Not-so Secret Agent Man Part Three

Today, we get a little bit tricky in learning about agency disclosure. Again, real world applications in parenthesized green italics:

Required Agency Disclosure Under the Illinois Real Estate License Act of 2000

No later than entering a brokerage agreement (can be a verbal agreement), you must be advised of the following from the brokerage company:

• That a designated agency relationship exists
• The name of your designated agent(s) in writing
• What the brokerages company will be paid and the company's policy regarding payment of other brokerage companies that might be involved in your transaction (This is more prevalent in a listing agreement. You wouldn't let your agent list your property without negotiating a commission to be paid, would you? Make certain you know what your agent intends to pay out to a buyer's brokerage-should there be one.)

Disclosed Dual Agency

• Sometimes a designated agent can represent both you and the opposite party in the transaction (Example: I have a listing that a potential buyer contacts me to see)
• Before doing so, the agent must have the informed written consent of both parties (Usually this will be discussed with a seller at time of listing the property for sale)
• If your designated agent might act as a dual agent, he/she/they should speak with you about the potential for dual agency and give you a disclosure form entitled "Disclosure and Consent to Dual Agency" for your review
• ***You will see that the agent's role becomes limited when you have dual agency
• ***You are under no obligation to consent to disclosed dual agency
• If you do consent, you must sign the disclosure form before the agent acts as a disclosed dual agent
• ***Sometimes, this language will be included in your written brokerage agreement (Like it is usually discussed in the listing agreement- ALWAYS with me- it is also discussed at time of agreeing to use an agent as an exclusive buyer's agent)
• You will be asked to sign a confirmation of your consent to dual agency no later than when you sign a purchase or lease contract (This is a last gasp attempt at being legal. In reality you have read that it should be signed at listing and when becoming an exclusive buyers agent OR before viewing property with an agent that also has it listed)

I think it's important to note that this only applies in situations with an AGENT, not a brokerage. For example- if I show you a listing of MINE, the sellers and you would need to consent to dual agency. If you show you another Century 21 Coleman-Hornsby listing that is NOT MINE, it does not apply.

This is part three of a five part series on The Consumer's Guide to Real Estate Agency in Illinois. Parts one and two can be found below.