Illinois License Law

What is a 'pocket listing' and what are the ethical and legal considerations in Illinois?

AA listing held exclusively in the broker's pocket until the right buyer appears; always legal in Illinois
BA property for sale not publicly listed in the MLS; may raise concerns about fair housing, fiduciary duties to sellers, and NAR's Clear Cooperation Policy✓ Correct
CAn off-market property that is never listed publicly; illegal under Illinois law
DA listing with reduced commission paid in cash; standard practice in some markets

Explanation

A pocket listing is a property sold without being publicly listed in the MLS. While not illegal in Illinois, pocket listings raise concerns: (1) fair housing issues if certain buyers aren't informed of available properties; (2) breach of fiduciary duty to the seller by limiting market exposure; and (3) NAR's Clear Cooperation Policy (requires MLS submission within 1 business day of public marketing) may apply to REALTOR members. Sellers can consent to limited marketing, but agents must document this.

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