Forms and Contracts

• 45-DAY PERMIT SPONSOR CARD
• Code of Ethics
• Contract between the broker and the agent
• Disclosure of Ancillary Services Compensation
• Examples of Escrow account ledgers and Journal Looking for reliable, easy-to-use escrow management software? IAR initiated the development of Elite Escrow Compliance Software for Illinois brokers to be in compliance with the Illinois License Law and the Real Estate Bureau of the Illinois Department of Financial and Professional Regulation. It offers a solution to the tedious task of handling and accounting for escrow funds. Learn more in IAR Member Discounts, or call Elite Software Corp., located in Carol Stream, Ill., 630/483-1001. http://www.elitesoftwarecorp.com/
• Exempt From MLS Form Letter
• FAX Permission Form
• Preparing for a disaster - information for the owner of an office
• The worksheets contained in this section will assist you in preparing a local plan of action should your business be affected by natural disasters.  Please feel free to use, and copy these forms as needed for your own use.
• W-9 Forms
• Equal Opportunty Houseing Poster
• Affinity relationships under RESPA: Inside Section 8(b)
• License law rules on managing an office (as of 2-2-07)
  Section 1450.125 Managing Broker Responsibilities
  • a) The sponsoring broker shall inform OBRE in writing of the name and certificate number of all managing brokers employed by the sponsoring broker and the office or branch offices each managing broker is responsible for managing. Each managing broker shall have an active license as a broker.
  • b) The sponsoring broker shall be responsible for issuing sponsor cards. However, the sponsoring broker may delegate that responsibility to one or more managing brokers.
  • c) Upon written request within 15 days after the loss of a managing broker, OBRE shall issue a written authorization to allow the continuing operation of a licensed office or branch office, provided that the sponsoring broker or representative under a duly executed power of attorney assumes responsibility, in writing, for the operation of the office and agrees to personally supervise the operations. No authorization shall be valid for more than 60 days unless extended by OBRE for good cause and upon written request by the sponsoring broker. Good cause includes circumstances as sales under contract pending closing, loss of livelihood for sales associates, and undue hardship caused to sellers.
  • d) When a managing broker receives a renewal application from OBRE for a licensee supervised by the managing broker or employed by the sponsoring broker of the manager, he shall notify the licensee of the receipt, personally within 7 days or by certified or registered mail or other signature restricted delivery service within 10 days. The notice shall also inform the licensee that any unprocessed renewal form will be returned to OBRE by the managing broker. When a managing broker receives a renewal application from OBRE for a licensee not supervised by the managing broker or employed by the sponsoring broker of the managing broker, the renewal form shall immediately be returned to OBRE.
  • e) All managing brokers shall notify OBRE on business letterhead of any change of business address of the offices they manage within 24 hours of any change. Change of address is required for all offices and branch offices. A license returned to OBRE for the reason described in this subsection shall remain in good standing until the new licenses are issued and in the possession of the licensee.
  • f) OBRE will honor the Order of a court of competent jurisdiction appointing a legal representative for the sole purpose of closing out the affairs of a deceased broker or a broker who has been adjudicated disabled, who was a sole proprietor, until the real estate brokerage is closed but not to actively engage in the brokerage business as defined in Section 1-10 of the Act.
    Section 1450.130 Supervision
  • a) A managing broker shall exercise reasonable supervision over the activities of licensees and unlicensed assistants working in those offices managed by the managing broker. This would include
    • 1) the implementation of office policies and procedures established by the sponsoring broker;
    • 2) training of licensees or unlicensed assistants;
    • 3) assisting licensees as necessary in real estate transactions;
    • 4) supervising those special (escrow) accounts over which the sponsoring broker has delegated responsibility to the managing broker in order to ensure compliance with the special (escrow) account provisions of the Act and this Part;
    • 5) supervising all advertising of any service for which a license is required;
    • 6) familiarizing sponsored licensees with the requirements of federal and state laws relating to the practice of real estate; and
    • 7) compliance with this Part for licensees and offices under his/her supervision.
  • b) The sponsoring broker shall remain ultimately responsible for compliance with this Part. The sponsoring broker shall name a managing broker for every office.
  • Record Keeping
    
    TITLE 68: PROFESSIONS AND OCCUPATIONS
    CHAPTER VIII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
    PART 1450 REAL ESTATE LICENSE ACT OF 2000
    SECTION 1450.180 RECORD KEEPING

  • Section 1450.180  Record Keeping

    a)         A sponsoring broker shall keep or cause to be kept, escrow records, transaction records, employment agreements, and records reflecting the payment of compensation, as further described in this Section.

    1)         Escrow records for each interest bearing and non-interest bearing escrow account or account into which escrow funds have been deposited. These records shall include:

    A)        Journals as defined in Section 1450.175(i)(1).

    B)        Monthly bank statements.

    C)        Ledgers as defined in Section 1450.175(i)(2).

    D)        Monthly reconciliations as defined in Section 1450.175(i)(3).

    E)         Master Log of (Escrow) Accounts as defined in Section 1450.175(i)(5).

    2)         The escrow records required by subsection (a)(1) shall be maintained for 5 years.  The broker shall ensure that the escrow records for the immediate prior 2 year period are maintained in the office location.  All in office escrow records shall be made available for inspection and audit during normal business hours by the Division staff no later than 24 hours after a request for escrow records and related documents.  Any escrow records more than two years old and stored at a location other than the office shall be made available for inspection during normal business hours within 30 days after the request.

    3)         Records relating to transactions shall be kept in the office involved in the transaction. 

    A)        These records might include copies of the following:

    i)          Residential Property Transactions:  Signed contracts, including offers and counteroffers, written release of escrow funds, Dual Agency Authorization, written direction for deposit into interest bearing special account, power of attorney, disclosures (e.g., lead paint, seller disclosure) and closing statements.

    ii)         Property Management/Leasing: Any rental finding agreement, leases, periodic accounting or statement to the owner regarding the receipts and disbursements.

    iii)         Commercial Representation: Tenant or owner representation agreement, letters of intent, leases, and any written modifications to an executed lease.

    B)        The documents listed in subsection (a)(3) are not intended to be all inclusive; rather, they are intended to be examples of pertinent documents to be retained.  Any similar documents pertinent to a particular transaction shall also be retained.  Any information contained on the outside of a transaction file shall be considered part of that file.

    C)        Transaction records shall be maintained for 5 years.  The sponsoring broker shall ensure that any transaction records involving any active or pending transaction or representation, or any transaction in which escrow funds or monies belonging to others were received and have not yet been disbursed shall be maintained in the office location.  All  transaction records maintained at the office location shall be made available for inspection and audit during normal business hours by the Division staff no later than 24 hours after a request for escrow records and related documents.  Any transaction records stored at a location other then the office shall be made available for inspection during normal business hours within 30 days after the request.

    D)        Sponsoring brokers may allow their sponsored licensees to maintain a duplicate of the transaction records.

    4)         Employment agreements, as required by Section 10-20 of the Act, shall be maintained for 5 years after the sponsored licensee is no longer affiliated with the sponsoring broker.  The broker shall maintain the written employment agreement for every licensee who is employed by or affiliated with the sponsoring broker.  A copy of the employment agreement for each sponsored licensee at a branch office shall be maintained at the respective branch office.

    5)         Records reflecting the payment of compensation for the performance of licensed activities shall be maintained for 5 years.

    b)         If the records are kept electronically, the sponsoring broker shall ensure that a back up is made.  In the case of escrow records, the back up shall be made at least monthly.  The monthly reconciliation, including its worksheet, shall be printed out and maintained by hard copy.  The journal shall be reduced to hard copy at least monthly.

    (Source:  Amended at 30 Ill. Reg. 11075, effective June 8, 2006)

Nsbar News

• 07-28-06 The Illinois Department of Financial and Professional Regulation's (IDFPR) newly implemented mail audit for Broker Compliance has presented a few questions (see the April 2006 IAR Advocacy & Legal Alert for more background on the audits). IDFPR advises that two areas are generating concern by those who have received the mail audit. There are a series of questions relating to supervision. These questions come from Section 1450.130 in the License Law rules regarding supervision requirements for brokers. Each question can be answered with either a "yes" or "no" except for the description of training provided to supervised licensees and unlicensed assistants. You would answer these questions if you are in a supervisory position (e.g., a branch manager). If you are not in a supervisory position, you should respond to the audit by stating that you are sponsored by another and do not have any supervisory duties. Many think that submission of a written office policy regarding training and supervision is required. IDFPR does not require the submission of the office policy, however, this is within the discretion of the broker being audited. A synopsis of how and when training is provided and by whom, is required. Many office policies detail this information and might be the best and most direct response to the question.
  IDFPR Enforcement issues this cautionary advisory: Brokers may not refuse to release a sponsored licensee by not signing off on the license as a means to hold the licensee hostage until any outstanding expenses have been reimbursed to the broker. See Section 5-40 and Section 20-20(11) of the Real Estate License Act of 2000.
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