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What is an Exclusive Right to Sell Agreement in Illinois?

What is an Exclusive Right to Sell Agreement in Illinois?

When you decide to sell your home in Illinois, you want the process to go as smoothly as possible. You can find a qualified buyer, get a good price, and close the deal without major hiccups. You will likely work with a real estate agent or broker to make this happen. And when you do, they will probably ask you to sign an “Exclusive Right to Sell Agreement.”

But what exactly does this Agreement entail? What rights and obligations does it bestow on you and your agent? Understanding this contract is crucial before you sign on the dotted line, and a skilled Illinois real estate lawyer can help you with that.

What’s in the Agreement?

An Exclusive Right to Sell Agreement is a legal contract between you, the seller, and the real estate agent (and possibly their brokerage firm) you hire to sell your property. When you sign this Agreement, you grant that agent the exclusive right to market, list, and sell your home for a specified period, usually 2-6 months.

This means a few important things:

  • You cannot hire another broker or agent to sell your home during the contract term. The brokerage you sign with gets the exclusive right.
  • You will owe the brokerage a commission if your property sells during the term of the Agreement, no matter who finds the buyer – you, the broker, or someone else. Even if a friend or family member purchases your home without the broker’s involvement, you still owe the agreed-upon commission.
  • The broker earns their commission when a ready, willing, and able buyer signs a contract to purchase your property at the listed price and terms. At that point, even if the deal later falls through, you may still owe the commission unless the contract states otherwise.

Why Do Brokers Use This Agreement?

An Exclusive Right to Sell Agreement protects the broker’s interests. By getting the exclusive right to sell your property, the broker knows any work they put into marketing and showing your home will pay off if a sale occurs. They don’t have to worry about you striking a deal with someone else and cutting them out of their commission.

The Agreement also outlines the broker’s services, such as listing your property on MLS, hosting open houses, coordinating showings, and handling paperwork and negotiations with buyers. In return, you agree to refer all interested parties to the broker and to cooperate with their efforts to sell your property.

Is the Agreement Good for Me?

As a seller, an Exclusive Right to Sell Agreement does limit your flexibility in some ways. You can’t simultaneously try to sell the home yourself or hire multiple agents unless you want to pay multiple commissions. But in most cases, having one broker fully dedicated to selling your property and knowing precisely what you will owe them provides welcome peace of mind.

Before signing an Exclusive Right to Sell Agreement, ensure you understand all the terms. How long will the Agreement last? What is the exact commission percentage? Are there any exceptions to you owing a commission? What services will the broker provide? When you engage a knowledgeable real estate attorney, they can review the contract and help protect your interests.

Get a Skilled Lawyer on Your Team Today

If you are selling a home in Kane, McHenry, DuPage, or Cook County, Illinois, the attorneys at The Law Office of Vogel and Mourelatos, LLC will gladly assist you. Our team has extensive experience with real estate transactions and contracts. We can review an Exclusive Right to Sell Agreement, advise you on the terms, and ensure that your interests as a seller are fully protected.

Reach out today by phone at 847-428-7725 or contact us online to discuss how we can help make your home-selling journey successful.