A real estate broker offers services as agent in matters involving the sale, purchase, rental, and financing of real property. When selling property, brokers and agents arrange for title searches to verify ownership and for meetings between buyers and sellers during which they agree to the details of the transactions and in a final meeting, the new owners take possession of the property. They also may help to arrange favorable financing from a lender for the prospective buyer; often, this makes the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for closing sales; in others, lawyers or lenders do.
Agents and brokers spend a significant amount of time looking for properties to sell. They obtain listings -- agreements by owners to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property. Following the sale of the property, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus agents who sell a property that they themselves have listed can increase their commission.
Chicago Illinois Real Estate Sales Representative Agreement with Broker is a legal contract that establishes the relationship between a sales representative and a real estate broker operating in the city of Chicago, Illinois. This agreement outlines the rights, responsibilities, and obligations of both parties involved in a real estate transaction. Keywords: Chicago, Illinois, real estate, sales representative agreement, broker 1. General Overview: The Chicago Illinois Real Estate Sales Representative Agreement with Broker is a vital agreement that formalizes the relationship between a sales representative and a real estate broker in the city of Chicago, Illinois. It governs the terms under which the sales representative will operate and outlines the scope of their responsibilities. 2. Parties Involved: The agreement identifies the parties involved — the sales representative (also referred to as the agent or salesperson) and the real estate broker. It includes their official names, contact information, and licensing details as required by the Illinois Department of Financial and Professional Regulation. 3. Relationship: This agreement clarifies the relationship between the sales representative and the broker. It explicitly states that the sales representative operates as an independent contractor and not as an employee of the broker, ensuring compliance with the classification of workers under Illinois law. 4. Term: The agreement defines the term or duration for which the sales representative will work under the broker. It includes a starting date and can be either a fixed term or an ongoing agreement. 5. Commission and Compensation: One significant aspect of the agreement pertains to the commission structure and compensation. It outlines the percentage or amount of commission the sales representative will earn for successfully closing real estate deals. Additionally, it may include provisions for potential deductions or splits, such as transaction fees, advertising costs, or broker's withholding share. 6. Duties and Obligations: The agreement specifies the duties and obligations of the sales representative. This typically includes prospecting and obtaining clients, listing properties, marketing efforts, conducting showings, negotiating offers, and facilitating the closing process. It may also outline any specific responsibilities unique to the broker's business model or specialization. 7. Compliance and Licensing: To ensure compliance with relevant laws and regulations, the agreement emphasizes the sales representative's obligation to maintain a valid real estate license in the state of Illinois. It also highlights the responsibility to adhere to the National Association of Realtors' (NEAR) Code of Ethics. 8. Termination: The agreement includes provisions for termination, outlining the conditions under which either party can terminate the relationship. It may specify termination notice periods, grounds for termination (such as breach of contract or unethical behavior), and any potential consequences or remedies resulting from termination. Different Types of Chicago Illinois Real Estate Sales Representative Agreement with Broker: 1. Exclusive Sales Representative Agreement: This type of agreement grants exclusivity to the sales representative, meaning they are the only representative authorized to sell the broker's listings within a specified territory or market segment. 2. Non-Exclusive Sales Representative Agreement: This agreement allows the broker to engage multiple sales representatives to market their listings simultaneously, providing more flexibility and potentially reaching a broader pool of potential buyers. 3. Commercial Real Estate Sales Representative Agreement: This specific agreement applies when the sales representative focuses primarily on commercial real estate transactions such as office buildings, shopping centers, industrial properties, or rental properties. 4. Residential Real Estate Sales Representative Agreement: This agreement is suitable for sales representatives specializing in residential properties, including single-family homes, condominiums, townhouses, or multi-family dwellings. 5. New Construction Sales Representative Agreement: This type of agreement applies when the sales representative is primarily involved in selling newly constructed properties on behalf of the builder or developer, often within specified subdivisions or condominium complexes. Note: It is important to consult with a legal professional to ensure that any specific agreement complies with Illinois real estate laws and meets the unique requirements of the parties involved.Chicago Illinois Real Estate Sales Representative Agreement with Broker is a legal contract that establishes the relationship between a sales representative and a real estate broker operating in the city of Chicago, Illinois. This agreement outlines the rights, responsibilities, and obligations of both parties involved in a real estate transaction. Keywords: Chicago, Illinois, real estate, sales representative agreement, broker 1. General Overview: The Chicago Illinois Real Estate Sales Representative Agreement with Broker is a vital agreement that formalizes the relationship between a sales representative and a real estate broker in the city of Chicago, Illinois. It governs the terms under which the sales representative will operate and outlines the scope of their responsibilities. 2. Parties Involved: The agreement identifies the parties involved — the sales representative (also referred to as the agent or salesperson) and the real estate broker. It includes their official names, contact information, and licensing details as required by the Illinois Department of Financial and Professional Regulation. 3. Relationship: This agreement clarifies the relationship between the sales representative and the broker. It explicitly states that the sales representative operates as an independent contractor and not as an employee of the broker, ensuring compliance with the classification of workers under Illinois law. 4. Term: The agreement defines the term or duration for which the sales representative will work under the broker. It includes a starting date and can be either a fixed term or an ongoing agreement. 5. Commission and Compensation: One significant aspect of the agreement pertains to the commission structure and compensation. It outlines the percentage or amount of commission the sales representative will earn for successfully closing real estate deals. Additionally, it may include provisions for potential deductions or splits, such as transaction fees, advertising costs, or broker's withholding share. 6. Duties and Obligations: The agreement specifies the duties and obligations of the sales representative. This typically includes prospecting and obtaining clients, listing properties, marketing efforts, conducting showings, negotiating offers, and facilitating the closing process. It may also outline any specific responsibilities unique to the broker's business model or specialization. 7. Compliance and Licensing: To ensure compliance with relevant laws and regulations, the agreement emphasizes the sales representative's obligation to maintain a valid real estate license in the state of Illinois. It also highlights the responsibility to adhere to the National Association of Realtors' (NEAR) Code of Ethics. 8. Termination: The agreement includes provisions for termination, outlining the conditions under which either party can terminate the relationship. It may specify termination notice periods, grounds for termination (such as breach of contract or unethical behavior), and any potential consequences or remedies resulting from termination. Different Types of Chicago Illinois Real Estate Sales Representative Agreement with Broker: 1. Exclusive Sales Representative Agreement: This type of agreement grants exclusivity to the sales representative, meaning they are the only representative authorized to sell the broker's listings within a specified territory or market segment. 2. Non-Exclusive Sales Representative Agreement: This agreement allows the broker to engage multiple sales representatives to market their listings simultaneously, providing more flexibility and potentially reaching a broader pool of potential buyers. 3. Commercial Real Estate Sales Representative Agreement: This specific agreement applies when the sales representative focuses primarily on commercial real estate transactions such as office buildings, shopping centers, industrial properties, or rental properties. 4. Residential Real Estate Sales Representative Agreement: This agreement is suitable for sales representatives specializing in residential properties, including single-family homes, condominiums, townhouses, or multi-family dwellings. 5. New Construction Sales Representative Agreement: This type of agreement applies when the sales representative is primarily involved in selling newly constructed properties on behalf of the builder or developer, often within specified subdivisions or condominium complexes. Note: It is important to consult with a legal professional to ensure that any specific agreement complies with Illinois real estate laws and meets the unique requirements of the parties involved.
