16.6-16.10

broker initial license fee is

$125

initial broker's license fee for a partnership, LLC, or corporation is

$125

Managing broker initial fee

$150

the leasing license initial fee is

$75

Included in the initial license fees are a Real Estate Recovery Fund fee of $__ arid a Real Estate Research and Education fee of $_

10, 5

Section __-_, disclosure of compensation The Act holds that clients must be made aware of compensation, source of compensation, and the sponsoring broker's policy on sharing commission with cooperating brokers.

10-5

Renewal Fee Leasing agent - $

100

Continuing Education Hours — Requirements managing broker

12 hours per year — 24 hours each 2 year renewal

Article __ deals with the licensee's relationships with the public. This article indicates specific standards to be held to in agency relationships. It clearly indicates that "the law of agency under this Act ... primarily governs the actions of licensees, not common law."

15

Article __, material facts disclosure A licensee must disclose to the client "material facts concerning the transaction of which the licensee has actual knowledge, unless that information is confidential information.

15

It is the licensee's responsibility to promptly notify the Department of any change of name, address, or office location. When a licensee acquires or transfers any interest in a corporation, LLC, partnership, or LLP that is licensed under the Real Estate License Act of 2000, appropriate change of business information must be filed with the Department. Additionally, any changes in managing brokers, branch managers, or principal officers must be reported in writing to the Department within __ days after the change.

15

Note that Article __ of the Real Estate License Act of 2000, as amended in 2010, is the only section of the Act that has private right of action.

15

The name of the branch office must be the same as the primary real estate office or closely linked to it. The Department must be notified immediately in writing of any change of a primary or branch office location and within __ days of a change of a managing broker for any branch.

15

Article __ (Agency) also clearly notes the following: Offers of sub-agency through the multiple listing service (MLS) are not permitted in Illinois. A consumer cannot be held "vicariously liable" for the acts or omissions of a licensee in providing licensed activities for or on behalf of the consumer. The Department may further amplify anything in Article __ by way of promulgating additional rules at any time. There is a time limit on legal actions. Legal actions under Article __ may be forever barred "unless commenced within _ years after the person bringing the action knew or should reasonably have known of such act or omission." In no case may actions be brought after more than _ years.Disclosure What Must Be Disclosed: Material facts of a property Known latent physical defects Agency relationships Designated agency Dual agency Lack of agency (to a purchasing customer) — No Agency Disclosure Form Compensation sources

15, 2, 5

In the event a sponsoring broker dies or a managing broker leaves a branch office unexpectedly, a request may be made to the Department within __ days of the loss to grant an extension for continued office operations. The extension may be granted for up to __ days unless extended by the Department for good cause shown and upon written request by the broker or representative.

15, 60

Replacing common law, Section __-__ notes the statutory duties a licensee has toward her client

15-15

section __-__deals with a licensee's treatment of customers. A licensee shall "treat all customers honestly and shall not negligently or knowingly give them false information." Ministerial acts are permitted.

15-25

Section __-__, agency relationship disclosure before a listing agreement, buyer agency agreement, or any other brokerage agreement may be created, a consumer must be told in writing

15-35

Section __-__ clearly states that compensation does not determine agency.

15-40

Informed written consent is required of both buyer and seller for dual agency under Section __-__ of the Act.

15-45

This alternative to Dual Agency is highlighted in Section __-__. This allows the sponsoring broker to appoint or designate one agent for the buyer and one agent for the seller, even within the same firm, without legally being construed as a dual agent. The broker is obligated to protect any confidential information. Because of this, "a designated agent may disclose to his or her sponsoring broker (or persons specified by the sponsoring broker) confidential information of a client for the purpose of seeking advice or assistance for the benefit of the client in regard to a possible transaction."

15-50

Section __.__ sets out the basic relationship with consumers by saying "licensees shall be considered to be representing the consumer they are working with as a designated (implied) agent for the consumer unless :

15.10

renewal fee broker

150

When a licensee quits or the sponsoring broker or a managing broker terminates the licensee's employment with the sponsoring broker for any reason, 1.the licensee must obtain her license from the employing broker at whose firm it has been kept. 2The employing broker signs the license, which indicates that the relationship has been terminated. 3.The broker gives the licensee the original, signed license. 4.The broker must send the Department a copy of the signed license within _ days of the termination 5.The signed license automatically becomes inoperative, as does the licensee's ability to practice real estate, unless she accepts employment with a new sponsoring broker.

2

Brokers, managing brokers, and leasing agents may renew their expired licenses (provided they pay the necessary fees and meet the continuing education and other requirements) for up to _ years following license expiration. Beyond this _-year period, licensees will be required to meet the qualifications for new licenses set out by the Act.

2 years

renewal fee managing broker

200

Managing brokers seeking to renew their licenses, beginning with the first pre-renewal period following obtaining a Managing Broker's License, complete a __ hour Department-approved CE course on broker management during each pre-renewal period and, at the conclusion of the course, take and pass a test developed and administered according to Department specifications.

24

immediately complete a sponsor card for the licensee to carry until a new license and pocket card (with the new firm's name indicated as sponsor) arrives. prepare and send a duplicate sponsor card to the Department for this transition period within __ hours of sponsorship, along with the original signed license from the previous sponsoring broker and the required fee.

24,If the licensee is simply changing brokers, the new sponsoring broker will :

Continuing Education Hours — Requirements Leasing Agent —

3 hours per year 6 hours each 2 year renewal

Returned check penalties and failure to pay (Section 20-25) Anyone who delivers a check or other payment to the Department that is returned for insufficient funds must pay a returned check fine of $50, plus the amount originally owed. If the licensee fails to make full payment of all fees and fines owed within __ calendar days of the notification that payment is due, the Department will automatically terminate the license or deny the application without a hearing. The licensee may apply for restoration or issuance of the license and pay all fees and fines due the Department.

30

After passing the state exam, the person is given a blank sponsor card at the testing site with her picture on it. When completed by a sponsoring broker, this sponsor card is valid for __ days while the wall license and pocket card are being processed.

45

Returned check penalties and failure to pay (Section 20-25) Anyone who delivers a check or other payment to the Department that is returned for insufficient funds must pay a returned check fine of $__ plus the amount originally owed

50

Other Continuing Education Rules: Credit hours may be earned for self-study programs A broker or managing broker may earn credit for a specific CE course only once during the pre-renewal period. No more than _ hours of courses may be taken in any one day Pre-and post-licensing course hours may not be counted toward the CE credit-hour requirements unless specifically permitted by the Illinois Real Estate License Act of 2000, as amended in 2010.

6

Continuing Education Hours — Requirements broker

6 hours per year — 12 hours each 2 year renewal

License expiration and renewal dates are established by rule, consistent with the Act; Licenses may be renewed - by paying required fees and meeting CE requirements—up to __ days prior to expiration of the license.

90 days

License Renewal Dates • Broker:

April 30, even years

licensed renewal date managing broker

April 30, odd year

Nebraska, South Dakota, Colorado, Connecticut, Indiana, Iowa, Georgia, Wisconsin, Florida.

Currently, Illinois has reciprocity with the following states under the Real Estate License Act of 2000:

Material facts of a property Known latent physical defects Agency relationships Designated agency Dual agency Lack of agency (to a purchasing customer) — No Agency Disclosure Form Compensation sources

Disclosure What Must Be Disclosed:

Licensees who, during the pre-renewal period, served in the armed services of the United States, served as elected state or federal officials, served as a full-time employee of the Department, Licensees who are licensed attorneys admitted to practice law in Illinois.

Exempt from the CE requirement

The Act also clarifies certain often misunderstood situations that occur when one is an agent. Under the Act the following apply:

It is considered reasonable to show available properties to various prospects without being viewed as breaching duty to a given client. A licensee must provide written disclosure to all clients for whom the licensee is preparing or making contemporaneous offers or contract to purchase or lease the same property and must refer any client that requests a referral to another designated agent. It is not considered a conflict for a buyer's agent to show homes wherein the commission is based on the ultimate sales price (in other words, where a higher price creates a higher commission). Unless a licensee "knew or should have known the information was false," a licensee is not considered responsible or liable for false information passed on to the client from a customer via the licensee, or vice versa. The licensee remains responsible under common law "for negligent or fraudulent misrepresentation of material information."

licensed renewal date leasing agent

July 31, even years

HIV, (Can't Reveal under Federal Law - See Below) AIDS, (Can't Reveal under Federal Law - See Below) "any other medical condition", the fact that a property was "the site of an act or occurrence that had no effect on the physical condition of the property or its environment or the structures located thereon", factual situations for properties other than the "subject of the transaction", physical conditions on nearby properties that "do not have a substantial adverse effect on the value of the real estate that is the subject of the transaction."

Non-required disclosure items are :

licensed renewal date real estate business

October 31, even years

Licensees whose licenses have expired may renew without paying any lapsed renewal or reinstatement fees if the license expired within two years after the termination of the service, training, or education while the licensee was performing any of the following functions:

On active duty with the U.S. armed services or called into the service or training by the state militia Engaged in training or education under supervision of the United States prior to induction into military service Serving as the Coordinator of Real Estate in Illinois or as an employee of the Department

performing the terms of the brokerage agreement between a sponsoring broker and a client, promoting the best interest of the client (e.g., timely offer presentation, material facts disclosure, best interests of the client prevail over any self-interest), obeying any directions that are not contrary to public policy or law, exercising skill and care in performing brokerage services, timely accounting for all money and property received in which the client has, may have, or should have had an interest, keeping confidential information confidential, and complying with the Act and applicable statutes.

Replacing common law, Section 15-15 notes the statutory duties a licensee has toward her client. The statutory duties are fulfilled by:

Once a relationship has been formed between a licensee and a sponsoring broker, the next set of relationships that dominate the real estate business falls under law of ______.

agency

Any sponsoring broker who wants to establish branch offices must apply for a ______ ______ license for each branch office maintained.

branch office

Before a nonresident managing broker or broker will be issued a license, the applicant must file a ___________ (Person) in writing to act as her agent in Illinois. Additionally, she must agree that all judicial or other process or legal notices directed to the nonresident may be served on the designee. Service upon the agent so designated is equivalent to personal service on the nonresident licensee.

designation

Real estate __________ means an acknowledgment, stated clearly and usually in writing, of certain key facts that the law holds might, if left unknown or if unclear, unfairly influence the course of events. Failure to ________ is an increasingly serious issue in a consumer-based society and under consumer-driven laws.

disclosure, disclose

However, once acquired, the reciprocal license allows a new resident who has recently been working under a nonresident license to obtain a valid resident's license without _________

examination

A listing agent must disclose to prospective buyer customers "all ______, ________, _______ facts pertaining to the physical condition of the property that are actually known by the licensee and that could not be discovered by a reasonably diligent inspection of the property by the customer." A licensee is not to be held liable for false information provided to the customer that the licensee did not actually know was false (15-25a).

latent , material, adverse facts

Exceptions to required place of business A broker licensed in Illinois by reciprocity with another state may be exempt from the requirement of maintaining a definite place of business in Illinois if the broker :

maintains an active broker's license in the home state, maintains an office in the home state, and has filed a written statement with the Department appointing the Secretary to act as the broker's agent for service of process and other legal notices, agreeing to abide by all the provisions of the Illinois Real Estate License Act of 2000, as amended in 2010, and submitting to the jurisdiction of the Department.

The sponsoring broker names a _______ broker for each branch office and is responsible for supervising all ________ brokers. The _______ broker, who must be a licensed Illinois ________ broker, oversees the branch's operations.

managing

Managing Broker CE course material shall also include

sales promotion; time management; standard real estate company training.

Once a brokerage company has been selected by the person who has passed the State Real Estate Broker Exam, the sponsoring broker:

signs the card, makes a copy for the Department and for office records, sends the License Application and a copy of the sponsor card to the Department within 24 hours of issuing the sponsor card. The sponsor card certifies the bearer's relationship with the sponsoring broker and serves as a temporary permit to practice real estate. The license will specify whether the individual is authorized to act as a broker, managing broker, or leasing agent. In addition to issuing the license, the Department issues a pocket card to each licensee. This card authorizes the bearer to engage in appropriate licensed activities for the current license period. Licensees must carry this card when engaging in any of the activities for which a license is required by Illinois The pocket card must be displayed on request.

Prior to receiving the actual license and pocket card in the mail, a person who has just passed the licensing exam still may practice real estate as long as that person has a

sponsoring card

After passing the state exam, a formal application for licensure needs to be made to the

state

Section 15-35, agency relationship disclosure before a listing agreement, buyer agency agreement, or any other brokerage agreement may be created, a consumer must be told in writing

that No Agency Relationship exists that licensee is not acting as the agent of the customer at a time intended to prevent disclosure of confidential information. the sponsoring broker's compensation policy insofar as cooperating with brokers who represent other parties in a transaction, if an Agency Agreement is signed the name or names of designated agent(s), if an Agency Agreement is signed

Section 15.10 sets out the basic relationship with consumers by saying "licensees shall be considered to be representing the consumer they are working with as a designated (implied) agent for the consumer unless :

there is a written agreement between the sponsoring broker and the consumer providing that there is a different relationship or the licensee is performing only ministerial acts [see earlier definition] on behalf of the consumer."

A licensee must have only one sponsoring broker at any given time and may perform real estate activities only for that sponsoring broker. (true/false)

true

Also, a licensee may not serve as dual agent in any transaction in which she has an ownership interest, whether direct or indirect. true/false

true

It is illegal under federal law to disclose that a property's occupant has or had HIV or AIDS. true/false

true

Material facts do not include physical conditions with little or no adverse effect on the value of the real estate." (t/f)

true

Nonresidents applying for an Illinois license must furnish the Department with proof of active licensure in their home state. They also must pay the same license fees that are required of resident brokers and managing brokers. Prospective nonresident licensees must agree in writing to abide by all provisions of the Act and to submit to the Department's jurisdiction. (true/false)

true

In turn, a sponsoring broker must have a _______ agreement with any managing brokers, brokers or leasing agents she employs. The agreement must describe the significant aspects of their professional relationship, such as supervision, duties, compensation, and grounds for termination, and must address the employment or independent contractor relationship terms. A sponsoring broker must also have a _______ agreement with any licensed personal assistants of licensees sponsored by the broker.

written