Use the chart below developed by the Illinois Association of REALTORS® or download the transition flow charts to begin thinking about your plan for the transition from “salesperson” to “broker” and “broker” to “managing broker.” Remember, the exams and CE courses remain in development and the renewal deadline is just over two years away on April 30, 2012. NOTE: The Transition Period does not begin until May 1, 2011.

Q: What if I hold a broker license and don’t want to transition to managing broker? I want to stay a broker.
Existing brokers, who do not choose to get the managing broker license, have no transition requirements. They will need to do 12 hours of regular continuing education (CE) to renew their broker licenses before April 30, 2012.

Q: If I just got my first license, will I need CE to renew?
In 2012 you would not need CE to renew if you got your initial license less than 90 days before your first renewal date. (NOTE: This is not true for the broker renewal on April 30, 2010.)

Q: Can I get CE credit by taking pre-license or post-license required courses?
After April 30, 2010, generally, no. However, the approved 30-hour post-license course for brokers will satisfy the CE requirement for the period in which it is taken. Likewise, the 45-hour course to transition to managing broker will satisfy the 12-hour broker management CE for the pre-renewal period before the April 30, 2012 renewal date.

Q: Must partners hold “managing broker” or “broker” licenses?
Any partner in a licensed real estate partnership must be a managing broker or broker. In an LLP or LLC, any managing partners or members must hold a managing broker or broker’s license. No salesperson, leasing agent or group of salespersons or leasing agents may own more than 49% of a licensed real estate company. So, after April 30, 2012, this limit will apply to leasing agents only because the salesperson’s license goes away. Also note that if a licensed real estate brokerage entity is owned by broker licensee(s), there must be a managing broker licensee in place to manage the real estate brokerage business of that entity. Also, if the licensed real estate brokerage is a sole proprietor, that individual must hold a managing broker’s license.

Q: Is a “regular employee” exemption from the licensure requirement?
Since there is a new definition of regular employee, under the “owner” exemption in the Act, regular employees of the owner are only exempt from the licensure requirement if that employee works an average of 20 hours per week for the owner or if that person would be considered an employee under the IRS test.

Q: Are attorneys still exempt?
While active Illinois attorneys do not have to take any education to receive or maintain their licenses, they do still need to obtain a real estate license to practice real estate brokerage by successfully passing the required exam for the license they are seeking. This will include the need to transition from salesperson to broker or broker to managing broker. If an attorney/real estate licensee runs a real estate business as a sole proprietor, he/she must have a managing broker license by April 30, 2012.

Test Questions

Q: How long is my pre-license test score effective?
It is effective for one year from the date of passage.

Q: How many chances do I get to pass a license exam?
Four. The fifth time, you would have to start all over from the beginning.

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