The M. Nack Team at Compass

Understanding Agency

Know exactly who's working for you.

"Agency" is just real-estate language for who an agent legally represents. Whether you're buying or selling, you deserve to know where your agent's loyalty lies — here's a clear, no-jargon look.

What agency means

When you hire us as your agent, we become your advocate and fiduciary — legally bound to act in your best interest. As a buyer's agent, we represent the buyer; as a listing agent, we represent the seller. In both roles we owe you honesty, loyalty, confidentiality, and full disclosure of anything that affects your decision.

The one situation worth understanding up front is when a single agent ends up representing both sides of the same transaction — known as dual agency. More on that below.

The official guide

Illinois REALTORS® Consumer's Guide to Agency

Illinois REALTORS® publishes a short, official guide that explains the types of agency and what each means for you as a consumer. We'll review it together before you sign anything.

Read the Consumer's Guide to Agency (PDF) →

Dual agency

When one agent represents both sides.

Sometimes the agent representing the seller also represents the buyer on the very same property. Because both clients may rely on the same agent's advice — and their interests can be opposed — this is a potential conflict of interest. For that reason, an agent will act as a dual agent only with the written consent of all clients in the transaction. Any final price and terms result from negotiation between the clients, each acting in their own interest.

As a dual agent, we CAN

  • Treat all clients honestly
  • Provide information about the property
  • Disclose all known latent material defects
  • Disclose the buyer's financial qualification to the seller
  • Explain real estate terms, closing costs, and procedures
  • Help arrange property inspections
  • Help the buyer compare financing alternatives
  • Provide comparable-sales data so both clients can decide for themselves

As a dual agent, we CANNOT

  • Share a client's confidential information without permission
  • Tell the buyer the lowest price the seller will accept (beyond the list price)
  • Tell the seller the highest price the buyer will pay
  • Recommend a price the buyer should offer
  • Recommend a price the seller should counter with or accept
This is a plain-language summary for your understanding — not a consent form. If dual agency ever comes up in your transaction, we'll explain it fully and provide the formal written disclosure for your decision.

Questions about representation?

We're happy to walk you through exactly how we'd represent you — before you commit to anything.

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