Illinois Leasing Agent Practice Exam

In Illinois, what is true when two licensees from the same broker represent different parties in a transaction?

1. It results in dual agency

2. It avoids dual agency for the broker

3. It creates a conflict of interest

4. It requires written consent

The correct answer is: It avoids dual agency for the broker

When two licensees from the same broker represent different parties in a transaction, this situation does not lead to dual agency. In dual agency, a single agent represents both the buyer and the seller in a transaction, which can create a conflict of interest because the agent must balance the interests of both clients. However, when two different licensees under the same broker represent the respective parties, each licensee is acting exclusively for their client and is bound by their fiduciary duties to those clients. The broker, as the entity, remains neutral and allows both agents to operate in a manner that avoids the dual agency scenario. This arrangement ensures that each party receives adequate representation while upholding the broker's obligations under Illinois law, which is designed to protect the interests of all parties involved in a real estate transaction.