HB5551 Summary

• Requires managing broker applicants to personally pass a written examination on Illinois-specific real estate brokerage laws and complete 45 hours of pre-license education within the year before application.

• Approves pre-license education for managing brokers, brokers, and residential leasing agents remains valid for 2 years after completion, and allows nonresident brokers meeting certain requirements to operate virtual offices in Illinois.

• Eliminates reciprocal licensing agreements for out-of-state brokers effective January 1, 2026; creates new endorsement pathway requiring pre-license endorsement course, Illinois-specific exam, and proof of active licensure in another state or jurisdiction.

• Requires fair housing training (minimum 2 credit hours) as part of continuing education requirements for brokers and managing brokers; increases core continuing education curriculum from 4 to 6 hours.

• Modifies brokerage agreements to allow both exclusive and non-exclusive agreements in writing; adds provision that written agreements are not required to establish that licensed activity occurred or that an agreement existed between parties.