Under the Illinois Real Estate License Act, when is a sponsoring broker required to use a written brokerage agreement?
Correct Answer
B) A sponsoring broker entering a brokerage relationship for listing property or representing a person in a transaction must set out the terms of that relationship in a written brokerage agreement.
Under 225 ILCS 454/15-75, a sponsoring broker who enters into a brokerage relationship—whether for listing property or for representing a buyer, seller, landlord, or tenant in a transaction—must set out the terms of that relationship in a written brokerage agreement before or at the time the relationship is established. The written agreement is a precondition to the relationship, not an optional formality.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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