An Illinois licensee allows an unlicensed individual to conduct brokerage activities under the licensee's office name and license. Which of the following best describes the regulatory consequence for the licensee?
Correct Answer
B) The licensee faces disciplinary action, because the Illinois Real Estate License Act prohibits aiding or abetting unlicensed practice and lending one's license to enable another person to operate a brokerage without proper licensure and supervision.
Under 225 ILCS 454/20-20(a)(6), it is a disciplinary offense for a licensee to aid, abet, or assist any person in the unauthorized practice of real estate. Additionally, 225 ILCS 454/20-20(a)(7) prohibits a licensee from allowing another person to use the licensee's license to conduct brokerage activities. Permitting an unlicensed individual to operate under the licensee's name and license violates both provisions, regardless of how the unlicensed person is compensated or how many transactions are involved.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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