In Illinois, Real Estate Agents are required to inform you of Agency by Law.
What is Agency? This is the framework that has developed in the law to allow individuals to act through another person or representative. This particularly occurs in commercial transactions. Examples might include hiring an attorney to represent you in a business transaction, working with a stock broker to purchase stocks or other investments, or working with a real estate broker to buy or sell real estate. Your legal agent may have unlimited or limited powers on your behalf. Your legal agent owes you certain fiduciary-like statutory duties such as confidentiality, promoting your best interests, and exercising reasonable skill and care.
Designated Agency- This arrangement with a real estate brokerage company results in one or more sales associates with that company being designated as your legal agent. The law presumes that the agent you work with, whether you are a buyer or seller, is your designated agent unless you have a written agreement otherwise. Other sales associates in the real estate brokerage firm may be the legal agents of other buyers and sellers and may be the legal agent of the party who buys your property or from whom you buy property. The only individuals owing you statutory duties are those designated as your legal agent and not any other sales associate with that company.
Buyer's Agent- In January 1995, a new Illinois law took effect changing the traditional consumer-broker relationship. Now, it is presumed that the agent you are working with is your designated agent. As a buyer, you have access to listings available to your designated agent through the multiple listing service. As a buyer, you will also receive other services from your designated agent such as financing information, assistance in determining your particular price range, and assistance in facilitating the closing. Typically, the buyer and the brokerage company will enter into a written brokerage agreement. This agreement will identify your designated agent, define the scope of your agents authority, and will spell out contractual rights and duties between you and the designated agent. This is not a requirement. Agency agreements can be verbal. Only exclusive agreements must be in writing.
Seller's or Listing Agent- When you sign a listing or exclusive marketing contract with a real estate broker, the contract will designate the particular sales associate or associates that will act as your legal agent. Other sales associates who are not named as your designated agent do not represent you, even if they are in the same brokerage company as your designated agent. These other agents may potentially represent buyers interested in your property. In the marketing of your real estate, the seller's agent acts in the seller's best interest.
Dual Agency- In this type of situation, both the seller and buyer in a transaction are represented by the same legal agent. In this case, there are specific statutory duties that the dual agent owes to both buyer and seller. Most notably is the duty not to disclose confidential information of one party to the other. Dual Agency is allowed only with your consent. Upon entering into a brokerage agreement, whether as buyer or seller, you will be given a form explaining dual agency that seeks your consent to allow your agent to act as a dual agent should the situation arise. If you consent at the time and a dual agency situation actually arises, you will be asked to confirm your prior consent before entering into a contract for the purchase or sale of a property. Please note that in a Dual Agency situation, the role of the sales associate is somewhat limited and you will, at times, have to act on your own behalf when negotiating the terms of a sale or purchase.
In whatever manner you choose to be represented, the goal is generally the same, that the real estate broker is trying to assist you in the sale or purchase of real estate upon terms acceptable to all parties. |