Two clients are each represented by different licensees from the same Illinois brokerage operating under designated agency. Does this arrangement automatically create dual agency?
Correct Answer
B) No, because in designated agency the dual-agency analysis focuses on the relationships of the designated agents, not on the sponsoring broker's connection to both sides.
Under 225 ILCS 454/15-50, Illinois specifically created designated agency to avoid automatic dual agency when a single brokerage represents both parties. In a designated agency arrangement, the dual-agency question turns on whether the designated agents themselves have a conflicting relationship — not on the fact that both agents share the same sponsoring broker. If two different designated agents each represent one side, dual agency does not automatically exist.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
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