The first step in a residential real estate purchase or sale in Illinois is the real estate contract or otherwise known as the real estate purchase agreement. Generally, a buyer makes an offer to a seller and a real estate contract is established. Generally, a real estate contract forms when a buyer and a seller agree to the major terms in a real estate contract.
What is the Attorney Review Period?
Attorney review period is the period when one is purchasing or selling real estate in the State of Illinois. In Illinois, a Multi-Board Residential Purchase Agreement or Real Estate Purchase Agreement contains an attorney-review period. An attorney-review period is the opportunity for the buyer and seller may amend the real estate purchase agreement except for the purchase price.
In most real estate agreements, the attorney-review period elapses after five (5) business days after acceptance of the real estate contract. The purpose of the attorney-review period is to enable a buyer and seller of real estate to have their attorney review the contractual obligations and duties of their clients. In most cases, the parties such as a buyer or seller can terminate the real estate contract without consequence within five (5) business days.
Typically, during the attorney-review period, the home inspection period and the attorney-review period will run at the same time. It is important to immediately give your attorney the real estate purchase agreement. Typically, the buyer has the most amendments to a real estate contract. Generally, these amendments including but not limited to the following issues:
- The contract shall be contingent on the property appraising at or above the contract purchase price by the Buyer’s lender’s appraiser.
- The Seller shall leave any available appliance and fixture warranties and instruction manuals in the home at closing
- The Seller shall provide written proof at closing that the public utility bills are paid through the date of closing. If the bills are not available, Seller agrees that they will promptly pay all bills when due. The duty of payment of utility services shall not merge with the deed and shall survive closing.
- The seller represents that the property is not located in a flood plain or special flood hazard area. Seller shall further represent that they have never obtained flood hazard insurance policy regarding any portion of the subject property
- The seller represents that there were no claims with homeowners’ insurance in the past 5 years. If there were any homeowners claims, Seller(s) will disclosure the nature and extent of the homeowners’ claims.
- The seller represents that the basement is free of water, seepage, leaks, or flooding and that roofs are free from leakage. The seller further represents seller has not become aware of any circumstances which would alter the indications made in the Residential Real Estate Property Disclosure Report which has been delivered to buyers, and that the seller shall notify the buyer of any such circumstances which occurs prior to closing.
- Any fines and court costs covering the subject premises from prior to present municipal code violations shall be the sole responsibility to satisfy at the seller’s expense. Even if the violations and/or fines do not appear on the title commitment for the title insurance. This obligation shall survive the closing and not merge with the passing of the deed.
- The 2019 real estate tax credits shall be calculated based on 105 percent of the last ascertainable full year tax bill without application of any senior exemption and homestead exemption that has not been approved by the Assessor for the tax year in question. 2018 real estate taxes shall be any amounts due. Seller shall provide written proof of the accepted application of all exemptions applied to the credits at closing.
These are examples of the type of amendments that a buyer’s attorney will request a seller’s attorney. These amendments to the real estate purchase agreement are typical amendments to a real estate contract. The most important amendment, which is not governed by most real estate purchase agreements is the property appraisal for the purchase price. Second, most buyers want to know whether there have been any insurance claims at the property. These questions are several examples of the type of issues that buyer’s real estate and seller’s real estate attorneys address during the attorney-review period in the Yorkville, Plano, Plainfield, Oswego, Joliet, Shorewood, Will County, and Kendall County areas.
YORKVILLE, NAPERVILLE, SHOREWOOD, AND PLAINFIELD REAL ESTATE CLOSING ATTORNEY
Attorney Sean Robertson is a skilled and experienced real estate attorney serving the Naperville, Yorkville, and Shorewood areas of Illinois and nearby areas. Sean Robertson is a real estate attorney that services Will County, Kendall County, DuPage County, Kane County, and Grundy County areas of Illinois. Attorney Robertson is an attorney with over 15 years of experience. As a real estate attorney, Attorney Robertson protect home buyers and sellers’ financial interests during the real estate purchase and sale process in the Suburbs of Chicago, Illinois. Attorney Robertson may be reached at 630-780-1034.