Dual Agency- What Is This and Is It Legal in Illinois?

There may be a time when an agent has a listing and they are working with a buyer who purchases that listing. You may ask, is this a conflict of interest when the agent you are working with is listing the property you are planning on purchasing? Dual Agency is not a conflict of interest if performed correctly. There are certain do’s and don’ts that the agent can and cannot do when performing Dual Agency.

Dual Agency can only exist with the informed written consent of all clients. The seller has the opportunity to accept or deny the consent to dual agency in the listing agreement. If the seller is ok with the agent working as a dual agent, then he/she will initial and check that they are ok with this. The buyer has to fill out “A Consent to Dual Agency form” in order for the agent to act as a dual agent. If both parties consent to this, then the agent is able to work with both clients. The contract has a paragraph that allows for the confirmation of dual agency for both clients.

There are certain things that an agent can do for clients when acting as a dual agent. Whether you are a seller or a buyer it is important to know what the agent can do. For instance they are to treat all clients honestly. This includes, disclosing all material defects in the property that are known by the agent. The agent is able to disclose the financial qualification for the buyer to the seller. The agent can also help the buyer arrange for a property inspection. If the buyer would like to know about comparables in the area that have sold, the agent is able to produce that information and assist them with any questions they may have.

Although the agents can provide a lot of information to the buyer in a Dual Agency Transaction, there are things that the agent cannot disclose to the buyer.  Any confidential information from the buyer or seller is not to be disclosed to the opposite party. The agent is not able to tell the buyer what price the seller will accept as his/her bottom line. On the reverse, the agent is not allowed to mention to the seller what the highest offer the buyer is willing to pay.

If any client is uncomfortable with a dual agency, they do not have to sign to accept it. If this happens and the client does not sign off, then the client can choose another agent to work with.  The Dual Agency law varies in different states, but is legal in Illinois.