BrokerageIndustry News

State regulators crack down on discount realty services

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A new public act in Illinois requires all brokers, including limited-service brokers, to provide a minimum range of services when they enter into exclusive agreements with their clients. Originally introduced in the state Senate as a continuing education measure for real estate brokers and agents, the legislation was later amended in a state Assembly committee to include the provisions relating to these exclusive agreements. Supporters of the law say the new requirements are intended to aid consumers and agents alike, while some industry professionals question whether such laws could impact consumer choices in real estate. The Illinois legislation may be part of a broader movement to specify minimum brokerage service requirements. Illinois Public Act 093-0957, enacted in August, defines an "exclusive brokerage agreement" as "a written brokerage agreement that provides that the sponsoring broker has the sole right, through one or more sponsored licensees, to act as the exclusive design...