Under Illinois law, when is a written brokerage agreement required?
Correct Answer
D) A sponsoring broker entering a brokerage relationship for listing property or representing a person in a transaction must set out the terms of that relationship in a written brokerage agreement.
Under the Illinois Real Estate License Act, whenever a sponsoring broker enters into a brokerage relationship — whether to list property or to represent a buyer or tenant in a transaction — the terms of that relationship must be memorialized in a written brokerage agreement. This requirement applies broadly and is not limited by property type or transaction channel.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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.
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