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Under the Illinois Real Estate License Act, if no written agreement establishes a different agency relationship, how is a consumer treated by default?

Correct Answer

B) As a party in a designated agency relationship unless a written agreement provides otherwise

Under 225 ILCS 454/15-75, Illinois establishes designated agency as the default framework for brokerage relationships. Unless a written agreement expressly creates a different relationship — such as single agency, dual agency, or a customer-only arrangement — a consumer working with a licensee is presumed to be a client under designated agency. In designated agency, the sponsoring broker designates one or more licensees to represent the client exclusively within the brokerage, allowing the brokerage to represent both buyer and seller in the same transaction without full dual-agency conflicts.

Answer Options
A
As a client under an implied single-agency relationship with the licensee
B
As a party in a designated agency relationship unless a written agreement provides otherwise
C
As an unrepresented customer with no agency relationship of any kind
D
As a dual-agency client requiring immediate written consent before any services are provided

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Related Topics & Key Terms

Key Terms:

agencyagency_relationships_and_written_brokerage_agreementsagency_types_ildefaultdesignated_agencydifficulty_2illinois_statescenario

Related Concepts

A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.

An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.

The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.

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