Which type of agency relationship is NOT recognized in Illinois?
Question & Answer
Review the question and all answer choices
Exclusive buyer agency
Exclusive buyer agency is fully recognized under Illinois law, allowing a licensee to represent only the buyer's interests with full fiduciary duties, and is a common arrangement in Illinois residential transactions.
Designated agency
Designated agency is not only recognized in Illinois but is specifically addressed in the Illinois Real Estate License Act as the preferred mechanism for handling in-house transactions where both buyer and seller are clients of the same brokerage.
Transaction brokerage
Single agency
Single agency — where a licensee represents only one party in a transaction — is the foundational agency model recognized and practiced throughout Illinois, making it a core part of the state's licensing framework.
Why is this correct?
The Illinois Real Estate License Act of 2000 (225 ILCS 454) does not include transaction brokerage as a recognized agency relationship, meaning Illinois licensees cannot legally operate as neutral facilitators without fiduciary duties. Under Illinois law, a licensee must be either a seller's agent, buyer's agent, or a disclosed dual agent — each carrying specific fiduciary obligations. This makes Illinois one of a small number of states that explicitly reject the transaction brokerage model in favor of mandatory representation.
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