Key Takeaways
- Illinois requires written brokerage agreements for exclusive relationships
- Exclusive right to sell listings guarantee commission regardless of who finds buyer
- Exclusive buyer representation agreements must be in writing to be enforceable
- Net listings are LEGAL in Illinois but discouraged and require disclosure
- All listing agreements must include a definite termination date
Last updated: January 2026
Brokerage Agreements
Understanding brokerage agreements is essential for Illinois practice.
Types of Listing Agreements
Exclusive Right to Sell
| Feature | Description |
|---|---|
| Commission | Owed regardless of who sells |
| Protection | Best for broker |
| MLS | Typically required for MLS |
| Most common | Standard listing type |
Exclusive Agency
| Feature | Description |
|---|---|
| Broker protection | Commission if broker sells |
| Owner exception | Owner can sell without commission |
| Less common | More risk for broker |
Open Listing
| Feature | Description |
|---|---|
| Multiple brokers | Can list with several |
| Procuring cause | Only one earns commission |
| No exclusivity | No broker protected |
| Least common | High risk for brokers |
Net Listing
| Feature | Description |
|---|---|
| Illinois status | LEGAL but discouraged |
| Disclosure | Must disclose conflicts |
| Commission | Amount over net price |
| Risk | Potential for abuse |
Important: Unlike many states, net listings ARE legal in Illinois, but carry significant disclosure requirements.
Required Agreement Elements
For All Listings
| Element | Requirement |
|---|---|
| In writing | For exclusive listings |
| Parties | Names of all parties |
| Property | Address/legal description |
| Price | Listed price |
| Commission | Rate or amount |
| Term | Definite start and end dates |
| Signatures | All required parties |
Termination Date
| Requirement | Details |
|---|---|
| Must have | Definite end date |
| Cannot be | Open-ended |
| Automatic renewal | Must be clearly stated |
Buyer Representation Agreements
Written Agreement Required
| Requirement | Details |
|---|---|
| Exclusive representation | Must be written |
| Compensation | How agent is paid |
| Term | Duration of agreement |
| Duties | Agent's obligations |
| Termination | How to end |
Types
| Type | Description |
|---|---|
| Exclusive buyer agency | One broker represents |
| Non-exclusive | Buyer can use multiple |
Termination of Agreements
| Method | Description |
|---|---|
| Expiration | End of term |
| Mutual consent | Both agree |
| Performance | Sale completed |
| Breach | One party violates |
| Death | Principal or agent |
| Bankruptcy | Principal becomes insolvent |
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Test Your Knowledge
Are net listings legal in Illinois?
A
B
C
D
Test Your Knowledge
Under an exclusive right to sell listing, who must pay the broker's commission?
A
B
C
D