Under Illinois law, when must a sponsoring broker's brokerage relationship be documented in a written brokerage agreement?
Correct Answer
C) A sponsoring broker entering a brokerage relationship for listing property or representing a person in a transaction must set out the relationship in a written brokerage agreement.
Under 225 ILCS 454/15-75, a sponsoring broker who enters into a brokerage relationship — whether to list property or to represent a buyer, seller, landlord, or tenant — must establish the terms of that relationship in a written brokerage agreement. The written requirement exists to ensure both parties have a clear, enforceable record of the scope of representation, compensation, and duties before services are rendered.
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