Under Illinois real estate law, is every consumer who receives services from a licensee considered a client?
Correct Answer
C) No. Some consumers are customers rather than clients, and the full duties of representation attach only when a client relationship has been established.
Under 225 ILCS 454/15-10, Illinois distinguishes between a 'client' — a consumer who has entered into a brokerage agreement and is owed the full duties of representation, including loyalty, confidentiality, and obedience — and a 'customer,' who receives limited ministerial or informational services without a representation relationship. The elevated duties of agency attach only once a client relationship is established, typically through a written brokerage agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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