Which of the following statements about designated agency and dual agency is NOT accurate under current Illinois law?
Correct Answer
A) Common sponsorship by the same brokerage automatically creates a dual agency relationship between two sponsored licensees.
Option A is inaccurate. Under the Illinois Real Estate License Act (225 ILCS 454), common sponsorship by the same brokerage does NOT automatically create dual agency. In a designated agency arrangement, each sponsored licensee is individually designated as the legal agent for their respective client. The two licensees represent separate clients independently, and dual agency only arises if a single licensee—or the sponsoring broker personally—represents both parties simultaneously with proper written consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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