I85PREP
⌘ K
IL Leasing Agent study materials
IL Leasing Agent study resources

IL Leasing Agent practice questions

One question at a time. Build your IL Leasing Agent understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Illinois Real Estate License Act and leasing agent licensing requirements

To qualify for an Illinois leasing agent license, an applicant must be at least what age?

  1. 21 years old
  2. 18 years old Correct answer.
  3. 16 years old
  4. No minimum age is required

Explanation

Illinois requires leasing agent applicants to be at least 18 years old. The applicant must also have a high school diploma or equivalent, complete the required pre-license course, and pass the licensing exam.

Question 2Illinois Real Estate License Act and leasing agent licensing requirements

How many hours of pre-license education must an Illinois leasing agent applicant complete before taking the licensing exam?

  1. 45 hours
  2. 15 hours Correct answer.
  3. 30 hours
  4. 75 hours

Explanation

An Illinois leasing agent applicant must complete a 15-hour leasing agent pre-license course. The 75-hour pre-license requirement applies to broker applicants, not leasing agents.

Question 3Illinois Real Estate License Act and leasing agent licensing requirements

An Illinois leasing agent license must be associated with which of the following?

  1. A licensed leasing agent supervisor
  2. A licensed Illinois attorney
  3. The owner of each building leased
  4. A licensed Illinois real estate broker Correct answer.

Explanation

A leasing agent must be sponsored by a licensed Illinois real estate broker. The broker supervises the leasing agent's leasing activities and is responsible for the agent's conduct.

Question 4Illinois Real Estate License Act and leasing agent licensing requirements

Which Illinois state agency administers leasing agent licensing and discipline?

  1. Illinois Department of Commerce and Economic Opportunity
  2. Illinois Attorney General
  3. Illinois Secretary of State
  4. Illinois Department of Financial and Professional Regulation Correct answer.

Explanation

The Illinois Department of Financial and Professional Regulation, through its Division of Real Estate, administers real estate licensing, including leasing agent licenses. It also handles complaints and disciplinary actions.

Question 5Illinois Real Estate License Act and leasing agent licensing requirements

How many hours of continuing education must an Illinois leasing agent complete each two-year renewal cycle?

  1. 6 hours Correct answer.
  2. 12 hours
  3. 15 hours
  4. 3 hours

Explanation

Illinois leasing agents must complete 6 hours of continuing education every two-year renewal cycle. The 12-hour continuing education requirement applies to brokers.

Question 6Illinois Real Estate License Act and leasing agent licensing requirements

A leasing agent's sponsoring broker terminates the sponsorship. What is the effect on the leasing agent's license?

  1. It converts to a broker license
  2. It is automatically revoked permanently
  3. It remains active for any leasing activity
  4. It becomes inactive until a new sponsor is obtained Correct answer.

Explanation

A leasing agent must have a sponsoring broker to perform leasing activities. If sponsorship ends, the license becomes inactive until the agent obtains a new sponsoring broker and complies with Department requirements.

Question 7Illinois Real Estate License Act and leasing agent licensing requirements

Which educational credential must an Illinois leasing agent applicant have?

  1. Completion of 60 college credit hours
  2. A bachelor's degree
  3. A high school diploma or equivalent Correct answer.
  4. An associate degree in real estate

Explanation

Illinois requires leasing agent applicants to have a high school diploma or its equivalent. A college degree is not required for the leasing agent license.

Question 8Illinois Real Estate License Act and leasing agent licensing requirements

Which of these tasks may an Illinois leasing agent properly perform?

  1. Show a rental unit and negotiate lease terms Correct answer.
  2. List a commercial building for sale
  3. Manage a 40-unit apartment building's maintenance budget
  4. Negotiate and sign a contract for the sale of a house

Explanation

A leasing agent is authorized to perform leasing activities, such as showing rental units and negotiating leases on behalf of the sponsoring broker. Sales, listings for sale, and broader property management require a broker license.

Question 9Illinois Real Estate License Act and leasing agent licensing requirements

A landlord offers a leasing agent a $150 bonus directly for signing a tenant. How should the agent respond?

  1. Accept it only if the tenant agrees
  2. Accept it because it is a gift
  3. Accept it and split it with the sponsoring broker
  4. Decline it and direct the landlord to pay the sponsoring broker Correct answer.

Explanation

A leasing agent may receive compensation for leasing activities only from the sponsoring broker. The agent should decline direct payment and have the landlord pay the broker, who then compensates the agent.

Question 10Illinois Real Estate License Act and leasing agent licensing requirements

A leasing agent collects a security deposit from a tenant. What must the agent do with the funds?

  1. Deposit them in a personal account until month end
  2. Use them to pay advertising costs
  3. Hold them in cash in a desk drawer
  4. Deliver them to the sponsoring broker promptly Correct answer.

Explanation

Funds collected in connection with a leasing transaction must be delivered promptly to the sponsoring broker for proper handling. A leasing agent may not commingle client funds with personal funds or use them for business expenses.

Question 11Illinois Real Estate License Act and leasing agent licensing requirements

Under Illinois advertising rules, a leasing agent's advertisement for a rental unit must include which item?

  1. The leasing agent's home address
  2. The owner's Social Security number
  3. The name of the sponsoring broker Correct answer.
  4. The tenant's credit score

Explanation

Advertising by a leasing agent must identify the sponsoring broker. This lets the public know which licensed brokerage stands behind the advertised leasing activity.

Question 12Illinois Real Estate License Act and leasing agent licensing requirements

An unlicensed office assistant working with a leasing agent may perform which task?

  1. Negotiate lease terms
  2. Explain lease provisions to tenants
  3. Quote rental prices to prospective tenants
  4. Schedule showing appointments Correct answer.

Explanation

Unlicensed assistants may perform clerical and administrative tasks, such as scheduling appointments. Quoting prices, negotiating lease terms, and explaining lease provisions are leasing activities that require a license.

Question 13Illinois Real Estate License Act and leasing agent licensing requirements

An Illinois leasing agent license authorizes the holder to engage in which of the following?

  1. Managing a property owner's investment portfolio
  2. Leasing real property on behalf of a sponsoring broker Correct answer.
  3. Selling residential real estate
  4. Appraising property for lenders

Explanation

The leasing agent license is limited to leasing activities performed under a sponsoring broker. Selling real estate, appraising, and full investment portfolio management require other licenses or credentials.

Question 14Illinois Real Estate License Act and leasing agent licensing requirements

A leasing agent promises to pay a $100 referral fee to an unlicensed friend who sent a tenant. This is:

  1. Prohibited because compensation to unlicensed persons for referral is illegal Correct answer.
  2. Permitted because the friend is not negotiating
  3. Permitted if the broker approves
  4. Permitted if the fee is under $500

Explanation

Illinois prohibits paying compensation to an unlicensed person for performing or referring licensed real estate activity. A referral fee to an unlicensed friend for a tenant lead violates that rule.

Question 15Illinois Real Estate License Act and leasing agent licensing requirements

How often must an Illinois leasing agent license be renewed?

  1. Only when changing brokers
  2. Every two years Correct answer.
  3. Every year
  4. Every three years

Explanation

Illinois leasing agent licenses are renewed on a two-year cycle. Continuing education must be completed within that renewal period.

Question 16Illinois Real Estate License Act and leasing agent licensing requirements

A leasing agent changes their business mailing address. What is required?

  1. Retake the licensing exam
  2. No action is required
  3. Apply for a brand-new license
  4. Notify the sponsoring broker and the Department of the change Correct answer.

Explanation

A licensee must keep the Department informed of current contact information. The leasing agent should also notify the sponsoring broker so brokerage records remain accurate.

Question 17Illinois Real Estate License Act and leasing agent licensing requirements

A leasing agent misrepresents a unit's availability to a tenant. Who may be subject to discipline?

  1. No one because leasing agents are independent
  2. Only the property owner
  3. The leasing agent and the sponsoring broker Correct answer.
  4. Only the tenant

Explanation

A leasing agent who misrepresents facts in a leasing transaction may be disciplined. The sponsoring broker may also face discipline because the broker is responsible for supervising the agent's leasing activities.

Question 18Illinois Real Estate License Act and leasing agent licensing requirements

Before providing leasing services, an Illinois leasing agent must disclose whom they represent. This is known as:

  1. Escrow disclosure
  2. Truth-in-lending disclosure
  3. Agency disclosure Correct answer.
  4. Homestead disclosure

Explanation

Agency disclosure informs the consumer which party the licensee represents in the transaction. Illinois requires that agency relationships be disclosed to consumers.

Question 19Illinois Real Estate License Act and leasing agent licensing requirements

Which funds may a leasing agent lawfully collect as part of leasing activities?

  1. Rent and security deposits for delivery to the sponsoring broker Correct answer.
  2. Mortgage payments for the lender
  3. Property taxes for the county
  4. Homeowners insurance premiums

Explanation

A leasing agent may collect rent and security deposits in the course of leasing activities. Those funds must be delivered to and handled through the sponsoring broker.

Question 20Illinois Real Estate License Act and leasing agent licensing requirements

An applicant who completes the pre-license course but does not pass the licensing exam may:

  1. Apply for a temporary license
  2. Begin leasing immediately
  3. Work under a broker without a license
  4. Retake the exam according to the testing provider's rules Correct answer.

Explanation

Passing the licensing exam is required before a leasing agent license can be issued. An applicant who fails may retake the exam under the testing provider's procedures.

Question 21Illinois Real Estate License Act and leasing agent licensing requirements

Which person is exempt from Illinois leasing agent licensure when leasing residential property?

  1. An owner leasing their own property Correct answer.
  2. A leasing agent trainee who has not yet passed the exam
  3. A person who leases units for a fee on behalf of several owners
  4. A property manager who negotiates leases for a fee

Explanation

An owner leasing their own property is not acting as a leasing agent for another person and is exempt from licensure. A person who leases property for others for compensation generally needs a license.

Question 22Illinois Real Estate License Act and leasing agent licensing requirements

A leasing agent's license expires while the agent continues leasing. The agent is:

  1. Automatically renewed
  2. Only subject to a warning
  3. Engaging in unlicensed activity Correct answer.
  4. Still licensed if the broker approves

Explanation

A leasing agent may perform leasing activities only while properly licensed and sponsored. Continuing to lease after expiration constitutes unlicensed activity and may result in discipline.

Question 23Illinois Real Estate License Act and leasing agent licensing requirements

The sponsoring broker's responsibility for a leasing agent includes:

  1. Paying the agent's continuing education tuition
  2. Supervising the agent's leasing activities and maintaining records Correct answer.
  3. No responsibility because the agent is licensed
  4. Guaranteeing the agent's commissions

Explanation

A sponsoring broker must supervise the leasing agent's licensed activities and maintain required records. The broker is accountable for ensuring the agent operates within the law.

Question 24Illinois Real Estate License Act and leasing agent licensing requirements

Which action by a leasing agent most likely constitutes commingling?

  1. Keeping a separate transaction file
  2. Delivering a rent check to the broker the same day
  3. Depositing a tenant's security deposit into the agent's personal bank account Correct answer.
  4. Advertising the broker's name

Explanation

Commingling occurs when client or transaction funds are mixed with the licensee's personal funds. A security deposit placed in the agent's personal bank account is a clear example of commingling.

Question 25Illinois Real Estate License Act and leasing agent licensing requirements

A leasing agent may be disciplined by IDFPR for which of the following?

  1. Refusing to lease to a person because of race Correct answer.
  2. Completing continuing education
  3. Using the broker's name in ads
  4. Delivering funds to the broker

Explanation

Discriminating against a prospective tenant because of race violates fair housing laws and Illinois licensing standards. Such conduct can subject the leasing agent to discipline by IDFPR.

Question 26Illinois Real Estate License Act and leasing agent licensing requirements

What is the minimum age at which a person may be issued an Illinois leasing agent license?

  1. At least 18 years of age Correct answer.
  2. At least 25 years of age
  3. At least 21 years of age
  4. At least 16 years of age

Explanation

The Act sets the minimum age for a leasing agent applicant at 18, in addition to requiring pre-license education, a passing exam score, and sponsorship by a licensed broker. No higher age threshold applies to real estate licensure in Illinois.

Question 27Illinois Real Estate License Act and leasing agent licensing requirements

Which entity administers the Real Estate License Act and issues Illinois leasing agent licenses?

  1. The Illinois Department of Financial and Professional Regulation Correct answer.
  2. The Illinois Secretary of State's Business Services Department
  3. The recorder of deeds in the county where the agent lives
  4. The Consumer Protection Division of the Illinois Attorney General's office

Explanation

The Illinois Department of Financial and Professional Regulation (IDFPR) administers the Act, issuing, renewing, and disciplining leasing agent and broker licenses and adopting implementing rules. The Secretary of State, Attorney General, and county offices have no licensing role for leasing agents.

Question 28Illinois Real Estate License Act and leasing agent licensing requirements

At any one time, how many sponsoring brokers may an Illinois leasing agent have?

  1. Exactly one Correct answer.
  2. Up to three, if each sponsoring broker consents in writing
  3. Up to two, with written notice to the Department
  4. Any number, as long as each broker shares the agent's compensation

Explanation

A leasing agent license names a single sponsoring broker, and the agent performs leasing activities only for that broker. Moving to a different broker requires changing the sponsorship on the license through the Department.

Question 29Illinois Real Estate License Act and leasing agent licensing requirements

A newly formed limited liability company wants an Illinois leasing agent license so it can lease apartments for property owners. Which statement is accurate?

  1. It may be licensed as a leasing agent if it pays a higher licensing fee
  2. It may be licensed if every member of the company holds a leasing agent license
  3. It may be licensed if it names a licensed leasing agent as its designated manager
  4. No, because a leasing agent license is issued only to an individual person Correct answer.

Explanation

Leasing agent licenses are issued to individual persons who are then sponsored by a broker; a business entity cannot hold a leasing agent license. An entity that wants to lease property on behalf of others must operate through an appropriately licensed broker arrangement.

Question 30Illinois Real Estate License Act and leasing agent licensing requirements

A person has completed the pre-license course and passed the leasing agent exam but has not yet been issued a license. The person begins showing units and taking applications on a broker's behalf. Which conclusion is correct?

  1. Both may be disciplined, because leasing activities require an issued license Correct answer.
  2. Neither may be disciplined, because the education and exam requirements are satisfied
  3. Only the broker may be disciplined, because applicants are exempt until a license is denied
  4. Only the person may be disciplined, because the broker has no duty to verify licensure

Explanation

Education, exam passage, and a sponsor are prerequisites, but authority to perform leasing activities begins only when a license is issued. An unlicensed person who performs leasing activities is subject to discipline, and a broker who permits an unlicensed person to act on its behalf is also subject to discipline.

Question 31Agency relationships, disclosures, and representation agreements

In Illinois, a leasing agent's sponsoring broker may act as a dual agent in a residential leasing transaction only when:

  1. the broker has represented the landlord for more than one year
  2. the lease term is twelve months or shorter
  3. both the landlord and the tenant consent in writing after full disclosure Correct answer.
  4. two licensees in the same office each work with one party

Explanation

Dual agency requires the informed, written consent of all parties to the transaction. Without that consent, the brokerage may not represent both the landlord and the tenant. A single brokerage working both sides without consent is an undisclosed dual agency.

Question 32Agency relationships, disclosures, and representation agreements

A leasing agent who leases an apartment for a tenant-client may accept payment for that work from:

  1. the landlord's property manager, as a direct payment
  2. the agent's sponsoring managing broker Correct answer.
  3. the tenant, under a separate fee agreement
  4. either party to the transaction, if disclosed

Explanation

A leasing agent may be compensated for brokerage services only by the sponsoring broker. Accepting payment directly from a client, customer, or another party violates the licensing Act. The broker then pays the agent under their employment arrangement.

Question 33Agency relationships, disclosures, and representation agreements

An Illinois leasing agent license remains valid only while the licensee:

  1. is sponsored by an active managing broker Correct answer.
  2. works at least twenty hours each week
  3. belongs to a local association of REALTORS
  4. also holds a separate property management license

Explanation

A leasing agent license is issued for work performed under the supervision of a sponsoring managing broker. If the sponsorship ends, the license becomes inactive until a new sponsor is registered. Association membership and hours worked are not licensing requirements.

Question 34Agency relationships, disclosures, and representation agreements

For a prospective tenant who has not signed any representation agreement, the leasing agent owes:

  1. honesty, fair dealing, and disclosure of known material facts Correct answer.
  2. full fiduciary duties of loyalty and confidentiality
  3. no duties of any kind until a written agreement is signed
  4. confidentiality and undivided loyalty but no other duties

Explanation

A consumer who is not a client is still owed honesty, fair dealing, and disclosure of material facts known to the licensee, along with proper accounting for money or documents entrusted to the agent. Fiduciary duties such as loyalty and confidentiality arise only with a client.

Question 35Agency relationships, disclosures, and representation agreements

A leasing agent employed by the landlord's brokerage shows a unit to a prospective tenant who has no agent. Under Illinois law, the leasing agent:

  1. becomes a dual agent as soon as the prospect asks a question
  2. must refer the prospect to a different brokerage
  3. remains the landlord's agent and treats the prospect as a consumer Correct answer.
  4. automatically becomes the tenant's agent by showing the unit

Explanation

Illinois does not permit subagency; showing a property to an unrepresented prospect does not make that prospect a client. The agent continues to represent the landlord and owes the prospect only consumer-level duties. A separate written agreement would be required to represent the tenant.

Question 36Agency relationships, disclosures, and representation agreements

Designated agency in an Illinois brokerage means that the sponsoring broker:

  1. limits all licensees in the office to working with landlords
  2. assigns one licensee to each client, with the clients' informed consent Correct answer.
  3. personally represents both parties in the same transaction
  4. shares the commission with a brokerage representing the other side

Explanation

In designated agency, the broker designates different licensees to represent each client in the same transaction, and both clients consent to that arrangement. The designated agents each owe full duties to their own client. This structure limits the flow of confidential information within the office.

Question 37Agency relationships, disclosures, and representation agreements

An agency relationship between a tenant and a leasing agent's brokerage is created by:

  1. the tenant paying a fee at the first showing
  2. a licensee's verbal promise to look out for the tenant
  3. a written agreement between the tenant and the sponsoring broker Correct answer.
  4. showing the tenant three or more units

Explanation

Illinois requires brokerage agreements to be in writing, and the agreement is between the client and the sponsoring broker rather than the individual agent. The written agreement identifies the duties, term, and compensation. Services rendered before an agreement do not create a client relationship.

Question 38Agency relationships, disclosures, and representation agreements

A leasing agent holds an exclusive right-to-lease agreement with a landlord. During the term, the landlord personally finds a tenant and signs a lease without the agent's help. The agent is entitled to:

  1. a half commission as a goodwill payment
  2. a commission only if the agent had shown the unit to that tenant
  3. nothing, because the agent did not procure the tenant
  4. the full commission even though the landlord found the tenant Correct answer.

Explanation

Under an exclusive right to lease, the broker earns a commission regardless of who procures the tenant during the term of the agreement. The landlord keeps the right to lease the property but owes the agreed fee. An exclusive agency arrangement, by contrast, would not pay the broker in this situation.

Question 39Agency relationships, disclosures, and representation agreements

A leasing agent representing the landlord learns from a prospect that the prospect would gladly pay $100 more per month than the advertised rent. The agent should:

  1. tell the prospect to submit a lower offer instead
  2. communicate the information to the landlord Correct answer.
  3. ask the prospect to split the difference with the landlord
  4. keep the information secret because the prospect spoke in confidence

Explanation

The agent's client is the landlord, and the duty of loyalty requires sharing information that could benefit the client. Statements made by a non-client prospect do not create a confidential relationship with the agent. Withholding the information would breach loyalty to the landlord.

Question 40Agency relationships, disclosures, and representation agreements

A leasing agent representing a tenant-client is asked by the landlord's agent how much rent the tenant can actually afford. The tenant's agent should:

  1. disclose it once the tenant signs a lease
  2. decline to share it and keep the information confidential Correct answer.
  3. disclose it so the application moves faster
  4. disclose it only if the landlord lowers the rent

Explanation

Information a client shares that could weaken the client's bargaining position is confidential and may not be disclosed without authorization. The duty of confidentiality protects the tenant even after the agreement ends. Disclosure would harm the client's negotiating position.

Question 41Agency relationships, disclosures, and representation agreements

A brokerage acting as a disclosed dual agent in a lease transaction must:

  1. treat both clients fairly and disclose material facts to each Correct answer.
  2. conceal the tenant's identity from the landlord
  3. route all communication through an unlicensed assistant
  4. negotiate the lowest possible rent for the tenant

Explanation

A dual agent may not advocate for one side over the other but must deal fairly with both and disclose material facts to each. The agent cannot use information from one client to benefit the other. Both clients must have consented in writing beforehand.

Question 42Agency relationships, disclosures, and representation agreements

Before leasing a unit, a leasing agent knows of water damage and mold behind a recently painted wall. A prospective tenant tours the unit and does not ask about moisture. The agent must:

  1. disclose it only if the prospect asks about water damage
  2. say nothing because the prospect is not a client
  3. disclose it only after the lease is signed
  4. disclose the known material defect to the prospect Correct answer.

Explanation

Duties owed to all consumers include disclosure of known material facts, such as a significant latent defect affecting the property's value or habitability. The duty does not depend on the prospect asking the right question. Silence could expose the licensee to discipline and the owner to liability.

Question 43Agency relationships, disclosures, and representation agreements

When must an Illinois leasing agent make the required written disclosure of the type of agency relationship being offered?

  1. only when the consumer asks about agency
  2. at the lease signing
  3. before the consumer agrees to be represented Correct answer.
  4. within thirty days of the first showing

Explanation

Agency status must be disclosed in writing before the consumer enters a representation agreement with the brokerage. This lets the consumer make an informed choice about representation. Waiting until the lease signing or until asked defeats that purpose.

Question 44Agency relationships, disclosures, and representation agreements

A tenant signs a written tenant representation agreement with a brokerage, and a leasing agent employed there does the work. The party to that agreement on the brokerage side is:

  1. the individual leasing agent
  2. the landlord of the unit to be shown
  3. the state licensing agency
  4. the sponsoring managing broker Correct answer.

Explanation

Brokerage agreements are made with the sponsoring broker, who is legally responsible for the acts of sponsored licensees. The leasing agent performs services under that agreement but is not personally the party in contract. This is why the broker, not the agent, is paid and pays the agent.

Question 45Agency relationships, disclosures, and representation agreements

A leasing agent promises to pay a $200 gift card to an unlicensed friend who referred a tenant who signed a lease. This payment is:

  1. permitted if it stays under $500
  2. prohibited, because compensation for brokerage services may go only to licensed persons Correct answer.
  3. permitted if it is disclosed to the tenant
  4. permitted if the friend signs a referral agreement

Explanation

Only licensed persons may be paid for performing or referring brokerage activity, and a leasing agent's own compensation must come through the sponsoring broker. Paying an unlicensed person for a referral violates the licensing Act. A referral agreement does not cure the problem.

Question 46Agency relationships, disclosures, and representation agreements

A leasing agent is about to lease a house built in 1972. Before the tenant signs the lease, the agent must:

  1. act only if the house was built before 1960
  2. provide the disclosure only in sale transactions
  3. wait until the tenant requests lead information
  4. give the tenant the EPA pamphlet and disclose any known lead hazards Correct answer.

Explanation

Federal and Illinois law require lead-based paint disclosure plus delivery of the approved pamphlet before a lease is entered for residential housing built before 1978. Known lead hazards and available reports must also be disclosed. The obligation is affirmative and applies to rentals as well as sales.

Question 47Agency relationships, disclosures, and representation agreements

Which transaction requires delivery of an Illinois Residential Real Property Disclosure Report?

  1. the lease of a commercial storefront
  2. the sale of a single-family home Correct answer.
  3. a month-to-month tenancy
  4. a one-year apartment lease

Explanation

The Illinois Residential Real Property Disclosure Act applies to transfers of residential real property by sale, requiring the seller to disclose known material defects. Leases of residential units are governed by other disclosure laws, such as lead-based paint notice. Commercial leasing falls outside the residential disclosure statute.

Question 48Agency relationships, disclosures, and representation agreements

A leasing agent represents a tenant in a transaction where the landlord will pay the agent's commission. The agent must:

  1. stay silent because the tenant pays nothing
  2. require the tenant to match the landlord's payment
  3. disclose in writing how the agent will be paid Correct answer.
  4. tell the tenant only after the lease is signed

Explanation

Illinois requires a licensee to disclose in writing to the consumer how the sponsoring broker is compensated and who pays it. A tenant who pays nothing directly out of pocket may wrongly assume the agent works for free and for the tenant alone. Written disclosure avoids that misunderstanding.

Question 49Agency relationships, disclosures, and representation agreements

In an Illinois designated agency transaction, confidential information the tenant gives the tenant's designated agent is:

  1. given to the managing broker, who must relay it
  2. imputed to every licensee in the brokerage
  3. kept from the landlord's designated agent and not imputed to the brokerage Correct answer.
  4. passed to the landlord's designated agent as a material fact

Explanation

Designated agency is designed to keep each client's confidential information with that client's own designated agent. The information is not shared with the other designated agent and is not imputed to the brokerage as a whole. This lets one office represent both sides while each client keeps the benefits of representation.

Question 50Agency relationships, disclosures, and representation agreements

A leasing agent represents both the landlord and the tenant in a lease without either party's written consent. This conduct is:

  1. acceptable for leases shorter than six months
  2. acceptable if only one licensee handles the file
  3. a violation of the licensing Act subject to discipline even if the lease closes Correct answer.
  4. acceptable if the agent reduces the commission

Explanation

Undisclosed dual agency is a violation of the licensing Act regardless of whether the transaction succeeds. The agent has taken on conflicting duties without the informed consent of both parties. Discipline by the licensing agency can follow even after the lease is signed.