SB 2887 — REAL ESTATE LIC-CONTINUING ED

SB2887 EngrossedEnrolled LRB093 20864 AMC 46932 b AN ACT concerning professional regulation.

The Real Estate License Act of 2000 is amended by changing Sections 1-10, 5-30, 5-50, 5-70, and 5-7020-20 and by adding Section 15-75 as follows:

SB2887 EngrossedEnrolled - 2 - LRB093 20864 AMC 46932 b "Broker" means an individual, partnership, limited liability company, corporation, or registered limited liability partnership other than a real estate salesperson or leasing agent who for another and for compensation, or with the intention or expectation of receiving compensation, either directly or indirectly:

SB2887 EngrossedEnrolled - 3 - LRB093 20864 AMC 46932 b Brokerage agreements may constitute either a bilateral or a unilateral agreement between the broker and the broker’s client depending upon the content of the brokerage agreement.

"Confidential information" means information obtained by a licensee from a client during the term of a brokerage agreement that (i) was made confidential by the written request or written instruction of the client, (ii) deals with the negotiating position of the client, or (iii) is information the disclosure of which could materially harm the negotiating SB2887 EngrossedEnrolled - 4 - LRB093 20864 AMC 46932 b position of the client, unless at any time:

SB2887 EngrossedEnrolled - 5 - LRB093 20864 AMC 46932 b "Employee" or other derivative of the word "employee", when used to refer to, describe, or delineate the relationship between a real estate broker and a real estate salesperson, another real estate broker, or a leasing agent, shall be construed to include an independent contractor relationship, provided that a written agreement exists that clearly establishes and states the relationship.

"Exclusive brokerage agreement" means a written brokerage agreement that provides that the sponsoring broker has the sole right, through one or more sponsored licensees, to act as the exclusive designated agent or representative of the client and that meets the requirements of Section 15-75 of this Act.

"License" means the document issued by OBRE certifying that the person named thereon has fulfilled all requirements SB2887 EngrossedEnrolled - 6 - LRB093 20864 AMC 46932 b prerequisite to licensure under this Act.

Examples of these acts include without limitation (i) responding to phone inquiries by consumers as to the availability and pricing of brokerage services, (ii) responding to phone inquiries from a consumer concerning the price or location of property, (iii) attending an open house and responding to questions about the property from a consumer, (iv) setting an appointment to view property, (v) responding to questions of consumers walking into a licensee’s office concerning brokerage services offered or particular properties, (vi) accompanying an appraiser, inspector, contractor, or similar third party on a visit to a property, (vii) describing a property or the property’s condition in response to a consumer’s inquiry, (viii) completing business or factual information for a consumer on an offer or contract to purchase on behalf of a client, (ix) showing a client through a SB2887 EngrossedEnrolled - 7 - LRB093 20864 AMC 46932 b property being sold by an owner on his or her own behalf, or (x) referral to another broker or service provider.

"Salesperson" means any individual, other than a real estate broker or leasing agent, who is employed by a real SB2887 EngrossedEnrolled - 8 - LRB093 20864 AMC 46932 b estate broker or is associated by written agreement with a real estate broker as an independent contractor and participates in any activity described in the definition of "broker" under this Section.

(b) All applicants for a salesperson’s license, except applicants who meet the criteria set forth in subsection (c) of this Section shall give satisfactory evidence that they have SB2887 EngrossedEnrolled - 9 - LRB093 20864 AMC 46932 b completed at least 45 hours of instruction in real estate courses approved by the Advisory Council.

SB2887 Engrossed - 10 - LRB093 20864 AMC 46932 b (b) OBRE shall establish and maintain a register of all persons currently licensed by the State and shall issue and SB2887 Enrolled - 10 - LRB093 20864 AMC 46932 b prescribe a form of pocket card.

In addition, effectivebeginning with the pre-renewal period SB2887for Engrossedbroker -licensees 11that -begins LRB093after 20864the AMCeffective 46932date bof beginningthis Aprilamendatory 1,Act 2006,of inthe order93rd General Assembly, to renew a SB2887 Enrolled - 11 - LRB093 20864 AMC 46932 b real estate broker’s license, the licensee must successfully complete,complete by achieving an 85% passing score, a 6-hour broker management continuing education course approved by OBRE.

TheSuccessful 6-hourcompletion brokerof managementthe continuing education course mustshall beinclude completedachieving bya allpassing personsscore receivingas theirprovided initialby broker’srule licenseon withina 180test daysdeveloped afterand theadministered datein ofaccordance initialwith licensurerules asadopted aby broker.the OBRE.

Beginning on the first day of the pre-renewal period for broker licensees that begins after the effective date of this amendatory Act of the 93rd General Assembly, the 6-hour broker management continuing education course must be completed by all persons receiving their initial broker’s license within 180 days after the date of initial licensure as a broker.

A person receiving an initial license as a real estate broker during the 90 days before the broker renewal date shall not be required to complete the broker management continuing SB2887 Enrolled - 12 - LRB093 20864 AMC 46932 b education course provided for in subsection (b) of this Section.Section as a condition of initial license renewal.

In SB2887 Engrossed - 12 - LRB093 20864 AMC 46932 b meeting the continuing education requirements of this Act, at least 3 hours per year or their equivalent shall be required to be completed in the core curriculum.

(f) In lieu of credit for those courses listed in subsection (e) of this Section, credit may be earned for SB2887 Enrolled - 13 - LRB093 20864 AMC 46932 b serving as a licensed instructor in an approved course of continuing education.

(g) Credit hours may be earned for self-study programs SB2887 Engrossed - 13 - LRB093 20864 AMC 46932 b approved by the Advisory Council.

(j) OBRETo shallpromote contractthe withoffering theof Illinoisa Realuniform Estateand Educationconsistent Foundationcourse tocontent, developthe OBRE may provide for the 6-hourdevelopment of a single broker management continuingcourse educationto coursebe andoffered mayby licenseall thecontinuing useeducation ofproviders thatwho coursechoose to alloffer approvedthe broker management continuing education providers.course.

InThe addition, OBRE shallmay contract withfor the providerdevelopment of the testing6-hour servicebroker formanagement licensurecontinuing aseducation acourse brokerwith oran salespersonoutside tovendor developand, andif administerthe ancourse appropriateis testdeveloped toin bethis takenmanner, inthe connectionOBRE withshall license the 6-houruse brokerof managementthat course to all approved continuing education providers who wish to provide the course.

12-31-99.) (225 ILCS 454/15-75 new) (Section scheduled to be repealed on January 1, 2010) Sec.

All exclusive brokerage agreements must specify that the sponsoring brokerbroker, must,through one or more sponsored licensees, must provide, at a minimum, do the following:following services:

(2) assist the client in developing, communicating, negotiating, and presenting offers, counteroffers, and notices that relate to the offers and counteroffers until a SB2887 Enrolled - 14 - LRB093 20864 AMC 46932 b lease or purchase agreement is signed and all contingencies are satisfied or waived;

Section(225 99.ILCS 454/20-20) (Section scheduled to be repealed on January 1, 2010) Sec.

20-20.

Disciplinary actions;

causes.

OBRE may refuse to issue or renew a license, may place on probation, suspend, or revoke any license, or may censure, reprimand, or otherwise discipline or impose a civil fine not to exceed $25,000 upon any licensee hereunder for any one or any combination of the following causes:

(a) When the applicant or licensee has, by false or fraudulent representation, obtained or sought to obtain a license.

(b) When the applicant or licensee has been convicted of any crime, an essential element of which is dishonesty or fraud or larceny, embezzlement, or obtaining money, property, or credit by false pretenses or by means of a confidence game, has been convicted in this or another state of a crime that is a felony under the laws of this State, or has been convicted of a felony in a federal court.

(c) When the applicant or licensee has been adjudged to be a person under legal disability or subject to involuntary admission or to meet the standard for judicial admission as provided in the Mental Health and Developmental Disabilities Code.

(d) When the licensee performs or attempts to perform any act as a broker or salesperson in a retail sales establishment from an office, desk, or space that is not separated from the main retail business by a separate and distinct area within the establishment.

(e) Discipline of a licensee by another state, the District of Columbia, a territory, a foreign nation, a governmental agency, or any other entity authorized to impose discipline if SB2887 Enrolled - 15 - LRB093 20864 AMC 46932 b at least one of the grounds for that discipline is the same as or the equivalent of one of the grounds for discipline set forth in this Act, in which case the only issue will be whether one of the grounds for that discipline is the same or equivalent to one of the grounds for discipline under this Act.

(f) When the applicant or licensee has engaged in real estate activity without a license or after the licensee’s license was expired or while the license was inoperative.

(g) When the applicant or licensee attempts to subvert or cheat on the Real Estate License Exam or continuing education exam or aids and abets an applicant to subvert or cheat on the Real Estate License Exam or continuing education exam administered pursuant to this Act.

(h) When the licensee in performing, attempting to perform, or pretending to perform any act as a broker, salesperson, or leasing agent or when the licensee in handling his or her own property, whether held by deed, option, or otherwise, is found guilty of:

(1) Making any substantial misrepresentation or untruthful advertising.

(2) Making any false promises of a character likely to influence, persuade, or induce.

(3) Pursuing a continued and flagrant course of misrepresentation or the making of false promises through licensees, employees, agents, advertising, or otherwise.