New law cuts red tape for real estate professionals

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Rauner action streamlines licensing, encourages growth

information provided by the Office of the Governor

SPRINGFIELD, Ill. (August 17, 2018) — On August 14, Governor Bruce Rauner signed legislation to reduce burdensome licensing requirements for real estate businesses. The new licensing program is expected to save the state money by reducing a duplicative and unnecessary licensure structure that provides no benefit to the public and discourages business creation and growth.

Additionally, it clarifies that a licensed individual may establish a limited liability company to receive commissions directly, allowing more flexibility in selecting a business entity that fits their needs. The new practice will also allow the individual to derive more favorable tax treatment than they would receive when operating as an individual.

“House Bill 5210 is a win for small business and licensed professionals in Illinois,” Rauner said. “It is another step forward in our goal of reducing the amount of red tape, paperwork, and regulatory burden that puts our business owners and our state at a disadvantage.”

The bill was supported by the Illinois Department of Financial and Professional Regulation (IDFPR).

The governor also signed House Bill 5502 removing an unnecessary testing requirement to encourage new real estate appraiser trainees to enter the industry. This will reduce a barrier to entry and increase labor market liquidity within the industry.