Broker PE Topics - Lesson 4 [v5.2]

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Broker Pre-License Topics

Lesson 4

Units: 4, 5 & 14

Agency Relationships & The Law



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• This presentation is available exclusively for students enrolled in a course with Real Estate Institute.

Policy

3

Real Estate Agency

Unit 4

Real Estate Institute © 2021

Lesson 4 - Page 1 (800) 995-1700 InstituteOnline.com



• Identify – the various types of agency relationships common in the real estate profession and the characteristics of each

• Describe – the fiduciary duties involved in an agency relationship

• Explain – the process by which agency is created and terminated and the role of disclosure in an agency relationship

• Distinguish – between the duties owed by an agent to the client from those owed to customers

Learning Objectives

44



Agency Law

44

Agency describes the special relationship between real estate licensees and the people they represent.



Common Law

Statutory Law – IL

Agency is defined in Article 15 of the

Real Estate License Act of

2000

Agency Law

44





• A relationship, either express or implied, in which a real estate broker or licensee enters into an agreement with a consumer to represent that consumer in a real property transaction.

Agency

44



Brokerage Agreement• written or oral agreement for brokerage

services to be provided to a consumer in return for compensation or the right to receive compensation from another.

Agency

44



In ILLINOIS……

• Relationships are governed under statutory law. • The body of law on which Illinois agency is

based is Article 15 of the Real Estate License Act of 2000

Agency

44





Client –

person who is represented by a licensee

Consumer –

person or entity seeking or receiving licensed activities

Customer –

A consumer who is not being represented by a licensee

Statutory Definitions

44



In ILLINOIS . . .

• The agent’s fiduciary relationship of trust and confidence with the principal mandates that the broker owes the principal specific duties.

Fiduciary Responsibilities

44



According to Illinois Real Estate License Act, agents must perform the terms of the brokerage agreement and promote the best interests of the client by: • presenting all offers to and from the client in a

timely way, unless the client waives this duty• disclosing to the client known material facts

concerning the transaction, unless that information is confidential

• accounting in a timely way for all money and property received in which the client has, may have, or should have an interest in a timely manner

Fiduciary Responsibilities (Slide 1 of 2)

44





• obeying specific directions of the client that are not otherwise contrary to applicable statutes, ordinances, or rules

• acting in a manner consistent with promoting the client’s best interests as opposed to any other person’s

• exercise reasonable skill and care in the performance of brokerage services

• keep confidential all confidential information received from the client

• comply with all the requirements of the law

Fiduciary Responsibilities (Slide 2 of 2)

44



COLD - AC• Care

• Obedience

• Loyalty

• Disclosure

• Accounting

• Confidentiality


44



COLD - AC• Care

• The agent should know all facts pertinent to the principal’s affairs.

• Obedience

• Loyalty

• Disclosure

• Accounting

• Confidentiality


44





COLD - AC• Care

• Obedience

• The agent must act in good faith, obeying the principal’s instructions.

• Loyalty

• Disclosure

• Accounting

• Confidentiality


44



COLD - AC• Care

• Obedience

• Loyalty

• Requires the agent to place the principal’s interests above those of others.

• Disclosure

• Accounting

• Confidentiality


44



COLD - AC• Care

• Obedience

• Loyalty

• Disclosure

• It is the agent’s duty to keep the principal informed.

• Accounting

• Confidentiality


44





COLD - AC• Care

• Obedience

• Loyalty

• Disclosure

• Accounting

• Requires the agent to report the status of all funds or property received.

• Confidentiality


44



COLD - AC• Care• Obedience• Loyalty• Disclosure• Accounting• Confidentiality

• Client information obtained during the term of the brokerage agreement must be kept confidential.


44



• Statements of opinion are permissible only as long as they are offered as opinions and without any intention to deceive.

• Statements of fact must be accurate.

• Exaggeration of a property’s benefits is calledpuffing. While puffing is legal, licensees must ensure that none of their statements can be interpreted as fraudulent.

Opinion vs. Fact

44





• Fraud is the intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person.

Opinion vs. Fact

44



• Negligent Misrepresentation occurs when the broker should have known that a statement about a material fact was false. If the buyer relies on the broker’s statement, the broker is liable for any damages that result.

• If a broker accidentally fails to perform some act, the broker may be liable for damages from such a negligent omission.

Opinion vs. Fact

44



• If a contract to purchase real estate is obtained as a result of fraudulent misstatements, the contract may be disaffirmed or renounced by the purchaser. The broker can be liable for damages if either party suffers loss.

• If the licensee’s misstatements were based on the owner’s inaccurate statements and the licensee had no independent duty to investigate their accuracy, the broker may be entitled to a commission, even if the buyer rescinds the sales contract.

Opinion vs. Fact

44





Munjal v. Baird & Warner held that a licensee has no duty to discover “latent material defects” in a property if a seller has not disclosed these defects to the broker prior to sale.

A latent defect is a hidden structural defect that would not be discovered by ordinary inspection. Buyers have been able to either rescind the sales contract or receive damages when a seller fails to reveal known latent defects.

Defects and Disclosures

44



Defects and Disclosures

Residential Real Property Disclosure Report

44



Stigmatized Properties

44

In Illinois, no cause of action shall arise against a licensee for the failure to disclose “stigmatized properties”.





In Illinois, Under Article 15 of the Real Estate License Act:

• “No cause of action shall arise against a licensee for the failure to disclose that an occupant of that property was afflicted with HIV or any other medical condition or that the property was the site of an act of occurrence which had no effect of the physical condition of the property or its environment or the structures located thereon.”


44



• Federal Law requires law enforcement authorities to make information available to the general public regarding registered sex offenders.

• Sex offenders must notify law enforcement of any change of address or employment.

Megan’s Law

44



In Illinois, Under Article 15 of the Real Estate License Act:

• Listing agents have no legal duty to disclose that a known sex offender resides in a property near a listed home, but skilled buyers’ agents should be watchful of signals of hard-to-identify issues.

Megan’s Law

44





Express - an agency relationship between a

principal and a broker is generally created by a

written employment contract.

Implied - occurs when the actions of the

licensee indicate that they have formed an agency relationship.

Compensation -source of compensation

does not determine agency.

Creation of Agency

44



• In Illinois, the law requires that all exclusive listing agreements must be in writing.

Creation of Agency

44



• Death or incapacity of either the client or the sponsoring broker

• Destruction of condemnation of the property

• Expiration of the terms of the agency

• Mutual agreement by all parties to the contract

• Breach

• By operation of law, as in bankruptcy

• Completion, performance, or fulfillment

Termination of Agency

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• Agency relationship in which the agent has an interest in the property being sold

Agency Coupled with an Interest

44



Universal

General

Special

Designated

Types of Agency

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• Seller as principal• Buyer as principal• Landlord as principal

• Tenant as principal

The agent owes

fiduciary duties

exclusively to one

principal who may be

the:

Single Agency

44





The agent represents both buyer and seller in the same transaction, such as selling one’s own listing

In Illinois, must be in writing and signed by both parties

Dual Agent

44



Dual Agency

44



In ILLINOIS:

• Licensees are presumed to represent the consumer with whom they are working as the consumer’s designated agent, unless there is a written agreement between them specifying another relationship.

Disclosure of Agency

44





• The client is the principal to whom the agent gives advice and counsel.

• The agent is entrusted with certain confidential information and has fiduciary responsibilities.

• The agent is an advocate for the principal, not for the customer.

Client vs. Customer

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• The customer is entitled to factual information and fair and honest dealings as a consumer but does not receive advice and counsel or confidential information about the principal.

• The agent works for the client (principal) and with the customer.

Client vs. Customer

44



In Illinois, consumers must receive the following disclosures no later than the time a brokerage agreement is entered into:• that a designated agency relationship will exist unless

there is a written agreement providing otherwise;• any other agency relationships available through the

brokerage;• the names of any designated agents; the amount and

manner of the broker’s compensation; and• whether or not the broker will share the

compensation with brokers who represent other parties in a transaction and disclosure of the amount to be paid to the cooperating broker.

Disclosure of Agency

44





Quick-Fire Review



• What possible relationships exist in Illinois between licensees and the people they serve in the real estate industry?

Quick-Fire Review



Quick-Fire Review





• The real estate broker’s responsibility to keep the principal informed of all of the facts that could affect a transaction is the duty of care.

Quick-Fire Review



• The real estate broker’s responsibility to keep the principal informed of all of the facts that could affect a transaction is the duty of care.

• FALSE!

Quick-Fire Review



• Upon discovering a latent defect in the property, the licensee should discuss the problem with the seller and then inform any prospective buyers of the defect.

Quick-Fire Review





• Upon discovering a latent defect in the property, the licensee should discuss the problem with the seller and then inform any prospective buyers of the defect.

• TRUE!

Quick-Fire Review



• Under Illinois law, the person who receives brokerage services but is not represented by the licensee is called a client.

Quick-Fire Review



• Under Illinois law, the person who receives brokerage services but is not represented by the licensee is called a client.

• FALSE!

Quick-Fire Review





Agency Agency Coupled with an Interest Agent Brokerage Agreement Buyer Agency Agreement Client Commingling Compensation Confidential Information Consumer Conversion

Key Terms Review

44



Cooperative Commission Customer Designated Agent Dual Agent Express Agency Express Contract Fiduciary Duties Fraud General Agency General Agent Gratuitous Agency

Key Terms Review (cont’d)

44



Implied Agency Implied Contract Latent Defect Listing Agreement Material Facts Negligent Misrepresentation Principal Puffing Single Agency Special Agency Universal Agent


44





• Identify – the various types of agency relationships common in the real estate profession and the characteristics of each

• Describe – the fiduciary duties involved in an agency relationship

• Explain – the process by which agency is created and terminated and the role of disclosure in an agency relationship

• Distinguish – between the duties owed by an agent to the client from those owed to customers

Learning Objectives - Review

44

56

Real Estate Brokerage

Unit 5



• Identify – the role of technologies, personnel, and license laws in the operation of a real estate business

• Describe – the various types of antitrust violations common in the real estate industry and the penalties involved with each

• Explain – how a licensee's compensation is usually determined

• Distinguish – employees versus independent contractors and explain why the distinction is important

Learning Objectives

55






55



Brokerany person licensed

to perform real estate activities on behalf of a licensed real estate

sponsoring broker


55



Sponsoring Broker

fully responsible for the actions performed

in the course of the real estate business

by all persons sponsored

all activities performed by a

sponsored licensee must be performed in

the name of the sponsoring broker


55





Managing BrokerEach office must

have a designated managing broker


55



• Designated Managing Broker Responsibilities:

• Supervision of all licensees

• Maintenance of licenses

• Change of business address

• Advertising

• Planning

• Policy and Procedures Manual

• Licensee safety


55



Whether a sponsored licensee is treated as an employee or an independent contractoraffects the structure of the sponsored licensee’s responsibilities and the sponsoring broker’s liability to pay and withhold taxes from the sponsored licensee’s earnings

Independent Contractor vs. Employee

55





Three requirements must be met to establish an independent contractor status:

• Current real estate license• Written contract specifying that the licensee will

not be treated as an employee for federal tax purposes

• 90% of income based on production, not number of hours worked

Independent Contractor vs. Employee

55



• The person or entity initiating the termination shall notify the Department of the termination within 24 hours.

• License of terminated licensee automatically becomes inactive.

• New sponsoring broker notifies the Department of new sponsorship relationship within 24 hours after establishing sponsorship.

• License becomes active.

Termination of Sponsorship

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Business Planning

55





• Real Estate License Act of 2000 requires an office policy

• Exception is sole owner with no sponsored licensee

• Topics should include:

o Agency policy

o Fair housing, nondiscrimination and harassment

o Confidentiality of client information

o Advertising

The Policy and Procedures Manual

55



Errors and Omissions (E&O) Insurance

55



Assistants

• Combination office manager, marketer, organizer, and facilitator with a fundamental understanding of the real estate industry

• May or may not have a real estate license

If licensed

• Must be paid by sponsoring broker• Must have a written agreement with the

sponsoring broker

Assistants

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May…• Perform administrative and clerical functionsMay Not…• Host public open houses• Interpret information related to a real estate

transaction• Explain or interpret real estate documents with

anyone outside the employing licensee’s firm• Negotiate commission or fees on behalf of a

licensee• Perform any other activity for which a license is

required

Unlicensed Assistants

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Amount of a broker’s commission is negotiable in every case

Broker’s Compensation

55



Broker must cause the action that results in a real estate transaction to be considered the procuring cause of sale

Even if the transaction is not consummated, the broker may still be entitled to a commission


55





In Illinois:• It is illegal for a sponsoring broker to pay a

commission to anyone other than the sponsored licensee


55



Technology And Brokerage

55

The internet has brought big changes to the real estate industry.



Price Fixing

Group Boycotting

Allocation of Customers or Markets

Tie-In Agreements

Antitrust Laws

55





National Do Not Call Registry

55



It is illegal to call names on the national list…

• Unless you have an existing business relationship

within the last 18 months or

the consumer inquired about your services within the last 3 months.


55



To avoid penalties, managing brokers must demonstrate that they:

• Have written procedures to comply with the do-not-call requirement

• Train personnel in those procedures

• Monitor and enforce compliance with these procedures

• Maintain a company-specific list of phone numbers that they may not call

National Do Not Call Registry (Page 1 of 2)

55





To avoid penalties, managing brokers must demonstrate that they:

• Access the national registry every 30 days before calling any consumer and maintain records documenting this process

• They must show that any call made in violation of the do-not-call rules was the result of an error

National Do Not Call Registry (Page 2 of 2)

55



The CAN-SPAM Act

55

The CAN-SPAM Act establishes requirements for sending commercial e-mail, spells out penalties for those who don’t comply, and gives consumers the right to have e-mailers stop sending messages to them.



The Junk Fax Prevention Act of 2005

55

The act does not legalize unsolicited fax ads or solicitation, but it does allow for an established business relationship exception.In general, a licensee may not legally send an unsolicited commercial fax message without express written consent or without an established business relationship with the client.





Quick-Fire Review



• When would one use the services of a broker?

Quick-Fire Review



Quick-Fire Review





• The amount of commission due to a sponsored licensee is determined by state law.

Quick-Fire Review



• The amount of commission due to a sponsored licensee is determined by state law.

• FALSE!

Quick-Fire Review



• A real estate broker was responsible for a chain of events that resulted in the sale of one client’s properties. This is called procuring cause.

Quick-Fire Review





• A real estate broker was responsible for a chain of events that resulted in the sale of one client’s properties. This is called procuring cause.

• TRUE!

Quick-Fire Review



Antitrust Laws Broker CAN-SPAM Act of 2003 Commission Cooperative Commission Employee Errors and Omissions (E&O) Insurance Fiduciary Standard Group Boycotting Independent Contractor

Key Terms Review

55



Junk Fax Prevention Act of 2005

Managing Broker


Price-Fixing

Procuring Cause

Ready, Willing, and Able Buyer

Regular Employee

Sponsoring Broker

Tie-In Agreement


55





• Identify – the role of technologies, personnel, and license laws in the operation of a real estate business

• Describe – the various types of antitrust violations common in the real estate industry and the penalties involved with each

• Explain – how a licensee's compensation is usually determined

• Distinguish – employees versus independent contractors and explain why the distinction is important


55

92

Illinois Real Estate License Law

Unit 14



• Identify – the various categories of licensure

• Describe – the actions that result in discipline against a licensee

• Explain – the statutory duties of the agency relationship

• Distinguish – the process involved in sponsoring versus terminating a license

Learning Objectives

1414





Illinois Department of Financial and Professional Regulation (the Department)

• Division of Real Estate

• Real Estate Coordinator

• Real Estate Administration and Disciplinary Board (READ Board)

• Real Estate Research and Education Fund

Administration of The Illinois Real Estate License Act

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• Who needs to be licensed?

Obtaining and Keeping a License

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Any person who performs any of the following services for someone else for compensation must have a license:

• Sells, exchanges, purchases, rents, or leases real estate, or offers to do so

• Negotiates, offers, attempts, or agrees to negotiate the sale, exchange, purchase, rental, or leasing of real estate

• Lists, offers, attempts or agrees to list real estate for sale, lease, or exchange

• Buys, sells, offers to buy or sell, or deals in options on real estate or improvements

• Buys, sells, markets for sale, exchanging, or otherwise dealing in contracts or options (wholesaling)

Who Needs To Be Licensed? (Slide 1 of 2)

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• Supervises the collection of, offers, attempts or agrees to collect rent for the use of real estate

• Advertises or represents himself or herself as being engaged in the business of buying, selling, exchanging, renting, or leasing real estate

• Assists in or directs the procuring of prospects intended to result in the sale, exchange, lease, or rental of real estate

• Assists in or directs the negotiation of any transaction intended to result in the sale, exchange, lease, or rental of real estate

• Opens real estate to the public for marketing purposes• Sells, leases, or offers for sale or lease, real estate at auction

Who Needs To Be Licensed? (Slide 2 of 2)

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Exemptions From Licensing Requirements


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• Owners or lessors (whether individuals or business entities) or their regular employees who sell, lease, or otherwise deal with their own property in the ways described under Section 1-10 in the course of the management, the sale, or another disposition of their or their employer’s property

• Attorneys-in-fact acting under duly executed and recorded powers of attorney to convey real estate from the owner or lessor or performing their duties as attorneys-in-fact

• The services rendered by an attorney at law in the performance of his or her duties as an attorney at law

• Any person acting as receiver, trustee in bankruptcy, administrator, executor or guardian or while acting under a court order or under the authority of a will or a testamentary trust

• A resident apartment manager working for an owner or working for a broker employed to lease the property, if the apartment is his or her primary residence

License Requirement Exemptions (Slide 1 of 3)

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• Any officer or employee of a federal agency, state government or other political subdivision performing official duties

• Any multiple listing service or other information exchange of real estate information

• Railroads and other public utilities regulated by the state or their subsidiaries or affiliates and the employees of such organizations

• Any medium of advertising that routinely sells real estate advertising but provides no other related services

• Any resident lessee of a residential dwelling unit who refers no more than three prospective tenants in any 12-month period and who receives no more than $5000- or two-month’s rent (whichever is less) in compensation (or finder’s fees)


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• Any person who is licensed without examination under Section 10-25 of the Auction License Act for the limited purpose of selling or leasing real estate at auction

• A hotel operator who is registered with the Illinois Department of Revenue and pays taxes under the Hotel Operator’s Occupation Tax Act and rents rooms for a period of not more than 30 consecutive days and not more than 60 days in a calendar year


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Civil Penalty for the Unlicensed Practice of Real Estate:

$25,000 per offense


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General Requirements

• Broker’s License• Managing Broker’s License• Residential Leasing Agent

License Categories and Requirements

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Corporations

Limited Liability

CompaniesPartnerships

License Categories And Requirements

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PSI/AMP

• 100 National Questions

• 45 Illinois Specific Questions

• Passing Score 75%

• Multiple choice

• 3.5 hours

• 4 attempts

• Transcripts are good for 2 years

The Licensing Examination

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• The licenses of sponsored licensees are to be available at the place of business.

• Other points to know:

• Changing business address or name

• Leaving or changing firms

• Inactive or expired license

The Real Estate License

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Nonresidents and License by Reciprocity• A broker licensed in a state that has a reciprocal

licensing agreement with Illinois may be issued an Illinois license without examination under certain conditions, but they must successfully take the Illinois portion of the state exam.

• Illinois has reciprocity with Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Nebraska, and Wisconsin.

The Real Estate License

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Expiration and Renewal• Broker licenses expire on April 30 of every

even-numbered year.

• Managing Broker licenses expire on April 30 of every odd-numbered year.

• Residential Leasing Agent licenses expire July 31 of every even-numbered year.

Continuing Education

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Course Content and Core Requirements for Brokers

• 4-Hour Core requirements

• 8 Hours of Elective Courses

Continuing Education

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Place of Business• Each real estate managing broker must maintain a

definite office or place of business within Illinois

• Exceptions - reciprocity

• Multiple offices

Your Real Estate Business and The Act

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• Employment Agreements

• Agency relationships

• Disclosure

• Handling client funds

• Assistants

• Advertising regulations

• Compensation and business practice

Your Real Estate Business and The Act

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Material Facts/Known

Latent Physical Defects

Designated Agency

Dual Agency

Agency Relationships

No-Agency

Compensation Sources

Contemporaneous Offers

Disclosure

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Must include business name and franchise affiliation

(if any).

Must include business name and franchise affiliation

(if any).

Blind ads are prohibited.

Blind ads are prohibited.

May not be fraudulent,

deceptive, or misleading.

May not be fraudulent,

deceptive, or misleading.

Must communicate accurate

information.

Must communicate accurate

information.

Brokers cannot place a sign on any

property without the written consent

of the owner.

Brokers cannot place a sign on any

property without the written consent

of the owner.

Advertising Regulations

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IDFPR may impose the following

disciplinary actions:

Refuse to issue or

renew any license

Suspend or revoke

any license

Censure or

reprimand a licensee

Place a licensee

on probation

Disciplinary Provisions and Loss of License

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Licensees may be subject to disciplinary action if they:

• make a false or fraudulent representation in attempting to obtain a license;

• have been convicted of a felony or of a crime involving dishonesty, fraud, larceny, embezzlement, obtaining money, property or credit by false pretenses or by means of a confidence game;

• have been convicted of a crime that constitutes a felony under Illinois law;

• have been convicted of a felony in a federal court;

Causes for Discipline (Slide 1 of 8)

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• perform or attempt to perform any act as a licensee in a retail sales establishment in a space not separated from the main retail business;

• have been subjected to disciplinary action by another state, if at least one of the grounds for that discipline is the same as or equivalent to a cause for discipline in Illinois;

• have engaged in real estate activity without a valid license (an additional civil penalty of up to $25,000 may be imposed for this violation); or

• attempt to subvert or cheat on the licensing exam or assist someone else in doing so.

• Cheating on continuing education courses or examinations.


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• making any substantial misrepresentation or untruthful advertising;

• making any false promises likely to influence, persuade, or induce;

• pursuing a continued and flagrant course of misrepresentation or false promises;

• 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 as an undisclosed dual agent;


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• failing to account for or to remit any monies or documents belonging to others;

• failing to maintain and deposit in a special non-interest bearing account, separate from a personal or other business accounts, all escrow monies belonging to others;

• failing to make all escrow records and related real estate business documents available to IDFPR;

• failing to furnish on request copies of all documents relating to a real estate transaction;

• failing by a sponsoring broker to submit termination documentation in a timely manner;


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• demonstrating unworthiness or incompetency;• commingling the money or property of others with their own;• employing any person on a purely temporary or single-deal

basis as a means of evading the law regarding payment of commission to nonlicensees;

• permitting the use of their license as a broker to enable a salesperson or an unlicensed person to operate a real estate business;

• engaging in any conduct, whether or not specified in the license act, that constitutes dishonest dealing;

• displaying a sign on any property without the written consent of an owner or advertising that a property is for sale or for rent without the owner’s consent;


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• failing to provide information requested by IDFPR within 30 days of the request;

• disregarding or violating any provision of the license law, rules, or regulations;

• assisting any individual or business entity in disregarding the license act;

• advertising any property for sale, or advertising any transaction of any kind relating to the sale of property, without clearly disclosing the name of the firm with which the licensee is associated or evidence of the broker’s occupation;

• influencing or attempting to influence a prospective seller, purchaser, occupant, landlord, or tenant so as to promote the continuance or maintenance of racially and religiously segregated housing or to retard, obstruct, or discourage racially integrated housing;


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• engaging in any act that constitutes a violation of the Illinois Human Rights Act

• inducing any party to a contract of sale or listing agreement to break the contract for the purpose of substituting a new contract or listing agreement with a third party;

• negotiating a sale, exchange, or a lease of real property directly with an owner or lessor without authority from the listing broker if the licensee knows that the owner or lessor has a written exclusive listing agreement with another broker;

• where the licensee is an attorney, acting as both the lawyer and the licensee for either the buyer or the seller in the same transaction;


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• advertising free merchandise, awards, prizes, or services if any necessary conditions are not disclosed;

• recruiting at license testing facilities;

• failing to repay Illinois student loans;

• violating the terms of a disciplinary order by IDFPR; or

• paying commissions directly to a licensee employed by another;

• failure to pay Illinois taxes;

• failure to pay child support.

• offering a guaranteed sales plan which does not comply with the Act.


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• A sales plan in which a sponsoring broker enters into a contract with the seller, promising to purchase the property for a specific price if the property is not sold within an agreed period of time.

• In Illinois, a sponsoring broker must:• Provide written details• Offer evidence of financial resources• Market the listing in the same manner as other

listings• Not purchase the property until the listing

terminates

Guaranteed Sales Plans

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Procedure for disciplinary hearings • Disciplinary consent orders

• Judicial review

• Criminal prosecution and penalties

• Injunctions

• Disciplinary statute of limitations

• Index of decisions

Disciplinary Provisions and Loss of License

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The Real Estate Recovery Fund

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Provides a means of compensation for actual monetary losses suffered by any person as a result of a violation of the license act, rules, or regulations.



Recovery Amounts • Amounts as adopted by Rules


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• Collection From The Recovery Fund

• To recover from the fund, all proceedings, reviews, and appeals must be completed.

• Statute of Limitations

• A suit that may result in collection from the fund must be commenced within two years after the date the alleged violation occurred.


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Financing The Recovery Fund • Fines, penalties, and application funds are

deposited in the State Treasury in a specific Real Estate Recovery Fund.

• If the balance goes down to $750,000, the Treasurer will cause sufficient funds to increase the balance to $800,000 with monies from the Real Estate License Administration Fund.


1414



Quick-Fire Review





• Why are there so many requirements for becoming a real estate licensee?

Quick-Fire Review



Quick-Fire Review



• Sponsored real estate brokers may represent only the sponsoring broker under whom they are licensed.

Quick-Fire Review





• Sponsored real estate brokers may represent only the sponsoring broker under whom they are licensed.

• TRUE!

Quick-Fire Review



• The purpose of the Real Estate Recovery Fund is to protect the public from dishonest real estate licensees.

Quick-Fire Review



• The purpose of the Real Estate Recovery Fund is to protect the public from dishonest real estate licensees.

• FALSE!

Quick-Fire Review





Blind Ad

Broker

Designated Agency

Division of Real Estate

Illinois Financial And Professional Regulation (IDFPR)

Informed Written Consent

License

Key Terms Review

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Managing Broker

Real Estate Administration And Disciplinary Board

Real Estate Recovery Fund

Real Estate Research And Education Fund

Residential Leasing Agent

Sponsoring Broker

Sponsorship


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• Identify – the various categories of licensure

• Describe – the actions that result in discipline against a licensee

• Explain – the statutory duties of the agency relationship

• Distinguish – the process involved in sponsoring versus terminating a license


1414



139


What did You learn in this class?

140


Read Units: 4, 5, 14

Read:State of IL Real Estate License Act of 2000 in Student Portal

Take Online: Lesson Exam 4

Homework


Thank You For Attending Today’s Class!

InstituteOnline.com



Date post:	10-Feb-2022
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Broker PE Topics - Lesson 4 [v5.2]

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