Key Takeaways
- Illinois recognizes seller agency, buyer agency, disclosed dual agency, and designated agency
- Agency disclosure is required at the first substantive contact with a consumer
- Designated agency allows two licensees from the same brokerage to represent buyer and seller separately
- Disclosed dual agency requires written informed consent from both parties
- Ministerial acts can be performed without creating agency relationship
Last updated: January 2026
Agency Relationships in Illinois
Understanding Illinois agency law is essential for the state exam.
Important: This section covers Illinois-specific content only. For national agency concepts, see our Real Estate Salesperson exam prep.
Types of Agency Relationships
Seller's Agent (Listing Agent)
| Duty | Description |
|---|---|
| Fiduciary to | Seller only |
| Loyalty | Put seller's interests first |
| Disclosure | Material facts to seller |
| Confidentiality | Protect seller's information |
| Obedience | Follow lawful instructions |
Buyer's Agent
| Duty | Description |
|---|---|
| Fiduciary to | Buyer only |
| Loyalty | Put buyer's interests first |
| Disclosure | Material facts to buyer |
| Confidentiality | Protect buyer's information |
| Negotiation | Advocate for buyer |
Disclosed Dual Agency
| Requirement | Details |
|---|---|
| Both parties consent | Written informed consent |
| Limitations | Cannot advocate for either |
| Confidentiality | Cannot share secrets |
| Neutrality | Must treat both fairly |
Designated Agency
Illinois alternative to dual agency:
| Feature | Description |
|---|---|
| Same brokerage | Two transactions in one firm |
| Separate agents | One for buyer, one for seller |
| Full advocacy | Each agent advocates fully |
| No dual agency | Not dual for individual agents |
Agency Disclosure Requirements
When to Disclose
| Timing | Requirement |
|---|---|
| First substantive contact | Must provide disclosure |
| Before showing | Buyer must know |
| Before listing | Seller must know |
What is "Substantive Contact"?
| Substantive | Not Substantive |
|---|---|
| Discussing specific property | Providing general market info |
| Showing property | Giving directions |
| Discussing price/terms | Answering basic questions |
| Taking listing | Website inquiries |
Disclosure Form
| Requirement | Details |
|---|---|
| Written form | Standard disclosure |
| Signature | Consumer acknowledgment |
| Copy | Provide to consumer |
| Retain | Keep in file |
Ministerial Acts
Actions that do NOT create agency:
| Ministerial Act | Description |
|---|---|
| Providing information | General market data |
| Showing property | Without advice |
| Writing offer | At buyer's direction |
| Conveying offers | Without recommendation |
| Scheduling | Appointments, inspections |
Note: Ministerial acts can be performed for any party without creating agency.
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Test Your Knowledge
What is designated agency in Illinois?
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Test Your Knowledge
When must agency disclosure be provided in Illinois?
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