Breaking News: The Illinois Department of Financial and Professional Regulation – Division of Real Estate posted a new form on its website that allows Managing Brokers the ability to transfer their real estate license to a Broker license.
The unexpected release of this form (and the related process) is the result of efforts by the Illinois Association of REALTORS® to gain clarity on a process that has been part of Illinois real estate license law, but up until now not implemented by the IDFPR.
It may seem like the license transfer is a very desirable option for Managing Brokers who no longer need the additional benefits of this license type. However, as we noted in our blog post, “Can an Illinois Managing Broker Change Their License to a Broker License?”, there is no “undo button” if you decide to transfer your license. To become a Managing Broker again, you would need to have been licensed for two of the past three years, complete a 45-credit-hour pre-license course and pass the state licensing exam again. (You would need to do this even though you formerly held a Managing Broker license.)
If you crunch the numbers, you’ll find that the financial benefits of transferring your license would be minimal in the first two years. If you transfer from a Managing Broker to a Broker before April 30, 2015, you’ll be required to pay a license transfer fee now and complete core and elective CE. Then, you would once again have to pay a license renewal fee in 2016, when all Brokers renew their licenses.
How the License Transfer Works
Here are the specifics about the license transfer as noted on the IDFPR Transfer Application form.
- A Managing Broker license may transfer to a Broker license only if the Managing Broker license is currently in active status subject to the Department’s review and approval. Pending disciplines will be transferred to the new Broker license.
- Upon the transfer of a Managing Broker license to a Broker license, the Managing Broker license will be cancelled. To obtain a Managing Broker license after transferring to a Broker license, a transferee shall meet the requirements of a new applicant for Managing Broker as set forth in the Act and Rules.
- All Brokers must have a sponsoring Broker. If you are currently a self sponsoring Managing Broker, you need to find a new sponsoring Broker, complete the 45 Day Permit Sponsor Card, and pay an additional non-refundable $25.00 fee.
- All licensees required to complete continuing education (“CE”) shall have (i) renewed their Managing Broker license in the previous renewal period with the required CE and (ii) completed the following at the time of application: 12 CE credit hours, which included a minimum of 6 hours of Core CE as set forth in Section 1450.540(b)(3)(A).
Need Help Deciding What’s Right For You?
A license transfer is definitely the right move for some Managing Brokers. It’s crucial that you understand the pros and cons of this important decision. If you need help, call Real Estate Institute’s customer representatives at 800-995-1700.