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AgencyAgency_relationships_and_written_brokerage_agreementsEASY

A licensed Illinois broker begins assisting a buyer with property searches and showings. The buyer has not signed any written brokerage agreement. Under the Illinois Real Estate License Act of 2000, which statement best describes the legal status of this relationship?

Correct Answer

C) The buyer is treated as a customer, and the broker may perform ministerial acts but does not owe the buyer the full duties of a client representative.

C is correct. Under 225 ILCS 454/15-75, a written brokerage agreement is required to establish a client relationship. Without such an agreement, the consumer is treated as a customer rather than a client. A licensee may perform ministerial acts — informative or clerical tasks — for a customer but does not owe the customer the full representational duties owed to a client, such as promoting best interests or maintaining confidentiality of negotiating position.

Answer Options
A
The buyer is automatically a represented client because the broker has begun performing services on the buyer's behalf.
B
The broker may not perform any services for the buyer until a written designated agency agreement is signed.
C
The buyer is treated as a customer, and the broker may perform ministerial acts but does not owe the buyer the full duties of a client representative.
D
The broker must immediately disclose a dual-agency relationship because no written agreement has been established.

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Related Topics & Key Terms

Key Terms:

agencyagency_relationships_and_written_brokerage_agreementsagency_types_ildefaultdesignated_agencydifficulty_1illinois_statescenario

Related Concepts

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

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