The Real Estate License Act of 2000 lists specific violations for which licensees may be subject to discipline. The Department is authorized to impose the following disciplinary penalties:
- Refuse to issue or renew any license
- Suspend or revoke any license
- Censure or reprimand a licensee
- Place a licensee on probation
- Impose a civil penalty of not more than $25,000 for any one cause or any combination of causes
Causes for Discipline
The Department may take disciplinary action against a licensee for any one cause or a combination of causes. Specifically, a licensee may be subject to disciplinary action or fines if the licensee:
- makes a false or fraudulent representation in attempting to obtain or renew a license,
- has been convicted of a felony or of a crime involving dishonesty, fraud, larceny, embezzlement,
or obtaining money, property, or credit by false pretenses or by means of a confidence game, - is unable to practice the profession with reasonable judgment, skill, or safety as a result of a physical illness,
- practices as a licensee in a retail sales establishment from an office, desk, or space that is not separated from the main retail business and in a separate and distinct area,
- has been subjected to disciplinary action by another state, the District of Columbia, a territory, a foreign nation, a government agency, or any other entity authorized to impose discipline if at least one of the grounds for that discipline is the same as or equivalent to a cause for discipline in Illinois,
- has engaged in real estate brokerage without a license or with an expired or inoperative license,
- attempts to subvert or cheat on the licensing exam or assists someone else in doing so, or
- advertising that is inaccurate, misleading, or contrary to provisions of the act.
A licensee also is subject to disciplinary action if the licensee is found guilty of any of the following activities:
- Making any substantial misrepresentation or untruthful advertising
- Making any false promises to influence, persuade, or induce
- Pursuing a continued and flagrant course of misrepresentation or making false promises through licensee, employees, agents, advertising, or otherwise
- Using any misleading or untruthful advertising
- Using any trade name or insignia of membership in any real estate organization of which the licensee is not a member
- Acting for more than one party in a transaction without providing written agency disclosure
- Representing or attempting to represent a broker other than the sponsoring broker
- Failing to account for or remit any monies or documents belonging to others that come into the licensee’s possession
- Failing to properly maintain and deposit escrow monies in a separate account
- Failing to make all escrow records maintained in connection with the practice of real estate available during normal business hours and within 24 hours of submitted request
- Failing to furnish, on request, copies of all documents relating to a real estate transaction to all parties executing them
- Failure of the sponsoring broker to provide appropriate licensing documents (sponsor cards, license termination information) in a timely way
- Engaging in dishonorable, unethical, or unprofessional conduct of a character likely to deceive, defraud, or harm the public
- Commingling the money or property of others with one’s own
- has been subjected to disciplinary action by another state, the District of Columbia, a territory, a foreign nation, a government agency, or any other entity authorized to impose discipline if at least one of the grounds for that discipline is the same as or equivalent to a cause for discipline in Illinois
- Employing any person on a purely temporary or single-deal basis as a means of evading the law regarding illegal payment of fees to non-licensees
- Permitting the use of one’s managing broker’s license by another person in order to operate a real estate office
- Engaging in any dishonest dealing, whether specifically mentioned by the act or not
- Displaying a For Rent or For Sale sign on any property, or advertising in any fashion, without the written consent of the owner
- Failing to provide information requested within 30 days of the request as related to audits or complaints made against the licensee based on the Act
- Utilizing blind advertising
- Offering an improperly constructed guaranteed sales plan, one that does not meet the Act’s requirements for such plans
- Intending to promote racial or religious segregation by use of actions or words or behaving or speaking in such a way as to discourage integration
- Violating the Illinois Human Rights Act
- Inducing any individual to break out of an existing contract to enter into a new one, whether a sales contract or a listing contract
- Negotiating directly with the client of another agent
- Acting as an attorney in the same transaction in which one acts as a real estate licensee
- If merchandise or services are advertised for free, any conditions or obligations necessary for receiving the merchandise or services must appear in the same ad or offer
- Disregarding or violating any provisions of the Land Sales Registration Act or the Time-Share Act
- Violating a disciplinary order
- Paying or failing to disclose compensation that violates the Act
- Disregarding or violating any provision of this act or the published rules or any regulations promulgated to enforce the Act
- Failing to provide the minimum services required under an exclusive brokerage agreement
- Violating the terms of a disciplinary order issued by the Department
- Forcing any party to a transaction to compensate the licensee as a requirement for releasing earnest money
- Habitual use or addiction to alcohol, narcotics, stimulants, or any other chemical agent that results in licensee’s inability to practice with skill and safety
Nonpayment Issues when obtaining a License or renewing one
Nonpayment of child support
Specifically highlighted in the Illinois Real Estate License Act of 2000, the Department will refuse to issue or renew (or may revoke or suspend) the licenses of individuals who are more than 30 days delinquent in child support payments.
Nonpayment of State Income Tax
Anyone who fails to file a tax return or to pay any tax, penalty, interest, or final assessment required by the Illinois Department of Revenue may have her license withheld or suspended until any such tax requirements are met (Section 20-35).
Nonpayment of Student Loans
If student loans were provided or guaranteed by the Illinois Student Assistance Commission or any governmental agency of the state, and not paid back, the Department will not grant a real estate license to that individual. For an existing licensee, a hearing is made available, after which, if no satisfactory repayment plan has been made, the license may be suspended or revoked.
Discrimination
Licensee guilty of discrimination (Section 20-50) If there has been a civil or criminal trial in which a licensee has been found to have engaged in illegal discrimination in the course of a licensed activity, the Department must suspend or revoke the licensee’s license unless the adjudication is in appeal. Similarly, if an administrative agency finds that a licensee has engaged in illegal discriminatory activities, the Department must take disciplinary action against the licensee unless the administrative order is in appeal.
Guaranteed sales plans
A licensee is subject to disciplinary action if she offers a guaranteed sales plan without complying with the Act’s requirements for such agreements.
A guaranteed sales plan is any real estate purchase or sales plan in which a sponsoring broker:
- enters into an unconditional written contract with a seller,
- promising to purchase the seller’s property
- for a specified price
- if the property has not sold within an agreed period of time on terms acceptable to the seller.
The Act indicates how such a plan can be constructed so as to comply with Illinois law. An Illinois sponsoring broker who offers a guaranteed sales plan in compliance with the Act must:
- provide the details and conditions of the plan in writing to the seller,
- offer evidence of sufficient financial resources to satisfy the agreement’s purchase commitment,
- market the listing in the same manner in which she would market any other property, unless the agreement with the seller provides otherwise, and
- not purchase the seller’s property until the brokerage agreement has ended or is otherwise terminated.
A sponsoring broker who fails to perform on a guaranteed sales plan in strict accordance with its terms is subject to all the penalties for violating the Act, plus a civil penalty of up to $25,000, payable to the injured party.
Unlawful actions by associates if no sponsoring broker knowledge
A sponsoring broker will not have her license revoked because of an unlawful act or violation by any managing broker or broker or leasing agent employed by or associated with the sponsoring broker, or by any unlicensed employee, unless the sponsoring broker had knowledge of the unlawful act or violation. The sponsoring broker could possibly be held liable for the employee’s actions under vicarious responsibility.
