Illinois Leasing Agent Practice Exam

If an agent misrepresents the terms of a lease without the owner's knowledge, who is liable according to the Illinois License Act?

1. The agent is liable; the owner is not

2. Both the agent and the owner are liable

3. The owner is liable; the agent is not

4. Neither the agent nor the owner is liable

The correct answer is: The agent is liable; the owner is not

In the scenario where an agent misrepresents the terms of a lease without the owner's knowledge, the agent bears the responsibility for the misrepresentation. This is grounded in the principle that agents act on behalf of their clients, but they must also adhere to ethical standards and legal regulations in their conduct. Under the Illinois License Act, an agent is required to conduct their business honestly and cannot make representations that are false or misleading, regardless of whether the principal (the owner) is aware of those misrepresentations. This accountability emphasizes the importance of agents maintaining professional integrity and ensuring that all statements made regarding leases are accurate. If an agent engages in deceptive practices, they are subject to liability because their actions violate both the ethical standards expected of licensed professionals and the legal obligations set forth in the licensing statutes. The owner, being unaware of the agent's false claims, typically isn't held liable in this situation, as they cannot be responsible for actions taken by their agent without their knowledge. This allows owners to have some protection against the wrongful actions of their agents, promoting a system where agents are solely responsible for their unethical behavior.