Unit 14
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Blind Ad
An advertisement that does not clearly identify the broker or brokerage. Prohibited in Illinois as it can mislead the public.
An ad that says only 'For Sale — Call 555-1234' without naming the brokerage is a blind ad and violates license law.
Broker
A licensed individual authorized to engage in real estate brokerage activities for others for compensation under the Real Estate License Act of 2000.
A licensed broker can list properties, negotiate contracts, and earn commissions in Illinois.
Designated Agency
A practice where a brokerage designates specific agents to represent the buyer and seller in the same transaction to maintain confidentiality while allowing the brokerage to represent both sides.
Brokerage ABC designates Agent Smith for the seller and Agent Jones for the buyer in a dual agency situation.
Designated Managing Broker
The managing broker specifically named to supervise licensees and ensure compliance for a particular office or company under Illinois law.
The brokerage names one managing broker responsible for all agents in the downtown Chicago office.
Division of Real Estate
The division within the Illinois Department of Financial and Professional Regulation (IDFPR) that oversees real estate licensing, education, and enforcement.
The Division of Real Estate handles license applications, continuing education approval, and disciplinary hearings.
IDFPR
The Illinois Department of Financial and Professional Regulation — the state agency that regulates real estate licensees, along with many other professions. Also referred to as 'the Department'.
All real estate license applications, renewals, and complaints in Illinois are processed through the IDFPR.
Informed Written Consent
Written agreement from both buyer and seller acknowledging and agreeing to dual agency or designated agency representation after full disclosure.
Before representing both parties, the brokerage must obtain informed written consent from the buyer and seller.
License
Official authorization from the state (IDFPR) granting an individual the legal right to engage in real estate brokerage activities in Illinois.
After passing the exam and background check, the applicant receives their real estate broker license from the IDFPR.
Managing Broker
A broker who has met additional requirements and is authorized to manage a brokerage office, supervise other licensees, and take responsibility for compliance.
A managing broker can sponsor new licensees and is responsible for reviewing their transactions.
Real Estate Administration and Disciplinary Board
The board within IDFPR that hears disciplinary cases against real estate licensees and makes recommendations on license actions.
The Board reviews cases of alleged license law violations and can recommend suspension or revocation.
Real Estate Recovery Fund
A fund administered by IDFPR that compensates members of the public who suffer financial loss due to a licensee's misconduct when the licensee cannot pay.
A consumer who wins a judgment against a dishonest broker but cannot collect may apply to the Recovery Fund for reimbursement.
Real Estate Research and Education Fund
A fund that supports real estate research, education, and consumer protection programs in Illinois.
Portions of license fees go into this fund to improve real estate education and protect consumers.
Residential Leasing Agent
A person licensed to lease residential real estate on behalf of others. Has a more limited scope than a full broker license.
A residential leasing agent can show apartments and negotiate leases but cannot sell property.
Sponsoring Broker
The broker or brokerage that employs or associates with a licensee and is legally responsible for supervising their activities under Illinois law.
New licensees must have a sponsoring broker who oversees their work and maintains their license.