A licensee is working with a consumer and no written brokerage agreement addresses the type of agency relationship. What agency relationship applies by default under Illinois law?
Correct Answer
D) The consumer is treated as a client in a designated agency relationship, unless a written agreement establishes a different arrangement.
225 ILCS 454/15-75 establishes designated agency as the statutory default in Illinois. Unless a written brokerage agreement expressly provides for a different type of agency relationship — such as single agency or dual agency — the law presumes that the consumer is being served through designated agency. This default protects consumers by ensuring an agency relationship exists even when the parties have not specified one in writing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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