Difficulty: Medium

Average Score: 60%

In Illinois, who can legally be paid or receive a commission or fee

Rationale

An actively licensed real estate broker who only makes referrals can legally be paid or receive a commission or fee in Illinois.

In Illinois, only licensed real estate brokers are permitted to earn commissions or fees for real estate transactions, even if they are solely making referrals. This requirement ensures that all parties involved in a transaction are held to the standards of professionalism and regulatory compliance established by the state.

A (an actively licensed real estate broker who only makes referrals) CORRECT

This choice is correct because an actively licensed real estate broker, even when only making referrals, is legally allowed to receive a commission or fee. The key point is that the individual must maintain an active license, which validates their ability to engage in real estate activities, including referrals.

B (a factory personnel manager who gives to a real estate licensee the names of employees being transferred out of town) YOUR ANSWER

This option is incorrect because a factory personnel manager does not hold a real estate license and therefore cannot legally receive payment for providing names or leads related to real estate transactions. Only licensed professionals can receive compensation for such activities.

C (an insurance agent who gives to a real estate licensee the name of a new employee moving into town and searching for a house to buy) YOUR ANSWER

This choice is incorrect as well because, like the factory personnel manager, an insurance agent is not a licensed real estate broker. They cannot legally accept commissions or fees for providing leads to a real estate licensee unless they hold a real estate license themselves.

D (a real estate licensee who performed a service while their license is inactive with the Department of Financial and Professional Regulation) YOUR ANSWER

This choice is incorrect because a real estate licensee must have an active license to legally perform services and receive compensation. If their license is inactive, they are not authorized to engage in any real estate activities, including earning commissions.

Conclusion

In Illinois, only individuals with an active real estate license are legally allowed to earn commissions or fees related to real estate transactions, even for referral services. This regulation is critical for maintaining industry standards and protecting consumers. Choices B, C, and D fail to meet the licensing requirement, thereby disqualifying them from receiving any form of compensation in real estate activities.

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