Many license law questions will be answered at DFPR’s website.

If you have legal questions and are a member of the Illinois REALTORS, you may use the IAR Legal Hotline by calling Betsy Urbance at 800-952-0578 (9 am- 2:30 pm).  You may also email her at

Remember that every case is a little different. You may want to consider asking for an "advisory letter" from DFPR or seek your own legal council (always a good idea!) .

The following are recent questions asked in class that might be on interest to you, or needed additional research:


Is is allowable to use "Clairemont Team Realtors" as a name for my team or as a website URL?

Answer from NAR:

"Clairemont Team Realtors" is not permitted, but "Team Clairemont Realtors" would be OK. The rule is that members can use the term Realtor adjacent to their name or the name of the brokerage business.  Since Clairemont is their name, they can use "Team Clairemont REALTORS".

There is a company in my area that will put "virtual furniture" in photos and virtual tours. Would this be legal?

This could be considered misleading, so it is a good idea to add language to the photos to explain that this home is virtually staged and that it is vacant or not in the condition shown in the pictures. It might also not pass the "true picture" test when it comes to advertising guidelines under the law as well as the Code of Ethics.

Is it ok to have a website named ""?

Based on the new case interpretation from NAR, regarding Standards of Practice 12-10 and 12-12, the answer would be "no". A URL or domain name should not contain "MLS", unless that is part of the real estate company's name. It is considered misleading, as the public might assume it is an official website for a local MLS.

Would an email address, such as "" be unethical, based on the new Code of Ethics case interpretation?

There is no definitive answer here, according to NAR as arrticle 12 does not specifically reference email addresses, however it does mandate a "true picture" in all representations. It would probably be a good idea NOT to use it.


My company name is "Realty Connections".   Is putting "" in an ad sufficient to cover me for showing the company name in said ad?

According to DFPR, the answer is "NO"

A licensee, who wishes to do some "flipping" wants to advertise "I buy homes". This venture is not in conjunction with the sponsoring broker- it is done on his own. Would the advertisement require disclosure that he is a licensee?

Yes! There would need to be some sort of disclosure of the licensee's status. Refer to section 10-30 c-2-B of License Law

Can I put a "" bumper sticker on the back of my car to advertise my website, without using my broker's name?C

According to my sources at DFPR, this would probably be ok, as long as there is no indication that he is offering real estate services. However, remember that when licensees engage in practices that are new, on the edge, or provocative, it often draws the attention and scrutiny of their colleagues. Thus, complaints may be filed, although unfounded. For those reasons, many may opt to take the path of least resistance and include the sponsoring broker's business name.


If a transaction falls through based on an inspection, are the seller and listing agent required to reveal those defects to a subsequent buyer?

Yes. The sellers should adjust the seller disclosure sheet, unless they have the problems repaired.
If the problems are NOT repaired, the listing agent MUST disclose those items, even if the seller doesn't.

A buyer has a home inspected and that inspection reveals lots of problems. The buyer wants out of the transaction, based on the report, so a copy is given to the seller. The seller puts the house back on the market and reveals the defects. Can the seller show a subsequent buyer the report, or is it "owned" by the first buyer?

Many times a buyer gives a copy of the inspections to the seller, especially if they want out of the transaction. However, it may be that the inspector language in the report limiting what the buyer can do with the report. There could also be copyright issues if the seller photocopies the report. If a seller wishes to use the report, it would be wise to consult the inspector to get permission. Just revealing facts that are included in the report should not cause a problem in most cases.



Is it ok to send a gift card to someone unlicensed who sends me a lead that buys or sells?  Or, instead of sending them anything, they ask that I make a donation to their favorite charity

The answer is "NO" to the first question.

Someone can donate to charity all they want, but if the amount donated is tantamount to an unpaid referral fee, it simply cannot be done. 

Can a leasing agent receive a referral fee for referring a prospective home purchaser or seller to a salesperson or broker?

No. They could only receive referral fees for referring prospective residential tenants to other leasing companies or landlords. That fee would also have to be paid through the sponsoring broker.

Is it legal to give away prizes, food and hold drawings to increase my attendance at a broker open house?

This is a tough question and I can't even get DFPR and legal counsel to agree. The issue is whether attendance at a broker open house constitutes a "licensed activity". If it does, then technically all compensation must flow through the sponsoring broker. My advice: stick to giving out food. If you have a cash drawing, the safe way is to make the check payable to the sponsoring broker.

For certain, there could also be a problem with drawings under Illinois gaming laws. The risk is probably minimal as long as the prize is small. Once again, seek your own legal counsel.


I am working for a property manager doing leasing activities. Do I need a license?

Maybe. If you are an employee of the owner of the property, you would be exempt. Also, if you are an employee of a property manager AND live on the premises you help manage, you are exempt as a resident manager. Note that you have to be an EMPLOYEE, not an independent contractor.

If you do need a license, you could get a regular salesperson license (45 hours of class), or you could also get a leasing agent license (15 hours of class), which allows you to do just residential leasing activities. I offer both classes in Bloomington. Check my schedule under "Prelicense".


Can I have an Illinois real estate license, working for broker A, and also have a license in another state, working for broker B?

According to DFPR, the answer is yes, you could work for different brokers in different states, according to Illinois law. You should check with the other state involved, to be sure their law allows it.


Should a company pay another brokerage company a co-op fee, if they discover that the agent who brought the offer was not properly licensed at the time?

If it is a FACT the agent was not licensed at the time, you would not pay their sponsoring broker on the theory that you would be knowingly aiding and abetting the unlicensed practice of real estate, which is illegal. If the facts aren't totally clear, time to contract DFPR! Anyone can do a licensee lookup at DFPR's website as well.


Can Agent A be licensed in Illinois and also in another state, such as Arizona, by different brokers? Who would get referral fees if Agent A referred business out?

Yes, as long as Agent A is not licensed by reciprocity, he could be licensed in another state by different broker.Regarding the referral fees, I think you would have to look at where the agent was "working" at the time of the referral. It could also be handled through the broker's independent contractor agreement.



Is it true that Illinois has a radon disclosure law?

Yes. It went into affect January 1, 2008 and mirrors the lead base paint law. Sellers have to complete a form, disclose any test results and give an informational pamphlet on radon. There is NO requirement under this act to test or mitigate.

Is there a carbon monoxide detector law in Illinois?

The law toook effect on January 1, 2007 and generally requires a detector within 15' of all sleeping areas in dwellings that have any type of gas appliance. It will affect owner-occupants as well as tenants. Click here to see the full text of the new law.

Does Illinois have a Lead Based Paint Law?

Yes and there were some revision in 2007. It sets in place ways that some tenants can have their units tested by public healtofficials and requires posting of warning signs in the lobbies of buildings that have had mitigation notices issued. Click here for the complete story.


At closing, does the earnest have to go back to the buyer?

No. According to Rules section 1450.175-g, the money should be dispersed according to "the written direction of the principals" in the transaction. The settlement sheet would be considered "written direction" when signed by the buyer and seller. Thus, the money could go to whomever is agreed to by the parties (perhaps the parents provided the funds).


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