Unit 14

Question 1

Real Estate License Act of 2000

Answer 1

Main body of law that regulates real estate; Regulated by IDFPR

Question 2

AMP

Answer 2

Testing Service for license

Question 3

Real Estate License Admin Fund

Answer 3

where the license fees go

Question 4

Real Estate Research and Education Fund

Answer 4

research and scholarships

Question 5

Real Estate Recovery Fund

Answer 5

for compensating consumers harmed by licensee acts

Question 6

Real Estate Audit Fund

Answer 6

for auditing special accounts

Question 7

IDFPR/Dept. Administrative Duties

Answer 7

conduct license exams
issue and renew licenses
prepare forms, licenses and sponsor cards
collect fees

Question 8

Real Estate Administration and Disciplinary Board

Answer 8

Conduct hearings re: revocation and suspension
Impose penalties
Restore suspended or revoked licenses

Question 9

Real Estate Coordinator

Answer 9

Appointed by Secretary of the Department
Licensed broker
acts as Chairperson of Disciplinary Board (no vote)
liason between dept and real estate professionals
prepares education and informational materials
appoints committee
supervisers real estate activities
serves of Chairperson of Advisory Council (no vote)

Question 10

Disciplinary Board

Answer 10

Acts as advisor to Real Estate Coordinator and conducts hearings

• 15 members appointed by the Governor
• residents of IL for more than 6 years
• 12 former real estate brokers for more than 10 years
• 3 unlicensed to represent consumers
• 4 year terms; no more than 12 years of service
• Miss more than 4 meetings, grounds for termination
• Quorum of 5 to make board decisions final
• Reimbursed thru RE Admin Fund

Question 11

Advisory Council

Answer 11

• Governor appointed
• Handle Real Estate Education
• 5 members (2 board members, 1 rep of trade org, 1 of an approved prelicense school, 1 of higher ed school)
• handle applications for licensing schools and instructors
• handle continuing ed content
• 4 years staggered terms; no more than 12 years

Question 12

License Required to practice real estate

Answer 12

must be licensed or civil fine up to $25,000 per offense. Assessed by Dept @ hearing. Must be paid within 60 days of order.

Exemptions:
attorney
executor
trustee
advertising medium
attorney representing seller in transaction
...

Question 13

Licensee

Answer 13

Must carry pocket card

Question 14

Leasing Agent

Answer 14

• over 18
• good moral character
• HS diploma
• 15 hr prelicensing course
• pass exam
• sponsored by broker
• can practice for 120 days while getting license

Question 15

Broker Requirements

Answer 15

• over 18 and give SS#
• good moral character
• HS grad
• 75 Hr coursework (15 hrs case study; then 30 post license)
• pass exam

Question 16

Managing Broker Requirements

Answer 16

• over 21
• good moral character
• licensed broker for 2 of 3 previous years
• 4 years HS
• 165 Hrs coursework (120 pre and post, 45 addt on brokerage admin)
• pass exam
• apply for license

Question 17

Corporation requirements

Answer 17

Everyone part of Real Estate transactions for a corp must hold managing broker license

Question 18

Renewal without fee

Answer 18

if military, serving as real estate coordinator or Dept. employee

Question 19

Expiration of Licenses

Answer 19

Managing Broker - April 30 odd years

Broker - April 30 of even years $150 fee

Leading Agent - 7/31 of even years $100 fee

Licenses to business entities and branch offices expire 10/31 of even years

Question 20

Continuing Ed

Answer 20

6 hours per year
3 core; 3 elective

Managing Broker - 12 hrs prerenewal broker management and pass test

Broker first renewal - 45 hrs post licensing courses and pass exam (3 15 hr classes)

Question 21

Client Funds

Answer 21

journal - maintained for each escrow account

ledger - for each transaction

monthly reconciliation statement - each sponsoring broker must reconcile their monthly bank statements within 10 DAYS

Escrow records kept for 5 years (2 in office)