Agency
An Illinois broker who represents a buyer finds a 'For Sale By Owner' (FSBO) property that matches the buyer's needs. The broker should:
ARefuse to show FSBO properties because no commission will be paid
BContact the seller to negotiate a compensation agreement or inform the buyer of potential compensation issues before proceeding✓ Correct
CShow the property without telling the seller they represent a buyer
DRequire the seller to enter a listing agreement before proceeding
Explanation
A buyer's broker should contact the FSBO seller to negotiate a compensation agreement (often the seller agrees to pay the buyer's agent's commission in FSBO transactions to attract buyers). The broker should inform their buyer client about any compensation issues. The broker must also disclose their agency relationship to the seller.
Related Illinois Agency Questions
- What is 'ratification' of an agent's unauthorized act in Illinois real estate?
- What is the primary legal obligation an Illinois buyer's agent owes the seller (the other party) during a transaction?
- What is the 'duty of loyalty' owed by an Illinois real estate agent to their principal?
- Under the Illinois Real Estate License Act, a single agent may represent both buyer and seller in the same transaction (dual agency) only if:
- An agent who is representing both the buyer and seller in the same transaction without full written consent from both parties has committed:
- What is 'informed consent' required for in an Illinois designated agency situation?
- What is 'informed consent' in the context of an Illinois dual agency relationship?
- A subagent in a real estate transaction is:
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