Agency
Under the Illinois Real Estate License Act, a single agent may represent both buyer and seller in the same transaction (dual agency) only if:
AThe managing broker approves the arrangement
BBoth parties provide written informed consent after disclosure✓ Correct
CThe transaction involves commercial property only
DThe sale price is under $500,000
Explanation
Illinois law permits dual agency only if both the buyer and seller provide written informed consent after being fully disclosed of the dual agency arrangement and its implications. The agent must disclose that they cannot advocate fully for either party's interests.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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