Il Sb3740 Written Agreements

# Illinois SB 3740: Written Agreements Requirement Understanding SB 3740 is essential exam knowledge — it represents one of the most significant recent changes to Illinois real estate law, and the exam will test whether you know exactly what it requires, when it took effect, and what happens when licensees fail to comply. --- ## Overview: What Is SB 3740? SB 3740 is an Illinois law that became effective January 1, 2025, mandating that all brokerage agreements in Illinois must be in writing. It eliminates the possibility of enforceable oral brokerage agreements entirely. This law works alongside the NAR Settlement requirements and is governed by the Illinois Real Estate License Act of 2000 (RELA 2000). --- ## Key Concepts ### The Core Rule: Written Agreements Are Mandatory Before SB 3740, a licensee might informally represent a buyer or seller based on an oral understanding. That is now prohibited. Under SB 3740: - Every brokerage agreement — listing agreements, buyer representation agreements, non-exclusive agreements — must be in writing. - Oral brokerage agreements are prohibited in Illinois as of January 1, 2025. - This applies regardless of how informal or short-term the relationship is intended to be. The Statute of Frauds has always required real estate *sales contracts* to be in writing to be enforceable. SB 3740 goes further by extending the written requirement to the agency/brokerage relationship itself — not just the property sale. --- ### Which Agreements Are Covered? | Agreement Type |…