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AgencyDesignated_agency_and_dual_agency_consentEASY

Under Illinois designated agency, which party holds the legal agency relationship with the client?

Correct Answer

B) The sponsored licensee specifically named by the sponsoring broker to represent that client.

Under 225 ILCS 454/15-75, designated agency is the arrangement in which the sponsoring broker appoints a specific sponsored licensee to act as the legal agent of the client. It is that named sponsored licensee — not the sponsoring broker personally, and not the office as a whole — who holds the legal agency relationship with the client. This structure allows different licensees within the same brokerage to represent opposing parties without triggering dual agency at the broker level.

Answer Options
A
The sponsoring broker, because the broker is the license holder of record and bears ultimate legal responsibility for all transactions.
B
The sponsored licensee specifically named by the sponsoring broker to represent that client.
C
Both the sponsoring broker and all other sponsored licensees in the office simultaneously, creating a shared agency.
D
No individual holds legal agency; designated agency creates only a contractual, non-agency service relationship.

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Related Topics & Key Terms

Key Terms:

agencydefinitionsdesignated_agency_and_dual_agency_consentdesignated_agency_ildesignated_agentdifficulty_2illinois_statescenario

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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