March 2013 | D.R. Legal News
Common IDFPR Compliance Issues
The six topics below are common compliance issues from the Illinois Department of Financial and Professional Regulation (IDFPR) with statutory citations for your reference. These are intended as examples of problem areas and are not all-encompassing.
1. Licensees (and company) properly licensed. Statutory References: Act: Sections 5-15; 5-40; 20-20(a)(6) & 20-22; Rules: Section 1450.110
2. Written employment agreement with all sponsored licensees. Statutory References: Act: Section 10-20(c); Rules: Section 1450.735
3. Brokerage Agreements/Listing Agreements – Includes defined termination date without automatic extension. Statutory References: Act: 10-25; Rules: Section 1450.770(d)
4. All advertising is accurate and truthful. Statutory References: Act: Sections 10-30; 10-35; 20-20(a)(9)&(10); Rules: Sections 1450.715 & 1450.720
5. Dual agency – Prior informed written consent from buyer/tenant. Statutory References Act: Section 15-45; Rules: Section 1450.820
6. Escrow – Reconciliation compares bank statement to journal and ledgers. Statutory Reference: Rules: Section 1450.750.
Note:The Illinois Association of REALTORS®has been in conversations with the Illinois Department of Financial and Professional Regulation (IDFPR) regarding an educational tool for Managing Brokers on compliance issues. The IDFPR Compliance Examination guide is expected to be published in spring 2013.