Under the Illinois Real Estate License Act, which statement correctly describes what a licensee owes to a customer who is not represented by that licensee?
Correct Answer
C) The licensee owes the customer honesty, must avoid providing false information, and must disclose latent material adverse facts actually known to the licensee that could not be discovered by a reasonably diligent inspection.
Under 225 ILCS 454/15-20, even when a licensee does not represent a customer, the licensee must treat the customer honestly, refrain from providing false information, and disclose latent material adverse facts actually known to the licensee that would not be discoverable by a reasonably diligent inspection. These are baseline statutory duties that apply regardless of representation status.
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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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