements
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HS or GED
Moral person
Pass license exam
Attorney exemption
Course work good for 4 yrs
• Broker’s License
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Entry level license
21 Yrs old (18 yrs exception)
90 hours instruction
30 hours within first renewal period
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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
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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%
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License Categories and Requirements
• Leasing Agent’s License
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18 years old
HS or GED
15 hour instruction
Pass license exam
120 day period without license
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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
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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
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License Fees
• Licensing fees
• Expiration and renewal of current licenses
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broker
managing broker
leasing agent
business
• Renewal of expired license – up to two yrs
• Renewal of expired license – 2 to 5 yrs
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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
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Continuing Education
– Course content
• Core requirements
• Electives
• Courses that may not be used for CE
– Exemptions and waivers
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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
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Your Real Estate Business and the Act
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Employment Agreements
Agency relationships
Disclosure
Handling client funds
Personal assistants
Advertising regulations
Compensation and business practice
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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
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Disciplinary Provisions and Loss of
License
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Procedure for disciplinary hearings
Disciplinary consent orders
Judicial review
Criminal prosecution and penalties
Injunctions
Disciplinary statute of limitations
Index of decisions
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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
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The Real Estate Recovery Fund
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Recovery amounts
Fund losses held
Collection from the recovery fund
Statute of limitations
Disciplinary action against the licensee
Financing the recovery fund
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