Under the Illinois Real Estate License Act of 2000, which of the following statements regarding sponsoring broker responsibilities and sponsorship registration is NOT accurate?
Correct Answer
B) A sponsorship change becomes legally effective upon the mutual agreement of the parties, regardless of whether any filing has been made with the IDFPR.
Option B is NOT accurate. Under 225 ILCS 454/5-50, a sponsorship change does not become legally effective upon the parties' mutual agreement alone. The change must be properly filed with and registered by the IDFPR to be effective. Until that registration occurs, the broker does not have lawful authority to practice under the new sponsoring broker. Mutual agreement is a necessary but insufficient step — IDFPR filing is what triggers legal effectiveness.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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