Illinois Residential Leasing Agent

Key Concepts

Definitions (225 ILCS 454/1-10) - "Escrow moneys" means all moneys, promissory notes, or any other type or manner of legal tender or financial consideration deposited with any person for the benefit of the parties to the transaction; it excludes security deposits where the person holding the deposit is also the sole owner of the property being leased. - "Client" = a person being represented by a licensee; "customer" = a consumer who is not being represented by the licensee; "consumer" = a person or entity seeking or receiving licensed activities. - "Confidential information" = information obtained from a client during a brokerage agreement that was made confidential by written request/instruction, deals with the client's negotiating position, or whose disclosure could materially harm that position — and it does not include material information about the physical condition of the property. - "Brokerage agreement": all brokerage agreements shall be in writing and may be exclusive or non-exclusive (also Section 15-50(a)). - Earnest money constitutes escrow moneys whether in personal checks, cashier's checks, money orders, cash, or any other form of legal tender, including legally recognized cryptocurrencies (Section 1450.750(a)(3)).

Scope of the residential leasing agent license (Section 5-5) - Limited to leasing or renting residential real property, attempting/offering/negotiating to lease or rent it, or supervising the collection of rent for residential real property. - Under 5-5(b), an RLA may not engage in any activity requiring a broker's license — selling, offering for sale, negotiating for sale, listing or showing for sale, or referring for sale or commercial lease. Supervision by a managing broker does not expand that scope. - 5-5(d)/Section 1450.240: unlicensed leasing activity is allowed for 120 consecutive days under a sponsoring broker who has notified the Department, with pre-license course enrollment no later than 60 days after beginning; the permit may be obtained only once. - 15 hours of approved instruction for licensure (5-10(a)(5)); CE must include fair housing/human rights, advertising and marketing, leases, applications, credit reports and criminal history, handling of funds, owner-tenant relationships and laws, and environmental issues (5-10(d)).

Key Concepts

Illinois protected classes (broader than federal). Under 68 Ill. Admin. Code 1450.710(a), no licensee shall enter into a listing agreement that prohibits the sale or rental of real estate to any person because of race, color, religion, national origin, sex, ancestry, age, marital status, physical or mental disability, familial status, pregnancy, sexual orientation (including gender identity), military status, unfavorable discharge from military service, order of protection status, immigration status, source of income, arrest record, or any other class protected by Article 3 of the Illinois Human Rights Act. 1450.710(b) adds that no licensee shall perform licensed activities with respect to any real estate for which disposition is prohibited based on a protected class.

Brokerage agreement language. 68 Ill. Admin. Code 1450.770(k) requires each brokerage agreement to clearly state that it is illegal for either the owner or any licensee to refuse to show, display, lease, or sell to any person because of any class protected by Article 3 of the Illinois Human Rights Act.

Federal classes. The Federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968, as amended) protects seven classes: race, color, religion, national origin, sex, familial status, and disability (handicap). Sexual orientation, source of income, arrest record, and immigration status are not among the seven enumerated federal classes, though HUD guidance following Bostock v. Clayton County (2020) treats sexual orientation discrimination as sex discrimination.

Earlier civil rights statutes. The Civil Rights Act of 1866 (42 USC 1982) bars all racial discrimination in property transactions and has no exemptions — unlike the 1968 Act, which has limited exemptions. Title VI of the Civil Rights Act of 1964 (42 USC 2000d) bars discrimination based on race, color, or national origin in programs receiving federal financial assistance.

Exemptions and enforcement. The "Mrs. Murphy" exemption (42 USC 3603(b)) covers owner-occupied buildings with four or fewer units where no discriminatory advertising is used and no real estate broker is employed; it does not shield licensed professionals. Complaints may be filed with HUD within one year of the alleged act (42 USC 3610).

Key Concepts

Purpose, authority, administration - The Act "shall supersede the Real Estate License Act of 1983 repealed by this Act" (225 ILCS 454/1-1). - Legislative intent: "to evaluate the competency of persons engaged in the real estate profession and to regulate their activities for the protection of the public" (225 ILCS 454/1-5). - "Department" means the Department of Financial and Professional Regulation; it administers and enforces the Act. "Board" means the Real Estate Administration and Disciplinary Board of the Department, which recommends to the Department on matters such as education requirements and course content (1-10; 5-10(c)).

Leasing activities and scope - The residential leasing agent license is a limited scope license for persons who wish to engage only in leasing residential real property (5-5(a)). - Permitted: "supervising the collection, offer, attempt, or agreement to collect rent for the use of residential real property." Prohibited: any activity requiring a broker's license — selling, offering, negotiating, listing or showing for sale, or referring for sale or commercial lease (5-5(b)). - A licensed managing broker or broker is not required to obtain a leasing agent license to perform leasing activities (5-5(b)). - 120-day provision (5-5(d)): unlicensed residential leasing for up to 120 consecutive days if (i) under a sponsoring broker's supervision, (ii) the sponsoring broker notified the Department, (iii) the person enrolled in the pre-license course no later than 60 days after beginning, and (iv) education, exam, and fee requirements are met within 120 days.

Exemptions (Section 5-20) - Owner/lessor performing broker-defined activities only as to their own property (5-20(1)(A)). - Resident manager: resides on the premises, it is the primary residence, and is engaged in leasing that property (5-20(4)). - Resident lessee: no more than 3 referrals in any 12-month period, compensation no more than $5,000 or 2 months' rent, whichever is less, and referral only — no showing units, discussing lease terms, or negotiating (5-20(10)). - Hotel operator registered with the Illinois Department of Revenue paying tax under the Hotel Operators' Occupation Tax Act, renting rooms not more than 30 consecutive days and not more than 60 days in a calendar year (5-20(15)).