Illinois Leasing Agent Practice Exam

Who is the sponsoring broker required to have a written employment agreement with?

1. Independent contractors only

2. Managing brokers and sales agents

3. Licensed residential leasing agents, brokers, and managing brokers

4. Only licensed brokers

The correct answer is: Licensed residential leasing agents, brokers, and managing brokers

The correct answer emphasizes the requirement for a sponsoring broker to have a written employment agreement with licensed residential leasing agents, brokers, and managing brokers. This is essential in the Illinois real estate framework as it establishes a formal relationship that defines the duties, rights, and responsibilities of both parties involved. Such an agreement ensures clarity in the working arrangement, helping to protect the interests of both the sponsoring broker and the agents they oversee. It delineates compensation structures, expectations regarding performance, and the nature of the work to be done. By having this written documentation, it fosters a professional relationship aligned with state regulations, promoting accountability and transparency in real estate transactions. In this context, the requirement does not limit the written agreement to independent contractors only, nor does it apply solely to licensed brokers without including others in the framework such as managing brokers. Having a comprehensive agreement with all relevant licensed individuals ensures compliance with licensing laws and best practices in the industry.