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During a brokerage meeting in Champaign, Logan Diaz asks whether a person receiving services from a licensee is always a client. What is the best answer under current Illinois law or practice?

Correct Answer

A) No. Some consumers are customers rather than clients, and the full fiduciary-style duties of representation attach only when there is a client relationship.

Illinois distinguishes clients from customers and ties representation duties to the nature of the relationship.

Answer Options
A
No. Some consumers are customers rather than clients, and the full fiduciary-style duties of representation attach only when there is a client relationship.
B
Yes. Every consumer helped by a licensee is automatically a client, as this answer frames the Illinois rule.
C
No. Every consumer is automatically a designated managing broker, under the rule stated in this choice.
D
Yes. Customer status exists only in commercial deals and never in residential practice.

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Related Topics & Key Terms

Key Terms:

agencyclientcustomerdifficulty_4illinois_statescenariosponsored_licensee_dutiessponsored_licensee_scope_and_supervision

Related Concepts

The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.

A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.

The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.

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