Section 6: Agency Relationships and Agent Types in Illinois

You need to be able to explain to your client what it means for you to be their agent and fiduciary. Out of the choices, which one best describes the fiduciary duties an agent owes a client? A) "As your agent, I'll obey any lawful instructions you provide me. I'm loyal to you and I put your interests ahead of any others. Anything you share with me will remain confidential, and I'll quickly disclose to you any material information about the transaction. You can personally hold me accountable for any money or property exchanged throughout our relationship, and know that I'm providing you the services you expect of me." B) "As your agent, I'll go to bat for you. You're my priority. I'll do anything you ask and do whatever it takes to sell this house. Let's get this done!" C) "As your agent, I'll identify potential homes based on the information you provide. I'll take you to showings and negotiate on your behalf. I'll use anything you tell me as a bargaining chip with the sellers."

A

Now that you have an inkling of what sub-agency is all about, let's see if you can figure out who's who in a sub-agency relationship. So, what is a sub-agent? A) A licensee who works for Firm A but who's engaged with Firm B to perform agency functions on behalf of Firm B's client B) A licensee who's engaged by another licensee at his firm to perform agency functions on behalf of the client C) A licensee who works for Firm A but who's engaged with Firm B to perform agency functions on behalf of Firm B's customer D) A licensee who's engaged by another licensee at their firm to perform agency functions on behalf of the customer

A licensee who works for Firm A but who's engaged with Firm B to perform agency functions on behalf of firm Bs Client

Let's begin by defining what dual agency is. A) A single entity represents a single client in a real estate transaction B) A single entity represents a client pair (for example, husband and wife) in a real estate transaction C) A single entity represents both the buyer and seller in the same real estate transaction D) A single entity represents one client and another single entity from another firm represents another client in the same real estate transaction

A single entity represents both the buyer and seller in the same real estate transaction

A licensee who acts on behalf of a client A) Client B) Customer C) Agent D) Principal E) Fiduciary

Agent

What's the term for someone who's been given the authority to act on behalf of someone else? A) Agent B) Client C) Mortgage lender D) Trustor

Agent

Alison is quickly building her book of business and was thrilled to meet with Brent. In a matter of days, she had an agency agreement contract signed by Brent, had searched for properties on the multiple listing service, and had scheduled several showings. Who's who in this scenario? Match each term to the appropriate party, but let's see if you can do so without the help of a resource. (Don't worry—you can go back to the previous slide if you'd like to review the resource again). Agent Alison/Brent

Alison

Alison is quickly building her book of business and was thrilled to meet with Brent. In a matter of days, she had an agency agreement contract signed by Brent, had searched for properties on the multiple listing service, and had scheduled several showings. Who's who in this scenario? Match each term to the appropriate party, but let's see if you can do so without the help of a resource. (Don't worry—you can go back to the previous slide if you'd like to review the resource again). Fiduciary Alison/Brent

Allison

In a brokerage firm that supports dual agency, what's required for a designated agent to act as a dual agent in a real estate transaction in Illinois? A) The real estate commission's approval B) The sponsoring broker's permission C) Both the seller's and buyer's written consent to a dual agency relationship

Both the sellers and buyers written consent to a dual agency relationship

Alison is quickly building her book of business and was thrilled to meet with Brent. In a matter of days, she had an agency agreement contract signed by Brent, had searched for properties on the multiple listing service, and had scheduled several showings. Who's who in this scenario? Match each term to the appropriate party, but let's see if you can do so without the help of a resource. (Don't worry—you can go back to the previous slide if you'd like to review the resource again). Client Alison/Brent

Brent

Alison is quickly building her book of business and was thrilled to meet with Brent. In a matter of days, she had an agency agreement contract signed by Brent, had searched for properties on the multiple listing service, and had scheduled several showings. Who's who in this scenario? Match each term to the appropriate party, but let's see if you can do so without the help of a resource. (Don't worry—you can go back to the previous slide if you'd like to review the resource again). Principal Alison/Brent

Brent

Julianne is the designated agent for the Wilsons, who have agreed to have Julianne's firm solely represent them. Julianne's primary responsibilities include helping the Wilsons locate properties that meet their stated requirements, preparing offers for properties they're interested in, and negotiating the sale contract on their behalf. A) Seller's agent B) Buyer's agent C) Dual agent D) Non-agent

Buyers Agent

As a single agent, what topics can you advise a client on? Real estate Can advise/Cannot advise Mortgage qualifying Can advise/Cannot advise Legal items related to the transaction Can advise/Cannot advise Appraisal amount Can advise/Cannot advise

Can Advise Can't Advise Can't Advise Can't Advise

The dual agent's role in Illinois is limited. Review each of these statements and indicate if a dual agent can or can't do this. Disclose any acceptable price other than the listing price a seller or landlord may take (unless given permission) Can do/Can't do Research recently sold comparable properties so both clients can make informed choices on pricing and negotiating Can do/Can't do Help arrange property inspections Can do/Can't do Disclose confidential information about a client, without that client's permission Can do/Can't do Help the buyer compare financing alternatives, and explain closing costs and procedures Can do/Can't do Disclose all latent material defects in the property that the licensee knows about Can do/Can't do

Can't do Can do Can do Can't do Can do Can do

Carmen is a designated agent in Illinois. Based on this information, which of the following statements is true? A) Carmen can disclose confidential client information to her sponsoring broker if she's seeking advice or assistance that will ultimately benefit the client. B) Carmen can disclose confidential information if she represents both the seller and buyer in the same transaction. C) Carmen can share client confidential information with another designated agent in her firm. D) Under no circumstances is Carmen allowed to disclose client confidential information.

Carmen can disclose confidential client information to her sponsoring broker if she's seeking advise or assistance that will ultimately benefit the client

Someone who has agency representation with a real estate salesperson or broker A) Client B) Customer C) Agent D) Principal E) Fiduciary

Client

For some agents, the toughest part about confidentiality is balancing it with disclosure. You need to maintain your client's confidence, but you need to disclose materials facts, as well. Read each statement and determine if you need to keep the information from your clients and former clients (yep, even former clients) confidential. Your seller is moving because he doesn't like his neighbors. Confidential/Not confidential Your sellers are flexible on their asking price. Confidential/Not confidential A former buyer client of yours carries the AIDS virus. Confidential/Not confidential Your seller's house was featured in a movie in the early 1980s. Confidential/Not confidential One of your listings backs up to an open space that will soon be developed into a retail site. Confidential/Not confidential

Confidential Confidential Confidential Not confidential Not confidential

You know the parts that make up OLD CAR, but do you know what each part means? Match the definition with the appropriate fiduciary duty. Keep information shared by the client private. Reasonable skill and care/Confidentiality/Accounting Properly handle all money or property entrusted to you. Reasonable skill and care/Confidentiality/Accounting Provide clients with quality, knowledgeable, and prudent service. Reasonable skill and care/Confidentiality/Accounting

Confidentiality Accounting Reasonable skill and care

Someone who's working with a real estate salesperson or broker, but isn't represented by that licensee A) Client B) Customer C) Agent D) Principal E) Fiduciary

Customer

Read the scenario and determine which duty it represents. Martha, the buyer's agent, has information about the seller's neighbors that she feels she should share with her client. This information could impact her client's decision to make an offer. A) Seeking terms for the transaction that are acceptable to the client B) Presenting offers to the client as soon as practically possible until closing C) Disclosing material facts about the transaction to the client D) Properly accounting for client funds and property E) Following the client's specific and legal directions F) Promoting the client's interests over all other parties' interests

Disclosing material facts about the transaction to the client

Review each scenario and then identify which kind of dual agency it is. Greg has designated two agents from his firm, Cassidy and Don, to represent clients in the same transaction. Cassidy will represent the seller, and Don will represent the buyer. Greg will act as a dual agent. Single-license dual agency / Dual-license dual agency

Dual - license dual agency

Rick is a licensee who's the designated agent for several seller clients and several buyer clients, but none of his clients have been involved in the same transaction. That is, until recently. Rick now finds himself representing both the seller and the buyer in the same transaction. A) Seller's agent B) Buyer's agent C) Dual agent D) Non-agent

Dual Agent

In typical dual agency, when the managing broker assumes the role of dual agent and designates two agents, one to represent the buyer and one to represent the seller, what type of dual agency relationship is this? A) Buyer agency B) Dual-license dual agency C) Seller agency D) Single-license dual agency

Dual license dual agency

In a single agency relationship, a firm represents ______. A) Both the seller and buyer B) Either the buyer or the seller C) Neither party D) The seller only

Either the buyer or the seller

In Illinois, under no circumstances are designated agents allowed to share client confidential information. True/False

False

The brokerage agreement used to create the designated agency relationship is between the client and the designated agent. True/False

False

our resource provides information about what single agency is and what duties you owe as a single agent. Review your resource and determine whether these statements about single agency are true or false. Single agents can advise their clients on any topic related to the transaction. True/False

False

Let's take a closer look at the relationship between licensees and customers. Review each statement about ministerial acts and determine if it's true or false. Licensees can't perform ministerial acts for a customer if the licensee is representing a client in the same transaction. True/False A licensee who assists a customer while representing a client is in violation of the brokerage agreement the client has with the brokerage firm. True/False Just because a licensee assists a customer doesn't mean the two have established a brokerage agreement. True/False Licensees can be held liable if they provide false information to customers, even if they do it unknowingly. True/False

False False True False

Read the following statements about sub-agency and determine if they're fact or fiction. Real estate firms in Illinois can determine whether to permit sub-agency or not as an office policy. True/False In states where sub-agency is practiced, generally, it's the seller and seller's agent who create sub-agency. True/False In states where sub-agency is practiced, a buyer's agent can also be a sub-agent. True/False

False True False

We've looked at the differences between general, special, universal, and designated agents. Now let's see if you can differentiate one role from the other. Read each statement about a specific type of agent and determine if it's true or false. Edwin collects rents, evicts tenants, and enters into leases on behalf of his boss, the property owner. Edwin is a designated agent. True/False Harriet has just been appointed guardian of her 12-year-old niece, Annabel, whose parents were tragically killed in an automobile accident. Harriet is a universal agent. True/False Ingo and Amy have just been assigned to two clients who are both represented by their firm and involved in the same transaction. Ingo owes fiduciary duties to the buyer, and Amy represents the seller. Ingo and Amy are designated agents. True/False Jamie acts as an intermediary, liaison, and negotiator for her client, but she is not authorized to make decisions on her client's behalf. Jamie's primary role is to help her client find and buy a house. Jamie is a general agent. True/False

False True True False

Terry represents seller Farrah, and Michael represents Troy, the buyer. Who is (or are) the principal(s) in this transaction? A) Farrah B) Farrah and Troy C)Terry and Michael D) Troy

Farrah and Troy

A licensee who's in a position of trust and loyalty A) Client B) Customer C) Agent D) Principal E) Fiduciary

Fiduciary

What Are Your Fiduciary Duties? You've likely heard the phrase, "You can't teach an old dog new tricks." Well, let's hope you can teach soon-to-be new agents OLD CAR. Identify which of these items are fiduciary duties that you, as an agent, would owe a client. Loyalty Fiduciary duty/Not a fiduciary duty Confidentiality Fiduciary duty/Not a fiduciary duty Accounting Fiduciary duty/Not a fiduciary duty Reasonable profit Fiduciary duty/Not a fiduciary duty

Fiduciary Fiduciary Fiduciary Not a Fiduciary

Read the scenario and determine which duty it represents. Anna Mae's landlord client has made it clear to her that he only wants to lease to tenants who can afford to live in his upscale apartment and make the monthly payments. He's also hinted that he doesn't like to rent to foreigners, even if they do have money. A) Seeking terms for the transaction that are acceptable to the client B) Presenting offers to the client as soon as practically possible until closing C) Disclosing material facts about the transaction to the client D) Properly accounting for client funds and property E) Following the client's specific and legal directions F) Promoting the client's interests over all other parties' interests

Following the clients specific and legal directions

As a licensee in Illinois, how long are you required to keep a client's confidential information confidential? Forever Until the transaction closes Until the brokerage agreement is terminated For three years following the termination of the brokerage agreement

Forever

Responsible for handling all dealings for a specific piece of client property General Agent/Special Agent Enters into contracts on behalf of the client General Agent/Special Agent Acts as an intermediary, but doesn't make decisions or enter into contracts on the client's behalf General Agent/Special Agent Has limited authority to act on a client's behalf General Agent/Special Agent

General Agent General Agent Special Agent Special Agent

n addition to ministerial acts, licensees in Illinois owe professional duties to customers. Which two of the following duties are these? A) Honesty and fair dealing B) Disclosure of latent material adverse facts C) Partial representation in a real estate transaction D) Adherence to all direct instructions, both verbal and written E) Minimum brokerage services in exchange for a nominal commission

Honest and Fair Dealing and Disclosure of latent material adverse facts

Now that you're familiar with how Illinois defines the designated agency relationship, let's look at how designated agency firms in Illinois handle the question of dual agency and how it differs from how this question is typically handled in states that use designated agency. Review each scenario and determine if it describes how designated agency firms typically handle dual agency situations or how it's done in Illinois. Both the buyer and seller of 123 Elm Street are represented under designated agency agreements with two affiliate brokers at Heritage Real Estate. Their broker isn't considered a dual agent. Typical/Illinois

Illinois

Now that you're familiar with how Illinois defines the designated agency relationship, let's look at how designated agency firms in Illinois handle the question of dual agency and how it differs from how this question is typically handled in states that use designated agency. Review each scenario and determine if it describes how designated agency firms typically handle dual agency situations or how it's done in Illinois. Roberta and Erin work for the same firm. They each have buyer clients who have made offers on the same property. There is no conflict of interest because the buyer relationships are only with Roberta and Erin, not with the firm. Typical/Illinois

Illinois

Which of the following is an example of sub-agency? A) Kayla is a licensee with ABC Realty and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owes fiduciary duties to the seller. B) Kermit is represented by Bert, an agent with Street Realty. Today they're seeing Oscar's house, which has been listed by Oscar's agent, Ernie, from Energy Realty. C) Rita is a licensee with Hawthorne Realty. She has a client, Dinah, who's selling her condo. Rita thinks Dinah's house will be perfect for Ruby, a customer. D) Tim and Tom are both licensees with Acme Realty. Tim is the listing agent on a home where Tom represents the buyer.

Kayla is a licensee with ABC realty and lists a property for seller Devon. Maurice is a salesperson with XYZ realty group and bring a buy to the table, but owes fiduciary duties to the seller

Once you've presented the Smiths with a no-agency disclosure, and they've agreed to the relationship, which of the following best describes your relationship with them? Agent / client Agent / customer Licensee / customer

Licensee / customer

In a typical dual agency situation, the agent owes fiduciary duties to a client. Which duty becomes most challenging when representing both the buyer and seller? A) Obedience B) Loyalty C) Disclosure D) Confidentiality E) Accounting F) Reasonable skill and care

Loyalty

Although dual agents may represent both parties in a transaction, they must keep certain information shared by each party confidential. This is true in both typical and Illinois dual agency. Take a look at the information that follows and determine whether it needs to remain confidential or can be shared with the other party. The property's listed for $265,000, but the seller's willing to go as low as $250,000. Must be kept confidential/Can be shared The seller wants to move because of an ongoing dispute with the neighbor. Must be kept confidential/Can be shared The buyer's going to offer $245,000, but is willing to go as high as $250,000. Must be kept confidential/Can be shared The seller originally paid $235,000 for the property. Must be kept confidential/Can be shared The seller has received and rejected two prior offers, both of which were below the asking price. Must be kept confidential/Can be shared The seller recently replaced the roof due to hail damage. Must be kept confidential/Can be shared

Must be kept confidential Must be kept confidential Must be kept confidential Can be shared Must be kept confidential Can be shared

Meet Alison, a real estate licensee. Alison just received a call from the Masons. They're interested in putting their house on the market and would like to talk more with Alison about this process. Alison meets with the Masons the next day and is excited about this new prospect. She leaves them with her business card and a promise to call back in two months when they say they'll be ready to act. In return, Alison leaves with an unsigned agency agreement and contact information for Brent, their son who is ready to buy his first home. Are the Masons Alison's clients? Yes/No

No

In Illinois, licensees are allowed to perform ministerial acts for customers. Review each of these items and determine if it's a ministerial act you perform for a customer or not. Keep the customer's confidential information confidential. Yes/No Promote the customer's interests. Yes/No Assist with straightforward transactional paperwork. Yes/No Respond to inquiries on description, price, and location of a property. Yes/No Scheduling appointments to view listed properties. Yes/No

No No Yes Yes Yes

You're the designated agent for your seller client, Martin, who's been trying to sell his property for almost a year. Your brokerage firm has a new licensee, Lauren, who's the designated agent for a buyer who can't wait to see Martin's property. If this transaction progresses, who will the dual agent be? A) Your sponsoring broker B) You C) Lauren D) No one

No One

What's true of the agency relationship in transaction brokerage? A) Designated agency is created in transaction brokerage. B) Dual agency is created in transaction brokerage. C) No agency relationship is created in transaction brokerage. D) Traditional agency is created in transaction brokerage.

No agency relationship is created in transaction brokerage

While the two types of typical dual agency structures are fresh in your mind, let's see if you can determine which of these scenarios are examples of typical dual agency and which aren't. Tamika represents the buyer, and an agent from a different firm represents the seller in the same transaction. Typical dual agency/Not dual agency Connor represents the buyer in a transaction, and another agent from his firm represents the seller in the same transaction. Typical dual agency/Not dual agency Selma represents the buyer in one transaction and the seller in a different transaction. Typical dual agency/Not dual agency Gabe represents the buyer and seller in the same transaction. Typical dual agency/Not dual agency Damian represents the seller in a transaction and another agent from his firm brought the buyer customer to the same transaction. Typical dual agency/Not dual agency Tonya represents the sellers in the sale of their home, then represents them as buyers when purchasing a new home. Typical dual agency/Not dual agency

Not Dual agency Typical Dual agency Not dual agency Typical Dual agency Not dual agency Not dual agency

Now let's see if you can recognize sub-agency when you see it. Read each scenario and determine if it's an example of sub-agency or not. Assume sub-agency is permitted by the firms and sellers involved. Mike and Christina are licensees with IndyRealty. Zachary is selling his home and has enlisted Mike as his agent. Nathan is Christina's buyer client and is interested in seeing Zachary's home. Sub-Agency/Not Sub-Agency Ralph is a licensee with Camp Realty group. He has a client, Debbie, who's selling her house. He thinks Debbie's house is perfect for Stacy, a customer. Sub-Agency/Not Sub-Agency Pam is a licensee with SMS Agency and has just listed a property for her seller client, Bob. Dan is a licensee with DTWN Associates and has a buyer customer interested in seeing the property. Sub-AgencyNot Sub-Agency Kayla, an agent with Sarent Group Realty, represents Tim. Today, they are seeing Bonnie's house, which has been listed by her agent, Tiara, from the Truman Agency. Sub-AgencyNot Sub-Agency

Not sub agency Not sub agency Sub agency Not sub agency

You know the parts that make up OLD CAR, but do you know what each part means? Match the definition with the appropriate fiduciary duty. Follow client instructions (just the lawful ones, though). Disclosure/Loyalty/Obedience Put clients' interests ahead of all others. Disclosure/Loyalty/Obedience Divulge all facts pertinent to the transaction. Disclosure/Loyalty/Obedience

Obedience Loyalty Disclosure

Now let's look at each of the duties that are part of the statutory duty to service the client's best interest. Read the scenario and determine the one duty it best represents. Hank, the seller's agent, receives three offers on his client's property after the client has already accepted an offer and signed a sales contract with the buyer. Per his client's request, Hank will continue to present these offers to his client as he receives them, up to closing. A) Seeking terms for the transaction that are acceptable to the client B) Presenting offers to the client as soon as practically possible until closing C) Disclosing material facts about the transaction to the client D) Properly accounting for client funds and property E) Following the client's specific and legal directions F) Promoting the client's interests over all other parties' interests

Presenting offers to the client as soon as practically possible until closing

A party to a transaction, and a person for whom the agent acts A) Client B) Customer C) Agent D) Principal E) Fiduciary

Principal

Read the scenario and determine which duty it represents. Negotiating this transaction hasn't been easy for Tyrone. The buyers' offer was just barely over asking price, and now they're trying to negotiate having his seller client, Lucy, pay for several cosmetic repairs and more of the closing costs. As much as Tyrone would like this transaction to move forward, he can't in good conscience advise Lucy to agree to these new demands. Keeping her best interest in mind, Tyrone is going to suggest to Lucy that she not agree to the repairs or covering more of the closing costs. A) Seeking terms for the transaction that are acceptable to the client B) Presenting offers to the client as soon as practically possible until closing C) Disclosing material facts about the transaction to the client D) Properly accounting for client funds and property E) Following the client's specific and legal directions F) Promoting the client's interests over all other parties' interests

Promoting the clients interests over all other parties interests

Read the scenario and determine which duty it represents. Nick's buyer client gives him an earnest money check for $5,000. Nick records the date he received the check, along with the amount and check number. Once his client's offer has been accepted, Nick will give the check to the escrow agent to deposit in an escrow account. A) Seeking terms for the transaction that are acceptable to the client B) Presenting offers to the client as soon as practically possible until closing C) Disclosing material facts about the transaction to the client D) Properly accounting for client funds and property E) Following the client's specific and legal directions F) Promoting the client's interests over all other parties' interests

Properly accounting for client funds and property

Before you enter into a no-agency agreement with the Smiths, what does Illinois law require you to do? A) Provide a verbal explanation of what no agency is. B) Ask them to agree to a non-exclusive brokerage agreement. C) Provide them with a written no-agency disclosure and explain what no agency is.

Provide them with a written no-agency disclosure and explain what no agency is

It's the policy of Kathleen's brokerage to only practice single agency. Which of the following best describes this? A) Representing both buyers and sellers in the same transaction B) Representing either the buyer or the seller in a transaction, but never both at the same time C) Representing only buyers in all transactions D) Representing only sellers in all transactions

Representing either the buyer or seller in a transaction, but never both at the same time.

Stan represents Todd and Linda, his seller clients. At the open house, he meets Ron, who is interested in the home. Which of following is a true statement? A) Ron becomes Stan's client when he discusses the home with Stan. B) Ron is Stan's client. C) Ron is Stan's customer. D) Todd, Linda, and Ron are all Stan's clients.

Ron is stan's customer

Read the scenario and determine which duty it represents. Per their brokerage agreement, Bob is looking for a residential lease opportunity for his tenant client, Clark, that's downtown and no more than $1,200 a month. Based on the terms of the agreement and his discussions with his client, Bob knows that Clark isn't interested in looking at properties that don't meet his criteria. A) Seeking terms for the transaction that are acceptable to the client B) Presenting offers to the client as soon as practically possible until closing C) Disclosing material facts about the transaction to the client D) Properly accounting for client funds and property E) Following the client's specific and legal directions F) Promoting the client's interests over all other parties' interests

Seeking terms for the transaction that are acceptable to the client

Rosemary is the designated agent for the Judds, who have agreed to have Rosemary's firm solely represent them. Rosemary's primary responsibilities include listing and marketing her clients' property, and reviewing and negotiating offers on their behalf. A) Seller's agent B) Buyer's agent C) Dual agent D) Non-agent

Seller's Agent

Now that you've had a chance to familiarize yourself with the agent roles in Illinois, let's see how well you do matching the roles with their descriptions. Represents the seller and can list and market the seller's property Non-agent/Dual agent/Seller's agent/Buyer's agent Represents the buyer and can assist the buyer in purchasing property Non-agent/Dual agent/Seller's agent/Buyer's agent Represents both the seller and the buyer in a sales transaction Non-agent/Dual agent/Seller's agent/Buyer's agent Assists, but doesn't represent, customers in a transaction Non-agent/Dual agent/Seller's agent/Buyer's agent

Sellers Agent Buyers Agent Dual Agent Non Agent

Kent is a designated agent for the seller with whom his brokerage firm has a written exclusive brokerage agreement, but he's also assisting a buyer customer in the same transaction. Which two roles has Kent assumed? A) Seller's agent B) Buyer's agent C) Dual agent D) Non-agent

Sellers Agent and Non-Agent

Madeline works for a single-agency firm. If she wants to represent both the buyer and seller in a transaction, what must she do? A) She can't do this at her firm. B) She may act as a designated agent for one client and a representative agent for the other. C) She should get informed consent from both sides to represent them. D) She should have her broker act as a dual agent, and she can be a single agent for each party.

She can't do this at her firm

Review each scenario and then identify which kind of dual agency it is. Lila represents both the seller and the buyer in the same transaction. Both Lila and her managing broker are dual agents in the transaction. Single-license dual agency / Dual-license dual agency

Single-license dual agency

Now, let's review the agent type associated with each agent role in Illinois. In which roles can licensees serve as special agents and in which can they serve as general agents? Designated agent Special/General Seller's agent Special/General Buyer's agent Special/General Dual agent Special/General

Special Special Special Special

Stacey, a buyer, is working with Rebecca, a licensee, in a state that doesn't recognize or permit implied agency. Rebecca doesn't represent Stacey, however, and is performing only ministerial tasks for her. Which of the following statements about this situation is correct? A) Rebecca can't work with Stacey without an agency agreement. B) Rebecca is acting in an agency capacity for Stacey. C) Stacey is Rebecca's client. D) Stacey is Rebecca's customer.

Stacey is Rebecca's customer

Now that you've had a chance to see how the statutory duties differ from the standard fiduciary duties, let's take a closer look at the duties you'll owe your clients. Review each item and determine if it's a statutory duty or not. Serve the client's best interests Statutory Duty/Not a Statutory Duty Employ reasonable skill and care in performing brokerage services for the client Statutory Duty/Not a Statutory Duty Keep all confidential client information confidential Statutory Duty/Not a Statutory Duty Promise to successfully close a transaction within 90 days of your client signing the sales contract Statutory Duty/Not a Statutory Duty Adhere to the brokerage agreement's terms Statutory Duty/Not a Statutory Duty Agree to only disclose information about the physical condition of the property that doesn't impact your client's chances of selling and/or purchasing the property Statutory Duty/Not a Statutory Duty

Statutory Duty Statutory Duty Statutory Duty Not a Statutory Duty Statutory Duty Not a statutory Duty

In designated agency relationships in Illinois, one licensee is assigned by the brokerage firm to represent one client as that client's designated agent. True/False

True

In designated agency relationships in Illinois, two agents from the same firm can represent clients on opposite sides of the table in the same transaction. True/False

True

Is this statement true or false? Licensees may not use confidential information for their own benefit. True/False

True

our resource provides information about what single agency is and what duties you owe as a single agent. Review your resource and determine whether these statements about single agency are true or false. Licensees can act as buyer's agents in one transaction and seller's agents in a different transaction. True/False

True

our resource provides information about what single agency is and what duties you owe as a single agent. Review your resource and determine whether these statements about single agency are true or false. The firm's licensees won't represent opposing sides to a transaction. True/False

True

Now that you're familiar with how Illinois defines the designated agency relationship, let's look at how designated agency firms in Illinois handle the question of dual agency and how it differs from how this question is typically handled in states that use designated agency. Review each scenario and determine if it describes how designated agency firms typically handle dual agency situations or how it's done in Illinois. Eileen's client, Nathan, is selling a home. Jacob from the same agency represents a buyer for whom Nathan's home might be perfect. Eileen and Jacob represent the clients' interests while their broker, Tandy, is a dual agent. Typical/Illinois

Typical

Now that you're familiar with how Illinois defines the designated agency relationship, let's look at how designated agency firms in Illinois handle the question of dual agency and how it differs from how this question is typically handled in states that use designated agency. Review each scenario and determine if it describes how designated agency firms typically handle dual agency situations or how it's done in Illinois. Phillip is the listing agent for Doug's hobby farm. Doug received an offer with some strange contingencies, and Phillip needs to discuss this with his broker, Karen. He needs to be careful due to possible dual agency conflict of interest since the buyer is also represented by another agent in Karen's brokerage. Typical/Illinois

Typical

Empowered to do anything the principal could do personally Universal Agent/Designated Agent Has the most authority of any agent Universal Agent/Designated Agent Not a common role for a real estate agent Universal Agent/Designated Agent Appointed by the broker to assist one party in an in-house transaction Universal Agent/Designated Agent Only the licensee appointed to the client owes fiduciary duties to that client Universal Agent/Designated Agent Also known as an appointed or assigned agent Universal Agent/Designated Agent

Universal Agent Universal Agent Universal Agent Designated Agent Designated Agent Designated Agent

Under which two of these circumstances are sponsoring brokers allowed to disclose client confidential information? Select all that apply. A) When they are required by law to do so B) When they have obtained the client's permission C) When the client is threatening to terminate the brokerage agreement D) When the client has a non-exclusive brokerage agreement with the firm

When they are required by law to do so and when they have obtained the client's premission

To avoid disclosing confidential information, you need to recognize what is and isn't considered confidential information. Review each statement and indicate if the information is confidential or not. Your seller clients have a minimum offer in mind that they will accept from buyers. Yes/No Your clients tell you in confidence about a sizable crack in the foundation. Yes/No Your clients are motivated to sell their property quickly because they need the money to put down on a house they want to buy. Yes/No Your client instructs you in writing to keep his wife's maiden name and family ties confidential. She's from a wealthy, political family in the city, and the couple wants to preserve their privacy in their new neighborhood. Yes/No

Yes No Yes Yes

As a non-agent for the Smiths, you are limited as to the acts you can perform for them. Review each statement and determine if it's something you can or can't do for the Smiths. Respond to inquiries on price and location of a property Yes/No Act on their behalf in a specific transaction Yes/No Answer questions about general brokerage services Yes/No Schedule appointments to view listed properties Yes/No Represent their interests in a specific transaction Yes/No Assist them with straightforward transactional paperwork Yes/No

Yes No Yes Yes No Yes

Brokerage firms can reduce the risk of inadvertently sharing confidential information when two in-house licensees are designated agents for the buyer and seller in a transaction. Which of these actions can help prevent this? Establish a firewall Yes/No Establish policies for when and where agents can discuss confidential information Yes/No Encourage agents to openly discuss their clients and transactions Yes/No Enforce seller agency creation through written agreement only Yes/No

Yes Yes No No

Ann is a licensee who's been assigned by her sponsoring broker to work with a client. She and the client are in a designated agency relationship. Which roles might Ann assume as part of this relationship? Designated agent Yes/No Seller's agent Yes/No Buyer's agent Yes/No Dual agent Yes/No Non-agent Yes/No

Yes Yes Yes No No

Under which four of these circumstances are you allowed to disclose confidential information? A) The client gives you permission, either verbally or through action, to disclose his or her own given information. B) You receive confidential information from another agent. C) You know adverse material information about a property. D) License law requires you to disclosure the information. E) You receive confidential information from your client about another party to the transaction. F) Another source makes the information public.

Your client gives you permission You know adverse material information about a property License law requires you to disclose Another source makes the info public