ADMINISTRATIVE CODE
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 PROPERTY MANAGEMENT AGREEMENTS


 

Section 1450.770  Brokerage Agreements and Property Management Agreements

 

a)         A sponsoring broker entering into a brokerage relationship shall set forth the terms of that relationship in a written brokerage agreement pursuant to Section 15-50 of the Act.

 

b)         Exclusive brokerage agreements, including exclusive listing agreements and exclusive buyer or tenant brokerage agreements, shall:

 

1)         Be in writing and shall indicate the minimum services that must be provided as set forth in Section 15-75 of the Act.  For purposes of this Section, "in writing" or "written" means physical or electronic writing.

 

2)         Failure to include language in a brokerage agreement providing for minimum services as set forth in Section 15-75 of the Act or language waiving those minimum services 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.

 

3)         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 or tenant brokerage agreement only if:

 

A)        The consumer initiates the contact; or

 

B)        The following occurs:

 

i)          The licensee makes a request in writing, mailed or emailed, to the sponsoring broker who has the exclusive agreement for the expiration date of the agreement between the consumer and the sponsoring broker who has the exclusive brokerage agreement;

 

ii)         The licensee who has the exclusive brokerage agreement fails to provide a response in writing, mailed or emailed, within 10 calendar days;

 

iii)        The information from the broker or sponsoring broker who has the exclusive brokerage agreement is not received within 14 calendar days; and

 

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

 

c)         Written buyer or tenant 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, designated agents, and the buyers or tenants;

 

3)         Signatures of the sponsoring broker, the buyers, tenants, or authorized signatories on behalf of the buyers or tenants;

 

4)         Duties of the buyer or tenant's broker, or duties of the residential leasing agent; and

 

5)         The duration of the brokerage agreement, including an automatic expiration date, or if longer than one year, the right to terminate the agreement annually with 30 days prior written notice; and

 

d)         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 and any amounts paid to cooperating brokers who represent other parties to a transaction;

 

3)         Name of the sponsoring broker, designated agents, and owners of the real property;

 

4)         Identification of the real property involved (address and/or legal description);

 

5)         Signatures of the sponsoring broker and owners or an authorized signatory on behalf of the owners;

 

6)         Duties of the listing broker or residential leasing agent; and

 

7)         The duration of the listing agreement, including an automatic expiration date, or if longer than one year, the right to terminate the agreement annually with 30 days prior written notice.

 

e)         Written property management agreements shall be required if duties performed include licensed activity as defined by "broker" in Section 1-10 of the Act.

 

f)         Written property management agreements shall at a minimum contain the following:

 

1)         Identification of the real property involved (address and/or legal description);

 

2)         Name of the sponsoring broker, designated agents, and owners of the real property;

 

3)         Signatures of the sponsoring broker and owners or an authorized signatory on behalf of the owners;

 

4)         Duties of the broker managing the property and of the owner;

 

5)         List price;

 

6)         Agreed payment or amount of compensation and the timing of payments, and any amounts paid to cooperating brokers, including those who represent other parties to the transaction;

 

7)         The duration of the property management agreement, including an automatic expiration date, or if longer than one year, the right to terminate the agreement annually with 30 days prior written notice.

 

g)         Licensees shall enter into a written brokerage agreement with a client as soon as reasonably practical but no later than:

 

1)         showing or marketing the property of a seller or owner; or

 

2)         prior to initiating the purchase or lease of a property for a buyer or tenant.

 

h)         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.

 

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

 

j)          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 any remaining 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.

 

k)         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, race, color, religion, national origin, sex, ancestry, age, marital status, physical or mental disability, familial status, pregnancy, sexual orientation, including, but not limited to, gender identity, unfavorable discharge from the military service, military status, order of protection status, an arrest record, immigration status, source of income, or any other class protected by Article 3 of the Illinois Human Rights Act.

 

l)          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.

 

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)