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Agency
in Illinois
Internet Warning!
Agency Disclosure and Your Type
of Agency Relationship Must Be In Writing
?
? ?
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
bet!
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. If you takes a few minutes to read this
section, it should begin to make sense and you'll be a wiser
consumer .
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.
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
Dual Agency)
Another
says,
"The same agent can represent both
the buyer and seller at the same time." (called
Dual Agent)
Another
says,
"We will help the seller and buyer put the sale together,
without representing either party. (called
Transaction Agency)
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,
and even though an agent is supposed to discuss their agency
policy at first significant contact, if they don't you'll need to ask
them what their office policy
is for agency.
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 offices a choice
of which type of agency policies it will practice. Now does it
make some sense? To simplify - agency is controlled by the
federal government, then the state government, then it breaks down
to office policy.
SG
copyright protected
Based
on this information, you can have a real estate office
that says:
*
we will work only
with buyers
-
they exclusively practice buyers agency;
*
another office that says we will work only
with sellers
-
they exclusively practice sellers agency;
*
another office 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 office can offer dual
agency
- the
office 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 office 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.
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 office specifically, and in accordance with Illinois
laws pertaining to agency.
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.
Illinois
State Law
Agency
Representation
Our
Office 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 between us, whether intended or not, and who I
represent, if any one at that point in time. You will
also be asked to sign a receipt acknowledging this written
disclosure for everyone's records.
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, or anything else that could affect your negotiating
power, or anything you consider confidential, 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.
My 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 office also allows an agent to
be a disclosed (in writing)
dual
agent, where the
same agent represents both the seller and the buyer, with prior written
informed consent of all parties.
Also, I can work with many sellers and buyers simultaneously, and
so can other agents in my office. Sometimes, I and/or one of
the other agents from my office 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.
I
hope this helps!
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