Il Nar Settlement Sb3740

Illinois NAR Settlement & SB 3740: Written Brokerage Agreements > Why this matters on the exam: Questions about SB 3740 and the NAR Settlement are among the most current and testable topics on the Illinois Real Estate Salesperson exam. Expect multiple questions testing whether you know *what* must be in writing, *when*, and *what happens* if you don't comply. --- ## Overview: Two Rules, One Big Shift Starting January 1, 2025, Illinois licensees must navigate two overlapping requirements that fundamentally changed how buyer representation works: 1. SB 3740 — Illinois state law making all brokerage agreements written-only 2. The NAR Settlement — A national industry agreement requiring written buyer agreements *before* touring homes and prohibiting MLS offers of buyer-agent compensation Together, these rules eliminate oral agency agreements in Illinois entirely. --- ## SB 3740: Illinois's Written Agreement Law ### What It Requires SB 3740 amended the Illinois Real Estate License Act of 2000 (RELA 2000) to require that all brokerage agreements be in writing. This means: - Listing agreements → must be written - Buyer representation agreements → must be written - Non-exclusive agreements → must be written - Oral brokerage agreements → prohibited as of January 1, 2025 A brokerage agreement is any agreement between a licensee (or their brokerage) and a client establishing an agency relationship. There are no exceptions based on how brief, informal, or "preliminary" the relationship is. ### The 30-Day Termination Right Under SB 3740, buyers have a unilateral right to terminate their written buyer representation agreement. Key details: | Feature | Rule | |---|---| | Who holds the right | Buyer only (unilateral) | | How often | Once per year (annually) |…