IMPORTANT UPDATE: The deadline for Illinois Real Estate Managing Brokers to renew their licenses on time is only days away, on April 30. Although the vast majority of licensees will renew on-time, many will not. So what happens if you miss the deadline?
There are a few things to think about, including license renewal fees, continuing education and other compliance considerations.
State License Renewal Fees:
Licensees who miss the renewal deadline will have to pay a $50 late-renewal fee to IDFPR (in addition to the standard $200 renewal fee). Although you might expect the late fee to escalate over time, it does not. The same fee will be due as long as you complete the renewal anytime during the next license renewal period.
If you remain in a non-renewed status beyond a full renewal period, you will be responsible for paying any additional missed renewal fees if/when you eventually renew your license. In other words, the IDFPR will require you to “catch up” on all missed fees from the period of time when your license was in a non-renewed status.
Managing Brokers who renew on time must complete 24 credit hours of CE before renewing their license. The same is true for those who complete a late renewal. So, if you miss the renewal and plan to renew sometime in May, be sure to complete CE before applying for your new license. Failure to do so will result in additional fines/penalties.
Assuming that you complete your CE in May 2015 and then apply for your (late) license renewal, take note that the CE you completed is retroactively applied to the prior renewal period and may not also be applied to your next license renewal (due by April 30, 2017.)
Individuals who wait more than two years to renew will fall into the “reinstatement” category. At that point, you may be subject to different and/or additional education requirements, as mandated by the IDFPR.
Late license renewal is no big deal if you don’t sponsor any other licensees and you don’t have any active business that requires you to hold a real estate license. If you just cringed, here’s what you should know:
- If you sponsor other licensees, these individuals will no longer have a sponsoring Managing Broker because of your failure to renew. This means that their licenses will soon be updated by the IDFPR to show their “inoperative” status. An individual with an inoperative license may not conduct real estate transactions. They will have to find a new sponsor and submit a change of sponsor request to the IDFPR (along with the required $25 fee) before continuing to do business.
- If your license expires and you have active transactions, you may not continue to participate in those transactions. Acting without a license can result in a fine of up to $25,000!
- If you or your sponsored licensees are also REALTORS®, the change in your license status(es) will likely impact your membership(s), including access to the MLS. Contact your local REALTOR® association for more details.
After the April 30 deadline, finding continuing education can be tricky. Real Estate Institute will continue offering the interactive 12-hour Broker Management CE class and webinar. Call 800-995-1700 if you have any questions about the education required for late renewal.