(Section scheduled to be repealed on January 1, 2030)

276 words·~1 min read·/il/chapter-225/act-454/1

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 10-10. Disclosure of compensation.

(a)A licensee must disclose to a client the sponsoring broker's compensation policy, including the terms of compensation and any amounts offered to cooperating brokers who represent other parties in a transaction.

(b)A licensee must disclose to a client all sources of compensation related to the transaction received by the licensee from a third party.

(c)If a licensee refers a client to a third party in which the licensee has greater than a 1% ownership interest or from which the licensee receives or may receive dividends or other profit sharing distributions, other than a publicly held or traded company, for the purpose of the client obtaining services related to the transaction, then the licensee shall disclose that fact to the client at the time of making the referral.

(d)If in any one transaction a sponsoring broker receives compensation from both the buyer and seller or lessee and lessor of real estate, the sponsoring broker shall disclose in writing to a client the fact that the compensation is being paid by both buyer and seller or lessee and lessor.

(e)Nothing in the Act shall prohibit the cooperation with or a payment of compensation to an individual domiciled in any other state or country who is licensed as a broker in that individual's state or country of domicile or to a resident of a country that does not require a person to be licensed to act as a broker if the person complies with the laws of the country in which that person resides and practices there as a broker.