An Illinois client enters a brokerage agreement and may later be represented in a dual-agency transaction. When must the dual-agency disclosure be presented, and by what point must the client sign it?
Correct Answer
A) It must be presented when the brokerage agreement is entered into, although the client may sign then or any time before the licensee acts as a dual agent.
Under 225 ILCS 454/15-45, the dual-agency disclosure form must be presented to the client at the time the brokerage agreement is entered into. However, the client's signature is not required at that exact moment — it must be obtained at any point before the licensee actually begins acting as a dual agent. This two-stage approach ensures clients are informed of the possibility of dual agency upfront while allowing flexibility on when consent is formally executed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
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