Managing Broker’s License (Article 5)
Managing broker requirements As of May 1, 2012, all applicants for managing broker licenses in Illinois must:
- be 21 years old or older,
- be of good moral character,
- have been licensed as a real estate broker for at least two of the previous three years,
- have completed four years of study at a high school or secondary school, approved by the Illinois board of education, or the equivalent to four years of study as determined by an Illinois Board of Education-administered exam and verified by the applicant under oath.
- have completed at least 165 hours of education as follows,
- 120 pre- and post-licensure hours, as required to obtain a broker’s license,
- in the year before the application for managing broker is filed, 45 additional hours on brokerage administration and management,
- Of these 45 hours, 15 must consist of classroom instruction or some other means of interactive, real-time instruction and discussion between student and instructor,
- take and pass a Department-authorized written examination for licensure, and
- submit a valid application for a managing broker license along with a sponsor card, a managing broker appointment, and the required fees.
An applicant is permitted to act as managing broker after filing her application with the Department and prior to receiving her license but must not continue in this role past the term of 90 days after filing unless her license has been obtained within that period.
Each application for a license (new or renewal) must include the applicant’s social security number or tax identification number, in addition to the other required information.
Education exemptions: broker, managing broker
If an applicant for a broker’s and managing broker’s license is currently an attorney admitted to the practice of law by the Illinois Supreme Court, she is exempt from the education requirements.
The attorney still must take and pass the state exam.
Continued eligibility brokers and managing brokers (Section 5-35)
Approved education for potential brokers and managing brokers is valid for purposes of licensure for four years after date of satisfactory course completion. An official uniform transcript is needed for taking the state exam except for persons exempt from the educational requirements.
The broker, or managing broker license must be applied for within one year of passing the state test. Failure to do so means retaking the test.
Failing the state test (either broker or managing broker) four times requires one to retake the educational coursework.
Corporations, Limited Liability Companies, and Partnerships (Section 5-15)
A corporation, partnership, or limited liability company (LLC) may receive a broker’s license under the following conditions:
- In a corporation, every corporate officer who actively participates in the organization’s real estate activities must hold a managing broker license. In addition, every employee of the corporation who acts as a licensee on the corporation’s behalf also must hold a license as a real estate broker, managing broker, or leasing agent.
- In a partnership, every general partner must hold a managing broker license. Every employee of the partnership who acts as a licensee on the partnership’s behalf also must hold a license as a real estate broker, managing broker, or leasing agent.
- In a limited liability company (LLC) or limited liability partnership (LLP), every manager must hold a managing broker’s license. Additionally, every employee of the LLC/LLP who acts as a licensee on the LLC/LLP’s behalf also must hold a license as a broker, managing broker, or leasing agent.
No corporation, partnership, LLC, or LLP may be licensed to conduct a brokerage business if any individual broker, leasing agent, or group of brokers and/or leasing agents owns or directly or indirectly controls more than 49 percent of the shares of stock or ownership interest in the business entity.
Leasing Agent’s License (Article 5)
The Real Estate License Act of 2000 provides for a limited scope leasing agent license for persons who wish to engage only in activities limited to the leasing of residential real property in which a license is required. This license allows such activities as “leasing or renting residential real property; attempting, offering, or negotiating to lease or rent residential real property; or supervising the collection, offer, attempt, or agreement to collect rent for the use of residential real property.” Licensed brokers and managing brokers do not need a leasing agent license for these activities.
A limited leasing agent license applicant must meet the following requirements:
- Be at least 18 years of age
- Be of good moral character
- Have a high school diploma or its equivalent
- Successfully complete a 15-hour leasing agent pre-license course
- Pass the state’s written leasing license examination
A leasing agent must be sponsored by a licensed real estate sponsoring broker.
Period in which to obtain a Leasing Agent License
A person may engage in residential leasing activities for a period of 120 consecutive days without being licensed, so long as the person is acting under the supervision of a licensed real estate managing broker or sponsoring broker and that broker or sponsoring broker has notified the Department that the person is pursuing licensure.
All education, examination, and fee requirements must be met during the 120-day period.
