SB 1894 - Illinois Real Estate License Act of 2000 Rewrite Passes!

Senate Bill 1894 which contains, among other provisions, the rewrite of the Real Estate License Act of 2000 has passed.  Licensees should be aware of the changes that become effective December 31, 2009. Other major changes do not become effective until May 1, 2011.  Those changes include: 
         

Licensing Categories

·         A change in licensing category from salesperson to broker

·         A change in licensing category from broker to managing broker – the managing broker licensing is required in order to function as current broker licensing permits (i.e. managing an office for himself or for a sponsor)

Educational and Experience Requirements

Broker

·         Increases entry level  education from 45 hours of pre-license course work to 90 hours

·         Provides that 15 of those hours must be in a classroom or interactive setting

·         Requires 30 hour post licensing education within the first renewal period

·         Requires 12 hours of continuing education each renewal period, except the first period when the 30 post licensing classes are completed.

Managing Broker

·         Requires prior licensure as a salesperson or broker for 2 out of the last 3 years

·         165 hours of pre-license course work ( the 120 broker hours plus 45 hours in office management, supervision and administrative issues)

·         Provides that 15 of those hours must be in a classroom or interactive setting

·         Requires 12 hour of broker continuing education plus an additional 12 hours of CE on broker management

The above changes become effective for new licensees on May 1, 2011.  As of this date all new licensees will license as broker or managing broker.

The Act contains transition provisions for licensees licensed prior to April 30, 2011 giving licensees until April 30, 2012 to go through proficiency exams or coursework.

·         Existing salesperson licensees – proficiency exam or 30 course work

·         Existing broker maintaining a broker license (not managing) – no course work

·         Existing Broker who self sponsors or manages an office – proficiency exam or 45 hour course work

Course work and exams will be determined by “Rule”.  We will keep you up to date and provide resources to prepare for the new law.