SPRINGFIELD, Ill. — Illinois REALTORS® has published an “open letter” to consumers to help explain new real estate industry practice changes that become effective on Sat., Aug. 17, 2024. The letter is being published in major general consumer, community, and ethnic newspapers throughout Illinois, beginning this 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.

For more information, visit www.IllinoisRealtors.org or contact your local REALTOR®.

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Illinois REALTORS® is a voluntary trade association whose more than 50,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, Illinois REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership.