What is true regarding dual agency in Illinois?

In Illinois, the concept of dual agency refers to a situation where a single agent represents both the seller and the buyer in a real estate transaction. This can create potential conflicts of interest since the agent must balance the needs and interests of both parties.

The understanding that it is prohibited if the seller is a licensee selling their own property is particularly important. This prohibition exists because a licensee acting as a seller has professional obligations and knowledge that may give them an advantage in negotiation over an unrepresented buyer. For the integrity of the transaction and to protect consumer interests, Illinois law mandates that, in such situations, dual agency cannot occur.

This ensures that when a licensed real estate professional is involved in the sale of their own property, they must act with transparency and fairness, thereby avoiding possible exploitation of their knowledge and experience in negotiations with the buyer. Thus, an understanding of this regulation is crucial for maintaining ethical standards in real estate practices in Illinois.

The other options misrepresent aspects of dual agency and do not accurately reflect the legal framework set by Illinois law regarding real estate transactions.