Statutes > Illinois Statutes > CHAPTER 225 PROFESSIONS AND OCCUPATIONS > 225 ILCS 454/ Real Estate License Act of 2000. > Article 5 - Licensing And Education

Article 5 - Licensing And Education


      (225 ILCS 454/Art. 5 heading)
ARTICLE 5. LICENSING AND EDUCATION

    (225 ILCS 454/5‑5)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑5. Leasing agent license.
    (a) The purpose of this Section is to provide for a limited scope license to enable persons who wish to engage in activities limited to the leasing of residential real property for which a license is required under this Act, and only those activities, to do so by obtaining the license provided for under this Section.
    (b) Notwithstanding the other provisions of this Act, there is hereby created a leasing agent license that shall enable the licensee to engage only in residential leasing activities for which a license is required under this Act. Such activities include without limitation leasing or renting residential real property, or attempting, offering, or negotiating to lease or rent residential real property, or supervising the collection, offer, attempt, or agreement to collect rent for the use of residential real property. Nothing in this Section shall be construed to require a licensed real estate broker or salesperson to obtain a leasing agent license in order to perform leasing activities for which a license is required under this Act. Licensed leasing agents must be sponsored and employed by a sponsoring broker.
    (c) The Department, by rule shall provide for the licensing of leasing agents, including the issuance, renewal, and administration of licenses.
    (d) Notwithstanding any other provisions of this Act to the contrary, a person may engage in residential leasing activities for which a license is required under this Act, for a period of 120 consecutive days without being licensed, so long as the person is acting under the supervision of a licensed real estate broker and the broker has notified the Department that the person is pursuing licensure under this Section. During the 120 day period all requirements of Sections 5‑10 and 5‑65 of this Act with respect to education, successful completion of an examination, and the payment of all required fees must be satisfied. The Department may adopt rules to ensure that the provisions of this subsection are not used in a manner that enables an unlicensed person to repeatedly or continually engage in activities for which a license is required under this Act.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑6)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑6. Social Security Number or Tax Identification Number on license application. In addition to any other information required to be contained in the application, every application for an original or renewal license under this Act shall include the applicant's Social Security Number or Tax Identification Number.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑7)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑7. Application for leasing agent license. Every person who desires to obtain a leasing agent license shall apply to the Department in writing on forms provided by the Department which application shall be accompanied by the required non‑refundable fee. Any such application shall require such information as in the judgment of the Department will enable the Department to pass on the qualifications of the applicant for licensure.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑10)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑10. Requirements for license as leasing agent.
    (a) Every applicant for licensure as a leasing agent must meet the following qualifications:
        (1) be at least 18 years of age;
        (2) be of good moral character;
        (3) successfully complete a 4‑year course of study
     in a high school or secondary school or an equivalent course of study approved by the Illinois State Board of Education;
        (4) personally take and pass a written examination
     authorized by the Department sufficient to demonstrate the applicant's knowledge of the provisions of this Act relating to leasing agents and the applicant's competence to engage in the activities of a licensed leasing agent;
        (5) provide satisfactory evidence of having completed
     15 hours of instruction in an approved course of study relating to the leasing of residential real property. The course of study shall, among other topics, cover the provisions of this Act applicable to leasing agents; fair housing issues relating to residential leasing; advertising and marketing issues; leases, applications, and credit reports; owner‑tenant relationships and owner‑tenant laws; the handling of funds; and environmental issues relating to residential real property;
        (6) complete any other requirements as set forth by
     rule; and
        (7) present a valid application for issuance of an
     initial license accompanied by a sponsor card and the fees specified by rule.
    (b) No applicant shall engage in any of the activities
     covered by this Act until a valid sponsor card has been issued to such applicant. The sponsor card shall be valid for a maximum period of 45 days after the date of issuance unless extended for good cause as provided by rule.
    (c) Successfully completed course work, completed
     pursuant to the requirements of this Section, may be applied to the course work requirements to obtain a real estate broker's or salesperson's license as provided by rule. The Advisory Council may recommend through the Board to the Department and the Department may adopt requirements for approved courses, course content, and the approval of courses, instructors, and schools, as well as school and instructor fees. The Department may establish continuing education requirements for licensed leasing agents, by rule, with the advice of the Advisory Council and Board.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑15)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑15. Necessity of managing broker, broker, salesperson, or leasing agent license or sponsor card; ownership restrictions.
    (a) It is unlawful for any person, corporation, limited liability company, registered limited liability partnership, or partnership to act as a managing broker, real estate broker, real estate salesperson, or leasing agent or to advertise or assume to act as such broker, salesperson, or leasing agent without a properly issued sponsor card or a license issued under this Act by the Department, either directly or through its authorized designee.
    (b) No corporation shall be granted a license or engage in the business or capacity, either directly or indirectly, of a real estate broker, unless every officer of the corporation who actively participates in the real estate activities of the corporation holds a license as a managing broker or broker and unless every employee who acts as a salesperson, or leasing agent for the corporation holds a license as a broker, salesperson, or leasing agent.
    (c) No partnership shall be granted a license or engage in the business or serve in the capacity, either directly or indirectly, of a real estate broker, unless every general partner in the partnership holds a license as a managing broker or broker and unless every employee who acts as a salesperson or leasing agent for the partnership holds a license as a broker, salesperson, or leasing agent. In the case of a registered limited liability partnership (LLP), every partner in the LLP must hold a license as a managing broker or broker and every employee who acts as a salesperson or leasing agent must hold a license as a broker, salesperson, or leasing agent.
    (d) No limited liability company shall be granted a license or engage in the business or serve in the capacity, either directly or indirectly, of a broker unless every manager in the limited liability company or every member in a member managed limited liability company holds a license as a managing broker or broker and unless every other member and employee who acts as a salesperson or leasing agent for the limited liability company holds a license as a broker, salesperson, or leasing agent.
    (e) No partnership, limited liability company, or corporation shall be licensed to conduct a brokerage business where an individual salesperson or leasing agent, or group of salespersons or leasing agents, owns or directly or indirectly controls more than 49% of the shares of stock or other ownership in the partnership, limited liability company, or corporation.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑20)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑20. Exemptions from broker, salesperson, or leasing agent license requirement. The requirement for holding a license under this Article 5 shall not apply to:
        (1) Any person, partnership, or corporation that as
     owner or lessor performs any of the acts described in the definition of "broker" under Section 1‑10 of this Act with reference to property owned or leased by it, or to the regular employees thereof with respect to the property so owned or leased, where such acts are performed in the regular course of or as an incident to the management, sale, or other disposition of such property and the investment therein, provided that such regular employees do not perform any of the acts described in the definition of "broker" under Section 1‑10 of this Act in connection with a vocation of selling or leasing any real estate or the improvements thereon not so owned or leased.
        (2) An attorney in fact acting under a duly executed
     and recorded power of attorney to convey real estate from the owner or lessor or the services rendered by an attorney at law in the performance of the attorney's duty as an attorney at law.
        (3) Any person acting as receiver, trustee in
     bankruptcy, administrator, executor, or guardian or while acting under a court order or under the authority of a will or testamentary trust.
        (4) Any person acting as a resident manager for the
     owner or any employee acting as the resident manager for a broker managing an apartment building, duplex, or apartment complex, when the resident manager resides on the premises, the premises is his or her primary residence, and the resident manager is engaged in the leasing of the property of which he or she is the resident manager.
        (5) Any officer or employee of a federal agency in
     the conduct of official duties.
        (6) Any officer or employee of the State government
     or any political subdivision thereof performing official duties.
        (7) Any multiple listing service or other similar
     information exchange that is engaged in the collection and dissemination of information concerning real estate available for sale, purchase, lease, or exchange for the purpose of providing licensees with a system by which licensees may cooperatively share information along with which no other licensed activities, as defined in Section 1‑10 of this Act, are provided.
        (8) Railroads and other public utilities regulated by
     the State of Illinois, or the officers or full time employees thereof, unless the performance of any licensed activities is in connection with the sale, purchase, lease, or other disposition of real estate or investment therein not needing the approval of the appropriate State regulatory authority.
        (9) Any medium of advertising in the routine course
     of selling or publishing advertising along with which no other licensed activities, as defined in Section 1‑10 of this Act, are provided.
        (10) Any resident lessee of a residential dwelling
     unit who refers for compensation to the owner of the dwelling unit, or to the owner's agent, prospective lessees of dwelling units in the same building or complex as the resident lessee's unit, but only if the resident lessee (i) refers no more than 3 prospective lessees in any 12‑month period, (ii) receives compensation of no more than $1,500 or the equivalent of one month's rent, whichever is less, in any 12‑month period, and (iii) limits his or her activities to referring prospective lessees to the owner, or the owner's agent, and does not show a residential dwelling unit to a prospective lessee, discuss terms or conditions of leasing a dwelling unit with a prospective lessee, or otherwise participate in the negotiation of the leasing of a dwelling unit.
        (11) An exchange company registered under the Real
     Estate Timeshare Act of 1999 and the regular employees of that registered exchange company but only when conducting an exchange program as defined in that Act.
        (12) An existing timeshare owner who, for
     compensation, refers prospective purchasers, but only if the existing timeshare owner (i) refers no more than 20 prospective purchasers in any calendar year, (ii) receives no more than $1,000, or its equivalent, for referrals in any calendar year and (iii) limits his or her activities to referring prospective purchasers of timeshare interests to the developer or the developer's employees or agents, and does not show, discuss terms or conditions of purchase or otherwise participate in negotiations with regard to timeshare interests.
        (13) Any person who is licensed without examination
     under Section 10‑25 (now repealed) of the Auction License Act is exempt from holding a broker's or salesperson's license under this Act for the limited purpose of selling or leasing real estate at auction, so long as:
            (A) that person has made application for said
         exemption by July 1, 2000;
            (B) that person verifies to the Department that
         he or she has sold real estate at auction for a period of 5 years prior to licensure as an auctioneer;
            (C) the person has had no lapse in his or her
         license as an auctioneer; and
            (D) the license issued under the Auction License
         Act has not been disciplined for violation of those provisions of Article 20 of the Auction License Act dealing with or related to the sale or lease of real estate at auction.
        (14) A hotel operator who is registered with the
     Illinois Department of Revenue and pays taxes under the Hotel Operators' Occupation Tax Act and rents a room or rooms in a hotel as defined in the Hotel Operators' Occupation Tax Act for a period of not more than 30 consecutive days and not more than 60 days in a calendar year.
(Source: P.A. 96‑328, eff. 8‑11‑09; 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑25)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑25. Good moral character.
    When an applicant has had his or her license revoked on a prior occasion or when an applicant is found to have committed any of the practices enumerated in Section 20‑20 of this Act or when an applicant has been convicted of or enters a plea of guilty or nolo contendere to forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any other similar offense or offenses or has been convicted of a felony involving moral turpitude in any court of competent jurisdiction in this or any other state, district, or territory of the United States or of a foreign country, the Board may consider the prior revocation, conduct, or conviction in its determination of the applicant's moral character and whether to grant the applicant a license. In its consideration of the prior revocation, conduct, or conviction, the Board shall take into account the nature of the conduct, any aggravating or extenuating circumstances, the time elapsed since the revocation, conduct, or conviction, the rehabilitation or restitution performed by the applicant, and any other factors that the Board deems relevant. When an applicant has made a false statement of material fact on his or her application, the false statement may in itself be sufficient grounds to revoke or refuse to issue a license.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑26)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑26. Requirements for license as a salesperson.
    (a) Every applicant for licensure as a salesperson must meet the following qualifications:
        (1) Be at least 21 years of age. The minimum age of
     21 years shall be waived for any person seeking a license as a real estate salesperson who has attained the age of 18 and can provide evidence of the successful completion of at least 4 semesters of post‑secondary school study as a full‑time student or the equivalent, with major emphasis on real estate courses, in a school approved by the Department;
        (2) Be of good moral character;
        (3) Successfully complete a 4‑year course of study in
     a high school or secondary school approved by the Illinois State Board of Education or an equivalent course of study as determined by an examination conducted by the Illinois State Board of Education, which shall be verified under oath by the applicant;
        (4) Provide satisfactory evidence of having completed
     at least 45 hours of instruction in real estate courses approved by the Advisory Council, except applicants who are currently admitted to practice law by the Supreme Court of Illinois and are currently in active standing;
        (5) Shall personally take and pass a written
     examination authorized by the Department; and
        (6) Present a valid application for issuance of a
     license accompanied by a sponsor card and the fees specified by rule.
    (b) No applicant shall engage in any of the activities covered by this Act until a valid sponsor card has been issued to the applicant. The sponsor card shall be valid for a maximum period of 45 days after the date of issuance unless extended for good cause as provided by rule.
    (c) All licenses should be readily available to the public at their sponsoring place of business.
    (d) No new salesperson licenses shall be issued after April 30, 2011 and all existing salesperson licenses shall terminate on May 1, 2012.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑27)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑27. Requirements for licensure as a broker.
    (a) Every applicant for licensure as a broker must meet the following qualifications:
        (1) Be at least 21 years of age. After April 30,
     2011, the minimum age of 21 years shall be waived for any person seeking a license as a broker who has attained the age of 18 and can provide evidence of the successful completion of at least 4 semesters of post‑secondary school study as a full‑time student or the equivalent, with major emphasis on real estate courses, in a school approved by the Department;
        (2) Be of good moral character;
        (3) Successfully complete a 4‑year course of study in
     a high school or secondary school approved by the Illinois State Board of Education or an equivalent course of study as determined by an examination conducted by the Illinois State Board of Education which shall be verified under oath by the applicant;
        (4) Prior to May 1, 2011, provide (i) satisfactory
     evidence of having completed at least 120 classroom hours, 45 of which shall be those hours required to obtain a salesperson's license plus 15 hours in brokerage administration courses, in real estate courses approved by the Advisory Council or (ii) for applicants who currently hold a valid real estate salesperson's license, give satisfactory evidence of having completed at least 75 hours in real estate courses, not including the courses that are required to obtain a salesperson's license, approved by the Advisory Council;
        (5) After April 30, 2011, provide satisfactory
     evidence of having completed 90 hours of instruction in real estate courses approved by the Advisory Council, 15 hours of which must consist of situational and case studies presented in the classroom or by other interactive delivery method presenting instruction and real time discussion between the instructor and the students;
        (6) Personally take and pass a written examination
     authorized by the Department;
        (7) Present a valid application for issuance of a
     license accompanied by a sponsor card and the fees specified by rule.
    (b) The requirements specified in items (4) and (5) of
     subsection (a) of this Section do not apply to applicants who are currently admitted to practice law by the Supreme Court of Illinois and are currently in active standing.
    (c) No applicant shall engage in any of the activities
     covered by this Act until a valid sponsor card has been issued to such applicant. The sponsor card shall be valid for a maximum period of 45 days after the date of issuance unless extended for good cause as provided by rule.
    (d) All licenses should be readily available to the
     public at their place of business.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑28)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑28. Requirements for licensure as a managing broker.
    (a) Effective May 1, 2012, every applicant for licensure as a managing broker must meet the following qualifications:
        (1) be at least 21 years of age;
        (2) be of good moral character;
        (3) have been licensed at least 2 out of the
     preceding 3 years as a real estate broker or salesperson;
        (4) successfully complete a 4‑year course of study in
     high school or secondary school approved by the Illinois State Board of Education or an equivalent course of study as determined by an examination conducted by the Illinois State Board of Education, which shall be verified under oath by the applicant;
        (5) provide satisfactory evidence of having completed
     at least 165 hours, 120 of which shall be those hours required pre and post‑licensure to obtain a broker's license, and 45 additional hours completed within the year immediately preceding the filing of an application for a managing broker's license, which hours shall focus on brokerage administration and management and include at least 15 hours in the classroom or by other interactive delivery method presenting instructional and real time discussion between the instructor and the students;
        (6) personally take and pass a written examination
     authorized by the Department; and
        (7) present a valid application for issuance of a
     license accompanied by a sponsor card, an appointment as a managing broker, and the fees specified by rule.
    (b) The requirements specified in item (5) of subsection (a) of this Section do not apply to applicants who are currently admitted to practice law by the Supreme Court of Illinois and are currently in active standing.
    (c) No applicant shall act as a managing broker for more than 90 days after an appointment as a managing broker has been filed with the Department without obtaining a managing broker's license.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑30)
    Sec. 5‑30. (Repealed).
(Source: P.A. 93‑957, eff. 8‑19‑04. Repealed by P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑35)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑35. Examination; managing broker, broker, salesperson, or leasing agent.
    (a) The Department shall authorize examinations at such times and places as it may designate. The examination shall be of a character to give a fair test of the qualifications of the applicant to practice as a managing broker, broker, salesperson, or leasing agent. Applicants for examination as a managing broker, broker, salesperson, or leasing agent shall be required to pay, either to the Department or the designated testing service, a fee covering the cost of providing the examination. Failure to appear for the examination on the scheduled date, at the time and place specified, after the applicant's application for examination has been received and acknowledged by the Department or the designated testing service, shall result in the forfeiture of the examination fee. An applicant shall be eligible to take the examination only after successfully completing the education requirements and attaining the minimum age provided for in Article 5 of this Act. Each applicant shall be required to establish compliance with the eligibility requirements in the manner provided by the rules promulgated for the administration of this Act.
    (b) If a person who has received a passing score on the written examination described in this Section fails to file an application and meet all requirements for a license under this Act within one year after receiving a passing score on the examination, credit for the examination shall terminate. The person thereafter may make a new application for examination.
    (c) If an applicant has failed an examination 4 times, the applicant must repeat the pre‑license education required to sit for the examination. For the purposes of this Section, the fifth attempt shall be the same as the first. Approved education, as prescribed by this Act for licensure as a salesperson or broker, shall be valid for 4 years after the date of satisfactory completion of the education.
    (d) The Department may employ consultants for the purposes of preparing and conducting examinations.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑40)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑40. Sponsor card; termination indicated by license endorsement; association with new broker.
    (a) The sponsoring broker shall prepare upon forms provided by the Department and deliver to each licensee employed by or associated with the sponsoring broker a sponsor card certifying that the person whose name appears thereon is in fact employed by or associated with the sponsoring broker. The sponsoring broker shall send a duplicate of each sponsor card, along with a valid license or other authorization as provided by rule and the appropriate fee, to the Department within 24 hours of issuance of the sponsor card. It is a violation of this Act for any broker to issue a sponsor card to any licensee or applicant unless the licensee or applicant presents in hand a valid license or other authorization as provided by rule.
    (b) When a licensee terminates his or her employment or association with a sponsoring broker or the employment is terminated by the sponsoring broker, the licensee shall obtain from the sponsoring broker his or her license endorsed by the sponsoring broker indicating the termination. The sponsoring broker shall surrender to the Department a copy of the license of the licensee within 2 days of the termination or shall notify the Department in writing of the termination and explain why a copy of the license is not surrendered. Failure of the sponsoring broker to surrender the license shall subject the sponsoring broker to discipline under Section 20‑20 of this Act. The license of any licensee whose association with a sponsoring broker is terminated shall automatically become inoperative immediately upon the termination unless the licensee accepts employment or becomes associated with a new sponsoring broker pursuant to subsection (c) of this Section.
    (c) When a licensee accepts employment or association with a new sponsoring broker, the new sponsoring broker shall send to the Department a duplicate sponsor card, along with the licensee's endorsed license or an affidavit of the licensee of why the endorsed license is not surrendered, and shall pay the appropriate fee prescribed by rule to cover administrative expenses attendant to the changes in the registration of the licensee.
(Source: P.A. 96‑856, eff. 12‑31‑09.)

    (225 ILCS 454/5‑41)
    (Section scheduled to be repealed on January 1, 2020)
    Sec. 5‑41. Change of address. A licensee shall notify the Department of the address or addresses, and of every cha