Under Illinois real estate law, is every person who receives services from a licensee automatically considered a client?

Correct Answer

A) No. Illinois distinguishes between clients and customers; the full duties of representation attach only to clients, while customers receive more limited statutory duties.

Under the Illinois Real Estate License Act of 2000 (225 ILCS 454/15-10 and 454/15-20), Illinois expressly distinguishes between 'clients' and 'customers.' A client is a person who has entered into a brokerage agreement with a sponsoring broker and is owed the full duties of representation, including loyalty, confidentiality, and disclosure. A customer is a consumer who has not entered into such a relationship and receives only the more limited duties owed to all parties, such as honesty and disclosure of material facts. The nature of the relationship — not merely the receipt of services — determines which duties apply.