Under Illinois law, a sponsoring broker has an ongoing written brokerage agreement with a buyer-client. The buyer identifies a property, and the listing broker is from the same brokerage. Which of the following correctly describes the sponsoring broker's disclosure obligations in this situation?
Correct Answer
C) The sponsoring broker must obtain written consent to dual agency from both the buyer-client and the seller-client before acting as a dual agent in the transaction.
Under 225 ILCS 454/15-45, when a sponsoring broker represents both the buyer and the seller in the same transaction, a dual-agency relationship exists. Illinois law requires the sponsoring broker to obtain written informed consent to dual agency from both clients before proceeding. The dual-agency disclosure form must have been presented at the time each brokerage agreement was entered into, and each client must sign it before the dual-agency relationship commences. Proceeding without written consent from both parties is a violation of the Illinois Real Estate License Act.
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