Under the Illinois Real Estate License Act of 2000, which of the following correctly defines a 'designated agent'?
Correct Answer
D) A sponsored licensee whom the sponsoring broker has specifically named to act as the legal agent of a particular client.
Under 225 ILCS 454/15-45, designated agency occurs when a sponsoring broker assigns a specific sponsored licensee to serve as the legal agent of a client. That named licensee — not the sponsoring broker personally, not the firm at large — holds the agency relationship with the client. This structure allows the sponsoring broker to avoid automatic dual agency when the firm represents both sides of a transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
- → In Vermont, a licensee has substantial contact with an unrepresented person before a showing. Which statement is correct?
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