The state of Illinois enacted real estate laws since 1921. The purpose of Illinois Real Estate Licensing Laws is to regulate persons and entities engaged in real estate business for the protection of the public.
Major changes were made in real estate license law with The Real Estate License Act of 2000. We will focus on the review of the Illinois License Law in this chapter as well as other important laws that impact the real estate business.
Federal Laws such as the Truth-in-Lending Act (TILA) and Fair Housing Act, the Equal Credit Opportunity Act (ECOA) and Real Estate Settlement Procedures Act (RESPA) regulate certain real estate business practices to ensure fair dealing, ethical conduct, and equal treatment. In addition, required disclosures are intended to inform and protect clients and consumers.State laws such as the Illinois Residential Real Property Disclosure Act, the Illinois Radon Awareness Act, and the Illinois Human Rights Act are discussed in this textbook and should be reviewed by the student.
Local laws and ordinances such as land use, zoning, fair housing, landlord/tenants’ rights and environmental protections should be discussed with your sponsoring broker.
The real estate industry in Illinois is regulated by the Division of Professional Regulation (DPR), a branch of the Illinois Department of Financial and Professional Regulation (IDFPR) also known as the Department, which is charged with protecting and improving the lives of Illinois consumers.
The Department is responsible for administering and enforcing the Illinois Real Estate License Act of 2000. In addition, the Department administers all licenses for Illinois real estate brokers, managing brokers, residential leasing agents, real estate corporations, partnerships, limited liability companies, real estate branch offices, real estate schools, and real estate instructors.
The Department promulgates rules for the Act’s implementation and enforcement. These are often referred to as “the rules,” and they supply explanatory detail and guidelines for the Act. The Act, rules, and other significant legislation are available online at www.ilga.gov (click on Illinois Compiled Statutes, Chapter 225; ILCS 454). These are essential for any real estate licensee to know.
