Before you read
Test yourself first: 5 questions
Question 1 of 5
When ONE Illinois licensee represents both the buyer and the seller in the same transaction (true dual agency), what does the Act require?
Answer: B. Dual agency is permitted in Illinois only with the prior written informed consent of both the buyer and the seller. The disclosure explains the limitations on the duties the licensee can perform for each party. It is not prohibited, does not require IDFPR pre-approval, and oral notice at closing is insufficient.
Question 2 of 5
Which Illinois statutory duty requires a licensee to keep a CLIENT's confidential information private even after the agency relationship ends?
Answer: B. The duty of confidentiality protects a client's confidential information (such as motivation or the lowest price they will accept) and survives the termination of the agency relationship. Obedience, skill/care, and customer disclosure are separate duties that do not specifically address post-relationship confidentiality.
Question 3 of 5
In Illinois, before a licensee may act as a DUAL agent representing both the buyer and the seller, the licensee must:
Answer: B. Dual agency is allowed in Illinois only with written disclosure and the informed written consent of both the buyer and seller. Acting as a dual agent without that consent is undisclosed dual agency, a serious violation.
Question 4 of 5
An Illinois licensee shows a property to an unrepresented buyer who has not entered any agency agreement with the licensee, who represents the seller. The buyer is properly treated as a:
Answer: B. An unrepresented buyer with no agency agreement is a customer of the seller's agent. The licensee owes the customer honesty, fair dealing, and disclosure of known latent material defects, but owes loyalty and advocacy only to the seller, who is the client.
Question 5 of 5
An Illinois licensee learns from the seller that the roof leaks, but the seller marks the disclosure report as having no roof defects. What is the licensee's obligation regarding this known latent material defect?
Answer: B. Illinois licensees must deal honestly and may not conceal known latent material adverse facts about the property from any party. A licensee cannot follow a client's instruction to hide a known defect like a leaking roof; the duty of honesty and the prohibition on misrepresentation require disclosure to prospective buyers, including customers.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Licensees must disclose their agency relationship to consumers and cannot conceal known latent material defects. Illinois also requires disclosure of certain known conditions such as lead-based paint hazards in pre-1978 homes and, where applicable, radon awareness information.
Illinois Seller and Licensee Disclosure Duties: FAQs
Is Illinois Seller and Licensee Disclosure Duties on the real estate exam?
Yes. State License Law is a scored domain on the Illinois real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Illinois test this differently?
Illinois applies its own license law on top of the national portion. This page covers the Illinois rules specifically, which is what the state section of your exam tests.
