Tenants signed lease, agent then requested commission, attorney canceled

Illinois landlord seeking advice

My wife and I listed our rental in Palatine, Cook County, Illinois, on Facebook Marketplace. We handled the listing and paperwork ourselves to avoid hiring a leasing agent.

A tenant’s agent contacted us and asked whether we were willing to cooperate with an agent. We said yes, understanding that she represented the applicants. We never agreed to pay her commission or discussed an amount.

After viewing the property and taking several days to decide, the applicants confirmed they wanted to proceed. Both sides signed the lease, and the tenants returned it. Relying on their commitment, we turned down other interested applicants. No rent or deposit was paid, and the tenants never took possession.

After we received the signed lease, the agent requested a commission and said her clients might withdraw if we would not cover it. We declined. She later said she would waive her commission but that the tenants were uncomfortable with additional costs, including a $150 application fee and a deposit for occasional dog-sitting.

However, we had emailed her a tenant information sheet listing both fees several days before signing. Our email sending the lease to the tenants for signature also expressly listed the $150 fee and total initial payment.

There are some important details: the signed lease lists a $0 pet deposit and does not authorize pets; the brokerage compensation section was left blank. The agent had reviewed the lease beforehand and told us it looked in order.

She sent a mutual termination releasing everyone from further obligations. We declined and proposed discussing reimbursement of documented lost rent while we sought a replacement tenant.

The tenants then retained an attorney, who formally disapproved the lease under its five-business-day attorney-review clause. The notice arrived the day after acceptance. That clause allows attorney disapproval, provided it is not based solely on the stated rent.

We understand that this clause may allow them to exit, but we are left with a vacant property and have to restart the process.

For landlords familiar with Illinois/Cook County:

• Is there any realistic basis to recover rental losses in these circumstances?
• Is the agent’s handling of compensation and fee disclosures something worth raising with her managing broker or IDFPR?
• How do you handle lease signing, attorney review, and taking a listing off the market to avoid this situation?

I would appreciate practical experience or guidance on whether pursuing this further is worthwhile.