(225 ILCS 454/15-45)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-45. Dual agency.
(a) An individual licensee may act as a dual agent or a sponsoring broker may permit one or more of its sponsored licensees to act as dual agents in the same transaction only with the informed written
consent of all clients.
Informed written consent shall be presumed to have been given by any client who
signs a document
that includes the following:
"The undersigned (insert name(s)), ("Licensee"), may |
| undertake a dual representation (represent both the seller or landlord and the buyer or tenant) for the sale or lease of property. The undersigned acknowledge they were informed of the possibility of this type of representation. Before signing this document please read the following: Representing more than one party to a transaction presents a conflict of interest since both clients may rely upon Licensee's advice and the client's respective interests may be adverse to each other. Licensee will undertake this representation only with the written consent of ALL clients in the transaction. Any agreement between the clients as to a final contract price and other terms is a result of negotiations between the clients acting in their own best interests and on their own behalf. You acknowledge that Licensee has explained the implications of dual representation, including the risks involved, and understand that you have been advised to seek independent advice from your advisors or attorneys before signing any documents in this transaction.
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WHAT A LICENSEE CAN DO FOR CLIENTS
WHEN ACTING AS A DUAL AGENT
1. Treat all clients honestly.
2. Provide information about the property to the buyer or |
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3. Disclose all latent material defects in the property
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4. Disclose financial qualification of the buyer or
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| tenant to the seller or landlord.
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5. Explain real estate terms.
6. Help the buyer or tenant to arrange for property
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7. Explain closing costs and procedures.
8. Help the buyer compare financing alternatives.
9. Provide information about comparable properties that
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| have sold so both clients may make educated decisions on what price to accept or offer.
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WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
ACTING AS A DUAL AGENT
1. Confidential information that Licensee may know about |
| a client, without that client's permission.
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2. The price or terms the seller or landlord will take
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| other than the listing price without permission of the seller or landlord.
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3. The price or terms the buyer or tenant is willing to
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| pay without permission of the buyer or tenant.
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4. A recommended or suggested price or terms the buyer or
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5. A recommended or suggested price or terms the seller
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| or landlord should counter with or accept.
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If either client is uncomfortable with this
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| disclosure and dual representation, please let Licensee know. You are not required to sign this document unless you want to allow Licensee to proceed as a Dual Agent in this transaction. By signing below, you acknowledge that you have read and understand this form and voluntarily consent to Licensee acting as a Dual Agent (that is, to represent BOTH the seller or landlord and the buyer or tenant) should that become necessary."
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(b) The dual agency disclosure form provided for in subsection (a) of this
Section must be
presented by a licensee, who offers dual representation, to the client at the
time the brokerage
agreement is entered into and may be signed by the client at that time or at
any time before the
licensee acts as a dual agent as to the client.
(c) A licensee acting in a dual agency capacity in a transaction must obtain
a written
confirmation from the licensee's clients of their prior consent for the
licensee to
act as a dual agent in the
transaction.
This confirmation should be obtained at the time the clients are executing any
offer or contract to
purchase or lease in a transaction in which the licensee is acting as a dual
agent. This confirmation
may be included in another document, such as a contract to purchase, in which
case the client must
not only sign the document but also initial the confirmation of dual agency
provision. That
confirmation must state, at a minimum, the following:
"The undersigned confirm that they have previously
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| consented to (insert name(s)), ("Licensee"), acting as a Dual Agent in providing brokerage services on their behalf and specifically consent to Licensee acting as a Dual Agent in regard to the transaction referred to in this document."
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(d) No cause of action shall arise on behalf of any person against a dual
agent for making
disclosures allowed or required by this Article, and the dual agent does not
terminate any agency
relationship by making the allowed or required disclosures.
(e) In the case of dual agency, each client and the licensee possess only
actual knowledge and
information. There shall be no imputation of knowledge or information among or
between clients,
brokers, or their affiliated licensees.
(f) In any transaction, a licensee may without liability withdraw from
representing a client who
has not consented to a disclosed dual agency. The withdrawal shall not
prejudice the ability of the
licensee to continue to represent the other client in the transaction or limit
the licensee from
representing the client in other transactions. When a withdrawal as
contemplated in this subsection
(f) occurs, the licensee shall not receive a referral fee for referring a
client to another licensee unless
written disclosure is made to both the withdrawing client and the client that
continues to be
represented by the licensee.
(g) A licensee shall not serve as a dual agent in any transaction when the licensee, or an entity in which the licensee has or will have any ownership interest, is a party to the transaction.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
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