IL SB3740

Requires all brokerage agreements between sponsoring brokers and clients to be in writing, and adds a new violation for failing to have a written brokerage agreement when representing a client as a designated agent

Establishes a new endorsement pathway for out-of-state brokers to obtain Illinois licenses after January 1, 2026, replacing reciprocal agreements with requirements including passing an Illinois-specific exam and completing a pre-license endorsement course

Increases continuing education requirements to include at least 2 credit hours of fair housing training within the 6-hour core curriculum, and adds diversity, equity, and inclusion as an approved continuing education subject area

Creates the Real Estate Recovery Fund as a separate special fund and adjusts fund thresholds, raising the minimum balance trigger from $750,000 to $900,000 and the target balance from $800,000 to $1,000,000

Expands scholarship eligibility for the Real Estate Research and Education Fund from "persons of minority racial origin" to "persons of historically marginalized classes," defined to include Native American, Asian, Black, Hispanic, Native Hawaiian, or Pacific Islander individuals, or members of protected classes under the Illinois Human Rights Act