In Brief
In Illinois, an agent must have a signed written agreement with you before touring a home together, in person or by live video. MLS rules have required it since August 17, 2024, and Illinois law has required written buyer agreements since January 1, 2025. The agreement spells out your agent's services, the term, whether it's exclusive, and exactly how your agent's brokerage is paid. You don't need one to talk with an agent or walk into an open house on your own.
Why Do You Have to Sign an Agreement Before Your First Showing?
Because the rules changed. Since August 17, 2024, real estate agents who belong to a multiple listing service have to have a written agreement with a buyer before touring a home with them. Illinois went a step further. Starting January 1, 2025, the Illinois Real Estate License Act requires every brokerage agreement to be in writing, including agreements with buyers. So if an agent asks you to sign something before a showing in Naperville or Wheaton, they're not being pushy. They're following the law.
This agreement actually protects you. It puts in writing what your agent will do for you, how long they'll do it, and how they get paid. Before these changes, a lot of buyers never saw any of that in writing.
What Does a Buyer Representation Agreement Actually Cover?
The forms vary by brokerage, but a solid agreement answers a handful of plain questions:
- Who represents you, and what services they'll provide.
- How long the agreement lasts, and whether it covers any home or only certain properties or areas.
- Whether it's exclusive, meaning you're working with just this agent, or non-exclusive.
- How much your agent's brokerage will be paid, stated as a specific amount or percentage.
- Who pays that compensation, and what happens if a seller offers more or less than the agreed amount.
- How either side can end the agreement.
Read it the same way you'd read any contract you sign. If something isn't clear, ask before you sign, not after you've fallen for a house.
How Does the Buyer's Agent Get Paid Now?
Offers of compensation to buyer's brokerages no longer appear in the MLS. That doesn't mean sellers can't pay the buyer's brokerage. They still can, and many do. It means the conversation happens outside the MLS, and your agreement is what sets the number. That compensation is paid to your agent's brokerage, which then pays your agent their share.
Under the new rules, your agent's brokerage can't be paid more than the amount in your agreement. If a seller offers more, the extra doesn't go to the brokerage. If a seller offers less, or nothing, your agreement spells out how the gap is handled. Often it becomes part of your offer, where you ask the seller to cover it.
I'll go deeper on the terms worth negotiating and how compensation plays out in an offer in future posts. For now, know that the number is set in writing, up front, and it's negotiable.
Exclusive or Non-Exclusive: Which Should You Sign?
An exclusive agreement means one agent represents you for the term of the agreement. That agent commits real time to your search: setting up searches, previewing homes, pulling sold comparisons, and walking you through the offer and attorney review.
A non-exclusive agreement lets you work with more than one agent. Some agents will also offer a short agreement that covers a single showing or a single day, which is handy if you're just starting out or seeing one house.
My honest take after decades of doing this: pick the agent first, then sign. Interview two or three. Ask how they'd handle a multiple-offer situation, how well they know the towns you're considering, and who'll actually show up to your showings. Then sign with the one you trust.
When Don't You Need an Agreement?
You don't need one just to talk to an agent, ask questions, or get advice on a market. You don't need one to walk into a public open house on your own. The requirement kicks in when an agent tours a home with you, in person or through a live virtual tour.
New construction is its own situation. The builder's sales rep works for the builder, not you. If you want your own agent at your side, bring them on your first visit, because many builders require it. My new construction buying checklist covers what to confirm before signing with a builder.
What Should You Do Before Your First Showing?
Get two things in order before you tour anything. First, your financing. A pre-approval tells you your real price range and makes your offer credible. My guide to getting pre-approved in the Chicago suburbs walks through the documents lenders want.
Second, your agent and your agreement. Sit down, read it together, and ask every question you've got. A good agent will welcome it. You can also browse the newest homes to hit the market and bring a short list to that first meeting, so you're ready to go the moment the paperwork is done. My home buying resources cover the rest of the process.
Key Takeaways
- Agents must have a signed written agreement with you before touring a home together.
- Illinois law has required all brokerage agreements, including buyer agreements, to be in writing since January 1, 2025.
- The agreement spells out services, term, exclusivity, and exactly how your agent's brokerage is paid.
- Your agent's brokerage can't be paid more than the amount in your agreement, and that amount is negotiable.
- You don't need an agreement to talk with an agent or to walk into an open house on your own.
- Choose your agent first, read the agreement closely, and ask questions before you sign.
Frequently Asked Questions
How do I get out of a buyer representation agreement?
Look at the termination terms in the agreement itself, since they vary by brokerage and form. Ask about them before you sign. If you have concerns about a signed agreement, talk with the agent's managing broker or a real estate attorney.
Do I have to pay anything when I sign a buyer agreement?
Usually not. In most agreements, compensation is earned and paid to your agent's brokerage at closing, often by the seller or as part of your offer. Read the agreement for any fee due before closing, and ask about it before you sign.
Can I sign a buyer representation agreement electronically?
Yes. Most brokerages send the agreement for electronic signature, so you can review and sign it from your phone or computer. Take the time to read it either way, and ask your agent to walk you through any term you're unsure about.
What happens to my agreement if my agent leaves their brokerage?
In Illinois, a brokerage agreement is with the agent's brokerage, not only the individual agent. If your agent leaves, the brokerage can assign another agent or talk with you about ending the agreement. If that were to happen, call the managing broker to sort it out in writing.
