A buyer and a seller are each represented by different sponsored licensees from the same Illinois brokerage firm. Under Illinois law, does this arrangement automatically create dual agency?
Correct Answer
C) No, because in a properly structured designated agency arrangement, the dual-agency analysis focuses on the relationships of the individually designated agents, not on the sponsoring broker's connection to both sides.
Under 225 ILCS 454/15-45, Illinois law expressly distinguishes designated agency from dual agency. When a sponsoring broker designates separate licensees to represent the buyer and seller respectively, those licensees each owe undivided loyalty to their own client. Dual agency arises only if the same designated agent represents both parties, or if the sponsoring broker personally represents both sides. Common sponsorship alone does not automatically trigger dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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