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AgencyAgency_relationships_and_written_brokerage_agreementsHARD

Under the Illinois Real Estate License Act of 2000, which statement most accurately describes when a written brokerage agreement is required?

Correct Answer

D) A sponsoring broker who enters a brokerage relationship for the purpose of listing property or representing a buyer, seller, landlord, or tenant in a transaction must set out the terms of that relationship in a written brokerage agreement.

Under 225 ILCS 454/15-75, whenever a sponsoring broker enters a brokerage relationship — whether to list property for a seller or landlord, or to represent a buyer or tenant — the terms of that relationship must be set forth in a written brokerage agreement. This requirement is not limited by property type, transaction stage, or client history.

Answer Options
A
A written brokerage agreement is required only when the transaction involves commercial property; residential transactions may rely on an oral agreement.
B
A written brokerage agreement must be executed before a licensee may show property, but the sponsoring broker may waive this requirement for repeat clients.
C
A written brokerage agreement is required only after an offer has been accepted, so that the parties' agency relationships are confirmed at the time of contract.
D
A sponsoring broker who enters a brokerage relationship for the purpose of listing property or representing a buyer, seller, landlord, or tenant in a transaction must set out the terms of that relationship in a written brokerage agreement.

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