IDFPR Announces Managing Broker Transfer Application

Escalator down_Managing Broker to Broker License Transfer
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.

Why now?

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.

Buyer Beware

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

How to Complete Your 2015 Illinois Managing Broker License Renewal in Two Simple Steps

IDFPR opens license renewal window
The Illinois Department of Financial and Professional Regulation (IDFPR) is now accepting Managing Broker license renewal applications.  Follow these instructions for a timely renewal:


Step 1 – Complete 24 Credit Hours of Continuing Education

Illinois real estate Managing Brokers need a total of 24 hours of continuing education (CE) in 2015 which includes: 12 hours of core and elective CE (via self-study, online or classes) plus 12 hours of interactive Broker Management CE (via live classes or live webinars). It’s important to note that this education requirement is different (and takes more planning) than in previous renewal periods.

The current Managing Broker renewal period began May 1, 2013, and ends April 30, 2015. If you complete continuing education courses with Real Estate Institute, our school reports your course completions to the IDFPR.

Exceptions

    • New Licensees: Managing Brokers who are in their first renewal period might not need 24 hours of CE in 2015. Individuals in their first renewal period who completed the Managing Broker pre-license courses during the renewal period are exempt from the Broker Management CE requirement. These licensees are required to complete only 12 hours of core and elective continuing education. (If you transitioned from a Broker license to a Managing Broker license, you are not in your first renewal period and need 24 hours of CE.)
  • Attorneys: Currently licensed Illinois attorneys are exempt from the education requirements!   Don’t forget to submit your license renewal application. See below.


Step 2 – Submit Your New License Application

After you have completed your CE requirement, you must renew your license with the IDFPR. There are two ways to renew your license:

  1. Apply Online – The IDFPR permits online license renewal applications to be submitted up to 90 days before the license expires. This option allows you to complete the entire renewal application and pay online. Click here to apply online.
  2. Mail Your Application – The IDFPR typically mails licensees a copy of the renewal application 60 days before the license expires. This application can be completed and returned with payment. If you use the paper application, we strongly recommend that you send it to the IDFPR via USPS Certified Mail so that you receive confirmation of delivery to the IDFPR. Delivery confirmation will be critical in the event of a delay in license renewal. It will take the IDFPR several weeks to process your application.

If you have questions about your education requirements for renewal, please call 800-995-1700 to speak to one of our compliance experts. More information can also be found at InstituteOnline.com/Renew.

 

 

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Top Three Ways to Lose Your Illinois Managing Broker’s License

Pay Fine Here ImageJeopardizing your Illinois Managing Broker’s license could be very costly and can be prevented by following a few tips outlined below.

Failure to adequately train and supervise sponsored licensees
Most Managing Brokers know that one of their primary responsibilities and obligations is to adequately train and supervise sponsored licensees. The problem is that many fail to recognize that training is an on-going process. In the eyes of Illinois Department of Financial and Professional Regulation (IDFPR) and the Disciplinary Board, even seasoned licensees and top producers are not exempt from supervision. If a real estate licensee manages to get the attention of IDFPR, the department will come knocking on the Managing Broker’s door first. The first thing that IDFPR will be asking you is, “What kind of training and supervision does your company provide to its sponsored licensees?” IDFPR will expect you to have a detailed on-going supervision and training plan available for their review. Be ready to answer questions and explain the “who, what, when, and where” behind your plan or you might be subject to disciplinary action for failure to adequately train and supervise sponsored licensees.

Real Estate Institute’s Broker Management Continuing Education (BMCE) program provides  information that you can take back to the office to get your training and supervision program up and running. You will leave BMCE inspired with ideas to help you feel better prepared to create a training program that will satisfy IDFPR requirements and ensure your licensees are successful.

Aiding and abetting the unlicensed practice of real estate activities
This is real IDFPR disciplinary headline news … “(Unlicensed) ordered to cease and desist the unlicensed practice of real estate and assessed a civil penalty of $25,000.”

Don’t let this happen in your brokerage firm. There is a fine line between activities that require a real estate license and those that don’t.

Today, many companies are encouraging all individuals within the brokerage firm to obtain a Broker’s license.  At a minimum, companies that specialize in residential leasing are requiring all individuals to get their Leasing Agent licenses. Practicing real estate without a license is a big problem with hefty consequences and fines.
Assistants to top producers are frequently being required to get licensed. Even if an assistant’s assignment is primarily clerical in nature and does not require a license, having a license will allow your assistants to expand their level of service when servicing your clients.

Real Estate Institute offers Leasing Agent and Broker pre-licensing programs that are flexible and allow your team to start anytime. Our dedicated staff and instructors will give your employee the care and attention he/she deserves from registration all the way through to being licensed and beyond. Call our customer service team at 800-995-1700 to assess which program is right for them.

Failure to complete continuing education
With so many recent changes in Illinois license law and the continuing education (CE) requirements, it’s no surprise that there is much confusion. Most Managing Brokers require 24 credit hours of continuing education by April 30, 2015. This includes 12 hours of core and elective CE which can be completed in a self-study format plus 12 hours of interactive Broker Management CE. There are a few exceptions to the requirements. Real Estate Institute knows exactly how many hours and what type of continuing education you need. Our knowledgeable customer service team will guide you and help select the program that’s right for you.

By developing an adequate training and supervision plan for your company, ensuring that your staff has the necessary licensing to successfully do their job, and by completing your continuing education on time, you will be on the path for maintaining your Illinois Managing Broker license.  Don’t risk your business; make sure you’re prepared for anything that comes your way!  Real Estate Institute is here to support you, call with any questions on maintaining your license.

Now Available – Online Real Estate Pre-License Courses!

For individuals looking to start a career in real estate or simply become licensed to take advantage of the real estate investment opportunities, finding a pre-license school in their area offering the new state-approved broker and managing broker courses has been a challenge.  For new Illinois real estate licensees, the state has mandated a 15-hour interactive program as part of the 90-hour licensing requirement.  This interactive program must be completed in a classroom or live classroom equivalent, which means it cannot be completed via self-study. 

Real Estate Institute began offering the pre-licensing courses as soon as the salesperson license was eliminated in March.  Illinois’ first new broker licensee is one of our students!  By attending our modular classes, students have been completing the interactive class requirement in as little as 3 weeks.  The live interactive classes are offered at our school in Niles, Illinois.  While this has been convenient for those in our area, we strive to serve students outside the Chicagoland area (and even out of state)!

In addition to offering classes, Real Estate Institute is pleased to announce that we are now offering online pre-license courses!  If you have completed the self-study portion of your real estate pre-licensing program by successfully passing all the required lesson exams, you qualify to join us on June 9th, as we launch our newly offered webinar. This online course fulfills the 15-hour interactive requirement.  These interactive webinars provide the convenience of participating from home or your office. 

You will benefit from instructors who have extensive frontline real estate experience in addition to being professional trainers. You can ask the instructor questions as if you were sitting in the classroom. Your interest and attention will definitely be captured during this lively program.