Also known as Split Agency, Appointed Agency. Agency relationship where the Broker appoints one agent in the office to represent the seller and another agent in the same office to represent the Buyer. Caution: This is a relatively new concept and has not been tested in the Courts yet. Prior relationships or conversatins between the 2 agents appointed could possibly create a conflict of interest. Example: Agent A (representing the buyer) tells Agent B (not involved at this point) that he has a Client that has financially qualified for up to $150,000. Later, the Buyer decides to make a $125,000 offer on a property listed by the same agency. The Broker appoints Agent B to represent the Seller. Since Agent B already knows the Buyer can qualify for $150,000 must he tell the Seller? Remember, he is obligated to reveal any information that he knows that would help the Seller.
Illinois law now operates under the Designated Agency rules as of January, 2000. A single agent within a company can be "designated" as the sole agent of the seller or buyer. Contracts are signed by either Buyer or Seller acknowledging that the individual agent is their sole representative. All agents do not represent the seller as was true historically. The Broker of the company assume a managerial role and is required to supervise that agent and to keep confidential any information important to the seller or buyer.
This arrangement with a real estate brokerage company will result in one or more sales associates being designated as your legal agent. You can enter into this arrangement either as a seller or buyer. Other sales associates in the firm may be the legal agents of other buyers and sellers and may be the legal agent of the party who buys your property or from whom you buy property. The only individuals owing you fiduciary duties are those designated as your legal agent and not the real estate brokerage company itself or all other sales associates with that company. A real estate brokerage company will generally offer this service to provide representation for both buyers and sellers.
One or more agents from a company are appointed by the sponsoring broker to be the legal/designated agent for the client:- Presumed to be representing the person with whom the agent is working unless there is a written agreement otherwise;- Other agents in a sponsoring broker's firm might be designated agents for other buyers and sellers and may be the legal agent for the opposite party in the client's transaction;- The brokerage agreement will be a contract with the brokerage company but the designated agent will be the only legal agent for the client.
A business relationship where the broker may, with the consumer's consent, designate one or more licensees employed by the broker to represent the consumer, thereby allowing other licensees employed by that broker to represent other parties to the transaction. This relationship allows buyers and sellers to keep working with their selected licensees, even if they work for the same broker, and to receive the benefit of their loyalty and confidentiality. While the broker becomes a dual agent, the designated agents retain their duties to their respective clients. For more details, see the explanation given in the Consumer Notice.