2023 Illinois Compiled Statutes › Chapter 225 - PROFESSIONS, OCCUPATIONS, AND BUSINESS OPERATIONS › 225 ILCS 454/ - Real Estate License Act of 2000. › Article 15 - Agency Relationships

(225 ILCS 454/Art. 15 heading)
ARTICLE 15.  
		AGENCY RELATIONSHIPS
(225 ILCS 454/15-5)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-5. Legislative intent.
(a) The General Assembly finds that application of the common law of agency
to the
relationships among licensees under this Act and consumers of real
estate brokerage
services has resulted in misunderstandings and consequences that have been
contrary to the best
interests of the public.  The General Assembly further finds that the real
estate brokerage industry
has a significant impact upon the economy of the State of Illinois and that it is in the best interest of
the public to provide codification of the relationships between licensees under this Act 
and consumers of real estate brokerage services in order to prevent detrimental misunderstandings
and misinterpretations of the relationships by consumers, managing brokers, and brokers and
thus promote and provide stability in the real estate market.  This Article 15
is enacted to govern the
relationships between consumers of real estate brokerage services and licensees under this Act
 to the extent not governed by an individual written
agreement between a
sponsoring broker and a consumer, providing that
there is a relationship other than designated agency.
This
Article 15 applies to
the exclusion of the common law concepts of principal and agent and to the
fiduciary duties, which
have been applied to managing brokers, brokers, and real estate
brokerage services.
(b) The General Assembly further finds that this Article 15 is not intended
to
prescribe or affect
contractual relationships between managing brokers and brokers and the broker's
affiliated licensees.
(c) This Article 15 may serve as a basis for private rights of action and
defenses by sellers, buyers,
landlords, tenants, managing brokers, and brokers.  The
private rights of action,
however, do not extend to any other Articles
of this
Act.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/15-10)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-10. Relationships between licensees and consumers. Licensees shall be considered to be representing the consumer they are working
with as a
designated agent for the consumer unless there is a written agreement between the sponsoring broker and the consumer providing that there is a different relationship.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/15-15)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-15. Duties of licensees representing clients.
(a) A licensee representing a client shall:
(1) Perform the terms of the brokerage agreement     between a broker and the client.
(2) Promote the best interest of the client by:
(A) Seeking a transaction at the price and terms         stated in the brokerage agreement or at a price and terms otherwise acceptable to the client.
(B) Timely presenting all offers to and from the         client, unless the client has waived this duty.
(C) Disclosing to the client material facts         concerning the transaction of which the licensee has actual knowledge, unless that information is confidential information.  Material facts do not include the following when located on or related to real estate that is not the subject of the transaction: (i) physical conditions that do not have a substantial adverse effect on the value of the real estate, (ii) fact situations, or (iii) occurrences and acts at the property.
(D) Timely accounting for all money and property         received in which the client has, may have, or should have had an interest.
(E) Obeying specific directions of the client         that are not otherwise contrary to applicable statutes, ordinances, or rules.
(F) Acting in a manner consistent with promoting         the client's best interests as opposed to a licensee's or any other person's self-interest.
(3) Exercise reasonable skill and care in the     performance of brokerage services.
(4) Keep confidential all confidential information     received from the client.
(5) Comply with all requirements of this Act and all     applicable statutes and regulations, including without limitation fair housing and civil rights statutes.
(b) A licensee representing a client does not breach a duty or obligation to
the client by
showing alternative properties to prospective buyers or tenants, by showing
properties in which
the client is interested to other prospective buyers or tenants, or by making or preparing contemporaneous offers or contracts to purchase or lease the same property.  However, a licensee shall provide written disclosure to all clients for whom the licensee is preparing or making contemporaneous offers or contracts to purchase or lease the same property and shall refer to another designated agent any client that requests such referral.
(c) A licensee representing a buyer or tenant client will not be presumed to
have breached a
duty or obligation to that client by working on the basis that the licensee
will receive a higher fee or
compensation based on higher selling price or lease cost.
(d) A licensee shall not be liable to a client for providing false
information to the client if the
false information was provided to the licensee by a customer unless the
licensee knew or should
have known the information was false.
(e) Nothing in the Section shall be construed as changing a licensee's duty
under common law
as to negligent or fraudulent misrepresentation of material information.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/15-20)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-20. 
		
		Failure to disclose information not affecting physical
condition.  No cause of action shall arise against a licensee for the failure
to disclose:
(i) that an occupant of the property was afflicted with Human Immunodeficiency
Virus (HIV) or any other medical condition;
(ii) that the property was the site of an act or occurrence that had no effect
on the physical condition of the property or its environment or the structures
located thereon;
(iii) fact situations on property that is not the subject of the transaction;
or
(iv) physical conditions located on property that is not the subject of the
transaction that do not have a substantial adverse effect on the value of the
real estate that is the subject of the transaction.
(Source: P.A. 91-245, eff. 12-31-99; 92-16, eff. 6-28-01.)
(225 ILCS 454/15-25)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-25. Licensee's relationship with customers. Licensees shall treat all customers honestly and shall not negligently
or knowingly give
them false information.  A licensee engaged by a seller client shall timely
disclose to customers
who are prospective buyers all latent material adverse facts pertaining to the
physical condition of
the property that are actually known by the licensee and that could not be
discovered by a
reasonably diligent inspection of the property by the customer.  A licensee
shall not be liable to a
customer for providing false information to the customer if the false
information was provided to
the licensee by the licensee's client and the licensee did not have actual
knowledge that the
information was false.  No cause of action shall arise on behalf of any person
against a licensee for
revealing information in compliance with this Section.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/15-30)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-30. 
		Duties after termination of brokerage agreement. 
		Except as may be provided in a written agreement between the broker and the
client, neither a
sponsoring broker nor any licensee affiliated with the sponsoring broker owes
any further duties to
the client after termination, expiration, or completion of performance of the
brokerage agreement,
except:
(1) to account for all moneys and property relating     to the transaction; and
(2) to keep confidential all confidential information     received during the course of the brokerage agreement.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/15-35)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-35. Agency relationship disclosure.
(a) A licensee acting as a designated agent shall advise a consumer in writing, no later than beginning to work as a designated agent on behalf of the consumer, of the following:
(1) That a designated agency relationship exists,     unless there is written agreement between the sponsoring broker and the consumer providing for a different agency  relationship; and
(2) The name or names of the designated agent or     agents on the written disclosure, which can be included in a brokerage agreement or be a separate document, a copy of which is retained by the sponsoring broker for the licensee.
(b) The licensee representing the consumer shall discuss with the consumer the sponsoring broker's compensation and policy with regard to
cooperating with
brokers who represent other parties in a transaction.
(c) A licensee shall disclose in writing to a customer that the licensee is
not acting as the agent
of the customer at a time intended to prevent disclosure of confidential
information from a
customer to a licensee, but in no event later than the preparation of an offer
to purchase or lease real
property.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
(225 ILCS 454/15-40)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-40. 
		Compensation does not determine agency. 
		Compensation does not determine agency relationship.  The payment or promise of
payment of
compensation to a licensee is not determinative of whether an agency
relationship has been created
between any licensee and a consumer.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/15-45)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-45. Dual agency.
(a) An individual licensee may act as a dual agent or a sponsoring broker may permit one or more of its sponsored licensees to act as dual agents in the same transaction only with the informed written
consent of all clients.
Informed written consent shall be presumed to have been given by any client who
signs a document
that includes the following:
"The undersigned (insert name(s)), ("Licensee"), may     undertake a dual representation (represent both the seller or landlord and the buyer or tenant) for the sale or lease of property.  The undersigned acknowledge they were informed of the possibility of this type of representation. Before signing this document please read the following: Representing more than one party to a transaction presents a conflict of interest since both clients may rely upon Licensee's advice and the client's respective interests may be adverse to each other. Licensee will undertake this representation only with the written consent of ALL clients in the transaction. Any agreement between the clients as to a final contract price and other terms is a result of negotiations between the clients acting in their own best interests and on their own behalf.  You acknowledge that Licensee has explained the implications of dual representation, including the risks involved, and understand that you have been advised to seek independent advice from your advisors or attorneys before signing any documents in this transaction.
WHAT A LICENSEE CAN DO FOR CLIENTS
WHEN ACTING AS A DUAL AGENT
1. Treat all clients honestly.
2. Provide information about the property to the buyer or     tenant.
3. Disclose all latent material defects in the property     that are known to the Licensee.
4. Disclose financial qualification of the buyer or     tenant to the seller or landlord.
5. Explain real estate terms.
6. Help the buyer or tenant to arrange for property     inspections.
7. Explain closing costs and procedures.
8. Help the buyer compare financing alternatives.
9. Provide information about comparable properties that     have sold so both clients may make educated decisions on what price to accept or offer.
WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
ACTING AS A DUAL AGENT
1. Confidential information that Licensee may know about     a client, without that client's permission.
2. The price or terms the seller or landlord will take     other than the listing price without permission of the seller or landlord.
3. The price or terms the buyer or tenant is willing to     pay without permission of the buyer or tenant.
4. A recommended or suggested price or terms the buyer or     tenant should offer.
5. A recommended or suggested price or terms the seller     or landlord should counter with or accept.
If either client is uncomfortable with this     disclosure and dual representation, please let Licensee know. You are not required to sign this document unless you want to allow Licensee to proceed as a Dual Agent in this transaction. By signing below, you acknowledge that you have read and understand this form and voluntarily consent to Licensee acting as a Dual Agent (that is, to represent BOTH the seller or landlord and the buyer or tenant) should that become necessary."
(b) The dual agency disclosure form provided for in subsection (a) of this
Section must be
presented by a licensee, who offers dual representation, to the client at the
time the brokerage
agreement is entered into and may be signed by the client at that time or at
any time before the
licensee acts as a dual agent as to the client.
(c) A licensee acting in a dual agency capacity in a transaction must obtain
a written
confirmation from the licensee's clients of their prior consent for the
licensee to
act as a dual agent in the
transaction.
This confirmation should be obtained at the time the clients are executing any
offer or contract to
purchase or lease in a transaction in which the licensee is acting as a dual
agent.  This confirmation
may be included in another document, such as a contract to purchase, in which
case the client must
not only sign the document but also initial the confirmation of dual agency
provision.  That
confirmation must state, at a minimum, the following:
"The undersigned confirm that they have previously     consented to (insert name(s)), ("Licensee"), acting as a Dual Agent in providing brokerage services on their behalf and specifically consent to Licensee acting as a Dual Agent in regard to the transaction referred to in this document."
(d) No cause of action shall arise on behalf of any person against a dual
agent for making
disclosures allowed or required by this Article, and the dual agent does not
terminate any agency
relationship by making the allowed or required disclosures.
(e) In the case of dual agency, each client and the licensee possess only
actual knowledge and
information.  There shall be no imputation of knowledge or information among or
between clients,
brokers, or their affiliated licensees.
(f) In any transaction, a licensee may without liability withdraw from
representing a client who
has not consented to a disclosed dual agency.  The withdrawal shall not
prejudice the ability of the
licensee to continue to represent the other client in the transaction or limit
the licensee from
representing the client in other transactions.  When a withdrawal as
contemplated in this subsection
(f) occurs, the licensee shall not receive a referral fee for referring a
client to another licensee unless
written disclosure is made to both the withdrawing client and the client that
continues to be
represented by the licensee.
(g)    A licensee shall not serve as a dual agent in any transaction when the licensee, or an entity in which the licensee has or will have any ownership interest, is a party to the transaction.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
(225 ILCS 454/15-50)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-50. Designated agency.
(a) A sponsoring broker entering into an agreement with any person for the
listing of property
or for the purpose of representing any person in the buying, selling,
exchanging, renting, or leasing
of real estate shall specifically designate those licensees employed by or
affiliated with the
sponsoring broker who will be acting as legal agents of that person to the
exclusion of all other
licensees employed by or affiliated with the sponsoring broker.  A sponsoring
broker entering into
an agreement under the provisions of this Section shall not be considered to be
acting for more than
one party in a transaction if the licensees specifically designated as legal
agents of a person are not
representing more than one party in a transaction.
(b) A sponsoring broker designating affiliated licensees to act as agents of clients shall take
ordinary and necessary care to protect confidential information disclosed by a client to his or her
designated agent.
(c) A designated agent may disclose to his or her sponsoring broker or
persons specified by the
sponsoring broker confidential information of a client for the purpose of
seeking advice or
assistance for the benefit of the client in regard to a possible transaction.
Confidential information
shall not be disclosed by the sponsoring broker or other specified
representative of the sponsoring
broker unless otherwise required by this Act or requested or permitted
by the client who
originally disclosed the confidential information.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/15-55)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-55. 
		No subagency. 
		A broker is not considered to be a subagent of a client of another broker
solely by reason of
membership or other affiliation by the brokers in a multiple listing service or
other similar
information source, and an offer of subagency may not be made through a
multiple listing service
or other similar information source.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/15-60)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-60. 
		Vicarious liability. 
		A consumer shall not be vicariously liable for the acts or omissions of a
licensee in providing
licensed activities for or on behalf of the consumer.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/15-65)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-65. Regulatory enforcement. Nothing contained in this Article limits the Department in its regulation of licensees
under other Articles of
this Act and the substantive rules adopted by the Department.  The Department is
authorized to adopt any rules that may be necessary for the implementation
and enforcement
of this Article 15.
(Source: P.A. 101-357, eff. 8-9-19.)
(225 ILCS 454/15-70)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-70. 
		Actions for damages.
(a) In any action brought under this Article 15, the court may, in its
discretion, award only
actual damages and court costs or grant injunctive relief, when appropriate.
(b) Any action under this Article 15 shall be forever barred unless
commenced within 2
years after the person bringing the action knew or should reasonably have known
of such act or
omission.  In no event shall the action be brought more than 5 years after the
date on which
the act or omission occurred.  If the person entitled to bring the action is
under the age of 18 or
under legal disability the period of limitations shall not begin to run until
the disability is removed.
(Source: P.A. 91-245, eff. 12-31-99.)
(225 ILCS 454/15-75)
(Section scheduled to be repealed on January 1, 2030)
Sec. 15-75. Exclusive brokerage agreements. All exclusive
brokerage agreements must be in writing and specify that the sponsoring broker, through one or more sponsored licensees, must provide, at a minimum, the following services:
(1) accept delivery of and present to the client     offers and counteroffers to buy, sell, or lease the client's property or the property the client seeks to purchase or lease;
(2) assist the client in developing, communicating,     negotiating, and presenting offers, counteroffers, and notices that relate to the offers and counteroffers until a lease or purchase agreement is signed and all contingencies are satisfied or waived; and
(3) answer the client's questions relating to the     offers, counteroffers, notices, and contingencies.
(Source: P.A. 101-357, eff. 8-9-19.)