Real Estate License Act Overview

Overview of Activities Requiring Licensure in Illinois Real Estate

  • Term Usage: Members may use the term "Realtor®", which is a registered trademark.

Licensing Requirements

  • According to the Illinois Real Estate License Act, the following entities are required to be licensed as a broker or managing broker:
    • Individuals
    • Partnerships
    • Limited Liability Companies (LLCs)
    • Corporations
    • Registered Limited Liability Partnerships (LLPs)
    • Note: Residential leasing agents are excluded from these requirements.

Activities that Require Licensure:

  1. Real Estate Transactions:

    • Sell: Engaging in the sale of real estate.
    • Exchange: Trading real estate properties.
    • Purchase: Buying real estate.
    • Rent or Lease: Involvement in the renting or leasing of real estate.
    • Offer to Perform: Making offers to sell, exchange, purchase, or lease real estate.

  2. Negotiation:

    • Negotiate: Conduct negotiations related to the sale, exchange, purchase, rental, or lease of real estate.
    • Offer or Agree to Negotiate: Includes agreements to negotiate under specified conditions.

  3. Listing Real Estate:

    • List: The act of listing real estate for sale, lease, or exchange.
    • Offer to List: Making offers to list properties.
    • Agree to List: Formulating agreements to list real estate.

  4. Business Patterns:

    • Engaging in a pattern of business that involves buying, selling, marketing, and otherwise dealing in contracts related to real estate.
    • Definition of a Pattern of Business: A pattern includes two or more occasions of any mentioned criteria within a twelve-month period.

  5. Rent Collection Supervision:

    • Supervise the offer, attempt, or agreement to collect rent for real estate.

  6. Advertising Representation:

    • Advertise or hold oneself as engaging in real estate transactions such as buying, selling, exchanging, renting, or leasing.

  7. Lead Procurement:

    • Assist or direct in procuring or referring leads aimed at transactions involving sale, exchange, lease, or rental of real estate.

  8. Transaction Negotiation Assistance:

    • Assist or direct any negotiation intended to facilitate real estate transactions.

  9. Public Open Houses:

    • Open real estate properties to the public for marketing purposes.

  10. Auction Activities:

    • Selling or leasing properties at auction.

  11. Broker Price Opinions:

    • Preparing or providing a broker price opinion or comparative market analysis.

Participation Requirements

  • All active participants in a partnership, including partners or corporation officers, must:
    • Hold a broker's license.
    • If not licensed, they must sign an affidavit of nonparticipation.

Legislation Reference

  • Referenced Legislation: 225 ILCS 454/1-10 (Illinois Compiled Statutes).

Knowledge Check Example

  • Scenario: "Greg's deal or no deal?"
    • Description: Greg, who lacks a license, proposes to find a buyer for Alex's property if Alex pays him $1,000.
    • Alex's Response: Alex declines the proposal.
    • Legal Conclusion: Since Greg never actually received any money, the statement regarding whether he did anything wrong is:
    • Answer Option: True / False (submit answer for assessment).