How To Obtain an Illinois Real Estate License

In Illinois, exams, licensing, and continuing education for real estate agents are governed by the Illinois Department of Financial and Professional Regulation.  In order to obtain an Illinois real estate license,  an applicant must first pass a state exam and meet the procedures for real estate licensing outlined in the Real Estate License Act of 2000

Each applicant shall:

 Be at least 21 years of age, be of good moral character and have graduated from high school or obtained the equivalent of a high school degree.

The minimum age of 21 shall be waived for any person seeking a license as a real estate salesperson who has attained the age of 18 and can provide evidence of  successful completion of at least 4 semesters of post-secondary school study as a full time student or equivalent with major emphasis on real estate courses, at a school approved by the Illinois Department of Financial and Professional Regulation.

All applicants for a real estate salesperson license must meet the following educational requirements:

Successfully complete a 45-class-hour Real Estate Transactions course at a real estate school approved by the Illinois Department of Financial and Professional Regulation or;

Be admitted to practice law by the Illinois Supreme Court or;

Be a resident of another state that has a reciprocal agreement with Illinois and meets the requirements of reciprocity.  

All applicants for a real estate broker license must meet the following educational requirements:

Successfully complete at least 120 classroom hours, 45 of which shall be those hours required to obtain a salesperson license.  75 hours as approved by the Illinois Department of Professional and Financial Regulation as follows:

Mandatory Courses (45 hours)
Brokerage Administration (15 hours)
Contracts and Conveyances (15 hours)
Advanced Principles 2000 (15 hours)

Elective Courses (30 hours – any two listed below)
Real Estate Appraisal (15 hours)
Property Management (15 hours)
Financing (15 hours)
Sales and Brokerage (15 hours)
Farm Property Management (15 hours)
Real Property Insurance (15 hours)
Other approved electives (15 hours) Or;

Be admitted to practice law by the Illinois Supreme Court or;

Be a resident of another state that has a reciprocal agreement with Illinois and meets the requirements of reciprocity.

 Every person making application for an original license as a salesperson or broker must personally take and pass a written examination authorized by the Illinois Department of Professional and Financial Regulation.

Illinois Real Estate License Act Passes! Effective Now!

Provisions effective Dec. 31 2009

On December 31, Governor Quinn signed SB 1894 into law.  SB 1894 contains the rewrite of the Illinois Real Estate License Act.

The Act contains numerous changes and additions, including a change in the requirements to obtain and maintain a license, and additional consumer protection  and enforcement provisions.  Changes in licensing classification from salesperson to broker, education requirements and the new license classification of managing broker become effective May 1, 2011.

Some of the highlights that become effective as of December 31, 2009 include:

·                                 Definitions – lead, regular employee (Section 1-10). The Act defines a “lead” as a name of a potential buyer, seller, lessor, lessee or client of a licensee and includes it under the definition of “broker” when a person is exchanging a lead for compensation. In addition there is a new definition for “regular employee.” A regular employee for purposes of the Act is a “person working an average of 20 hours per week” who would be considered a regular employee under IRS tests.

·                                 Change of Address (Section 5-41). The Act now clearly requires licensees to notify the Illinois Department of Financial and Professional Regulation (IDFPR) of every address where they practice and if they change the address of any office where they practice.

·                                 Advertising – Internet (Section 10-30). The Act has been amended to clarify that all methods of advertising are covered. In other words it clearly includes real estate advertising through the use of any medium, including on the Internet.

·                                 Advertising – deceptive and misleading (Section 10-35). Requires real estate licensees to tell consumers if they are going to sell or share any information that consumers might give them. Licensees may not use a URL or domain name that is deceptive or misleading. They may not “deceptively or without authorization frame another real estate brokerage or multiple listing service website.” Finally, they may not use meta tags, keywords or any other devices to mislead consumers or to deceptively drive them to their website.

·                                 Company Policy (Section 10-40). The Act clearly requires real estate brokerage offices to have a written office policy covering topics such as agency, fair housing, non-discrimination and harassment, clients’ confidential information, advertising, sponsored licensees’ supervision and training, disclosures, risk management, earnest money and escrow handling. (NOTE: The list is not exhaustive but used as an example.)

·                                 Agency – written notice (Section 15-15(b)). In a situation where a designated agent represents more than one buyer making contemporaneous offers on the same property, that agent must give written notice of this to all buyers and give buyers the opportunity to be referred to another designated agent if the buyer chooses to do so.

·                                 Agency – written disclosure (Section 15-35(a)). The Act states more clearly that EVERY client of a licensee must be given written disclosure as to who his/her designated agent is before beginning to work for that person and that the brokerage company must retain a copy of this disclosure. This notice can be part of a written brokerage agreement with the client.

·                                 Dual Agency – disclosing terms (Section 15-45(a)). When a licensee is acting as a disclosed dual agent, the amended Act prohibits the licensee from disclosing to the other party without permission the price or terms a party is willing to accept or pay.

·                                 Discipline - miscellaneous (Section 20-20). IDFPR can impose discipline upon a licensee if he/she violates the Act when dealing with his/her own property. Limits on monetary civil penalties have increased. A licensee can be disciplined based on a guilty plea in addition to a conviction of a crime. A person can be ­disciplined if he/she is determined to be unable to practice with the necessary degree of skill and judgment (to be determined by a hearing).

·                                 Guaranteed Sales Plans (Section 20-20(a)(29)). If this is used, the licensee must determine the guaranteed purchase price before beginning efforts to market the property and if the licensee purchases under the guarantee, he/she must cancel the listing or the listing period must be over.

·                                 Discipline – drugs/alcohol (Section 20-20(e)). If in enforcing the provisions of the Act, IDFPR believes the licensee is incompetent or under the influence of drugs or alcohol the licensee may have to submit to a mental or physical exam.

·                                 Enforcement – continuing violations (Section 20-21). IDFPR can issue an injunction or a cease and desist order if it believes there is a continuing violation of the provisions of the Act. A hearing will be scheduled to assess the facts.

·                                 Enforcement – private right of action (Section 20-21(c)). The Act now contains a private right of action where private citizens can start an action seeking to stop the unlicensed practice of real estate brokerage.

NOTE: This is a summary of some of the provisions that will Illinois real estate licensees.  It is meant to point out major changes.  The licensee is advised to consult the Act and competent council for additional changes and interpretation.

Summary of the changes in Licensing categories and educational requirements that become effective May 1, 2011.

Source: Illinois Association of Realtors®.
 

Real Estate License Act - Top consumer complaints

5 Common Complaints filed with IDFPR
Broker Beware

Could this be You?  One of your Associates?

1.  Earnest Money and Escrow Accounts

2.  Dual Agency

3.  Non-renewal of License

4.  Misrepresentation by Licensees

5.  Unprofessional Conduct

These and others disciplinary actions may be reviewed at the web site of the Illinois Department of Financial and Professional Regulation. 

Any questions?   Contact us at the Illinois Academy of Real Estate
    

Illinois Real Estate Broker's Exam

In February of 2009, the Illinois Real Estate Broker exam changed format.  Prior to that date, the exam consisted of State specific questions and national questions presented in a multiple choice format.

The new exam consists of 45 state specific multiple choice questions.  40 are scored for the exam and 5 are pre-tested for use in future exams. 

The second partr of the exam, the national portion, consists of 10 simulation problems.  8 of the problems are scored and 2 are pre-tested for use in future exams.  What is a simulation problem.?

Each problem has 3 components:  a scenario, information gathering sections and Decision making sessions.  It is an entirely different type of testing and it is important to be familiar with the style of the exam before actually testing.  Complete details are available in the Illinois Candidate Hanbook for Real Estate Licensing.  At the present time, there are no math questions in the simulation exam.

There are 3 sample simulation problems  that you may review at GoAMP.com.  Please understand that they are only designed to give you an idea of what the exam looks like and the process used in answering questions and scoring the exam.  The questions are not Illinois specific and do not truly reflect the type of question that you might see.  AMP does sell an exam that can be a good learning tool, and the Illinois Academy of Real Estates offers a monthly exam prep session. 

The session includes text, practice and instructor support to help you pass the exam.  The fee for the 6 hour program is $99.00.  Any student completing their broker pre-license education with the Illinois Academy of Real Estate have the option of attending any scheduled session at no fee. 

Why Choose The Illinois Academy of Real Estate?

Why choose the Illinois Academy of Real Estate for your real estate education?

Here's what some our students have to say:

Please allow this to serve as an official  recommendation for the level of credibility and value of the Illinois Academy of Real Estate located in Aurora, IL.  I was researching the Web for real estate licensing requirements for the State of Illinois in early 2004, and linked onto the Illinois Academy of Real Estate Web site.  I contacted Mr. and Mrs. Fair regarding the educational courses offered by there Academy.  As a result of that communication, I chose the Illinois Academy of Real Estate to pursue and obtain my real estate license with the State of Illinois.  I made the decision to conduct my studies via the text based distance learning process.

I made the decision to pursue the educational side for both my salesperson's and broker's license in the spring of 2004 through the Academy.  As a result, I opened my own real estate firm, Ann Colburn and Associates, L.L.C. in July of 2004.  I am currently working with commercial projects in excess of $20 million dollars.

I give a high recommendation for the Illinois Academy of Real Estate.  My experience with this resource has been very rewarding and very satisfying.  The Academy provides excellent study resources, testing and preparation for the Illinois real estate licensing exam."  Ann C. - Marion, Il