Agency

In Illinois, what must occur for a buyer brokerage agreement to be binding on the buyer?

AVerbal agreement is sufficient; written agreements are optional
BIt must be in writing, signed by the buyer, and specify the compensation and the scope of representation✓ Correct
CIt must be approved by the managing broker's supervising attorney
DIt must be registered with the IDFPR

Explanation

A buyer brokerage agreement in Illinois must be in writing and signed by the buyer to be enforceable and to establish the agency relationship. It should specify: the properties or geographic area covered, the compensation arrangement, the term of the agreement, and the duties of the buyer's agent. A written buyer's representation agreement is important for protecting both the buyer and the licensee's right to compensation.

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