TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VIII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1450 REAL ESTATE LICENSE ACT OF 2000
SECTION 1450.770 BROKERAGE AGREEMENTS AND LISTING AGREEMENTS


 

Section 1450.770  Brokerage Agreements and Listing Agreements

 

a)         Exclusive brokerage agreements, including exclusive listing agreements and exclusive buyer brokerage agreements, shall be in writing and shall indicate the minimum services that must be provided as set forth in Section 15-75 of the Act. Failure to include language in a brokerage agreement providing for minimum services as set forth in Section 15-75 of the Act or language in the brokerage agreement waiving those minimum services provided for in Section 15-75 of the Act will, under the definition of "exclusive brokerage agreement" in Section 1-10 of the Act, result in the brokerage agreement being considered to be non-exclusive.

 

b)         Written buyer brokerage agreements, whether exclusive or non-exclusive, shall contain the following:

 

1)         agreed basis or amount of compensation and time of payment;

           

2)         name of the sponsoring broker and the buyer;

 

3)         signatures of the sponsoring broker and the buyer or an authorized signator on behalf of the buyer;

 

4)         duties of the buyer's broker; and

 

5)         One of the following, clearly set forth:

 

A)        the duration of the buyer brokerage agreement; or

 

B)        the client's right to terminate the agreement annually by giving no more than 30 days prior written notice.

 

c)         Written listing agreements, whether exclusive or non-exclusive, shall contain the following:

 

1)         list price;

 

2)         agreed basis or amount of commission and the time of payment of the commission;

           

3)         name of the sponsoring broker and seller;

 

4)         identification of the real property involved (address or legal description);

 

5)         signatures of the sponsoring broker and owner or an authorized signator on behalf of the owner;

 

6)         duties of the listing broker; and

 

7)         One of the following, clearly set forth:

 

            A)        the duration of the listing agreement; or

 

B)        the client's right to terminate the agreement annually by giving no more than 30 days prior written notice.

 

d)         Pursuant to Section 10-25 of the Act, a licensee shall only obtain a written brokerage agreement that either provides for automatic expiration within a definite period of time or provides the client with a right to terminate the agreement annually by giving no more than 30 days prior written notice.  Any written brokerage agreement containing a provision to the contrary shall be void.

 

e)         Written brokerage agreements shall expressly provide that no amendment or alteration to the terms, with respect to the amount of commission or with respect to the time of payment of commission, shall be valid or binding unless made in writing and signed by the parties.

 

f)         No licensee shall use real estate contract forms to change previously agreed commission payment terms.

 

g)         If a listing agreement states that, in the event of a default by a buyer, the sponsoring broker's full commission or fees will be paid out of an earnest money deposit, with the remainder of the earnest money to be paid to the seller, the provision shall appear in the listing agreement in letters larger than those generally used in the listing agreement.

 

h)         Each brokerage agreement shall clearly state that it is illegal for either the owner or any licensee to refuse to show, display, lease or sell to any person because of one's membership in a protected class, e.g., race, color, religion, national origin, sex, ancestry, age, marital status, physical or mental disability, familial status, sexual orientation, unfavorable discharge from the military service, military status, order of protection status or any other class protected by Article 3 of the Illinois Human Rights Act.

 

i)          Each brokerage agreement for a residential property of 4 units or less that provides for a protection period subsequent to its termination date shall also provide that no commission or fee will be due and owing pursuant to the terms of the brokerage agreement if, during the protection period, a valid, written brokerage agreement is entered into with another sponsoring broker.

 

j)          A licensee may discuss a possible future brokerage agreement with a consumer whose property is exclusively listed with another sponsoring broker or who is subject to a written exclusive buyer brokerage agreement only if:

 

1)         the consumer initiates the contact; or

 

2)         the following occurs:

 

A)        the licensee makes a request, in writing and mailed return receipt requested, of the broker or sponsoring broker who has the listing agreement for the type and expiration date of the brokerage agreement between the consumer and the broker or sponsoring broker who has the listing agreement;

 

B)        the licensee who has the listing agreement fails to provide a response in writing, mailed return receipt requested, within 10 calendar days;

 

C)        the information from the broker or sponsoring broker who has the listing agreement is not received within 14 calendar days; and

 

D)        the requested information cannot be obtained by the licensee from another source of shared broker information.

 

(Source:  Amended at 40 Ill. Reg. 12588, effective September 2, 2016)