At a training session in Schaumburg, Morgan Diaz plans to refer a client to a third-party service provider in which the licensee has an ownership interest. Which answer is correct?
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.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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