3.2 ADMINISTRATION OF THE ILLINOIS REAL ESTATE LICENSE ACT

There are four major funds administered through the Department:

• Real Estate License Administration Fund (to which license fees and other funds initially go),
• Real Estate Research and Education Fund (for research and scholarships),
• Real Estate Recovery Fund (a consumer-oriented fund for compensating consumers harmed by licensees’ actions),
• Real Estate Audit Fund (for conducting audits of special accounts).

Division of Professional Regulation
The Department, through the Division of Professional Regulation (DPR) has primary authority to administer the Illinois Real Estate License Act of 2000. It is also empowered to issue rules and regulations that implement and interpret the Act. The rules accompanying the Act are important to a full understanding of the Act’s implications and applications. The Department has the authority to contract with third parties for any services deemed necessary for proper administration of the Act, such as the Applied Measurement Professionals, Inc. (AMP) testing service for Illinois state testing.

Because of the many apps that are available, many brokers are at a virtual office through their mobile devices.

The Department is responsible for administrative activities such as these:

• Conducting license examinations
• Issuing and renewing licenses
• Preparing all forms, including applications, and licenses.
• Collecting fees from applicants and licensees

The Department has the following additional functions, which may be exercised only on the initiative and approval of the Real Estate Administration and Disciplinary Board:

• Conducting hearings that may result in the revocation or suspension of licenses or in the refusal to issue or renew licenses
• Imposing penalties for violations of the Act
• Restoring suspended or revoked licenses

Real Estate Coordinator (Section 25-15)
A licensed broker is appointed to the position of Real Estate Coordinator by the Secretary of the IDFPR after the recommendations of real estate professionals and organizations are considered. This individual’s license is surrendered to the Department during the appointment.

The Real Estate Coordinator’s duties include:

• acting as ex officio Chairperson of the Real Estate Administration and Disciplinary Board (without a vote),
• being the direct liaison between the Department, the real estate profession, and real estate organizations and associations,
• preparing and circulating educational and informational material for licensees,
• appointing any committees necessary to assist the Department in carrying out its duties,
• supervising real estate activities, and
• serving as ex officio Chairman of the Advisory Council without a vote.

Real Estate Administration and Disciplinary Board (Section 25-10)
The Real Estate Administration and Disciplinary Board (Board) acts in an advisory capacity to the Real Estate Coordinator regarding matters involving standards of professional conduct, discipline, and examination. In addition to its advisory functions, the Board conducts hearings on disciplinary actions against persons accused of violating the Act or the rules.

The Board recommends discipline for violations of the Real Estate Licensing Act of 2000 advises the Director on professional conduct, education requirements, and industry trends.

Composition of the Board
The Board is composed of 15 members appointed by the governor, all of whom must have been residents and citizens of Illinois for at least six years before their appointment date.

• Twelve members shall have been actively engaged as managing brokers or brokers for at least 10 years prior to the appointment, of which 2 must possess an active pre-licensing instructor license.
• Three members of the Board shall be public members who represents the consumers’ interest.
• None of these members shall be:
  • A person who is licensed under this Act or similar Act under another jurisdiction.
  • The spouse or family member of a licensee.
  • A person who has an ownership interest in a real estate brokerage business.
  • A person the Department determines to have any other connection with a real estate Brokerage business or license.
• Chair by statute is the Real Estate Coordinator, of IDFPR – (non-voting member)

The Real Estate Research and Education Fund (Section 25-25)
According to Section 25-25 of the act, The Real Estate Research and Education Fund is administered by the Department and held in trust by the Illinois Treasury. On September 15 of each year, the treasurer transfers $125,000 from the Real Estate License Administration Fund to the Real Estate Research and Education Fund, primarily to be used to promote real estate research and education at Illinois organizations and institutions of higher learning. Of this sum, $15,000 is set aside for a scholarship program, administered by the Department or a designee of the Department, to support the real estate education of minority real estate professionals. The scholarship money must go toward courses meant to increase the recipients’ knowledge or expertise in the real estate field, including Department-approved broker and managing broker licensing courses, courses necessary to secure the Graduate REALTORS® Institute designation, and courses at accredited Illinois institutions of higher learning.