Question 44

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 authorized to receive commissions or fees for their services, including making referrals. This aligns with the legal framework governing real estate transactions in the state.

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

This option is correct because an actively licensed real estate broker is permitted to earn a commission or fee for referrals, as they are recognized by the state regulatory body. Their active license ensures compliance with legal requirements in real estate transactions.

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

This option is incorrect because a factory personnel manager does not hold a real estate license and is therefore not entitled to receive any commission or fee for providing referrals related to real estate. Only licensed professionals are permitted to engage in activities that involve financial remuneration in real estate.

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

This option is incorrect as well. An insurance agent, despite providing a referral, does not have a real estate license and thus cannot legally receive payment for such referrals. Compensation for real estate-related referrals is restricted to licensed real estate professionals.

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

This option is incorrect because an inactive real estate licensee is not authorized to conduct any real estate activities, including receiving commissions or fees. Payment for services rendered can only occur when the license is active and in good standing.

Conclusion

The correct answer, an actively licensed real estate broker who only makes referrals, is the only option that complies with Illinois law regarding the payment of commissions or fees in real estate transactions. All other options fail to meet the legal requirement of holding an active real estate license, which is essential for receiving compensation in this field.