A licensee begins working with a buyer but no written brokerage agreement has been executed. Under current Illinois law, how is the consumer's agency relationship classified by default?
Correct Answer
A) The consumer is treated as a designated agency client, unless a written brokerage agreement establishes a different relationship.
Under 225 ILCS 454/15-75, Illinois establishes designated agency as the default relationship when a licensee works with a consumer and no written brokerage agreement specifies a different arrangement. The legislature chose designated agency as the default because it allows the sponsoring broker to represent multiple clients in the same transaction through different designated agents, reducing conflicts of interest compared to undisclosed dual agency. A written agreement is required to opt into a different structure, such as dual agency or a customer (non-agency) relationship.
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