Section 1450.100  Definitions

 

Unless otherwise clarified by this Part, definitions set forth in the Act also apply for purposes of this Part.

 

"Act" means the Real Estate License Act of 2000 [225 ILCS 454].

 

"Affidavit of Non-participation" means a sworn statement made by an owner, director, partner, manager or member of, a licensed real estate corporation, limited liability company, partnership, limited partnership or limited liability partnership attesting that they are either unlicensed or not actively participating or engaging in licensed activities for that entity.

 

"Board" means the Real Estate Administration and Disciplinary Board as set forth in Section 25-10 of the Act.

 

"Brokerage agreement" means an agreement between a sponsoring broker and a consumer for licensed activities, or the performance of future licensed activities, to be provided to a consumer in return for compensation or the right to receive compensation from another.  Brokerage agreements may constitute either a bilateral or a unilateral agreement between the broker and the broker's client depending upon the content of the brokerage agreement.  All brokerage agreements shall be in writing and may be exclusive or non-exclusive. [225 ILCS 454/1-10]

 

"CE" is an abbreviation for continuing education.

 

"Credit Hour" means a minimum of 50 minutes of instruction through a course approved by the Division in a classroom, by interactive webinar, online distance education, correspondence or a home study course.

 

"Department" means the Department of Financial and Professional Regulation.

 

"Designated Managing Broker" means a managing broker who:

 

the sponsoring broker designated to manage its real estate brokerage, pursuant to Section 1450.700; and

 

has the responsibilities, and supervises the activities, described in Section 1450.705.

 

"Director" means the Director of Real Estate within the Department of Financial and Professional Regulation. [225 ILCS 454/1-10]

 

"Discipline" means a:

 

refusal to issue or renew a license;

 

reprimand;

 

probation;

 

suspension or revocation of a license;

 

fine; or

 

any other action the Department may deem proper.

 

"Division" means the Department of Financial and Professional Regulation‑Division of Real Estate.

 

"Education Provider" means a school licensed by the Department offering courses in pre-license, post-license, or continuing education. [225 ILCS 454/1-10]

 

"Electronic Signature" means a signature in electronic form attached to or logically associated with an electronic record. [5 ILCS 175/5-105] For purposes of the Act and this Part, any application, affidavit, or other document required to be signed may be signed by means of an electronic signature.

 

"Home Study" or "Correspondence Course" means an education course that is administered independently by the student in a self-study format, outside of a classroom, or physical or virtual meeting space, which may, but is not required to, include communication with an Illinois licensed instructor, but for which there is no requirement for the ongoing verification of the student's participation and comprehension, except for the administration of the proctored final examination required in connection with a non-interactive course. Home study or correspondence courses may include, but are not limited to, print or non-interactive media.

 

"Interactive Delivery Method" means delivery of a course, approved by the Department through a medium allowing for interaction with the student.

 

"Interactive Webinar" means delivery of a course by a licensed instructor through a medium allowing for live 2‑way communication between the licensed instructor and student in which either can initiate or respond to questions, including live instruction and real-time discussion via satellite, video or webcam that allows for student participation and comprehension.

 

"Learning Management System" means a software application used for the administration, documentation, tracking, reporting, and delivery of educational courses or training programs.

 

"Office" means a sponsoring broker's place of business where the general public is invited to transact business, or from which sponsored licensees work, where records may be maintained, and where licenses may be readily available, as set forth in Section 1450.730, whether or not it is the sponsoring broker's principal place of business. All offices must meet the requirements set forth in Section 1450.610.

 

"Online Distance Education" means education courses that are interactive, but not in real time, in which students independently learn and review material online, and, for verification of the student's participation and comprehension, interact with an Illinois licensed instructor or Learning Management System.

 

"Post-License Education" means the 45-hour post-license education required of new broker licensees pursuant to Section 5-50(b) of the Act, which is comprised of three 15-hour courses, each requiring passage of its own 50 question final examination.

 

"Principal Office" means the office location, whether physical or virtual, that serves as the principal place of business of a sponsoring broker.

 

"Proctor" means any person, including a licensed instructor, who has a written agreement with a licensed education provider to administer, in person or electronically, examinations fairly and impartially.

 

"Renewal Period" means, for an initial broker license, the period 180 days prior to the expiration date of that license.  For all other licenses, "renewal period" means the period 90 days prior to the expiration date of the license.

 

"Secretary" means the Secretary of the Department of Financial and Professional Regulation.

 

"Self-sponsor" means a licensed managing broker who operates a real estate brokerage as a sole proprietorship.

 

"Sole Owner" means a person who has a 100% beneficial ownership interest in real estate, except as defined in Section 10-30(c)(2) of the Act.  

 

"SOS" means the Illinois Secretary of State.

 

"Sponsoring Broker" means a person who operates a corporation, limited liability company, partnership, limited partnership, or limited liability partnership that is licensed by the Department, or an individual with a managing broker license who operates as a sole proprietor.

 

"Sponsoring Broker's Name" means the sponsoring broker's name as licensed by the Department or the assumed name registered by the sponsoring broker with the Division, which in the case of a franchise shall include the franchise affiliation and the name of the individual firm.

 

"Sponsorship" means that a sponsoring broker has certified to the Division that a  broker, managing broker, or residential leasing agent is employed by, or associated with by written employment or independent contractor agreement, and the Division has registered the sponsorship (see Section 5-40 of the Act).

 

"Transaction", for purposes of this Part, exists once an agreement has been reached and an accepted real estate contract is signed, or a lease is agreed to, by the parties.

 

"Virtual Office" means an office from which real estate brokerage services are provided without a dedicated office space or fixed physical location under the supervision of the designated managing broker.  Sponsored licensees provide services within the meaning of the term "Broker" as defined in Section 1-10 of the Act.  A virtual office may also be a place of business for education providers who provide services pursuant to the Act.  Virtual offices must meet the requirements set forth in Section 1450.610 or 1450.1100.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.110  Sponsorship

 

a)         Residential Leasing Agent 

 

1)         Except for an individual working under a residential leasing agent permit (see Section 1450.240), no residential leasing agent license applicant may engage in leasing residential real estate (see Section 1450.200) until a valid sponsorship of the applicant has been registered with the Division by the sponsoring broker.

 

2)         A sponsoring broker shall certify to the Division that the applicant whose name appears on the registration is employed by or associated with that sponsoring broker.

 

3)         Within 24 hours after establishing the sponsorship, the sponsoring broker shall notify the Division, in a format provided by the Division, that the residential leasing agent is employed by, or associated with, the sponsoring broker.

 

4)         A sponsoring broker may sponsor a residential leasing agent or applicant only upon the sponsoring broker's receipt of any of the following:

 

A)        A residential leasing agent examination pass score report stating that the applicant passed the exam;

 

B)        Termination of sponsorship by the sponsoring broker who previously employed or was associated with the residential leasing agent;

 

C)        A current inactive residential leasing agent license; or

 

D)        A residential leasing agent license expired for less than 2 years.

 

5)         The applicant or licensee shall, within 24 hours after establishing sponsorship, submit to the Division, in a format provided by the Division, the following: 

 

A)        Residential Leasing Agent Applicants

 

i)          A copy of the applicant's transcript evidencing compliance with the education requirements, if applicable;

 

ii)         A residential leasing agent examination pass score report stating that the applicant passed the exam;

 

iii)        A signed and completed residential leasing agent license application; and

 

iv)        The required residential leasing agent license application fee set forth in Section 1450.130.

 

B)        Residential Leasing Agent Licensee

 

i)          Confirmation of sponsorship in a format provided by the Division; and

 

ii)         The required sponsorship fee set forth in Section 1450.130.

 

6)         A sponsoring broker shall maintain a register of all sponsored residential leasing agents and shall make the list readily available to the public (see Section 1450.730).

 

b)         Broker and Managing Broker

 

1)         Within 24 hours after establishing the sponsorship, the sponsoring broker shall notify the Division, in a format provided by the Division, that the broker or managing broker is employed by, or associated with, the sponsoring broker.

 

2)         A sponsoring broker may sponsor a broker, managing broker, or applicant only upon the sponsoring broker's receipt of any of the following:

 

A)        For applicants, a broker or managing broker real estate examination pass score report stating that the applicant passed the exam;

 

B)        Termination of sponsorship by the sponsoring broker who previously employed or was associated with the broker or managing broker licensee;

 

C)        A current inactive broker or managing broker license; or

 

D)        A broker or managing broker license expired for less than 2 years.

 

3)         The applicant or licensee shall, within 24 hours after establishing sponsorship, submit to the Division, in a format provided by the Division, the following:

 

A)        Broker and Managing Broker Applicants

 

i)          A copy of the transcript evidencing compliance with the education requirement, if applicable;

 

ii)         A real estate examination pass score report stating that the applicant passed the exam;

 

iii)        A signed and completed broker or managing broker application and other documentation set forth in Sections 1450.430 and 1450.520; and

 

iv)        The required broker or managing broker license application fee as set forth in Section 1450.130.

 

B)        Broker and Managing Broker Licensees

 

i)          Confirmation of sponsorship in a format provided by the Division; and

 

ii)         The required sponsorship fee set forth in Section 1450.130.

 

4)         A managing broker may practice as a sole proprietor.  A person or persons may form and practice as a corporation, limited liability company, partnership, limited partnership, or limited liability partnership provided that, prior to engaging in licensed activities, the entity complies with the licensing requirements set forth in Section 1450.600 and submits to the Division, in a format provided by the Division, the following:

 

A)        Confirmation of the person serving as the designated managing broker;

 

B)        The required fee set forth in Section 1450.130;

 

C)        A completed consent to examine and audit special accounts form; and

 

D)        A signed and completed license application.

 

c)         If an applicant or licensee fails to complete the requirements of this Section:

 

1)         The sponsorship shall be void;

 

2)         The applicant or licensee shall be considered to have never been authorized to practice; and

 

3)         The applicant or licensee may be subject to discipline.

 

d)         Within 30 days after registration of sponsorship, and receipt of the required fees and appropriate documentation, the Division shall issue a license to the applicant or licensee or may notify the applicant or licensee, designated managing broker, and sponsoring broker of the basis for denial.

 

e)         Licensees shall carry a properly issued license or an electronic version of the license and shall display the license or provide evidence of licensure upon request when engaging in any licensed activities.

 

f)         Whenever any provision of Section 5-40 of the Act or any provision of this Part requires that any license be surrendered, sent, obtained, delivered, or issued by or to a licensee (including a sponsoring broker) or the Department, the manner of doing so may include electronic transmission, including the use of any electronic portal maintained by the Department.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.115  Termination of Sponsorship

 

a)         Upon termination of sponsorship by a sponsoring broker, the sponsoring broker shall immediately notify the terminated licensee, and within 24 hours after the termination shall notify the Division, in a format provided by the Division.

 

b)         When a licensee initiates termination with the sponsoring broker, the licensee shall, within 24 hours of termination, notify the Division, in a format provided by the Division, and shall immediately notify the sponsoring broker.

 

c)         Once the sponsorship has been terminated, the license is automatically changed to inactive status and the licensee is prohibited from engaging in licensed activities until the licensee has established a valid sponsorship with a new sponsoring broker.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.120  Assumed Name

 

a)         If a sponsoring broker, acting as a sole proprietor, operates under any name other than that appearing on the sponsoring broker's license, the sponsoring broker shall submit to the Division a copy of the sponsoring broker's registration under the Assumed Business Name Act [805 ILCS 405].

 

b)         If a sponsoring broker, acting as a partnership, corporation, limited liability corporation, limited partnership, or limited liability partnership, operates under any name other than that appearing on the sponsoring broker's license, the sponsoring broker shall submit to the Division a copy of the filing or certificate authorizing it to do business under an assumed name from the Illinois Secretary of State and in accordance with the Assumed Business Name Act [805 ILCS 405].

 

c)         Sponsored licensees, including a team or teams, may not operate under an assumed business name other than an assumed business name of their sponsoring broker.

 

d)         The sponsoring broker shall submit the information to the Division within 30 days after registration of the assumed name in a format provided by the Division.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.130  Fees

 

a)         Residential Leasing Agent License and Residential Leasing Agent Student

 

1)         The application fee for an initial residential leasing agent license is $100.

 

2)         The renewal fee for an unexpired residential leasing agent license is $150 per renewal.

 

3)         The late fee for a residential leasing agent license expired for no more than 2 years is $75.

 

4)         The application fee for a residential leasing agent permit is $50.

 

5)         The restoration fee for a residential leasing agent license expired for more than 2 years but less than 5 years is the sum of all lapsed renewal fees and a late fee.

 

6)         A person receiving an initial license during the first renewal period shall not be required to pay the initial renewal fee and will be issued a license expiring on the second renewal deadline.

 

b)         Broker License

 

1)         The application fee for an initial broker license is $150.

 

2)         The renewal fee for an unexpired broker license is $200 per renewal.

 

3)         The late fee for a broker license expired for no more than 2 years is $75.

 

4)         The restoration fee for a broker license expired for more than 2 years but less than 5 years is the sum of all lapsed renewal fees and a late fee.

 

5)         The fee to transfer from a managing broker license to a broker license is $150.

 

6)         A person receiving an initial license within the first renewal period shall not be required to pay the initial renewal fee and will be issued a license expiring on the second renewal deadline.

 

c)         Managing Broker License

 

1)         The application fee for an initial managing broker license is $175.

 

2)         The renewal fee for an unexpired managing broker license is $250 per renewal. 

 

3)         The late fee for a managing broker license expired for no more than 2 years is $75.

 

4)         The restoration fee for a managing broker license expired for more than 2 years but less than 5 years is the sum of all lapsed renewal fees and a late fee.

 

5)         A person receiving an initial license during the first renewal period shall not be required to pay the initial renewal fee and will be issued a license expiring on the second renewal deadline.

 

6)         The application fee for an initial virtual office license for a self-sponsored managing broker under this subsection shall be $200 and in addition to the initial application fee for the managing broker license.  The renewal fee for a virtual office license shall be $100 and also in addition to the renewal fee for the managing broker license.

 

d)         Real Estate Auction Certification

 

1)         The application fee for an initial real estate auction certification is $125.

 

2)         The renewal fee for an unexpired real estate auction certification is $300 per renewal.

 

3)         The late fee for a real estate auction certification expired for no more than 2 years is $75.

 

4)         A person receiving an initial certificate during the first renewal period shall not be required to pay the initial renewal fee and will be issued a certificate expiring on the second renewal deadline.

 

e)         Corporation, Limited Liability Company, Partnership, Limited Partnership, or Limited Liability Partnership License

 

1)        The application fee for an initial corporation, limited liability company, partnership, limited partnership, or limited liability partnership license is $250.

 

2)        The renewal fee for an unexpired corporation, limited liability company, partnership, limited partnership, or limited liability partnership license is $300 per renewal.

 

3)        The late fee for a corporation, limited liability company, partnership, limited partnership, or limited liability partnership license expired for no more than 2 years is $75.

 

4)        An entity receiving its initial license during the first renewal period shall not be required to pay the initial renewal fee and will be issued a license expiring on the second renewal deadline.

 

5)        The application fee for an initial virtual office license for an entity under this subsection shall be $200 and in addition to the initial application fee for the entity license.  The renewal fee for a virtual office license shall be $100 and also in addition to the renewal fee for the entity license.

 

f)         Education Provider, Pre-license Instructor and Course License Fees

 

1)         The application fee for an initial education provider license is $1,050.

 

2)         The renewal fee for an unexpired education provider license is $1,100 per renewal.

 

3)         The late fee for an education provider license expired for no more than 2 years is $75.

 

4)         The application fee for an initial pre-license instructor license is $150.

 

5)         The renewal fee for an unexpired pre-license instructor license is $300 per renewal.

 

6)         The late fee for a pre-license instructor license expired for no more than 2 years is $75.

 

7)         The application fee for an initial pre-license course license is $150.

 

8)         The application fee for a revised format pre-license course license is $150.

 

9)         The renewal fee for an unexpired pre-license course license is $150 per renewal.

 

10)        The late fee for a pre-license course license expired for no more than 2 years is $75.  

 

11)        The application fee for an initial post-license course license is $150.

 

12)        The application fee for a revised format post-license course license is $150.

 

13)        The renewal fee for an unexpired post-license course license is $150 per renewal.

 

14)        The late fee for a post-license course license expired for no more than 2 years is $75.

 

15)        An education provider, pre-license instructor, pre-license course, or post-license course receiving an initial license during the renewal period shall not be required to pay the initial renewal fee and will be issued a license expiring on the second renewal deadline.

 

16)        The application fee for an initial virtual office license for an education provider under this subsection shall be $200 and in addition to the initial application fee for the education provider license.  The renewal fee for a virtual office application shall be $100 and also in addition to the renewal fee for the education provider license.

 

g)         Continuing Education, Instructor and Course License Fees

 

1)         The application fee for an initial CE instructor license is $100.

 

2)         The renewal fee for an unexpired CE instructor license is $200 per renewal.

 

3)         The late fee for a CE instructor license expired for no more than 2 years is $75.

 

4)         The application fee for an initial CE course license is $150.

 

5)         The application fee for a revised format CE course license is $150.

 

6)         The renewal fee for an unexpired CE course license is $150 per renewal.

 

7)         The late fee for a CE course license expired for no more than 2 years is $75.

 

8)         A CE instructor or CE course receiving an initial license during the renewal period shall not be required to pay the initial renewal fee and will be issued a license expiring on the second renewal deadline.

 

h)         General

 

1)         All fees paid pursuant to the Act and this Section shall be made payable to the Department of Financial and Professional Regulation and are non-refundable.

 

2)         The fee for a certification of a licensee's record for any purpose is $35.

 

3)         Applicants for an examination as a residential leasing agent, broker, managing broker, instructor or real estate auction certification holder shall be required to pay the cost of taking the examination.  If a designated testing service is utilized for the examination, the fee shall be paid directly to the designated testing service.  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, shall result in the forfeiture of the examination fee.

 

4)         The fee for requesting credit for CE obtained while out-of-state (see Section 5-75 of the Act) is $50 per course.

 

5)         The fee for processing a sponsorship transfer is $35.

 

6)         The fee for a copy of a transcript of the proceedings under Section 20-62 of the Act is the cost of a copy of the transcript.  A copy of the balance of the record will be provided at the Division's cost of producing the record.

 

7)         The fee for certifying the record referred to in Section 20-73 of the Act is $1 per page.

 

8)         Each university, college, community college, or school that is a public institution of higher education supported by public funds, and located in the State of Illinois shall be exempt from the education provider and course licensure fees, provided that the institution meets the following criteria and certifies to the Division that:

 

A)        The facility is domiciled in the State of Illinois and supported by public funds;

 

B)        The instructors are approved and licensed by the Department;

 

C)        The courses are approved and licensed by the Department; and

 

D)        The pre-license or CE program is not independently established as a for-profit division of the university, college, community college, or school.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.140  Renewals

 

a)         Every residential leasing agent license expires on July 31 of each even-numbered year.

 

b)         Every broker license expires on April 30 of each even‑numbered year.

 

c)         Every managing broker license expires on April 30 of each odd-numbered year.

 

d)         Sponsoring brokers shall also submit a properly completed consent to examine and audit special accounts form required by the Division.

 

e)         Every real estate auction certification expires on December 31 of each even-numbered year. A real estate auction certificate holder whose certificate has been expired for more than 2 years shall be required to meet the requirements for a new certificate.

 

f)         Every corporation, limited liability company, partnership, limited partnership, and limited liability partnership license expires on October 31 of each even-numbered year. Each renewal, the licensee shall submit the following:

 

1)         A properly completed consent to examine and an audit special accounts form; and

 

2)         Notice of any change of business information as provided for in Section 1450.150, if applicable.

 

g)         Renewal applications shall be submitted in a format provided by the Division.  All renewals, if the licensee is seeking an active license, shall include the name and license number of the sponsoring broker.  Failure to receive a renewal notice shall not constitute a valid reason for failure to renew a license. No license shall be renewed until the required fee is paid.

 

h)         Practicing or offering to practice on an expired or inactive license shall constitute unlicensed practice and shall be grounds for discipline pursuant to Section 20-20 of the Act.

 

i)          Any licensee whose license has expired for more than 2 years shall not be eligible for renewal of that license.  Any licensee whose license has been expired for less than 2 years may renew the license at any time by complying with the requirements of this Part, by paying the fees required by Section 1450.130 and providing satisfactory evidence of completion of the CE required by this Part.  (See Section 5-50 of the Act.)

 

j)          Any residential leasing agent, broker or managing broker whose license under the Act has expired is eligible to renew, reinstate, or restore without paying any lapsed fees, and without completing the continuing education requirements for that licensure period, provided that the license expired while the licensee was:

 

1)         On active duty with the United States Army, United States Navy, United States Marine Corps, United States Air Force, United States Coast Guard, or State Militia called into the service or training for the United States;

 

2)         Engaged in training or education under the supervision of the United States prior to induction into military service; or

 

3)         Serving as an employee of the Department.

 

4)         A licensee qualifying under this subsection (j) may renew the license within a period of 2 years following the termination of service and is not required to take an examination;

 

5)         An individual qualifying under this subsection (j) shall be issued a license equivalent to the license held when employed by the Department or the license held immediately prior to their military service.

 

6)         A licensee qualifying under this subsection (j) must furnish the Division with satisfactory evidence of service, training, or education, and termination under honorable conditions within 2 years after the termination of service.

 

k)         As set forth in Section 5-50(g) of the Act, the Division, upon request, shall prepare and deliver by mail or electronically to the sponsoring broker a listing of licensees who, according to the Division, are sponsored by that sponsoring broker. The sponsoring broker shall notify the Division concerning any inaccuracies in the listing within 5 business days after its receipt.

 

l)          A notice of renewal shall be sent to all sponsoring brokers, by mail or electronically, for each of the sponsored licensees of a sponsoring broker.

 

m)        Licensees engaging in licensed activities in the form of a corporation, limited liability company, partnership, limited partnership or limited liability partnership must:

 

1)         Remain in active status and good standing in accordance with the requirements of the jurisdiction where it is registered and must be authorized to conduct or transact business; and

 

2)         Notify the Division, in a format provided by the Division, within 48 hours of any change to its status/registration resulting in the inability to conduct or transact business in the jurisdiction in which it is registered/was authorized to conduct or transact business; and

 

3)         Be authorized to conduct or transact business in Illinois.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.145  Restoration

 

a)         A licensee may petition for restoration of a license at any time after the successful completion of a disciplinary term; or after a license has been inactive or expired for more than 2 years.

 

b)         A person applying for restoration of a residential leasing agent license expired for more than 2 years but less than 5 years shall submit the following:

 

1)         A signed and completed residential leasing agent restoration application, in a format provided by the Division;

 

2)         Proof of completion of the CE requirements set forth in Section 1450.250 for all license terms that occurred prior to the date of the restoration application; and

 

3)         The required fee set forth in Section 1450.130.

 

c)         A person applying for restoration of a broker license expired for more than 2 years but less than 5 years shall submit the following:

 

1)         A signed and completed broker restoration application, in a format provided by the Division;

 

2)         Proof of completion of the CE requirements set forth in Section 1450.450 for all license terms that occurred prior to the date of restoration application;

 

3)         If applicable, proof of completion of the 45-hour post-license education if upon restoration the first renewal term is part of the elapsed period prior to the date of restoration application; and

 

4)         The required fee set forth in Section 1450.130.

 

d)         A person applying for restoration of a managing broker license expired for more than 2 years but less than 5 years shall submit the following:

 

1)         A signed and completed managing broker restoration application, in a format provided by the Division;

 

2)         Proof of completion of the CE requirements set forth in Section 1450.540 for all license terms that occurred prior to the date of the restoration application; and

 

3)         The required fee set forth in Section 1450.130.

 

e)         A person with a license expired for more than 5 years shall comply with the fees and requirements as a new applicant.

 

f)         An individual who seeks restoration of their license that expired while they were either on active duty in the United States military or in military training, or during employment with the Department, shall fulfill the requirements under Section 1450.140(j).

 

g)         A person may apply for restoration of a suspended, revoked, or license on probation at any time after the successful completion of a term of suspension, revocation, or probation of a license by filing a Petition to Restore in a format provided by the Department pursuant to its Rules of Practice in Administrative Hearings (68 Ill. Adm. Code 1110.30).  The Department may restore the license in the manner provided in Section 20-69 of the Act and the requirements in this Section.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.150  Required Information of Applicant or Licensee  

 

a)         Address of Record and Email Address of Record

 

1)         Pursuant to Section 2105-7 of the Civil Administrative Code of Illinois [20 ILCS 2105], all applicants and licensees shall provide to the Division a valid address, which shall not be a post office box, and a valid email address, which shall serve as the address of record and email address of record, respectively, at the time of application for licensure or renewal of a license; and

 

2)         Pursuant to Section 5-41 an applicant or licensee shall inform the Division, in a format provided by the Division, of any change of address, email address, phone, or office location within 24 hours after such change.

 

3)         The Division may provide service of documents by email to an applicant's or licensee's email address of record in accordance with the Act, the Department of Professional Regulation Law [20 ILCS 2105], or Section 10-75 of the Illinois Administrative Procedure Act [5 ILCS 100].  Service by email shall be deemed complete on the day of transmission regardless of whether the documents are delivered to the applicant's or licensee's spam or junk email folder.

 

b)         Aliases, Diminutives, and Nicknames. Within 14 days after the change, each licensee shall notify the Division, in a format provided by the Division, of any name change.

 

1)         The licensee shall notify the Division if the licensee regularly practices under an alias, diminutive, or nickname of the licensee's name.

 

2)         If an individual licensee changes names by court order or due to marital status change, the licensee shall:

 

A)        Notify the Division of the name change;

 

B)        Provide the Division a copy of the marriage certificate or portions of the court order relating to the name change; and

 

C)        Indicate the name to be utilized for licensure. 

 

3)         The licensee shall ensure that all CE certificates are issued under the name of licensure.

 

c)         Office Location.  Each licensee shall provide the Division, in a format provided by the Division, all physical office locations, virtual office websites or digital platforms.  Each licensee shall notify the Division, in a format provided by the Division, of a change in any physical office location or virtual office website or digital platform, within 24 hours after the change in location.

 

d)         Each sponsoring broker shall, within 24 hours, notify the Division, in a format provided by the Division, of any change of business information.

 

1)         When a licensee acquires or transfers any interest in a licensed corporation, limited liability company, partnership, limited partnership, or limited liability partnership licensed under the Act.

 

2)         When a licensee becomes an officer, manager, member or partner of a corporation, limited liability company, partnership, limited partnership, or limited liability partnership, including any associated changes in designated managing brokers or office location.

 

3)         When the licensee operates under an assumed name, it shall comply with the applicable provisions of Section 1450.120.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.160  Dual Licensure

 

a)         A licensee may not simultaneously hold licenses as a:

 

1)         Managing broker and residential leasing agent;

 

2)         Managing broker and broker; or

 

3)         Broker and residential leasing agent.

 

b)         Upon the issuance of a new license, the prior license shall be cancelled and no longer active unless there is a request to transfer pursuant to Section 1450.550.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.170  Exemption Under Section 5-20(1) of the Act (Repealed)

 

(Source:  Repealed at 41 Ill. Reg. 12561, effective October 6, 2017)

 

Section 1450.200  Residential Leasing Agent General Provisions

 

a)         A licensed residential leasing agent shall not engage in any licensed activities other than licensed activities related to leasing of residential real property. A licensed residential leasing agent may not engage in any licensed activities described in Section 1-10 of the Act that do not relate to leasing residential real property or would otherwise require a broker license.

 

b)         No person other than a licensed managing broker, broker or residential leasing agent or a person working under a residential leasing agent permit shall engage in leasing residential real property for another and for compensation.  

 

c)         No residential leasing agent licensee may accept compensation for the performance of leasing residential real property except from the sponsoring broker by whom the licensee is sponsored.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.205  Residential Leasing Agent Pre-License Education Requirements

 

An applicant for a residential leasing agent license must complete 15 credit hours of instruction recommended by the Board and approved by the Division, as set forth in Section 5-10(a)(5) of the Act. All education providers, pre-license instructors, and pre-license courses relating to residential leasing agent licensure must be approved by the Division and licensed pursuant to Subpart K.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.210  Residential Leasing Agent Examination

 

a)         Each applicant for a residential leasing agent license shall submit an application for examination as determined by the Division or its designated testing service, including:

 

1)         Certification that the applicant is at least 18 years of age;

 

2)         Successful completion of high school or equivalency required under Section 5-10 of the Act;

 

3)         The required fee set forth in Section 1450.130; and

 

4)         Proof of completion of 15 hours of instruction in real estate courses recommended by the Board and approved (see Section 1450.205).

 

b)         Approved pre-license education shall be valid for a period of 2 years after the date of satisfactory completion of all required pre-license education (see Section 5-35 of the Act).

 

c)         If a person fails the examination four consecutive times, that person must repeat the pre-license education requirement prior to taking the examination again, and the applicant must complete a new application for examination.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.220  Application for Residential Leasing Agent License by Examination

 

a)         Each applicant for a residential leasing agent license shall submit to the Division:

 

1)         A signed and completed application, in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130;

 

3)         Proof of successful completion of the examination authorized by the Division;

 

4)         Proof of sponsorship if the applicant is seeking an active license (see Section 1450.110); and

 

5)         A transcript, if applicable.

 

b)         Within 30 days after receipt and approval of required fees and other documentation, the Division shall issue a residential leasing agent license to the licensee or notify the applicant of the basis for denial.

 

c)         An applicant shall have one year from the date of receipt of a passing examination score to submit an application to the Division and to meet the requirements for licensure.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.230  Leasing Agent Termination of Employment (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.240  Residential Leasing Agent Permit

 

a)         Pursuant to Section 5-5(d) of the Act, a person engaging in leasing residential real estate may engage in residential leasing activities for a period of 120 consecutive days without being licensed if they first obtain a residential leasing agent permit, which shall be valid for a period of 120 days.  A permit holder shall comply with all provisions of the Act and this Subpart as if the permit holder were a residential leasing agent licensee and shall be subject to standards of practice and disciplinary provisions as if the permit holder were a residential leasing agent licensee. A sponsoring broker for a permit holder shall be responsible for the activities and actions of a permit holder as if the permit holder were a residential leasing agent licensee. A permit holder may only be sponsored by one sponsoring broker during one 120 consecutive calendar day period.

 

b)         Within 24 hours after employing, or associating with, by a written independent contract agreement with, a permit holder seeking a residential leasing agent license, a sponsoring broker shall submit the following information to the Division, in a format provided by the Division:

 

1)         The name, address and other information requested by the Division to identify the permit holder and sponsoring broker; and

 

2)         Certification by the permit holder and the sponsoring broker or designated managing broker that the permit holder:

 

A)        Will not work for more than 120 consecutive calendar days without having been issued a residential leasing agent license;

 

B)        Is pursuing licensure under Section 5-5(d) of the Act;

 

C)        Is at least 18 years of age;

 

D)        Has successfully completed a four-year course of study in a high school or secondary school or an equivalent course of study; and

 

E)        Is at the time of association, or will be within a period of 60 days, enrolled in a residential leasing agent course of instruction approved by the Division.

 

c)         Upon expiration of the 120 consecutive calendar day period, the permit holder shall immediately cease engaging in leasing residential real estate unless the person has been issued a residential leasing agent license and has valid sponsorship.

 

d)         A person shall not practice under a residential leasing agent permit more than one time.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.250  Residential Leasing Agent Continuing Education

 

a)         Each residential leasing agent licensee shall complete, during the current term of the license, a minimum of 8 CE hours from a single core curriculum recommended by the Board and approved by the Division. Approved courses shall, at a minimum, cover recent changes in the Act and other laws affecting the leasing of residential real estate, including fair housing and human rights issues related to residential leasing, advertising and marketing, leases, applications, credit reports and criminal history, handling of funds, ownership-tenant relationships, owner-tenant laws, environmental issues related to residential real estate, and sexual harassment prevention training (see Section 2105-15.5 of the Department of Professional Regulation Law [20 ILCS 2105]).

 

b)         A licensee is not required to complete CE requirements for the first renewal following the issuance of the initial residential leasing agent license.

 

c)         Education providers, instructors and courses must be approved by the Division as set forth in Sections 1450.1100, 1450.1105, 1450.1145 and 1450.1155.

 

d)         Certification of Compliance with CE Requirements

 

1)         Each licensee shall certify, on the renewal application, full compliance with the CE requirements of this Section.

 

2)         The Division may, in the context of compliance audits, require additional evidence demonstrating compliance with the CE requirements.  Each licensee shall retain proof of completed CE.

 

3)         In the context of a compliance audit, the Division shall accept verification submitted directly from a licensed education provider on behalf of a licensee as proof of CE compliance.

 

4)         Failure to comply with CE requirements is a violation of the Act and may subject a licensee to a citation or such other discipline as set forth in the Act and this Part.

 

e)         The Division shall conduct audits to verify compliance with this Section in accordance with Section 1450.960.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.260  Approved Courses, Schools and Instructors for Leasing Agents (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.300  Salesperson Educational Requirements to Obtain a License (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.310  Salesperson Examination (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.320  Applications for Salesperson License by Examination (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.330  Application for Salesperson License by Reciprocity (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.340  Salesperson Continuing Education (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.400  Broker Pre-License Education Requirements

 

An applicant for a broker license must complete 75 credit hours of instruction (see Section 1450.1105).  The pre-license education shall be valid for 2 years after the satisfactory completion of all required pre-license education.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.410  Broker Post-License Education Requirements

 

a)         Brokers shall be required to complete 45 hours of post-license education consisting of three 15-hour courses covering applied brokerage principles, risk management/discipline, and transactional issues, as required by the Act. This education must address the practical application of pre-license topics to the practice of real estate (see Section 1450.1105(c)). Brokers shall also pass an education provider administered 50-question examination for each course. The education and examinations shall be completed prior to the first renewal of the license.

 

b)         Brokers taking the 45-hour post-license education during their first license term shall not be required to complete any other CE during that license term.  The 45-hour post-license education must be completed within the 2 years immediately preceding the broker's first renewal.  However, those individuals who received their initial broker license within 180 days preceding the first broker renewal deadline must complete the 45-hour post-license education and pass each of the three 15-hour course final exams prior to the second broker renewal deadline.

 

c)         The Division shall conduct audits to verify compliance with this Section.

 

d)         The requirements of this Section do not apply to attorneys currently admitted to practice law by the Supreme Court of Illinois.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.420  Broker Examination

 

a)         Each applicant for a broker license shall submit an application for examination as determined by the Division or its designated testing service, including:

 

1)         Certification that the applicant is at least 18 years of age;

 

2)         Successful completion of high school or equivalency required under Section 5-27 of the Act;

 

3)         The required fee set forth in Section 1450.130; and

 

4)         Proof of one of the following:

 

A)        Currently admitted to practice law by the Supreme Court of Illinois; or

 

B)        Completion of 75 hours of instruction in real estate courses recommended by the Board and approved by the Division (see Section 1450.1105).

 

b)         If a person fails the examination four consecutive times, the person must repeat the pre-license education requirement set forth in Section 5-27(a)(5) of the Act prior to taking the examination again, in addition to the other requirements enumerated generally in Section 5-27 and must complete a new application for examination.

 

c)         As set forth in Section 5-35 of the Act, the 2- year time period after the completion of pre-license education during which that education will be accepted applies to approved pre-license education.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.430  Application for Broker License by Examination

 

a)         Each applicant for a broker license shall submit to the Division:

 

1)         A signed and completed application in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130;

 

3)         Proof of successful completion of the examination authorized by the Division;

 

4)         Proof of sponsorship if the applicant is seeking an active license (see Section 1450.110); and

 

5)         A transcript, if applicable.

 

b)         An applicant shall have one year from the date of receipt of a passing examination score to submit an application to the Division and to meet the requirements for licensure.

 

c)         If an applicant for a broker license currently holds a residential leasing agent license, the residential leasing agent license must be in good standing.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.440  Application for Broker License by Reciprocity

 

a)         Until December 31, 2025, an Illinois broker license shall be issued by reciprocity to a broker under the following conditions:

 

1)         The broker holds an active broker license, or its equivalent, by examination in a state with a reciprocal agreement with the Department;

 

2)         The broker licensing standards of that state are substantially equivalent to or greater than the minimum standards in Illinois;

 

3)         The broker maintains a physical or virtual place of business, as permitted by law, in the broker's state of licensure; and

 

4)         The broker submits:

 

A)        An application, in a format provided by the Division;

 

B)        The required fee set forth in Section 1450.130;

 

C)        A certification, or a statement bearing the seal of the licensing authority, from each state of licensure, evidencing:

 

i)          An active broker license in that state;

 

ii)         That the license is in good standing; and

 

iii)        Any disciplinary action taken against the broker;

 

D)        Proof of passing an examination approved by the Division on Illinois specific real estate laws;

 

E)        If the broker does not maintain a definite place of business within the State of Illinois, a written statement that:

 

i)          appoints the Secretary to act as the broker's agent upon whom all judicial and other process may be served;

 

ii)         acknowledges and agrees to abide by all of the provisions of the Act and this Part with respect to all of the broker's licensed activities within and relating to the State of Illinois; and

 

iii)        assents to jurisdiction of the Department; and

 

F)         Proof of sponsorship if the applicant is seeking an active license.

 

b)         Any licensee who renews a license issued under a reciprocal agreement assents to jurisdiction of the Department without regard to the location of the licensee's domicile or principal place of business or office locations.

 

c)         All requirements for licensure by reciprocity shall be met within one year after the date of original application, but no later than December 31, 2025, or the application shall be denied and the fee forfeited; and

 

d)         No application for licensure as a broker pursuant to a reciprocal agreement and this Section shall be submitted or granted on or after January 1, 2026, regardless of whether the application is new or if it seeks reconsideration of a prior application.  Licenses granted under reciprocal agreements prior to January 1, 2026, shall remain in force and may be renewed in the same manner as provided for a broker license in the Act and this Part.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.450  Broker Continuing Education

 

a)         Continuing Education Hour Requirements

 

1)         As set forth in Section 5-70 of the Act, each broker, except as otherwise provided in Section 5-70(b), is required to complete 12 CE hours during the current term of the license. The total of 12 CE hours of courses approved by the Division may be taken at any time during the current term of the license.

 

2)         As set forth in Section 5-50(b) of the Act, brokers receiving their initial broker license are required to complete the 45-hour post-license education during their first license term and are not required to complete any other CE during that license term.  If an individual receives the initial broker license within 180 days preceding the first broker renewal deadline, the broker must complete the 45-hour post-license education prior to the second broker renewal deadline.

 

3)         Brokers licensed in Illinois but residing and practicing in other states shall comply with the CE requirements set forth in this Section, unless they are exempt (see Section 5-70(b) of the Act).

 

4)         The Division shall conduct audits to verify compliance with this Section.

 

b)         Approved Continuing Education

 

1)         CE credit may be earned for verified attendance at, participation in, or completion of a licensed course offered by a licensed education provider (see Sections 1450.1100 and 1450.1105).

 

2)         CE credit may be earned by passing a proctored exam for a correspondence or home study course offered and verified by a licensed Education Provider (see Section 1450.1155).

 

3)         As set forth in Section 5-70 of the Act, CE credit shall be obtained through completion of a single core curriculum and an elective curriculum recommended by the Board and approved by the Division. CE requirements shall be deemed satisfied upon the successful completion of the following:

 

A)        Core Curriculum. A minimum of 6 CE credit hours per two year license term in a core curriculum course recommended by the Board and approved by the Division, which must include at least 2 credit hours of fair housing training.  Pursuant to Section 5-70, the core curriculum may also cover subjects including, but not limited to, advertising, agency, agency disclosures, property disclosures, residential leasing agent management, escrow, fair housing, and license law.

 

B)        Elective Curriculum. No fewer than 6 CE credit hours per 2-year license term in elective curriculum courses approved by the Division, which may cover subjects including, but not limited to, license law, escrow, antitrust, fair housing, agency, appraisal, property management, residential brokerage, farm property management, transaction management rights and duties of parties in a transaction, commercial brokerage and leasing, real estate financing, disclosures, residential leasing agent management, advertising, broker supervision and designated managing broker responsibility, professional conduct, diversity equity and inclusion, use of technology, and any training required by law (e.g., sexual harassment prevention training (see 20 ILCS 2105/2105-15.5)) may be credited toward elective hours.

 

4)         As set forth in Section 5-70(g) of the Act, CE credit may be earned by a licensed pre-license or CE instructor for teaching a licensed CE course. Credit for teaching a licensed CE course may only be earned once for that course during a license term. One hour of instruction is equal to one CE hour.

 

5)         As set forth in Section 5-75 of the Act, if licensees earn CE credit hours in another state or territory for which they will claim credit toward compliance in Illinois, the licensee shall submit an application and a $50 fee, within 90 days after completion of the CE course and prior to expiration of the license. The Division will review and may approve the course if the education provider, course, and delivery method of assessing participation and comprehension are substantially equivalent to those licensed in Illinois. In determining whether the education provider and course are substantially equivalent, the Division will use the criteria in Sections 5-70 through 5-80 of the Act and this Section.

 

6)         CE credit will only be given for CE courses offered by education providers licensed by the Division.

 

7)         Pursuant to Section 5-70(j) of the Act, no more than 12 hours of CE credit may be taken in one calendar day.  If a proctored final exam is required for a licensee to receive credit for the CE course or courses, the exam may be given either at the end of each individual course or group of courses.

 

8)         CE credit shall not be given for pre-license and post-license education courses, except as set forth in Section 5-70(1) of the Act.

 

c)         Certification of Compliance with CE Requirements

 

1)         Each licensee shall certify, on the renewal application, full compliance with the CE requirements set forth in subsections (a) and (b).

 

2)         The Division may, for purposes of compliance audits, require additional evidence demonstrating compliance with the CE requirements.  Each licensee shall retain proof of CE completed.

 

3)         For purposes of a compliance audit, the Division shall accept verification submitted directly from a licensed education provider on behalf of a licensee as proof of CE compliance.

 

4)         Failure to comply with CE requirements is a violation of the Act and may subject a licensee to a citation or other discipline set forth in the Act or this Part.

 

d)         The Division shall conduct audits to verify compliance with this Section (see Section 1450.960). 

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.460  Application for Broker License by Endorsement

 

a)         Each applicant for an Illinois broker license by endorsement shall submit to the Division:

 

1)         An application, in a format provided by the Division;

 

2)         The required fee as set forth in Section 1450.130;

 

3)         An official statement from the licensing authority of each state or jurisdiction in which the broker is licensed certifying:

 

A)        That the broker has an active license;

 

B)        That the broker is in good standing; and

 

C)        Any history of discipline against the broker in that state or jurisdiction of licensure;

 

4)         Proof of passing an examination approved by the Division on Illinois-specific real estate brokerage laws;

 

5)         Proof of successful completion of a 30-hour pre-license endorsement course recommended by the Board and approved by the Division in accordance with Section 5-60.5(b)(4) of the Act;

 

6)         Proof of sponsorship if the applicant is seeking an active license;

 

7)         The applicant's written designation appointing the Secretary to act as the broker's agent upon whom all judicial and other process or legal notices directed to the broker may be served in accordance with Sections 5-60.5(d) and (f) of the Act; and

 

8)         A written attestation by the applicant in accordance with Section 5-60.5(c) of the Act that, upon licensure, the applicant will abide by all provisions of the Act with respect to their real estate activities within the State of Illinois and submit to the jurisdiction of the Department.  [225 ILCS 454/5-60.5]

 

b)         If the broker has been actively practicing as a broker or its license equivalent in any other state or jurisdiction for less than 2 years immediately prior to the date of application, the broker must complete the 45 hours of post-license education by the first renewal pursuant to the Act and Section 1450.410.  [225 ILCS 454/5-60.5]

 

c)         After review by the Division for compliance with the Act and the Department of Professional Regulation Law [20 ILCS 2105], the Division will issue an Illinois broker license.

 

(Source:  Added at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.500  Managing Broker Pre-License Education Requirements

 

An applicant for a managing broker license must have completed a total of 165 credit hours of instruction as set forth in Section 1450.1105.  The 45-hour managing broker pre-license education shall be valid for 2 years after satisfactory completion.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.510  Managing Broker Examination

 

a)         Each applicant for a managing broker license shall submit an application for examination on Illinois-specific brokerage laws as determined by the Division or its designated testing service, including:

 

1)         Certification that the applicant is at least 20 years of age;

 

2)         Successful completion of high school or equivalency required under Section 5-28 of the Act;

 

3)         The fee required by Section 1450.130; and

 

4)         Proof of one of the following:

 

A)        Currently admitted to practice law by the Supreme Court of Illinois; or

 

B)        Completion of a total of 165 credit hours of instruction in real estate courses approved by the Division.

 

b)         If a person fails the examination four consecutive times, the person must repeat the pre-license education requirement set forth in Section 5-28 of the Act prior to taking the examination again and must complete a new application for examination.

 

c)         As set forth in Section 5-35 of the Act, the 2-year time period after the completion of pre-license education during which that education will be accepted applies to approved pre-license education.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.520  Application for Managing Broker License by Examination

 

a)         Each applicant for a managing broker license shall submit to the Division:

 

1)         A signed and completed application in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130;

 

3)         Proof of successful completion of the written examination on Illinois-specific brokerage laws authorized by the Division;

 

4)         Proof of sponsorship or self-sponsorship if the applicant is seeking an active license (see Section 1450.110);

 

5)         A transcript, if applicable; 

 

6)         If the applicant will be a self-sponsored managing broker, a completed consent to examine and audit special accounts form;

 

7)         A certification that the applicant has been actively licensed and in good standing as a broker for 2 consecutive years out of the last 3 years; and

 

8)         Any other documentation prescribed by the Division.

 

b)         An applicant shall have one year from the date of receipt of a passing examination score to submit an application with the Division and to meet all of the requirements for licensure.

 

c)         A self-sponsored managing broker shall comply with all the office requirements set forth in Section 1450.610.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.530  Application for Managing Broker License by Reciprocity

 

a)         Until December 31, 2025, an Illinois managing broker license shall be issued by reciprocity to a managing broker under the following conditions:

 

1)         The managing broker holds an active managing broker license, or its equivalent, by examination in a state with a reciprocal agreement with the Department;

 

2)         The managing broker licensing standards of that state are substantially equivalent to or greater than the minimum standards in Illinois;

 

3)         The managing broker maintains a physical or virtual place of business, as permitted by law, in the managing broker's state of licensure and has been actively engaging in licensed activities as a managing broker or broker during the immediately preceding 2 years; and

 

4)         The managing broker submits:

 

A)        An application, in a format provided by the Division;

 

B)        The required fee set forth in Section 1450.130;

 

C)        A certification, or a statement bearing the seal of the licensing authority, from each state of licensure, evidencing:

 

i)          an active managing broker license in that state;

 

ii)         that the license is in good standing; and

 

iii)        any disciplinary action taken against the managing broker.

 

D)        Proof of passing an examination approved by the Division on Illinois-specific real estate brokerage laws;

 

E)        If the managing broker does not maintain a definite place of business within the State of Illinois, a written statement that:

 

i)          appoints the Secretary to act as the managing broker's agent upon whom all judicial and other process may be served;

 

ii)         acknowledges and agrees to abide by all of the provisions of the Act and this Part with respect to all of the managing broker's licensed activities within and relating to the State of Illinois; and

 

iii)        assents to jurisdiction of the Department; and

 

F)         If the managing broker is not self-sponsored, then proof of sponsorship if the applicant is seeking an active license.

 

b)         Any licensee who renews a license issued under a reciprocal agreement assents to jurisdiction of the Department without regard to the location of the licensee's domicile or principal place of business or office locations.

 

c)         All requirements for licensure by reciprocity shall be met within one year after the date of original application, but no later than December 31, 2025, or the application shall be denied, and the fee forfeited.

 

d)         No applications for licensure as a managing broker pursuant to a reciprocal agreement and this Section shall be submitted or granted on or after January 1, 2026, regardless of whether the application is new or if it seeks reconsideration of a prior application.  Licenses granted under reciprocal agreements prior to January 1, 2026, shall remain in force and may be renewed in the same manner as provided for a managing broker license in the Act and this Part.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.540  Managing Broker Continuing Education

 

a)         Continuing Education Hour Requirements

 

1)         As set forth in Section 5-70 of the Act, each managing broker, except as otherwise provided in Section 5-70(b), is required to complete 12 CE hours during the current term of the license.  The total of 12 CE hours of courses approved by the Division may be taken at any time during the current term of the license.

 

2)         In addition to the CE required in subsection (a)(1), all renewing managing brokers must complete a 12-hour broker management CE course, the content of which shall be recommended by the Board and approved by the Division. This 12-hour broker management CE course must be completed in the classroom, by interactive webinar, or by online distance education format. In order to promote uniformity and consistency, the Division, following the recommendation of the Board, may provide a standardized curriculum to be utilized by all licensed education providers.

 

3)         Pursuant to Section 5-70(l) of the Act, a managing broker renewing their license for the first time may use the 45-hour managing broker pre-license brokerage administration and management course to satisfy the 12-hour broker management CE requirement.

 

4)         If the current term of the managing broker license ends within the 90 days after the initial managing broker license is issued, a licensee is not required to complete CE for that managing broker license term but shall complete all CE requirements before the next managing broker renewal deadline.

 

5)         Managing brokers licensed in Illinois but residing and practicing in other states shall comply with the CE requirements set forth in this Section, unless they are exempt under Section 5-70(b) of the Act.

 

6)         The Division shall conduct audits to verify compliance with this Section.

 

b)         Approved Continuing Education

 

1)         CE credit may be earned for verified attendance at, participation in, or completion of a licensed course offered by a licensed education provider that is approved pursuant to Sections 1450.1100 and 1450.1105.

 

2)         CE credit, except broker management excluded pursuant to Section 5-70(b) of the Act, may be earned by passing a proctored exam for a correspondence or home study course offered and verified by a licensed education provider (see Section 1450.1155).

 

3)         As set forth in Section 5-70 of the Act, CE credit shall be obtained through completion of a single core curriculum, an elective curriculum, and a 12-hour broker management CE curriculum recommended by the Board and approved by the Division. CE requirements shall be deemed satisfied upon successful completion of the following:

 

A)        Core Curriculum. A minimum of 6 CE credit hours per license term in a core curriculum course recommended by the Board and approved by the Division, which must include at least 2 credit hours of fair housing training.  Pursuant to Section 5-70, the core curriculum may also cover subjects including but not limited to advertising, agency, agency disclosures, property disclosures, escrow, fair housing, residential leasing agent management, and license law.

 

B)        Elective Curriculum. No fewer than 6 CE credit hours per license term in elective curriculum courses approved by the Division, which may cover subjects including but not limited to license law, escrow, antitrust, fair housing, agency, appraisal, property management, residential brokerage, farm property management, transaction management rights and duties of parties in a transaction, commercial brokerage and leasing, real estate financing, disclosures, residential leasing agent management, advertising, broker supervision and designated managing broker responsibility, professional conduct, use of technology, diversity equity and inclusion, and any training required by law (e.g., sexual harassment prevention training (see 20 ILCS 2105/2105-15.5)) may be credited toward elective hours.

 

C)        The 12-hour broker management CE course.

 

4)           As set forth in Section 5-70(g) of the Act, CE credit may be earned by a licensed instructor for teaching a licensed CE course. Credit for teaching a licensed CE course may only be earned once for that course during a license term. One hour of instruction is equal to one CE hour.

 

5)           As set forth in Section 5-75 of the Act, if licensees earn CE credit hours in another state or territory for which they will claim credit toward compliance in Illinois, the licensee shall submit an application and a $50 fee within 90 days after completing the CE course and prior to expiration of the license. The Division shall review and approve the CE course if the education provider, CE course, and delivery method of assessing participation and comprehension are substantially equivalent to those licensed in Illinois. In determining whether the education provider and CE course are substantially equivalent, the Division shall use the criteria in Sections 5-70 through 5-80 of the Act and this Section.

 

6)           CE credit shall only be given for CE courses offered by education providers licensed by the Division.

 

7)           Pursuant to Section 5-70(j) of the Act, no more than 12 hours of CE credit may be taken in one calendar day.  If a proctored final exam is required for a licensee to receive credit for the CE course or courses, the exam may be given either at the end of each individual course or group of courses.

 

8)           CE credit shall not be given for pre-license and post-license education courses, except as set forth in Section 5-70(1) of the Act.

 

c)         Certification of Compliance with CE Requirements

 

1)         Each licensee shall certify on the renewal application full compliance with the CE requirements set forth in subsections (a) and (b).

 

2)         The Division may, for purposes of compliance audits, require additional evidence demonstrating compliance with the CE requirements.  Each licensee shall retain proof of CE completed.

 

3)         For purposes of a compliance audit, the Division shall accept verification submitted directly from a licensed education provider on behalf of a licensee as proof of CE compliance.

 

4)         Failure to comply with CE requirements is a violation of the Act and may subject a licensee to a citation or other discipline as set forth in the Act or this Part.

 

d)         The Division shall conduct audits to verify compliance with this Section (see Section 1450.960). 

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.550  Managing Broker License Transfer to Broker License

 

a)         An individual licensee holding an active managing broker license may exchange the managing broker license for a broker license if the managing broker license is eligible for renewal. Upon issuance of the broker license, the licensee shall be subject to all CE requirements (see Section 1450.450).

 

b)         To transfer a managing broker license to a broker license an applicant shall submit to the Division:

 

1)         A signed and completed application in a format provided by the Division; and

 

2)         The required fee set forth in Section 1450.130(b)(5).

 

c)         Upon the transfer of a managing broker license to a broker license, the managing broker license shall be cancelled. Any prior discipline will be reflected in the new broker license record.

 

d)         To obtain a managing broker license after transferring to a broker license, a transferee shall meet the requirements of a new applicant for a managing broker license as set forth in the Act and this Part.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.560  Managing Broker Self-Sponsorship

 

a)         A self-sponsored managing broker may sponsor licensees if the self-sponsored managing broker meets all the requirements for a sponsoring broker.

 

b)         A sole proprietor must be licensed as a real estate managing broker.

 

c)         Temporary Practice

 

1)         Within 15 days after 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 Division.

 

2)         The Division will issue written authorization allowing the continued operation provided that:

 

A)        A licensed managing broker assumes responsibility in writing and agrees to supervise the operation of the office; or

 

B)        In the case of the death or disability of a self-sponsored managing broker, an authorized representative of the estate assumes responsibility in writing and agrees to supervise the operation of the office.

 

3)         Written authorization under subsection (c)(2) shall be valid for no more than 60 days unless extended by the Division for good cause shown and upon written request by the broker or authorized representative.

 

4)         The Division will honor the order of a court of competent jurisdiction or any other legal documentation appointing a representative of the estate for the sole purpose of closing out the affairs of a self-sponsored managing broker who is deceased or disable, but not for the purpose of actively engaging in licensed activities.

 

5)         This subsection (c) applies to a self-sponsored managing broker licensee who sponsors other licensees.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.570  Application for Managing Broker License by Endorsement

 

a)         Each applicant for an Illinois managing broker license by endorsement shall submit to the Division:

 

1)         An application, in a format provided by the Division;

 

2)         The required fee as set forth in Section 1450.130;

 

3)         An official statement from the licensing authority of each state or jurisdiction in which the managing broker is licensed certifying:

 

A)        That the managing broker has an active license;

 

B)        That the managing broker is in good standing;

 

C)        Any history of discipline against the managing broker in that state or jurisdiction of licensure; and

 

D)        No less than 2 years of active practice immediately preceding the date of application.

 

4)         Proof of passing an examination approved by the Division on Illinois-specific real estate brokerage laws;

 

5)         Proof of successful completion of a 30-hour pre-license endorsement course recommended by the Board and approved by the Division in accordance with Section 5-60.5(a)(5) of the Act;

 

6)         The applicant's written designation appointing the Secretary to act as the broker's agent upon whom all judicial and other process or legal notices directed to the broker may be served in accordance with Sections 5-60.5(d) and (f) of the Act; and

 

7)         A written attestation by the applicant in accordance with Section 5-60.5(c) of the Act that, upon licensure, the applicant will abide by all provisions of the Act with respect to their real estate activities within the State of Illinois and submit to the jurisdiction of the Department.  [225 ILCS 454/5-60.5]

 

b)         After review by the Division for compliance with the Act and the Department of Professional Regulation Law [20 ILCS 2105], the Division will issue an Illinois managing broker license.

 

(Source:  Added at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.600  Application for Corporations, Limited Liability Companies, Partnerships, Limited Partnerships and Limited Liability Partnerships Licenses

 

a)         Each applicant for a corporation, limited liability company, partnership, limited partnership, or limited liability partnership license shall submit:

 

1)         A signed and completed application in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130;

 

3)         A Federal Employer Identification Number (FEIN);

 

4)         Consent for the Division to examine and audit special accounts;

 

5)         The name and license number of the designated managing broker;

 

6)         If an assumed name will be used, a copy of the certificate authorizing it to do business, as set forth in the Assumed Business Name Act [805 ILCS 405];

 

7)         Proof of ownership that may, from time to time, be required by the Division; and

 

8)         Physical or virtual address of principal place of business in Illinois.

 

b)         All requirements for a licensee to engage in licensed activities as a corporation, limited liability company, partnership, limited partnership, or limited liability partnership shall be met within one year after the date of original application or the application shall be denied, and the fee forfeited. Thereafter, to be considered for licensure, the applicant shall submit a new application with the required fee.

 

c)         Corporations, in addition to the items listed in subsection (a), shall submit the following:

 

1)         A signed and completed application containing the name of the corporation, the address of its principal place of business, a list of all officers' names, and the license number for each officer who is licensed as a broker or managing broker in Illinois;

 

2)         A copy of the Articles of Incorporation bearing the seal of the office, in the jurisdiction in which the corporation is organized, whose duty it is to register corporations under the laws of that jurisdiction. In addition, a foreign corporation must submit a copy of the certificate of authority to transact business in this State filed with the SOS;

 

3)         All unlicensed officers shall submit affidavits of non-participation in a format provided by the Division;

 

4)         A list of all shareholders, the number of shares of the corporation owned by each shareholder and the license number for each shareholder who is a licensee in Illinois; and

 

5)         No corporation shall be granted a license if any non-participating owner or officer is currently barred from real estate practice because of a suspended or revoked license.

 

d)         Limited liability companies, in addition to the items listed in subsection (a), shall submit the following:

 

1)         A signed and completed application containing the name of the limited liability company and the address of its principal place of business; and

 

A)        If member-managed, a list of all members' names and the license number for each member who is licensed as a broker or managing broker in Illinois; or

 

B)        If manager-managed, a list of all managers' names and the license number for each manager who is licensed as a broker or managing broker in Illinois;

 

2)         If a member or manager is an entity, the applicant shall provide a list of all members' or managers' names and the license number for each owner, officer, manager, member, or partner of the entity who is licensed as a broker or managing broker in Illinois;

 

3)         A copy of the Articles of Organization filed with the SOS.  In addition, a foreign limited liability company must submit a copy of the application for admission to transact business filed with the SOS;

 

4)         All unlicensed members, including a member entity's owner, officer, member, or partner, shall submit affidavits of non-participation in a format provided by the Division; and

 

5)         No limited liability company shall be granted a license if any non-participating member or manager is currently barred from real estate practice because of a suspended or revoked license.

 

e)         Partnerships, in addition to the items listed in subsection (a), shall submit the following:

 

1)         A signed and completed application containing the name of the partnership, the address of its principal place of business, a list of all general partners' names, and the license number for each general partner who is licensed as a broker or managing broker in Illinois;

 

2)         An affidavit stating that the partnership has been legally formed;

 

3)         If a sponsoring broker, acting as a partnership, operates under any name other than that appearing on the sponsoring broker's license, the sponsoring broker shall submit to the Division a copy of the filing or certificate authorizing it to do business under an assumed name from the SOS and a certified copy of the sponsoring broker's registration under the Assumed Business Name Act [805 ILCS 405]. The assumed business name registration shall be obtained in each county in which the assumed business name is used;

 

4)         All unlicensed partners shall submit affidavits of non-participation in a format provided by the Division; and

 

5)         No partnership shall be granted a license if any non-participating partner is currently barred from real estate practice because of a suspended or revoked license.

 

f)         Limited partnerships or limited liability partnerships, in addition to the items listed in subsection (a), shall submit the following:

 

1)         A signed and completed application containing the name of the limited partnership or limited liability partnership, the address of its principal place of business, a list of all partners' names, and the license number for each partner who is licensed as a broker or managing broker in Illinois. If a partner is an entity, the applicant shall provide a list of all partners' names and the license number for each owner, officer, manager, member, or partner of the entity who is licensed as a broker or managing broker in Illinois;

 

2)         A letter of authority from the SOS or, if it is a foreign limited partnership or foreign limited liability partnership, a copy of the application for admission endorsed by the SOS;

 

3)         All unlicensed partners shall submit affidavits of non-participation in a format provided by the Division; and

 

4)         No limited partnership or limited liability partnership shall be granted a license if any non-participating partner is currently barred from real estate practice because of a suspended or revoked license.

 

g)         After receipt and approval of the application, required fee and appropriate documentation, the Division shall issue a license to the corporation, limited liability company, partnership, limited partnership, or limited liability partnership, or shall notify the applicant of the basis for denial.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.610  Place of Business; Office and Virtual Office Requirements

 

A licensee's place of business shall be the physical office or virtual office of the licensee's sponsoring broker.

 

a)         Each sponsoring broker shall register all physical or virtual office locations with the Division in a format provided by the Division.

 

b)         Physical Offices

 

1)         An office is any fixed business location or physical structure that is owned, controlled, operated, or maintained by a licensee who, at that business location or structure, is:

 

A)        Engaging in licensed activities;

 

B)        Offering real estate services to consumers;

 

C)        Holding out to the public that the licensee is engaging in licensed activities;

 

D)        Maintaining original real estate documents and records related to active or pending transactions;

 

E)        Maintaining current escrow records;

 

F)         Maintaining any record related to special accounts; or

 

G)        Meeting consumers for the purpose of engaging in licensed activities.

 

2)         The following places do not constitute a physical or fixed office. These places are provided as examples and are not intended to be inclusive or exclusive of other places:

 

A)        A motor vehicle primarily used for transportation;

 

B)        A place that is solely devoted to advertising real estate matters of a general nature or to making a sponsoring broker's business name generally known (e.g., trade show, expo);

 

C)        A place that a licensee uses solely for storage or archiving of records;

 

D)        A licensee's residence, unless it is held out to the public as a location where the person is engaging in licensed activities and satisfies all other requirements for an office; or

 

E)        A post office box, mail drop location or other similar facility.

 

c)         Virtual Offices

 

1)         A virtual office is an office from which real estate brokerage services are provided, without a dedicated office space or fixed physical location, under the supervision of the designated managing broker, and that is owned, controlled, operated, or maintained by a licensee who is:

 

A)        Engaging in licensed activities;

 

B)        Offering real estate services to consumers;

 

C)        Holding out to the public that the licensee is engaging in licensed activities;

 

D)        Maintaining real estate documents and records related to active, pending and completed transactions, securely stored in the format in which they were originally created, sent, or received.  Documents originally created in physical form may be converted to an electronic format only if the content is not altered;

 

E)        Maintaining current escrow records that are securely stored in the format in which they were originally created, sent, or received;

 

F)         Maintaining any record related to special accounts, securely stored in the format in which they were originally created, sent, or received;

 

2)         A nonresident broker who is licensed in Illinois by examination or pursuant to the provisions of Section 5-60 or 5-60.6 of the Act may operate a virtual office in the State subject to all requirements of the Act and this Part.

 

3)         A virtual office shall have a digital infrastructure facilitating the transaction of business, communications, advertising, and real estate services through a virtual office website, URL, or other digital platform.  Through this website or digital platform, the general public is invited to transact business and it is utilized to conduct the communication, advertising, and real estate services related to that business.  The virtual website, URL or digital platform shall be registered in a format provided by the Division and shall:

 

A)        Display a current registry of all sponsored licensees and their corresponding license numbers registered with the Division as set forth in Section 1450.730;

 

B)        Display the city or geographic location and state where real estate brokerage services are offered;

 

C)        Display contact information for the designated managing broker, including name, license number, valid phone number and email address.  If the sponsoring broker has multiple designated managing brokers, display each designated managing broker's contact information and the name and license number of the licensees they supervise;

 

D)        Maintain a secure intranet or secure portal that is accessible by employees, independent contractors, licensees and, upon request, the Division.  The intranet or portal shall include the following:

 

i)          Electronic records, securely stored in the format they were originally created, sent, or received, and made accessible for inspection by the Division in a secure electronic format.  Documents originally created in physical form may be converted to an electronic format only if the content is not altered;

 

ii)         An updated registry of sponsored licensees, their designated managing brokers, identification of additional office locations registered with the Division, and the licensees associated with those offices; and

 

E)        Comply with all advertising requirements under Section 1450.715 and 1450.720.

 

4)         Service of Process.  For those licensees who maintain a virtual office, a valid physical address in Illinois for the sponsoring broker must be provided to the Department for service of process.  If licensees do not maintain a physical address in Illinois, an entity that is an applicant or licensee may utilize the same address provided to the SOS for its registered agent in Illinois.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.700  Sponsoring Broker Responsibilities

 

a)         The sponsoring broker, other than a sole proprietor with no other sponsored licensees, shall establish a written company policy and remain ultimately responsible for compliance with Section 10-55 of the Act and Section 1450.705. The sponsoring broker shall name a designated managing broker who will be responsible for the oversight of every office. The designated managing broker shall have the authority to act on behalf of the sponsoring broker.

 

b)         A sponsoring broker may delegate to unlicensed personnel, including but not limited to accountants, office managers, or unlicensed assistants (see Section 1450.740), activities or duties not prohibited by the Act or this Part. Any licensee who supervises unlicensed personnel shall be responsible for the unlicensed person's actions, in accordance with Sections 1450.705(b) and 1450.740(d).

 

c)         The sponsoring broker shall inform the Division in writing of the name and license number of all designated managing brokers employed by the sponsoring broker and the offices each designated managing broker is responsible for managing.

 

d)         The sponsoring broker is ultimately responsible for maintaining a registry of sponsored licensees.  If the sponsoring broker maintains no physical office, the registry shall be included on a virtual office website or digital platform. 

 

e)         No fewer than 14 days prior to a sponsoring broker ceasing operations, the sponsoring broker shall provide written notice to all sponsored licensees to allow the sponsored licensees to secure new sponsoring brokers and shall provide written notice to all active clients to allow the clients to secure brokerage agreements with new sponsoring brokers.

 

f)         Any violation of the Act by any licensees employed by or associated with a sponsoring broker, or by any unlicensed assistant or other unlicensed employee of a sponsoring broker, shall not be cause for suspension or revocation of a sponsoring broker's license, unless a sponsoring broker had knowledge of a violation of the Act. A sponsoring broker's failure to provide an appropriate written company policy or failure to properly supervise shall be cause for discipline, including suspension or revocation, of the sponsoring broker's license.

 

g)         All provisions of this Section shall apply to self-sponsored managing broker licensees.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.705  Designated Managing Broker Responsibilities and Supervision

 

a)         All designated managing brokers shall notify the Division, within 24 hours, in a format provided by the Division, of any change of business address of the offices they manage.

 

b)         A designated managing broker shall supervise the activities of licensees and unlicensed assistants working in offices managed by the designated managing broker.  Supervision of activities includes, but is not limited to:

 

1)         Implementing and training on company policies and procedures established by the sponsoring broker;

 

2)         Training of all sponsored licensees and unlicensed assistants;

 

3)         Supervising and assisting licensees in real estate transactions;

 

4)         Supervising special accounts over which the sponsoring broker has delegated responsibility to the designated managing broker in order to ensure compliance with the special account provisions of the Act and this Part;

 

5)         Supervising all advertising, in any medium, of any service for which a license is required;

 

6)         Familiarizing sponsored licensees with the requirements of federal and State laws and local ordinances relating to licensed activities; and

 

7)         Compliance with this Part by licensees and unlicensed assistants supervised by the designated managing broker and by any offices under their management.

 

c)         A designated managing broker shall have specific supervisory duties related to broker licensees who have received their initial broker's license but have not successfully completed their 45 hours of post-license education in accordance with the Act and Sections 1450.410 and 1450.460.  These duties include:

 

1)         Direct oversight and handling of all escrow moneys, including earnest money and security deposits.

 

A)        The designated managing broker must have an established procedure for delivery of earnest money, in tangible form, directly from the new broker licensee to the designated managing broker for proper handling (see Section 1450.750); or

 

B)        When payment of escrow moneys is being made electronically, the designated managing broker shall be directly responsible for the handling and oversight of electronically transferred funds (see Section 1450.750).

 

2)         Direct involvement and oversight during contract negotiations involving the purchase, sale, or lease of real estate in conjunction with real estate activities for which a license is required.  During an audit or an investigation, oversight must be provided in a manner that can be effectively demonstrated to the Division.

 

3)         Direct supervision and approval of all advertising or marketing materials proposed by the new broker licensee.

 

d)         Under the supervision of the designated managing broker, new broker licensees who have not successfully completed the 45-hour post-license education requirement shall have no authority to bind the sponsoring broker to any contract or agreement.

 

e)         Any violation of the provisions of the Act by any licensees employed by or associated with the sponsoring broker, or any unlicensed assistant or other unlicensed employee of a sponsoring broker, shall not be cause for suspension or revocation of a designated managing broker's license, unless a designated managing broker had knowledge of a violation of the Act.  The designated managing broker's failure to provide an appropriate written company policy or failure to properly supervise shall be cause for discipline, including suspension or revocation, of the designated managing broker's license.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.710  Discrimination

 

a)         No licensee shall enter into a listing agreement that prohibits the sale or rental of real estate to any person because of race, color, religion, national origin, sex, ancestry, age, marital status, physical or mental disability, familial status, pregnancy, sexual orientation, including, but not limited to, gender identity, military status, unfavorable discharge from the military service, order of protection status, immigration status, source of income, arrest record, or any other class protected by Article 3 of the Illinois Human Rights Act [775 ILCS 5].

 

b)         No licensee shall perform licensed activities with respect to any real estate for which disposition is prohibited to any person because of race, color, religion, national origin, sex, ancestry, age, marital status, physical or mental disability, familial status, pregnancy, sexual orientation, including, but not limited to, gender identity, military status, unfavorable discharge from the military service, order of protection status, immigration status, source of income, arrest record, or any other class protected by Article 3 of the Illinois Human Rights Act.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.715  Advertising

 

a)         Deceptive and misleading advertising includes, but is not limited to, the following:

 

1)         Advertising property subject to an exclusive listing agreement with a sponsoring broker, other than the licensee's sponsoring broker, without the permission and identification of the sponsoring broker with the exclusive listing;

 

2)         Use of terms in a team name that are inherently misleading (e.g., company, realty, real estate, agency, associates, brokers, properties, property), unless the term is followed by the word "team".

 

3)         Failing to remove advertising of a listed property within a reasonable time, considering the nature of the advertising, the licensee's control over the removal of the advertising, the ease of removing the advertising, knowledge that the advertising was continuing, and any other pertinent criteria, after the closing of a sale on the listed property or the expiration or termination of the listing agreement, whichever occurs first;

 

4)         Advertising property at auction as an absolute auction or auction without reserve, when a minimum bid or opening bid is required;

 

5)         Advertising property in a manner that creates a reasonable likelihood of confusion regarding the permitted use of the property; and

 

6)         Engaging in:

 

A)        Phishing;

 

B)        Using URL, domain name, username, social media handle, metatag, keyword or other device or method intended to deceptively direct, drive or divert internet traffic; or

 

C)        Misleading consumers.

 

b)         All advertising must include the sponsoring broker's name and conform to the following requirements:

 

1)         For purposes of this Part, a logo, emblem, label, trademarked image, or similar identification used by the sponsoring broker is not considered a part of the sponsoring broker's name unless it contains the sponsoring broker's name.

 

2)         Any advertising that meets one of the following shall be considered in compliance with this Part:

 

A)        The font size used for the letters in the sponsoring broker's name is as large or larger than the letters used in the team name or individual licensee name;

 

B)        The area, in terms of the height and width containing the sponsoring broker's name, is as large or larger than the area, in terms of height and width, than that of the team name or individual licensee name; or

 

C)        Any logo, emblem, label, trademarked image, or similar identification incorporating the sponsoring broker's name, is as large or larger than that of the team name or individual licensee name.

 

c)         For the purposes of this Section and Section 1450.720, listing information available on a sponsoring broker's or other licensee's website, extranet or similar website, but behind a firewall or similar device requiring a password, registration, or other type of security clearance to access, shall not be considered advertising.

 

d)         For the purposes of this Section and Section 1450.720, unsolicited marketing of licensed activities and prospecting for clients by licensees shall be considered advertising.

 

e)         Nothing in Section 10-30 of the Act shall require a sponsoring broker to include the name of one of its sponsored licensees on the sponsoring broker's signs or other advertising.

 

f)         Licensees registered with the Division as designated managing brokers shall indicate that status in any marketing or advertising that includes their name, except on "For Sale" or similar signs placed on real property, as set forth in Section 10-30(g) of the Act.  Licensees holding a managing broker license and not named as the designated managing broker with the Division may represent or hold themselves out as a managing broker, but not as a designated managing broker.

 

g)         Advertising for a real estate auction must contain, when applicable, the name and address of:

 

1)         The licensed broker or managing broker;

 

2)         The licensed auctioneer, as defined in Section 5-20(13) of the Act; 

 

3)         The licensed auctioneer and any individual holding a real estate auction certification; or

 

4)         The licensed broker or managing broker and any individual holding a real estate auction certification, who is not otherwise exempt under Section 5-20(13) of the Act.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.720  Digital or Electronic Advertising and Communication

 

a)         For purposes of this Section:

 

1)         "Advertising" or "Marketing Real Property" means use of a website, digital platform, or any form of social media to disseminate:

 

A)        Information regarding properties listed with a sponsoring broker;

 

B)        The identity of that sponsoring broker or the individual licensee for each property; and

 

C)        Information related to those properties.

 

2)         "Advertising" or "Marketing of Licensed Activities" means a website, digital platform, or any form of social media that includes an offer or solicitation to provide licensed activities in connection with marketing or identifying real property for sale or lease.

 

3)         "Scraping or Data Mining" means  copying or extracting existing listing information or keywords from a website, digital platform, or any form of social media of another licensee and using or altering that material and posting or displaying it for the benefit of the general public on another digital platform, form of social media, or in front of a firewall on another website, without written or electronic permission and disclosure from the original listing licensee.

 

b)         Sponsoring Broker's Advertising or Marketing Real Property

 

1)         A sponsoring broker having permission to advertise or market real property must include the following information on the website, digital platform, or any type of social media where the sponsoring broker's advertisement or marketing appears:

 

A)        The sponsoring broker's name;

 

B)        The city or geographic area and state or country where the property being advertised or marketed is located;

 

C)        The city and state where the sponsoring broker's physical principal office or other offices registered with the Division are located or a direct link that connects to the sponsoring broker's virtual office, website, or digital platform; and

 

D)        If the sponsoring broker does not hold a real estate license for the jurisdiction where the property is located, the regulatory jurisdictions where the sponsoring broker does hold a real estate license.

 

2)         When a sponsoring broker is advertising a property that is subject to an exclusive listing agreement with another sponsoring broker, the sponsoring broker seeking to advertise the property shall obtain permission from, and identify in the advertisement, the sponsoring broker with the exclusive listing.

 

c)         Sponsoring Broker's Advertising or Marketing of Real Estate Services

A sponsoring broker advertising or marketing licensed activities or soliciting business in connection with licensed activities must include the following information:

 

1)         The sponsoring broker's name; and

 

2)         The city and state where the sponsoring broker's physical principal office or other offices registered with the Division are located or a direct link that connects to the sponsoring broker's virtual office, website, or digital platform.

 

d)         Licensee's Advertising or Marketing Real Property

Any licensee with permission to advertise or market real property must include the following information on the electronic location where the licensee's advertisement or marketing appears:

 

1)         The licensee's name as licensed with the Division or, if applicable, the name registered with the Division (see Section 1450.150(b)).  If the licensee is part of a team, the team name may be substituted for the individual licensee's name;

 

2)         The city or geographic area and state or country where the property being advertised or marketed is located;

 

3)         The sponsoring broker's name;

 

4)         The city and state where the sponsoring broker's physical office registered with the Division is located or, in the case of a virtual office, a direct link that connects to the sponsoring broker's virtual office website or digital platform; and

 

5)         If the licensee does not hold a real estate license for the jurisdiction where the property is located, the regulatory jurisdictions where the licensee does hold a real estate license.

 

e)         Licensee's Advertising or Marketing of Real Estate Services

A licensee advertising, marketing, or soliciting business in connection with licensed activities must include the following information:

 

1)         The licensee's name as licensed with the Division or, if applicable, the name registered with the Division (see Section 1450.150(b)).  If the licensee is part of a team, the team name may be substituted for the individual licensee's name;

 

2)         The sponsoring broker's name; and

 

3)         The city and state where the sponsoring broker's physical office registered with the Division is located or, in the case of a virtual office, a direct link that connects to the sponsoring broker's virtual office website or digital platform.

 

f)         Sponsoring Broker − Electronic or Digital Communication

 

A sponsoring broker engaged in licensed activities using any electronic or digital means of communicating must include the following information in the initial communication with a member of the public or another licensee:

 

1)         The sponsoring broker's name; and

 

2)         The city and state where the sponsoring broker's principal physical office or other offices registered with the Division are located or a direct link that connects to the sponsoring broker's virtual office website or digital platform.

 

g)         Licensee − Electronic or Digital Communication

A licensee engaged in licensed activities using any electronic or digital means of communication must include the following information in the initial communication with a member of the public or another licensee:

 

1)         The licensee's name as licensed with the Division or, if applicable, the name registered with the Division (see Section 1450.150(b)).  If the licensee is part of a team, the team name may be used in addition to the individual licensee's name;

 

2)         The sponsoring broker's name; and

 

3)         The city and state where the sponsoring broker's physical office registered with the Division is located or, in the case of a virtual office, a direct link that connects to the sponsoring broker's virtual office website or digital platform.

 

h)         A sponsoring broker or other licensee may link to listing information from another electronic or digital location without approval unless the owner of that electronic or digital location specifically requires consent.  Any link must not mislead or deceive the public as to the ownership of any listing information.

 

i)          All licensees, including sponsoring brokers, shall periodically review advertising and marketing information on their websites or digital platforms and update the information as necessary to assure that the information is current and not misleading.

 

j)          All licensees, including sponsoring brokers, using websites or digital platforms for advertising must provide a direct link:

 

1)         To all required disclosures relating to the sponsoring broker's name and other relevant business information; and

 

2)         All terms and conditions of any offers or inducements made pursuant to Section 10-15(c) and (d) of the Act.

 

k)         A domain name, URL, username, or social media handle does not constitute advertising.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.725  Office Identification

 

a)         An identification sign on the outside of any physical office shall be of a size and nature that is reasonably readable by the public, shall be affixed to the office, and shall contain the sponsoring broker's name.  Building directory listings that contain this information fulfill the requirements of this Section.

 

b)         The identification sign must be plainly visible from an area accessible to the public.

 

c)         For a virtual office, the website or digital platform shall contain the sponsoring broker's name and satisfy all advertising requirements set forth in Sections 1450.715 and 1450.720.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.730  Office Registry Requirements

 

a)         The license or copy of the license for all sponsored licensees must be readily available to the public in the sponsoring broker's physical office or available through some electronic means provided by the sponsoring broker.

 

b)         For a virtual office, this requirement is met by prominently displaying a registry of all sponsored licensees on the sponsoring broker's virtual office website or digital platform. The registry shall include all sponsored licensees registered with the Division and their corresponding license numbers. Designated managing brokers must be identified as set forth in Section 1450.610(d)(2)(D).

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.735  Employment or Independent Contractor Agreements

 

a)         Every sponsoring broker shall have a written employment or independent contractor agreement with each sponsored licensee.  Self-sponsoring designated managing brokers shall not be required to have an employment agreement with themselves but shall have a written employment or independent contractor agreement with each sponsored licensee.

 

b)         The written employment or independent contractor agreement shall be dated and signed by the parties.  The employment or independent contractor agreement shall include, at a minimum, the terms of the employment or independent contractor relationship, including, but not limited to, the statutorily required supervision, duties, compensation, duration, and procedure for termination.  The term "duration", as used in this subsection, is not intended to require a specific termination date, but rather to allow the parties to negotiate the terms of the employment agreement, such as "at will" or a specific length of time, and how the employment or independent contractor agreement is renewed or terminated.  These terms shall be included in the employment or independent contractor agreement. 

 

c)         If a written agreement provides for an independent contractor relationship that clearly establishes the relationship, the specific provisions of the Act shall control for purposes of a licensee's conduct of brokerage activities.

 

d)         The sponsoring broker shall provide, to each sponsored licensee, a physical or electronic copy of the fully signed employment or independent contractor agreement and any modifications to that document.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.740  Unlicensed Assistants

 

a)         Licensees may utilize the services of unlicensed assistants to assist them with administrative, clerical, or personal activities for which a license under the Act is not required.  Compensation for unlicensed assistants cannot be transaction based.

 

b)         An unlicensed assistant, under the supervision of a licensee, may engage in the following activities.  This list is not intended to increase or decrease the scope of licensed activities.

 

1)         Answer the telephone, receive inquiries, and forward messages and inquiries to a licensee;

 

2)         Submit listing data and changes to a multiple listing service;

 

3)         Follow up on a transaction after a contract has been signed;

 

4)         Assemble documents for a closing;

 

5)         Obtain public information from any government source (e.g., a courthouse, sewer district, water district or other repository of public information);

 

6)         Have keys made or secure entry codes for a listing;

 

7)         Draft advertising copy and promotional materials for approval by a licensee or, in the case of a new broker licensee who has not successfully completed the 45-hour post-license education, with the approval of the designated managing broker;

 

8)         Place advertising;

 

9)         Record and deposit earnest money, security deposits and rents at the direction of, and with approval by, the designated managing broker;

 

10)         Complete contract forms with business and factual information at the direction and approval of a licensee or, in the case of a new broker licensee who has not successfully completed the 45-hour post-license education, with the approval of the designated managing broker;

 

11)        Monitor licenses and personnel files;

 

12)        Compute commission checks and perform bookkeeping activities;

 

13)        Place signs on property;

 

14)        Prepare and distribute promotional information under the direction and approval of a licensee or, in the case of a new broker licensee who has not successfully completed the 45-hour post-license education, with the approval of the designated managing broker;

 

15)        Schedule appointments for the licensee (this does not include making phone calls, telemarketing or performing other activities to solicit business on behalf of the licensee);

 

16)        Respond to questions by quoting directly from published information;

 

17)        Sit at a property for a broker tour that is not open to the public;

 

18)        Gather feedback on showings; and

 

19)        Provide concierge services and other similar amenities to existing tenants.

 

c)         An unlicensed assistant of a licensee may not perform licensed activities, including, but not limited to:

 

1)         Hosting open houses, kiosks, or home show booths or fairs;

 

2)         Showing property;

 

3)         Interpreting information regarding listings, titles, financing, contracts, closings, or other information relating to a transaction;

 

4)         Explaining or interpreting a contract, listing, lease agreement or other real estate document for or with anyone; or

 

5)         Negotiating or agreeing to any commission, commission split, management fee or referral fee on behalf of a licensee.

 

d)         Any licensee who supervises an unlicensed assistant shall be responsible for the unlicensed assistant's acts or omissions.  Any licensee who permits, aids, assists or allows an unlicensed assistant to perform any licensed activities shall be in violation of the Act.

 

e)         A licensee is prohibited from acting as an assistant, as provided for in this Section, for any licensee other than the licensee's sponsoring broker or a licensee sponsored by the same sponsoring broker.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.745  Business Entity for Direct Payment of Compensation

 

a)         Every sponsored licensee who forms a business entity as set forth in Section 10-20(e) of the Act, for the purpose of receiving the sponsored licensee's compensation, shall submit to the Division copies of the Articles of Incorporation or Organization or authority to conduct or transact business in Illinois issued by the SOS. 

 

b)         For purposes of this Section, a "business entity" must be owned solely by the licensee or 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.

 

c)         A sponsoring broker, regardless of whether they have an employment or independent contractor agreement with a licensee, may pay compensation directly to a business entity formed pursuant to Section 10-20(e) of the Act.

 

d)         The business entity that receives compensation from a sponsoring broker may not:

 

1)         Be licensed under the Act;

 

2)         Perform licensed activities;

 

3)         Sponsor, employ or associate itself with other licensees; or

 

4)         Hold itself out to the public, or advertise to the public, under the business entity's legal or assumed name.

 

e)         The business entity formed pursuant to Section 10-20(e) of the Act, may receive compensation earned by the licensees arising out of activities unrelated to licensed activities.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.750  Special Accounts

 

a)         Escrow Moneys Defined

 

1)         "Escrow moneys" means all moneys, promissory notes or any other type or manner of legal tender or financial consideration deposited with any person for the mutual benefit of the parties to the transaction. A transaction exists once an agreement has been reached and an accepted real estate contract is signed, or a lease is agreed to by the parties. Escrow moneys include without limitation earnest moneys and security deposits, except those security deposits in which the person holding the security deposit is also the sole owner of the property being leased or sold and for which the security deposit is being held.

 

2)         As set forth in the terms of a written agreement between a licensee and a client, such as a property management agreement, rent moneys paid to a licensee for transmittal to the licensee's client (e.g., the owner) shall not be considered to be "escrow moneys". In addition, other moneys held in a custodial account by a licensee for transmittal to a licensee's client, as set forth in the terms of a written agreement, such as a contract for deed, shall not be subject to this Section.  For purposes of this Section, "in writing" or "written" can mean by physical or electronic means.

 

3)         Earnest money constitutes escrow moneys whether in the form of personal checks, cashier's checks, money orders, cash, or any other forms of legal tender, including legally recognized cryptocurrencies.

 

b)         Escrow Accounts. As set forth in Section 20-20(a)(17) of the Act, sponsoring brokers who accept escrow moneys shall maintain and deposit in a special account (hereinafter referred to as an escrow account), separate and apart from personal or other business accounts, all escrow moneys entrusted to the sponsoring broker while acting as a licensee, escrow agents or temporary custodians of the funds of others.

 

1)         The escrow accounts shall be non-interest bearing, unless the character of the deposit is such that payment of interest on the escrow account is otherwise required by law or unless the principals to the transaction specifically require, in writing, that the deposit be placed in an interest bearing account.

 

2)         If an interest bearing account is required, the recipient of the interest shall be specified, in writing, by the principals of the transaction.

 

3)         A sponsoring broker may maintain more than one escrow account.

 

4)         Every escrow account, whether interest bearing or non-interest bearing, shall be maintained at a federally insured depository.

 

5)         Commingling Prohibited. Each sponsoring broker shall deposit only escrow moneys received in connection with real estate transactions in an escrow account.  The sponsoring broker shall not deposit personal funds in an escrow account, except the sponsoring broker may deposit from the sponsoring broker's own personal funds, and keep in any escrow account, an amount sufficient to avoid incurring service charges relating to the escrow account.  The sum shall be specifically documented as being for service charges and the sponsoring broker shall have proof available that the amount of the sponsoring broker's own funds in the escrow account does not exceed the minimum amount required by the depository to maintain the account without incurring service charges. Transfer of funds as set forth in subsection (i)(4) shall not constitute commingling.

 

c)         The sponsoring broker shall provide a receipt to the payor of any cash constituting escrow funds and shall retain a physical or electronic copy of the receipt.

 

d)         Time of Deposit of Escrow Moneys

 

1)         All escrow moneys accepted by a sponsoring broker shall be placed in the sponsoring broker's escrow account no later than the next business day:

 

A)        Following the transaction, as defined in Section 1450.100; or

 

B)        After receipt of the escrow money, per the terms of the contract.

 

2)         If the funds are received on a day prior to a bank holiday, or any other day on which the bank is closed, the funds shall then be deposited on the next business day the depository is open.

 

e)         A sponsoring broker serving as escrow agent shall notify all principals in writing if:

 

1)         A principal fails to tender escrow moneys;

 

2)         A principal's payment of escrow moneys is dishonored by the financial institution on which it was drawn; or

 

3)         It appears from the signed contract that the amount of escrow moneys deposited is deficient.

 

f)         Maintenance of Escrow Moneys on Deposit in Escrow Account.  The sponsoring broker shall keep all escrow moneys on deposit in an escrow account until a transaction is consummated or terminated, except to the extent that such escrow moneys, or any part of the escrow moneys, shall be disbursed according to the provisions set forth in subsection (g).

 

g)         Disbursement of Escrow Moneys.  Once the payor's depository has honored the deposit of escrow funds, the sponsoring broker shall disburse escrow moneys according to the following requirements, as set forth in Section 20-20(a)(17) of the Act:

 

1)         The sponsoring broker must disburse escrow moneys upon consummation or termination of the transaction.  The actual terms of the contract regarding the release of the escrow moneys shall be adhered to by the sponsoring broker holding these escrow moneys.  The disbursement must be according to the terms of the contract and must be:

 

A)        Made not later than the next business day following the sponsoring broker's receipt of notice of the consummation or termination of the transaction or

 

B)        Otherwise disbursed in accordance with the written direction of all principals to the transaction or their duly authorized agents.

 

2)         Commissions and/or fees earned by a sponsoring broker in any transaction shall be disbursed by that sponsoring broker from the funds deposited in an escrow account no earlier than the day the transaction is consummated or terminated and not later than the next business day after the transaction is consummated or terminated or otherwise in accordance with the written direction of all principals to the transaction or their duly authorized agents.

 

3)         Authorized disbursements are those that are made on behalf of, and at the written direction of, all principals to the transaction or their duly authorized agents.

 

4)         A sponsoring broker shall not withhold, for any period of time, an authorized disbursement of escrow moneys due to any claim for a commission or compensation to any licensee.

 

5)         Transfer of escrow moneys to the closing agent for the transaction may be made up to 2 business days prior to the scheduled closing.

 

6)         As set forth in Section 20-20(a)(17)(A)(i) of the Act, if, prior to the consummation or termination of the transaction, the sponsoring broker receives written direction from all of the principals to the transaction or their duly authorized agents agreeing to a disbursement of the escrow moneys, that sponsoring broker must disburse the escrow moneys according to the written directions. The disbursement must be made not later than the next business day following the sponsoring broker's receipt of the last required written direction.

 

7)         The sponsoring broker may release escrow moneys as set forth in Section 20-20(a)(17)(A)(ii) of the Act that allows a sponsoring broker to disburse escrow moneys prior to the consummation or termination of the transaction in accordance with directions providing for the release, payment or distribution of escrow moneys contained in any written contract signed by the principals to the transaction or their duly authorized agents.  The actual terms of the contract regarding the release of the escrow moneys shall be adhered to by the sponsoring broker holding these escrow moneys.  For example, parties to a transaction sign a contract to purchase that includes language allowing the earnest money to be disbursed by the sponsoring broker if the transaction does not close as provided for in the contract if the sponsoring broker:

 

A)        Provides written notice to the parties as required by the contract at least 14 days prior to the intended disbursement of the earnest moneys; 

 

B)        Indicates how the sponsoring broker intends to disburse the earnest money; and

 

C)        Indicates the date that the sponsoring broker must receive the parties' written objections to the proposed disbursement.

 

8)         As set forth in Section 20-20(a)(17)(A)(iii) of the Act and notwithstanding any other requirements or responsibilities in this Part, if the sponsoring broker receives an order from a court of competent jurisdiction providing for the disbursement of the escrow moneys, that sponsoring broker must disburse the escrow moneys according to the terms of the court order.

 

9)         For the purposes of this Section, "duly authorized agent" shall mean an attorney-in-fact, attorney-at-law who represents one of the principals to the transaction, or any other person the licensee can demonstrate was authorized to act on behalf of a principal to the transaction.

 

h)         Disputes Regarding Escrow Moneys

 

1)         In the event of a dispute in writing over the return or forfeiture of any escrow moneys held by the sponsoring broker or if a sponsoring broker has actual knowledge that any party to a transaction contests or disagrees with an anticipated disbursement of escrow moneys held by that sponsoring broker, the sponsoring broker shall continue to hold the deposit in the sponsoring broker's escrow account until:

 

A)        The sponsoring broker has a written release from all parties or their duly authorized agents consenting to the disposition, in which case the escrow moneys must be disbursed according to the terms of the written direction no later than the next business day after the sponsoring broker's receipt of the last required written release;

 

B)        A civil action is filed, by either the sponsoring broker or one of the parties to the transaction, to determine its disposition, at which time the escrow money may be deposited with the court;

 

C)        The funds are turned over to the State Treasurer or such other appropriate State agency or officer designated under the Act or the Revised Uniform Unclaimed Property Act [765 ILCS 1026], because of inactivity of the account, inability to locate the parties, or inability of the parties to reach a resolution.

 

2)         If the sponsoring broker files an interpleader action and the real estate contract authorizes the sponsoring broker to withdraw from the escrow account amounts necessary to reimburse the sponsoring broker for costs and reasonable attorney's fees associated with the interpleader action, costs and attorney's fees associated with that sponsoring broker's attempt to collect a commission or fee are excluded.

 

i)          Escrow Records.  Each sponsoring broker who accepts escrow money shall maintain, in the sponsoring broker's office or place of business, a bookkeeping system in accordance with sound accounting principles, that shall consist of at least the following escrow records, whether physical or electronic:

 

1)         Journal. A journal shall be maintained for each escrow account.  The journal shall show the chronological sequence in which funds are received and disbursed by the sponsoring broker.

 

A)        For funds received, the journal shall include the date the funds were received, the name of the person on whose behalf the funds are delivered to that sponsoring broker and the amount of the funds delivered.

 

B)        For funds disbursed, the journal shall include the date of disbursement, the payee, the check number, if applicable, and the amount disbursed.

 

C)        A running balance shall be shown after each entry for funds received or disbursed.

 

2)         Ledger.  A ledger shall be maintained for each transaction.  The ledger shall show the receipt and the disbursement of funds affecting a single transaction, such as between buyer and seller or landlord and tenant, or among the respective parties.  The ledger shall include the names of all parties to a transaction, the amount of funds received by the sponsoring broker and the date of receipt.  The ledger shall show the date of any disbursement, the payee, the check number, if applicable, and the amount disbursed.  The ledger shall segregate one transaction from another transaction.  There shall be a separate ledger or separate section of each ledger, as the sponsoring broker elects, for each type of real estate transaction (e.g., lease).  If the ledger and journal are computer generated from the same data entry, the sponsoring broker must maintain copies of the bank deposit slips, bank disbursement slips, other bank receipts, or electronic records to account for the data on the ledger.

 

3)         Monthly Reconciliation Statement. Each sponsoring broker shall reconcile, within 10 days after receipt of the monthly bank statement, each escrow account maintained by the sponsoring broker, except when there has been no transactional activity during the previous month. Reconciliation shall include a written work sheet comparing the balances as shown on the bank statement, the journal, and the ledger, respectively, in order to insure agreement between the escrow account, the journal and the ledger entries for the escrow account.  Each reconciliation shall be kept for at least 5 years from the last day of the month covered by the reconciliation.

 

4)         If escrow moneys are transferred from an escrow account to another account for disbursement, the sponsoring broker must maintain a physical or electronic copy of all records reflecting a disbursement from the other account.

 

5)         Master Escrow Account Log. Each sponsoring broker shall maintain a Master Escrow Account Log identifying all escrow bank account numbers and the name and address of the bank where the escrow accounts are located.  The Master Escrow Account Log must specifically include all bank account numbers opened for individual transactions, even if account numbers fall under another umbrella account number.

 

6)         A sponsoring broker may employ a more sophisticated bookkeeping system based on sound accounting principles, including a system utilizing electronic data.  Any system must contain or produce printed records containing the information required by this Section, although it need not be in the same format as provided for in this Section.

 

7)         As set forth in Section 20-20(a)(18) of the Act, the sponsoring broker shall make available to the Division, within 24 hours after a request, all escrow records and related documents maintained in connection with the practice of real estate and located in the physical or virtual office as set forth in Section 1450.755.

 

8)         Copies of all Escrow Money Instruments.  Except as otherwise provided by law, the sponsoring broker shall retain copies of all escrow money instruments received from a principal as part of a transaction, including copies of all personal checks, cashier's checks, certified checks, money orders, promissory notes, or other financial instruments.  The sponsoring broker shall also retain copies and/or documentation of all funds disbursed from or transferred in or out of an escrow account.

 

9)         If escrow records are lost, stolen, or destroyed, the sponsoring broker must:

 

A)        Report the loss to the Division's enforcement division within 48 hours; and

 

B)        Immediately obtain copies of monthly bank statements, deposit and disbursement receipts, and any other available records to reconstruct the escrow records.

 

10)        A sponsoring broker may delegate the bookkeeping duties under this Part to another qualified person, including a designated managing broker, bookkeeper, accountant, unlicensed assistant, licensed assistant, or sponsored licensee.  These duties must not be delegated to a new broker licensee who has not successfully completed the 45-hour post-license education.  Compliance with bookkeeping duties remains the responsibility of the sponsoring broker.  The sponsoring broker is ultimately responsible for the proper administration of the escrow account pursuant to this Part.

 

j)          Sponsored Licensees.  Sponsoring brokers shall institute a company policy to ensure that sponsored licensees tender escrow moneys received in compliance with this Part.  Sponsored licensees, whether managing brokers, brokers, or residential leasing agents, may not maintain their own escrow accounts.

 

k)         Offices.  Physical or virtual offices may maintain escrow accounts in compliance with this Part or may transmit all escrow moneys received to the principal office, but not to another office.

 

1)         If the office does maintain escrow accounts, all of the requirements of this Part apply, including maintaining all required escrow records and submitting all required escrow forms to the Division.

 

2)         If the office does not maintain escrow accounts but instead transmits all escrow moneys received to the principal office, all escrow moneys must be transmitted by that office to the principal office no later than the next business day following the transaction.  A transaction exists once an agreement has been reached and an accepted real estate contract is signed, or a lease is agreed to, by the parties.  The office must maintain records showing the date the escrow moneys were transmitted to the principal office.  Funds received by the principal office from another office shall be placed in the sponsoring broker's escrow account no later than the next business day following receipt of the funds from that office.

 

l)          Escrow Requirements for Property Management Activities. Security deposits remitted to a sponsoring broker shall be maintained in an escrow account for the duration of the lease unless the tenant waives this requirement in writing and except if prohibited by State laws and local ordinances. The waiver, if included in the lease, shall appear in bold print.

 

m)        Notice to the Division of the Identity of All Escrow Accounts and the Consent to Examine and Audit All Accounts

 

1)         Each sponsoring broker shall, at the time of the original application for licensure, in a format provided by the Division, include the name of the banks or other recognized depositories in which each escrow account is maintained, the name of each account, and the names of the persons authorized to withdraw funds from those accounts, and shall, as a condition of licensure, consent to the examination and audit by the Division of all escrow accounts, whether or not the account is identified on the form.

 

2)         Updated information shall be submitted by the sponsoring broker to the Division within 10 days after a change of depository, method of doing business, or persons authorized to make withdrawals.

 

3)         Updated information shall not be required each time a new escrow account is opened for an individual transaction when the account falls under an umbrella account that has already been identified.  The identity of each of these individual escrow accounts must be included in the Master Escrow Account Log required by subsection (i)(5).

 

n)         If a licensee, serving as an escrow agent in a transaction, utilizes a third party service or business to collect, manage, transmit, or disburse earnest money, the licensee is still responsible for the requirements as stipulated by the Act and this Part.

 

o)         Violations.  Any licensee who violates this Part may be deemed to have endangered the public interest under Section 20-20(a)(21) of the Act and may be subject to a temporary suspension pursuant to Section 20-65 of the Act.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.755  Recordkeeping

 

a)         A sponsoring broker shall keep, or cause to be kept, at the sponsoring broker's physical or virtual principal office, escrow records, transaction records, employment agreements and records reflecting the payment of compensation, as set forth in this Section.

 

1)         Escrow Records for Each Interest Bearing and Non-Interest Bearing Escrow Account or Account Where Escrow Funds Have Been Deposited. These records shall include:

 

A)        Journals required by Section 1450.750(i)(1);

 

B)        Monthly bank statements;

 

C)        Ledgers required by Section 1450.750(i)(2);

 

D)        Monthly reconciliations required by Section 1450.750(i)(3); and

 

E)        Master Log of Escrow Accounts required by Section 1450.750(i)(5).

 

2)         The escrow records required by subsection (a)(1) shall be maintained for 5 years.  The sponsoring broker shall ensure that the escrow records for the immediate prior 2 year period are maintained in the sponsoring broker's office or place of business and shall be produced within 24 hours after a request by the Division pursuant to Section 1450.750(i)(7).  The balance of the records can be available at another location and is subject to request by the Division as set forth in Section 20-20(a)(27) of the Act.  Any escrow records more than 2 years old and stored at a location other than the sponsoring broker's office, whether physical or virtual, shall be made available for inspection during normal business hours, through physical or secure electronic means, as soon as available, but within 30 days after the Division's request.

 

3)         Records relating to transactions shall be retained by the sponsoring broker physically or electronically. 

 

A)        These records might include, but are not limited to, copies of the following:

 

i)          Residential Property Transactions.  Signed contracts, including offers and counteroffers, written release of escrow funds, written brokerage agreements whether exclusive or non-exclusive, consent to dual agency disclosure, notices of designated agency or no agency, written direction for deposit into interest bearing special account, power of attorney, disclosures (e.g., lead paint, radon, seller disclosure), closing statements and other transaction records required to be retained by the Act.

 

ii)         Property Management/Leasing. Any rental finding agreement, property management agreements, leases, periodic accounting, or statement to the owner regarding the receipts and disbursements, and any other documents set forth in subsection (a)(3)(A)(i) that are relevant to the transaction.

 

iii)        Commercial Representation. Tenant or owner representation agreement, letters of intent, leases, any written modifications to an executed lease and any other documents set forth in subsection (a)(3)(A)(i) that are relevant to the transaction.

 

B)        The documents set forth in this subsection (a)(3) are not all inclusive and are examples of relevant documents to be retained.  Any similar documents pertinent to a particular transaction shall also be retained.  Any information contained on the outside of a physical transaction file shall be considered part of that file.

 

C)        Transaction records shall be maintained for 5 years.  The sponsoring broker shall ensure that any transaction records involving active or pending transactions or representation, or transactions in which escrow funds or moneys belonging to others were received and have not yet been disbursed for the immediate prior 2 years shall be maintained in the office or place of business.  All transaction records maintained at the office shall be made available for inspection and audit during normal business hours by the Division staff no later than 24 hours after a request for escrow records and related documents.  Any transaction records more than 2 years old and stored at a location other than the sponsoring broker's office, whether physical or virtual, shall be made available for inspection during normal business hours, through physical or electronic means, as soon as available but no later than 30 days after the request.

 

D)        Sponsoring brokers may allow their sponsored licensees to maintain duplicate transaction records.

 

4)         Employment or independent contractor agreements required by Section 10-20 of the Act shall be maintained for 5 years after the sponsored licensee is no longer associated with the sponsoring broker.  The sponsoring broker shall maintain a written employment or independent contractor agreement for every licensee who is employed by or associated with the sponsoring broker.  A copy of the employment or independent contractor agreement for each sponsored licensee shall be maintained at the sponsoring broker's office location registered with the Division.

 

5)         Records reflecting the payment of compensation for the performance of licensed activities shall be maintained for 5 years.

 

b)         All records may be kept in physical or electronic form. If the records are kept electronically, the sponsoring broker shall ensure that a back-up is made at reasonable intervals, but at least once a month, so as to protect the data.  Back-ups can be kept either at the sponsoring broker's office or offsite.

 

c)         Any disclosure required by the Act, or this Part may be provided in physical form or, if agreed to by both parties, in electronic format and may incorporate electronic signatures.  Copies of all disclosures, whether in physical or electronic form, must be retained by the sponsoring broker.

 

d)         If escrow records are lost, stolen, or destroyed, the sponsoring broker must:

 

1)         Report the loss to the Division's enforcement division within 48 hours; and

 

2)         Immediately obtain copies of monthly bank statements, deposit and disbursement receipts, and any other available records, to reconstruct the escrow records.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.760  Disclosure of Compensation

 

Pursuant to Section 10-10(c) of the Act, a licensee shall disclose, in writing, either physically or electronically, any compensation the licensee expects to receive or that the licensee's sponsoring broker will receive that arises out of a referral to any person or entity in which the licensee or licensee's sponsoring broker has any interest greater than 1%.  This provision applies when the compensation is for the purpose of the client obtaining services related to the transaction, including any financial institution, insurance broker, mortgage broker, home inspector or any other third party services.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.765  Disclosure of Licensee Status

 

A licensee who sells, leases, or purchases any property or any interest in a property that is the subject of the transaction, whether directly or indirectly, for purposes of Section 10-27 of the Act, must disclose, in writing to all parties to the transaction, their licensure status prior to initiating a transaction when the licensee:

 

a)         Is selling, leasing, or seeking to purchase real estate as sole owner, tenant in common, joint tenant, or tenant by the entirety;

 

b)         Holds a beneficial interest in a land trust selling, leasing, or seeking to purchase an interest in the subject real estate;

 

c)         Is a partner in a partnership, limited partnership or limited liability partnership selling, leasing, or seeking to purchase an interest in the subject real estate;

 

d)         Is an officer, director and/or shareholder of a corporation, other than a publicly traded corporation, selling, leasing, or seeking to purchase an interest in the subject real estate;

 

e)         Is a manager or member of a limited liability company selling, leasing, or seeking to purchase an interest in the subject real estate; or

 

f)         Has any direct or indirect interest in the subject real estate.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.770  Brokerage Agreements and Property Management Agreements

 

a)         A sponsoring broker entering into a brokerage relationship shall set forth the terms of that relationship in a written brokerage agreement pursuant to Section 15-50 of the Act.

 

b)         Exclusive brokerage agreements, including exclusive listing agreements and exclusive buyer or tenant brokerage agreements, shall:

 

1)         Be in writing and shall indicate the minimum services that must be provided as set forth in Section 15-75 of the Act.  For purposes of this Section, "in writing" or "written" means physical or electronic writing.

 

2)         Failure to include language in a brokerage agreement providing for minimum services as set forth in Section 15-75 of the Act or language waiving those minimum services will, under the definition of "exclusive brokerage agreement" in Section 1-10 of the Act, result in the brokerage agreement being considered to be non-exclusive.

 

3)         A licensee may discuss a possible future brokerage agreement with a consumer whose property is exclusively listed with another sponsoring broker or who is subject to a written exclusive buyer or tenant brokerage agreement only if:

 

A)        The consumer initiates the contact; or

 

B)        The following occurs:

 

i)          The licensee makes a request in writing, mailed or emailed, to the sponsoring broker who has the exclusive agreement for the expiration date of the agreement between the consumer and the sponsoring broker who has the exclusive brokerage agreement;

 

ii)         The licensee who has the exclusive brokerage agreement fails to provide a response in writing, mailed or emailed, within 10 calendar days;

 

iii)        The information from the broker or sponsoring broker who has the exclusive brokerage agreement is not received within 14 calendar days; and

 

iv)        The requested information cannot be obtained by the licensee from another source of shared broker information.

 

c)         Written buyer or tenant brokerage agreements, whether exclusive or non-exclusive, shall contain the following:

 

1)         Agreed basis or amount of compensation and time of payment;

 

2)         Name of the sponsoring broker, designated agents, and the buyers or tenants;

 

3)         Signatures of the sponsoring broker, the buyers, tenants, or authorized signatories on behalf of the buyers or tenants;

 

4)         Duties of the buyer or tenant's broker, or duties of the residential leasing agent; and

 

5)         The duration of the brokerage agreement, including an automatic expiration date, or if longer than one year, the right to terminate the agreement annually with 30 days prior written notice; and

 

d)         Written listing agreements, whether exclusive or non-exclusive, shall contain the following:

 

1)         List price;

 

2)         Agreed basis or amount of commission and the time of payment of the commission and any amounts paid to cooperating brokers who represent other parties to a transaction;

 

3)         Name of the sponsoring broker, designated agents, and owners of the real property;

 

4)         Identification of the real property involved (address and/or legal description);

 

5)         Signatures of the sponsoring broker and owners or an authorized signatory on behalf of the owners;

 

6)         Duties of the listing broker or residential leasing agent; and

 

7)         The duration of the listing agreement, including an automatic expiration date, or if longer than one year, the right to terminate the agreement annually with 30 days prior written notice.

 

e)         Written property management agreements shall be required if duties performed include licensed activity as defined by "broker" in Section 1-10 of the Act.

 

f)         Written property management agreements shall at a minimum contain the following:

 

1)         Identification of the real property involved (address and/or legal description);

 

2)         Name of the sponsoring broker, designated agents, and owners of the real property;

 

3)         Signatures of the sponsoring broker and owners or an authorized signatory on behalf of the owners;

 

4)         Duties of the broker managing the property and of the owner;

 

5)         List price;

 

6)         Agreed payment or amount of compensation and the timing of payments, and any amounts paid to cooperating brokers, including those who represent other parties to the transaction;

 

7)         The duration of the property management agreement, including an automatic expiration date, or if longer than one year, the right to terminate the agreement annually with 30 days prior written notice.

 

g)         Licensees shall enter into a written brokerage agreement with a client as soon as reasonably practical but no later than:

 

1)         showing or marketing the property of a seller or owner; or

 

2)         prior to initiating the purchase or lease of a property for a buyer or tenant.

 

h)         Written brokerage agreements shall expressly provide that no amendment or alteration to the terms, with respect to the amount of commission or with respect to the time of payment of commission, shall be valid or binding unless made in writing and signed by the parties.

 

i)          No licensee shall use real estate contract forms to change previously agreed-upon commission payment terms.

 

j)          If a listing agreement states that, in the event of a default by a buyer, the sponsoring broker's full commission or fees will be paid out of an earnest money deposit, with any remaining earnest money to be paid to the seller, the provision shall appear in the listing agreement in letters larger than those generally used in the listing agreement.

 

k)         Each brokerage agreement shall clearly state that it is illegal for either the owner or any licensee to refuse to show, display, lease or sell to any person because of, race, color, religion, national origin, sex, ancestry, age, marital status, physical or mental disability, familial status, pregnancy, sexual orientation, including, but not limited to, gender identity, unfavorable discharge from the military service, military status, order of protection status, an arrest record, immigration status, source of income, or any other class protected by Article 3 of the Illinois Human Rights Act.

 

l)          Each brokerage agreement for a residential property of 4 units or less that provides for a protection period subsequent to its termination date shall also provide that no commission or fee will be due and owing pursuant to the terms of the brokerage agreement if, during the protection period, a valid, written brokerage agreement is entered into with another sponsoring broker.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.775  Written Agreements

 

a)         No licensee shall solicit, accept, or execute any contract or other document relating to a real estate transaction that contains any blanks with the intention of filling them in after the parties have signed or initialed the contract or other document.  This shall not be construed to mean that there will never be a blank space on a contract or any other document.

 

b)         No licensee shall make any addition to, deletion from or alteration of any signed contract or other document relating to a real estate transaction without the written consent or direction from all signatories.  No licensee shall process any contract or other document that has been altered after being signed, unless each addition, deletion or alteration is signed or initialed by all signatories at the time of the addition, deletion, or alteration.

 

c)         A true copy of the original or corrected contract or other document relating to a real estate transaction shall be delivered within 24 hours after the time of signing or initialing the original or correction to the person signing or initialing the contract or other document.

 

d)         All forms used by licensees intended to become binding real estate contracts shall clearly state that fact in the heading in large bold type.  No licensee shall use a form designated Offer to Purchase when it is intended that the form shall be a binding real estate contract.

 

e)         This Section applies to all written agreements, whether physical or electronic.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.780  Referral Fees and Affinity Relationships

 

a)         No licensee may pay a referral fee to an unlicensed person who is not a principal to the transaction.  Any person receiving a referral fee must be duly licensed as a residential leasing agent, broker or managing broker in Illinois or hold an equivalent license of another state or country of domicile.  If the person's country of domicile does not have a licensing statute for licensees, then in order to receive a referral fee, the person must comply with the laws, if any, of the country of domicile concerning the practice of real estate.

 

b)         Request for Referral Fee

 

1)         No licensee may request a referral fee unless reasonable cause for payment of the referral fee exists.  Reasonable cause for payment of a referral fee means:

 

A)        An actual introduction of a client was made to a licensee; or

 

B)        A contractual referral fee relationship exists with the licensee.

 

2)         No residential leasing agent licensee may request, or be paid, a referral fee, except for a referral fee from a lease or rental of residential real estate.

 

3)         The fact that reasonable cause to demand a referral fee exists does not necessarily mean that a legal right to the referral fee exists.

 

4)         A licensee is prohibited from interfering with the agency relationship of another licensee or attempting to induce a client to break an exclusive listing or an exclusive representation agreement with another licensee for the purpose of replacing that agreement with a new listing or representation agreement in order to obtain a referral fee.  For purposes of this Section, an agency relationship shall be deemed to exist when a written, exclusive agency agreement (either a listing or buyer representation agreement) is entered into.  Interfering with the agency relationship of another licensee includes, but is not limited to:

 

A)        Demanding a referral fee from another licensee without reasonable cause;

 

B)        Threatening to take harmful action against the client of another licensee because of their existing agency relationship and in order to obtain a referral fee; or

 

C)        Counseling the client of another licensee on how to terminate or amend an existing agency agreement in order to obtain a referral fee.

 

5)         Communicating corporate relocation policies or benefits to a transferring employee, as long as that communication does not involve advice or encouragement on how to terminate or amend an existing agency agreement, shall not be considered interference under subsection (b)(4).

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.785  Rental Finding Services

 

a)         Definition and Application

 

1)         A rental finding service is any business that finds, attempts to find or offers to find, for any person who pays or is obligated to pay a fee or other valuable consideration, a unit of rental real estate or a lessee to occupy a unit of rental real estate not owned or leased by the rental finding service.

 

2)         Any person, corporation, limited liability company, partnership, limited partnership, or limited liability partnership that operates a rental finding service shall be considered a licensee, obtain the appropriate license, and comply with this Section.

 

3)         This Section shall not apply to persons exempted by Section 5-20 of the Act.

 

b)         Contract.  A rental finding service shall, prior to accepting a fee or other valuable consideration for services, enter into a written contract with the person for whom services are to be performed and deliver to the person a physical or electronic copy of the contract.  The contract shall include, in the case of a rental finding service that finds, offers, or attempts to find a unit of rental real estate for a person, at a minimum, the following:

 

1)         The term of the contract;

 

2)         The total amount to be paid for the services to be performed and a clear designation of the amount, if any, paid in advance of the performance of the services;

 

3)         A statement regarding whether the fee paid in advance is refundable or non-refundable, including the following in uniform type of a size larger than that used for the balance of the contract:

 

A)        Precise conditions, if any, upon which a refund is based;

 

B)        The conditions shall occur within 90 days from the date of the contract; and

 

C)        The refund shall be paid no later than 10 days after demand, provided the payment of the fee has been honored;

 

4)         The type of rental unit desired, the geographical area requested, and the rent the prospective tenant is willing to pay;

 

5)         A detailed statement of rental finding services to be performed by the licensee, which shall include, at a minimum, the delivery to the prospective tenant of all rental information set forth in subsection (c);

 

6)         A statement that the contract shall be null and void if information concerning possible rental units or locations furnished by the licensee is not current or accurate with respect to the type of rental unit desired and as set forth in subsection (b)(4).  A listing for a rental unit that has not been available for rent for over 2 days shall be prima facie proof of not being current;

 

7)         A statement that information furnished by the licensee concerning possible rental units may be up to 2 days old; and

 

8)         A statement requiring the licensee to refund all fees paid in connection with the contract if the contract is null and void for any reason.  The licensee shall not impose any condition for the refund, and the contract shall state when the refund will be paid.

 

c)         Disclosure.  As required by subsection (b)(5), the following information for each rental unit the rental finding service is listing shall be provided, in writing, to the person with whom the contract is entered:

 

1)         The name, address, email address, and telephone number of the owner of each rental unit or the owner's authorized agent;

 

2)         A description of the rental unit;

 

3)         The amount of rent requested;

 

4)         The amount of security deposit required;

 

5)         A statement describing utilities that are located in the rental unit and included in the rent;

 

6)         The occupancy date and the term of lease;

 

7)         A statement setting forth the source of the information disclosed (i.e., owner, owner's authorized agent); and

 

8)         All other conditions that may reasonably be expected to be of concern to the prospective tenant.

 

d)         Permission of Owner.  A rental finding service shall not list or advertise any rental unit without the express written authority of the owner or owner's authorized agent of each unit.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.790  Broker Price Opinions and Comparative Market Analyses

 

a)         An individual who is a licensed managing broker or broker and also a licensed appraiser as set forth in the Real Estate Appraiser Licensing Act of 2002 [225 ILCS 458] must include the broker's or managing broker's name and license number, not the appraiser's license number, on the initial page of the broker price opinion or comparative market analysis.

 

b)         A broker or managing broker preparing a broker price opinion or comparative market analysis that does not comply with Section 10-45 of the Act is subject to discipline for:

 

1)         False, untruthful, or misleading statements;

 

2)         Inadequate or improper preparation of a broker price opinion or comparative market analysis; or

 

3)         Any violation set forth in Section 20-20 of the Act.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.800  Confidentiality

 

Licensees in receipt of confidential information must take reasonable steps to safeguard that information from unauthorized disclosure.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.810  Failure to Disclose Information Not Affecting Physical Condition of Real Estate

 

This Section is intended to apply to actions taken by the Department under the Act and to all civil actions in Illinois.  No cause of action shall arise against a licensee for the failure to disclose:

 

a)         That an occupant of the real estate was afflicted with Human Immunodeficiency Virus (HIV) or any other medical condition;

 

b)         That the real estate 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 on that real estate, as set forth in Section 15-20 of the Act.  These acts shall include, but are not limited to, murder or suicide;

 

c)         Fact situations regarding real estate that is not the subject of the transaction; or

 

d)         Physical conditions located on real estate that is not the subject of the transaction and do not have a substantial adverse effect on the value of the real estate that is the subject of the transaction.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.820  Dual Agency Prohibition

 

A licensee shall not serve as a dual agent in any transaction when the licensee, or an entity in which the licensee has or will have any ownership interest, directly or indirectly, is a party to the transaction.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.830  Disclosure of Contemporaneous Offers

 

"Contemporaneous offers" under Section 15-15(b) of the Act shall be offers to purchase or lease on behalf of 2 or more clients represented by the same designated agent for the same real estate parcel or unit that the designated agent knows or has reason to know will be taken under consideration by the owners or owners' representative at the same time.  If there are contemporaneous offers from 2 or more clients of a designated agent, the designated agent shall provide written disclosure, physically or electronically, to those clients and, upon request by the clients, refer the clients to another designated agent.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.900  Unprofessional Conduct

 

Conduct that constitutes dishonorable, unethical, or unprofessional conduct of a character likely to deceive, defraud or harm the public includes, but is not limited to:

 

a)         Failure to act in the best interests of a client.

 

b)         Deliberately misleading a client as to the market value of property.

 

c)         Failing to advertise the property pursuant to the terms of the listing agreement.

 

d)         Deliberately misrepresenting to prospective purchasers or their agents the condition of property or the availability of access to show the property.

 

e)         Purchasing or transferring property through an intermediary in order to conceal the purchase by the licensee.

 

f)         Inducing a seller to list property through false representations.

 

g)         Inducing a seller through false representations or false promises to transfer property to the licensee.

 

h)         Taking unfair advantage of a client's or customer's age, disability, or lack of understanding of the English language.

 

i)          Engaging in licensed activities with the public or other real estate licensees in a manner that is abusive, harassing, or lewd.

 

j)          Representing oneself as a sponsoring broker or designated managing broker without providing actual supervision and management of the real estate entity or licensees.

 

k)         Failing to reasonably safeguard confidential information or improperly using confidential information.

 

l)          Obstructing an inspection, audit, investigation, examination, or disciplinary proceeding.

 

m)        Violation of Section 1450.750 (Special Accounts).

 

n)         Assisting or inducing a licensee or unlicensed individual to violate the Act or this Part.

 

o)         Any conduct constituting a breach of duty to the client causing harm to the client in the future.  In establishing harm, the Department need not prove actual economic damage to the client.

 

p)         Use of a managing broker license to permit or enable a broker, residential leasing agent, or other individual to operate or manage a licensed real estate entity without actual participation in and control of that entity by the designated managing broker.

 

q)         Accessing a property or granting permission to access a property without proper authorization.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.905  Temporary Suspension

 

The Secretary may temporarily suspend a license without a hearing, simultaneously with the institution of proceedings for a hearing provided for in Section 20-60 of the Act, if the Secretary finds evidence indicating that the public interest, safety, or welfare imperatively requires emergency action.  Emergency action is imperative when a licensee's conduct poses a threat that the public's or another licensee's money or other property will be stolen or embezzled or that continued licensure of a licensee will be a threat to the safety of the public or another licensee. 

 

a)         The Department may consider any one or more of the following acts committed by a licensee as cause for temporary suspension, including, but not limited to:

 

1)         Failure to account for or to remit any moneys or documents that belong to others as set forth in Section 20-20(a)(16) of the Act;

 

2)         Failure to maintain and deposit in a special or escrow account, separate and apart from personal and other business accounts, all escrow moneys belonging to others entrusted to a designated managing broker or sponsoring broker while acting as a licensee, escrow agent or temporary custodian of the funds of others, as set forth in Section 20-20(a)(17) of the Act;

 

3)         Failure to make escrow records and related documents for the immediately preceding 2 years available, within 24 hours after request, to the Division during normal business hours pursuant to Section 20-20(a)(18) of the Act and Section 1450.755.  This action alone may not be sufficient grounds for a temporary suspension;

 

4)         Failure to make escrow records and related documents more than 2 years old available, within 30 days after request, to the Division during normal business hours, in physical or electronic form, as set forth in Section 20-20(a)(27) of the Act and Section 1450.755; or

 

5)         Commingling money or property of others with the licensee's own money or property, as set forth in Section 20-20(a)(22) of the Act.

 

b)         A petition for temporary suspension shall:

 

1)         State the statutory basis for the action petitioned;

 

2)         Allege facts, supported by sufficient evidence; and

 

3)         Be presented to the Secretary.

 

c)         An order for temporary suspension shall:

 

1)         Contain sufficient notice regarding the basis for the action;

 

2)         Recite the statutory basis for the action;

 

3)         Demand immediate surrender of the license; and

 

4)         Be signed by the Secretary.

 

d)         A notice of temporary suspension shall accompany the order and shall:

 

1)         Set a hearing date within 30 days after the date on which the order takes effect;

 

2)         Identify the location where the hearing will take place; and

 

3)         Provide information as to where the licensee may obtain the Department's Rules of Practice in Administrative Hearings (68 Ill. Adm. Code 1110).

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.910  Non-Disciplinary Action

 

Non-disciplinary action may include, but is not limited to:

 

a)         Issuance of a citation for failure to complete, or untimely completion of, required CE;

 

b)         Restricting a licensee's access to escrow funds;

 

c)         Requiring the successful completion of licensed real estate courses, including courses for those licensees who would otherwise not be required by Section 5-70 of the Act to complete CE;

 

d)         Requiring the licensee to provide any report, record or document regarding licensed activities the Department deems relevant and appropriate; or

 

e)         Imposition of an administrative fee.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.915  Suspension or Revocation of a Sponsoring Broker or Designated Managing Broker License

 

a)         Suspension or Revocation of Sponsoring Broker

Upon the effective date of a suspension or revocation of the license of a sponsoring broker or sole proprietorship:

 

1)         The licenses of all sponsored licensees automatically become inactive.  Each managing broker licensee may resume licensed activities only upon securing a new sponsorship, either as a self-sponsored managing broker or by another sponsoring broker.  Each broker or residential leasing agent may resume licensed activities only upon securing a sponsorship with another sponsoring broker.

 

2)         Suspensions or revocations of a sponsoring broker shall not have an effect on the enforceability of any pending, executed real estate contracts.

 

A)        The sponsoring broker whose license has been suspended or revoked shall send a written notice, in physical or electronic form, to all clients with a pending, executed real estate contract stating that the sponsoring broker's license has been suspended or revoked and that the suspension or revocation shall not have an effect on any pending, executed real estate contracts.  The notice shall also identify the name, address, email, and telephone number of the person in control of the escrow money.  To the extent clients require additional real estate services, the notice shall provide that the clients may seek real estate services from another sponsoring broker.

 

B)        A suspension or revocation shall not preclude the receipt of any commission or other compensation earned by the suspended or revoked sponsoring broker or other formerly sponsored licensee prior to the effective date of the suspension or revocation of the sponsoring broker.

 

3)         If a broker's suspension or revocation directly relates to a transaction for which compensation was earned, and the broker already received the compensation related to the transaction leading to the suspension or revocation of the license, the Department or Board may consider that fact when imposing discipline.

 

b)         Suspension or Revocation of a Designated Managing Broker

In the event of a suspension or revocation of a designated managing broker license, offices may operate for 15 days without a replacement designated managing broker.  Within 15 days after a suspension or revocation of a designated managing broker license, if a replacement designated managing broker has not been secured or a written request for authorization to continue operation has not been submitted to the Division, the offices must cease licensed activities.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.920  Inspections and Audits

 

a)         Inspections 

 

1)         The Division is authorized to inspect areas of a sponsoring broker's office that are open and generally available to the public at any time during normal business hours, with or without the sponsoring broker's consent.  The Division, with at least 24 hours' notice, may conduct a visual and physical inspection of the non-public areas of a sponsoring broker's office and interview any person, including any licensee or non-licensee, who may have knowledge or information about the licensee's real estate practice, with or without the consent of either the sponsoring broker or designated managing broker.  The licensee may have an attorney present.  The Division's action will not be postponed due to a licensee's attorney's unreasonable delay.

 

2)         The Division is authorized to inspect a virtual office of the sponsoring broker, with or without the sponsoring broker's consent. The Division, with at least 24 hours' notice, may conduct an inspection of the digital infrastructure and all electronic records in the sponsoring broker's virtual office, and interview any person, including any licensee or non-licensee who may have knowledge or information about the licensee's real estate practice, with or without consent of either the sponsoring broker or designated managing broker. The licensee may have an attorney present. The Division's action will not be postponed due to a licensee's attorney's unreasonable delay.

 

3)         Upon any written or oral request by the Division for documents in physical or electronic form, a licensee shall, except as otherwise allowed by subsection (b), produce the requested documents within 30 days after the request.

 

b)         Escrow Audits 

The Division is authorized to audit special accounts, escrow records and documents related to any escrow accounts maintained by the licensee.  Any records or documents may be provided in physical or electronic form.  Escrow audits may be conducted at any time with the sponsoring broker's consent or without consent with at least 24 hours' notice.  The licensee may have an attorney present.  The Division's action will not be postponed due to a licensee's attorney's unreasonable delay.  Escrow audits may include:

 

1)         A review and examination of all required, original escrow records as set forth in this Part.

 

2)         A review and examination of any document, including physical or electronic originals, related to a licensee's escrow accounts.

 

3)         Interviews of any person, including any licensee or non-licensee, who may have knowledge or information about the licensee's practices for maintaining and administering escrow accounts.

 

4)         The Division may require audits of special accounts of sponsoring brokers by licensed certified public accountants as set forth in this Section.

 

A)        The Division shall notify in writing the sponsoring broker responsible for the special accounts that an auditor has been retained to audit the special accounts, the identity of the auditor or auditing firm, and that the sponsoring broker shall submit all pertinent records for audit within 30 days after the written notice.

 

B)        Any licensed certified public accountant performing an audit for the Division pursuant to the provisions of this Section or the Act shall provide a written report to the Division, with a copy to the sponsoring broker, detailing the findings of the auditor, with specific reference to compliance with the special account requirements of the Act and this Part.

 

C)        The sponsoring broker shall be liable for the cost of the audit if an order is issued by the Department pursuant to Section 20-60 of the Act finding that escrow moneys were misappropriated by the sponsoring broker or the sponsoring broker's employees, independent contractors, agents, or designees.

 

c)         Pursuant to Section 5-45(d) of the Act, the Division is authorized to obtain a licensee's original records, including physical or electronic records, for the purposes of inspection, audit, and reproduction.  The Division shall promptly return all original documents or records to the licensee.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.925  Audits of Special Funds by Outside Auditors (Repealed)

 

(Source:  Repealed at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.930  Case File Review Committee

 

a)         The Division and the Board may appoint a Case File Review Committee that shall be composed of at least 2 members of the Board, the Real Estate Coordinator, the Real Estate Chief of Investigations and the Real Estate Chief of Prosecutions or their designees.  The Case File Review Committee members may take action set forth in this Section in person or through other means of communication.

 

b)         The Case File Review Committee may exercise the following duties and responsibilities:

 

1)         Recommend whether a complaint or case file be closed or refer the file to Investigations or Prosecutions for further review and action.

 

2)         Review reports and files submitted to the Case File Review Committee; and

 

3)         Request and review any investigation or prosecution files that the Department may have closed.

 

c)         The Case File Review Committee shall report a summary of its actions and findings at each Board meeting.

 

d)         In determining what action to recommend to the Department with regard to an investigation and/or prosecution of a complaint or case file, the Case File Review Committee shall consider factors including, but not limited to:

 

1)         The effect on the public's health, safety, and welfare;

 

2)         Any indication of fraud;

 

3)         Any indication of commingling or embezzlement;

 

4)         Evidence of escrow account shortages or discrepancies;

 

5)         Refusal to provide escrow account records or related documents within the required time period;

 

6)         Prosecutorial merit; or

 

7)         Any alleged or potential violation of the Act or this Part.

 

e)         Disqualification of a Case File Review Committee member.  A Case File Review Committee member shall be recused from consideration of a case file when conflict of interest, or the appearance of a conflict of interest or bias or prejudice, would prevent that Case File Review Committee member from being fair and impartial.

 

f)         Participation in the initial stages of the handling of a case file, including participation on the Case File Review Committee and in informal conferences, shall not bar a Case File Review Committee member from later participating in a formal hearing or in deliberating the case and making a recommendation to the Director.

 

g)         Any meetings of the Case File Review Committee are an exception to the Open Meetings Act [5 ILCS 120] and shall be closed to the public, in accordance with Section 2(c)(15) of that Act.

 

h)         Nothing in this Section shall require the Department to utilize the services of the Case File Review Committee to close any case file; however, the Department shall be required, as set forth in this Section, to advise the Case File Review Committee of such actions that are taken by the Department.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.935  Peer Review Advisor

 

a)         In accordance with Section 25-21 of the Act, the Department may, in its discretion, contract with a licensee to act as an advisor to the Department regarding public complaints and alleged violations forwarded by the Department to the Peer Review Advisor. 

 

b)         The Department shall not be bound by any recommendation or advice provided by a Peer Review Advisor.

 

c)         The Department shall only refer matters to the Peer Review Advisor that involve the actions of an unlicensed person or a licensee at the same or lower level of licensure held by the Peer Review Advisor.

 

d)         The Peer Review Advisor shall issue any recommendation or findings to the Department in writing unless expressly waived by the Department.

 

(Source:  Amended at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.940  Rules of Practice in Administrative Hearings

 

The Department of Financial and Professional Regulation Rules of Practice in Administrative Hearings (68 Ill. Adm. Code 1110) shall apply to all Department administrative hearings.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.945  Real Estate Recovery Fund

 

a)         Necessity of Notice

When any person obtains a judgment in a circuit court that may result in collection from the Real Estate Recovery Fund, that person shall notify the Department of the judgment in writing within 30 days after the entry of the judgment and shall notify the Department in writing, within 20 days, notice of all supplementary proceedings to allow the Department to intervene pursuant to Section 20-90.

 

b)         Aggrieved Person

"Aggrieved person", as used in Sections 20-85, 20-90 and 20-105 of the Act, means a person who has suffered harm or other injury as a result of the act or omission of a licensee or an unlicensed employee of a licensee in connection with licensed activities, including licensees who are a principal to the transaction but are not providing licensed activities in the transaction, as set forth in the Act.

 

c)         Notice

The notice required by Section 20-90 of the Act or by this Section shall be sent by certified mail, return receipt requested, by a recognized overnight courier service, or shall be delivered by hand to the office of the Department in Chicago, Illinois, Attention: General Counsel.

 

d)         Contents of Notice

Every notice required by Section 20-90 of the Act or by this Section shall include:

 

1)         Copies of the following documents provided by the aggrieved parties:

 

A)        The complaint and any amended complaints showing the "Filed" stamp of the Clerk of the Court in which the complaint was filed; 

 

B)        The judgment order and any post-judgment orders entered by the Court; and

 

C)        Notice of all supplementary proceedings, which notice shall be provided to the Department at least 20 days prior to any such proceedings.

 

2)         Copies of relevant documents available to the claimant, including:

 

A)        Real estate sales contract, lease, closing statement, disbursement directions or other evidence of title to real property on which the claim is based.  If the claimant does not possess title, evidence of the interest in real property on which the claim is based (evidence includes documents such as title policy, deed, or lease); and

 

B)        Proof of any check, money order, or other method of payment regarding earnest money or security deposit, other negotiable instruments or dishonored checks issued by the licensee.

 

3)         An itemized statement of losses of actual cash money that the claimant alleges occurred as a result of conduct identified in Section 20-85 of the Act by any licensees or the unlicensed employee of a licensee.  When no itemized statement is possible, the claimant must state under oath that the claimant's losses are estimated, and the calculation of estimated losses is as accurate as circumstances permit.

 

e)         Party Defendant

No notice of claim will be recognized or accepted when the underlying complaint and post-judgment order does not name at least one natural person or entity (a licensee, its employees or independent contractors) as a defendant and judgment debtor.

 

f)         Amounts of Recovery and Attorney's Fees

By a post-judgement order of the circuit court of the county where the violation occurred in a proceeding described in Section 20-90 of the Act, the aggrieved person may recover an amount of not more than $50,000 from the Recovery Fund for damages sustained by any act, representation, transaction, or conduct described in Section 20-85 of the Act, together with costs of suit and attorney's fees in connection with the conduct leading to the claim.

 

1)         The post-judgement order shall not include interest.

 

2)         The maximum liability of damages arising out of the activities of any one licensee or one unlicensed employee of a licensee in any transaction or set of facts that formed the basis of a post-judgement order (including costs of suit and attorney's fees, when an attorney's affidavit as to their fees is sufficient proof) is $300,000.

 

3)         The amount of any claim paid from the Fund will be spread equitably among all co-owners or otherwise aggrieved persons, if any.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.950  Automatic Revocation Upon Order for Payment from the Real Estate Recovery Fund (Repealed)

 

(Source:  Repealed at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.955  Nonbinding Advisory Opinions (Repealed)

 

(Source:  Repealed at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.960  Citations for Non-Compliance with Continuing Education and Post-License Education Requirements

 

The Division shall conduct audits to verify compliance with the CE and post-license education requirements of the Act and this Part.  If, during an audit or compliance review, the Division determines that a licensee may be deficient in complying with CE or post-license education requirements, the Division will issue a citation to the licensee of the deficiency.  Service of the citation shall be made in person, electronically or by mail to the licensee at the licensee's address or email address of record.  The licensee shall have 60 days after the date of service of the citation to submit evidence of compliance with CE requirements to the Division and to pay the fine imposed.

 

a)         The citation shall inform the licensee that they may provide the Division with proof that the licensee has completed the required CE or post-license education prior to the renewal deadline or deadlines associated with the audit.  If satisfactory proof is provided within 60 days after the citation is served, the citation shall become null and void.

 

b)         The citation shall set forth the fine imposed and inform the licensee that the licensee may request a hearing contesting the deficiency within 30 days after the citation is served.

 

c)         The citation shall be non-public and become a final non-disciplinary order if the cited licensee does not request a hearing within 30 days after the citation is served or if the cited licensee does not provide the Division with proof of completing the required CE or post-license education, prior to the renewal deadline or deadlines associated with the audit.  The fine shall be payable within 30 days after the date of the final order.

 

d)         A fine in the amount of $500 shall be assessed for a first citation for noncompliance with CE or post-license education requirements.  A fine in the amount of $1,000 shall be assessed for a second citation for noncompliance with CE or post-license education requirements.  Pursuant to Section 20-20.1(c) of the Act, a third and each subsequent citation for noncompliance with CE or post-license education requirements shall result in publicly disclosed discipline and a fine in an amount not to exceed $2,000.

 

e)         Payment of the fine does not absolve the person from the responsibility to complete the CE or post-license education requirements and correct the violation.

 

f)         If the licensee fails to submit satisfactory evidence of compliance with CE or post-license education requirements and to pay the fine imposed pursuant to the final order, the Department may take further disciplinary action pursuant to the Act and this Part for violating the terms of the order.  The licensee shall not engage in real estate activities for which a license is required under the Act until all required CE has been completed and payment is made for the fine imposed by the citation and for any fees required to reinstate or restore the license.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1000  Granting Variances

 

The Director may grant variances from this Part in cases in which the Director finds that:

 

a)         The provision from which the variance is granted is not statutorily mandated;

 

b)         No party will be injured by the granting of the variance; and

 

c)         Application of the rule from which the variance is granted would, in the particular case, be unreasonable or unnecessarily burdensome.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1100  Application for Education Provider License and Other Requirements

 

a)         A person or entity seeking to provide pre-license education, the 45-hour post-license education, or CE shall submit:

 

1)         A signed and completed education provider's application in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130;

 

3)         A course description, learning objectives, comprehensive timed outline and, when applicable, the final examination, answer key for each course, and final exam proctor policy; and any other information required by the Division.  Education providers shall be responsible for any substantial misrepresentations made by the provider concerning the subject matter of a course;

 

4)         Applications and fees for each course, as set forth in Sections 1450.1105(a) and 1450.1135(a); and

 

5)         Authorization to conduct or transact business in Illinois issued by the SOS.

 

b)         The Division shall notify the applicant in writing of its decision.  In the event the Department intends to deny the application, then it shall include a clear statement of the acts or omissions alleged to violate the Act or this Part.  The notice shall notify the applicant that they must request a hearing to contest the notice within 30 days after service and that if a request is not filed within that time, the Director may issue an order denying the license application (see Section 20-60 of the Act and Article 10 of the Illinois Administrative Procedure Act [5 ILCS 100]).

 

c)         The education program offered by an education provider shall:

 

1)         Be approved by the education provider's governing and/or supervising body;

 

2)         Only use instructors with a valid Illinois instructor license issued under the Act and Sections 1450.1115 and 1450.1145;

 

3)         Have a curriculum that meets the requirements of Section 1450.1105 and/or Section 1450.1135; and

 

4)         Include a proctored final examination, if a proctored examination is required, as outlined in Sections 1450.1105 and 1450.1135.  Any remote proctoring must be conducted in accordance with the requirements of state and federal law.

 

d)         Records and Facilities

 

1)         Education providers must maintain all records, including, but not limited to, transcripts, attendance records, and certificates of completion, for a period of not less than 5 years regardless of whether the education provider's license is active.  Those records may be maintained in physical or electronic form.

 

2)         Education providers must provide customer service email or telephone contact information.

 

3)         Education providers and their records are subject to inspection at any time after submitting an application to the Division. The inspection shall be made during regular business hours, with at least 24 hours advance notice of the inspection.

 

4)         No education provider shall conduct in-person business in a private residence or retail establishment unless the education provider's business location within the retail establishment is a separate and distinct space solely occupied by the education provider.

 

5)         Whenever an education provider intends to operate at a location other than the location of record, the education provider shall, no later than 10 days prior to that operation, notify the Division in a format provided by the Division.

 

6)         Education providers may establish and operate virtual offices that do not have a fixed location.  If the licensee conducts education provider services in or from the virtual office, the virtual office shall:

 

A)        Display a current registry of all licensed instructors, courses, and their corresponding license numbers;

 

B)        Display contact information for the education provider's owner or operator, including name, license number, valid phone number and email address;

 

C)        Maintain a secure intranet or secure portal that is accessible by employees, instructors, students, and, upon request, the Division.  The intranet portal shall include:

 

i)          Electronic records, securely stored in the format they were originally created, sent, or received, and made accessible for inspection by the Division in a secure electronic format.

 

ii)         Documents originally created in physical form may be converted to an electronic format only if the content is not altered.

 

D)        Service of Process. For those education providers who maintain a virtual office, a valid physical address in Illinois must be provided to the Department for service of process.  If an education provider does not maintain a physical address in Illinois, they may utilize the same address provided to the SOS for its registered agent in Illinois.

 

7)         If an education provider and brokerage are under the same ownership structure or are affiliated entities, each shall be separately licensed with the Division.  The education provider and brokerage's business operations must function independently and be distinct from one another.

 

e)         Administration

 

1)         No education provider shall advertise that it is endorsed, recommended or accredited by the Division.  The education provider may indicate that the school is licensed by the Division.

 

2)         Every education provider shall submit to the Division, upon the Division's request, a schedule including location, date, time and name of each licensed pre-license or CE instructor for each licensed pre-license, post-license or CE course offered. The education provider shall, upon the Division's request, notify the Division of any changes to that schedule.

 

3)         Every education provider shall specify, in any advertising promoting pre-license, post-license or CE courses, the number of pre-license, post-license or CE credit hours that may be earned toward Illinois pre-license, post-license or CE requirements.

 

4)         Prior to enrollment, the education provider shall provide a prospective student with information that specifies:

 

A)        The course of study to be offered and the delivery method;

 

B)        The tuition to be charged;

 

C)        The education provider's policy regarding refund of unearned tuition when a student is dismissed or withdraws voluntarily or through hardship;

 

D)        Any additional fee to be charged for supplies, materials or books that become the property of the student upon payment; and

 

E)        Other matters that are material to the relationship between the education provider and the student.

 

5)         Each education provider shall maintain for each student a record including the course of instruction undertaken, dates of attendance, areas of study satisfactorily completed, and, if applicable, the date on which the final exam was successfully passed.  Each student's record shall be maintained by the education provider, regardless of whether the education provider's license is currently active, for a period of 5 years and shall be available to the student or for inspection by the Division during regular business hours.

 

6)         An education provider shall issue a transcript or certificate of completion, in a format provided by the Division, upon a student's successful completion of any course.  Each transcript or certificate of completion shall be authenticated and capable of being verified by the education provider.

 

7)         The education provider shall certify on the initial application that sufficient financial resources are available to equip and maintain the school.

 

8)         The education provider shall verify attendance at each pre-license course, post-license course, and CE course.  A student may only receive credit for time actually spent attending the course or, if applicable, for achieving a passing score of at least 75% on the final examination to receive credit.

 

9)         Each education provider shall provide time and facilities for conducting make-up classes for students absent from the regularly scheduled class.  No more than 10% of the total credit hours may include make-up credit hours.  A student missing any make-up credit hours shall fail the course.

 

10)         The Division shall be reimbursed by any out-of-state education provider for all reasonable expenses incurred by an inspector to inspect its facilities or records.

 

11)         An education provider shall submit proof of ownership as may, from time to time, be required by the Division.

 

12)         Course Completion Records.  Every licensed education provider shall submit to the Division, in a format provided by the Division, on or before the 15^th of each month, a report of applicants or licensees passing education courses offered by the education provider during the preceding calendar month.

 

A)        An administrative fee in the amount of $50 will be imposed on an education provider that fails to submit its monthly report on or before the 15^th of the month.

 

B)        If an education provider fails to submit monthly reports and/or to pay the required late fees for three or more successive months, the license of the education provider and the courses offered by that education provider may be subject to discipline as set forth in Section 1450.1165.

 

f)         Education providers offering a 30-hour real estate auction certification course must comply with Section 1450.1300.

 

g)         Each university, college, community college, or school that is a public institution of higher education, supported by public funds, and located in the State of Illinois shall be deemed to qualify as an education provider, as long as that university, college, community college, or school meets the following criteria and certifies to the Division that:

 

1)         The facility is domiciled in the State of Illinois and supported by public funds;

 

2)         The instructors are approved and licensed by the Division;

 

3)         The courses offered are approved and licensed by the Division;

 

4)         The program that offers pre-license or continuing education is a not-for-profit division of the university, college, community college, or school; and

 

5)         The courses and curriculum meet the requirements of Section 1450.1105.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1105  Application for Pre-License and Post-License Courses

 

a)         A licensed education provider seeking to provide pre-license courses shall submit for each course:

 

1)         A signed and completed pre-license course application in a format provided by the Division;

 

2)         The fee required by Section 1450.130; and

 

3)         A course description, comprehensive timed outline, and, when applicable, final examination, answer key for each course, final exam proctor policy, and any other information required by the Division.  Each outline shall make reference to the textbook used and other material related to the course or subject matter and shall conform to the standardized curriculum provided by the Division.  The applicant shall make any education material referenced in the outline available to the Division, upon request.

 

b)         An education provider offering pre-license courses must provide the following pre-license broker courses as recommended by the Board and approved by the Division:

 

1)         A 60 credit hour course including, but not limited to, the following topics: Introduction to License Law, Real Property, Current State and Federal Law, Real Estate Transactions, and Real Estate Career Paths.

 

2)         A 15 credit hour Applied Real Estate Principles course, presented in the classroom, by interactive webinar, or by online distance education.

 

c)         An education provider offering pre-license courses must provide the following 45-hour post-license broker courses:

 

1)         A 15 credit hour course on Applied Brokerage Principles, recommended by the Board and approved by the Division, and presented in the classroom, by interactive webinar, or by online distance education.

 

2)         A 15 credit hour course on Risk Management/Discipline, recommended by the Board and approved by the Division, and presented in the classroom, by interactive webinar, or by online distance education.

 

3)         A 15 credit hour course on Transactional Issues, recommended by the Board and approved by the Division, and presented in the classroom, by interactive webinar, or by online distance education.

 

4)         Each 15 credit hour post-license course must be followed by a 50 question examination administered by the education provider, for which the minimum passing score shall be no less than 75%.  Education providers offering classroom-based courses may administer the exam online or in an electronic format.

 

d)         An education provider offering pre-license courses must provide the following pre-license managing broker courses, recommended by the Board, and approved by the Division:

 

1)         A 30 credit hour course including, but not limited to, Brokerage Administration and Management, Licensing, Escrow and Residential Leasing Agent Management.

 

2)         A 15 credit hour Applied Management and Supervision course, presented in the classroom, by interactive webinar, or by online distance education.

 

e)         Only those education providers that provide courses enumerated in subsections (b), (c) and (d) may provide CE core classes or the 30-hour pre-license endorsement courses.

 

f)         A licensed real estate education provider may provide a 15 credit hour course as set forth in Section 5-10(a)(5) of the Act for pre-license residential leasing agents.

 

g)         A licensed real estate education provider may provide a 30 credit hour real estate auction certification course as set forth in Section 5-32(b) of the Act for real estate auctioneers.

 

h)        Examinations.  Each correspondence or home study pre-license course shall require a mandatory proctored final examination (see Section 30-15(i)(6) of the Act) prepared and provided by the licensed education provider and consisting of at least 25 questions for every 15 credit hours. Any remote proctoring must be conducted in accordance with the requirements of state and federal law.  The minimum passing score shall be no less than 75%. The proctored final examination shall be provided by the education provider at the completion of every 15 credit hours or the conclusion of the course. The education provider's registration material shall inform the student in writing whether the proctored final examination will be administered in electronic format, paper format, or both.  Credit hours exclude any time devoted to taking the proctored final examination.

 

i)          A licensed education provider must verify attendance for courses presented in a classroom, by interactive webinar, or by online distance education.

 

j)          The Division may approve courses that incorporate additional real estate topics.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1110  Application for Education Provider and Course License Renewal 

 

a)         Education provider and course licenses shall expire on June 30 of each odd-numbered year.

 

b)         Licensed education providers shall be responsible for submitting:

 

1)         A renewal application in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130; and

 

3)         A list of updated courses, course descriptions, comprehensive timed outlines, proctored final examinations, answer keys, and any other information required by the Division.

 

c)         Failure to receive a renewal notice or failure to pay the renewal fee shall not constitute valid grounds for failing to renew a license.

 

d)         Operating on an expired education provider license shall constitute unlicensed practice and may be grounds for discipline.

 

e)         An education provider license expired for more than 2 years shall not be eligible for renewal.  An education provider license expired for less than 2 years may be renewed after the education provider submits evidence that all requirements of Section 1450.1100 have been met and the fees required by Section 1450.130 have been paid.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1115  Application for Pre-License Instructor License

 

a)         A person seeking a pre-license instructor license shall meet the following requirements:

 

1)         Pass an examination, authorized by the Division, with a minimum score of 75%;

 

2)         Demonstrate expertise by:

 

A)        Holding an active broker or managing broker license for the immediately preceding 2 years;

 

B)        Being admitted to the practice of law by the Supreme Court of Illinois;

 

C)        Having prior teaching experience for a minimum period of 2 years; or

 

D)        Professional background and experience.

 

3)         Complete a 12-hour instructor training program approved by the Division and comprised of:

 

A)        6 hours devoted to instructor training and development; and

 

B)        6 hours devoted to teaching the content of the pre-license courses set forth in Section 1450.1105.

 

b)         The Division shall notify the applicant in writing of its decision.  The Division may restrict a pre-license instructor's license to teaching only certain courses or certain types of courses.  In the event the application is denied, the basis for denial will be provided and the applicant advised that the applicant may request a hearing on the merits, as set forth in Section 20-60 of the Act and Article 10 of the Illinois Administrative Procedure Act.

 

c)         A licensed pre-license instructor may teach pre-license, post-license, CE core or elective curriculum, or broker management CE curriculum without obtaining a CE instructor license.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1120  Administration of Proficiency Examinations and Eligibility to Take the Proficiency Exam and Transition Courses (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.1125  Pre-License Instructor License Renewal and Restoration

 

a)         Pre-license instructor licenses shall expire on June 30 of each odd-numbered year.

 

b)         Licensed pre-license instructors shall be responsible for submitting:

 

1)         A renewal application in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130; and

 

3)         Certification of:

 

A)        Maintaining a valid pre-license instructor's license;

 

B)        No lapse in licensure greater than 2 years; and

 

C)        One of the following:

 

i)          Teaching at least one pre-license, post-license, broker management CE or core CE course during the current term of licensure; or

 

ii)         Successful completion, during the current term of licensure, of the 12-hour instructor training program set forth in Section 1450.1115(a)(3).  The 12-hour instructor training program shall not count towards the required residential leasing agent, broker or managing broker CE requirements.

 

c)         Failure to receive a renewal notice or failure to pay the renewal fee shall not constitute valid grounds for failing to renew a license.

 

d)         Teaching courses on an expired pre-license instructor license shall constitute unlicensed practice and may be grounds for discipline.

 

e)         Restoration

 

1)         A pre-license instructor with an expired license may renew the license without paying any lapsed renewal fees provided that the license expired while the pre-license instructor was:

 

A)        On active duty with the United States Army, United States Navy, United States Marine Corps, United States Air Force, United States Coast Guard or State Militia called into the service or training for the United States;

 

B)        Engaged in training or education under the supervision of the United States prior to induction into military service; or

 

C)        Serving as an employee of the Department.

 

2)         A pre-license instructor renewing a license as set forth in this subsection (e) may renew the license within a period of 2 years following the termination of service and is not required to reapply or complete any examination or instructor training to renew.

 

f)         Except as set forth in this Section, any pre-license instructor whose license has expired for more than 2 years shall meet the new applicant requirements as set forth in Section 1450.1115.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1130  Application for Continuing Education School License and Other Requirements (Repealed)

 

(Source:  Repealed at 43 Ill. Reg. 1975, effective January 25, 2019)

 

Section 1450.1135  Application for Continuing Education Courses and Curriculum

 

a)         A licensed education provider seeking to provide CE courses shall submit:

 

1)         A signed and completed CE course application in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130; and

 

3)         A course description, learning objectives, comprehensive timed outline, course objectives and, when required, the final examination and answer key for each course, as well as the exam proctor policy and written proctor agreement. Materials  provided to the students and other information may also be required by the Division.  Each outline shall make reference to the textbook used, if applicable, and other material related to the course or subject matter and shall conform to a standardized curriculum approved by the Division.

 

b)         CE courses shall comply with a standardized curriculum provided by the Division.

 

c)         A licensee may earn credit for a specific CE course only once during the current term of the license.

 

d)         Each CE course shall include one or more subjects from either the core category, as set forth in Sections 1450.450(b)(3)(A) and 1450.540(b)(3)(A), or elective category, as set forth in Sections 1450.450(b)(3)(B) and 1450.540(b)(3)(B), regardless of whether students are in a classroom or are being taught by an interactive webinar or in an online distance education format.  All CE courses shall be a minimum of 1 credit hour and shall be offered, at a minimum, in 1 hour increments.  The education provider shall clearly indicate on the certificate of completion the number of credit hours earned from each CE course and identify whether the course was from the core or elective category.

 

e)         All CE courses shall:

 

1)         Contribute to the advancement, integrity, extension and enhancement of professional skills and knowledge in the practice of licensed activities; and

 

2)         Provide experiences that contain subject matter and course materials relevant to that set forth in Section 5-70 of the Act.

 

f)         Each CE course, except those offered in a classroom, by interactive webinar, or by online distance education, shall end in a mandatory proctored final exam prepared and provided by the licensed education provider consisting of at least 12 questions for every 1 credit hour and for which the minimum passing score shall be no less than 75%.  The education provider's registration material shall inform the student in writing if the examination will be in electronic format,  paper format, or both.  Credit hours exclude any time devoted to taking the examination.

 

1)         Pursuant to Section 5-70(j) of the Act, no more than 12 hours of CE credit may be taken in one calendar day.  The proctored final exam for a CE course or courses may be given at the end of each individual course or group of courses.  For example, a licensee who intends to take 12 hours of CE may complete the proctored final exam and earn CE credit for the courses at the end of each individual course or group of courses, provided that the licensee does not exceed the 12-hour limit of instruction per calendar day referenced in Section 5-70(j) of the Act.

 

2)         All examinations shall be proctored pursuant to an exam proctor policy.  Proctors must be impartial third parties (i.e., not a licensee's sponsoring broker, managing broker, relative, or colleague) as defined in Section 1450.100.  Any remote proctoring must be conducted in accordance with the requirements of State and federal law.

 

3)         If a student fails a CE examination twice, the student must successfully retake the CE course and pass the examination in order to receive credit.

 

4)         The education provider shall provide a closed book examination when required.

 

g)         A licensed education provider must verify student attendance for all courses presented in a classroom, by interactive webinar, or by online distance education.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1137  Authorization for Third Party Designees to Review Courses

 

a)         Pursuant to Section 30-15(j) of the Act, the Department may retain a third party to act as the Board's designee to review course materials submitted for approval.

 

b)         The Department may consider the recommendation of the Board on the engagement of the third party.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1140  Application for Continuing Education School and Course License Renewal (Repealed)

 

(Source:  Repealed at 43 Ill. Reg. 1975, effective January 25, 2019)

 

Section 1450.1145  Application for Continuing Education Instructor License

 

a)         A person seeking a CE instructor license shall submit:

 

1)         A signed and completed application in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130; and

 

3)         A certification that the applicant has attended and successfully completed a 6-hour instructor development course.  This course may be the same as the 6-hour instructor training and development course set forth in Section 1450.1115(a)(3)(A).  The 6-hour instructor training and development course shall not count towards residential leasing agent, broker, managing broker CE or pre-license instructor renewal requirements.

 

b)         Applicants for a CE instructor license shall meet at least one of the following criteria:

 

1)         Be licensed and active as a broker or managing broker for the immediately preceding 3 years;

 

2)         Be currently admitted to practice law and, for the immediately preceding 3 years, have been engaged in real estate related work as part of the active practice of law, or taught real estate pre-license courses;

 

3)         Be a credentialed real estate course instructor engaged in teaching for the immediately preceding 3 years;

 

4)         Hold a professional designation, including, but not limited to, a designated real estate instructor (DREI);

 

5)         Be approved by a college or university to teach a real estate degree program;

 

6)         Have been licensed or certified to engage in the business of certified real estate appraiser, certified mortgage loan originator, home inspector, auctioneer, or certified public accountant, or other related profession as established by the Division for the immediately preceding 3 years; or

 

7)         Be qualified by experience or education as set forth in Section 30-25 of the Act. In determining whether a person is qualified to teach CE under that Section, the Division may consider:

 

A)        Teaching experience;

 

B)        Real estate experience; and

 

C)        Any real estate, business, or legal education.

 

c)         The Division shall notify the applicant in writing of its decision.  The Division may restrict a CE instructor's license to teaching only certain CE courses or certain types of CE courses. In the event the application is denied, the reasons will be provided, and the applicant advised that the applicant may request a hearing on the merits pursuant to Section 20-60 of the Act and Article 10 of the Illinois Administrative Procedure Act.

 

d)         A CE instructor who holds a CE instructor license may only teach CE elective courses.  If the CE instructor wishes to teach any CE core curriculum or broker management CE courses, the instructor must also hold a valid pre-license instructor license.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1150  Continuing Education Instructor License Renewal and Restoration

 

a)         CE instructor licenses shall expire on June 30 of each odd-numbered year.

 

b)         Licensed CE instructors shall be responsible for submitting:

 

1)         A renewal application in a format provided by the Division;

 

2)         The required fee set forth in Section 1450.130; and

 

3)         One of the following:

 

A)        Certification of having taught at least 1 elective CE course during the current term of licensure; or

 

B)        Successful completion, during the current term of licensure, of the 6-hour instructor training and development course set forth in Section 1450.1145(a).

 

c)         Failure to receive a renewal notice or failure to pay the renewal fee shall not constitute  valid grounds for failing to renew a license.

 

d)         Teaching CE elective courses on an expired license shall constitute unlicensed practice and may be grounds for discipline or non-disciplinary action.

 

e)         Restoration

 

1)         A CE instructor with an expired license may renew the license without paying any lapsed renewal fees provided that the CE license expired while the instructor was:

 

A)        On active duty with the United States Army, United States Navy, United States Marine Corps, United States Air Force, United States Coast Guard or State Militia called into the service or training for the United States;

 

B)        Engaged in training or education under the supervision of the United States prior to induction into military service; or

 

C)        Serving as the Director or as an employee of the Department.

 

2)         A CE instructor renewing a license as set forth in this subsection (e) may renew the license within a period of 2 years following the termination of service and is not required to reapply or complete any examination or instructor training to renew.

 

f)         Except as set forth in this Section, any CE instructor whose license is expired for more than 2 years shall meet the new applicant requirements set forth in Section 1450.1145.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1155  Correspondence or Home Study Courses  

 

The Division may consider the recommendation of the Board regarding correspondence or home study course curriculum.  Correspondence or home study courses are non-interactive courses in which students review and learn material through self-study, without any mandatory interaction with a licensed instructor, and in which participation and attendance cannot be verified.  Correspondence or home study courses shall not include classroom instruction.

 

a)         The following may not be taught as correspondence or home study courses:

 

1)         Core CE (see Section 30-15(i)(2) of the Act);

 

2)         The 15-hour Broker Pre-license Applied Real Estate Principles course (see Section 5-27(a)(5) of the Act and Section 1450.1105(b)(2));

 

3)         The 45-hour broker post-license education courses (see Section 5-50(b) of the Act);

 

4)         The 12-hour broker management CE course (see Section 5-70(b) of the Act);

 

5)         The 15-hour Managing Broker Pre-license Applied Management and Supervision course (see Section 5-28(a)(5) of the Act and Section 1450.1105(d)(2)); and

 

6)         Sexual Harassment Prevention Training (see Section 2105-15.5 of the Department of Professional Regulation Law [20 ILCS 2105]).

 

b)         Correspondence or home study courses shall be provided by a licensed education provider and meet the requirements set forth in Sections 1450.1100 and 1450.1105, as applicable, and any additional requirements established by the Act and this Part, except that:

 

1)         The licensed education provider shall be responsible for ensuring that the proctor verifies attendance at the proctored final examination.  The identity of each student must be verified by valid and unexpired photo identification (i.e., driver's license, state identification card, passport, etc.) prior to the start of the examination.

 

2)         The examination site for correspondence or home study shall be determined by the education provider and shall be proctored by a representative of the education provider or by means of electronic proctoring. A licensed instructor is not required to proctor an examination. Proctors must be impartial third parties (i.e., not a licensee's sponsoring broker, managing broker, relative, or colleague).

 

c)         Students must be provided with complete information on the nature and the content of the correspondence or home study course. A student enrolled in a correspondence or home study course shall receive the following prior to beginning the course, as applicable:

 

1)         Education provider and instructor contact information (e.g., telephone, email, business address);

 

2)         Homework assignments;

 

3)         Testing information (e.g., sites, proctors);

 

4)         Schedules and deadlines;

 

5)         List of student materials and resources required (e.g., written materials, software);

 

6)         Grading and course credit information;

 

7)         Resource information;

 

8)         Registration and withdrawal periods;

 

9)         Fees;

 

10)         Americans with Disabilities Act (42 USC 12101 et seq.) information, including special needs provisions;

 

11)         Delivery procedures;

 

12)         Technology support services available to students; and

 

13)         The procedure for issuing certificates of completion.

 

d)         No continuing education credit shall be awarded or earned for a correspondence or home study course that fails to meet the proctored final examination requirements (see Section 30-15(i)(6)). 

 

e)         Licensed education providers providing correspondence or home study courses shall establish written procedures for proctoring and grading examinations. There shall also be written objectives for each course and written procedures for the prompt return of materials, if required.  Copies of these procedures shall be provided to the Division upon application.

 

f)         Licensed education providers offering correspondence or home study courses shall provide for a licensed instructor and technical support to be available during normal business hours to answer student questions.

 

g)         Correspondence or home study courses shall require at least the same amount of time to complete as a classroom course.  For each correspondence or home study course, an education provider shall include in its initial application a comprehensive timed outline consistent with course hour requirements.

 

h)         Licensed education providers shall not administer a correspondence or home study course proctored final examination to a student until the student has had adequate time to complete the course.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1160  Recruitment

 

a)         Licensees shall not recruit exam takers to become associated with a licensee at test facilities where the Illinois Real Estate Licensing Examinations are conducted.

 

b)         No licensed education providers shall allow the education provider's premises or classrooms to be used during class time by anyone to directly or indirectly recruit students to become associated with a licensee.  Education providers and instructors shall promptly report any efforts to recruit students during class time to the Division.

 

c)         The education provider and the testing vendor are prohibited from disclosing information about any student to anyone other than the Division, except as may be necessary for purposes of completing application or testing related and ministerial matters strictly for the benefit of the student.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1165  Discipline of Education Providers, Instructors and Courses

 

a)         Upon written recommendation of the Board to the Director, the Department may refuse to issue or renew a license, reprimand, fine, place on probation, suspend or revoke any license or otherwise discipline any license of any education provider, pre-license instructor, pre-license course, CE instructor, CE course, post-license course, or an applicant for any license when:

 

1)         The quality of the course, instruction or program fails to meet the established criteria as set forth in the Act and this Part;

 

2)         The licensee commits fraud or misrepresentation in applying for a license;

 

3)         Any other professional license, accreditation or certification of the instructor, school or course is suspended, revoked, or otherwise disciplined;

 

4)         The licensee dismisses a student from a course, without good cause, and that dismissal results in required hours not being met;

 

5)         The licensee fails to adhere to approved course materials;

 

6)         The licensee conducts a course while the license is inactive, nonrenewed, expired, suspended, revoked, or surrendered, or an applicant conducts a course prior to being issued a license;

 

7)         A licensee plagiarizes course material of another;

 

8)         A course is not conducted in accordance with the delivery method represented to the Division at the time the application for licensure was submitted, or a course no longer complies with the criteria for the licensure;

 

9)         The licensee does not enforce policies relating to courses, instructor qualifications, student attendance, or course scheduling;

 

10)         The licensee or applicant misrepresents any material fact relating to a course;

 

11)         The licensee fails to maintain, for a period of at least 5 years, accurate records of students' course completion or fulfill, within 14 days, student, or Division requests for course completion certificates;

 

12)         The licensee assists a student, directly or indirectly, in cheating on an examination, including, but not limited to, providing a copy of the exam or questions and answers to the exam;

 

13)         The licensee or applicant makes any substantial misrepresentation, or engages in misleading or untruthful advertising, including, but not limited to, guaranteeing success or a "passing score" on any examination or any course, or using any trade name or indicia of membership in any organization in which the applicant or licensee is not a member;

 

14)         The licensee or applicant teaches courses without being licensed, assists an unlicensed individual in teaching a course, or teaches an unlicensed or unapproved course;

 

15)         The licensee or applicant fails to provide information to the Division as required under any provision of the Act or this Part;

 

16)         The licensee or applicant disregards or violates any provision of the Act or this Part; or

 

17)         A licensed pre-license or CE instructor fails to notify an education provider that the instructor license is subject to a restriction set forth in Sections 1450.1115(b) and 1450.1145(d).

 

18)         The licensed instructor provides materially false or misleading information concerning the subject of the course.

 

b)         Disciplinary proceedings shall be conducted as set forth in the Act and this Part.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1170  Real Estate Education Advisory Council (Repealed)

 

(Source:  Repealed at 43 Ill. Reg. 1975, effective January 25, 2019)

 

Section 1450.1175  Waiver of Final Examination Requirements for Certain Education Delivery Methods

 

a)         The option of not requiring a final examination (see Section 30-15(i)(5) of the Act) shall apply to CE and pre-license courses.  This option shall not apply to the 45-hour broker post-license education (see Section 5-50(b) of the Act).

 

b)         To qualify for the final examination exemption under Section 30-15(i)(5) of the Act, an education provider shall provide evidence, at the Division's request, that all students in a course offered in a classroom participate by:

 

1)         Recording each student's attendance at the beginning of the class and at the end of each class; and

 

2)         Retaining a record, either physically or electronically, of each student's participation, for a minimum of 5 years.  Records required by this subsection (b) are subject to audit by the Division after 24 hours' notice.

 

c)         To qualify for the final examination exemption under Section 30-15(i)(5) of the Act, an education provider shall, at the Division's request, provide evidence that all students in an interactive webinar course demonstrate their participation by recording each student's attendance once at the beginning of the class and at least once per 50 minutes of instruction (see Section 30-15(i)(3) of the Act).  Students shall demonstrate their attendance by answering or responding to polling questions initiated by the instructor.

 

d)         To qualify for the final examination exemption under Section 30-15(i)(5) of the Act, an education provider shall, at the Division's request, provide evidence that all students in an online distance education course demonstrated their participation and comprehension by:

 

1)         Requiring and recording each student's responses and answers and verifying that the student satisfied the 75% minimum comprehension threshold. No more than 250 questions shall be required in any one course;

 

2)         Retaining each student's responses and answers, either physically or electronically, for a minimum of 5 years.  The records are subject to audit by the Division after 24 hours' notice;

 

3)         Providing that, should a student fail to meet the 75% minimum comprehension requirement, the student will be given another opportunity to demonstrate comprehension within the same course, provided that the questions, response choices, and answers are randomized and not in the same order as first presented to the student; and

 

4)         Verifying a student's identity at the beginning and conclusion of the course and maintaining that verification with date and time stamp, either physically or electronically, for 5 years.  The records are subject to audit by the Division after 24 hours' notice.

 

e)         Education providers, upon request of the Division, shall provide records of student attendance and/or performance.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1180   Proctor Standards

 

The proctor shall authenticate the identity of the student taking the examination; monitor the student and the examination-taking process to ensure that the examination is completed without the aid of additional persons or resources, unless approved by the Division; and protect the confidentiality of educational materials. Proctors must be impartial third parties and may not be an applicant's or licensee's sponsoring broker, managing broker, relative, or colleague.

 

(Source:  Amended at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1200  Continuing Education Requirements for Transitioned Licensees (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 12588, effective September 2, 2016)

 

Section 1450.1205  Continuing Education Schools and Courses (Repealed)

 

(Source:  Repealed at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1210  Credit for Continuing Education Courses (Repealed)

 

(Source:  Repealed at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1215  Pre-license Schools and Courses (Repealed)

 

(Source:  Repealed at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1220  Education Provider, Course and Instructor Transition (Repealed)

 

(Source:  Repealed at 45 Ill. Reg. 2851, effective February 23, 2021)

 

Section 1450.1225  Core Continuing Education Course Transition

 

a)         The Division will accept applications for the broker 6-hour core continuing education courses and the 12-hour managing broker continuing education course that comply with the new requirements and curriculum established in this Part.

 

b)         Effective July 1, 2025, all broker and managing broker continuing education courses that do not comply with the new requirements and curriculum approved by the Division will not be accepted and are ineligible for renewal.

 

c)         Applicants for managing broker licenses that were up for renewal on April 30, 2025, are not required to fulfill their 24-hour continuing education hours with courses that include the updated requirements and curriculum.  However, applicants for managing broker licenses that are up for renewal in the subsequent renewal terms will be required to only take courses that include the updated core hours and curriculum.

 

d)         Applicants for broker licenses that are up for renewal on April 30, 2026, are required to fulfill their 12-hour continuing education hours with courses that include the updated 6-hour core curriculum. However, if applicants for broker licenses take and complete the previous 4-hour core curriculum between May 1, 2024, and June 30, 2025, they have fulfilled their core continuing education requirements and will need 8 hours of elective continuing education for the 2026 broker renewal.

 

(Source:  Added at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1300  Real Estate Auction Pre-Certification Education

 

a)         The 30-hour real estate certification course set forth in Section 5-32 of the Act shall include the following:

 

1)         18 hours relating to real estate including the following topics:

 

A)        Illinois and federal statutes and rules governing real estate;

 

B)        Agency;

 

C)        Real estate advertising; and

 

D)        Any other subject matter recommended by the Division.

 

2)         12 hours relating to auctions including the following topics:

 

A)        Illinois and federal statutes and rules governing auctions;

 

B)        Auction advertising; and

 

C)        Any other subject matter recommended by the Division.

 

b)         The 30-hour real estate auction certification course may be completed in a classroom, by interactive webinar, or by an online distance education course.

 

c)         The Board shall approve the 30-hour real estate auction course required by Section 25-110 of the Auction License Act [225 ILCS 407/25-110]. 

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1310  Application for Real Estate Auction Certification

 

To obtain a real estate auction certification, an applicant must:

 

a)         Submit a signed and completed real estate auction certification application in a format provided by the Division;

 

b)         Hold a valid auctioneer license under the Auction License Act [225 ILCS 407];

 

c)         Pay the fee required by Section 1450.130(d)(1); and

 

d)         Complete a 30-hour real estate auction certification course set forth in Section 1450.130, including passing the mandatory proctored final course exam.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)

 

Section 1450.1320  Real Estate Auction Certification Activities

 

a)         A licensed auctioneer with a real estate auction certification, who is not otherwise exempt from holding a broker or managing broker license under Section 5-20(13) of the Act, performing activities related to the auction of real estate shall be limited to:

 

1)         Establishing the time of the real estate auction;

 

2)         Establishing the place of the real estate auction;

 

3)         Establishing the method of the real estate auction;

 

4)         Placing proper advertisements regarding the real estate auction as set forth in Sections 1450.715 and 1450.720; and

 

5)         Crying or calling the real estate auction.

 

b)         A licensed auctioneer exempt from holding a broker or managing broker license under Section 5-20(13) of the Act who is performing activities related to the auction of real estate shall be limited to:

 

1)         Establishing the time of the real estate auction;

 

2)         Establishing the place of the real estate auction;

 

3)         Establishing the method of the real estate auction;

 

4)         Placing proper advertisements regarding the real estate auction as set forth in Sections 1450.715 and 1450.720;

 

5)         Crying or calling the real estate auction; and

 

6)         Selling or leasing real estate at auction.

 

c)         As set forth in Section 5-32 of the Act, the Department may revoke, suspend, or otherwise discipline the real estate auction certification of a licensed auctioneer who violates Section 5-32 of the Act or Section 20-15 of the Auction License Act [225 ILCS 407].

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)