Effective Jan. 1, 2025, there will be some changes to the Illinois Real Estate License Act (RELA). Here is your list and key takeaways to help you educate your offices.

Here are the changes related to the requirement for written brokerage agreements.

• The definition of brokerage agreement is changed to mean a written agreement.
  • The brokerage agreement can be exclusive or non-exclusive (non-exclusive allows the client to work with more than one brokerage at the same time).
    • If the agreement is a non-exclusive one, it is sensible to have a provision prohibiting the signing of an exclusive agreement that covers the same or similar timeframe. (This is not a RELA change but a best practice suggestion)
  • A written agreement is required when you begin working with a consumer as their designated agent.
    • Rules will clarify that the agreement must be signed when beginning to work with a client but no later than prior to showing or touring properties.
  • The requirement for a written brokerage agreement applies to all forms of real estate brokerage
    • Sales
    • Rentals
    • Property Management
    • Commercial
  • Failure to have a written brokerage agreement has been added to the list of possible disciplinary actions.

Related to managing broker licensing, the pre-license exam will be limited to Illinois specific real estate brokerage laws.

Business Practices changes to RELA include:

• All brokers, whether on the seller’s side or the buyer’s side will need to disclose all amounts of compensation they charge their own clients and any amounts they might pay to other cooperating brokers in transactions.
• Regarding written employment or independent contractor agreements, if an agreement states the relationship is that of independent contractor, then that IS the relationship for purposes of brokerage activities.

RELA provisions about continuing education have been amended to include 2 hours of mandatory fair housing continuing education in the 6-hour core curriculum. (The core curriculum changes from 4 to 6 hours, but the total hours required for each 2-year cycle remains 12 hours; 6 core and 6 elective.)

• The implementation of these requirements will require some time before they go into effect.
• Your Illinois REALTORS® will work with the Division of Real Estate and keep members informed on timelines for this new requirement.

The Division of Real Estate is designing a new method of licensure for out of state licensees seeking Illinois real estate licenses.

• Reciprocal agreements limited to a few states will be phased out, in favor of an endorsement program for out-of-state licensees seeking Illinois licensure.
  • This endorsement program will require successful completion of a course and passing an exam on Illinois specific real estate laws.
  • The Division of Real Estate is developing the course work, so there will be a transition period for this new process.

Citations have changed the time for payment of a fine from 60 days to 30 days.

Stay tuned to all Illinois REALTORS® channels for more information as the effective date nears for the RELA changes.