New clause in 2023 Chicago lease

[Julie George]

Hi all - I've been using the standard Chicago Realtors Association lease for years and noticed they added a new section in 2023 to the bottom of the first page that now says you need to be a member of CAR or that the transaction must be facilitated by a CAR member. I'm neither and I'm sure most private landlords are neither as well. Is anyone familiar with this new clause ? Will the lease be "invalid" if we continue to use it ? Thank you!

For reference, here is the attachment I found that someone shared on a FB group. 

https://www.facebook.com/group...

[Chris Davidson]

@Julie George if that is all that changed and you were happy with your lease last year just stick to that one, or remove the clause.

Having a lease you understand and can enforce is important thought. Might be worth heading to the attorney and taking your business to the next level.

[Nathan Gesner]

Quote from @Julie George:

I've been sharing this with people. Any contract developed by a REALTOR group is copyrighted and only for use by REALTOR members. Even if a REALTOR gave it to you, it is not legal to use. If you ever end up in court, it will probably be declared invalid and you could lose your case, even if you are in the right.

Stop using contracts that are not legal to use. Get one from an attorney or buy the Lease Agreement Package sold by Biggerpockets under the TOOLS menu.

This is straight from the Chicago Association of REALTORS website:

A reminder that the Chicago Residential Lease, and all of CAR’s forms and contracts, are an exclusive member benefit for use only by Chicago Association of REALTORS® members or those who are party to a transaction facilitated by a Chicago Association of REALTORS® member. Distributing or posting any of CAR’s forms and contracts is a copyright infringement and a violation of the terms of use of our forms.

[John Warren]

@Julie George I would chat with an attorney about this, but in general, the one I use gives out the CAR lease as well.... I don't see how it could be invalid in court, but I am not an attorney. I would be careful using a Bigger Pockets lease in Chicago unless it has been looked at by an attorney in Chicago as well. I am sure it is fine for other areas that are more business friendly, but that is not the case here. 

[Rob K.]

In general, Realtor contract forms are first and foremost written for the benefit and protection of realtors. Some of them may be fine, but one should realize the agenda of the group providing the form.

[Jonathan Klemm]

Hey @Julie George - I am on the property management board at the Chicago association of realtors.  I am going to bring up this topic at our next meeting.

Personally, I don't understand the idea behind trying to keep it exclusive and don't think it should be.....stay tuned and I'll reply back.

[Crystal Smith]

Quote from @Julie George:

Hi all - I've been using the standard Chicago Realtors Association lease for years and noticed they added a new section in 2023 to the bottom of the first page that now says you need to be a member of CAR or that the transaction must be facilitated by a CAR member. I'm neither and I'm sure most private landlords are neither as well. Is anyone familiar with this new clause ? Will the lease be "invalid" if we continue to use it ? Thank you!

For reference, here is the attachment I found that someone shared on a FB group. 

https://www.facebook.com/group...

 Julie:  I'm going to respectfully disagree with the advice of purchasing the Bigger Pockets lease agreement. Cook County has very specific Realtor Tenant Landlord Ordinances and the Chicago Association of Realtor's agreement is updated every year to be compliant with any changes in the Ordinances.    I have 2 recommendations if you're worried about the copyright- Pay a realtor a few bucks to be the middle person.  I'll send you a DM with my second recommendation.

[Jonathan Klemm]

I'd 2nd @Crystal Smith......BP lease won't be as specific as needed for the Chicago Landlord Tenant Ordinance .......Find a local attorney if you are really concerned.

[Kayla D.]

Quote from @Crystal Smith:

Quote from @Julie George:

Hi all - I've been using the standard Chicago Realtors Association lease for years and noticed they added a new section in 2023 to the bottom of the first page that now says you need to be a member of CAR or that the transaction must be facilitated by a CAR member. I'm neither and I'm sure most private landlords are neither as well. Is anyone familiar with this new clause ? Will the lease be "invalid" if we continue to use it ? Thank you!

For reference, here is the attachment I found that someone shared on a FB group. 

https://www.facebook.com/group...

 Julie:  I'm going to respectfully disagree with the advice of purchasing the Bigger Pockets lease agreement. Cook County has very specific Realtor Tenant Landlord Ordinances and the Chicago Association of Realtor's agreement is updated every year to be compliant with any changes in the Ordinances.    I have 2 recommendations if you're worried about the copyright- Pay a realtor a few bucks to be the middle person.  I'll send you a DM with my second recommendation.

Hi @Crystal Smith - Can you elaborate on getting a realtor to be the middle person? Would they need to be include on my lease somehow for it to be valid? I’m also looking for the most recent and valid Chicago lease as I’m afraid my current one, obtained through TurboTenant, doesn’t fit the bill. 

[Crystal Smith]

Quote from @Kayla D.:

Quote from @Crystal Smith:

Quote from @Julie George:

Hi all - I've been using the standard Chicago Realtors Association lease for years and noticed they added a new section in 2023 to the bottom of the first page that now says you need to be a member of CAR or that the transaction must be facilitated by a CAR member. I'm neither and I'm sure most private landlords are neither as well. Is anyone familiar with this new clause ? Will the lease be "invalid" if we continue to use it ? Thank you!

For reference, here is the attachment I found that someone shared on a FB group. 

https://www.facebook.com/group...

 Julie:  I'm going to respectfully disagree with the advice of purchasing the Bigger Pockets lease agreement. Cook County has very specific Realtor Tenant Landlord Ordinances and the Chicago Association of Realtor's agreement is updated every year to be compliant with any changes in the Ordinances.    I have 2 recommendations if you're worried about the copyright- Pay a realtor a few bucks to be the middle person.  I'll send you a DM with my second recommendation.

Hi @Crystal Smith - Can you elaborate on getting a realtor to be the middle person? Would they need to be include on my lease somehow for it to be valid? I’m also looking for the most recent and valid Chicago lease as I’m afraid my current one, obtained through TurboTenant, doesn’t fit the bill. 

The realtor can be the middle person by facilitating the transaction. The realtor would provide the CAR lease to the new tenant to review and sign after which you would review and sign.  Then pay the realtor a few bucks for facilitating. I'd only do this if one is worried about copyright. 

Regarding the lease being valid- Whether the document is copyrighted or not the lease will be valid if a realtor is not involved.  If 2 parties have signed an agreement that is compliant with the law then the agreement will be valid.

[Kayla D.]

Quote from @Crystal Smith:

Quote from @Kayla D.:

Quote from @Crystal Smith:

Quote from @Julie George:

Hi all - I've been using the standard Chicago Realtors Association lease for years and noticed they added a new section in 2023 to the bottom of the first page that now says you need to be a member of CAR or that the transaction must be facilitated by a CAR member. I'm neither and I'm sure most private landlords are neither as well. Is anyone familiar with this new clause ? Will the lease be "invalid" if we continue to use it ? Thank you!

For reference, here is the attachment I found that someone shared on a FB group. 

https://www.facebook.com/group...

 Julie:  I'm going to respectfully disagree with the advice of purchasing the Bigger Pockets lease agreement. Cook County has very specific Realtor Tenant Landlord Ordinances and the Chicago Association of Realtor's agreement is updated every year to be compliant with any changes in the Ordinances.    I have 2 recommendations if you're worried about the copyright- Pay a realtor a few bucks to be the middle person.  I'll send you a DM with my second recommendation.

Hi @Crystal Smith - Can you elaborate on getting a realtor to be the middle person? Would they need to be include on my lease somehow for it to be valid? I’m also looking for the most recent and valid Chicago lease as I’m afraid my current one, obtained through TurboTenant, doesn’t fit the bill. 

The realtor can be the middle person by facilitating the transaction. The realtor would provide the CAR lease to the new tenant to review and sign after which you would review and sign.  Then pay the realtor a few bucks for facilitating. I'd only do this if one is worried about copyright. 

Regarding the lease being valid- Whether the document is copyrighted or not the lease will be valid if a realtor is not involved.  If 2 parties have signed an agreement that is compliant with the law then the agreement will be valid.

Thanks for clarifying! In an another forum there were concerns that the lease may be invalid if even used by someone other than a licensed realtor. 

[Bob Floss II]

@Julie George If a member of the public uses the CAR lease, the lease is legally valid. The provider of the lease cannot declare a legal agreement between two parties void because they used their document.

@John Warren @Jonathan Klemm @Crystal Smith The language is aimed at Realtors, not the general public. I'm on the forms committee for NSBAR and the neighboring boards were notified by CAR that any agent that is not a member of CAR is strictly prohibited from using CAR forms. The use of the CAR lease seems to be the focal point. The other boards are currently working on their own lease. If a Realtor is a member of CAR, they can utilize and provide the lease at their discretion.

This came without warning, so there is still a lot of confusion on the rules. What if a Mainstreet agent wants to write a lease for a Chicago property and the listing agent who belongs to CAR provides it to them? What if a NSBAR agent is working with a client that already has the CAR lease in their possession? What if an agent belongs to Three Rivers but the managing broker of their office belongs to CAR and gives them the lease? What if an agent belongs to CAR and provides the lease to all the agents in their office that belong to Fox Valley. If a Heartland agent lists a rental in Chicago, are they prohibited from accepting and negotiating a CAR lease?

If you are a member of the public, I highly doubt CAR will pursue you. This appears to be more of an issue between CAR and non-CAR agents using their forms.

[Crystal Smith]

Quote from @Bob Floss II:

@Julie George If a member of the public uses the CAR lease, the lease is legally valid. The provider of the lease cannot declare a legal agreement between two parties void because they used their document.

@John Warren @Jonathan Klemm @Crystal Smith The language is aimed at Realtors, not the general public. I'm on the forms committee for NSBAR and the neighboring boards were notified by CAR that any agent that is not a member of CAR is strictly prohibited from using CAR forms. The use of the CAR lease seems to be the focal point. The other boards are currently working on their own lease. If a Realtor is a member of CAR, they can utilize and provide the lease at their discretion.

This came without warning, so there is still a lot of confusion on the rules. What if a Mainstreet agent wants to write a lease for a Chicago property and the listing agent who belongs to CAR provides it to them? What if a NSBAR agent is working with a client that already has the CAR lease in their possession? What if an agent belongs to Three Rivers but the managing broker of their office belongs to CAR and gives them the lease? What if an agent belongs to CAR and provides the lease to all the agents in their office that belong to Fox Valley. If a Heartland agent lists a rental in Chicago, are they prohibited from accepting and negotiating a CAR lease?

If you are a member of the public, I highly doubt CAR will pursue you. This appears to be more of an issue between CAR and non-CAR agents using their forms.

@Bob Floss II Thanks for chiming in. My 2 cents as an investor & realtor I will use whatever lease is compliant with the local Residential Tenant Landlord Ordinance (RTLO) without consideration as to who wrote it.  I'm going to vent a little as a member of CAR- They should stop wasting my dues on an issue like this. 

[Jonathan Klemm]

Understood @Bob Floss II.  I am on the professional development board at the Chicago Association of Realtors and plan on confirming as well.  Thank you a bunch for the info.

[Danny Polanski]

Quote from @Kayla D.:

Quote from @Crystal Smith:

Quote from @Julie George:

Hi all - I've been using the standard Chicago Realtors Association lease for years and noticed they added a new section in 2023 to the bottom of the first page that now says you need to be a member of CAR or that the transaction must be facilitated by a CAR member. I'm neither and I'm sure most private landlords are neither as well. Is anyone familiar with this new clause ? Will the lease be "invalid" if we continue to use it ? Thank you!

For reference, here is the attachment I found that someone shared on a FB group. 

https://www.facebook.com/group...

 Julie:  I'm going to respectfully disagree with the advice of purchasing the Bigger Pockets lease agreement. Cook County has very specific Realtor Tenant Landlord Ordinances and the Chicago Association of Realtor's agreement is updated every year to be compliant with any changes in the Ordinances.    I have 2 recommendations if you're worried about the copyright- Pay a realtor a few bucks to be the middle person.  I'll send you a DM with my second recommendation.

Hi @Crystal Smith - Can you elaborate on getting a realtor to be the middle person? Would they need to be include on my lease somehow for it to be valid? I’m also looking for the most recent and valid Chicago lease as I’m afraid my current one, obtained through TurboTenant, doesn’t fit the bill. 

Kayla,

If your building is owner occupied (which I believe it is based on your other posts) the Chicago residential tenant/landlord rules do not apply to you. Just wanted to point this out. 

[Jack Lococo]

Does anyone have a resolution or any more feedback on this issue?

[Suzanne Carson]

Quote from @Crystal Smith:

Quote from @Kayla D.:

Quote from @Crystal Smith:

Quote from @Julie George:

Hi all - I've been using the standard Chicago Realtors Association lease for years and noticed they added a new section in 2023 to the bottom of the first page that now says you need to be a member of CAR or that the transaction must be facilitated by a CAR member. I'm neither and I'm sure most private landlords are neither as well. Is anyone familiar with this new clause ? Will the lease be "invalid" if we continue to use it ? Thank you!

For reference, here is the attachment I found that someone shared on a FB group. 

https://www.facebook.com/group...

 Julie:  I'm going to respectfully disagree with the advice of purchasing the Bigger Pockets lease agreement. Cook County has very specific Realtor Tenant Landlord Ordinances and the Chicago Association of Realtor's agreement is updated every year to be compliant with any changes in the Ordinances.    I have 2 recommendations if you're worried about the copyright- Pay a realtor a few bucks to be the middle person.  I'll send you a DM with my second recommendation.

Hi @Crystal Smith - Can you elaborate on getting a realtor to be the middle person? Would they need to be include on my lease somehow for it to be valid? I’m also looking for the most recent and valid Chicago lease as I’m afraid my current one, obtained through TurboTenant, doesn’t fit the bill. 

The realtor can be the middle person by facilitating the transaction. The realtor would provide the CAR lease to the new tenant to review and sign after which you would review and sign.  Then pay the realtor a few bucks for facilitating. I'd only do this if one is worried about copyright. 

Regarding the lease being valid- Whether the document is copyrighted or not the lease will be valid if a realtor is not involved.  If 2 parties have signed an agreement that is compliant with the law then the agreement will be valid.

Hi @Crystal Smith, we are looking for an agent to mediate a lease signature. Would you be able to assist? Please let me know. Thanks 

[Judy Wang Berhard]

Hi Jonathan, could you please DM me the 2023 Chicago Residential Lease?  I have a furnished apartment, so if you have this version, I would really appreciate it.  Thank you! Judy

[Kasey Ostarello]

Hi all!

Did there end up being a resolution to this issue? 

Thanks,

Kasey

[Richard F.]

Aloha,

I'm sure most local RE Boards are similar to what we have. All of our forms, when printed, include on the bottom left of page 1, the name of the Realtor that printed the document, their office address and phone number. Yes, it is copyrighted by the local Board, but for an individual to use a copy, although it IS a violation of copyright law, this alone does not invalidate the document or agreement, assuming it is otherwise properly prepared and complete with signatures of the parties involved.

The Realtor that provides a blank form to an individual for their own use, could be in trouble with their local Board for doing so, as a violation of the Code of Ethics and/or rules of membership to the Board that is providing the documents. I have never heard of such a case in over 20 years in the business.