IL RE Salesperson · Cheat Sheet
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Q: When must brokerage agreements be in writing? A: ALL agreements (listing, buyer rep, non-exclusive) — SB 3740 effective Jan 1, 2025. Oral agreements = prohibited and disciplinary violation.
Q: What is the buyer's termination right? A: 30-day unilateral termination annually (SB 3740).
Q: What must happen before showing a property? A: Written buyer representation agreement required (NAR Settlement + SB 3740).
Q: Five agency relationship types? A: Seller agency | Buyer agency | Dual agency | Designated agency (IL preferred) | Subagency
Q: When disclose agency? A: At first substantive contact (in writing, before price/terms/motivation).
Q: What are OLD CAR duties? A: Obedience | Loyalty | Disclosure | Confidentiality | Accounting | Reasonable care
Q: Does confidentiality end at contract? A: No — survives termination of agency.
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| Type | Fiduciary To | Key Rule | Written Req'd? |
| Seller Agency | Seller only | Full duties to seller | Yes (SB 3740) |
|---|---|---|---|
| Buyer Agency | Buyer only | Full duties to buyer | Yes — before showing |
| Dual Agency | Both | Written consent from BOTH | Yes + consent |
| Designated Agency (IL preferred) | Each separately via DMB | Broker = neutral; designated agents = full fiduciary to assigned party | Yes |
| Subagency | Seller (through listing broker) | Represents seller's interests | Yes |
| Term | Definition | ||
| Valid | All elements met; enforceable | ||
| Void | Never had legal effect; unenforceable by either party | ||
| Voidable | One party may rescind (e.g., misrepresentation, minority) | ||
| Unenforceable | Legally valid but cannot be enforced (e.g., Statute of Frauds violated) | ||
| Type | Agent Commission | Broker Obligation | |
| Exclusive Right to Sell | Yes (if anyone sells) | Yes — list in MLS | |
| Exclusive Agency | Yes (if agent sells) | Usually list in MLS | |
| Open | No — commission to all agents who procure | Rarely listed in MLS | |
| Net | Legal in IL but discouraged | Conflict of interest | |
| Rule | Detail | ||
| Deposit | Next banking day | ||
| Commingling | PROHIBITED (earnest money + client funds separate from broker's operating account) | ||
| Conversion | PROHIBITED (using client funds for broker's benefit = crime) | ||
| Records | 5 years retention | ||
| Reconciliation | Monthly | ||
| Item | Rule | ||
| Earnest Money Deposit | Due next banking day after acceptance | ||
| Attorney Review Period | 5 business days (standard IL contract term) | ||
| Failure to Timely Deliver | Breach by selling broker; disciplinary matter | ||
| Requirement | Impact | ||
| ALL brokerage agreements in writing | Listing, buyer rep, non-exclusive — NO oral agreements | ||
| Written agreement before showing | Buyer rep agreement signed before property tour | ||
| Buyer 30-day annual termination right | Can terminate unilaterally once per year | ||
| Brokerage name required in ads | Blind ads still prohibited | ||
| Failure to comply | Disciplinary violation (license suspension/revocation) | ||
| Formula | Use | ||
| (Sale Price ÷ 500) × $0.50 | IL state transfer tax | ||
| Annual Tax ÷ 365 × # Seller Days | Tax proration (seller credit) | ||
| Sale Price × Rate | Commission | ||
| NOI ÷ Cap Rate | Capitalization approach value | ||
| Sale Price ÷ Monthly Rent | Gross Rent Multiplier |
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Aligned to the Illinois IDFPR broker exam outline.
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