Knowing what an agency agreement means is vital to understanding the role a real estate agent plays, in regard to a real estate transaction.<\/p>\n
Every U.S. state has laws that outline what ‘real estate agency’ means and the laws cover buyer agency, dual agency and seller agency. There is the odd state that still has an exception for “facilitators” as no agency relationship has been set up. The foundation of agency law is that it defines a relationship between an agent and his or her client (or principle) and outlines the specific duties of each person.<\/p>\n
In the state of Illinois, that agency statute defines the agent’s duties to a client and they include disclosure, accounting, loyalty, obedience, care and confidentiality. All this really means in plain English is that the client’s interests MUST be placed above the agent’s interests. The one exception to this is when the client makes illegal demands.<\/p>\n