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AgencyDesignated_agency_and_dual_agency_consentHARD

Under Illinois law, when a sponsored licensee works with a consumer and no written brokerage agreement establishes a specific agency relationship, how is that consumer treated by default?

Correct Answer

B) The consumer is treated through designated agency unless a written agreement provides for a different relationship.

Under the Illinois Real Estate License Act (RELA) and its implementing rules, designated agency is the statutory default relationship between a sponsoring broker's licensee and a consumer. This default applies unless the parties execute a written brokerage agreement that expressly establishes a different relationship, such as a buyer agency, seller agency, or dual agency arrangement.

Answer Options
A
The consumer is treated as a dual-agency client, because common law presumes dual agency whenever a licensee provides assistance.
B
The consumer is treated through designated agency unless a written agreement provides for a different relationship.
C
The consumer is treated solely as an unrepresented customer with no agency relationship of any kind.
D
The consumer's agency status is governed by federal fair housing regulations rather than Illinois agency law.

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Related Topics & Key Terms

Key Terms:

agencydefaultdesignated_agencydesignated_agency_and_dual_agency_consentdesignated_agency_ildifficulty_4illinois_statescenario

Related Concepts

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

An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.

An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.

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