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From whom does a real estate salesperson receive their compensation in Illinois?

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Question & Answer

Review the question and all answer choices

A

The buyer

Option A is incorrect because while a buyer may provide funds that ultimately become part of the commission, the buyer does not employ or directly compensate the salesperson. The buyer pays the seller, and then the seller's broker distributes commissions according to the brokerage agreements.

B

The seller

Option B is incorrect because although the seller typically pays the commission through the listing agreement, the seller does not directly compensate the salesperson. The seller pays the listing broker, who then distributes compensation to all involved parties including the buyer's agent.

C

The salesperson

Option C is incorrect because a salesperson cannot compensate themselves. They are employees or independent contractors of the broker and receive payment from the broker according to their agreement.

D

The sponsoring broker

Correct Answer

Why is this correct?

The correct answer is D because in Illinois, real estate salespersons are employed by their sponsoring broker, not by clients. Compensation flows from the broker to the salesperson according to their independent contractor agreement, which is why the broker is the source of the salesperson's compensation.

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