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Which type of agency relationship is NOT recognized in Illinois?

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Question & Answer

Review the question and all answer choices

A

Exclusive buyer agency

Exclusive buyer agency is correct answer in Illinois. This is a recognized form where a buyer's agent represents only the buyer's interests in a transaction, with fiduciary duties including loyalty, confidentiality, and obedience.

B

Designated agency

Designated agency is correct answer in Illinois. This occurs when a brokerage firm represents both buyer and seller, but different agents within the firm are designated to represent each party separately, avoiding conflicts of interest.

C

Transaction brokerage

Correct Answer
D

Single agency

Single agency is correct answer in Illinois. This refers to a traditional agency relationship where an agent represents either the buyer or the seller, but not both, with full fiduciary duties owed to that single client.

Why is this correct?

Transaction brokerage is not recognized in Illinois because state law requires licensees to establish clear agency relationships with fiduciary duties. Licensees must either represent buyers, sellers, or both as disclosed dual agents, rather than acting as neutral facilitators without fiduciary obligations.

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