Illinois Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the Illinois real estate exam, and it's also one of the most misunderstood. The Illinois Department of Financial & Professional Regulation (IDFPR) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Illinois law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for IL-specific rules are among the most common failures on the state portion.
Illinois Exam Study Resources
Everything you need to pass — in one place.
Illinois Agency — Practice Questions & Answers
136 questions on Agency from the Illinois real estate question bank. First 10 are free — sign up to unlock all 136.
Q1. In Illinois, the written disclosure of agency representation must be provided to the consumer:
Explanation
Illinois law requires brokers to provide the Disclosure of Information regarding Real Estate Agency Relationships at first substantive contact with a consumer. This ensures the consumer understands the broker's role before any significant information is exchanged.
Q2. In Illinois, which of the following is permissible with written informed consent from both parties?
Explanation
Illinois permits dual agency (representing both buyer and seller) provided both parties give their written informed consent. Even in a dual agency relationship, the broker must still treat both parties honestly.
Q3. The Illinois Real Estate License Act defines a 'designated agent' as:
Explanation
In Illinois, a designated agent is an individual broker specifically designated by the managing broker to exclusively represent a buyer or seller client in a transaction, even when the brokerage also represents the other party.
Q4. Which of the following is NOT one of the duties a licensee owes to all parties (clients and customers) under Illinois law?
Explanation
Undivided loyalty is a fiduciary duty owed only to the client (the party the broker represents), not to all parties. Duties owed to all parties include honest dealing, disclosure of agency relationships, and disclosure of latent material defects.
Q5. A listing broker discovers that the property has an underground storage tank that has not been disclosed. The broker's duty requires:
Explanation
A known underground storage tank is a latent material defect that must be disclosed to prospective buyers. Even a seller's agent cannot conceal known material defects — the duty of disclosure to all parties requires honesty about material facts.
Q6. Agency by ratification occurs when:
Explanation
Agency by ratification is created when a principal accepts the benefits of, or approves, an agent's unauthorized acts after they occur. By ratifying the action, the principal becomes bound as if they had authorized it from the beginning.
Q7. In Illinois, a broker representing a buyer is called a:
Explanation
A broker who represents the buyer in a transaction is called the buyer's agent (or buyer's broker). The buyer's agent owes fiduciary duties to the buyer, including loyalty, confidentiality, disclosure, obedience, and accounting.
Q8. Under Illinois law, a written buyer-broker agreement is:
Explanation
Illinois requires a written buyer-broker agreement before a broker submits an offer on behalf of a buyer. This agreement outlines the agency relationship, compensation, and the broker's duties to the buyer.
Q9. When a listing broker and a buyer's broker are from the same brokerage firm but represent different parties, this is called:
Explanation
Designated agency occurs when a managing broker designates one broker within the firm to represent the seller and a different broker to represent the buyer, allowing each party to have exclusive representation even though both licensees are from the same brokerage.
Q10. A seller's agent who receives an offer that is below listing price has a duty to:
Explanation
A seller's agent has a duty to present all written offers to the seller promptly, regardless of price. The decision to accept, reject, or counter an offer belongs exclusively to the seller.
Q11. The duty of confidentiality in an agency relationship means the agent must:
126 more Agency questions
Create a free account to unlock all 136 Illinois Agency questions with full explanations.
Free account · No credit card · Instant access to 25 questions
Ready to take the full exam? Start free.
25 free questions · No signup · Instant access to all Illinois topics