Illinois bill would restrict real estate rebates

By
Real Estate Broker/Owner with McCormick Partners Realty

           

Rep. Robert Molaro     Rep. Angelo 'Skip' Saviano

The following is an excerpt of a big story that appeared on Inman News today 2.20.08:

House Bill 4313, proposed by Illinois state Rep. Robert S. Molaro, D-Chicago, seeks to amend the state's Real Estate License Law Act of 2000 to state that "no licensee shall give or pay cash rebates, cash gifts or cash prizes to an unlicensed person who is a party to a contract to buy or sell real estate." The legislation would allow licensees to offer compensation "including prizes, merchandise, services, rebates, discounts or other consideration to an unlicensed person who is a party to the lease of real estate," as long as that offer complies with other provision of the existing act, according to the bill text.

I notice that the leasing of real estate would be exempt from this legislation. Why?, Leasing of real estate is part of the Real Estate License Law in Illinois.  

Did these two State Reps. try to get any input from the real estate profession before introducing this legislation?  This bill will hurt the profession, but more importantly it will hurt real estate consumers.

The Illinois Association of Realtors is opposing state legislation that seeks to restrict cash rebates and other rewards offered by real estate professionals to unlicensed persons who engage in real estate transactions.

The U.S. Department of Justice has taken legal action in other states to undo similar restrictions that prevent real estate agents and brokers from rebating a portion of the money they receive in a home sale to consumers, and the department is aware of the proposed Illinois legislation, a spokeswoman said Tuesday.

It is interesting to note that these two State Reps have been friends of the real estate community. The Illinois Association of Realtors have been past contributors of funds to these two reps including the year 2006. some Realtors must be wondering if IAR forgot to make a contribution to these friends of our industry in 2007?

The Real Estate License Law Act of 2000 was created to protect the public. I don't know how this legislation protects anyone or from what? 

If you live in Illinois, let your representative know how you feel about this proposed legislation:

Contact Rep. Molaro:  http://www.ilga.gov/house/Rep.asp?MemberID=1032  

Contact Rep. Saviano: http://www.ilga.gov/house/Rep.asp?GA=95&MemberID=1192

 

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