What You Need to Know About Illinois Broker License Renewal in 2018

Alarm Clock_Apr 30_1 Text Line_No BkgThe Illinois Department of Financial and Professional Regulation (IDFPR) recently e-mailed Brokers, announcing that they are officially “In Renewal.” The department is now accepting online license renewal applications.

If you didn’t receive this announcement, you may need to update your contact information with the state to receive future notices. To easily update or add your e-mail address, click here.

Remember, you cannot renew your real estate license until your required education is complete. It’s important that you follow these instructions for a timely renewal.

Step 1 – Complete Continuing Education or Post-License

Illinois real estate Brokers need 12 hours of core/elective continuing education (CE) every renewal period, EXCEPT Brokers who are in their first renewal period. Brokers in their first renewal period are required to complete a 30-hour Broker Post-License program. (If you were licensed on or after February 1, 2016, you must complete Post-License.)

The current Broker renewal period began May 1, 2016, and ends April 30, 2018. If you complete CE or Post-License education with Real Estate Institute, our school reports your course completion directly to the IDFPR.

Step 2 – Submit Your New License Application

After you have completed your CE or Post-License 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 application can be completed online, printed and mailed 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. Delivery confirmation will be critical in the event of a delay in license renewal. It will likely take the IDFPR several weeks to process your application.

If you have questions about your education requirements for renewal, online resources are available: Continuing Education FAQs and Post-License FAQs. More information can also be found at InstituteOnline.com/NextSteps.

Real Estate Institute has been the local leader in Illinois real estate education for over 25 years. More Brokers choose Real Estate Institute than any other provider for their required license renewal education every season. Our team of experts is standing by to answer your questions about your requirements, our courses and the renewal process. Please don’t hesitate to contact us at 800-995-1700.

Broker Late Renewals: Your Questions Answered

IMPORTANT UPDATE: The deadline for Illinois Real Estate 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, required 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 $150 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.  However, you only have 30 days to renew online with a credit card payment.  After that, you will be required to print and mail the renewal form with a check or money order.

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.

This graphic illustrates how the fees escalate over time:

Broker Late Renewal Fee Chart v2

Continuing Education or Post-License Education:

Brokers who renew on time must complete either 12 credit hours of CE or 30 hours of post-license education before renewing their license. (If you’re not sure which one you need, read our prior article.)  The education requirements remain the same for those who complete a late renewal. So, if you miss the renewal and plan to renew sometime in May, be sure to complete your education requirement before applying for your new license. Failure to do so will result in additional fines/penalties.  

Assuming that you complete your education requirement in May 2016 and then apply for your (late) license renewal, take note that the education 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, 2018.)

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.

Compliance Considerations:

Late license renewal is no big deal if you are not currently engaged in business that requires you to hold a real estate license. If you just cringed, here’s what you should know:

  • 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!  You should immediately notify your sponsoring broker that your license has expired, so that they may take appropriate steps to address the situation.
  • If you are also a REALTOR®, 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 the right education program can be tricky. Real Estate Institute will continue offering our popular 12-hour core/elective CE program and the 30-hour Broker post-license education program that’s required for new licensees.

Call 800-995-1700 if you have any questions about the education required for late renewal.

Quickest Route for Brokers to Beat the April 30th Deadline

Quickest_Route-road-with-motion-cloudsIt’s the second half of April. For Real Estate Brokers in the state of Illinois who have yet to renew their licenses, it can cause panic. But, it doesn’t have to. Follow the two-step process below for a quick and easy way to maintain your license.

Step 1 – Complete Your Education.
Brokers in Illinois are required to completed education before renewing their license. The type of education is dependent upon what date your license was issued. Find out the original issue date of your license by clicking here.

  • Brokers whose licenses were issued before 2/1/14 require 12 hours of core and elective continuing education. While classes are permitted, self-study, is the fastest option. Both class and self-study options require a proctored exam. Real Estate Institute offers convenient continuing education options.
  • Brokers whose licenses were issued between 2/1/14 – 1/31/16 require post-license education. Half of this 30 credit-hour requirement must include live instruction, such as a class or webinar. With limited time remaining, many Brokers choose webinars, which offer more flexible attendance options – review your post-license education options.
  • Brokers whose licenses were issued after 1/31/16 won’t have to renew until 2018, so no education is required at this time. These Brokers should complete their post-license education requirement by 4/30/18.

Step 2 – Renew Your License.
Most Brokers know that they must pay the renewal fee to the IDFPR, but are unsure of the exact process. Read the following for specific details about the renewal process.

  • After completing your required education, you may renew the license. A sponsor and a fee of $150 are also required to renew.
  • The IDFPR strongly encourages Brokers to renew online. You may have received a P.I.N. via e-mail from the IDFPR. However, it’s not needed to renew. The license number, plus one of the following is needed to renew: the social security number, date of birth or P.I.N. A paper-based renewal form is also available with this information.
  • Begin the renewal process by clicking here.

Real Estate Institute has been a leader in real estate education for over 20 years. Our team of experts is standing by to answer your questions about your requirements, our courses and the renewal process. Please don’t hesitate to contact us at 800-995-1700.

Identifying Value in a Negotiation

Good NegotiatiorAll negotiations involve multiple “value” elements. The key to success is to first identify the value elements on each side and then “trade” value elements to reach agreement.

Easier said than done! Why? Because most negotiators don’t spend enough time identifying and truly understanding the value elements. The trading part is easy!

A home buyer and seller were negotiating and after lowering the price somewhat, the seller finally said, “I won’t go any lower.” The buyer asked his agent to find out why the seller wouldn’t go any lower. After several conversations with the listing agent, the reason was uncovered. The seller wouldn’t go any lower because he wanted “bragging rights” for his neighborhood – meaning he wanted to be able to say he had sold at the highest price to date in his neighborhood!

This “value” element was very important to the seller. In a negotiation, you can trade or exchange items of equal value. Understanding how valuable something is becomes a key objective of the skilled negotiator so that equal value can be obtained in the exchange. If the seller truly values his bragging rights (while still being realistic about the true value of the property), then the buyer should ask for something of “equal” value from the seller. For example “My buyer will pay your seller’s price if your seller agrees to a 15-day close.”

You have probably heard that the best time to buy a car is at the end of the month. This is usually because the car salesperson and/or dealer is trying to reach a goal or quota that carries some type of bonus from the manufacturer. Car dealers may even “lose” money on an individual sale because the bonus will more than cover the loss. So if your purchase happens to be key to achieving the bonus, you can negotiate really good terms for yourself!

So how can you identify the other side’s value elements in a negotiation? Try these 3 approaches:

  1. Ask! But first, tell them in general what is important to your side.
    Role modeling the behavior you want from the other side increases the odds that you will get the same behavior in return. As a buyer’s agent you might say to the listing agent, “From my buyer’s perspective, price, closing costs support, and personal property (refrigerator, washer, and dryer) are very important in this deal. What is most important to your seller?” If the listing agent shares something like, “Well, for my seller, price, closing date, and your buyer’s qualifications are key”, then you have a dialogue started where you can continue to exchange information and ask questions to determine the key elements of value.
  2. What if the other side won’t give you any information?
    Suppose the listing agent simply says, “Just submit your offer and we’ll respond based on that.” Then you might try the “self-interest” approach. The buyer’s agent could say something like, “My buyer would like to submit the very best offer to your seller. The more specific you can be about what is really important to your seller, the better the chances of my buyer meeting your seller’s needs.” In essence, you are trying to educate the other side about why it is in their self-interest to share important information – it increases the odds of getting what you want.
  3. “Either/Or” Approach.
    If the other side still won’t open up, try asking simple “either/or” questions to get an indication of what is important. “Would your seller prefer a quicker or longer closing date?” “Would your seller prefer a clean offer or would they entertain an offer with closing cost support for the buyer?” “Would your seller prefer to pay the buyer to do any necessary repairs or does your seller want to handle the repairs on their own?” By narrowing the choices you give the other side, you can focus in on the true value elements.

Sharing your value elements and understanding the other side’s value elements helps establish the basis for a win-win outcome.

Learn more about negotiation skills at Real Estate Institute.

This article was  originally published in an August, 15, 2014 blog post by Real Estate Negotiation Institute.

What Every Managing Broker Needs to Know About Their 2013 Renewal

Do you have a Managing Broker (471) license? Have you started thinking about your 2013 renewal requirements?  If so, you may be finding it difficult to determine the education requirements.  How much CE do you really need? 12 hours? 15 hours? 18 hours? What about Broker Management CE?

So how do you figure it out? We checked in with the IDFPR to be sure.  We confirmed that these are the requirements.

 Education requirements for your 2013 Managing Broker license renewal:

How did you
become a
Managing Broker?

& Elective

Broker Management Requirement

Deadline for education completion and license renewal

Passed the Broker to Managing Broker Proficiency Exam

18 hours*

12 hours
of live instruction

April 30, 2013

Completed the 45-hour Broker to Managing Broker Transition Course

18 hours*

for 2013 renewal

April 30, 2013

Initial applicant through
45-hour Managing Broker Pre-License course and state exam

12 hours*

12 hours
of live instruction

April 30, 2013

* Any continuing education credit earned after April 30, 2010, can be counted toward your 2013 continuing education requirement.

Now that you know what your education requirements are, you’re ready to get started.  Let us know if we can help. More information is available at the following links:

Real Estate Institute: http://www.instituteonline.com/Illinois-Real-Estate-Continuing-Education-Managing-Broker.asp

 Illinois Department of Financial and Professional Regulation: http://www.idfpr.com/dpr/re/BrokerMgBrokerTransitionChart.pdf

Will HARP 2.0 Really Stabilize the Housing Market?

New guidelines for the Home Affordable Refinance Program (HARP) were released by Fannie Mae and Freddie Mac on Tuesday.  Time will tell whether the changes will truly improve the housing market.  Real Estate Institute’s mortgage education director shared his thoughts with Bills.com.  According to Peter, “Although there is still a good deal of uncertainty surrounding the specifics of how the expanded HARP program will be implemented at the individual lender level, the November 15 announcements from Fannie and Freddie do provide a source of encouragement for the equity challenged segment of the market.” Read the full article and let us know what you think.

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.

2011 Real Estate Educator of the Year Named

On Friday, May 20, the Association of Illinois Real Estate Educators (AIREE) presented its highest honor – the 2011 Real Estate Educator of the Year award – to Scott B. Toban. The association recognizes Scott’s numerous achievements and contributions to the real estate community in Illinois.

Educator of the Year - Scott Toban

Since focusing his career on education in 2004 as a Principal at the Real Estate Institute, Scott has established himself as a leading Illinois real estate educator.  Scott’s 16 years as a practicing lawyer and his unique experiences in a variety of professional settings have strengthened his abilities as a dynamic speaker and teacher of various education topics, including real estate law, brokerage practice, ethics and professional responsibility.

Immediately prior to joining the Real Estate Institute, Scott was a partner of the international law firm Mayer, Brown, Rowe & Maw LLP (now, Mayer Brown LLP).  Scott’s legal practice has concentrated on real estate, finance and professional regulation.  Scott earned his Juris Doctor from the University of Chicago Law School in 1995, and he graduated with highest honors from the University of Illinois at Urbana-Champaign with a Bachelors of Science in Accountancy in 1992.  He is a Registered Certified Public Accountant in Illinois. 

Recognizing Scott’s knowledge and passion for the real estate industry from multiple perspectives (as a lawyer, real estate broker and educator), Governor Quinn appointed Scott as a member of the Illinois Real Estate Administration and Disciplinary Board and the Illinois Real Estate Education Advisory Council in 2010.  Scott has already made a key impact on Illinois real estate brokerage by contributing revisions to the recently adopted Administrative Rules implementing the Real Estate License Act of 2000.

This is not the Real Estate Institute’s first Educator of the Year. Real Estate Institute is the only professional education provider in Illinois to have two generations of award recipients. In 2002, Alan Toban, Scott’s father, was recognized for his achievements as an accomplished author of numerous real estate, mortgage and finance books, as well as his 30 years of experience in real estate and finance.

Bump in the Road for LO Compensation Rule

Last Friday, February 18, the National Association of Mortgage Brokers (NAMB) announced its intention to file suit against the Federal Reserve Board seeking an injunction on the Loan Originator Compensation Rule that is scheduled to take effect on April 1st.  Whether this is simply a bump in the road, or a complete road block is to be determined.  Further details are available at www.namb.org.

Real Estate Licensees Required to “Step Up or Step Out”

The hot topic for Illinois real estate licensees is the transition that will take place beginning in May of 2011. Earlier this month, the Association of Illinois Real Estate Educators (AIREE) held its 2010 Winter Conference at DePaul University Conference Center in the Chicago Loop. The conference was attended by over 100 educators from throughout the state.

Changes to the Illinois Real Estate License Act signed into law by Governor Quinn in 2009 will eliminate the real estate salesperson license category. Those individuals who currently hold real estate salesperson licenses will be required to take additional education and apply for what will be a new category of broker license. Real estate salespersons who don’t transition to the new license will lose their license and be forced to stop practicing. During this same transition period, individuals holding a broker license under the current standards must either take additional education or give up the privilege of self-managing and managing others.

Scott Toban of the Real Estate Institute addressed the conference, explaining the new licensing standards. He explained that each licensee has a one-time option to pass a proficiency examination demonstrating that they don’t need the additional education. Scott also spoke about the new increased education requirements for initial licensure and entry into the real estate business in the state of Illinois. Scott, by appointment of the governor, serves on the Illinois Real Estate Administration and Disciplinary Board and Real Estate Education Advisory Council.

Alan Toban, founder of the Real Estate Institute, addressed the conference to explain the new way training must be delivered. Alan explained, “Licensees will no longer be asked to merely memorize dates or lists of rules. The new law insists students receive training that will prepare them for real-life situations affecting the public they serve.” Alan further explained, “Under the new law, a consumer of real estate services is to receive written notice from a licensee declaring whose interests the licensee is actually protecting.”