IAR GAD Howard Handler

Per the Illinois Real Estate License Act, local units of government are prohibited from requiring real estate brokerage offices or brokers to obtain a local license in order to conduct business, as that is the exclusive domain of the state. It was recently discovered that the village of Bannockburn, in their village code, recognized this restriction but made it incumbent upon the business to point out to the village they were exempt from local licensing.

This was not stated on the business application form; business owners would have had to be intimately familiar with the village code to know that within three days of receiving a notice from the village the business would have to prove in writing their exemption or waive all rights to contest they are exempt. Still, nothing in the Illinois Real Estate License Act allows for municipal licensing, even in instances where a real estate brokerage, by default, consents to municipal licensing.

Upon discussion with the village, the village changed their policies and agreed it would no longer issue business licenses or charge a business license fee to exempt businesses. Moreover, the village has modified its business license application to allow exempt businesses to indicate directly on the application form itself that they are exempt. Bannockburn real estate offices can expect to save a minimum of $300 dollars in licensing fees over 10 years, and more importantly conduct business without the threat of the local municipality revoking their license. A special thank you goes to the village of Bannockburn on their speedy resolution.

IAR Fighting for You Result: Bannockburn real estate offices can expect to save a minimum of $300 dollars in licensing fees over 10 years, and more importantly conduct business without the threat of the local municipality revoking their license.