225 ILCS 454/ Real Estate License Act of 2000. (2024)

(225 ILCS 454/Art. 1 heading)

(225 ILCS 454/1-1)
(Section scheduled to be repealed on January 1, 2030)
Sec. 1-1. Short title; Act supersedes Real Estate License Act of 1983. This Act shall be known and may be cited as the Real Estate License Act of2000, and it shallsupersede the Real Estate License Act of 1983 repealed by this Act.
(Source: P.A. 91-245, eff. 12-31-99.)

(225 ILCS 454/1-5)
(Section scheduled to be repealed on January 1, 2030)
Sec. 1-5. Legislative intent. The intent of the General Assembly in enacting this statute is to evaluate thecompetency of personsengaged in the real estate profession and to regulate their activities for theprotection of the public.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/Art. 5 heading)

(225 ILCS 454/5-5)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-5. Residential leasing agent license.
(a) The purpose of this Section is to provide for a limited scope license toenable persons whowish to engage in activities limited to the leasing of residential realproperty for which a license isrequired under this Act, and only those activities, to do so by obtaining a license under this Section.
(b) Notwithstanding the other provisions of this Act, there is herebycreated a residential leasing agentlicense that shall enable the licensee to engage only in residential leasingactivities for which alicense is required under this Act. Such activities include leasing or rentingresidential real property, or attempting, offering, or negotiating to lease orrent residential real property, orsupervising the collection, offer, attempt, or agreement to collect rent forthe use ofresidential realproperty. Nothing in thisSection shall be construed to require a licensed managing broker orbroker to obtain a residential leasingagent license in order to perform leasing activities for which a license isrequired under this Act. Licensed residential leasing agents, including those operating under subsection (d), may engage in activities enumerated within the definition of "residential leasing agent" in Section 1-10 of this Act and may not engage in any activity that would otherwise require a broker's license, including, but not limited to, selling, offering for sale, negotiating for sale, listing or showing for sale, or referring for sale or commercial lease real estate.Licensed residential leasing agents must be sponsored and employed by a sponsoring broker.
(c) The Department, by rule and in accordance with this Act, shall provide for thelicensing of residential leasingagents, including the issuance, renewal, and administration of licenses.
(d) Notwithstanding any other provisions of this Act to the contrary, aperson may engage inresidential leasing activities for which a license is required under this Act,for a period of 120consecutive days without being licensed, so long as the person is acting underthe supervision of asponsoring broker, the sponsoring broker has notified the Department that the person ispursuing licensureunder this Section, and the person has enrolled in the residential leasing agent pre-license education course no later than 60 days after beginning to engage in residential leasing activities. During the 120-day period all requirements of Sections5-10and 5-65 of this Actwith respect to education, successful completion of an examination, and thepayment of all requiredfees must be satisfied. The Department may adopt rules to ensure that the provisions ofthis subsection arenot used in a manner that enables an unlicensed person to repeatedly orcontinually engage inactivities for which a license is required under this Act.
(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)

(225 ILCS 454/5-6)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-6. Social Security Number or Individual Taxpayer Identification Number on license application. In addition to any other information required to be contained in the application, every application for an original license under this Act shall include the applicant's Social Security Number or Tax Identification Number, which shall be retained in the agency's records pertaining to the license. An applicant may provide an Individual Taxpayer Identification Number as an alternative to providing a Social Security Number when applying for a license. As soon as practical, the Department shall assign a separate and distinct identification number to each applicant for a license.
Every application for a renewal or restored license shall require the applicant's identification number.
(Source: P.A. 103-236, eff. 1-1-24.)

(225 ILCS 454/5-7)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-7. Application for residential leasing agent license. Every person who desires to obtain a residential leasing agent license shall apply to the Department in a manner prescribed 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. 101-357, eff. 8-9-19.)

(225 ILCS 454/5-15)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-15. Necessity of managing broker, broker, or residential leasing agent license; ownershiprestrictions.
(a) It is unlawful for any person, as defined in Section 1-10, to act asa managing broker, broker, or residential leasing agent or to advertiseor assume to act as suchmanaging broker, broker or residential leasing agent without a license issued in accordance with this Act and a valid sponsorship registered with the Department, either directly or through its authorized designee.
(b) No corporation shall be granted a license or engage in the business orcapacity, eitherdirectly or indirectly, of a broker, unless every officer of thecorporation who activelyparticipates in the real estate activities of the corporation holds a licenseas a managing broker or brokerand unless every employee who acts as a managing broker, broker, or residential leasing agent for thecorporation holds alicense as a managing broker, broker, or residential leasing agent. All nonparticipating owners or officers shall submit affidavits of nonparticipation as required by the Department. No corporation shall be granted a license if any nonparticipating owner or officer has previously been publicly disciplined by the Department resulting in that licensee being currently barred from real estate practice because of a suspension or revocation.
(c) No partnership shall be granted a license or engage in the business orserve in the capacity,either directly or indirectly, of a broker, unless everypartner in the partnership who actively participates in the real estate activities of the partnershipholds a license as a managing broker or broker and unless every employee who acts as amanaging broker, broker, or residentialleasing agent for the partnership holds a license as a managing broker, broker, or residential leasingagent. All nonparticipating partners shall submit affidavits of nonparticipation as required by the Department. In the case of a registered limited liability partnership (LLP), everypartner in the LLP that actively participates in the real estate activities of the limited liability partnershipmust hold a license as a managing broker or broker and every employee who acts as amanaging broker, broker, or residential leasingagent must hold a license as a managing broker, broker, or residential leasingagent. All nonparticipating limited liability partners shall submit affidavits of nonparticipation as required by the Department. No partnership shall be granted a license if any nonparticipating partner has previously been publicly disciplined by the Department resulting in that licensee being currently barred from real estate practice because of a suspension or revocation.
(d) No limited liability company shall be granted a license or engage in thebusiness or serve inthe capacity, either directly or indirectly, of a broker unlessevery member or manager inthe limited liability company that actively participates in the real estate activities of the limited liability company holds a license as a managing broker or broker andunless every other member and employee whoacts as a managing broker, broker, or residential leasing agent for the limited liability company holdsa license as a managing broker, broker, or residential leasing agent. All nonparticipating members or managers shall submit affidavits of nonparticipation as required by the Department. No limited liability company shall be granted a license if any nonparticipating member or manager has previously been publicly disciplined by the Department resulting in that licensee being currently barred from real estate practice because of a suspension or revocation.
(e) (Blank).
(f) No person, partnership, or business entity shall be granted a license if any owner, officer, director, partner, limited liability partner, member, or manager has been denied a real estate license by the Department in the previous 5 years or is otherwise currently barred from real estate practice because of a suspension or revocation.
(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)

(225 ILCS 454/5-26)
Sec. 5-26. (Repealed).
(Source: P.A. 99-227, eff. 8-3-15. Repealed by P.A. 100-188, eff. 1-1-18.)

(225 ILCS 454/5-29)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-29. Temporary practice as a designated managing broker. Upon the loss of a designated managing broker who is not replaced by the sponsoring broker or in the event of the death or disability of a self-sponsored managing broker, a written request for authorization allowing the continued operation of the office may be submitted to the Department within 15 days of the loss. The Department may issue a written authorization allowing the continued operation, provided that a licensed managing broker or, in the case of the death or disability of a self-sponsored managing broker, the representative of the estate, assumes responsibility, in writing, for the operation of the office and agrees to personally supervise the operation of the office. No such written authorization shall be valid for more than 60 days unless extended by the Department for good cause shown and upon written request by the broker or representative.
(Source: P.A. 103-236, eff. 1-1-24.)

(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, 2030)
Sec. 5-35. Examination; managing broker, broker, or residential leasing agent.
(a) The Department shall authorize examinations at suchtimes 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, or residential leasing agent. Applicants for examination as a managing broker, broker, or residential 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 its designated testing service, shall result in the forfeiture of the examination fee. An applicant shall be eligible to take theexamination only aftersuccessfully completing the education requirementsandattaining theminimum age provided for in Article 5 of this Act. Each applicant shall be required toestablish compliance withthe eligibility requirements in the manner provided by the rulespromulgated forthe administration of this Act.
(b) If a person who has received a passing score on the written examinationdescribed in this Section fails to submit an application and meet allrequirements for a licenseunder this Act withinone year after receiving a passing score on the examination, credit for theexamination shallterminate. The person thereafter may make a new application for examination.
(c) If an applicant has failed an examination 4 consecutive times, the applicant mustrepeat the pre-licenseeducation required to sit for that examination. For the purposes of thisSection, the fifth attemptshall be the same as the first. Approved education, as prescribed by this Actfor licensure as amanaging broker, broker, or residential leasing agent, shall be valid for 2 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. 101-357, eff. 8-9-19.)

(225 ILCS 454/5-40)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-40. Sponsorship; establishing and terminating sponsorship.
(a) The sponsoring broker shall notify the Department, in a manner prescribed by the Department, of each licensee employed by or associated with the sponsoring broker within 24 hours after establishing a sponsorship.
(b) When a licensee terminates his or her employment or association with asponsoring brokeror the employment is terminated by the sponsoring broker, the person or entity initiating the termination shall notify the Department, in a manner prescribed by the Department, of the termination within 24 hours. Failure to timely notify the Department of the termination shall subject the person or entity initiating the termination to discipline under Section 20-20 of this Act.Thelicense of any licenseewhose association with a sponsoring broker is terminated shall automaticallybecome inactive immediately upon the termination, and the licensee shall not be authorized to practice until a new valid sponsorship is registered with the Department.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/5-41)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-41. Licensee contact information. An applicant or licensee shall inform the Department of any change of address, email address, telephone number, or office location within 24 hours after any such change. A licensee shall notify the Department of any such change either through the Department's website or by other means prescribed by the Department.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/5-46)
Sec. 5-46. (Repealed).
(Source: P.A. 97-333, eff. 8-12-11. Repealed by P.A. 99-227, eff. 8-3-15.)

(225 ILCS 454/5-47)
Sec. 5-47. (Repealed).
(Source: P.A. 96-856, eff. 12-31-09. Repealed by P.A. 99-227, eff. 8-3-15.)

(225 ILCS 454/5-50)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-50. Expiration and renewal of managing broker, broker, or residentialleasing agent license; sponsoring broker;register of licensees.
(a) The expiration date and renewal period for each license issued underthis Act shall be set byrule. Except as otherwise provided in this Section, the holder ofalicense may renewthe license within 90 days preceding the expiration date thereof by completing the continuing education required by this Act and paying thefees specified byrule.
(b) An individual whose first license is that of a broker received on or after the effective date of this amendatory Act of the 101st General Assembly, must provide evidence of having completed 45 hours of post-license education presented in a classroom or a live, interactive webinar, or online distance education course, and which shall require passage of a final examination.
The Board may recommend, and the Department shall approve, 45 hours of post-license education, consisting of three 15-hour post-license courses, one each that covers applied brokerage principles, risk management/discipline, and transactional issues. Each of the courses shall require its own 50-question final examination, which shall be administered by the education provider that delivers the course.
Individuals whose first license is that of a broker received on or after the effective date of this amendatory Act of the 101st General Assembly, must complete all three 15-hour courses and successfully pass a course final examination for each course prior to the date of the next broker renewal deadline, except for those individuals who receive their first license within the 180 days preceding the next broker renewal deadline, who must complete all three 15-hour courses and successfully pass a course final examination for each course prior to the second broker renewal deadline that follows the receipt of their license.
(c) Any managing broker, broker, or residential leasing agent whose license under this Act has expired shall be eligible to renew the license during the 2-year period following the expiration date, provided the managing broker, broker, or residential leasing agent pays the fees as prescribed by rule and completes continuing education and other requirements provided for by the Act or by rule. A managing broker, broker, or residential leasing agent whose license has been expired for more than 2 years but less than 5 years may have it restored by (i) applying to the Department, (ii) paying the required fee, (iii) completing the continuing education requirements for the most recent term of licensure that ended prior to the date of the application for reinstatement, and (iv) filing acceptable proof of fitness to have the license restored, as set by rule. A managing broker, broker, or residential leasing agent whose license has been expired for more than 5 years shall be required to meet the requirements for a new license.
(d) Notwithstanding any other provisions of this Act to the contrary, any managing broker, broker, or residential leasing agent whose license expired while the licensee was (i) on active duty with the Armed Forces of the United States or called into service or training by the state militia, (ii) engaged in training or education under the supervision of the United States preliminary to induction into military service, or (iii) serving as the Coordinator of Real Estate in the State of Illinois or as an employee of the Department may have the license renewed, reinstated or restored without paying any lapsed renewal fees, and without completing the continuing education requirements for that licensure period if within 2 years after the termination of the service, training or education the licensee furnishes the Department with satisfactory evidence of service, training, or education and termination under honorable conditions.
(e) Each licensee shall carry on one's person the license or an electronic version thereof.
(f) The Department shall provide to the sponsoring broker a notice of renewal for all sponsored licensees by mailing the notice to the sponsoring broker's address of record, or, at the Department's discretion, emailing the notice to the sponsoring broker's email address of record.
(g) Upon request from the sponsoring broker, the Department shall make available to the sponsoring broker, by electronic means at the discretion of the Department, a listing of licensees under this Act who, according to the records of the Department, are sponsored by that broker. Every licensee associated with or employed by a broker whose license is revoked, suspended, or expired shall be considered inactive until such time as the sponsoring broker's license is reinstated or renewed, or a new valid sponsorship is registered with the Department as set forth in subsection (b) of Section 5-40 of this Act.
(h) The Department shall not issue or renew a license if the applicant or licensee has an unpaid fine or fee from a disciplinary matter or from a non-disciplinary action imposed by the Department until the fine or fee is paid to the Department or the applicant or licensee has entered into a payment plan and is current on the required payments.
(i) The Department shall not issue or renew a license if the applicant or licensee has an unpaid fine or civil penalty imposed by the Department for unlicensed practice until the fine or civil penalty is paid to the Department or the applicant or licensee has entered into a payment plan and is current on the required payments.
(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)

(225 ILCS 454/5-55)
Sec. 5-55. (Repealed).
(Source: P.A. 91-245, eff. 12-31-99. Repealed by P.A. 96-856, eff. 12-31-09.)

(225 ILCS 454/5-65)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-65. Fees. The Department shall provide by rule for fees to be paid by applicants and licensees tocover the reasonablecosts of the Department in administering and enforcing the provisions of this Act. The Department may also provideby rule for general fees to cover the reasonable expenses of carrying out otherfunctions andresponsibilities under this Act.
(Source: P.A. 96-856, eff. 12-31-09.)

(225 ILCS 454/5-75)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-75. Out-of-state continuing education credit. If a renewal applicant has earned continuing education hours in another stateor territory for which the applicant is claiming credit toward full compliance in Illinois, the Department mayapprove those hours based upon whether the course is one thatwould be approvedunder Section 5-70 of this Act, whether the course meets the basic requirementsforcontinuing education underthis Act, and any other criteria that are provided by statute or rule.
(Source: P.A. 103-236, eff. 1-1-24.)

(225 ILCS 454/5-80)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-80. Evidence of compliance with continuing education requirements.
(a) Each renewal applicant shall certify, on his or her renewal application,full compliance withcontinuing education requirements set forth in Section 5-70. The education provider shallretain and submit to the Department after the completion of each course evidence of thosesuccessfullycompleting the course as provided by rule.
(b) The Department may require additional evidence demonstrating compliance with thecontinuingeducation requirements. The renewal applicant shall retain and produce theevidence ofcompliance upon request of the Department.
(Source: P.A. 100-188, eff. 1-1-18.)

(225 ILCS 454/5-85)
Sec. 5-85. (Repealed).
(Source: P.A. 96-856, eff. 12-31-09. Repealed by P.A. 100-188, eff. 1-1-18.)

(225 ILCS 454/Art. 10 heading)

(225 ILCS 454/10-5)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-5. Payment of compensation.
(a) No licensee shall pay compensation directly to a licensee sponsored byanother sponsoring broker forthe performance of licensed activities. No licensee sponsored by a broker maypay compensation toany licensee other than his or her sponsoring broker for the performance oflicensed activitiesunless the licensee paying the compensation is a principal to the transaction.However, a non-sponsoring broker may pay compensation directly to a licenseesponsored byanother or a personwho is not sponsored by a broker if the payments are made pursuant to terms ofan employmentagreement that was previously in place between a licensee and thenon-sponsoring broker, and thepayments are for licensed activity performed by that person while previouslysponsored by the nownon-sponsoring broker.
(b) No licensee sponsored by a broker shall accept compensation for theperformance ofactivities under this Act except from the broker by whom the licensee issponsored, except asprovided in this Section.
(c) (Blank).
(d) One sponsoring broker may pay compensation directly to anothersponsoring broker for theperformance of licensed activities.
(e) Notwithstanding any other provision of this Act, a sponsoring broker may pay compensation to a person currently licensed under the Auction License Act who is in compliance with and providing services under Section 5-32 of this Act.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/10-10)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-10. Disclosure of compensation.
(a) A licensee must disclose to a client the sponsoring broker'scompensation and policy withregard to cooperating with brokers who represent other parties in atransaction.
(b) A licensee must disclose to a client all sources of compensation relatedto the transactionreceived by the licensee from a third party.
(c) If a licensee refers a client to a third party in which the licensee hasgreater than a 1% ownership interestor from which the licensee receives or may receive dividends or other profitsharing distributions, other than apublicly held or traded company, for the purpose of the client obtainingservices related to the transaction, then thelicensee shall disclose that fact to the client at the time of making thereferral.
(d) If in any one transaction a sponsoring broker receives compensation fromboth the buyerand seller or lessee and lessor of real estate, the sponsoring broker shalldisclose in writing to aclient the fact that the compensation is being paid by both buyer and seller orlessee and lessor.
(e) Nothing in the Act shall prohibit the cooperation with or a payment ofcompensation to an individual domiciled in any other state or country who is licensed as a broker inhis or her state or country of domicile or to a resident of a countrythat does not require a person to be licensed to act as a broker ifthe person complies with the laws of the country in which that person residesand practices there as a broker.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/10-15)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-15. No compensation to persons in violation of Act; compensationto unlicensedpersons; consumer.
(a) No compensation may be paid to any unlicensed person in exchange for thepersonperforming licensed activities in violation of this Act.
(b) No action or suit shall be instituted, nor recovery therein be had, inany court of this Stateby any person for compensation for any act done or service performed, the doingor performing ofwhich is prohibited by this Act to other than licensed managing brokers, brokers,or residential leasing agents unlessthe person was dulylicensed hereunder as a managing broker,broker, or residential leasing agent under this Act at the time that any suchact was done or serviceperformed that would give rise to a cause of action for compensation.
(c) A licensee may offer compensation, including prizes, merchandise,services, rebates,discounts, or other consideration to an unlicensed person who is a party to acontract to buy or sellreal estate or is a party to a contract for the lease of real estate, so longas the offer complies withthe provisions of subdivision (35) of subsection (a) of Section 20-20 of thisAct.
(d) A licensee may offer cash, gifts, prizes, awards, coupons, merchandise,rebates or chancesto win a game of chance, if not prohibited by any other law or statute,to a consumer as aninducement to that consumer to use the services of the licensee even if thelicensee and consumerdo not ultimately enter into a broker-client relationship so long as the offercomplies with theprovisions of subdivision (35) of subsection (a) of Section 20-20 of this Act.
(e) A licensee shall not pay compensation to an unlicensed person who is not or will not become a party to a real estate transaction in exchange for a referral of real estate services.
(f) Nothing in this Section shall be construed as waiving or abrogating the provisions of the Real Estate Settlement Procedures Act (RESPA), 88 Stat. 1724.
(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)

(225 ILCS 454/10-20)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-20. Sponsoring broker; employment agreement.
(a) A licensee may perform activities as a licensee only for his or hersponsoring broker. Alicensee must have only one sponsoring broker at any one time.
(b) Every broker who employs licensees or has an independent contractorrelationship with alicensee shall have a written employment or independent contractor agreement with each such licensee.Thebroker havingthis written employment or independent contractor agreement with the licensee must be that licensee'ssponsoring broker.
(c) Every sponsoring broker must have a written employment or independent contractor agreement witheach licensee thebroker sponsors. The agreement shall address the employment or independentcontractorrelationship terms, including without limitation supervision,duties, compensation, andtermination process.
(d) (Blank).
(e) Notwithstanding the fact that a sponsoring broker has an employment or independent contractoragreement with alicensee, a sponsoring broker may pay compensation directly to a business entitysolely owned by thatlicensee that has been formed for the purpose of receiving compensation earnedby the licensee.A business entity that receives compensation from a sponsoring broker as provided for in this subsection (e) shallnot be required to belicensed under this Act and must either be owned solely by the licensee or by the licensee together with the licensee's spouse, but only if the spouse and licensee are both licensed and sponsored by the same sponsoring broker or the spouse is not also licensed.
(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)

(225 ILCS 454/10-25)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-25. Expiration of brokerage agreement. No licensee shall obtain any written brokerage agreement that does not either providefor automaticexpiration within a definite period of time, and if longer than one year, provide the client with a right to terminate the agreement annually by giving no more than 30 days' prior written notice. Any written brokerage agreement not containing such a provision shall be void. When the license of any sponsoring broker issuspended or revoked, anybrokerage agreement with the sponsoring broker shall be deemed to expire uponthe effective dateof the suspension or revocation.
(Source: P.A. 103-236, eff. 1-1-24.)

(225 ILCS 454/10-27)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-27. Disclosure of licensee status. Each licensee shall disclose,in writing, his or her status as a licensee to all parties in a transactionwhen the licensee is selling, leasing, or purchasing any interest, direct orindirect, in the real estate that is the subject of the transaction.
(Source: P.A. 91-245, eff. 12-31-99.)

(225 ILCS 454/10-40)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-40. Company policy. Every brokerage company or entity, other than a sole proprietorship with no other sponsored licensees, shall adopt a company or office policy dealing with topics such as:
(1) the agency policy of the entity;
(2) fair housing, nondiscrimination and harassment;
(3) confidentiality of client information;
(4) advertising;
(5) training and supervision of sponsored licensees;
(6) required disclosures and use of forms;
(7) handling of risk management matters; and
(8) handling of earnest money and escrows.
These topics are provided as an example and are not intended to be inclusive or exclusive of other topics.
(Source: P.A. 96-856, eff. 12-31-09.)

(225 ILCS 454/10-50)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-50. Guaranteed sales plans.
(a) As used in this Section, a "guaranteed sales plan" means a real estate purchase or sales plan whereby a licensee enters into one or more conditional or unconditional written contracts with a seller, one of which is a brokerage agreement, and wherein the person agrees to purchase the seller's property within a specified period of time, at a specific price, in the event the property is not sold in accordance with the terms of a brokerage agreement to be entered into between the sponsoring broker and the seller.
(b) A person who offers a guaranteed sales plan to consumers is engaged in licensed activity under this Act and is required to have a license.
(c) A licensee offering a guaranteed sales plan shall provide the details, including the purchase price, and conditions of the plan, in writing to the party to whom the plan is offered prior to entering into the brokerage agreement.
(d) A licensee offering a guaranteed sales plan shall provide to the party to whom the plan is offered evidence of sufficient financial resources to satisfy the commitment to purchase undertaken by the broker in the plan.
(e) A licensee offering a guaranteed sales plan shall undertake to market the property of the seller subject to the plan in the same manner in which the broker would market any other property, unless the agreement with the seller provides otherwise.
(f) The licensee may not purchase seller's property until the period for offering the property for sale has ended according to its terms or is otherwise terminated.
(g) Any licensee who fails to perform on a guaranteed sales plan in strict accordance with its terms shall be subject to all the penalties provided in this Act for violations thereof and, in addition, shall be subject to a civil fine payable to the party injured by the default in an amount of up to $25,000.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/10-55)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-55. Designated managing broker responsibility and supervision.
(a) A designated managing broker shall be responsible for the supervision of all licensees associated with a designated managing broker's office. A designated managing broker's responsibilities include implementation of company policies, the training of licensees and other employees on the company's policies as well as on relevant provisions of this Act, and providing assistance to all licensees in real estate transactions. The designated managing broker shall be responsible for, and shall supervise, all special accounts of the company.
(b) A designated managing broker's responsibilities shall further include directly handling all earnest money, escrows, and contract negotiations for all transactions where the designated agent for the transaction has not completed his or her 45 hours of post-license education, as well as the approval of all advertisem*nts involving a licensee who has not completed his or her 45 hours of post-license education. Licensees that have not completed their 45 hours of post-license education shall have no authority to bind the sponsoring broker.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/Art. 15 heading)

(225 ILCS 454/15-5)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-5. Legislative intent.
(a) The General Assembly finds that application of the common law of agencyto therelationships among licensees under this Act and consumers of realestate brokerageservices has resulted in misunderstandings and consequences that have beencontrary to the bestinterests of the public. The General Assembly further finds that the realestate brokerage industryhas a significant impact upon the economy of the State of Illinois and that it is in the best interest ofthe public to provide codification of the relationships between licensees under this Act and consumers of real estate brokerage services in order to prevent detrimental misunderstandingsand misinterpretations of the relationships by consumers, managing brokers, and brokers andthus promote and provide stability in the real estate market. This Article 15is enacted to govern therelationships between consumers of real estate brokerage services and licensees under this Act to the extent not governed by an individual writtenagreement between asponsoring broker and a consumer, providing thatthere is a relationship other than designated agency.ThisArticle 15 applies tothe exclusion of the common law concepts of principal and agent and to thefiduciary duties, whichhave been applied to managing brokers, brokers, and real estatebrokerage services.
(b) The General Assembly further finds that this Article 15 is not intendedtoprescribe or affectcontractual relationships between managing brokers and brokers and the broker'saffiliated licensees.
(c) This Article 15 may serve as a basis for private rights of action anddefenses by sellers, buyers,landlords, tenants, managing brokers, and brokers. Theprivate rights of action,however, do not extend to any other Articlesof thisAct.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/15-10)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-10. Relationships between licensees and consumers. Licensees shall be considered to be representing the consumer they are workingwith as adesignated agent for the consumer unless there is a written agreement between the sponsoring broker and the consumer providing that there is a different relationship.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/15-20)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-20. Failure to disclose information not affecting physicalcondition. No cause of action shall arise against a licensee for the failureto disclose:(i) that an occupant of the property was afflicted with Human ImmunodeficiencyVirus (HIV) or any other medical condition;(ii) that the property was the site of an act or occurrence that had no effecton the physical condition of the property or its environment or the structureslocated thereon;(iii) fact situations on property that is not the subject of the transaction;or(iv) physical conditions located on property that is not the subject of thetransaction that do not have a substantial adverse effect on the value of thereal estate that is the subject of the transaction.
(Source: P.A. 91-245, eff. 12-31-99; 92-16, eff. 6-28-01.)

(225 ILCS 454/15-25)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-25. Licensee's relationship with customers. Licensees shall treat all customers honestly and shall not negligentlyor knowingly givethem false information. A licensee engaged by a seller client shall timelydisclose to customerswho are prospective buyers all latent material adverse facts pertaining to thephysical condition ofthe property that are actually known by the licensee and that could not bediscovered by areasonably diligent inspection of the property by the customer. A licenseeshall not be liable to acustomer for providing false information to the customer if the falseinformation was provided tothe licensee by the licensee's client and the licensee did not have actualknowledge that theinformation was false. No cause of action shall arise on behalf of any personagainst a licensee forrevealing information in compliance with this Section.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/15-40)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-40. Compensation does not determine agency. Compensation does not determine agency relationship. The payment or promise ofpayment ofcompensation to a licensee is not determinative of whether an agencyrelationship has been createdbetween any licensee and a consumer.
(Source: P.A. 91-245, eff. 12-31-99.)

(225 ILCS 454/15-50)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-50. Designated agency.
(a) A sponsoring broker entering into an agreement with any person for thelisting of propertyor for the purpose of representing any person in the buying, selling,exchanging, renting, or leasingof real estate shall specifically designate those licensees employed by oraffiliated with thesponsoring broker who will be acting as legal agents of that person to theexclusion of all otherlicensees employed by or affiliated with the sponsoring broker. A sponsoringbroker entering intoan agreement under the provisions of this Section shall not be considered to beacting for more thanone party in a transaction if the licensees specifically designated as legalagents of a person are notrepresenting more than one party in a transaction.
(b) A sponsoring broker designating affiliated licensees to act as agents of clients shall takeordinary and necessary care to protect confidential information disclosed by a client to his or herdesignated agent.
(c) A designated agent may disclose to his or her sponsoring broker orpersons specified by thesponsoring broker confidential information of a client for the purpose ofseeking advice orassistance for the benefit of the client in regard to a possible transaction.Confidential informationshall not be disclosed by the sponsoring broker or other specifiedrepresentative of the sponsoringbroker unless otherwise required by this Act or requested or permittedby the client whooriginally disclosed the confidential information.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/15-55)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-55. No subagency. A broker is not considered to be a subagent of a client of another brokersolely by reason ofmembership or other affiliation by the brokers in a multiple listing service orother similarinformation source, and an offer of subagency may not be made through amultiple listing serviceor other similar information source.
(Source: P.A. 91-245, eff. 12-31-99.)

(225 ILCS 454/15-60)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-60. Vicarious liability. A consumer shall not be vicariously liable for the acts or omissions of alicensee in providinglicensed activities for or on behalf of the consumer.
(Source: P.A. 91-245, eff. 12-31-99.)

(225 ILCS 454/15-65)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-65. Regulatory enforcement. Nothing contained in this Article limits the Department in its regulation of licenseesunder other Articles ofthis Act and the substantive rules adopted by the Department. The Department isauthorized to adopt any rules that may be necessary for the implementationand enforcementof this Article 15.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/15-70)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-70. Actions for damages.
(a) In any action brought under this Article 15, the court may, in itsdiscretion, award onlyactual damages and court costs or grant injunctive relief, when appropriate.
(b) Any action under this Article 15 shall be forever barred unlesscommenced within 2years after the person bringing the action knew or should reasonably have knownof such act oromission. In no event shall the action be brought more than 5 years after thedate on whichthe act or omission occurred. If the person entitled to bring the action isunder the age of 18 orunder legal disability the period of limitations shall not begin to run untilthe disability is removed.
(Source: P.A. 91-245, eff. 12-31-99.)

(225 ILCS 454/Art. 20 heading)

(225 ILCS 454/20-5)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-5. Index of decisions. The Department shall maintain an index of formal decisions regarding the issuance,refusal to issue, renewal,refusal to renew, revocation, and suspension of licenses and probationary orother disciplinaryaction taken under this Act. Theindex shall be available to the public during regular business hours.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/20-10)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-10. Unlicensed practice; civil penalty.
(a) Any person who practices, offers to practice, attempts to practice, orholds oneself out topractice as a managing broker, broker, or residential leasing agentwithout being licensed underthis Act shall, in addition to any other penalty provided by law, pay a civil penalty to the Department in anamount not to exceed $25,000 for each offense as determined by the Department. The civil penalty shall beassessed by the Department after a hearing is held in accordance with the provisions setforth in this Actregarding the provision of a hearing for the discipline of a license.
(b) The Department has the authority and power to investigate any and all unlicensedactivity.
(c) The civil penalty shall be paid within 60 days after the effective date ofthe order imposing thecivil penalty. The order shall constitute a judgment and may be filed andexecution had thereon in thesame manner from any court of record.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/20-15)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-15. Violations. The commission of a single act prohibited by this Act or prohibited by therules adopted underthis Act or a violation of a disciplinary order issued under this Actconstitutes a violation of thisAct.
(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/20-20.1)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-20.1. Citations.
(a) The Department may adopt rules to permit the issuance of citations to any licensee for failure to comply with the continuing education and post-license education requirements set forth in this Act or as adopted by rule. The citation shall be issued to the licensee, and a copy shall be sent to the licensee's designated managing broker and sponsoring broker. The citation shall contain the licensee's name and address, the licensee's license number, the number of required hours of continuing education or post-license education that have not been successfully completed by the licensee's renewal deadline, and the penalty imposed, which shall not exceed $2,000. The issuance of any such citation shall not excuse the licensee from completing all continuing education or post-license education required for that term of licensure.
(b) Service of a citation shall be made by in person, electronically, or by mail to the licensee at the licensee's address of record or email address of record, and must clearly state that if the cited licensee wishes to dispute the citation, the cited licensee may make a written request, within 30 days after the citation is served, for a hearing before the Department. If the cited licensee does not request a hearing within 30 days after the citation is served, then the citation shall become a final, non-disciplinary order, and any fine imposed is due and payable within 60 days after that final order. If the cited licensee requests a hearing within 30 days after the citation is served, the Department shall afford the cited licensee a hearing conducted in the same manner as a hearing provided for in this Act for any violation of this Act and shall determine whether the cited licensee committed the violation as charged and whether the fine as levied is warranted. If the violation is found, any fine shall constitute non-public discipline and be due and payable within 30 days after the order of the Secretary, which shall constitute a final order of the Department. No change in license status may be made by the Department until such time as a final order of the Department has been issued.
(c) Payment of a fine that has been assessed pursuant to this Section shall not constitute disciplinary action reportable on the Department's website or elsewhere unless a licensee has previously received 2 or more citations and has been assessed 2 or more fines.
(d) Nothing in this Section shall prohibit or limit the Department from taking further action pursuant to this Act and rules for additional, repeated, or continuing violations.
(Source: P.A. 102-970, eff. 5-27-22; 103-236, eff. 1-1-24.)

(225 ILCS 454/20-21)
Sec. 20-21. (Repealed).
(Source: P.A. 101-357, eff. 8-9-19. Repealed by P.A. 102-970, eff. 5-27-22.)

(225 ILCS 454/20-21.1)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-21.1. Injunctions; cease and desist order.
(a) If any person violates the provisions of this Act, the Secretary may, in the name of the People of the State of Illinois, through the Attorney General or the State's Attorney for any county in which the action is brought, petition for an order enjoining the violation or for an order enforcing compliance with this Act. Upon the filing of a verified petition in court, the court may issue a temporary restraining order, without notice or condition, and may preliminarily and permanently enjoin the violation. If it is established that the person has violated or is violating the injunction, the court may punish the offender for contempt of court. Proceedings under this Section shall be in addition to, and not in lieu of, all other remedies and penalties provided by this Act.
(b) If, in the opinion of the Department, a person violates a provision of this Act, the Department may issue a ruling to show cause why an order to cease and desist should not be entered against that person. The rule shall clearly set forth the grounds relied upon by the Department and shall allow at least 7 days from the date of the rule to file an answer to the satisfaction of the Department. Failure to answer to the satisfaction of the Department shall cause an order to cease and desist to be issued immediately.
(c) Other than as provided in Section 5-20 of this Act, if any person practices as a managing broker, broker, or residential leasing agent or holds themselves out as a licensed sponsoring broker, managing broker, broker, or residential leasing agent under this Act without being issued a valid active license by the Department, then any licensed sponsoring broker, managing broker, broker, residential leasing agent, any interested party, or any person injured thereby may, in addition to the Secretary, petition for relief as provided in subsection (a).
(Source: P.A. 103-236, eff. 1-1-24.)

(225 ILCS 454/20-22)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-22. Violations. Any person who is found working or acting as a managing broker, broker, or residential leasing agent or holding oneself out as a licensed sponsoring broker, managing broker, broker, or residential leasing agent without being issued a valid active license is guilty of a Class A misdemeanor and, on conviction of a second or subsequent offense, the violator shall be guilty of a Class 4 felony.
(Source: P.A. 103-236, eff. 1-1-24.)

(225 ILCS 454/20-23)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-23. Confidentiality. All information collected by the Department in the course of an examination or investigation of a licensee or applicant, including, but not limited to, any complaint against a licensee, applicant, or any person who holds oneself out as a licensee or applicant that is filed with the Department and information collected to investigate any such complaint, shall be maintained for the confidential use of the Department and shall not be disclosed. The Department may not disclose the information to anyone other than law enforcement officials, regulatory agencies that have an appropriate regulatory interest as determined by the Secretary, or a party presenting a lawful subpoena to the Department. Information and documents disclosed to a federal, State, county, or local law enforcement agency shall not be disclosed by the agency for any purpose to any other agency or person. A formal complaint filed against a licensee by the Department or any order issued by the Department against a licensee or applicant shall be a public record, except as otherwise prohibited by law.
(Source: P.A. 103-236, eff. 1-1-24.)

(225 ILCS 454/20-25)
(Section scheduled to be repealed on January 1, 2030)
Sec. 20-25. Returned checks and dishonored credit card charges; fees. Any person who (1) delivers a check or other payment to the Department that is returned to the Department unpaid bythe financial institution upon which it is drawn shall pay to the Department; or (2) presents a credit or debit card for payment that is invalid or expired or against which charges by the Department are declined or dishonored, in additionto the amountalready owed to the Department, a fee of $50. The Department shall notify the person that payment of fees and fines shall be paid to the Department by certifiedcheck or money order within 30 calendar days of the notification. If, afterthe expiration of 30 daysfrom the date of the notification, the person has failed to submit thenecessary remittance, the Departmentshall automatically revoke the license or deny the application, without hearing. If, after revocation or denial, the person seeks a license, the person shall apply to the Department for restoration orissuance of the license and pay all fees and fines due to the Department. The Department mayestablish a fee for theprocessing of an application for restoration of a license to pay all expensesof processing thisapplication. The Secretary may waive the fees due under this Section inindividual caseswhere the Secretary finds that the fees would be unreasonable orunnecessarily burdensome.
(Source: P.A. 103-236, eff. 1-1-24.)

(225 ILCS 454/20-30)
Sec. 20-30. (Repealed).
(Source: P.A. 91-245, eff. 12-31-99. Repealed by P.A. 96-856, eff. 12-31-09.)

(225 ILCS 454/20-35)
Sec. 20-35. (Repealed).
(Source: P.A. 91-245, 12-31-99. Repealed by P.A. 96-856, eff. 12-31-09.)

(225 ILCS 454/20-40)
Sec. 20-40. (Repealed).
(Source: P.A. 91-245, eff. 12-31-99. Repealed by P.A. 96-856, eff. 12-31-09.)