Sec. 10-30. Disclosure document to be provided by business broker.

478 words·~2 min read·/il/chapter-815/act-307/10-30

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(a)A business broker must provide a written disclosure document that meets the requirements set forth in subsection

(b)of this Section to a client at the time or before the client signs a contract for the services of a business broker or at the time or before the business broker receives any consideration upon the contract. Any person who signs a contract for the services of a business broker shall have 7 days from the date of signing of the contract to rescind the contract and receive a refund of all payments, if any, made by that person.

(b)A written disclosure document shall contain the following information:

(1)A disclosure statement which shall be the cover sheet and shall be entitled, in at

least 10-point boldface capital letters "DISCLOSURES REQUIRED BY LAW". Under this title shall appear the statement, in at least 10 point type that "THE SECRETARY OF STATE HAS NOT REVIEWED AND DOES NOT APPROVE, RECOMMEND, ENDORSE, OR SPONSOR ANY BUSINESS BROKERAGE CONTRACT. THE INFORMATION CONTAINED IN THIS DISCLOSURE HAS NOT BEEN VERIFIED BY THE SECRETARY OF STATE. IF YOU HAVE ANY QUESTIONS, SEE AN ATTORNEY BEFORE YOU SIGN A CONTRACT OR AGREEMENT." Nothing except the title and the required statement shall appear on the cover sheet, except that the name of the business broker, address, telephone number, facsimile number, and any other information as authorized by the Secretary of State by rule may appear on the cover sheet.

(2)The name and form of organization of the business broker, the names under which the

business broker has done or is doing business, and the name of any parent organization or affiliate of the business broker.

(3)The names, addresses, and titles of the business broker's officers, directors,

trustees, general partners, general managers, principal executives, and any other person performing similar duties.

(4)A full and detailed description of the actual services that the business broker

undertakes to perform for the client.

(5)A specific statement of the circumstances under which the business broker will be

entitled to obtain or retain consideration from the party with whom the business broker contracts.

(6)Any other information the Secretary of State may require by rule or regulation.

(c)A business broker shall amend the disclosure document required by subsection

(b)of this Section whenever necessary to prevent it from containing any false or misleading statement of a material fact and shall deliver a copy of the amended disclosure document to the Secretary of State on or before the date of the amendment.

(d)The information in subdivisions (b)(4) and (b)(5) of this Section need not be set out on the disclosure document if the business broker's contract contains the information required in subdivisions (b)(4) and (b)(5) of this Section and is provided with the disclosure document.