Real Estate Law

Purchasing a new home will probably be the single largest investment of your life. To protect that purchase, it is important that you work with knowledgeable professionals at each stage of the buying process. Each member of your team – your real estate attorney, real estate agent, home inspector, and lender – has a vital role to play in the process.

In addition, assembling your team of professionals with care and consideration at the outset of the process will help you avoid making a rushed or regretful decision.

In recent years, the process of buying a home has become increasingly complex. Retaining a qualified, competent real estate attorney at the outset can save you costly mistakes throughout the process. Ideally, you should bring your real estate attorney on board before you make a purchase, and should consult with him or her before you sign any document. At the very least, if you feel you must submit an offer to purchase before your attorney has the opportunity to draft or review the offer, be sure the offer provides an attorney approval/modification contingency provision granting your attorney a reasonable period of time (several business days) to review and possibly revise the terms of the offer. Because any changes proposed during the attorney approval period may be deemed counteroffers having possible adverse legal consequences, it is best to consult your attorney before you submit an offer. The attorney approval contingency may also be limited by the offer to matters other than dates, purchase price, or other specified issues, thus limiting your attorney's ability to assist you.

BEWARE: IF YOU SIGN A CONTRACT THAT DOES NOT CONTAIN AN ATTORNEY REVIEW CONTINGENCY, YOUR ATTORNEY WILL NOT BE ABLE TO MODIFY THE TERMS OF THE CONTRACT IN ORDER TO BETTER PROTECT YOUR INTERESTS AND YOU MAY BECOME OBLIGATED TO PERFORM UNDER THE CONTRACT TERMS.

If you do not know a competent, experienced real estate attorney, ask your friends and colleagues to recommend an attorney with whom they have had a satisfactory experience in a real estate matter. You can also contact your local bar association and ask for the names of several real estate attorneys in your area. When you contact the attorney, be sure to inquire about the fee arrangement and ask questions about that attorney's experience in handling real estate matters.

Your real estate attorney will be the glue that holds the complex process together. Among other things, your attorney will:

• provide an overview of the process and the attorney's role in that process;
• draft, review, explain and/or negotiate your contract to purchase;
• discuss timing and possession issues, including matters relating to your current lease if you are renting;
• communicate and negotiate repair issues related to your home inspection;
• examine the title commitment and survey to determine that you are purchasing the property contracted for, without encumbrances or title defects you have not agreed to accept;
• explain contract contingencies, if any, and monitor deadlines to make sure those contingencies are met;
• explain mortgage financing options;
• verify and explain tax prorations and other closing figures;
• attend the closing to ensure compliance with the contract and to review the loan documents to verify compliance with your loan agreement; and
• after the closing, review the recorded deed and the final title insurance policy for accuracy.

Much of your attorney's work will be behind the scenes, arranging the closing and monitoring the progress of the other members of your real estate team to ensure that the purchase progresses as well as possible.

Your real estate agent

Once you have determined the area where you wish to live, you can often save both time and frustration by working with a knowledgeable and enthusiastic real estate agent familiar with that area. Your agent will work with you to identify the characteristics you are looking for in a home and can save you time and legwork by identifying homes that meet your specifications and arranging for you to see them.

Your real estate broker will work with you to identify the characteristics you are looking for in a home and can save you time and legwork by identifying homes that meet your specifications and arrange for you to see them.

Under Illinois law, when you work with a licensed broker to find a home, it is presumed that he or she is acting as your agent unless you sign an agreement to the contrary or the broker performs only ministerial tasks such as responding to questions about a property or setting an appointment to view property that you (and not the broker) have researched and selected. All real estate brokers in Illinois must be sponsored by a licensed managing broker, which is usually a real estate brokerage company, and thus the broker with whom you work may request you enter into an exclusive agreement with his or her managing broker. Most listing agreements are not subject to the review or modification of your attorney so be sure that you understand the terms of the agreement and that your attorney has the opportunity to review it before you sign it. You should have a clear understanding of how, when, and by whom the managing broker and your real estate broker will be paid for their services.

Your home inspector

Illinois law requires most home sellers to provide prospective buyers with a completed disclosure form relating to the condition of the house prior to the formation of a contract. The disclosures on this form include whether the seller is aware, for example, of flooding or recurring leakage problems in the crawl space or basement, of boundary or lot line disputes, or of leaks or material defects in the roof, ceilings, or chimney. Although the disclosure form may contain information of use to you in deciding whether to purchase a particular home, or how much to offer, it is not intended to take the place of an independent, professional home inspection. If you do not have a home inspection before you submit an offer to purchase (due, for instance, to time and cost factors), you should insist on a reasonable inspection contingency period after the acceptance of your offer (again, several business days) to allow for one or more professional inspections of the property. Here are some additional things to keep in mind:

• Choose your own independent home inspector, in advance, as a member of your team; this will enable you to act quickly during an often brief contingency period.
• Obtain referrals for a qualified home inspector from friends or colleagues, or contact the American Society of Home Inspectors (ASHI) or the Illinois Chapter of the National Association of Home Inspectors, Inc.
• You may wish to have a general inspection, supplemented by specialized inspections – for pests, fireplace, heating system or environmental concerns, for example – as the situation warrants.
• Do not forego hiring your own independent inspector simply because you are obtaining a Federal Housing Administration (FHA) or Department of Veterans Affairs (VA) insured loan, both of which require an inspection as part of the appraisal, or if a city ordinance requires an inspection as a condition of any sale.
• You cannot require the seller to undertake repairs for matters discovered during the independent inspection, but you may be able to terminate a contract for a home with unsatisfactory conditions, or you may be able to renegotiate a price that more appropriately reflects the unanticipated problems.

Your lender

Just like shopping for a home, you should shop for a financial situation. Under the guidelines prescribed by the Consumer Financial Protection Bureau, before committing yourself to a lender, as a consumer, you are encouraged to shop around for a mortgage provider than can supply you with the best loan terms for your particular situation. In addition to seeking the best terms, by enlisting this critical member of your real estate team in advance, you will benefit by having a realistic assessment of your price range before you shop. You should consider submitting a formal application for written loan pre-approval. This will give you the ability to shop with confidence and may give you an edge with home sellers.

When speaking with prospective lenders, ask about all loan costs and fees, not just interest rates and service charges (points). Find out whether a prospective lender can realistically meet your closing time frame and that of any financing contingency you may have. Once you have selected a lender:

• Prior to making your loan application, ask your lender what documentation you will need to supply and take it to the application meeting.
• Make sure you do not lock in a rate that will expire before your contract closing date.
• If your lender suggests a co-signer, or a particular method of holding title, consult with your attorney before agreeing.
• Find out whether your lender will require escrows (reserves) for property taxes, insurance, or private mortgage insurance.
• To avoid delays, resist the urge to continue shopping with other lenders for a better rate once you have applied.
• If you are told your loan is approved, expect to see a written commitment and scrutinize it for conditions to be fulfilled (e.g., appraisal, explanation letters, copies of checks) before the commitment is binding on your lender.
• At the closing, review the "good faith estimate" of closing costs supplied by the lender to verify that the various fees charged by the lender are consistent with those you were quoted at application.

Because your attorney should be familiar with the mortgage loan process, he or she can help you understand the information you get from your lender and can monitor your lender to keep the closing on schedule.

The contract to purchase

Once you have selected the home you wish to buy, you must make a written offer to purchase. If your offer is accepted, you will then have a legally binding contract. The contract will govern the transaction by setting forth the rights and obligations of both the buyer and the seller. Other than possibly the deed, the contract is the single most important document involved in the purchase of a home. The contract will include all the terms of your purchase, such as purchase price, amount of earnest money deposit, financing terms, closing date, possession date, personal property to be included in the sale, tax prorations, right of inspection, and possible contingencies, such as attorney's approval, inspection, financing, or the sale of your present home. Other concerns that may need to be addressed include existing leases, well and septic issues, and whether the property is being conveyed "as is."

Ideally, you should fully understand all the terms of your offer before you enter into a binding contract; a qualified real estate transactional attorney can assist you in preparing and presenting your offer. However, if your offer is presented to the seller prior to you consulting your attorney, make sure the contract will allow your attorney to review it and modify its provisions, if necessary, as discussed above.

AS STATED PREVIOUSLY, ONCE THE CONTRACT IS SIGNED BY BOTH PARTIES, UNLESS THE CONTRACT CONTAINS AN ATTORNEY APPROVAL CONTINGENCY, YOUR INTERESTS MAY NOT BE ADEQUATELY PROTECTED, AND YOU MAY BE LEGALLY OBLIGATED TO COMPLETE THE TRANSACTION.

Your title insurance company

In most Illinois communities, it is common for the seller to provide you with an owner's title insurance policy in connection with your home purchase. Your contract should make this a requirement.

A commitment to issue an owner's title insurance policy should be given to your attorney prior to closing. It will show who owns the property, what liens or other matters affect the seller's ownership (such as mortgages, unpaid taxes or judgments), as well as any easements, building restrictions, set-back lines or other matters of record which affect the property. Your attorney will review this title commitment and require that the seller clear up any items that are not permitted by your contract and could adversely affect your ownership rights. After closing, you will be issued an owner's title insurance policy which insures your ownership rights subject to the terms of the policy. Many form offers to purchase real estate include a provision which obligates the purchaser to take the property subject to all existing easements, covenants, reservations, and restrictions of record. If such an offer is signed by the prospective purchaser and accepted by the seller, the purchaser has already agreed to accept any objectionable encroachments which may exist, all without knowledge of their existence. This common occurrence once again demonstrates the necessity of having qualified legal counsel to assist you throughout the entire process.

If you are obtaining financing to purchase the property, your lender will require that the title company issue (at your expense) a title policy insuring the validity of your lender's mortgage. This is commonly called a loan policy or mortgage policy. It insures only the lender's interest and does not take the place of the owner's policy issued to you. The commitment for mortgagee's title insurance should be sent to the lender sufficiently in advance of the closing.

The other players

There are other professionals who may be needed as part of your real estate team. They usually will perform a specific role and will not be involved in the transaction on an ongoing basis. They may include:

• A surveyor, who determines the location of the improvements in relation to the lot lines and establishes the location of easements, building or setback lines, and improvements on adjacent properties. The contract will govern who is responsible for providing and paying for the survey.
• An appraiser, employed at your expense by your lender to determine that the value of the home corresponds with the purchase price. If you are buying without the services of a real estate agent, you may wish to employ an appraiser to give you an idea of the value of the home before you make an offer to the seller.
• Your tax advisor or estate planner can work with your real estate attorney to assist you in determining how best to hold title or to maximize tax deductions for personal financial or estate planning purposes.
• The escrow agent or closer, usually an employee of the title company, who acts as your lender's agent to ensure that the lender's requirements are met before the loan proceeds are disbursed.

Pre-closing considerations

If there is more than one buyer, your attorney will explain to you the various title holding alternatives available to co-owners, which include tenancy in common, joint tenancy, or tenancy by the entirety. If you are unmarried and living with a partner, your attorney may suggest that you enter into a written agreement with your co-owner to spell out such things as sharing of expenses, unequal contributions, and terminating the co-ownership. Inheritance rights will be determined by the form of ownership as well as your individual estate plan and state law.

Your real estate broker should hep you arrange a pre-closing inspection so you can determine if the seller has completed any agreed upon repairs and that the property is otherwise in the same general condition as when you entered into the contract.

The contract will control the time of transfer of possession from the seller to the buyer. However, circumstances sometimes prevent absolute compliance with the contract. Rather than terminating the contract or changing the closing date, the parties may wish to negotiate either pre-closing occupancy by the buyer or post-closing occupancy by the seller. Your attorney will point out the risks inherent in such situations and should draft an agreement to address such concerns as occupancy charges, utility payments, insurance considerations, maintenance and repair, penalty provisions, and other consequences of non-owner occupancy.

The closing

Once the mortgage loan is approved, the title insurance commitment is issued and approved, the property is surveyed, and the final inspection of the property is completed, you are ready to close. The closing will take place at the office of the title insurance company or at the office of one of the attorneys. The closing should be attended by you, your attorney, the seller, the sellers' attorney, the real estate agents, the escrow agent or closer, and may include the lender.

There will be many mortgage loan documents and other closing documents to review and sign at the closing. Your attorney will explain these to you and make sure that they are accurate and appropriate. You should receive copies of all documents you sign at the closing, as well as the keys to the purchased property, garage door transmitters, and any warranties and instruction manuals the seller may have available.

Special circumstances

This brochure has discussed the basic type of a home purchase – an existing single family home purchase with conventional mortgage financing. A variety of special circumstances, such as new construction, condominium purchases, cooperatives, homeowner and other associations, installment sale (often called land sale contracts or articles of agreement), seller financing, lease-option, by-owner sale, senior/retirement housing, tax-deferred exchange, multifamily buildings, land trusts, estate planning trusts, planned unit development, condominium conversions, and even cash transactions, require additional consideration that are beyond the scope of this brochure. The "standard" forms used in your community may not be appropriate for all of these situations and may not sufficiently protect you. Your real estate attorney can explain the distinctions, considerations, and risks of these types of transactions, and tailor your contract to suit your needs and afford you the protection you need.

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Prepared by the Illinois State Bar Association's Real Estate Law Section (2017)

Landlord-Tenant Law

At some point during their lives most people will be involved with the rental of real estate, either as landlord or tenant. Laws that affect landlords and tenants can vary significantly from city to city. This pamphlet provides general information about being a tenant in Illinois. You should consult with an attorney or your municipality or county as they may provide you with greater protection under the law.

Tenancy Agreement

The relationship between landlord and tenant arises from an agreement, written or oral, by which one party occupies the real estate of another with the owner's consent in return for the payment of certain amount as rent.

Written Agreement: Most tenancies are in writing and are called a lease. No particular words are necessary to create a lease, but generally the terms of a lease include a description of the real estate, the length of the agreement, the amount of the rent, and the time of payment. TIP: You should put your agreement in writing to avoid future misunderstandings.

Provisions in a lease agreement that protect a landlord from liability for damages to persons or property caused by the negligence of the landlord are viewed as being against public policy and are therefore unenforceable. Certain municipalities and counties have other restrictions and prohibition on certain lease terms, so you should consult with an attorney or your municipality or county.

Oral Agreement: If a tenancy agreement is not in writing, the term of the agreement will, generally, be considered a month-to-month tenancy. The period is generally determined by the frequency of the rental payments. For example: week to week, month to month, or year to year. Although the terms of an oral lease may be difficult to determine, a party may be bound to the terms of an oral agreement just as much as a written one.

Termination of the Lease or Tenancy Agreement

If a lease is not for a specific term, it may be terminated by either party with proper notice.

• For year-to-year tenancies, other than a lease of farmland, either party may terminate the lease by giving 60 days of written notice at any time within the four months preceding the last 60 days of the lease.
• A week-to-week tenancy may be terminated by either party by giving seven days of written notice to the other party.
• Farm leases generally run for one year. Customarily, they begin and end in March of each year. Notice to terminate must be given at least four months before the end of the term.
• In all other lease agreements for a period of less than one year, a party must give 30 days of written notice. Any notice given should call for termination on the last day of that rental period.
• The lease may also have stated requirements and timeframe for termination of the lease.
• In certain municipalities and counties, landlords are required to give more than the above stated notice period for termination. You should consult with an attorney or your municipality or county.

If the lease does state a specific expiration or termination date, no termination notice is necessary. Be aware that your lease may also require notice of termination in a specific form or a greater notice period than the minimum required by law, if any. Landlords should note that no matter what the lease requires or states, you may be required to give more than the notice period stated in the lease for termination and in writing. You should consult with an attorney or your municipality or county.

Termination of a month-to-month tenancy usually only requires 30 days of notice by tenant and a landlord is required to serve a written notice of termination of tenancy on the tenant (see Service on Demand section below). In certain municipalities and counties, landlords are required to give more than 30 days of notice, so you should consult with consult with an attorney or your municipality or county.

Renewal of the Lease or Tenancy Agreement, Rental Increases

Generally, a lease may be renewed at any time by oral or written agreement of the parties. If a lease term expires and the landlord accepts rent following the expiration of the term, the lease term automatically becomes month-to-month based on the same terms set forth in the lease.

The lease may require a specific notice and timeframe for renewing the lease. You should review your lease to confirm such requirements. Landlords and tenants should note that no matter what the lease requires or states, landlords may also have restrictions on how early they can require renewal of a lease by a tenant and are required to put such in writing. You should consult with an attorney or your municipality or county.

Month-to-month tenancies automatically renew from month to month until terminated by either landlord or tenant.

Unless there is a written lease, a landlord can raise the rent by any amount by giving the tenant notice: Seven days of notice for a week-to-week tenancy, 30 days of notice for a month-to-month tenancy, and 90 days of notice for mobile home parks. In certain municipalities and counties, landlords are required to give more than seven or 30 days of notice of a rental increase, so you should consult with consult with an attorney or your municipality or county.

Eviction, Termination of Tenants Right to Possession

In Illinois, a landlord does not have a right to self-help and must file an eviction to remove a tenant or occupant from the premises.

Five-Day Notice. The most common breach of a lease is for non-payment of rent. In this case the landlord must serve a five-day notice upon the delinquent tenant unless the lease requires more than five days of notice. Five days after such notice is served, the landlord may commence eviction proceedings against the tenant. If, however, the tenant pays the full amount of rent demanded in the five-day notice within those five days, the landlord may not proceed with an eviction. The landlord is not required, however, to accept rent that is less than the exact amount due. If the landlord accepts a tender of a lesser amount of rent, it may affect the rights to proceed under the notice.

10-Day Notice. If a landlord wishes to terminate a lease because of a violation of the lease agreement by the tenant, other than for non-payment of rent, he or she must serve 10 days of written notice upon the tenant before eviction proceedings can begin, unless the lease requires more than 10 days of notice. Acceptance of rent after such notice is a waiver by the landlord of the right to terminate the lease unless the breach complained of is a continuing breach.

Holdover. If a tenant stays beyond the lease expiration date, generally, a landlord may file an eviction without having to first serve a notice on the tenant. However, the terms of the lease or in certain municipalities or counties, a landlord is required to provide a notice of non-renewal to the tenant, so you should consult with an attorney or your municipality or county.

Service on Demand Notice

The five-day, 10-day, or termination of month-to-month tenancy notices may be served upon tenant by delivering a written or printed copy to the tenant, leaving the same with some person above the age of 13 years who lives at the party's residence, or sending a copy of the notice to the party by certified or registered mail with a return receipt from the addressee. If no one is in the actual possession of the premises, then posting notice on the premises is sufficient.

Subletting or Assigning the Lease

Often, written leases prohibit the tenant from subletting the premises without the written consent of the landlord. Such consent cannot be unreasonably withheld, but the prohibition is enforceable under the law. If there is no such prohibition, then a tenant may sublease or assign their lease to another. In such cases, however, the tenant will remain responsible to the landlord unless the landlord releases the original tenant. A breach of the sublease will not change the initial relationship between the landlord and tenant.

Breach by Landlord, Tenant Remedies

If the landlord has breached the lease by failing to meet their duties under the lease, certain remedies arise in favor of the tenant:

• The tenant may sue the landlord for damages sustained as a result of the breach.
• If a landlord fails to maintain a leased residence in a livable condition, the tenant may be able to vacate the premises and terminate the lease under the theory of "constructive eviction."
• The failure of a landlord to maintain a leased residence in a livable condition or comply substantially with local housing codes may be a breach of the landlord's "implied warranty of habitability" (independent of any written lease provisions or oral promises), which the tenant may assert as a defense to an eviction based on the non-payment of rent or a claim for reduction in the rental value of the premises. However, breach by landlord does not automatically entitle a tenant to withhold rent or a reduction in the rental value. The obligation to pay rent continues as long as the tenant remains in the leased premises and to assert this defense successfully, the tenant will have to show that their damages resulting from landlord's breach of this "implied warranty" equal or exceed the rent claimed due.

A landlord's breach and tenant's damages may be difficult to prove. Because of the limited and technical nature of these rules, tenants should be extremely cautious in withholding rent and should probably do so only after consulting an attorney.

Please note that certain municipalities or counties provide for certain obligations and requirements that the landlord must perform. If a landlord fails to comply with such obligations or requirements, the tenant may have additional remedies for such failure. You should consult with an attorney or your municipality or county.

Breach by the Tenant, Landlord Remedies

In addition to termination for certain breaches by tenant, a landlord also has the following remedies:

If rent is not paid, the landlord may: (1) sue for the rent due or to become due in the future and (2) terminate the lease and collect any past rent due. Under certain circumstances in the event of non-payment of rent the landlord may hold the furniture and personal property of the tenant until past rent is paid by the tenant.

If a tenant fails to vacate the leased premise at the end of the lease term, the tenant may become liable for double rent for the period of holdover if the holdover is deemed to be willful. The tenant can also be evicted.

If the tenant damages the premises, the landlord may sue for the repair of such damages.

Please note that certain municipalities or counties provide for certain obligations and requirements that the tenant must fulfill. If a tenant fails to comply with such obligations or requirements, the landlord may have additional remedies for such failure. You should consult with an attorney or your municipality or county.

Discrimination

Under the federal Fair Housing Act and Illinois law, it is unlawful for a landlord to discriminate in the leasing of a dwelling house, flat, or apartment against prospective tenants who have children under the age of 14. It is also unlawful for a landlord to discriminate against a tenant on the basis of race, religion, sex, national origin, source of income, sexual origination, gender identity, or disability.

Security Deposits, Move-in Fee

Security Deposit. A tenant can be required to deposit with the landlord a sum of money prior to occupying the property. This is usually referred to as a security deposit. This money is deemed to be security for any damage to the premises or non-payment of rent. The security deposit does not relieve the tenant of the duty to pay the last month’s rent or for damage caused to the premises. It must be returned to the tenant upon vacating the premises if no damage has been done beyond normal wear and tear and the rent is fully paid.

If a landlord fails to return the security deposit promptly, the tenant can sue to recover the portion of the security deposit to which the tenant is entitled. In some municipalities or counties and certain circumstances under state law, when a landlord wrongfully withholds a tenant’s security deposit the tenant may be able to recover additional damages and attorneys’ fees. You should consult with a lawyer.

Generally, a landlord who receives a security deposit may not withhold any part of that deposit as compensation for property damage unless he furnishes to the tenant, within 30 days of the date the tenant vacates, a statement of damage allegedly caused by the tenant and the estimated or actual cost of repairing or replacing each item on that statement. If no such statement is furnished within 30 days, the landlord must return the security deposit in full within 45 days of the date the tenant vacated.

If a building contains 25 or more residential units, the landlord must also pay interest on the deposit from the date it was paid, if held more than 67 months. Interest is calculated at the rate paid by the largest bank in Illinois, as determined by total assets, on a passbook security account.

The above statements regarding security deposits are based on state law. However, some municipalities or counties may impose additional obligations. For example, Cook County, Evanston, Chicago, and Oak Park all have additional requirements that a landlord must comply with when taking security deposits and provide steep penalties when a landlord fails to comply.

Move-in Fee. In addition to or as an alternative to a security deposit, a landlord may charge a move-in fee. Generally, there are no specific limitations on the amount of a move-in fee, however, certain municipalities or counties do provide restrictions. TIP: A move-in fee should be nonrefundable, otherwise it could be deemed to be a security deposit.

Landlord and tenant matters can become complex. Both landlord and tenant should consult an attorney for assistance with particular problems. For more information about your rights and responsibilities as a tenant, including specific landlord-tenant laws in your municipality or county, contact your local bar association, or visit the Illinois Tenants Union at www.tenant.org.

Additional Resources

• Illinois Lawyer Finder: isba.org/public/illinoislawyerfinder
• Illinois Legal Aid Online (ILAO): illinoislegalaid.org
• Illinois Standardized Court Forms: illinoiscourts.gov/approved-forms
• Illinois Court Help: ilcourthelp.gov
• Illinois Free Legal Answers: il.freelegalanswers.org

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Prepared by the Illinois State Bar Association's Real Estate Law Section (2024)

Selling a home

When and how you sell your home may be the largest and most important investment decision of your life. Working with a knowledgeable real estate attorney will help ensure that you protect your investment and ensure that the process of selling your home goes smoothly. An experienced real estate attorney will make sure that, before signing, you understand all legal agreements related to the sale of your home.

How your attorney can help you

Since the process of selling your home is fairly complex, the Illinois State Bar Association recommends that you hire and consult with an experienced real estate attorney before you sign any documents related to the sale of your home. If you do not know an experienced real estate attorney, contact the ISBA (www.ilf.isba.org) or your local bar association and they will provide you with the names of several attorneys in your area. When you contact an attorney, be sure to inquire about the fee arrangement and ask questions about that attorney's experience in handling real estate matters. Also, it is helpful if you have copies of the following documents relating to the property you wish to sell available for your attorney to review:

• the title policy;
• the deed;
• the survey; and
• if there is a mortgage outstanding on the property, a copy of the current mortgage statement along with a loan number and customer service number.

If you are involved in a mortgage foreclosure or any other lawsuit that may affect the property, you need to let your attorney know and provide him or her with copies of any documents you may have.

After your initial consultation with your attorney, you can then decide if you are ready to put your house on the market. If you decide to use a realtor, you should send the listing agreement to your attorney for review.

The contract to purchase

When a buyer is interested in purchasing your home, the buyer should submit an offer to purchase in writing. If you accept the offer, you and the buyer have a binding contract, which sets forth the rights of both the seller and buyer. The contract should include all the terms of your sale, such as sales price, earnest money deposit, financing terms, closing date, possession date, personal property to be included in the sale, tax prorations, and rights of inspection and possession. Since the contract is the most important document involved in the sale of a home, it is essential that you understand the terms of the offer. DO NOT SIGN ANY OFFER WITH CONDITIONS YOU DO NOT UNDERSTAND. Your real estate attorney can assist you in reviewing your offer and making any counteroffers, if necessary. If you MUST accept an offer from a buyer prior to consulting with your attorney, make sure your contract allows for an attorney to review it and modify its provisions, if necessary.

The closing

In addition to helping you negotiate the terms of the contract, when all requirements of the Contract have been met, your attorney will arrange the time and place for your closing. As necessary, your attorney will perform the following tasks:

1. Obtain a pay-off statement for your existing loan(s), if any.
2. Assist in the selection of a title company of your choice.
3. Assist in obtaining any necessary inspections (termite, radon, mechanical, etc.).
4. Assist in the completion of the Residential Real Property Disclosure Act and a Lead-Paint Hazard disclosure, if applicable.
5. Review and pro-rate your real estate taxes.
6. Prepare your final closing figures and forward to the title closer.
7. Prepare conveyance documents and other closing documentation necessary to complete the transaction.
8. Help prevent or resolve disputes between you and the Buyer regarding the inspections, repairs, and the possession date.
9. Attend the closing with you and explain the transaction to you.
10. Assist you with post-closing matters.

This brochure is designed to explain the basic steps of selling a single family home. However, every real estate closing is unique. A variety of special circumstances, such as new construction, co-operatives, installment sale (also called land sale contracts or articles of agreement), seller financing, lease-options, senior/retirement housing, tax deferred exchanges, multifamily building, land trust, estate planning trusts, planned unit developments, condominium conversions, and even cash transactions, require additional considerations that are beyond the scope of this brochure. Just remember that when you are ready to sell a home, the best possible decision you can make is to hire an experienced real estate attorney.

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Prepared by the Illinois State Bar Association's Real Estate Law Section (2017)