Must Illinois property managers have a real estate broker's license?
A person needs a real estate license if they provide assistance which is in any way intended to result in the sale or lease of real estate. The definition of the word "broker" in the Illinois Real Estate Act provides 11 examples of the types of "assistance" that require a real estate -license. Included are: representing clients in the negotiation of real estate sales contracts or leases, and issuing advertisements for the sale, purchase or lease of real estate.
Therefore, property management activities that involve general administration, like contracting for property maintenance (garbage pick-up, etc.) and paying general expenses (utilities, etc.), do NOT require a real estate license. Serving as an accountant for association dues also does not require a real estate license.
Only those property management activities that involve a conveyance of real estate by contract or lease require a real estate license. Accordingly, property management activities that require a real estate license include: showing a unit for sale or lease, negotiating lease or real estate contract terms, maintaining security deposits, rent payments or earnest money deposits.
Illinois is unique in that it does allow property managers to obtain a "leasing agent" license to be used only for residential leasing activities. Leasing agents must be sponsored and employed by a sponsoring broker.
Must Illinois community association managers have a real estate broker's license?
NO. A broker's license is not required to manage community associations in Illinois.
Illinois Leasing Agent and Real Estate Broker Requirements
An individual who wants to obtain an Illinois real estate broker license must complete the required pre-license education (subject to the few exemptions below), pass a test, and file an application with the required fee.
Pre-license Education Requirements:
Leasing agent license = 15 hours of instruction in an approved course of study relating to the leasing of residential property.
Broker license for a person who does not already have a salesperson license = 120 hours of instruction in approved courses, 45 of which shall be those hours required to obtain a salesperson license, plus at least 45 hours of mandatory courses as outlined in Section 1450.60 of the Rules.
Broker license for a person who does already have a salesperson license = 75 hours of instruction in approved courses (not including the 45 hours required to obtain the salesperson license).
The persons who are exempt from pre-license education are persons who are Illinois licensed attorneys and persons who qualify based upon Reciprocity with another State
