Illinois guide

Buyer Brokerage Agreement Requirements Post-NAR Settlement (Illinois)

Before an agent shows you any home in Illinois, you must sign a written buyer agreement that spells out what the agent will do and what they want to be paid.

TL;DR

Before an agent shows you any home in Illinois, you must sign a written buyer agreement that spells out what the agent will do and what they want to be paid. This rule went nationwide on August 17, 2024 after a big real-estate lawsuit settlement, though Illinois law already required a written agreement to make someone your agent. The agreement must say the fee is negotiable — you can ask to pay less, and you can ask the seller to cover it in your offer.

Before you start — 9 things to know

  • You'll sign a written buyer agreement before your first home tour in Illinois — that includes in-person showings and virtual walkthroughs.

  • The agreement must clearly say (a) what services the agent will provide, (b) how much they want to be paid, and (c) that the fee is negotiable.

  • Buyer-agent fees are negotiable, and the (the shared listing system real-estate agents use to swap home info) is not allowed to set or post that fee.

  • This nationwide rule started August 17, 2024 after the (National Association of REALTORS) settled a class-action lawsuit over how agent commissions worked.

  • Illinois state law (the Real Estate License Act) already required a written agreement to make someone officially your agent — so Illinois buyers were partly used to this idea before the national change.

  • The seller can still offer to pay your agent, but that offer can't be advertised through the shared (the listing system) — it has to be negotiated separately.

  • You can ask the seller to cover your agent's fee inside your purchase offer — it's one of the terms you and your agent can negotiate when you write up the offer.

  • Short 'touring agreements' (good for a single home or a few days) are allowed in Illinois as long as they spell out the required pay terms and scope.

  • Read the term length and cancellation rules before signing — some agreements lock you in for months, while others cover only one property or one day.

The timeline — step by step

  1. You contact an Illinois agent and tell them you'd like to start looking at homes.

  2. Before any tour happens, the agent gives you a written buyer agreement to review — this step is required for any agent using the (the shared listing system).

  3. You read the agreement, check the services listed, look at the fee, and confirm in writing that the fee is negotiable and not set by any trade group.

  4. You sign — under Illinois' Real Estate License Act, that signed agreement is what officially makes the person your agent.

  5. Now the agent can show you homes, in person or virtually, and represent you while you compare listings.

  6. When you find a home, you write an offer — you can ask the seller to pay your agent's fee as part of the terms.

  7. At closing, your agent's pay comes out based on what you signed and what the purchase contract says.

Common questions

Do I really have to sign something before just touring one house?
Yes. Since August 17, 2024, any agent who uses the (the shared real-estate listing system) has to get a signed written agreement from you before touring a home — and that includes virtual walkthroughs. A short 'touring agreement' for one house is fine as long as it covers the required pay terms.
Can I switch agents if the first one isn't a good fit?
Maybe — it depends on what the agreement says. Some Illinois buyer agreements are limited to one property or a few days, while others lock you in for months. Read the term length and cancellation rules before you sign so you know your way out.
Who actually pays the buyer's agent?
It's negotiable. The seller can still offer to cover the buyer-agent's fee, you can pay it yourself, or you can ask the seller to pay it as a term of your purchase offer. The amount can't be set or advertised through the shared listing system anymore — it has to be worked out in writing between you, your agent, and the seller's side.
Why did this rule change in 2024?
The (National Association of REALTORS) settled a big class-action lawsuit about how agent commissions were shown to buyers and sellers. The fix was making fees clear, negotiable, and put in writing up front — so buyers know exactly what they're agreeing to pay before any home tour happens.
Is this an Illinois-only rule or a national one?
The 'sign before you tour' rule is national for any agent who uses an (the shared listing system) — and almost all agents do. Illinois state law already required a written agreement to make someone officially your agent, so Illinois buyers were partly used to this idea before the national change took effect.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

  1. [1]
  2. [2]

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