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AgencyAgency_disclosures_and_compensation_policy_noticesMEDIUM

Under Illinois law, what agency relationship applies to a consumer when no written agreement establishes a different arrangement?

Correct Answer

B) The consumer is treated through designated agency, unless a written agreement provides for a different relationship.

Under 225 ILCS 454/15-75, Illinois establishes designated agency as the default agency relationship when a consumer works with a licensee and no written agreement specifies a different arrangement. In designated agency, the sponsoring broker designates one or more licensees to represent the client exclusively, even if other licensees in the same brokerage represent the other party. This default protects consumers by ensuring they receive representation without requiring an explicit written election of that relationship.

Answer Options
A
The consumer is treated as a client under a single-agency relationship, with the licensee owing full fiduciary duties.
B
The consumer is treated through designated agency, unless a written agreement provides for a different relationship.
C
The consumer is treated as an unrepresented customer, and the licensee owes only ministerial duties until a written agreement is signed.
D
The consumer is treated as a dual-agency client, because Illinois presumes both parties share the same brokerage.

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Key Terms:

agencyagency_disclosures_and_compensation_policy_noticesdefaultdesignated_agencydifficulty_3disclosure_requirementsillinois_statescenario
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