Who Needs to Be Licensed? (Section 1-10)
It is illegal for anyone to act as a broker, managing broker, sponsoring broker or leasing agent without a real estate license issued by the Department. Any broker who performs any of the following services, either directly or indirectly, whether in or through any media or technology, for another and for compensation must have a real estate license:
- Sells, exchanges, purchases, rents, or leases real estate
- Offers to sell, exchange, purchase, rent, or lease real estate
- Negotiates, offers, attempts, or agrees to negotiate the sale, exchange, purchase, rental, or leasing of real estate
- Lists, offers, attempts, or agrees to list real estate for sale, lease, or exchange
- Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or improvements thereon
- Supervises the collection, offer, attempt, or agreement to collect rent for the use of real estate
- Advertises or represents herself as being engaged in the business of buying, selling, exchanging, renting, or leasing real estate
- Assists or directs in the procuring or referring of leads or prospects intended to result in the sale, exchange, lease, or rental of real estate
- Assists or directs in the negotiation of any transaction intended to result in the sale, exchange, lease, or rental of real estate
- Opens real estate to the public for marketing purposes
- Sells, leases, or offers for sale or lease real estate at auction
License Requirement Exemptions (Section 5-20)
The requirement for holding a broker, managing broker, sponsoring broker or leasing agent license does not apply to the following:
- Owners or lessors (whether individuals or business entities) or their regular employees who sell, lease, or otherwise deal with their own property in the ways described under Article 1 definitions (This applies in the course of the management, the sale, or other disposition of their own [or their employer’s] property.)
- acting under duly executed and recorded power of attorney to convey real estate from the owner or lessor
- The services rendered by an attorney at law in the performance of her duties as an attorney at law
- Any person acting as receiver, trustee in bankruptcy, administrator, executor, or guardian, or while acting under a court order or under the authority of a will or a testamentary trust
- A resident apartment manager working for an owner or working for a broker managing the property, if the apartment is her primary residence and if she is engaged in leasing activities of the managed property
- State and federal officers and employees or state government or political subdivision representatives performing official duties
Should a sponsoring broker’s license be revoked or rendered inoperative, all licensees under that sponsoring broker will be considered inoperative until such time as the sponsoring broker’s license is reinstated or renewed or the licensee changes employment. Expiration dates and renewal periods for each license are set by rule, and licenses can be renewed within 90 days prior to expiration upon completion of CE and payment of the required fees.
Broker’s License (Article 5)
A broker is defined as any individual, partnership, limited liability company (LLC), corporation, or registered limited liability partnership other than a leasing agent who, for another and for compensation, whether in person or through any media or technology, or with the intention or expectation of receiving compensation, either directly or indirectly, performs any of the services for which a real estate license is required (Section 1-10).
Broker requirements Applicants for a broker’s license must meet the following requirements, as discussed in Section 5-27:
- Be at least 21 years of age and willing to supply a Social Security number. (The minimum age of 21 years will be waived for anyone seeking a broker’s license who has attained the age of 18 and has four semesters of college credit emphasizing real estate completed in a school approved by the Department)
- Be of good moral character
- Have graduated from high school or obtained the equivalent of a high school diploma verified under oath by the applicant
- Have completed a minimum of 15 of the previous required hours of pre-license education in brokerage administration
- Provide satisfactory evidence of having completed 90 hours of instruction, 15 hours of which must consist of situational and case studies presented in the classroom or by other interactive delivery method presenting instruction and real time discussion between the instructor and the students.
- Satisfactorily pass a state-sponsored written examination
