(225 ILCS 454/Art. 10 heading)
ARTICLE 10. COMPENSATION AND BUSINESS PRACTICES(225 ILCS 454/10-5) (Section scheduled to be repealed on January 1, 2020) Sec. 10-5. Payment of compensation. (a) No licensee shall pay compensation directly to a licensee sponsored by another broker for the performance of licensed activities. No licensee sponsored by a broker may pay compensation to any licensee other than his or her sponsoring broker for the performance of licensed activities unless the licensee paying the compensation is a principal to the transaction. However, a non-sponsoring broker may pay compensation directly to a licensee sponsored by another or a person who is not sponsored by a broker if the payments are made pursuant to terms of an employment agreement that was previously in place between a licensee and the non-sponsoring broker, and the payments are for licensed activity performed by that person while previously sponsored by the now non-sponsoring broker. (b) No licensee sponsored by a broker shall accept compensation for the performance of activities under this Act except from the broker by whom the licensee is sponsored, except as provided in this Section. (c) Any person that is a licensed personal assistant for another licensee may only be compensated in his or her capacity as a personal assistant by the sponsoring broker for that licensed personal assistant. (d) One sponsoring broker may pay compensation directly to another sponsoring broker for the performance of licensed activities. (e) Notwithstanding any other provision of this Act, a sponsoring broker may pay compensation to a person currently licensed under the Auction License Act who is in compliance with and providing services under Section 5-32 of this Act.
(Source: P.A. 98-553, eff. 1-1-14.)
(225 ILCS 454/10-10) (Section scheduled to be repealed on January 1, 2020) Sec. 10-10. Disclosure of compensation. (a) A licensee must disclose to a client the sponsoring broker's compensation and policy with regard to cooperating with brokers who represent other parties in a transaction. (b) A licensee must disclose to a client all sources of compensation related to the transaction received by the licensee from a third party. (c) If a licensee refers a client to a third party in which the licensee has greater than a 1% ownership interest or from which the licensee receives or may receive dividends or other profit sharing distributions, other than a publicly held or traded company, for the purpose of the client obtaining services related to the transaction, then the licensee shall disclose that fact to the client at the time of making the referral. (d) If in any one transaction a sponsoring broker receives compensation from both the buyer and seller or lessee and lessor of real estate, the sponsoring broker shall disclose in writing to a client the fact that the compensation is being paid by both buyer and seller or lessee and lessor. (e) Nothing in the Act shall prohibit the cooperation with or a payment of compensation to a person not domiciled in this State or country who is licensed as a broker in his or her state or country of domicile or to a resident of a country that does not require a person to be licensed to act as a broker if the person complies with the laws of the country in which that person resides and practices there as a broker.
(Source: P.A. 99-227, eff. 8-3-15.)
(225 ILCS 454/10-15) (Section scheduled to be repealed on January 1, 2020) Sec. 10-15. No compensation to persons in violation of Act; compensation to unlicensed persons; consumer. (a) No compensation may be paid to any unlicensed person in exchange for the person performing licensed activities in violation of this Act. (b) No action or suit shall be instituted, nor recovery therein be had, in any court of this State by any person, partnership, registered limited liability partnership, limited liability company, or corporation for compensation for any act done or service performed, the doing or performing of which is prohibited by this Act to other than licensed managing brokers, brokers, or leasing agents unless the person, partnership, registered limited liability partnership, limited liability company, or corporation was duly licensed hereunder as a managing broker, broker, or leasing agent under this Act at the time that any such act was done or service performed that would give rise to a cause of action for compensation. (c) A licensee may offer compensation, including prizes, merchandise, services, rebates, discounts, or other consideration to an unlicensed person who is a party to a contract to buy or sell real estate or is a party to a contract for the lease of real estate, so long as the offer complies with the provisions of subdivision (35) of subsection (a) of Section 20-20 of this Act. (d) A licensee may offer cash, gifts, prizes, awards, coupons, merchandise, rebates or chances to win a game of chance, if not prohibited by any other law or statute, to a consumer as an inducement to that consumer to use the services of the licensee even if the licensee and consumer do not ultimately enter into a broker-client relationship so long as the offer complies with the provisions of subdivision (35) of subsection (a) of Section 20-20 of this Act.
(Source: P.A. 99-227, eff. 8-3-15.)
(225 ILCS 454/10-20) (Section scheduled to be repealed on January 1, 2020) Sec. 10-20. Sponsoring broker; employment agreement. (a) A licensee may perform activities as a licensee only for his or her sponsoring broker. A licensee must have only one sponsoring broker at any one time. (b) Every broker who employs licensees or has an independent contractor relationship with a licensee shall have a written employment agreement with each such licensee. The broker having this written employment agreement with the licensee must be that licensee's sponsoring broker. (c) Every sponsoring broker must have a written employment agreement with each licensee the broker sponsors. The agreement shall address the employment or independent contractor relationship terms, including without limitation supervision, duties, compensation, and termination. (d) Every sponsoring broker must have a written employment agreement with each licensed personal assistant who assists a licensee sponsored by the sponsoring broker. This requirement applies to all licensed personal assistants whether or not they perform licensed activities in their capacity as a personal assistant. The agreement shall address the employment or independent contractor relationship terms, including without limitation supervision, duties, compensation, and termination. (e) Notwithstanding the fact that a sponsoring broker has an employment agreement with a licensee, a sponsoring broker may pay compensation directly to a corporation solely owned by that licensee that has been formed for the purpose of receiving compensation earned by the licensee. A corporation formed for the purpose herein stated in this subsection (e) shall not be required to be licensed under this Act so long as the person who is the sole shareholder of the corporation is licensed.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/10-25) (Section scheduled to be repealed on January 1, 2020) Sec. 10-25. Expiration of brokerage agreement. No licensee shall obtain any written brokerage agreement that does not either provide for automatic expiration within a definite period of time or provide the client with a right to terminate the agreement annually by giving no more than 30 days' prior written notice. Any written brokerage agreement not containing such a provision shall be void. When the license of any sponsoring broker is suspended or revoked, any brokerage agreement with the sponsoring broker shall be deemed to expire upon the effective date of the suspension or revocation.
(Source: P.A. 98-531, eff. 8-23-13.)
(225 ILCS 454/10-27) (Section scheduled to be repealed on January 1, 2020) Sec. 10-27. Disclosure of licensee status. Each licensee shall disclose, in writing, his or her status as a licensee to all parties in a transaction when the licensee is selling, leasing, or purchasing any interest, direct or indirect, in the real estate that is the subject of the transaction.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/10-30) (Section scheduled to be repealed on January 1, 2020) Sec. 10-30. Advertising. (a) No advertising, whether in print, via the Internet, or through any other media, shall be fraudulent, deceptive, inherently misleading, or proven to be misleading in practice. Advertising shall be considered misleading or untruthful if, when taken as a whole, there is a distinct and reasonable possibility that it will be misunderstood or will deceive the ordinary purchaser, seller, lessee, lessor, or owner. Advertising shall contain all information necessary to communicate the information contained therein to the public in an accurate, direct, and readily comprehensible manner. (b) No blind advertisements may be used by any licensee, in any media, except as provided for in this Section. (c) A licensee shall disclose, in writing, to all parties in a transaction his or her status as a licensee and any and all interest the licensee has or may have in the real estate constituting the subject matter thereof, directly or indirectly, according to the following guidelines:
(1) On broker yard signs or in broker advertisements,
no disclosure of ownership is necessary. However, the ownership shall be indicated on any property data form and disclosed to persons responding to any advertisement or any sign. The term "broker owned" or "agent owned" is sufficient disclosure.
(2) A sponsored or inoperative licensee selling or
leasing property, owned solely by the sponsored or inoperative licensee, without utilizing brokerage services of their sponsoring broker or any other licensee, may advertise "By Owner". For purposes of this Section, property is "solely owned" by a sponsored or inoperative licensee if he or she (i) has a 100% ownership interest alone, (ii) has ownership as a joint tenant or tenant by the entirety, or (iii) holds a 100% beneficial interest in a land trust. Sponsored or inoperative licensees selling or leasing "By Owner" shall comply with the following if advertising by owner:
(A) On "By Owner" yard signs, the sponsored or
inoperative licensee shall indicate "broker owned" or "agent owned." "By Owner" advertisements used in any medium of advertising shall include the term "broker owned" or "agent owned."
(B) If a sponsored or inoperative licensee runs
advertisements, for the purpose of purchasing or leasing real estate, he or she shall disclose in the advertisements his or her status as a licensee.
(C) A sponsored or inoperative licensee shall not
use the sponsoring broker's name or the sponsoring broker's company name in connection with the sale, lease, or advertisement of the property nor utilize the sponsoring broker's or company's name in connection with the sale, lease, or advertising of the property in a manner likely to create confusion among the public as to whether or not the services of a real estate company are being utilized or whether or not a real estate company has an ownership interest in the property.
(d) A sponsored licensee may not advertise under his or her own name. Advertising in any media shall be under the direct supervision of the sponsoring or managing broker and in the sponsoring broker's business name, which in the case of a franchise shall include the franchise affiliation as well as the name of the individual firm. This provision does not apply under the following circumstances:
(1) When a licensee enters into a brokerage agreement
relating to his or her own real estate, or real estate in which he or she has an ownership interest, with another licensed broker; or
(2) When a licensee is selling or leasing his or her
own real estate or buying or leasing real estate for himself or herself, after providing the appropriate written disclosure of his or her ownership interest as required in paragraph (2) of subsection (c) of this Section.
(e) No licensee shall list his or her name under the heading or title "Real Estate" in the telephone directory or otherwise advertise in his or her own name to the general public through any medium of advertising as being in the real estate business without listing his or her sponsoring broker's business name. (f) The sponsoring broker's business name and the name of the licensee must appear in all advertisements, including business cards. Nothing in this Act shall be construed to require specific print size as between the broker's business name and the name of the licensee. (g) Those individuals licensed as a managing broker and designated with the Department as a managing broker by their sponsoring broker shall identify themselves to the public in advertising, except on "For Sale" or similar signs, as a managing broker. No other individuals holding a managing broker's license may hold themselves out to the public or other licensees as a managing broker.
(Source: P.A. 96-856, eff. 12-31-09; 97-1002, eff. 8-17-12.)
(225 ILCS 454/10-35) (Section scheduled to be repealed on January 1, 2020) Sec. 10-35. Internet and related advertising. (a) Licensees intending to sell or share consumer information gathered from or through the Internet or other electronic communication media shall disclose that intention to consumers in a timely and readily apparent manner. (b) A licensee using Internet or other similar electronic advertising media must not:
(1) use a URL or domain name that is deceptive or
misleading;
(2) deceptively or without authorization frame
another real estate brokerage or multiple listing service website; or
(3) engage in the deceptive use of metatags, keywords
or other devices and methods to direct, drive or divert Internet traffic or otherwise mislead consumers.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/10-40) (Section scheduled to be repealed on January 1, 2020) Sec. 10-40. Company policy. Every brokerage company or entity, other than a sole proprietorship with no other sponsored licensees, shall adopt a company or office policy dealing with topics such as: (1) the agency policy of the entity; (2) fair housing, nondiscrimination and harassment; (3) confidentiality of client information; (4) advertising; (5) training and supervision of sponsored licensees; (6) required disclosures and use of forms; (7) handling of risk management matters; and (8) handling of earnest money and escrows. These topics are provided as an example and are not intended to be inclusive or exclusive of other topics.
(Source: P.A. 96-856, eff. 12-31-09.)
(225 ILCS 454/10-45) (Section scheduled to be repealed on January 1, 2020) Sec. 10-45. Broker price opinions and comparative market analyses. (a) A broker price opinion or comparative market analysis may be prepared or provided by a real estate broker or managing broker for any of the following:
(1) an existing or potential buyer or seller of an
interest in real estate;
(2) an existing or potential lessor or lessee of an
interest in real estate;
(3) a third party making decisions or performing due
diligence related to the potential listing, offering, sale, option, lease, or acquisition price of an interest in real estate; or
(4) an existing or potential lienholder or other
third party for any purpose other than as the primary basis to determine the market value of an interest in real estate for the purpose of a mortgage loan origination by a financial institution secured by such real estate.
(b) A broker price opinion or comparative market analysis shall be in writing either on paper or electronically and shall include the following provisions:
(1) a statement of the intended purpose of the broker
price opinion or comparative market analysis;
(2) a brief description of the interest in real
estate that is the subject of the broker price opinion or comparative market analysis;
(3) a brief description of the methodology used to
develop the broker price opinion or comparative market analysis;
(4) any assumptions or limiting conditions;
(5) a disclosure of any existing or contemplated
interest of the broker or managing broker in the interest in real estate that is the subject of the broker price opinion or comparative market analysis;
(6) the name, license number, and signature of the
broker or managing broker that developed the broker price opinion or comparative market analysis;
(7) a statement in substantially the following form:
"This is a broker price opinion/comparative market
analysis, not an appraisal of the market value of the real estate, and was prepared by a licensed real estate broker or managing broker, not by a State certified real estate appraiser."; and
(8) such other items as the broker or managing broker
may deem appropriate.
(Source: P.A. 98-1109, eff. 1-1-15.)