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.
The Department is responsible for administrative activities such as these:
- Conducting license examinations
- Issuing and renewing licenses
- Preparing all forms, including applications, licenses, and sponsor cards
- 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 (“the 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.
Composition of the Board
The Board is composed of nine 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.
- Six of the nine must have been active real estate managing brokers, brokers or salespeople for at least ten years prior to the appointment.
- The remaining three must be unlicensed, unconnected with the real estate profession, and represent consumer interests.
- None of the consumer members (or their spouses) or a person who has an ownership interest in a real estate brokerage business may hold licenses. The Board itself should reasonably reflect representation from all the various geographic areas of Illinois.
- Members are appointed to four-year staggered terms. Board members may be reappointed, but no individual may serve more than a total of 12 years in a lifetime.
- The Board makes recommendations to the Secretary regarding professional conduct and discipline of licensees as well as testing of license seekers. The IDFPR develops forms and issues rules pertaining to real estate licensing after considering the requirements of the Illinois Real Estate License Act and any recommendations made by the
- The Real Estate Coordinator is the nonvoting, ex officio board chairperson .
Advisory Council (Section 30-10)
Matters related to real estate education are handled by the Advisory Council, another governor-appointed body. This five-member council is charged with considering applications for real estate licensing schools and instructors. Pre-licensing and continuing education (CE) course content is also supervised by this body.
The purpose of the Advisory Council is to approve and regulate:
- schools,
- curricula,
- sponsors,
- programs
- suggest administrative rules to the Department.
Membership of the Advisory Council
- Two of the five members must be current members of the Real Estate Administration and Disciplinary Board,
- One must be a representative of an Illinois real estate trade organization (someone who is not a member of the disciplinary board),
- One must be a representative of an approved pre-license school or CE school,
- One must be from an institution of higher education that offers pre-license and CE courses.
The Real Estate Coordinator serves as the ex officio chairperson of the Advisory Council without a vote. Section 13-10 of the Act states
The Advisory Council:
- makes recommendations for the requirements that pre-licensing and continuing education schools and instructors must meet to obtain or renew their licenses,
- reviews license applications from these schools and instructors to verify that license seekers meet the requirements set out by law and by rule,
- approve the curricula for pre-licensing and continuing education providers,
- advise the Board concerning rules to govern these schools and instructors
- administer the portions of the Illinois Real Estate License Act that pertain to education,
- A quorum of three Advisory Council members is required for all council decisions.
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.
