Each of the following statements accurately reflects Illinois law on agency relationships and written brokerage agreements EXCEPT:
Correct Answer
A) Illinois law permits brokerage agreements to be made orally, provided the parties later reduce the agreement to writing before closing.
Option A is incorrect under Illinois law. The Illinois Real Estate License Act of 2000 (225 ILCS 454/15-75) requires that brokerage agreements be in writing; oral brokerage agreements are not a recognized alternative. A written agreement is required before or at the time a licensee enters into a client relationship, not merely before closing.
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