The Illinois Realtor Contract form, utilized broadly in real estate transactions within Illinois, outlines the agreement between a buyer and a seller on the purchase and sale of property. This comprehensive document details the terms of the sale, including the purchase price, property descriptions, and conditions that must be met before the transaction can be finalized. For anyone engaging in property transactions in Illinois, understanding and accurately filling out this form is crucial. Ensure your real estate sale proceeds smoothly by clicking the button below to fill out your Illinois Realtor Contract form accurately.
The Illinois Realtor Contract Form, extensively employed in the statutorily mandated process involving the sale and purchase of real estate, encapsulates a set of comprehensive terms designed to both guide and protect parties through the transaction. The initial sections of this intricate document outline the mutual agreement between purchaser and seller regarding property specifics, sale price, and the condition of real estate located within the confines of Illinois. It further delves into the responsibilities of the seller to provide clear title under the stipulated conditions, which includes, but is not limited to, the dealing with covenants, easements, existing leases, and specified assessments and taxes. Additionally, it specifies the earnest money provision, adjustment of prorations at closing, and mechanisms for dispute resolution regarding title unmarketability and survey defects. The form also mandates the seller’s burden in furnishing vital documents such as a current plat of survey and a title commitment. With meticulous delineation of the closing process, including time frames and escrow instructions, coupled with adjustments for various prorations and the applicability of specific acts such as the Illinois Responsible Property Transfer Act, it provides a holistic framework for real estate transactions. Regulations on broker’s commission, municipal code compliance warranties, mode of notices, and the essential provisions under the Illinois Uniform Vendor and Purchaser Risk Act are elaborately discussed to prevent ambiguities and ensure a smooth conveyance process, signifying its pivotal role in the realm of Illinois real estate transactions.
CHICAGO TITLE INSURANCE COMPANY
REAL ESTATE SALE CONTRACT
ILLINOIS FORM B *
1._______________________________________________________________________________________________(Purchaser) agrees to purchase at a price of $ __________________________________ on the terms set forth herein, the following described real estate in ___________________ County, Illinois:
commonly known as _____________________________________________________________________, and with approximate
lot dimensions of ______________ x ______________, together with the following property presently located thereon:
2.(Seller) agrees to sell the real estate and the property described above, if any, at the price and terms set forth herein, and to convey or cause to be conveyed to Purchaser or nominee title thereto by a recordable ____________________________ deed, with release of homestead tights, if any, and a proper bill of sale, subject only to: (a) covenants, conditions and restrictions of record; (b) private, public and utility easements and roads and highways, if any; (c) party wall rights and agreements, or any; (d) existing leases and tenancies (as listed in Schedule A attached); (e) special taxes or assessments for improvements not yet completed, (f) installments not due at the date hereof of any special tax or assessment for improvements heretofore completed; (g) mortgage or trust deed specified below, if any; (h) general taxes for the year _______________ and subsequent years including taxes which may accrue by reason of new of additional improvements during the year(s) ______________; and to
3.Purchaser has paid $ _____________________ as earnest money to be applied on the purchase price, and agrees to pay or satisfy the balance of the purchase price, plus or minus prorations, at the time of closing as follows: (strike language and subparagraphs not applicable)
(a)The payment of $ __________________
(b)The payment of $ _______________________________________ and the balance payable as follows:
to be evidenced by the note of Purchaser (grantee), providing for full prepayment privileges without penalty, which shall be secured by a part-purchase money mortgage (trust deed), the latter instrument and the note to be in the form hereto attached as Schedule B, or, in the absence of this attachment, the forms prepared by _____________________________________________ and identified as
Nos. _______________,** and by a security agreement (as to which Purchaser will execute or cause to be executed such financing
statements as may be required under the Uniform Commercial Code in order to make the lien created thereunder effective), and an assignment of rents, said security agreement and assignment of rents to be in the forms appended hereto as Schedules C and D. Purchaser shall furnish to Seller an American Land Title Association loan policy insuring the mortgage (trust deed) issued by the Chicago Title Insurance Company.
(**If a Schedule B is not attached and the blanks are not filled in, the note shall be secured by a trust deed, and the note and trust deed shall be in the forms used by The Chicago Trust Company.)
(c).The acceptance of the title to the real estate by Purchaser subject to a mortgage or trust deed of record securing a principal indebtedness (which the Purchaser [does] [does not] agree to assume) aggregating $ ____________________ bearing interest at the rate of __________% a year, and the payment of a sum which represents the difference between the amount due on the indebtedness at the time of closing and the balance of the purchase price.
4.Seller, at his own expense, agrees to furnish Purchaser a current plat of survey of the above real estate made, and so certified by the surveyor as having been made, in compliance with the Illinois Land Survey Standards.
5.The time of closing shall be on ____________________________ or on the date, if any, to which such time is extended by reason of paragraphs 2 or 10 of the Conditions and Stipulations hereafter becoming operative (whichever date is later), unless subsequently mutually agreed otherwise, at the office of ________________________________________________________ or of the mortgage lender, if any, provided title is shown to be good or is accepted by Purchaser.
6.Seller agrees to pay a broker's commission to _______________________________________________________________ in the amount set forth in the broker's listing contract or as follows:
7.The earnest money shall be held by ________________________________________________________________ for the mutual benefit of the parties.
8.Seller warrants that Seller, its beneficiaries or agents of Seller or of its beneficiaries have received no notices from any city, village or other governmental authority of zoning, building, fire or health code violations in respect to the real estate that have not been heretofore corrected.
9.A duplicate original of this contract, duly executed by the Seller and his spouse, if any, shall be delivered to the Purchaser within
____________ days from the date hereof, otherwise, at the Purchaser's option, this contract shall become null and void and the earnest money shall be refunded to the Purchaser.
This contract is subject to the Conditions and Stipulations set forth on the following pages, which Conditions and Stipulations are made a part of this contract.
Dated:
Purchaser:Address:
Seller:Address:
*Form normally used for sale of property improved with multi-family structures of five or more units or of commercial or industrial properties.
ADV. VI.O R2/95 K3773
CONDITIONS AND STIPULATIONS
1.Seller shall deliver or cause to be delivered to Purchaser or Purchaser's agent, not less than 5 days prior to the time of closing, the plat of survey (If one is required to be delivered under the terms of this contract) and a title commitment for an owner's title insurance policy issued by the Chicago Title Insurance Company in the amount of the purchase price, covering title to the real estate on or after the date hereof, showing title in the intended grantor subject only to (a) the general exceptions contained in the policy, (b) the title exceptions set forth above, and (c) title exceptions pertaining to liens or encumbrances of a definite or ascertainable amount which may be removed by the payment of money at the time of closing and which the Seller may so remove at that time by using the funds to be paid upon the delivery of the deed (all of which are herein referred to as the permitted exceptions). The title commitment shall be conclusive evidence of good title as therein shown as to all matters insured by the policy, subject only to the exceptions as therein stated. Seller also shall furnish Purchaser an affidavit of title in customary form covering the date of closing and showing title in Seller subject only to the permitted exceptions in foregoing items (b) and (c) and unpermitted exceptions or defects in the title disclosed by the survey, if any, as to which the title insurer commits to extend insurance in the manner specified in paragraph 2 below.
2.If the title commitment or plat of survey (if one is required to be delivered under the terms of this contract) discloses either unpermitted exceptions or survey matters that render the title unmarketable (herein referred to as "survey defects"), Seller shall have
30days from the date of delivery thereof to have the exceptions removed from the commitment or to correct such survey defects or to have the title insurer commit to insure against loss or damage that may be occasioned by such exceptions or survey defects, and, in such event, the time of closing shall be 35 days after delivery of the commitment or the time expressly specified in paragraph 5 on the second page hereof, whichever is later. If Seller fails to have the exceptions removed or correct any survey defects, or in the alternative, to obtain the commitment for title insurance specified above as to such exceptions or survey defects within the specified time, Purchaser may terminate this contract or may elect, upon notice to Seller within 10 days after the expiration of the 30-day period, to take title as it then is with the right to deduct from the purchase price liens or encumbrances of a definite or ascertainable amount. If Purchaser does not so elect, this contract shall become null and void without further action of the parties.
3.Rents, premiums under assignable insurance policies, water and other utility charges, fuels, prepaid service contracts, general taxes, accrued interest on mortgage indebtedness, if any, and other similar items shall be adjusted ratably as of the time of closing. The amount of the current general taxes not then ascertainable shall be adjusted on the basis of (a), (b), or (c) below (Strike subparagraphs not applicable):
(a) ___________% of the most recent ascertainable taxes;
(b)The most recent ascertainable taxes and subsequent readjustment thereof pursuant to the terms of reproration letter attached hereto and incorporated herein by reference.
(c)[Other] _________________________________________________________________________________________________
The amount of any general taxes which may accrue by reason of new or additional improvements shall be adjusted as follows:
All prorations are final unless otherwise provided herein. Existing leases and assignable insurance policies, if any, shall then be assigned to Purchaser. Seller shall pay the amount of any stamp tax imposed by State law on the transfer of the title, and shall furnish a completed Real Estate Transfer Declaration signed by the Seller or the Seller's agent in the form required pursuant to the Real Estate Transfer Tax Act of the State of Illinois and shall furnish any declaration signed by the Seller or the Seller's agent or meet other requirements as established by any local ordinance with regard to a transfer or transaction tax; such tax required by local ordinance shall be paid by the party upon whom such ordinance places 'responsibility therefor. If such ordinance does not so place responsibility, the tax shall be paid by the (Purchaser) (Seller). (Strike one.)
4. The provisions of the Uniform Vendor and Purchaser Risk Act of the State of Illinois shall be applicable to this contract.
5.If this contract is terminated without Purchaser's fault, the earnest money shall be returned to the Purchaser, but if the termination is caused by the Purchaser's fault, then upon notice to the Purchaser, the earnest money shall be forfeited to the Seller and applied first to the payment of Seller's expenses and then to payment of broker's commission; the balance, If any, to be retained by the Seller as liquidated damages.
6.At the election of Seller or Purchaser upon notice to the other party not less than 5 days prior to the time of closing, this sale shall be closed through an escrow with Chicago Title and Trust Company, in accordance with the general provisions of the usual form of Deed and Money Escrow Agreement then in use by Chicago Title and Trust Company, with such special provisions inserted in the escrow agreement as may be required to conform with this contract. Upon the creation of such an escrow, anything herein to the contrary notwithstanding, payment of purchase price and delivery of deed shall be made through the escrow and this contract and the earnest money shall be deposited in the escrow. The cost of the escrow shall be divided equally between Seller and Purchaser. (Strike paragraph if inapplicable.)
7.Time is of the essence of this contract.
8.All notices herein required shall be in writing and shall be served on the parties at the addresses following their signatures. The mailing of a notice by registered or certified mail, return receipt requested, shall be sufficient service.
9.Alternative 1:
Seller represents that he is not a "foreign person" as defined in Section 1445 of the Internal Revenue Code and is therefore
exempt from the withholding requirements of said Section. Seller will furnish Purchaser at closing the Exemption Certification set forth in said Section.
Alternative 2:
Purchaser represents that the transaction is exempt from the withholding requirements of Section 1445 of the Internal Revenue Code because Purchaser intends to use the subject real estate as a qualifying residence under said Section and the sales price does not exceed $300,000.
Alternative 3:
With respect to Section 1445 of the Internal Revenue Code, the parties agree as follows:
(Strike two of the three alternatives.)
10.(A) Purchaser and Seller agree that the disclosure requirements of the Illinois Responsible Property Transfer Act (do) (do not) apply to the transfer contemplated by this contract. (If requirements do not apply, strike (B) and (C) below.)
(B) Seller agrees to execute and deliver to Purchaser and each mortgage lender of Purchaser such disclosure documents as may be required by the Illinois Responsible Property Transfer Act.
(C) Purchaser agrees to notify Seller in writing of the name and post office address of each mortgage lender who has issued a commitment to finance the purchase hereunder, or any part thereof; such notice shall be furnished within 10 days after issuance of any such commitment, but in no event less than 40 days prior to delivery of the deed hereunder unless waived by such lender or lenders. Purchaser further agrees to place of record, simultaneously with the deed recorded pursuant to this contract, any disclosure statement furnished to Purchaser pursuant to paragraph 10(B) and, within 30 days after delivery of the deed hereunder, to file a true and correct copy of said disclosure document with the Illinois Environmental Protection Agency.
Filling out the Illinois Realtor Contract form is a critical step for both buyers and sellers in the process of a real estate transaction. This document outlines the terms and conditions of the sale, including the purchase price, property details, and obligations of both parties. To ensure a smooth transaction, every section of this form must be completed accurately. Following a step-by-step guide will help prevent any misunderstandings and legal issues down the line.
Accurately completing each step ensures that the parties involved have a clear understanding of their rights and obligations, preventing potential legal issues. It's essential to review all entries carefully before signing the contract. If there are any uncertainties, consider consulting with a real estate attorney to clarify terms and conditions before finalizing the agreement.
What is the purpose of the Illinois Realtor Contract form?
The Illinois Realtor Contract form is a legal document used for the sale and purchase of real estate in Illinois. Its purpose is to outline the agreement between the buyer (purchaser) and the seller, detailing the terms and conditions of the sale, including the purchase price, description of the property, payment terms, and responsibilities of each party involved.
Who needs to sign the Illinois Realtor Contract form?
The contract must be signed by both the purchaser and the seller to be valid. If the seller is married, their spouse may also need to sign the contract to release homestead rights, if applicable. The final agreement represents a binding commitment by both parties to proceed with the sale under the defined terms.
What are "permitted exceptions" in the context of this contract?
"Permitted exceptions" refer to specified encumbrances, claims, or other matters that are explicitly allowed by the purchaser to remain on the title at the time of purchase. These might include covenants, easements, and other conditions of record. The contract lists these exceptions, and they are not grounds for the purchaser to terminate the agreement. The title commitment shall provide conclusive evidence of good title, subject to these allowed exceptions.
How is earnest money handled according to the contract?
Ernest money is a deposit made by the purchaser to demonstrate the seriousness of their intent to buy the property. According to the contract, this deposit is to be held by a designated party for the mutual benefit of both the purchaser and the seller. It is applied towards the purchase price at closing. Should the contract be terminated without the purchaser's fault, the earnest money is returned; if the purchaser is at fault, the seller may keep the earnest money as outlined in the contract.
What happens if there are issues with the title or survey?
If the title commitment or survey reveals problems that make the title unmarketable or identify survey defects, the seller has a specified amount of time to correct these issues or get title insurance to cover them. If the seller cannot resolve these problems within the allotted time, the purchaser has the option to terminate the contract or proceed with the purchase, potentially adjusting the purchase price to account for these defects.
Can the closing date of the sale be changed?
The closing date, the day when the sale is finalized, and the property changes hands, is established in the contract. However, it can be extended by mutual agreement of both the purchaser and seller or due to specific conditions in the contract becoming operative. This flexibility allows for adjustments due to unforeseen circumstances that may delay closing.
What are the seller's responsibilities regarding disclosures?
The seller must provide certain disclosures related to the property's condition and compliance with various codes and ordinances. This includes providing evidence that there are no uncorrected zoning, building, fire, or health code violations. Additionally, based on the Illinois Responsible Property Transfer Act, the seller may need to provide additional disclosure documents related to environmental and other conditions affecting the property. Compliance with these disclosure requirements helps ensure that the purchaser is fully informed about the property they are buying.
When people fill out the Illinois Realtor Contract form, errors can easily be made. These mistakes may seem minor but can lead to substantial issues down the line. It's important to approach this document with careful attention to detail. Below are 10 common mistakes to avoid:
It's also wise to pay attention to the following smaller yet significant details, which are commonly overlooked but can have a big impact on the transaction:
By avoiding these mistakes, parties can help ensure a smoother, more secure real estate transaction process.
When engaging in real estate transactions in Illinois, particularly when utilizing the Illinois Realtor Contract Form, several complementary documents play crucial roles in ensuring the process is comprehensive, lawful, and informative for all parties involved. Outlined below are four significant documents that often accompany the Illinois Realtor Contract Form, each serving its specific purposes within real estate transactions.
Together, these documents contribute to the due diligence process, supporting and enhancing the information detailed within the Illinois Realtor Contract Form. They ensure clarity, legality, and a smooth transaction process, protecting the interests of all parties involved. Understanding the purpose and importance of each document ensures that buyers and sellers are well-informed and prepared for a successful real estate transaction in Illinois.
The Illinois Realtor Contract form is similar to several other standard real estate transaction documents, each serving unique purposes but sharing commonalities in structure and content. These documents include the Residential Purchase Agreement, the Offer to Purchase Real Estate form, and the Agreement for Sale of Real Estate. Each document outlines terms, conditions, and the process for transferring property ownership, though their usage may vary based on the property type and the specific requirements of the transaction.
The Residential Purchase Agreement is commonly used in the buying and selling of residential properties. Like the Illinois Realtor Contract, it details the agreement between buyer and seller regarding the sale price, earnest money, property description, contingencies, and closing terms. Both forms ensure that the responsibilities of each party are clearly defined and that the title transfer process is outlined comprehensively to protect the interests of both the buyer and seller. However, while the Illinois Realtor Contract is specific to Illinois and often used for commercial or multi-family residential properties, the Residential Purchase Agreement can be customized for use in various jurisdictions and for different types of residential properties.
Similarly, the Offer to Purchase Real Estate form serves as a proposal from a prospective buyer to a seller, indicating their willingness to enter into a real estate transaction under specified conditions. This document resembles the Illinois Realtor Contract in its initial approach to engage in a real estate transaction, containing provisions for the purchase price, earnest money, and property details. The main difference lies in the form's function as an offer that requires acceptance to become binding, whereas the Illinois Realtor Contract is a mutually agreed upon document from the outset.
Lastly, the Agreement for Sale of Real Estate is a contract that finalizes the terms under which the sale of a property will proceed. This document shares similarities with the Illinois Realtor Contract in terms of delineating the obligations of the parties involved, including payment plans, property descriptions, and closing conditions. Both documents are legally binding once signed by both the buyer and seller, providing a secure framework for the real estate transaction. The specific nature of the Agreement for Sale of Real Security may vary depending on state laws and the property type, but its core components reflect the structured approach found in the Illinois Realtor Contract.
Filling out the Illinois Realtor Contract form requires attention to detail to ensure that every part of the transaction is clear and legally binding. Below are some key dos and don'ts to consider when completing this form.
7 Things You Should Do:
7 Things You Shouldn't Do:
Remember, the Illinois Realtor Contract form is a binding legal document. Every effort should be made to ensure its accuracy and completeness to protect your interests and facilitate a smooth real estate transaction.
When it comes to the Illinois Realtor Contract form, several misconceptions can influence both buyers and sellers during the real estate transaction process. Understanding these common false beliefs can help prevent misunderstandings and streamline the purchase or sale of property. Here are four notable misconceptions:
By dispelling these misconceptions, buyers and sellers can better navigate the complexities of the real estate transaction process in Illinois, leading to smoother negotiations and successful property transfers.
When using the Illinois Realtor Contract form for real estate sales, it is important to understand the key points of the form to ensure a smooth and legally sound transaction:
Understanding these key points can help buyers and sellers navigate the complexities of the Illinois Realtor Contract form and ensure a legally compliant and smooth real estate transaction.
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