Illinois Leasing Agent Practice Exam

What is the correct statement regarding a $100 check received by a listing agent from another licensee?

1. It is acceptable because the amount is less than $500

2. It is acceptable because the amount is less than $250

3. It is unacceptable because the broker needs to know about this

4. It is unacceptable because it is against the license act to receive payment directly from another licensee

The correct answer is: It is unacceptable because it is against the license act to receive payment directly from another licensee

The understanding that a listing agent should not receive any direct payment from another licensee is grounded in the regulations set forth in the Illinois Real Estate License Act. This act is designed to ensure that all financial transactions related to real estate are conducted transparently and through the appropriate channels, typically the broker. When a listing agent receives a check directly from another licensee, it raises concerns regarding compliance with these regulatory guidelines. Such actions could lead to conflicts of interest or lack of accountability and could violate the provisions of the act that require payment to be handled through their licensed broker. Therefore, direct payments between licensees are generally deemed unacceptable to maintain proper oversight and ethical standards in real estate transactions. The other options suggest scenarios where receiving a payment might be seen as acceptable based on the amount. However, the regulatory framework does not allow for any exceptions based on the payment amount, reinforcing the principle that all financial dealings must adhere strictly to the established protocols. This protects both the agents and their clients by ensuring that all funds are properly accounted for and that all parties are operating within the legal guidelines set for the real estate profession.