Real estate practice changes explained to consumers in Illinois

(Illinois REALTORS® Places a Consumer Education Letter in Newspapers Throughout the State and Lobbied to Make Changes
in License Law in Illinois)

Illinois REALTORS® placed consumer education letters in newspapers throughout the state and lobbied to make changes to Illinois license law

Illinois REALTORS® published an "open letter" to consumers to help explain new real estate industry practice changes that became effective on Sat., Aug. 17, 2024. The letter was published in major general consumer, community and ethnic newspapers throughout Illinois, starting Sun., Aug. 18. The industry changes are the result of an agreement negotiated earlier this year by the National Association of REALTORS® (NAR) to settle litigation from October 2023.

Illinois REALTORS® represents 50,000 licensed real estate agents across the state who are involved in every aspect of real estate transactions and who are members of NAR. The open letter helps consumers understand that REALTORS'® interest in the terms of the settlement was to protect consumers. The letter goes on to explain that the settlement also includes two real estate practice changes, including:

• Homebuyers who are working with a REALTOR® will be required to have a written agreement detailing the work the broker will do for them, the rate of compensation and how it will be paid. Illinois REALTORS® has long provided and encouraged the use of these written agreements to protect everyone in the transaction and this year successfully lobbied state lawmakers to amend Illinois real estate license law to require written brokerage agreements. (Read more about the license law change here.)
• Real estate agents will stop including shared compensation information on the Multiple Listing Service (MLS), the platform on which real estate agents list properties. Instead, brokers will communicate this information, in writing, privately or on their own websites. The amount of compensation will remain negotiable, as it has always been.

"REALTORS® subscribe to a strict Code of Ethics and are market experts trained to help guide you in everything from setting up the appointments, to negotiating the offer, to organizing inspections, and coordinating the closing on your home," reads the letter coauthored by Illinois REALTORS® 2024 President Matt Silver and CEO Jeff Baker.

Silver and Baker note that there is likely misinformation circulating regarding the practice changes. They said, "We want to take this opportunity to set the record straight and fully explain the changes."

The two leaders explain that agent compensation has always been and continues to be negotiable.

"In some cases, agents are paid directly by their buyer or seller client. However, in other cases, an agent may be paid indirectly, with the broker for the seller 'sharing' a portion of their compensation with the buyer's broker."

The two leaders confirm REALTORS®'s unwavering pledge to protect and promote the interests of their clients and to treat all parties honestly.

"For REALTORS® in Illinois, our highest priorities will always be fairness and transparency in every transaction and access to homeownership for EVERYONE. Today, we are emboldened to continue to be the strongest advocate for the buyers and sellers we serve every day."

Silver and Baker said REALTORS® remain committed to being the trusted advisor to homebuyers and provide their expertise to guide them in navigating the complex path to the largest and most significant financial transaction in their lives.

"Through every economic high or low and with every technological change, REALTORS® have been there to support their customers and communities, our state and nation," they wrote. The letter concludes by assuring consumers this time period will be no different.

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