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Practice Of Real EstateLicense_lawHARD

Under the Illinois Real Estate License Act of 2000, what is the effect on affiliated brokers when a sponsoring brokerage's license expires?

Correct Answer

C) Affiliated brokers may not continue to practice real estate through that sponsoring brokerage until the brokerage license is reinstated or a new sponsorship is established.

Under the Illinois Real Estate License Act of 2000 (225 ILCS 454), a broker's authority to practice is derived from and contingent upon an active sponsorship with a licensed sponsoring brokerage. When the sponsoring brokerage's license expires, that legal authority is extinguished. Affiliated brokers have no independent right to practice through an unlicensed entity, and continuing to do so would constitute unlicensed practice — a violation the Act is specifically designed to prevent in order to protect the public.

Answer Options
A
Affiliated brokers remain fully active because their individual licenses are independent of the sponsoring brokerage's license status.
B
Affiliated brokers receive an automatic 30-day wind-down period to close pending transactions before activity must cease.
C
Affiliated brokers may not continue to practice real estate through that sponsoring brokerage until the brokerage license is reinstated or a new sponsorship is established.
D
Affiliated brokers may continue practicing provided they personally notify IDFPR in writing within 10 business days of the lapse.

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Related Topics & Key Terms

Key Terms:

difficulty_4expirationillinois_statescenariosponsoring_brokersponsoring_broker_dutiessponsorship_and_designated_managing_broker_supervisionunlicensed_practice

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