As you know, the Real Estate License Act of 2000 expires at the end of 2009, and an IAR-supported rewrite of the Act pending in the legislature is expected to pass in the veto session in October. We’ve heard a little misinformation out there about some of the pending changes, so here’s a quick clarification of a few points. More details on the rewrite legislation can be found here: www.illinoisrealtor.org/Member/government/issues/liclaw.asp
The rewrite changes the names of the two categories of licensure from “salesperson” and “broker” to “broker” and “managing broker”. The bill upgrades the educational requirements for new licensees in each category, and contains a well-thought-out and reasonable transition process for existing licensees. We heard some rumblings out there from a few nervous salespersons that had been told some flat-out wrong information on the rewrite, so here’s the facts:
- The renewal period for existing salespersons will be extended to April 30, 2012 (instead of 2011), and they will have until then to upgrade their license to “broker”.
- Salespersons can upgrade to the “broker” category by either passing a proficiency exam , OR by taking 30 hours hours of education and passing a course exam.
- The proficiency exam will be a very reasonable, provider exam offered by licensed pre-license schools. There were rumors that the proficiency test was already out there and had a high failure rate. WRONG! The test doesn’t even exist yet.
- Existing brokers who are not managing and do not intend to don’t have to do anything to maintain their “broker” status.
- Managing brokers on record with the IDFPR on 4/30/11 have until 4/30/12 to either pass a provider proficiency exam, or take 45 hours of coursework and pass a course exam to obtain a “managing broker” license.
The IAR and your local associations will put out a lot more information to get you ready for the new Act well before the new requirements kick in, but I just wanted to take this opportunity to clarify a few points. Please feel free to let me know any questions you may have.