Can a licensee act on behalf of both a lessor and a lessee in Illinois?

The correct answer is that a licensee can act on behalf of both a lessor and a lessee in Illinois if they have the informed written consent of all parties involved. This is based on the principles of dual agency, where a licensee represents both parties in a transaction. The requirement for informed written consent ensures that all parties are fully aware of the arrangement and agree to it, thus maintaining transparency and protecting the interests of both the lessor and lessee.

Informed consent is crucial because it mitigates potential conflicts of interest and helps maintain trust in the agency relationship. Without obtaining this consent, the licensee could face ethical and legal issues, as dual agency can lead to situations where the licensee's ability to advocate for either party is compromised.

The other choices highlight different aspects of agency laws and the role of brokers, but they do not accurately reflect the necessary conditions under which a licensee may represent both sides in a transaction. In Illinois, while it is true that there are specific regulations regarding agency, the key takeaway is that consent from both parties is essential for dual agency to be permissible.