Under Illinois real estate law, when must a sponsoring broker's brokerage relationship be documented in a written brokerage agreement?

Correct Answer

D) Whenever a sponsoring broker enters a brokerage relationship for listing property or representing a person in a transaction, the relationship must be set out in a written brokerage agreement.

Under the Illinois Real Estate License Act of 2000 (225 ILCS 454/15-75), a sponsoring broker who enters into a brokerage relationship — whether for listing property or representing a buyer, seller, landlord, or tenant — must set out the terms of that relationship in a written brokerage agreement. The written agreement requirement exists to protect consumers by ensuring the scope, duties, and compensation terms are clearly defined before services are rendered.