National Agency relationship guide
Agency and non-agency relationships
Name the people before following the money. Who represents the seller, buyer, landlord or tenant? Is one licensee acting for both sides, or are different licensees separately designated? Then identify the authority for the proposed act. National agency vocabulary helps classify the question, but Illinois has its own statutory relationship rules.
Last reviewed:
The short answer
An agent acts for a principal within authorized powers. Seller, buyer, landlord and tenant agency identify the represented client. Designated agency identifies the particular licensee assigned; dual agency involves representing opposing clients. A customer is not represented by that licensee, even if another licensee represents the customer. National non-agency and limited-representation models vary by state. Illinois uses a designated-agency default and does not permit the transaction-broker or facilitator relationship tested in its state outline. Payment alone does not determine agency.
Reviewed October 25, 2026. PSI National VI.A.1, VI.A.4 and VI.A.5 cover relationship creation, other brokerage relationships and assigned authority. The full Agency domain has 13 of 100 scored national questions, with no separate quota for this page. Illinois IV.A.1-3 covers designated agency, no-agency notice and the transaction-broker/facilitator prohibition. National authority vocabulary is distinguished from Article 15, which governs the covered Illinois consumer-licensee relationship. This guide does not decide whether a disputed instrument binds a principal.
Classify the relationship, then test the authority
- Identify each licensee and consumer. Client and customer are relative to the particular licensee. A buyer can be the buyer agent's client and the listing agent's customer in the same transaction. Cooperation or access through the MLS does not itself establish subagency.
- For Illinois, apply the actual starting rule. Section 15-10 treats a licensee as the designated agent of the consumer the licensee is working with unless a written sponsoring-broker/consumer agreement provides a different relationship. Required writing still matters, but Section 15-50(a-5) prevents the missing-writing shortcut described there. A casual greeting is not automatically the whole relationship analysis.
- Check the scope and the kind of help. Seller-side assistance to an unrepresented buyer under Rule 1450.770(i)(1) follows written no-agency disclosure and remains on the seller's behalf. Calling a task ministerial is not an independent current statutory exception. Do not drift from factual help into buyer advocacy while claiming to represent only the seller.
- Count who represents whom. Separate same-firm designations do not automatically make each licensee a dual agent. If the same licensee represents opposing clients, apply Illinois informed written consent, transaction confirmation, activity limits and independent prohibitions. Consent does not permit prohibited price advice or cure the ownership bar.
- Separate authority from representation. In national vocabulary, actual authority comes from the principal to the agent; apparent authority concerns the principal's manifestations to a third party. Implied authority cannot override an express limit. These concepts do not replace Illinois brokerage or land-contract formalities or supply a missing deed-signing power.
- Read duties and money separately. The client receives the applicable representation duties. Customers retain statutory protections. A seller contribution toward a buyer broker's fee does not, by itself, change the buyer's client status. A lawful non-agent model in another state does not create an Illinois permission.
| Fact | Relationship or authority clue | Check next |
|---|---|---|
| Buyer has a representation agreement | Buyer is the client under the stated terms | Payment source does not change that by itself |
| Same sponsor, separately designated agents | Separate client assignments can remain | No automatic individual dual agency |
| One licensee represents opposing clients | Possible dual agency | Permission, written consent, confirmation and limits |
| Customer has another buyer agent | Still a customer relative to listing licensee | Do not call the person wholly unrepresented |
| Seller-side help to an unrepresented buyer | A qualified customer-assistance path | Written notice first; no buyer advocacy assumed |
| Cooperation or a compensation contribution | Participation or payment | Not automatic subagency |
| Principal privately instructs the agent | Actual-authority issue | Read the scope and express limits |
| Principal creates a third-party appearance | Possible apparent-authority issue | Reasonable reliance and required formalities |
| Principal later adopts an unauthorized act | Possible ratification | Material knowledge, entire act and applicable formalities |
| Illinois neutral transaction-broker proposal | Prohibited state-outline relationship | Use a lawful Illinois role |
| Listing or buyer agreement | Brokerage service authority | Not automatic power to execute a deed |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| Principal vs. client | Principal is the broader agency-law term for the person who authorizes the agent. Client is the common brokerage term for the consumer represented by the licensee. | Authority-giver in agency vocabulary versus represented consumer in brokerage vocabulary. |
| Client vs. customer | A client is represented by that licensee. A customer is not represented by that licensee and may still have another agent. Customer protections remain, but they do not equal the client's representation duties. | Identify this licensee's represented client, then apply the separate customer protections. |
| Seller's agent vs. buyer's agent | A seller's agent promotes the seller client's lawful interests. A buyer's agent promotes the buyer client's lawful interests, regardless of which side supplies compensation. | Whose bargaining position is protected, not who writes the check. |
| Designated agency vs. dual agency | Designated agency assigns a particular licensee to one client. Dual agency occurs when one licensee represents opposing clients in the same transaction. | Different same-firm agents on opposite sides versus one agent on both sides. |
| Customer vs. transaction broker | Customer is a consumer's status relative to a licensee. Transaction broker is a state-specific service model. Some states describe it as limited representation, so the label does not universally mean no representation in any sense. | Person's status versus licensee's statutory service model. |
| Cooperating broker vs. subagent | A cooperating broker participates in the transaction. A subagent owes agency duties to another agent's principal through a valid subagency relationship. | Participation alone versus accepted derivative agency. |
| Express agency vs. implied agency | National express-agency vocabulary concerns stated consent; implied agency concerns a relationship inferred from conduct. Illinois Article 15 supplies its own default and required writing, and missing writing does not automatically prove no agency existed. | Words or writing versus behavior, followed by a state-formality check. |
| Actual authority vs. apparent authority | Actual authority comes from principal to agent. Apparent authority comes from the principal's manifestations that reasonably influence a third party. | What the agent was told versus what the outsider was led to believe. |
| Implied authority vs. implied agency | Implied authority concerns acts reasonably incidental to an existing agency. Implied agency concerns whether an agency relationship arose from conduct in the first place. | Scope of an established relationship versus creation of a relationship. |
| Special agent vs. general agent | In national vocabulary, a special agent has authority for a limited matter; a general agent has authority across a continuing range of matters. The actual grant still controls, and the label does not replace Illinois Article 15. | Broker hired for one sale versus manager running recurring property operations. |
| Brokerage agreement vs. power of attorney | A brokerage agreement authorizes licensed services within its scope. A power of attorney gives an attorney-in-fact the legal authority stated in that instrument, which may include signing for the principal. | Market and negotiate versus execute a document in the principal's name. |
| Compensation source vs. representation | Compensation identifies who funds or owes a fee. Representation identifies the client to whom agency duties are owed. One does not automatically establish the other. | Money path versus duty path. |
Work through the facts
The listing-side commission does not identify the buyer's agent
A buyer signs a representation agreement with Broker B. The seller's listing agreement provides the funds from which Broker B will be paid. A question asks whom Broker B represents.
- The buyer entered a representation relationship with Broker B.
- The listing side's contribution to compensation is a separate money fact.
- Payment does not convert Broker B into the seller's agent or subagent.
Answer: Broker B represents the buyer under the given agreement. The funding contribution alone does not make B the seller's agent or subagent.
Same company does not always mean one dual agent
An Illinois seller is represented by Licensee S and the buyer is represented by Licensee B. Both licensees work for the same sponsoring broker and each was designated to a separate client.
- Illinois designation identifies the individual legal agent or agents for each client.
- Other affiliated licensees are excluded from that designation.
- Neither Licensee S nor Licensee B represents both opposing clients on these facts.
Answer: On these separate-designation facts, neither individual is automatically a dual agent. Sponsor supervision, confidentiality safeguards and the actual assignments still matter.
Seller-side assistance has a specific Illinois path
An Illinois listing licensee has the executed seller agreement. Before the specified help, the licensee gives an unrepresented buyer written notice that the licensee does not represent the buyer. The licensee then provides factual property information on the seller's behalf, without buyer advocacy.
- Rule 1450.770(i)(1) addresses this seller-side activity with an unrepresented buyer after the written notice.
- A task label alone does not create the exception or decide every later act.
- Section 15-35(c) also requires notice timed to prevent confidential information disclosure, no later than offer preparation.
Answer: Keep the help within the stated seller-side role and customer protections. Do not infer buyer representation or permission for every form-drafting or negotiating act.
The agent cannot manufacture apparent authority
In a general national authority scenario, the principal grants only advertising and offer-presentation authority. Without any principal manifestation suggesting more, the agent alone tells a third party that the agent may accept any full-price offer for the principal.
- Actual authority does not include acceptance on the stated facts.
- Apparent authority must arise from the principal's manifestations to the third party.
- The broker's unsupported claim cannot enlarge the broker's own authority.
Answer: The stated grant does not authorize acceptance, and the agent's unsupported claim alone does not establish apparent authority. This classifies the concept rather than deciding a live Illinois contract dispute.
A national relationship label fails the Illinois overlay
An Illinois licensee proposes to help a seller and buyer as a neutral facilitator, without representing either party and without using Illinois dual-agency procedures.
- Facilitator is a relationship category included in the national outline because some jurisdictions use it.
- The PSI Illinois state outline specifically tests the prohibition, and the current Illinois default and agreement rules do not authorize this proposed neutral role.
- Calling the service neutral does not remove the statutory prohibition.
Answer: The proposed Illinois neutral-facilitator relationship is not permitted. Use the lawful relationship and required procedures; ordinary customer assistance does not become forbidden merely because it helps the transaction.
Marketing authority is not deed-signing authority
A seller gives a broker an exclusive listing agreement. The seller leaves the country before closing, and the buyer asks the broker to sign the deed for the seller.
- The listing agreement authorizes brokerage services, not every legal act related to the sale.
- A deed signature transfers the principal's property interest and requires authority adequate for that act.
- A power of attorney, if offered, must be valid, effective, and broad enough to cover the conveyance.
Answer: The broker cannot sign merely because the broker holds the listing. Confirm separate signing authority and obtain legal guidance.
Missing writing does not erase the default
A licensee has been working with an Illinois consumer in a representation role but failed to obtain the required brokerage writing. The licensee claims that the missing document automatically proves no agency or legal claim could exist.
- Section 15-10 supplies the designated-agency starting rule.
- Section 15-50(a-5) addresses the absence of writing and the described defense.
- The duty to obtain writing remains.
Answer: Reject the automatic no-writing/no-agency conclusion without treating the writing failure as permitted or deciding every claim's enforceability.
A represented buyer is another licensee's customer
Licensee S represents the seller. Licensee B represents the buyer. The buyer asks S a question about the property.
- The buyer is B's client.
- The buyer is not S's represented client merely because S answers a permitted factual question.
- Customer is a relative status, not proof the buyer has no representation anywhere.
Answer: The buyer is S's customer and B's client on the stated facts.
Dual consent does not permit bargaining advice to either side
An Illinois dual agent has the required informed written consent. The agent then proposes to recommend the exact price the buyer should offer and the exact counteroffer the seller should accept.
- Dual-agency consent does not remove the statutory limits on advocacy.
- Section 15-45 distinguishes permitted information, such as comparable sales, from the prohibited price and term recommendations.
Answer: The dual agent must not give those prohibited recommendations, even with the clients' consent.
A known fact pattern suggests ratification, not prior authority
In a national agency example, an agent professes to act for a principal without prior authority. The capable principal later knowingly adopts the entire act, and the required legal formalities are satisfied.
- The authority was not granted before the act.
- The supplied later adoption and material knowledge illustrate ratification.
- A live matter still requires the applicable law and formalities; acceptance of a benefit is not an automatic cure for every defect.
Answer: Ratification is the relevant concept on these supplied facts.
Another state's limited representation does not define Illinois
A national question expressly uses Florida's statutory transaction-broker model and asks whether it gives the same undivided fiduciary loyalty as single agency.
- Florida describes transaction brokerage as limited representation, rather than single-agent fiduciary representation.
- That state also distinguishes a no-brokerage relationship.
- Illinois does not adopt the model merely because another state permits it.
Answer: Apply the stated state model. Do not equate all transaction brokerage with either full single agency or no representation in every sense.
Mistakes to avoid
- The seller pays, so every broker represents the seller. Payment does not determine agency. A buyer's broker may be paid through transaction funds while continuing to represent the buyer.
- A cooperating broker is automatically the listing broker's subagent. Cooperation and subagency are different. Find an accepted subagency relationship rather than assuming one from MLS participation or compensation.
- All licensees in one brokerage represent every company client. Under Illinois designated agency, named licensees represent the client to the exclusion of other affiliated licensees, subject to the statutory framework.
- Two agents from one firm on opposite sides must each be dual agents. Separately designated agents may represent opposing clients. Dual agency focuses on one licensee representing both sides.
- A transaction broker is just another word for customer. Customer is a consumer's relative status. Transaction brokerage is a jurisdiction-specific model that may be described as limited representation; it is not permitted as the Illinois role.
- Because PSI lists facilitators, an Illinois licensee may act as one. The national outline covers models used across jurisdictions. Illinois prohibits transaction brokers and facilitators.
- An agent can create apparent authority by announcing it. Apparent authority rests on the principal's manifestations and the third party's reasonable belief, not the agent's claim alone.
- Implied agency and implied authority mean the same thing. Implied agency concerns creation of the relationship. Implied authority concerns incidental powers within an already existing relationship.
- A listing agreement gives the broker power to sign for the seller. Ordinary brokerage authority does not itself grant attorney-in-fact power to execute a deed or contract in the principal's name.
- A power of attorney always grants unlimited authority. The instrument's language, effective status, statutory requirements, and any express limits control the agent's power.
- A customer is owed no duties because the customer has no agent. Customer protections remain even without representation by this licensee. The actual statute supplies the duties and qualifications; they are not identical to client advocacy.
- Calling the task ministerial automatically avoids Illinois agency. Apply the current statutory default and the actual disclosed customer-assistance path. The former standalone ministerial exception is not the current rule.
- Missing required writing automatically defeats every agency or agreement claim. Apply the statutory default and Section 15-50(a-5) without excusing the writing failure or deciding every claim in advance.
- A customer has no agent anywhere. Customer is relative to this licensee. The person may be another licensee's client.
Check your understanding
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. A seller's listing broker offers compensation to a buyer's broker. The buyer and buyer's broker have a valid representation agreement. Whom does the buyer's broker represent?
- The buyer
- Neither party
- Both parties automatically
- The seller, because the listing side funds compensation
Show answer and explanation
Answer: A. The buyer
The representation agreement establishes the buyer as client. Compensation source does not by itself determine agency.
2. Which fact is most important when deciding whether a cooperating broker is a subagent of the seller?
- The broker accessed the property through the MLS
- The listing brokerage offered compensation
- The broker attended the inspection
- The broker accepted a subagency relationship permitted by law
Show answer and explanation
Answer: D. The broker accepted a subagency relationship permitted by law
Subagency depends on a valid agency relationship. Cooperation, access, attendance, and compensation do not create it automatically.
3. An Illinois licensee offers to act as a neutral transaction broker for both sides without representing either. What is the best response?
- Decline because Illinois prohibits transaction brokers and facilitators
- Accept because neutrality eliminates all conflicts
- Accept if the offer is below list price
- Accept only if the seller pays no commission
Show answer and explanation
Answer: A. Decline because Illinois prohibits transaction brokers and facilitators
The Illinois state outline specifically tests the prohibition. National familiarity with transaction-broker models does not make the role lawful in Illinois.
4. A national question asks only which authority concept concerns a third party's reasonable belief. The principal privately limits the agent but publicly tells the third party that the agent has broader authority. Which concept fits, without deciding actual contract enforceability?
- Apparent authority
- Subagency
- Universal agency
- Customer status
Show answer and explanation
Answer: A. Apparent authority
Apparent authority concerns the principal's manifestations and the third party's reasonable reliance. This concept question does not dispense with statutory writing, capacity or other enforcement requirements.
5. A property manager has continuing authority to collect rent, arrange routine maintenance, and negotiate renewals within stated limits. Which category best fits?
- Special agent for one isolated act
- Subagent solely because rent is collected
- Customer
- General agent for a continuing range of matters
Show answer and explanation
Answer: D. General agent for a continuing range of matters
A property manager commonly illustrates general agency because the authority covers recurring matters in an ongoing operation. The written scope still controls the exact powers.
6. An Illinois licensee working with a consumer in a representation role failed to obtain required writing and claims that no agency or legal claim could therefore exist. Which is correct?
- The writing failure guarantees all services were free
- The statute no longer requires writing
- Every oral allegation must automatically prevail
- Apply Section 15-10 and Section 15-50(a-5); missing writing is not that automatic shortcut
Show answer and explanation
Answer: D. Apply Section 15-10 and Section 15-50(a-5); missing writing is not that automatic shortcut
Writing remains required. The designated-agency default and the specified absence-of-writing qualification must be considered without guaranteeing any actual claim's result.
7. Licensee S represents the seller and Licensee B represents the buyer under separate designations in one Illinois firm. What follows merely from the common sponsor?
- The buyer becomes unrepresented
- Confidentiality duties disappear
- It does not automatically make each licensee a dual agent
- Both automatically represent every client in the company
Show answer and explanation
Answer: C. It does not automatically make each licensee a dual agent
Apply the actual designations, statutory structure and safeguards. Shared sponsorship alone does not mean each individual represents both opposing clients.
8. An Illinois seller's licensee uses Rule 1450.770(i)(1) to provide the stated seller-side licensed help to an unrepresented buyer. Which condition is required before that help?
- Written disclosure that the licensee is not acting as the buyer's agent
- The buyer must first disclose the highest acceptable price
- The seller must waive all customer protections
- The licensee must call the task ministerial
Show answer and explanation
Answer: A. Written disclosure that the licensee is not acting as the buyer's agent
The rule requires the seller/owner agreement and the written no-agency disclosure before the specified customer-assistance path. Notice timing under Section 15-35(c) also matters.
9. An Illinois dual agent has the required informed written consent. May the agent therefore recommend exactly what the buyer should offer or the seller should accept?
- Yes, if the agent is paid only once
- Yes, if the parties use different banks
- Yes, because any consent removes every restriction
- No; those prohibited bargaining recommendations remain restricted
Show answer and explanation
Answer: D. No; those prohibited bargaining recommendations remain restricted
Section 15-45 distinguishes permitted information from the prohibited negotiating recommendations. Written consent does not erase those limits.
10. A buyer has a separate buyer agent but asks the seller's listing licensee a permitted factual question. Relative to that listing licensee, which status fits the supplied facts?
- Automatically the listing licensee's client
- The listing licensee's sponsoring broker
- Customer, while remaining the buyer agent's client
- The listing licensee's principal under a new POA
Show answer and explanation
Answer: C. Customer, while remaining the buyer agent's client
Customer is relative to the licensee whose duties are being considered. It does not mean the buyer has no agent anywhere.
11. Under Section 15-10, whose written agreement provides the described different-relationship exception to the Illinois designated-agency default?
- The sponsoring broker and the consumer
- Any buyer and any property inspector
- The licensee alone, through a private note
- The lender and the seller's insurer
Show answer and explanation
Answer: A. The sponsoring broker and the consumer
The statute names the sponsoring broker and consumer. A unilateral neutral label is not the written exception or permission for a prohibited role.
12. In a national example, a capable principal later knowingly adopts the entire unauthorized act, with the required formalities satisfied. Which concept is most relevant?
- Ratification
- Automatic initial express authority
- Customer status
- Compensation source
Show answer and explanation
Answer: A. Ratification
The supplied later adoption concerns ratification, rather than proof that authority existed before the act. Actual legal sufficiency still depends on the applicable law and facts.
Common questions
What is an agency relationship in real estate?
In national vocabulary, a principal authorizes an agent to act on the principal's behalf within a defined scope. The represented brokerage consumer is the client. For Illinois consumer-licensee relationships, Article 15 supplies the statutory framework; general common-law vocabulary is not a substitute for its default, agreement, disclosure and duty provisions.
What is a non-agency relationship?
It is a service relationship that does not carry the particular agent/principal representation described by the jurisdiction. Transaction broker, facilitator and non-agent are state-specific labels. Their duties and even the meaning of representation vary. For example, Florida calls transaction brokerage limited representation and separately recognizes no brokerage relationship. Do not apply that model as an Illinois permission.
What is the difference between a client and a customer?
A client is represented by the particular licensee. A customer is not represented by that licensee but may have another agent. Illinois customers are owed honest treatment and protection against negligent or knowing false information. Section 15-25 also requires a seller-engaged licensee to timely disclose to prospective buyer customers actually known latent material adverse physical facts not discoverable by a reasonably diligent customer inspection. That qualified rule is not identical to all client duties.
Does the person who pays the commission determine agency?
Payment or its promise alone does not determine agency under Section 15-40. A buyer broker can remain the buyer's representative when another party contributes to the fee under the applicable arrangements. The fee promise, contribution and representation are separate questions; correct agency classification does not approve every payment.
What is designated agency in Illinois?
The sponsoring broker's agreement identifies the licensee or licensees acting as that client's legal agents, rather than automatically making all affiliated licensees the client's agents. Section 15-10 supplies the designated-agency default unless the sponsoring broker and consumer agree in writing to a different lawful relationship. Designation does not remove sponsor supervision or confidentiality responsibilities. Section 15-35(a) requires written relationship identification and the designated agent names no later than beginning that work, with the required consumer copy and sponsor records.
Are two same-firm agents automatically dual agents?
No. Separately designated licensees can represent the opposing clients without each becoming a dual agent merely through the common sponsor. Check whether the same licensee actually represents both sides and whether the assignments and safeguards are followed. Article 15 and the confidentiality rules still govern the firm's handling of information.
Is a cooperating broker automatically the seller's subagent?
No. Cooperation, access, MLS participation or a compensation contribution does not itself establish subagency. National subagency vocabulary concerns a valid derivative agency relationship under the applicable law and authority. Identify the actual relationship; do not assume that a cooperating buyer broker works for the seller.
What is actual authority compared with apparent authority?
Actual authority concerns what the principal confers on the agent, expressly or through permitted incidental acts. Apparent authority concerns what the principal's manifestations lead a third party reasonably to believe. The agent's claim alone does not establish it. This national distinction does not decide a particular Illinois land contract's enforceability or excuse required written signing authority.
Are implied agency and implied authority the same?
No. Implied agency asks whether a relationship arose from conduct. Implied authority asks what incidental acts fit an existing grant. Neither label is a shortcut around Illinois's statutory default, writing requirements or an express limit on what the agent may do.
Can an Illinois licensee act as a transaction broker or facilitator?
No. The Illinois state outline expressly tests that prohibition. The national outline includes these models because the exam covers concepts used in different jurisdictions. A customer interaction or an ordinary transaction-coordination task is not automatically the prohibited model, but renaming a neutral brokerage relationship does not make it lawful.
Can a seller's licensee help an unrepresented buyer?
Rule 1450.770(i)(1) permits the stated licensed activities on the seller's behalf with an unrepresented buyer or tenant after written no-agency disclosure, where the seller or owner agreement is executed. Stay within that role and the applicable limits. Section 15-35(c) also requires customer notice timed to prevent confidential disclosures, no later than offer preparation. A friendly explanation or ministerial label is not an independent current safe harbor.
Does no written agreement automatically mean no client relationship?
No. Required writing and the consequences of missing writing are different issues. Apply Section 15-10 and Section 15-50(a-5), which addresses the absence of a written agreement as the described affirmative defense. That does not authorize ignoring writing or guarantee every alleged oral agreement is enforceable.
What writing and timing rules apply to the relationship?
Section 15-50 requires the written brokerage agreement and designation. Rule 1450.770 requires seller or owner agreements before marketing or listing, and buyer or tenant agreements before or as soon as reasonably practical after the specified licensed assistance. The earlier customer-assistance and dual-agency conditions in subsection (i) still apply. Do not turn the general buyer wording into indefinite oral representation.
When does Illinois dual agency require consent and confirmation?
Before acting as a dual agent, obtain the informed written consent of all clients under Section 15-45. The statute also requires the specified transaction confirmation. Initial consent and transaction confirmation are separate steps. When a seller-side licensee begins buyer-side dual representation, Rule 1450.770(i)(2) also requires the buyer or tenant agreement and statutory compliance before that activity.
Can consent waive every dual-agency restriction?
No. The dual agent cannot provide the prohibited negotiating-price and term recommendations merely because both clients consent. The statutory ownership prohibition also remains independent. Permitted comparable-sale information differs from telling the buyer what to offer or the seller what to accept.
Do same-firm agents have unrestricted access to each other's client information?
No. Apply Section 15-50 and Rule 1450.800 safeguards. The Act permits specified sponsor-side advice or assistance disclosures for the client's benefit under its conditions, rather than unrestricted sharing with opposing agents. Nor should the rule be overstated as forbidding every authorized supervisor consultation.
Does a brokerage agreement let the broker sign the client's deed?
Not by itself. Marketing, negotiating and presenting an offer differ from executing the owner's conveyance. A property POA or other lawful authority must cover the act, satisfy applicable requirements and remain effective. Review the actual instrument; do not infer unlimited signing power from an exclusive listing.
What is ratification?
It is later adoption of an act undertaken without the prior authority required for it. National examples commonly involve a principal with material knowledge adopting the entire act. Capacity, required formalities and applicable law still matter. Do not assume that a benefit, silence or the word ratified automatically makes every transaction binding.
How do special and general agency differ?
National vocabulary uses special agency for a limited matter or transaction and general agency for a continuing range of authorized matters. A property manager's recurring assigned tasks can illustrate the latter. A job title, general label or POA heading does not by itself grant every power; read the actual scope.
Are these actual PSI questions or a passing prediction?
No. These are original teaching scenarios supporting the public June 24, 2026 outline. The source notes distinguish older national vocabulary from the current Illinois statutes and rules. Explain the relationship, authority, duty and jurisdiction before revealing the answer; a practice score is not a validated passing prediction.
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Official sources and scope
Checked October 25, 2026 using the current Illinois provisions and the identified earlier actual primary readings. The older DRE reference supports national authority vocabulary only; its California rules are not applied as Illinois law. Florida is an explicit comparison of a different statutory model. The PSI state outline identifies the Illinois transaction-broker/facilitator prohibition. All questions are original, and a particular agreement, payment, signing power or disputed contract is not approved.
- PSI June 24, 2026: National VI.A.1, VI.A.4-5 and Illinois IV.A.1-3
- 225 ILCS 454/1-10: client, customer and confidential information
- 225 ILCS 454/15-10: designated-agency default
- 225 ILCS 454/15-15: client duties
- 225 ILCS 454/15-25: customer protections
- 225 ILCS 454/15-35: written identification and customer notice
- 225 ILCS 454/15-50: writing, designation and oral claims
- 225 ILCS 454/15-40, current rule that compensation does not determine agency
- 68 Ill. Adm. Code 1450.770, July 13, 2026: required terms, timing and protection periods
- 68 Ill. Adm. Code 1450.800: confidentiality safeguards
- 225 ILCS 454/15-5: Illinois statutory brokerage relationships
- 225 ILCS 454/15-45: informed consent, confirmation and prohibited dual roles
- 68 Ill. Adm. Code 1450.820: ownership prohibition
- Florida Statutes 2026, Section 475.278: limited representation comparison
- California DRE chapter 10: national authority vocabulary only
- 755 ILCS 45/3-3: property form, execution and agent notice
- 755 ILCS 45/3-4: retained statutory powers and limits
- 755 ILCS 45/2-5: duration, amendment and revocation
- Illinois General Assembly, 740 ILCS 80/2 contracts for sale of land and interests
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.