AgencyAgency_disclosures_and_compensation_policy_noticesMEDIUM
Drew Hayes is reviewing an Illinois issue in Chicago. The person plans to refer a client to a third-party service provider in which the licensee has an ownership interest. Which statement best applies?
Correct Answer
B) Illinois requires disclosure of third-party compensation sources and referral interests to the client.
Illinois requires transparency when a licensee receives transaction-related compensation from a third party or has a significant ownership interest in a referral source.
Answer Options
A
Illinois allows the referral without disclosure if the provider is reputable.B
Illinois requires disclosure of third-party compensation sources and referral interests to the client.C
Illinois allows disclosure after closing because the referral is outside the brokerage agreement.D
Illinois prohibits every referral to any third party under all circumstances.Why This Is the Correct Answer
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Why the Other Options Are Wrong
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agencyagency_disclosures_and_compensation_policy_noticesdifficulty_3disclosure_requirementsillinois_statereferralscenariothird_party_compensation
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