Illinois · Real Estate Study Guide · Part 2 · Chapters 24–37

Sec. 15-60. Vicarious liability +13Illinois · Real Estate · English

16 topics · Updated 2026-09-17

24.Sec. 15-60. Vicarious liability

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Consumer Not Vicariously Liable

agency

A consumer is not vicariously liable for the acts or omissions of a licensee in providing licensed activities for or on behalf of the consumer.

Key Rules
  • A consumer is not vicariously liable for a licensee's acts or omissions
  • This protection applies to licensed activities performed for or on behalf of the consumer

25.Sec. 15-65. Regulatory enforcement

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Department Regulatory Authority

licensing

Nothing in Article 15 limits the Department's regulation of licensees under other Articles of the Act and its substantive rules. The Department is authorized to adopt any rules necessary for the implementation and enforcement of Article 15.

Key Rules
  • Article 15 does not limit Department regulation under other Articles of the Act
  • The Department may adopt rules necessary to implement and enforce Article 15

26.Sec. 20-62 & 20-63. Record, Subpoenas, Depositions, Oaths

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Hearing Records and Subpoena Powers

licensing

The Department must preserve a record of all formal hearing proceedings at its own expense. It has power to subpoena documents and witnesses and take testimony orally or by deposition, with the same fees and manner as civil cases. The Secretary, hearing officer, and Board members may administer oaths.

Key Rules
  • The Department shall preserve, at its expense, a record of all formal hearing proceedings
  • The Department may subpoena documents and witnesses and take testimony orally or by deposition as in civil cases
  • The Secretary, hearing officer, and Board members may administer oaths to witnesses

27.Sec. 15-70. Actions for damages

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Damages and Statute of Limitations

agency

In actions under Article 15, the court may in its discretion award only actual damages and court costs, or grant injunctive relief. Actions are barred unless commenced within 2 years after the person knew or should have known of the act/omission, and in no event more than 5 years after the act/omission. For minors or persons under legal disability, the limitations period does not begin until the disability is removed.

Key Rules
  • Only actual damages and court costs, or injunctive relief, may be awarded
  • Actions must be commenced within 2 years of discovery, never more than 5 years after the act/omission
  • Limitations period tolls for minors under 18 or persons under legal disability until removed

28.Sec. 20-64. Board; Rehearing

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Board Report and Motion for Rehearing

licensing

After a hearing, the Board's report is served on the applicant/licensee. Within 20 days after service, the party may file a written motion for rehearing specifying grounds. If a transcript is ordered and paid for within that time, the 20-day period begins upon delivery of the transcript.

Key Rules
  • A motion for rehearing must be filed in writing within 20 days after service of the Board's report and specify grounds
  • If a transcript is ordered and paid for within the filing period, the 20-day period begins upon transcript delivery
  • Upon denial of rehearing, the Secretary may enter an order per the Board's recommendations (except as provided in Section 20-72)

29.Sec. 15-75. Exclusive brokerage agreements

📝

Exclusive Brokerage Agreement Requirements

contracts

All exclusive brokerage agreements must be in writing and specify that the sponsoring broker, through sponsored licensees, provides at minimum: accepting delivery and presenting offers/counteroffers; assisting in developing, communicating, negotiating, and presenting offers until an agreement is signed and contingencies satisfied/waived; and answering the client's questions about offers, counteroffers, notices, and contingencies.

Key Rules
  • All exclusive brokerage agreements must be in writing
  • Must specify minimum required services including presenting offers and assisting in negotiations
  • Must include answering client questions regarding offers, counteroffers, notices, and contingencies

30.Sec. 20-65. Temporary Suspension

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Emergency Temporary Suspension

licensing

The Secretary may temporarily suspend a license without a hearing, simultaneously with instituting hearing proceedings, if evidence indicates the public interest, safety, or welfare imperatively requires emergency action. A hearing must commence within 30 days of the suspension.

Key Rules
  • The Secretary may temporarily suspend a license without a hearing when the public interest, safety, or welfare imperatively requires emergency action
  • A hearing must commence within 30 days after the temporary suspension
  • The suspension remains in effect if the licensee seeks a continuance of the hearing

31.Sec. 20-66 & 20-67. Hearing Officer; Prima Facie Proof

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Hearing Officer and Order Authority

licensing

The Secretary may appoint any Illinois-licensed attorney as hearing officer with full authority to conduct hearings and report findings to the Board. The Board reviews and reports to the Secretary. The Secretary may issue an order contravening the Board's or hearing officer's recommendation. A signed sealed order is prima facie proof of its validity.

Key Rules
  • The Secretary may appoint any Illinois-licensed attorney as a hearing officer with full authority to conduct the hearing
  • If the Secretary disagrees with the Board's or hearing officer's recommendation, the Secretary may issue an order in contravention
  • A sealed order signed by the Secretary is prima facie proof of signature genuineness and proper qualification

32.Sec. 20-69 & 20-72. Restoration and Rehearing

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License Restoration and Secretary Rehearing

licensing

After a completed term of suspension, revocation, or probation, the Department may restore a license upon written Board recommendation, unless the Board finds restoration is not in the public interest. The Secretary may order a rehearing if substantial justice was not done.

Key Rules
  • A license may be restored after completing suspension/revocation/probation upon written Board recommendation
  • Restoration may be denied if the Board determines it is not in the public interest
  • The Secretary may order a rehearing if substantial justice has not been done

33.Sec. 20-73 & 20-75. Certification of Record and Judicial Review

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Judicial Review and Venue

licensing

All final administrative decisions are subject to judicial review under the Administrative Review Law. Review proceedings are commenced in the circuit court where the party resides; nonresidents use Sangamon or Cook County. A plaintiff must file a receipt for the record certification costs or the action may be dismissed.

Key Rules
  • Final administrative decisions are subject to judicial review under the Administrative Review Law
  • Venue is the circuit court where the party resides, or Sangamon/Cook County for nonresidents
  • The plaintiff must file a receipt for record certification costs with the complaint or the action may be dismissed

34.Sec. 20-82. Fines and Penalties; Funds

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Deposit of Fines and Penalties

taxes

All fines and penalties collected under Sections 20-20, 20-20.1, and otherwise under the Act are deposited into the Real Estate License Administration Fund and may be transferred to the Real Estate Recovery Fund per Section 25-35.

Key Rules
  • Fines and penalties are deposited in the Real Estate License Administration Fund
  • Funds may be transferred to the Real Estate Recovery Fund under Section 25-35 authority

35.Sec. 20-85 & 20-90. Real Estate Recovery Fund

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Recovery from the Real Estate Recovery Fund

escrow

A person aggrieved by a licensee's (or unlicensed employee's) fraud, misrepresentation, embezzlement, or deceit resulting in loss of actual cash money (not market value losses) may recover from the Fund by post-judgment court order, up to limits set by rule, plus costs and attorney's fees but not interest. The aggrieved person must first obtain a valid judgment.

Key Rules
  • Recovery is limited to loss of actual cash money, not losses in market value
  • Recovery requires a valid judgment and post-judgment court order per Section 20-90
  • Maximum liability against the Fund per act, per licensee, and per transaction is set by rule
  • The post-judgment order may include costs of suit and attorney's fees but not interest on the judgment
📌

Procedure and Deadlines for Fund Claims

escrow

An action must be started within 2 years of when the aggrieved person knew or should have known of the acts. All responsible licensees/employees must be named as defendants or recovery is barred. Written notice to the Department is required within 30 days of judgment, with 20 days notice of supplementary proceedings. Claimant must not be a spouse of the debtor and must satisfy all requirements at an evidentiary hearing.

Key Rules
  • An action must be commenced within 2 years after the aggrieved person knew or should have known of the acts
  • All responsible licensees, employees, or independent contractors must be named as defendants or recovery is precluded
  • The aggrieved person must give written notice to the Department within 30 days of judgment entry
  • The claimant cannot be a spouse of the debtor or the personal representative of such spouse
📌

Automatic Revocation Upon Fund Payment

escrow

If the Department pays from the Fund to satisfy a claim/judgment against a licensee, the license is automatically revoked upon issuance of the post-judgment order. No restoration is heard until full repayment plus interest is made. Bankruptcy does not relieve these obligations. The Department is subrogated to the judgment creditor's rights.

Key Rules
  • A payment from the Fund on a licensee's account results in automatic revocation of that license upon the post-judgment order
  • No restoration petition is heard until full repayment plus interest (Section 12-109 rate) is made
  • A discharge in bankruptcy does not relieve the person from these penalties and disabilities
  • The Department is subrogated to the judgment creditor's rights and the creditor must assign the judgment

36.Sec. 20-110 & 20-115. Limits on Actions

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Statute of Limitations on Department Action

licensing

No Department action for a violation may be commenced more than 5 years after the alleged violation occurred, except where an initial license application contained false or misleading information. Recovery Fund provisions do not limit the Department's separate disciplinary authority.

Key Rules
  • Department action must be commenced within 5 years after the occurrence of the alleged violation
  • The 5-year limit does not apply where an initial application contained false or misleading information
  • Repayment to the Recovery Fund does not nullify or modify other disciplinary proceedings

37.Sec. 20-125. No Private Right of Action

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No Private Right of Action

licensing

Except as expressly provided in the Act, nothing grants any person a private right of action for damages or to enforce the Act or its rules.

Key Rules
  • The Act does not grant a private right of action for damages except as expressly provided
  • No private right exists to enforce the Act or its rules except as expressly provided

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