Chapter 16 - Illinois License Law - Exercise 5

Gap-fill exercise

Fill in all the gaps, then press "Check" to check your answers. Use the "Hint" button to get a free letter if an answer is giving you trouble. You can also click on the "[?]" button to get a clue. Note that you will lose points if you ask for hints or clues! The box below includes a word list for this exercise. Words may be used more than once.
   broker      cannot      corporation      DFPR      employee      Licensed      licensed      licensee      not      only one      open      sole      solely      sponsoring broker      unlicensed      written   

Licensed and Unlicensed Personal Assistants

An unlicensed personal assistant could be the unlicensed secretary of an office or the individual secretary or personal assistant of an agent. A personal assistant is someone in the same position who is as a salesperson or broker. The act specifically defines what an unlicensed personal assistant can do.

A personal assistant, while working directly for a licensee, is considered legally to be working for the licensee's . The licensed assistant must have a employee or independent contractor agreement with the licensee's . In the case of most assistants, licensed or unlicensed, they will fit the IRS's definition of an . The licensee for whom they work cannot pay a assistant directly. They must be paid through the sponsoring broker. Both the sponsoring and the who hired the assistant is held responsible for the assistant.

A licensed personal assistant will be able to perform more tasks. An unlicensed assistant make telephone calls soliciting business on behalf of the licensee. The unlicensed assistant hold an open house or home show fair. These are considered to be licensed activities.

An personal assistant may:
1) perform only administrative, clerical, or personal activities
2) answer the phone
3) submit listings and listing changes to the MLS
4) follow up on transactions after a contract has been signed
5) assemble documents for a closing
6) secure public information from a courthouse, water district, or other repository of public information
7) have keys made for a listing
8) draft advertising copy and promotional materials for approval by a licensee
9) place advertising
10) record and deposit earnest money, security deposits and rents
11) complete contract forms with business and factual information under the direction of and the approval of the licensee
12) monitor licenses and personnel files
13) compute commission checks and perform book keeping activities
14) place signs on property
15) order items of routine repair as directed by a licensee
16) prepare and distribute flyers and promotional information under the direction of and with the approval of the licensee
17) act as a courier to deliver documents, pick up keys, etc.
18) place routine telephone calls on rent payments
19) schedule appointments for the licensee
20) respond to questions by quoting directly from published information
21) gather feedback on showings
22) perform other administrative, clerical and personal activities for which a license is not required

An unlicensed personal assistant cannot:
1) host houses, kiosks, or home show booths or fairs
2) cannot telemarket or perform other activities to solicit business on behalf of the client
3) show property
4) interpret information on listings, titles, financing, contracts, closings, or other information relating to a real estate transaction
5) explain or interpret a contract, listing, lease agreement or other real estate document with anyone outside the licensee's own firm
6) negotiate or agree to any commission, commission split, management fee, or referral fee on behalf of a licensee
7) perform any activity for which a license is required

Licensee's changing their home address or brokerage office location and including licensee's changing their name, either by marriage or court order, must notify the immediately. They must also provide the DFPR with either a certified copy of the marriage certificate or portions of the court order relating to the name change. Licensee's regularly practicing under a diminutive of their first name, e.g., Meg instead of Margaret or Mark for Mariusz or Sam for Shamim or a middle name instead of the licensee's full legal name must notify the DFPR of the alternate name.

Sponsoring Broker and Employment Agreements

Licensees are allowed to have sponsoring broker at a time and all real estate activities must be performed for the . A sponsoring must have an employee or independent contractor agreement with each they sponsor. The agreement should address whether the licensee is an employee or an independent contractor. The agreement should also state the terms of their relationship, supervision, duties, compensation, termination and other salient aspects of their relationship.

personal assistants must also have an employment agreement with the broker, even if they are not performing licensed activities. This includes any personal assistant that has been hired directly by a sponsored salesperson or broker. The must hold the license of the assistant.

Licensee's Corporation for Indirect Payment

Licensees can receive compensation for the performance of real estate activities only from their . Brokers can directly pay the of a licensee they sponsor. The employee's corporation must be owned by the licensee and must be formed for the purpose of receiving compensation earned by the licensee. Corporations formed for this very specific purpose are licensed by the DFPR, however, the licensee must file with the DFPR a copy of their certificate of incorporation.

This corporation may receive only compensation earned by the licensee. The corporation may not be used by the licensee to perform real estate activities, sponsor, employ or associate itself with other licensees, hold itself out to the public or advertise to the public in the corporation's name.