Agency Relationships

Question 1

Buyer’s Agent

Answer 1

An agent representing the interests of the buyer of a property

Question 2

Client

Answer 2

A person being represented by a licensee. Also called a Principal

Question 3

Consumer

Answer 3

A person or entity seeking or receiving licensed activities

Question 4

Contemporaneous Offers

Answer 4

Offers to purchase or lease on behalf of two or more clients represented by the same designated agent for the same real estate parcel or unit that the designated agent knows, or has known, or has reason to know will be taken under consideration by the owners or owner’s representative at the same time.

Question 5

Customer

Answer 5

A party in a transaction with whom an agent does not have a fiduciary duty or relationship, but with whom an agent must still be fair and honest.

Question 6

Designated Agency

Answer 6

A contractual relationship between a sponsoring broker and a client in which one or more licensees associated with or employed by the sponsoring broker are appointed to be the designated agent of the client.

Question 7

Designated Agent

Answer 7

A sponsored licensee appointed by a sponsoring broker as the legal agent of a client.

Question 8

Dual Agency

Answer 8

An agency relationship in which a licensee is representing both buyer and seller or both landlord and tenant in the same transaction.

Question 9

Dual Agent

Answer 9

A licensee who represents both the buyer and the seller (or the landlord and the tenant) in a single real estate transaction.

Question 10

First Substantive Contact

Answer 10

An event triggering agency disclosure (e.g., prior to entering into a listing agreement, prior to showing a property, at an open house when a buyer displays serious interest, etc.).

Question 11

In-House Transaction

Answer 11

A real estate transaction in which the listing broker, or another licensee affiliated with that sponsoring broker, procures a buyer for the listed property.

Question 12

Listing Agreement

Answer 12

A written agency contract between a seller and a real estate broker stipulating the broker will be paid a commission for finding (or attempting to find) a buyer for the seller’s real property.

Question 13

Material Fact

Answer 13

An important fact; one that is likely to influence a decision.

Question 14

Minimum Services

Answer 14

The specific services mandated in the Illinois Real Estate License Act that a broker owes a client with whom there is an exclusive agency agreement. The minimum services include presentation of all offers, assisting the client in negotiating offers until a sale or lease contract is signed and contingencies met or waived, and answering the client’s questions related to offers.

Question 15

Ministerial Act

Answer 15

Acts that a licensee may perform for a consumer that are informative or clerical in nature and do not rise to the level of active representation on behalf of the consumer.

Question 16

Non-Agency

Answer 16

When a licensee is not performing the minimum services required under an exclusive brokerage agreement, and is, therefore, not acting as the consumer’s agent; this fact must be disclosed in writing to the consumer by the licensee.

Question 17

Notice of Ministerial Acts

Answer 17

A disclosure form given to consumers to inform them of the nature of agency relationships before any confidential information is revealed so that there are no questions about who represents them, or does not represent them.

Question 18

Seller’s Agent

Answer 18

An agent representing the interests of the seller of a property. Also called listing agent.

Question 19

Selling Agent

Answer 19

The agent who secures a buyer for a property.

Question 20

Undisclosed Dual Agency

Answer 20

Very often may be practiced unintentionally, possibly by implying to a party that, for example, an agent’s loyalty is to them when the agent’s duty is actually to someone else.