• CHART: Broker transitioning to managing broker (pdf)

Anyone who holds a broker license in good standing 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. If you are licensed as a broker on April 30, 2011 you have two options to transition to the managing broker license.

1. Take the proficiency exam by March 15, 2012 (for which there are no retakes) and pass that exam

OR

2. Take a 45-hour transition course and pass the related exam (for which there are retakes). 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, as long as you leave yourself time.

Generally, anyone who transitions under the proficiency exam option for the managing broker's license will be required to complete 18 hours of regular CE during the two-year pre-renewal period and also a 12-hour broker management CE course that should be available by May 1, 2012. These hours of CE will be required for anyone obtaining the managing broker license through the proficiency exam when they renew on April 30, 2013.

Anyone obtaining the managing broker license through the 45-hour transition course or through the education and licensing process will only need the 18 hours of regular CE to renew on April 30, 2013.*

*The rules currently on file call for a April 30, 2013 renewal date for managing broker licensees: they presume that all broker licensees have 120 hours of pre-license credits (no matter how their original broker license was obtained); and, any duly-licensed broker in good standing as of April 30, 2011 can avail themselves of the transition options to obtain the managing broker license.

Q: Must a partner hold a “managing broker” or “broker” license?

Any partner who engages in real estate brokerage business in a licensed real estate partnership must be a managing broker or broker. In an LLP or LLC, any partners or members who engage in real estate brokerage must hold a managing broker or broker’s license. No salesperson, leasing agent or group of salespersons or leasing agents may own more than 49% of a licensed real estate company. So, after April 30, 2012, this limit will apply to leasing agents only because the salesperson’s license goes away. Also note that if a licensed real estate brokerage entity is owned by broker licensee(s), there must be a managing broker licensee in place to manage the real estate brokerage business of that entity. Also, if the licensed real estate brokerage is a sole proprietor, that individual must hold a managing broker’s license. If the entity is owned by unlicensed people, the entity must hire a managing broker and sign an affidavit on non-participation.

Q: Are attorneys still exempt?
While active Illinois attorneys do not have to take any education to receive or maintain their licenses, they do still need to obtain a real estate license to practice real estate brokerage by successfully passing the required exam for the license they are seeking. This will include the need to transition from salesperson to broker or broker to managing broker. If an attorney/real estate licensee runs a real estate business as a sole proprietor, he/she must have a managing broker license by April 30, 2012.

Q: What are the managing broker’s license requirements?
Effective May 1, 2011 for applicants who do not use or are otherwise unable to use transition provisions to obtain the managing broker license, the requirements are:

• 21 years old
• Good moral character
• Need to be licensed at least 2 out of the 3 prior years as salesperson or broker
• High school degree or its equivalent
• 165 hours of pre-license education
  • 120 are broker pre-license hours
  • 45 more in the year before applying for managing broker’s license.
  • Focused on brokerage administration and management and 15 in classroom or other interactive delivery method.
• Take and pass test
• Application with sponsor card and pay fees
• Illinois attorneys in good standing are exempt from the pre-license education requirements). Still need a license to act as a broker or managing broker, and must have managing broker license to self-sponsor as sole proprietor.

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