New License Categories and Transition Rules

Transition Period Runs May 1, 2011 through April 30, 2012

By Steve Bochenek, IAR Legal Counsel

As indicated previously, much of the attention with RELA Rewrite has focused on the license categories of broker and managing broker and the transition to those categories. First, you need to be aware that the broker renewal as of April 30, 2010 is the same process and has the same requirements as the broker renewal for April 30, 2008. This means that all brokers will need to complete the six-hour broker management CE course in order to renew their license as of April 30, 2010. This is the case even if you are not a managing broker. Please review that matrix if you have any questions.

Also in this edition of the D.R. Legal News is a matrix which contains guidelines with regards to the transition process and renewal on April 30, 2012. It is highly recommended that you review that matrix as it contains a good outline of the provisions dealing with the transition and renewal in 2012. For those of you who have sponsored licensees who are salespeople, there will be no renewal as of April 30, 2011. Those salespersons’ licenses will be extended until April 30, 2012, at which time those salespersons’ licenses will expire. This means that those sponsored licensees who are salespeople will have three years between renewals. For that reason, there will be a general requirement of 18 hours of CE in order to renew on April 30, 2012 unless the licensee completes the 30 hour transition course and passes the related exam.

The proficiency exams and transition courses will not be available to take until the transition period of May 1, 2011 through April 30, 2012. It is not known at this time what the fees or costs will be in connection with the transition. What is known is that if you are a salesperson as of April 30, 2011 that you will have one year to transition to the broker category. This will require you to take a proficiency exam and pass the exam (sorry there are no retakes on the proficiency exams) or complete a 30-hour course and pass the related exam (for which there are retakes). A salesperson can also try to pass the proficiency exam and, if unsuccessful, can then proceed to take the 30-hour transition course and related exam.

All brokers as of April 30, 2011 who want to remain as a broker and not obtain a managing broker license will just need to complete 12 hours of CE to renew their broker license at April 30, 2012.

There will be no transition requirement and no broker management CE will be necessary at April
30, 2012 to renew the broker license. Those brokers who are designated with the Real Estate Division of the Illinois Department of Financial and Professional Regulation (IDFPR) as of April 30, 2011 will have a one-year period to transition to the managing broker license. That transition is the same period as for salespeople which is May 1, 2011 through April 30, 2012. However, in order to be able to use this transition you need to be registered with the Real Estate Division as a managing broker on April 30, 2011. If you are registered with the Real Estate Division as a managing broker on April 30, 2011 you will have two options to transition.

1. Take the proficiency exam (for which there are no retakes) and pass that exam or to take a 45-hour transition course and pass the related exam (for which there are retakes). Just as for salespeople you can try the proficiency exam first and if unsuccessful on that exam you can take the 45-hour transition course, pass the exam and still transition to the managing broker license.

2. Brokers who are not registered with the Real Estate Division as a managing broker as of April 30, 2011 but whom—after that date—want to obtain a managing broker’s license will not be able to transition. These individuals will need to take the necessary coursework and pass the licensing exam to obtain the managing broker’s license.

Generally, anyone holding the managing broker’s license will be required to complete 12 hours of regular CE during the two-year pre-renewal period and also a 12-hour broker management CE course. These 24 hours of CE will be required for anyone obtaining the managing broker license through the proficiency exam when they renew on April 30, 2012. Anyone obtaining the managing broker license through the 45-hour transition course or through the education and licensing process will only need the 12 hours of regular CE to renew on April 30, 2012.