Ill. Admin. Code tit. 68 § 1450.915

Current through Register Vol. 48, No. 48, December 2, 2024

Section 1450.915 - Suspension or Revocation of a Sponsoring Broker or Designated Managing Broker License

a) Suspension or Revocation of Sponsoring Broker

Upon the effective date of a suspension or revocation of the license of a sponsoring broker or sole proprietorship:

1) The licenses of all sponsored licensees automatically become inactive. Each managing broker licensee may resume licensed activities only upon securing a new sponsorship, either as a self-sponsored managing broker or by another sponsoring broker. Each broker or residential leasing agent may resume licensed activities only upon securing a sponsorship with another sponsoring broker.

2) Suspensions or revocations of a sponsoring broker shall not have an effect on the enforceability of any pending, executed real estate contracts.

A) The sponsoring broker whose license has been suspended or revoked shall send a written notice, in physical or electronic form, to all clients with a pending, executed real estate contract stating that the sponsoring broker's license has been suspended or revoked and that the suspension or revocation shall not have an effect on any pending, executed real estate contracts. The notice shall also identify the name, address, email and telephone number of the person in control of the escrow money. To the extent clients require additional real estate services, the notice shall provide that the clients may seek real estate services from another sponsoring broker.

B) A suspension or revocation shall not preclude the receipt of any commission or other compensation earned by the suspended or revoked sponsoring broker or other formerly sponsored licensee prior to the effective date of the suspension or revocation of the sponsoring broker.

3) A broker shall not be entitled to compensation if the suspension or revocation directly relates to the transaction for which the compensation was earned. If the broker already received compensation related to the transaction leading to the suspension or revocation of the license, the Department or Board may consider that fact when imposing discipline.

b) Suspension or Revocation of a Designated Managing Broker

In the event of a suspension or revocation of a designated managing broker license, offices may operate for 15 days without a replacement designated managing broker. Within 15 days after a suspension or revocation of a designated managing broker license, if a replacement designated managing broker has not been secured or a written request for authorization to continue operation has not been submitted to the Division, the offices must cease licensed activities.

Ill. Admin. Code tit. 68, § 1450.915

Amended at 40 Ill. Reg. 12588, effective 9/2/2016

Amended at 43 Ill. Reg. 1975, effective 1/25/2019

Amended at 45 Ill. Reg. 2851, effective 2/23/2021