Common Real Estate Transfer Mistakes to Avoid in Illinois

 Posted on September 29, 2023 in Real Estate

When transferring a property title, even small mistakes can cause major legal and financial headaches down the road. Here are some of the most common Illinois real estate transfer mistakes to avoid under Illinois law and how a lawyer can help.

Signing Before Final Walkthrough

Do not sign final closing documents until completing a final property walkthrough to ensure no changes or new damage has occurred. It is tempting to sign closing papers early to get one step closer to moving in, but this risks major unnoticed problems. 

Sellers could cover up or fail to disclose issues like roof leaks, foundation cracks, faulty wiring, or plumbing that arise at the last minute. Signing too early leaves you legally bound without recourse. Always insist on a final walkthrough within 24 hours of closing to check the property thoroughly before signing.

Missing Encumbrances

Failing to identify past-due taxes, mechanics liens, HOA liens, mortgage liens, or other encumbrances on the property can leave you liable after transfer. Completing a thorough title search and getting title insurance protects against undiscovered title defects that could come back to bite you. Do not assume a clean title without verification.

Inaccurate Property Description

Even small errors in the property’s legal description on deeds and documents can make transfers voidable. Verify total accuracy or have a professional survey done to prevent issues. Inconsistencies may create ambiguity over which property was actually transferred.

Inadequate Homeowners Insurance

As the new owner, you need adequate homeowners insurance from day one. Letting a policy lapse even briefly after closing leaves you financially exposed if a loss occurs. Gaps in insurance coverage can have disastrous consequences.

Missing Deadlines

Real estate transfers have strict recording deadlines. Failing to properly file deeds, releases, and other documents on time can completely sink a transfer’s validity. Leave wide margins for errors in timelines and confirm filings. Rushed documents cause problems. An experienced real estate attorney is the best person to ensure your documents are submitted correctly and on time.

Contact a DuPage County, IL Real Estate Lawyer

With so much on the line legally and financially, it is well worth having an experienced Cook County, IL real estate attorney review all aspects of a property transfer. They can catch mistakes and ensure your rights are fully protected. Call [title]] at 773-622-6100 to schedule your free consultation.