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AgencyDesignated_agency_and_dual_agency_consentHARD

Under Illinois designated agency law, which party serves as the legal agent of the client?

Correct Answer

D) The sponsored licensee specifically named by the sponsoring broker as the designated agent serves as the client's legal agent.

Under the Illinois Real Estate License Act (225 ILCS 454), designated agency allows a sponsoring broker to name a specific sponsored licensee as the legal agent of a client. That designated licensee—not the broker personally, not the brokerage entity, and not all licensees collectively—holds the legal agency relationship and owes full fiduciary duties to that client.

Answer Options
A
The sponsoring broker always serves as the legal agent, regardless of which licensee is assigned to the client.
B
All sponsored licensees within the brokerage share joint legal agency over every client the brokerage represents.
C
Legal agency is held by the brokerage entity itself and cannot be delegated to any individual licensee.
D
The sponsored licensee specifically named by the sponsoring broker as the designated agent serves as the client's legal agent.

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Related Topics & Key Terms

Key Terms:

agencydefinitionsdesignated_agency_and_dual_agency_consentdesignated_agency_ildesignated_agentdifficulty_4illinois_statescenario

Related Concepts

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.

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

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