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A person needs a real estate license if they provide assistance which is in any way intended to result in the sale or lease of real estate. The definition of the word "broker" under the Real Estate License Act of 2000 provides 11 examples of the types of "assistance" that require a real estate -license. Included are: representing clients in the negotiation of real estate sales contracts or leases, and issuing advertisements for the sale, purchase or lease of real estate.
The assistance must be provided for others. Accordingly, a person who buys, sells or leases real estate as a "principal" does not need a real estate license.
Compensation is required. Therefore, a person who provides assistance on a real estate transaction to a friend or relative, without compensation, does not need a license.
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Yes. Exemptions from the license requirement are set
forth in Section 5-20 of the Real Estate License Act of 2000. In other
words, some individuals and entities who engage
in the “practice of real estate” in Illinois
do not need to obtain a real estate license
from DBRE.
Included in the exemptions are owners of real
estate and the employees of the owners of
real estate. See Section 5-20(1) of the Real Estate License Act of 2000.
Accordingly, owners of real estate and their
employees may advertise the sale or lease
of their property and negotiate real estate
contracts and leases without a license. Note
that for this exemption to apply, (i) the
“practice of real estate” must be limited
to those properties “owned,” (ii) the employment
relationship must be per a “W-2" wage basis,
not per an independent contract basis, and
(iii) the employer must hold title to the
real estate, not just have a financial interest
in the real estate (there must be a direct
connection between the unlicensed employee
and the holder of title).
Also included in the exemptions are (i) attorneys
acting under an executed and recorded power
of attorney and (ii) attorneys whose services
for a real estate consumer are limited to
the practice of law. See Section 5-20(2) of
the Real Estate License Act of 2000. Note that attorneys who engage in
the practice of real estate must obtain a
real estate license (attorneys are exempt
from the pre-license education but attorneys
still must pass the exam and obtain a real
estate license to practice real estate).
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DBRE issues three kind of real estate licenses
for individuals: leasing agent licenses, salesperson
licenses, and broker licenses.
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DBRE issues three kind of "business entity" licenses: real estate broker corporation licenses, partnership licenses, and limited liability company licenses. Note that the business must be properly registered with the Illinois Secretary of State office before an application for a license is filed with DBRE. The procedures for filing an application for a business entity licenses are found in Section 5-15 of the Real Estate License Act of 2000 and Rule 1450.85. The procedures for renewing a business entity licenses are found in Rule 1450.105(c).Ownership: Individuals with a real estate license may own a brokerage business. In this regard, licensed brokers may own an unlimited amount of a brokerage business. However, a salesperson or group of salespersons may own only up to 49% of a brokerage business. Also, unlicensed individuals or unlicensed entities may own an unlimited amount of a brokerage business, as long as all unlicensed owners file Affidavits of Non Participation.
Management: Any officer of a broker corporation, manager of a limited liability company, and general partner of a partnership, who are involved in any way in the brokerage activities of the business, must have a broker license.
Note - A broker may also operate a real estate business as a sole proprietor. A sole proprietor business does NOT require a sole proprietor license from DBRE. However, a sole proprietor broker must maintain an “office”and must comply with all other applicable provisions of the Real Estate License Act of 2000 and Rules for the Administration of the Real Estate License Act of 2000. Please see the question below in the General Practice Issues section regarding operating a real estate office.
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An individual who wants to obtain an Illinois real estate license must complete the required pre-license education (subject to the few exemptions below), pass a test, and file an application with the required fee.
Pre-license Education Requirements:
Leasing agent license = 15
hours of instruction in an approved course
of study relating to the leasing of residential
property.
Salesperson license = 45
hours of instruction in approved courses,
and a minimum of 15 of these hours must be
in the areas of Article 15 of the Real Estate
License Act of 2000 (agency), disclosure and
environmental issues, or any other current
topic as determined by the Education Advisory
Council.
Broker license for a person who does
not already have a salesperson license
= 120 hours of instruction in approved courses,
45 of which shall be those hours required
to obtain a salesperson license, plus at least
45 hours of mandatory courses as outlined
in Section 1450.60 of the Rules for the Administration
of the Real Estate License Act of 2000.
Broker license for a person who does
already have a salesperson license
= 75 hours of instruction in approved courses
(not including the 45 hours required to obtain
the salesperson license).
The persons who are exempt from pre-license education are persons who are Illinois licensed attorneys and persons who qualify based upon Reciprocity with another State - check the DBRE webpage for a list of reciprocal States. Information regarding Pre-license Education Schools and Testing locations may be found on the DBRE web site. Application forms are also available on the DBRE web site. The application must include the certification of a passing score on the exam, a properly issued sponsor card, and a check for the license. The current fees for each license are available on the DBRE web site.
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Yes. Salespersons and brokers must complete 12 hours of continuing education every 2 years.
Exemptions include: an individual who served in the armed services of the United States during the renewal period and a real estate licensee who is also an Illinois licensed attorney. See Section 5-70(b) of the Real Estate License Act of 2000.
If you received your initial license less than one year before the first renewal date for the license, please check Section 5-70(c) of the Real Estate License Act of 2000 to determine if you are exempt from completing the continuing education for the first renewal period.
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It is the responsibility of each licensee to properly renew their license. The licensee must accurately fill-out a renewal application and send the renewal application, together with the fee, to the Licensing Department in Springfield before the renewal date. If a renewal form is not received in the mail, it remains the responsibility of the licensee to file the renewal application.
Renewal Dates:
Salespersons must renew their license by April 30 of every odd numbered year (ex. April 30, 2005, April 30, 2007, etc).
Brokers must renew their license by April 30 of every even numbered year (ex. April 30, 2006, April 30, 2008, etc.)
Note - A person whose license has been expired for more than 2 years shall be required to meet the requirements for a new license, including completing all pre-license education and passing the exam. See Section 5-55(a) of the Real Estate License Act of 2000.
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Yes. The current list of states having Reciprocity with Illinois appears on the DBRE web site. Note that even those out-of-state licensees who qualify for reciprocity still must pass a test on Illinois specific real estate brokerage laws and obtain an Illinois license before practicing in Illinois. See Section 5-60 of the Real Estate License Act of 2000.
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In order to terminate sponsorship, the sponsoring broker should:
Sign the license of the sponsored licensee, indicate "terminated," and mark the date of the termination.
Submit a copy of the endorsed license to DBRE within 2 business days after termination by signature restricted mail delivery.
Retain a copy of the endorsed license at least until the next renewal date; and
Give the original endorsed license to the licensee.
In most cases, the managing broker of the office will be responsible for the endorsement required of the sponsoring broker. However, in the event the managing broker is unavailable, any broker authorized to sign on behalf of the sponsoring broker may provide the endorsement. Either the sponsoring broker or the sponsored licensee may demand the endorsement of the licensee. Failure of the sponsoring broker to endorse the license upon demand may subject the sponsoring broker (or managing broker) to discipline. The reason for this is DBRE has complete jurisdiction over each license. However, the endorsement should not preclude either the sponsoring broker or sponsored licensee from pursuing any right or obligation pursuant the terms of the written employment agreement, or pursuant to any other civil remedy. See Section 5-40(b) of the Real Estate License Act of 2000 and Rule 1450.75
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DBRE issues three kind of real estate licenses
for individuals: leasing agent licenses, salesperson
licenses, and broker licenses.
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