Updated April 23, 2024
An Illinois buyer agency agreement is a contract between an individual seeking to purchase real estate and a licensed agent. The agent agrees to assist the individual in locating a suitable property in exchange for payment. Generally, the agent will be paid a percentage of the sales price (commission) or a flat fee. However, compensation is usually provided by the seller’s listing brokerage and not by the buyer themselves. Buyers may still choose to offer compensation as a bargaining tactic; sellers might be more incentivized to sell if a portion of the commission fee has already covered by the buyer.
Laws – Section 1450.770
Disclosures
Agency Disclosure Form – If the licensee acts as a designated agent for the buyer, the licensee must disclose to the buyer, in writing, the nature of the agency relationship. This disclosure can be included in a brokerage agreement or written on a separate document. While there is no standardized disclosure form, the Disclosure of Designated Agency has been permitted for use by Illinois REALTORS®.[1]
Dual Agency – Real estate agents serving as a dual agent for both the buyer and seller may only do so by first obtaining the informed written consent of each party.[2]
Realtor Version
Chicago Association of REALTORS® – Exclusive agreement for Chicago only.
Illinois Association of REALTORS® – Exclusive agreement for outside of Chicago.