Agency
In Illinois, what must a broker do if they discover during a transaction that they have a material conflict of interest with their client?
AContinue with the transaction and disclose the conflict at closing
BImmediately disclose the conflict to the client and allow the client to decide whether to continue the relationship✓ Correct
CTransfer the client to another broker in the firm without disclosure
DNotify IDFPR before informing the client
Explanation
If a broker discovers a material conflict of interest with their client, they must immediately disclose the conflict to the client. The client then decides whether to continue the agency relationship with full knowledge of the conflict. The broker's duty of loyalty requires this transparency.
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