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AgencyAgency_relationships_and_written_brokerage_agreementsMEDIUM

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.

Answer Options
A
Illinois law permits brokerage agreements to be made orally, provided the parties later reduce the agreement to writing before closing.
B
A licensee who has a client relationship owes that client fiduciary-style duties, including promoting the client's best interests, while a consumer who is a customer is owed a lesser set of duties.
C
A licensee representing a client must promote the client's best interests, maintain confidentiality of client information, and perform the terms of the brokerage agreement.
D
A licensee must treat all customers honestly, refrain from providing false information, and disclose latent material adverse facts that are actually known to the licensee and not discoverable by a reasonably diligent inspection.

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agencyagency_relationships_and_written_brokerage_agreementsagency_types_ilbrokerageclientclient_dutiescustomercustomer_dutiesdifficulty_3fiduciaryillinois_statematerial_adverse_factreversewritten_agreement
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