Do I Have to Sign a Buyer’s Agreement in Illinois Before Looking at Homes?
If you’re in the market to buy a home in Illinois, you might be hearing a lot of talk about buyer’s agreements, and whether you need one just to start touring homes. The short answer is: it depends on how you plan to view homes and whether you’re working with a licensed agent. Let’s break it down in plain language so you know what to expect.
🏡 1. Walking Through an Open House, No Agreement Needed
You do not need to sign a buyer’s agreement just to attend an open house on your own. Whether you stop by a weekend open house or walk through a listing hosted by a seller’s agent, that’s considered a public showing, and no formal buyer representation agreement is required for that.
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🤝 2. Working With a Real Estate Broker? Yes a Written Agreement Is Required Before Tours
Here’s where things have changed recently:
As of August 17, 2024, Illinois law (in response to industry practice changes tied to the National Association of Realtors settlement) requires that a buyer and their real estate agent enter into a written buyer agency/representation agreement before the agent can show homes, whether in person or virtually.
This means that if you want a licensed Illinois real estate broker to work on your behalf (e.g., schedule showings, send listings, coordinate tours), you’ll be asked to sign a buyer’s agreement first.
That written agreement:
- Outlines the services the agent will provide you
- Specifies how the agent is compensated
- Sets expectations about the relationship (exclusive vs non-exclusive) and how long it lasts
Illinois law also independently requires exclusive brokerage agreements (including buyer agreements) to be in writing and detail key elements like compensation terms and duties.
📋 3. Why This Rule Exists
This shift stems from changes in industry practice following a major legal settlement that altered how broker compensation and representation relationships work nationwide. As part of that, licensed brokers must now have clear, written agreements with buyers before performing meaningful work like showing properties and before entering into the fiduciary relationship that comes with representation.
The goal? Greater transparency and clarity upfront between buyers and agents, including how compensation is handled, so both sides know what they’re agreeing to from the start.
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📌 4. What If You Don’t Sign One?
Without a signed buyer’s agreement:
- A broker generally cannot show you homes as your representative
- You won’t have the fiduciary protections that come with formal representation
- The agent can’t legally negotiate on your behalf in most cases
Instead, if you’re visiting properties without representation, you’re either:
- Attending open houses on your own, or
- Asking a seller’s agent hosting a showing for basic information, in which case they may issue a statutory Notice of No Agency to clarify they represent the seller, not you.
🧠 5. So What Should Homebuyers Do?
✔️ Ask questions early. Before any tours, make sure you understand what the buyer’s agreement says, especially regarding compensation and exclusivity.
✔️ Negotiate terms. Compensation is negotiable between you and your agent, even if the seller may offer to pay part of it.
✔️ Understand your rights. You don’t have to sign the very first agreement offered, take time to review and ask for clarity.
✔️ Use it to your advantage. A written buyer’s agreement helps define expectations, protects your interests, and gives you a reliable partner through one of the most important financial decisions of your life.
Thinking about buying in Downtown Chicago or the West Loop?
Connect with our local buyer specialist Kimberly Evetts who can walk you through the agreement, compensation, and strategy before you step into your first showing.
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