What Should Be Included in an Illinois Real Estate Contract?

 Posted on August 09, 2023 in Real Estate

One of the most critical pieces of documentation in a real estate transaction is the purchase contract between the buyer and seller. This contract is usually drafted once the buyer has made an offer on the property and the seller has accepted that offer. This contract outlines all of the terms and conditions of the transaction, providing protection for both parties. The following are some of the key components that should be included in the contract. For more detailed information regarding a real estate transaction you are considering, make sure to consult with a qualified real estate attorney.

Basic Information

Every real estate contract should clearly state the identification of the parties entering into the agreement, including names, current addresses, and contact information. This will eliminate any confusion about who the contract applies to should issues come up in the future.

The contract should also list a specific date for the real estate closing. This is where the property will officially be transferred from the seller to the buyer. The date should be far enough out to allow for appraisals, inspections, and other documentation that will need to be addressed.

The contract should also contain a detailed description of the property being purchased. This includes the condition of the property, as well as any guarantees or warranties. It should also say whether the property is being sold as-is or if there are certain repairs or improvements that the seller is agreeing to make prior to the final closing date. The agreed-upon purchase price should also be listed in the contract, stated in both written and numerical forms.

Additional Factors

There are often other factors that need to be addressed in purchase contracts, including:

• Earnest money deposit – The contract should specify the amount of deposit the buyer will be required to put down on the property and under what conditions that deposit will be refunded or forfeited should the transaction not take place.

• Contingencies – A contingency is something that has not happened yet that could affect the sale of the property. For example, common contingencies include the buyer’s ability to get financing and the results of any appraisals and inspections of the property. The contract should spell out how these issues will be addressed.

• Closing costs – There are a variety of costs that are associated with the closing of the property. These costs include recording fees, transfer taxes, and title insurance. The contract should provide details for which party will be paying which costs.

• Dispute resolution – Unfortunately, there are situations that arise where one party fails to fulfill their contractual obligations. This is why every contract should include how these disputes will be resolved (i.e., mediation or litigation) and what the potential remedies will be.

Contact a Cook County Real Estate Attorney for Legal Assistance

Whether you are a potential buyer or seller, make sure your rights and financial interests are protected. Call Whitacre & Stefanczuk LTD at 773-622-6100 to schedule a free consultation with one of our dedicated DuPage County real estate lawyers. 

Source:

https://www.thebalancemoney.com/purchase-contract-1798612