- Official section
- National VI.A.2 and VI.A.3
- Broker weight
- Part of 13% of the national portion
- Expected scored items
- The current PSI broker outline assigns about 13 of 100 scored national items to Agency
National Agency agreement guide
Listing, buyer, and tenant representation agreements
Every representation-agreement question has two layers. First identify who hired the brokerage and for what objective. Then read the exact bundle of authority, duties, exclusivity, compensation, duration, and exit terms. A label gives you a starting point, but the written provisions decide the result.
Last updated: August 1, 2026
What does this exam area cover?
Short answer: A listing agreement hires a brokerage to serve an owner in a sale or lease. A buyer or tenant representation agreement hires a brokerage to serve the acquiring or leasing side. Exclusive right, exclusive agency, and open arrangements differ mainly in exclusivity and when compensation is earned. Every agreement should be read for parties, property or search scope, authority, duties, duration, compensation, termination, and protection language. Illinois requires all brokerage agreements to be written and adds current timing, content, minimum-service, duration, fair-housing, and compensation rules.
This guide teaches the agreement categories and comparison skills in the national outline effective June 24, 2026. State law controls enforceability and required terms. The Illinois overlay uses the Real Estate License Act and Rule 1450.770 as amended effective July 13, 2026 and current through August 1, 2026. It is exam preparation, not contract drafting or legal advice.
What is on the official outline?
- Topic
- Agreement anatomy
- What to know
- Parties, sponsoring broker, consumer, designated agent, objective, property, geographic scope, price range, authority, services, client duties, compensation, duration, expiration, termination, protection period, signatures, and amendments
- Best exam move
- Read the provision tied to the dispute instead of deciding from the agreement's title alone.
- Topic
- Seller listing agreements
- What to know
- Seller, owner, listing brokerage, designated agent, sale, identified property, list price, marketing authority, showing, offer presentation, negotiation, disclosures, access, compensation, and term
- Best exam move
- Separate permission to market and negotiate from power to sign, accept, or convey for the owner.
- Topic
- Landlord listing agreements
- What to know
- Landlord, owner, rental listing, lease, asking rent, tenant procurement, showing, screening boundary, offer or application presentation, lease negotiation, security deposit handling, compensation, and property management
- Best exam move
- Determine whether the agreement covers only leasing, continuing management, or both before assigning duties.
- Topic
- Exclusive-right listing
- What to know
- One brokerage, exclusive right, owner-produced buyer, cooperating broker, procuring cause, sale during term, specified event, commission, protection clause, exceptions, and written modification
- Best exam move
- Assume the owner-found sale still triggers agreed compensation unless the agreement or governing law supplies an exception.
- Topic
- Exclusive-agency listing
- What to know
- One listing brokerage, owner reservation, owner-found buyer, broker-produced buyer, cooperating broker, compensation event, exclusivity, marketing, and term
- Best exam move
- Look for the owner's retained right to sell without the listing commission; that is the classic contrast with exclusive right.
- Topic
- Open listing
- What to know
- Nonexclusive, multiple brokers, unilateral offer concept, performance, successful broker, procuring cause, owner sale, revocation, notice, property, price, commission, and competition
- Best exam move
- Identify which broker performed the compensation condition rather than paying every broker who showed the property.
- Topic
- Net listing risk
- What to know
- Owner's desired net, broker excess, sale price, compensation uncertainty, conflict of interest, fiduciary duty, disclosure, state restriction, state prohibition, informed owner, market value, and unfair profit
- Best exam move
- Recognize the conflict and check local legality; never treat net listings as universally permitted or universally prohibited.
- Topic
- Buyer representation agreements
- What to know
- Buyer client, acquisition, exclusive representation, nonexclusive representation, property type, location, price range, search, showing, analysis, offer, negotiation, inspection, financing, compensation, term, and termination
- Best exam move
- Check whether the property and purchase fall within scope before deciding whether duties or compensation were triggered.
- Topic
- Tenant representation agreements
- What to know
- Tenant client, lease objective, residential, commercial, location, rent range, lease term, space requirement, search, tour, application, letter of intent, negotiation, compensation, exclusivity, and expiration
- Best exam move
- Use lease-focused scope and duties, not sale assumptions borrowed from a buyer agreement.
- Topic
- Exclusive and nonexclusive representation
- What to know
- Sole representative, multiple brokerages, direct acquisition, property exclusion, prior relationship, compensation overlap, notice, referral, cooperation, client duty, and conflict prevention
- Best exam move
- Read exclusivity, covered property, and exceptions together before deciding whether the consumer may work elsewhere.
- Topic
- Broker and client duties
- What to know
- Reasonable diligence, lawful instruction, communication, offer presentation, confidentiality, accounting, disclosure, access, truthful information, availability, financing proof, scheduling, notice of listed property, and cooperation
- Best exam move
- Assign duties to the correct party and distinguish a contractual promise from a statutory agency duty.
- Topic
- Compensation provisions
- What to know
- Negotiated fee, percentage, flat fee, hourly fee, retainer, landlord payment, listing-side payment, buyer obligation, tenant obligation, credit, timing, condition, cooperating broker, shortfall, disclosure, and written amendment
- Best exam move
- Identify who owes the fee and the event that earns it without using payment source to redefine agency.
- Topic
- Duration, expiration, and protection
- What to know
- Definite term, automatic expiration, extension, renewal, early termination, breach, release, carryover, broker protection, safety clause, registered prospect, introduced property, purchase after expiration, and duplicate obligation
- Best exam move
- Separate the active service period from a limited post-expiration compensation period.
- Topic
- Illinois writing and timing
- What to know
- All agreements written, electronic writing, seller, owner, before marketing, before listing, buyer, tenant, before licensed assistance, as soon as reasonably practical, sponsoring broker, designated agents, signatures, and July 13 2026 rule
- Best exam move
- On an Illinois question, reject an indefinite oral relationship and apply the current timing for that consumer side.
- Topic
- Illinois required content
- What to know
- List price, property identification, compensation basis or amount, payment time, cooperating broker amount, sponsoring broker, designated agents, consumer names, duties, duration, automatic expiration, annual termination right, 30-day written notice, and fair-housing statement
- Best exam move
- Use the agreement-specific Illinois checklist, because a listing needs property and price terms that a buyer or tenant form does not.
- Topic
- Illinois exclusive minimum services
- What to know
- Accept offers, deliver offers, present offers, counteroffers, assistance developing, communicating, negotiating, presenting, notices, signed agreement, contingencies satisfied, contingencies waived, client questions, omission, waiver, and nonexclusive treatment
- Best exam move
- If an Illinois agreement omits or waives the statutory minimum services, do not classify it as exclusive.
Which distinctions produce the most mistakes?
- Terms
- Listing agreement vs. purchase contract
- Difference
- The listing agreement hires the brokerage to serve the owner. The purchase contract states the buyer and seller's bargain for transferring the property.
- Question cue
- Brokerage service relationship versus sale transaction.
- Terms
- Listing agreement vs. property management agreement
- Difference
- A listing can authorize finding a buyer or tenant. A management agreement covers continuing operation of the property and may also authorize leasing services.
- Question cue
- One transaction objective versus recurring management authority.
- Terms
- Exclusive right to sell vs. exclusive agency
- Difference
- Exclusive right generally pays the listing brokerage even for an owner-found buyer. Exclusive agency commonly preserves an owner-sale exception.
- Question cue
- Owner finds buyer and commission remains versus owner exception.
- Terms
- Exclusive agency vs. open listing
- Difference
- Exclusive agency appoints one brokerage subject to its owner exception. An open listing may be offered to multiple brokers, with payment tied to successful performance.
- Question cue
- One chosen brokerage versus several competing brokerages.
- Terms
- Exclusive buyer agreement vs. nonexclusive buyer agreement
- Difference
- An exclusive agreement grants one brokerage the right to represent the buyer within its scope. A nonexclusive agreement permits the defined use of other brokerages.
- Question cue
- One representative in scope versus permitted multiple representation.
- Terms
- Buyer agreement vs. tenant agreement
- Difference
- A buyer agreement targets acquisition of an ownership interest. A tenant agreement targets possession and use under a lease.
- Question cue
- Purchase terms and title investigation versus rent, lease term, and occupancy provisions.
- Terms
- Authority to market vs. authority to accept
- Difference
- Marketing authority permits promotion within the agreement. Authority to accept an offer would permit binding the principal and is not inferred from an ordinary listing.
- Question cue
- Solicit offers versus form the owner's contract.
- Terms
- Agreement term vs. protection period
- Difference
- The term is the active service window. The protection period is a limited tail that may preserve compensation for specified post-expiration activity.
- Question cue
- When representation operates versus when a fee may still be protected.
- Terms
- Compensation obligation vs. payment source
- Difference
- The obligation identifies who contractually owes the fee. The source identifies where funds used to satisfy it come from.
- Question cue
- Who promised to pay versus who supplies transaction funds.
- Terms
- Designated agent vs. sponsoring broker
- Difference
- In Illinois, the sponsoring broker is the consumer's agreement party. The named affiliated licensee or licensees are designated to act as the client's legal agents.
- Question cue
- Firm on the service contract versus individual assigned to the client.
How should you read a representation agreement question?
- Name the consumer and decide whether the objective is sale, lease, purchase, or tenant occupancy.
- Identify the sponsoring brokerage, designated licensee, and every party who signed.
- Classify the agreement as exclusive right, exclusive agency, open, exclusive representation, or nonexclusive representation.
- Mark the property, geography, price, use, and time period within scope.
- Separate authority and promised services from acts the consumer retained.
- Find the compensation formula, contractual obligor, payment source, and earning event.
- Read expiration, termination, extension, and protection language as separate provisions.
- Apply the jurisdiction's writing, content, minimum-service, and amendment rules before choosing the answer.
- Agreement type
- Exclusive right to sell
- Main client
- Seller or owner
- Classic exam clue
- Commission generally survives an owner-found buyer during term
- Agreement type
- Exclusive-agency listing
- Main client
- Seller or owner
- Classic exam clue
- One broker, but owner commonly retains a no-commission sale right
- Agreement type
- Open listing
- Main client
- Seller or owner
- Classic exam clue
- Multiple brokers may compete; successful performer earns fee
- Agreement type
- Landlord listing
- Main client
- Landlord or owner
- Classic exam clue
- Broker seeks tenant and negotiates lease within authority
- Agreement type
- Exclusive buyer representation
- Main client
- Buyer
- Classic exam clue
- One brokerage covers defined acquisition scope
- Agreement type
- Nonexclusive buyer representation
- Main client
- Buyer
- Classic exam clue
- Other brokerages may be used within the agreed limits
- Agreement type
- Tenant representation
- Main client
- Tenant
- Classic exam clue
- Search and negotiation focus on occupancy under a lease
- Agreement type
- Illinois exclusive agreement
- Main client
- Seller, landlord, buyer, or tenant
- Classic exam clue
- Writing plus statutory minimum services
How do the rules work in scenarios?
The owner finds the buyer under an exclusive-right listing
Scenario: A seller signs an exclusive-right-to-sell listing. During its term, the seller's coworker buys the property after dealing directly with the seller. No written owner-sale exception appears.
- The agreement grants the brokerage the exclusive right to sell during its term.
- The classic agreement triggers compensation regardless of who produces the buyer.
- The owner-found-buyer exception belongs to an exclusive-agency comparison, not this fact pattern.
Answer: The listing brokerage is generally entitled to the agreed compensation, subject to the actual contract and law.
The owner exception changes the result
Scenario: A seller signs an exclusive-agency listing that expressly preserves the seller's right to sell independently without commission. The seller alone finds and contracts with a buyer.
- One brokerage still held the exclusive agency appointment.
- The agreement expressly retained the owner's personal-sale exception.
- No broker is described as producing the buyer.
Answer: The seller's independent sale fits the stated exception, so the classic listing commission is not earned.
The buyer agreement does not cover every purchase
Scenario: A buyer signs an exclusive agreement limited to residential property in Cook County. The buyer later purchases an industrial parcel in Will County through another brokerage.
- Exclusivity operates within the agreement's property and geographic scope.
- The later purchase differs in both use and location.
- A broad label cannot replace the written scope.
Answer: The purchase appears outside the stated exclusivity. Read any broader or protection language before reaching a final contractual conclusion.
A landlord listing does not automatically include management
Scenario: A landlord hires a brokerage only to advertise a unit, show it, and negotiate a one-year lease. After occupancy, the tenant asks the brokerage to approve repairs and apply the security deposit.
- The described agreement covers tenant placement and lease negotiation.
- Continuing repair decisions and deposit administration are property-management functions.
- The brokerage cannot enlarge its authority simply because it placed the tenant.
Answer: Check for separate management authority and refer the request to the authorized landlord or manager.
An Illinois buyer relationship stays oral too long
Scenario: An Illinois broker repeatedly searches properties, advises a buyer, and prepares an offer over several weeks but plans to discuss a written agreement only after acceptance.
- Current Illinois law requires brokerage agreements in writing.
- The buyer timing rule says before licensed assistance or as soon as reasonably practical after it.
- Several weeks of substantive service is not the prompt documentation the rule contemplates.
Answer: The broker should have completed the written buyer brokerage agreement much earlier.
A purchase offer cannot quietly rewrite the brokerage fee
Scenario: A buyer's Illinois brokerage agreement states a flat fee. While preparing an offer, the licensee inserts a different fee in the sales contract without a signed amendment between the buyer and sponsoring broker.
- The brokerage agreement governs the agreed compensation terms.
- Current Rule 1450.770 requires compensation changes to be written and signed by the agreement parties.
- The rule bars using a real estate contract form to change previously agreed commission-payment terms.
Answer: The purchase contract insertion is not the proper amendment. Use a signed written brokerage-agreement change.
What are the common exam traps?
- Trap
- Every exclusive listing pays the broker when the owner finds the buyer.
- Correction
- That is the classic exclusive-right result. An exclusive-agency listing commonly preserves an owner-sale exception.
- Trap
- An open listing means every broker who showed the home gets paid.
- Correction
- Payment is generally tied to successful performance or procuring cause under the agreement, not mere participation.
- Trap
- A listing agreement transfers an ownership interest to the broker.
- Correction
- It is a brokerage service and agency contract. It does not convey title to the property.
- Trap
- Exclusive authority to market includes automatic authority to accept an offer.
- Correction
- A broker normally presents offers to the owner. Binding acceptance requires authority that should not be inferred from ordinary marketing provisions.
- Trap
- A buyer agreement always covers every property the buyer acquires.
- Correction
- Read property type, geography, price, dates, exclusions, and any prior-property provisions before deciding scope.
- Trap
- A tenant representative is just the landlord's leasing agent.
- Correction
- A tenant representative advocates for the tenant client. A landlord's leasing agent represents the owner side.
- Trap
- Who supplies compensation determines who is represented.
- Correction
- Representation and payment are separate. Follow the agreement and agency disclosure to identify the client.
- Trap
- A protection clause extends all agency duties after expiration.
- Correction
- A protection clause usually addresses limited post-term compensation. It is not an automatic renewal of the whole representation relationship.
- Trap
- Net listings are lawful everywhere if the owner agrees.
- Correction
- Net listings create sharp conflicts and are restricted or prohibited in some jurisdictions. Apply local law and fiduciary duties.
- Trap
- Only exclusive Illinois brokerage agreements need writing.
- Correction
- The current Illinois definition requires all brokerage agreements to be written, including nonexclusive agreements.
- Trap
- An Illinois seller can sign after the brokerage begins public marketing.
- Correction
- Rule 1450.770 requires the written seller or owner agreement before marketing or listing.
- Trap
- An Illinois exclusive agreement may waive offer presentation to reduce the fee.
- Correction
- Exclusive agreements must contain the statutory minimum services. Omission or waiver causes nonexclusive treatment under the current rule.
Can you answer these original practice questions?
These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.
1. A property sells during an exclusive-right-to-sell listing after the owner personally finds the buyer. No exception applies. Which result is most likely?
- A. The agreed listing compensation is earned
- B. No compensation can ever be earned on an owner-found sale
- C. Every cooperating broker receives a full fee
- D. The listing automatically becomes open
Show answer and explanation
Answer: A
The classic exclusive-right agreement protects compensation regardless of who produces the buyer during the term, subject to the written agreement and law.
2. Which provision most clearly distinguishes an exclusive-agency listing from an exclusive-right-to-sell listing?
- A. A property address
- B. An owner-sale exception
- C. A definite term
- D. The broker's contact information
Show answer and explanation
Answer: B
The classic exclusive-agency form reserves the owner's right to sell personally without the listing commission, while exclusive right generally does not.
3. A tenant signs an exclusive agreement limited to office space in one municipality. Which later transaction is least likely to fall within that stated scope?
- A. Leasing office space in that municipality
- B. Leasing a suite there at a lower rent
- C. Buying a farm in another county
- D. Touring another office in that municipality
Show answer and explanation
Answer: C
The agreement is limited by transaction type, property type, and geography. A farm purchase elsewhere falls outside all three stated boundaries.
4. When must an Illinois seller or owner enter the written brokerage agreement under the current rule?
- A. Before the licensee markets or lists the property
- B. Only after the first offer
- C. At closing
- D. Only if the agreement is exclusive
Show answer and explanation
Answer: A
Current Rule 1450.770 requires the written seller or owner agreement before marketing or listing, and Illinois requires all brokerage agreements to be written.
5. An Illinois exclusive brokerage agreement says the firm will not present counteroffers or answer the client's contingency questions. What is the best classification?
- A. Exclusive because the heading controls
- B. Nonexclusive because required minimum services were omitted or waived
- C. Open only after closing
- D. A power of attorney
Show answer and explanation
Answer: B
Illinois exclusive agreements must specify the Section 15-75 minimum services. Current rules treat an agreement that omits or waives them as nonexclusive.
How should you study this area?
- Session
- Session 1
- Focus
- Learn agreement anatomy
- Proof you are ready
- Label parties, objective, scope, authority, duties, compensation, term, and termination in three sample forms.
- Session
- Session 2
- Focus
- Master listing types
- Proof you are ready
- Solve 12 owner-found-buyer and multi-broker scenarios using exclusive right, exclusive agency, and open listing rules.
- Session
- Session 3
- Focus
- Compare buyer and tenant agreements
- Proof you are ready
- Explain how purchase and lease objectives change scope, duties, search terms, and compensation triggers.
- Session
- Session 4
- Focus
- Separate authority from exclusivity
- Proof you are ready
- Distinguish marketing, negotiation, acceptance, management, and signing authority in eight fact patterns.
- Session
- Session 5
- Focus
- Apply the current Illinois overlay
- Proof you are ready
- Recite writing, seller timing, buyer or tenant timing, required terms, and exclusive minimum services without notes.
- Session
- Session 6
- Focus
- Complete a mixed agreement set
- Proof you are ready
- Score at least 90% and support each answer by quoting the decisive agreement type or provision.
Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.
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Questions students ask about Listing, Buyer, and Tenant Representation Agreements
What is a listing agreement?
A listing agreement is the brokerage service contract between an owner and a brokerage. It authorizes stated services for the sale or lease of identified property and sets duties, authority, compensation, duration, and other terms. It is not the later sale contract between seller and buyer.
What is an exclusive-right-to-sell listing?
It generally entitles the listing brokerage to the agreed compensation if the property sells during the listing term, whether the buyer is found by the listing broker, another broker, or the owner. The exact agreement and governing law control exceptions.
How is an exclusive-agency listing different?
An exclusive-agency listing appoints one listing brokerage but commonly preserves an owner-sale exception. The broker may earn compensation when the broker or another broker produces the buyer, while a sale made solely by the owner may avoid the listing commission under the agreement's terms.
What is an open listing?
An open listing is a nonexclusive arrangement that may be given to multiple brokers. Compensation ordinarily goes to the broker who produces the successful result under the agreement. The owner may also retain the ability to sell independently without owing a commission.
What is a buyer representation agreement?
It is the brokerage service agreement under which a brokerage represents a buyer in locating, evaluating, negotiating for, or acquiring property. It should state the scope, exclusivity, client and broker duties, duration, compensation, termination, and any protection period.
Is a tenant representation agreement different from a buyer agreement?
The structure is similar, but the objective is a lease rather than a purchase. A tenant agreement should define the rental or lease search, property and geographic scope, lease-related duties, compensation, term, exclusivity, and any limits on services.
Do all Illinois brokerage agreements have to be written?
Yes. The current Illinois statutory definition requires all brokerage agreements to be in writing. Rule 1450.770 supplies the current timing and required terms for seller or owner, buyer, tenant, and property-management agreements.
When does Illinois require buyer or tenant agreement writing?
The current rule requires a written buyer or tenant brokerage agreement before licensed activity intended to assist with a purchase or lease, or as soon as reasonably practical after that activity. Seller or owner agreements must be written before marketing or listing the property.
Can a brokerage agreement authorize the broker to accept an offer for the owner?
Only if valid law and the actual authority granted support that act. An ordinary listing authorizes marketing and negotiation services but usually does not give the broker power to bind the owner to a sale. Read authority separately from exclusivity and compensation.
Are these official PSI broker exam questions?
No. They are original questions aligned to the national Agency outline effective June 24, 2026. The Illinois comparison reflects the current Act and Rule 1450.770, including its July 13, 2026 amendment, through August 1, 2026.
Primary sources
- PSI Illinois Candidate Information Booklet dated June 24, 2026
- 225 ILCS 454/1-10, current Illinois brokerage-agreement definitions
- 225 ILCS 454 Article 15, current Illinois brokerage relationships
- 225 ILCS 454/15-75, exclusive brokerage agreement minimum services
- 68 Ill. Adm. Code 1450.770, brokerage agreements amended July 13, 2026
- 68 Ill. Adm. Code 1450.755, transaction recordkeeping
- IDFPR 4-hour Brokerage Core Curriculum
The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.
Editorial status
Checked against primary sources
The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.