In an Illinois designated agency arrangement, who serves as the legal agent of the client?
Correct Answer
D) The sponsored licensee named by the sponsoring broker as the designated agent for that specific client.
Under 225 ILCS 454/1-10 and 454/15-50, designated agency allows a sponsoring broker to assign a specific sponsored licensee to serve as the legal agent of a particular client. That named licensee — not the broker personally, and not the firm at large — holds the fiduciary duties to the client. This structure is designed to permit the brokerage to represent both buyer and seller through different designated agents without creating a firm-wide dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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In West Virginia, a WV licensee fails to disclose on the Commission agency relationship form whether the licensee represents the seller, buyer, or both. Which statement is correct?
In Vermont, a licensee owes fiduciary duties to a client. Which statement is correct?
- → 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?
- → In Vermont, a firm has not elected designated agency. Which statement is correct?
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- → A Vermont licensee is asked about a licensee has substantial contact with an unrepresented person before a showing. What is the best answer?
- → In Vermont, a seller receives another offer before closing. Which statement is correct?
- → In Vermont, a designated agency firm appoints or changes a designated agent. Which statement is correct?
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