Under Illinois law, when must a sponsoring broker establish a brokerage relationship in writing?
Correct Answer
C) A sponsoring broker entering a brokerage relationship for listing property or representing a person in a transaction must set out the relationship 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 listing property or representing a buyer, seller, landlord, or tenant — must set out the terms of that relationship in a written brokerage agreement. The statute does not limit this requirement to commercial property, dual agency, or post-closing documentation; it applies broadly whenever the brokerage relationship is established.
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