If REALTORS® assist with the sale of businesses that fit the parameters of the Illinois Business Brokers Act of 1995 (IBBA), they may need to register with the Illinois Secretary of State’s office to ensure compliance, says Christine Self, Sorling Northrup Attorneys.
This registration is in addition to real estate licensing, Self writes in the May edition of Designated REALTOR® Legal News.
The IBBA requires those who broker the sales of non-securities type of businesses to register with the Illinois Secretary of State, pay annual fees, and meet disclosure and record-keeping requirements. A key question to answer about individual transactions, she states, is whether real estate interests are the dominant element. The frequency of non-real estate transactions and the ratio to the number of real estate transactions can make a difference in whether REALTORS® are judged to handle non-real estate transactions on an “incidental basis.” But since the IBBA doesn’t define “incidental basis,” REALTORS® who occasionally handle non-real estate business sales leave themselves exposed to potential liability if they do not comply with registration, disclosure and record-keeping requirements.
For more information on this issue, in addition to legal case studies, real estate disciplines and more, read the May DR Legal News.