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In addition to a challenging real estate market, Illinois Real Estate Licensees and prospective Licensees will be dealing with more stringent licensing requirements. On December 31, 2009 Governor Quinn signed into law amendments to the Illinois Real Estate License Act of 2000. The focus of the amendments is consumer protection and increased professional competence of Real Estate licensees.
Because of the legislative process, the general public is relatively unaware of the changes taking place. While the Act has been passed and is in effect as written, The Administrative Rules that supply explanatory detail and guidelines for the Act are still in the approval process. Many provisions of the Act require clarification by "rule" before implementation and until the Rules are approved there can be no public announcement of the Act and Rules for Administration of the Act. According to reliable sources, the Rules are expected to be approved in March or April.
The key date is May 1, 2012. At that time, there will be three classes of real estate licenses: Residential Leasing Agent, Broker and Managing Broker.
There are no changes in the licensing requirements for the Residential Leasing Agent.
The Broker License replaces the Salesperson's license as the entry level license and will require 90 hours of pre-license education, passing a state exam and 30 hours of post license education prior to the first renewal of the license. The broker must be associated with an office which has a managing broker.
The Managing Broker will require the 120 hours of broker licensing plus 45 hours of Managing Broker education and passing a state exam. Managing brokers will be required to have held a real estate license for 2 out of the previous three years.
The educational requirements for broker and managing broker be in effect for those individuals applying for a license after May 1, 2011. Attorney's licensed to practice before the Illinois Supreme Court are exempt from the educational requirements, however must pass the Illinois State Real Estate Licensing exam.
Existing real estate licensees are not exempt from additional education requirements. Those currently licensed as real estate salepersons have until April 30, 2012 to transition to the non-managing broker license. They have the option to transition by successfully passing a standardized state exam or completing an additional 30 hour class. There is one opportunity to pass the exam and if the licensee fails, they must successfully complete the 30 hour class.
Those currently licensed as a broker and currently qualified to manage a real estate office and want to retain that qualification, must successfully pass a standardized state exam or complete an additional 45 hour class. There is one opportunity to pass the exam and if the licensee fails, they must successfully complete the 45 hour class.
Those currently licensed as a broker and who do not wish to retain the ability to manage an office may simply complete the continuing education requirements necessary to renew a broker's license and apply for their license by April 30, 2012.
Sound confusing? Here is the bottom line. After April 30, 2012, there will be no more licensed real estate salespersons, only licensed brokers and managing brokers and only a managing broker will be able to manage a real estate office.
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