During the 2024 spring legislative session, Senate Republicans stood up for consumers, supporting legislation that prohibits long-term and inequitable real estate listing agreements.

Senate Bill 3420, which passed unanimously in the Senate, bans companies from entering into deceptive and costly long-term real estate listing agreements with homeowners. This legislation was prompted by public outcry following accusations against a Florida-based company operating in Illinois for engaging in deceitful business practices.

The company targeted homeowners with equity in their homes but who were in financial distress, offering cash up front in exchange for exclusive listing rights lasting up to 40 years, which extended to heirs inheriting the property.

Under the new proposal, real estate listing agreements cannot exceed one year, and violators may face prosecution under the Illinois Consumer Fraud and Deceptive Business Practices Act.

The legislation unanimously cleared both chambers of the General Assembly and now awaits the Governor’s approval.