Illinois real estate agents and Realtors® live in an age of disclosure. They are governed by laws that require them to disclose, disclose, disclose.
That seems easy enough, right?
Well, not always…
For example, did Bob the Broker do the right thing in the following scenario?
Bob the Broker had a vacancy in an apartment building that he owns with his sister. Bob’s sister is not licensed. Bob and his sister signed a one-year lease with a tenant. Bob did not disclose his status as a real estate licensee to the tenant.
Many real estate agents would do the same as Bob the Broker – not feel the need to disclose their status as a real estate licensee in a personal transaction involving a rental property. There seems to be a lot of confusion on when to disclose your status as a licensee.
What does Illinois law say about disclosure of real estate license status?
The Real Estate License Act states, “Each licensee shall disclose, in writing, his or her status as a licensee to all parties in a transaction when the licensee is selling, leasing, or purchasing any interest, direct or indirect, in the real estate that is the subject of the transaction.”
How does Illinois law apply to our hypothetical scenario?
Even though his sister is not licensed, Bob the Broker is in violation of the law for failing to disclose his status as a licensee.
What, if anything, could have been done to prevent the problem?
Bob the Broker could have disclosed his status as a licensee in writing to the tenant.
Unfortunately, many licensees learn the law the hard way by getting reprimanded by state regulators.
Real estate agents and Realtors® are faced with dilemmas on a daily basis. It’s critical that they understand the possible pitfalls. The state-required real estate post-licensing course is one way for new broker licensees to review real-world scenarios.
Learn more about post-license education at Real Estate Institute, where the goals are to help you become better prepared to handle these challenges, avoid disciplinary actions taken against you, and succeed in your real estate career.
Are you planning to become a real estate Broker in Illinois? If so, follow this advice to improve your chances of success on the state licensing exam.
Do Not Procrastinate: Take the State Exam As Soon As Possible
As soon as you pass the Illinois Broker pre-licensing course, you will earn a 90-hour transcript that will qualify you to take the state exam with Applied Measurement Professionals, Inc. (AMP). Earning a transcript means that you have successfully completed the course, passed the final course exams and are now ready to take the next step.
The next step is to take the state exam while the information is still fresh in your mind. Schedule the state exam as soon as possible and no later than two weeks after earning your transcript. Refer to the AMP Candidate Handbook for detailed information about the exam.
For most students, procrastinating will hinder their ability to pass the state exam. The sooner you get there, the more likely you will be able to successfully pass. If more than three months have passed and you were unable to take the state exam, you may benefit from a refresher course.
Stay In the Zone – Stay On Track
From the time that you earn the transcript, to the time that you take the state exam, allow NO DISTRACTIONS. Try to avoid any activity that will take you away from staying in the zone. For example, avoid scheduling vacations during this time.
Stay focused by continuing to study. Review some of your weakest testing areas by rereading those chapters, retaking the practice quizzes and making sure that you understand the key terms.
Being confident is easier said than done, especially when test stress gets in the way. For many, taking an exam is a very stressful experience. You made it through one hurdle by passing the 90-hour pre-license final exams but it’s still not over – The “big one” is next!
If test stress begins to multiply and interfere with your positive mind set and ability to pass the state exam, consider enrolling in our test prep course. This course will add a dose of confidence by teaching you additional test-taking skills and strategies to pass the state exam.
I’m probably not the only one with an Illinois managing broker’s license who is thinking, “Is this the year I officially retire from real estate?” I’m sure that this is a question that echoes in the minds of many this time of year when we must complete our continuing education and renew our license. I have been licensed for over 31 years – that’s a lifetime! I faithfully complete my CE and renew my license every two years. It’s been a part of my life for so long. But I ask myself, is it time to break off the relationship? Is it time to write that “Dear John” letter to the IDFPR?
At this point in my life, I am a self-sponsored managing broker working out of my home. I question keeping my license because I am not actively working with the public in real estate. Recently, I faced an IDFPR audit and survived. Believe me, even though I always do things by the book, I almost threw in the towel after that experience! However, I still like to dabble: buy a house or two every now and then and help out an old friend or family member.
And now it’s renewal time … Should I or shouldn’t I?
As long as I continue to have a passion for real estate, want to learn new things and help a few others, I will continue to renew my license. I have worked so hard to get this far. Like I said, my license and I have shared a lifetime together, and I am not ready to break up!
Maybe this is the year I can make a difference. Maybe this is the year I can give back and become more involved.
I have not given up hope, folks. I’m sure you feel the same. See you in CE class.