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AgencyAgency_relationships_and_written_brokerage_agreementsMEDIUM

Each of the following statements accurately describes Illinois agency law EXCEPT:

Correct Answer

D) Illinois law does not require written brokerage agreements because an agency relationship is automatically implied whenever a licensee assists a consumer.

D is the inaccurate statement. Under the Illinois Real Estate License Act of 2000 (225 ILCS 454), written brokerage agreements are required to establish a client relationship. Without a written agreement, the default relationship is designated agency, but the law does not treat agency as automatically implied in every consumer interaction — the absence of a written agreement does not create a client relationship by implication.

Answer Options
A
A licensee owes fiduciary-style duties of representation only to clients, not to customers, because customers receive a more limited set of statutory protections.
B
A licensee representing a client must promote the client's best interests, maintain confidentiality of client information, and perform the obligations of the brokerage agreement.
C
A licensee must treat customers honestly, refrain from providing false information, and disclose latent material adverse facts that are actually known and not discoverable by a reasonably diligent inspection.
D
Illinois law does not require written brokerage agreements because an agency relationship is automatically implied whenever a licensee assists a consumer.

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Key Terms:

agencyagency_relationships_and_written_brokerage_agreementsagency_types_ilbrokerageclientclient_dutiescustomercustomer_dutiesdifficulty_3fiduciaryillinois_statematerial_adverse_factreversewritten_agreement
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