Under Illinois law, what responsibility does a designated managing broker have regarding brokerage agreements entered into by newly licensed brokers?
Correct Answer
C) The designated managing broker must review newly licensed brokers' brokerage agreements and provide supervision over offer negotiation and transaction activity.
Under 225 ILCS 454 and the Illinois REALTORS® designated managing broker guidelines, a designated managing broker bears supervisory responsibility over sponsored licensees, which expressly includes reviewing brokerage agreements executed by newly licensed brokers and overseeing their offer negotiation and transaction activity. This supervision obligation exists throughout the transaction, not merely at its conclusion.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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