1. Modern Real Estate Practice in Illinois 7 th Edition Chapter 14: Illinois Real Estate License Law

2. ©2011 Kaplan, Inc. Administration of the Illinois Real Estate License Act Illinois Department of Financial and Professional Regulation (the Department) Division of Professional Regulation Real Estate Coordinator - duties Real Estate Administration and Disciplinary Board –Composition of the Board Advisory Council Real Estate Research and Education Fund

3. ©2011 Kaplan, Inc. Obtaining and Keeping a Real Estate License Services that require a real estate license License exemptions Civil Penalty for the Unlicensed Practice of Real Estate - $25,000 per offense

4. ©2011 Kaplan, Inc. License Categories and Requirements General Requirements –HS or GED –Moral person –Pass license exam –Attorney exemption –Course work good for 4 yrs Broker’s License –Entry level license –21 Yrs old (18 yrs exception) –90 hours instruction –30 hours within first renewal period

5. ©2011 Kaplan, Inc. License Categories and Requirements Managing Broker License –21 yrs old –165 hours (120 + 30 hours for Broker license + 45 hr Managing Broker course) –12 hour Broker Mgr course –2 years experience

6. ©2011 Kaplan, Inc. License Categories and Requirements Corporations, Limited Liability Companies and Partnerships –All officers who manage business must have managing broker license –All partners, members must have managing broker license –Non managing brokers cannot own more than 49%

7. ©2011 Kaplan, Inc. License Categories and Requirements Leasing Agent’s License –18 years old –HS or GED –15 hour instruction –Pass license exam –120 day period without license

8. ©2011 Kaplan, Inc. The Licensing Examination Anyone applying for an original broker, managing broker or leasing agent’s license must receive a passing score on a written exam administered by an independent testing agency (AMP) Two parts 1) national 2) state 75% is passing 4 attempts

9. ©2011 Kaplan, Inc. The Real Estate License The branch license is to be displayed conspicuously in the place of business The licenses of sponsored agents are to be available at the place of business Changing business address or name Leaving or changing firms Inoperative or expired license Nonresidents and license by reciprocity

10. ©2011 Kaplan, Inc. License Fees Licensing fees Expiration and renewal of current licenses –broker –managing broker –leasing agent –business Renewal of expired license – up to two yrs Renewal of expired license – 2 to 5 yrs

11. ©2011 Kaplan, Inc. Continuing Education Requirements Broker –First renewal 30 hours –Six hours per year (12 hours of CE in any license renewal period) Requirements Managing Broker –Six hours per year (12 hours of CE in any license renewal period) –In addition brokers must complete a 12-hour broker management course

12. ©2011 Kaplan, Inc. Continuing Education –Course content Core requirements Electives Courses that may not be used for CE –Exemptions and waivers

13. ©2011 Kaplan, Inc. Your Real Estate Business and the Act Place of Business –Each real estate managing broker actively engaged in the real estate business must maintain a definite office or place of business within Illinois –Exceptions –Branch offices

14. ©2011 Kaplan, Inc. Your Real Estate Business and the Act Employment Agreements Agency relationships Disclosure Handling client funds Personal assistants Advertising regulations Compensation and business practice

15. ©2011 Kaplan, Inc. Disciplinary Provisions and Loss of License Causes for discipline Not subject to discipline –Multiple-client transactions within designated agency –Unlawful actions by associates if no broker knowledge

16. ©2011 Kaplan, Inc. Disciplinary Provisions and Loss of License Procedure for disciplinary hearings Disciplinary consent orders Judicial review Criminal prosecution and penalties Injunctions Disciplinary statute of limitations Index of decisions

17. ©2011 Kaplan, Inc. The Real Estate Recovery Fund Provides a means of compensation for actual monetary losses suffered by any person as a result of certain violations by a licensee or a licensee’s unlicensed employee

18. ©2011 Kaplan, Inc. The Real Estate Recovery Fund Recovery amounts Fund losses held Collection from the recovery fund Statute of limitations Disciplinary action against the licensee Financing the recovery fund