Real Estate Agency in
Illinois -
what you NEED to know.
Agency Disclosure...
Know who your legally
designated agent is?
Who is, will be, or
should be representing
you?
What type of agency
relationship do you
have?
It must be in writing,
is it?
Buyers agent, sellers
agent, dual agent,
single agent, sub-agent,
agency, dual agency,
what does it all mean,
how does it work, and
who represents you?
Are you a client,
customer, or consumer?
Is there a difference?
You betcha! A HUGE
difference!
Hopefully, this will answer some of your questions - or at
least let you know what
questions to ask of any
agent you're working
with to buy or sell
property.
One thing I've noticed when I'm on the internet is how
differently agency is
explained and the
various statements made
concerning agency. Here
are some examples:
One site says, "All agents represent the sellers."
(called Sub-Agency) This
statement implies this
is nationwide,
not true.
Not allowed in Illinois
any more.
Another says, "They only represent sellers."
(called Exclusive Sellers Agency)
Another says, "They only represent buyers."
(called Exclusive Buyers Agency)
Another says, "They can represent buyers and sellers."
(called Dual Agency)
Another says, "They represent the person they are working
with - buyer and/or
seller."
(called Designated Agency)
Another says, "The same agent can represent both the
buyer and seller at the
same time."
(called Dual Agent).
This must be in writing,
from the beginning, with
the written acceptance
of this type
relationship between all
parties - sellers,
buyers, and agent
Another says, "We will help the seller and buyer put the
sale together, without
representing either
party.
(called Transaction
Agency or No Agency
Agreement).
This is why you should
read our
Internet Warning!
And, guess what! Even though they may seem to be saying
exactly the opposite
from each other, they
all may be accurate
statements. Hmmm....?
Confused? How is this
possible you may ask.
Here is some general
information, if you want
or need more specifics,
contact legal counsel
for advice and guidance
for your area,
for your situation and
even though an agent is
supposed to discuss
their agency policy at
first significant
contact, if they don't
you need to ask them
what their policy
is for agency and who
they will be
representing - BEFORE
you disclose
confidential information
to the agent.
Agency does have some federal laws which apply.
Additionally, each state
can individually have
their own laws
pertaining to agency,
and some state's give
the individual real
estate s a choice of
which type of agency
policies it will
practice (as it does in
Illinois). Now does it
make some sense? To
simplify - agency is
controlled by the
federal government, then
the state government,
then it breaks down to
policy.
Based on this information, you can have a real estate that
says:
* we will work
only with buyers
- they exclusively
practice buyers agency;
and all agents are
buyers agents.
* another that says we will work
only with sellers
- they exclusively
practice sellers agency;
they only take property
listings and work with
sellers.
* another that says we will offer
sub-agency
- all agents represent
only the sellers
- regardless who the
agent is working with,
even if it's the buyer
- by the way, sub-agency
is
not allowed in Illinois
any longer;
* another can offer
dual agency
-
the has some agents who
will be representing
sellers and some agents
who will be representing
buyers; and each
individual agent may
represent sellers and
the same agent may also
represent buyers; each
agent represents
whomever they are
working with, regardless
if they are the buyer or
seller).
* where an allows dual agency,
if an agent has a
property listed for sale
and that same agent is
also working with a
buyer who wants to buy
the property they have
listed, then with the
written, informed,
consent of all parties,
that agent is a
dual agent
-
where the one agent
represents both the
seller and the buyer.
An agent will have be be
neutral between all
parties and cannot
reveal confidential
information to either
party about the other
party involved in the
transaction without
written permission to do
so in order to be a dual
agent. An agent will be
somewhat limited by what
they can do. But the
agent should present the
pros and cons to you as
it applies to your
situation based on what
one party wants to do.
Then it's your decision
to accept it, counter
it, or altogether reject
it.
Now, if you want to get any deeper than this, please call
your attorney for a
thorough
explanation. Allow me to
give you the scenario
for me and my
specifically, and in
accordance with Illinois
laws pertaining to
agency.
Illinois State Law
Agency Representation
Our Policy
As a consumer, I have to notify you in writing at first
significant contact that
disclosure of
confidential information
to me could create a
designated agency
relationship, whether
intended or not. I also
have to let you know who
I represent, if any one,
at first significant
contact. You will also
be asked to sign a
receipt acknowledging
this written disclosure
for everyone's records.
We are required by law
to have this on file
should we ever be
audited for compliance
to the laws governing
our industry. To answer
very general real estate
questions, it creates
nothing more than a
non-binding, lawful
broker-consumer
relationship between us.
So, if you are not ready to become my client where I would
represent you, please do
not disclose
confidential information
(divorce, relocation,
motivation to sell
and/or buy, financial
information, property
specifics, price range,
or anything else that
could affect your
negotiating power, etc.)
to me.
Until then, I can give
you information and
answer questions like:
describing our brokerage
services and fees
charged; give you
information about prices
and locations of a
properties; answering
questions about a
property; set an
appointment to see
property.
Current (Illinois) state
law presumes the
licensee represents the
consumer they are
working with (buyer or
seller), unless you have
a written agreement
stating a different type
of relationship has been
created.
If you are a
seller,
I represent you as your
legally designated
agent, according to the
terms of our mutual
listing agreement
contract.
If you are a
buyer,
once you begin telling
me the type of property
you want and I respond
by letting you know what
types of properties are
available, I am no
longer performing
"ministerial acts"
whereby you are merely a
consumer, by our actions
you then become my
client.
This office has chosen
to allow
dual agency,
where it will be up to
the individual agent to
decide if they want to
work with sellers,
buyers, or both. My
also allows an agent to
be a disclosed (in
writing)
dual agent,
where the agent
represents both the
seller and the buyer in
the same transaction.
When you meet with your
agent the time, you'll
review your
representation options
and things will be
clearly explained so you
can confidently make
your choices.
Also, I can work with
many sellers and buyers
simultaneously, and so
can other agents in my
. Sometimes, I and/or
one of the other agents
from my may have another
client interested in
buying the same property
as you, and sometimes
multiple offers do
occur. Each offer is
presented to the
seller/sellers agent for
review and their
decisions are made known
to the parties
involved. Everyone is
treated fairly and
honestly.
In all cases, regardless who we represent, we are required to
treat all parties to a
transaction fairly and
honestly - subject to
confidentiality
limitations, and to
disclose any material
defects we are aware of
to the other party. If
an agent becomes aware
of the sellers or buyers
inability to perform
according to the
contract terms, this
becomes an adverse
material fact that must
be disclosed in writing
to the other party.
This duty of disclosing
adverse material facts
overrides the duty of
confidentiality.
Some Definitions:
Agency - Any relationship in which one party acts for or represents
another.
Buyers Agency - An / agent who chooses to represent only buyers.
Sellers Agency - An / agent who chooses to represent only sellers.
Dual Agency - Where an will allow each agent to represent sellers,
buyers, or both.
Sub-Agency (No longer allowed in Illinois)
- Where an agent
indirectly represents
the same client as
another agent, usually
the seller, even if the
sub-agent is working
with the buyer, who
would be considered a
customer. The sub-agent
owes his loyalties and
responsibilities to the
client only.
Dual Agent - An agent who represents equally both seller and buyer in
the same transaction,
with the written,
informed consent of all
parties.
Designated Agent - In Illinois, the licensee who has direct contact
with the buyer or seller
is the ONLY agent
considered to be the
legal designated agent
of that buyer or seller,
as named by the broker
in accordance with
policy.
Client - The person who is being represented by a licensee (agent),
unless there is a
written agreement
between the agent and
the consumer providing
for a different
relationship.
Customer - A consumer who is not being represented by a licensee but
for whom the licensee is
performing ministerial
acts (i.e. answering
general real estate
questions about
properties, areas, etc.
Please note: once the
customer starts
detailing his/her search
criteria, price range,
etc. that customer then
becomes a client of the
agent. So if you do not
want to create an
agent/client
relationship, do not
disclose specific
information to the
agent.)
Consumer - A person or entity seeking or receiving real estate
general brokerage
services.
Helping
You Make Wise, Informed
Decisions So You Can
Reach Your Destination
How may we help you?
Brought to you by the
trusted and respected real estate
consultants at:
|
2021 Midwest Rd,
Ste 200
Oak Brook, IL
60523
630.495.2888
By
Appointment Only
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You!
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