Disclaimer: This content is for informational purposes only and does not constitute legal advice.
Detailed Answer
When two or more people co-own a property in Illinois, each owner holds an undivided interest. Both parties must agree on key sale decisions, including which real estate broker to hire. Illinois law sets out procedures for listing agreements and, if necessary, for resolving disputes.
1. Understand Your Ownership Rights. Co-owners share equal rights to use and manage the property. You cannot bind a co-owner to a listing contract without their consent. If one co-owner signs an exclusive listing agreement alone, that agreement is void as to the non-signing party.
2. Review Written Listing Requirements. The Illinois Real Estate License Act of 2000 (225 ILCS 454/5-10) mandates that all listing agreements be in writing and must clearly state the commission, term, and scope of services. You and your co-owner must both sign the final listing agreement for it to take effect.
3. Gather and Compare Broker Proposals. Create a list of potential brokers. Interview each about marketing plans, fee structures, and track records in your area. Share all proposals with your co-owner. Discuss differences in commission rates, listing term, marketing budget, and technology tools.
4. Negotiate Commission and Services. Many brokers are open to flexible commission splits or shorter listing terms. Agree on a rate that fairly compensates the broker and reflects the market. Document any special service guarantees, such as a home warranty or professional staging.
5. Finalize the Listing Agreement. Once you and your co-owner reach consensus, execute a single listing agreement. Ensure it names both owners, identifies the property, specifies the listing price and commission, and includes a clear end date.
6. Address Deadlocks Early. If you cannot agree on a broker, consider mediation or arbitration to avoid litigation. As a last resort, either party may seek a partition action under 735 ILCS 5/15-1101 et seq.. In a partition suit, a court can force a sale, divide proceeds, or physically divide the land.
7. Maintain Clear Communication. Agree on a regular update schedule with your broker and with each other. Sharing feedback promptly helps keep showings, offers, and negotiations on track.
Helpful Hints
- List ownership percentages and responsibilities in writing before beginning the sale process.
- Compare at least three broker proposals to evaluate market expertise and marketing budgets.
- Include an exit clause in the listing agreement allowing termination if marketing milestones aren’t met.
- Use a neutral third party (mediator) early if disagreement arises.
- Confirm the broker’s license status at the Illinois Department of Financial and Professional Regulation: IDFPR Real Estate Services.
- Document all agreements, e-mail threads, and signed addenda to avoid future disputes.
- If consensus fails, understand that a court-ordered partition sale may involve additional costs and delays.