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AgencyAgency_relationships_and_written_brokerage_agreementsMEDIUM

Under Illinois law, is every consumer who receives services from a licensee automatically treated as a client?

Correct Answer

A) No. Illinois law distinguishes between clients and customers, and the full duties of representation attach only when a client relationship has been established.

Under 225 ILCS 454/15-10, Illinois law expressly distinguishes between a 'client'—a person who has entered into a brokerage agreement and is owed the full duties of representation, including loyalty, confidentiality, and disclosure—and a 'customer,' who receives limited ministerial services without a representation relationship. The elevated fiduciary-style duties apply only to clients, not to customers.

Answer Options
A
No. Illinois law distinguishes between clients and customers, and the full duties of representation attach only when a client relationship has been established.
B
Yes. Any consumer who receives assistance from a licensee is automatically a client, regardless of whether a written brokerage agreement exists.
C
Yes. Illinois law presumes a client relationship in all residential transactions but treats commercial consumers as customers by default.
D
No. Unless a consumer pays the licensee directly, the consumer is classified as an unrepresented third party with no right to any licensee duties.

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