Illinois Real Estate License Act and Administrative Rules
Who may do what, and under whose name
Illinois regulates brokerage under the Real Estate License Act, administered by the Division of Real Estate within IDFPR, with the Real Estate Administration and Disciplinary Board advising on discipline. License categories include broker, managing broker, and leasing agent; corporations and partnerships must also be licensed and must designate a managing broker.
Education and renewal. A broker applicant completes pre-license coursework (currently 75 hours) and, after licensure, post-license education within the first year; leasing agent requirements are shorter. Continuing education is 12 hours per two-year cycle, including 4 hours of core. Broker and managing broker licenses expire April 30 of even-numbered years, and a licensee must complete education before renewing. Applicants must be at least 18, have a high school diploma or equivalent, pass the exam, and be sponsored by a licensed managing broker.
Conduct rules. A licensee may be paid only by the sponsoring broker; may not commingle escrow funds with personal or business money; must keep records of trust accounts; must disclose agency; must not accept a net listing; must not advertise without the sponsoring broker's name; must not pay compensation to unlicensed persons for brokerage activity; must not induce a party to break a contract.
Discipline. Grounds include fraud, misrepresentation, undisclosed dual agency, commingling, failure to account, and unlicensed practice. Sanctions range from reprimand and probation to suspension, revocation, and civil penalties; the Real Estate Recovery Fund may pay limited court judgments.
Traps: reading a rule as applying only to brokers when it applies to all licensees; assuming a licensee may switch sponsoring brokers without notifying IDFPR.
Rule of thumb: all money questions point to the sponsoring broker and the trust account; all advertising questions point to including the brokerage name.