Under Illinois agency law, if a licensee begins working with a consumer and no written agreement has been executed establishing a specific agency relationship, how is that consumer treated by default?
Correct Answer
B) As a designated agency client, because Illinois law establishes designated agency as the default relationship absent a written agreement to the contrary
Under 225 ILCS 454/15-75, Illinois establishes designated agency as the statutory default. Unless a written agreement creates a different relationship—such as dual agency or a customer/non-agency arrangement—a consumer working with a sponsored licensee is treated as a designated agency client of that licensee, not of the entire brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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