Review of Illinois Real Estate License Law

Review of Key Topics in Illinois Real Estate License Law

Lesson One: Structure and Purpose of Illinois License Law

  • Purpose of the Illinois Real Estate License Act:

    • Protects the public health, safety, and welfare.

    • Ensures high standards of competence, ethics, and professionalism among real estate professionals.

  • Legal Reference:

    • The Act is located in Chapter 225, Act 454 of the Illinois Compiled Statutes.

  • Enforcement Body:

    • Enforced by the Illinois Department of Financial and Professional Regulation.

    • Managed through the Division of Real Estate.

  • Establishment of Regulatory Bodies:

    • Real Estate Administration and Disciplinary Board is established within the Division.

    • Appointment of a Real Estate Coordinator is provided for.

  • Authority of the Secretary of the Department:

    • The Secretary has the authority to issue rules to implement and enforce the Real Estate License Act, based on the recommendations of the Board.

    • Legal Standing of Rules:

    • These rules carry the weight of law.

    • Found in Part 1450 of Title 68 in the Illinois Administrative Code.

  • Licensee Responsibilities:

    • Licensees must comply with all relevant laws and rules.

    • 5 Significance of Compliance:

    • Compliance is essential not just for protecting one's license but also for safeguarding the public and maintaining the integrity of the profession.

Lesson Two: Necessity for Licensure

  • Types of Licenses Issued in Illinois:

    • Broker:

    • Works under a sponsoring broker.

    • Cannot operate independently.

    • Managing Broker:

    • Can oversee other licensees.

    • Can act as their own sponsor.

    • Residential Leasing Agent:

    • License is limited to leasing residential properties.

  • Activities Requiring a Real Estate License:

    • Selling, leasing, listing, or negotiating real estate transactions on behalf of another for compensation or the expectation of compensation.

    • Business activities that involve:

    • Buying or selling real estate.

    • Supervising rent collection or similar activities on behalf of another for compensation.

  • Exemptions to Licensure Requirements:

    • Acting as an owner or on an owner's behalf in specific situations.

    • Serving in a professional or regulated capacity (e.g., government employee).

    • Roles focusing solely on information collection and dissemination (e.g., use of a multiple listing service).

  • Activities Beyond Scope of Licensure:

    • Selling securities.

    • Practicing law.

  • Legal Precedent Reference:

    • Quinlan and Tyson (1966 Illinois Supreme Court Decision):

    • Clarified that real estate licensees may use preprinted purchase agreements.

    • Licensees must avoid preparing other legal documents beyond simple agreements.