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AgencyAgency_relationships_and_written_brokerage_agreementsMEDIUM

Under Illinois law, what type of agency relationship applies by default when a sponsoring broker has not established a different relationship through a written brokerage agreement?

Correct Answer

B) Designated agency applies by default, unless a written brokerage agreement establishes a different type of relationship.

Under the Illinois Real Estate License Act of 2000 (225 ILCS 454/15-75), designated agency is the default brokerage relationship in Illinois. Unless the written brokerage agreement expressly provides for a different type of relationship — such as dual agency or exclusive single agency — the sponsoring broker's relationship with the consumer is governed by the designated agency framework. This default rule ensures consumers receive representation through a designated licensee even absent a specific agreement to the contrary.

Answer Options
A
Dual agency applies by default, because Illinois presumes that every sponsoring broker simultaneously represents both the buyer and the seller unless otherwise agreed.
B
Designated agency applies by default, unless a written brokerage agreement establishes a different type of relationship.
C
Single agency applies by default, and the sponsoring broker must personally represent the consumer without delegating to any sponsored licensee.
D
No agency relationship exists by default; a consumer is always treated as unrepresented until a written agreement is fully executed and notarized.

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agencyagency_relationships_and_written_brokerage_agreementsagency_types_ildefaultdefinitiondesignated_agencydifficulty_3illinois_state
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