Fill a Valid Illinois Realtor Contract Template Open Editor

Fill a Valid Illinois Realtor Contract Template

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.

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Contents

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.

Illinois Realtor Contract Sample

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:

Purchaser:Address:

Seller: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.

Form Details

Fact Detail
1. Form Usage This form is normally used for the sale of property improved with multi-family structures of five or more units or of commercial or industrial properties.
2. Title and Insurance The Seller agrees to convey title by a recordable deed, with release of homestead rights, if any, and to provide an American Land Title Association loan policy from the Chicago Title Insurance Company.
3. Earnest Money Purchaser has paid a specified amount as earnest money which will be applied to the purchase price.
4. Closing Time The time of closing is specified in the contract, with provisions for extension under certain conditions.
5. Broker's Commission Seller agrees to pay a broker's commission as set forth in the broker's listing contract or as otherwise specified.
6. Seller's Warranty The Seller warrants no received notices of zoning, building, fire, or health code violations that have not been corrected.
7. Survey and Title Commitment Seller agrees to furnish a current plat of survey and a title commitment for an owner's title insurance policy, showing title in the seller subject only to specified exceptions.
8. Prorations Rents, taxes, utilities, and other similar items will be prorated as of the time of closing.
9. Escrow Closing At the election of Seller or Purchaser, the sale may be closed through an escrow with Chicago Title and Trust Company, with costs divided equally.
10. Governing Laws The contract is governed by the laws of the State of Illinois, including the Uniform Vendor and Purchaser Risk Act and the Illinois Responsible Property Transfer Act.

Illinois Realtor Contract - Usage Guidelines

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.

  1. Start by entering the full name(s) of the purchaser(s) at the top of the contract. Include all individuals or entities that will hold title to the property.
  2. Fill in the purchase price in the space provided. Ensure the amount is written in both words and numbers for clarity.
  3. Identify the county and provide a detailed description of the property being sold, including its common address and approximate lot dimensions. If applicable, list all personal property that is included in the sale.
  4. Enter the seller's name(s) and confirm their agreement to sell the property at the specified price and conditions, including the type of deed to be provided.
  5. Detail any existing property conditions, such as covenants, easements, and leases, that will not be altered by the sale.
  6. Specify the earnest money amount paid by the purchaser, and how it will be applied towards the purchase price. If applicable, outline the terms for the balance of payment, including any financing arrangements.
  7. State the agreed-upon closing date and location where the transaction will be finalized.
  8. Indicate the name of the broker and the agreed commission amount, if a broker is involved in the transaction.
  9. List the entity that will hold the earnest money until closing.
  10. Confirm that the seller has received no notices of zoning, building, fire, or health code violations that have not been corrected.
  11. Ensure that the seller and purchaser, along with their respective addresses, sign and date the bottom of the contract.
  12. Review the Conditions and Stipulations section carefully. This includes obligations for delivering a current plat of survey, title commitment, and adjusting various fees and taxes at closing.
  13. If applicable, select the statements concerning real estate taxes, alternative resolutions for unpermitted exceptions or survey defects, and the handling of any transfer taxes.
  14. Finally, check the appropriate boxes related to the requirements of the Illinois Responsible Property Transfer Act and the Internal Revenue Code as they apply to the transaction.

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.

Get Answers on Illinois Realtor Contract

  1. What is the purpose of the Illinois Realtor Contract form?

  2. 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.

  3. Who needs to sign the Illinois Realtor Contract form?

  4. 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.

  5. What are "permitted exceptions" in the context of this contract?

  6. "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.

  7. How is earnest money handled according to the contract?

  8. 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.

  9. What happens if there are issues with the title or survey?

  10. 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.

  11. Can the closing date of the sale be changed?

  12. 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.

  13. What are the seller's responsibilities regarding disclosures?

  14. 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.

Common mistakes

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:

  1. Incorrect information about the parties: It's crucial to accurately list the names and addresses of the buyer(s) and seller(s). Any inaccuracies here can void the contract.
  2. Not specifying the purchase price correctly: This figure must be clearly stated, without any ambiguity, to ensure that both parties are in agreement on the fundamental aspect of the sale.
  3. Leaving blanks unfilled: Any blank spaces can lead to misunderstandings or manipulations of the contract terms after signing. It's essential to fill in every section.
  4. Incorrectly describing the property: The legal description of the property, including the address and any relevant lot dimensions, must match public records precisely.
  5. Misunderstanding the financial terms: The terms regarding the earnest money deposit, balance of the purchase price, and any assumed mortgage should be clearly understood and correctly filled in.
  6. Overlooking contingencies: Ensure that any contingencies, such as financing or inspection results, are explicitly mentioned and clearly worded.
  7. Forgetting about the closing date and location: The contract should state when and where the closing will occur. This oversight can lead to scheduling conflicts.
  8. Failing to address title and survey issues: The seller is typically required to provide a title and survey that meet specific standards. Overlooking these requirements can complicate the closing process.
  9. Ignoring tax and proration agreements: The contract should address how taxes are prorated and who is responsible for paying any transfer taxes. Misunderstandings in this area can lead to unexpected expenses at closing.
  10. Not considering the legal requirements for foreign sellers or buyers: For transactions involving foreign parties, specific IRS regulations come into play. Failing to comply can have serious legal and financial implications.

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:

  • Ensuring that any attached schedules (like Schedule A or B mentioned in the contract) are completed and attached as required.
  • Accurately filling in the dates and percentages mentioned throughout the contract, especially in reference to tax prorations or other calculations.
  • Understanding the implications of each checkbox or option selected in the document. Each choice can significantly affect the obligations and rights of both parties.

By avoiding these mistakes, parties can help ensure a smoother, more secure real estate transaction process.

Documents used along the form

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.

  • Title Insurance Commitment: This document is a promise from a title company to issue a title insurance policy after closing. The commitment outlines the terms under which the policy will be issued, as well as any exceptions or exclusions to coverage. It’s fundamental for both buyers and sellers, as it reveals any potential issues with the property’s title that could affect ownership rights.
  • Residential Real Property Disclosure Report: Illinois law requires sellers to complete this form, which discloses information about the property's condition, including any known flaws or defects. It ensures that the seller provides the buyer with vital information about the property’s physical condition, enhancing transparency in the transaction.
  • Plat of Survey: This document provides a detailed map of the property, including its boundaries, any improvements made, and any encroachments. It's crucial for understanding the physical aspects of the property being purchased. A current plat of survey is often required to finalize the sale, confirming that the property dimensions and legal description match the title and contractual agreements.
  • Mortgage Pre-Approval Letter: While not always directly attached to the Illinois Realtor Contract, a mortgage pre-approval letter from a lender indicates that a buyer has been preliminarily approved for a loan up to a certain amount. It’s a critical document in real estate transactions involving financing, providing assurance to sellers that the buyers have the financial backing to complete the purchase.

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.

Similar forms

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.

Dos and Don'ts

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:

  1. Ensure all parties' full names are accurately listed, reflecting their legal names as purchasers and sellers.
  2. Confirm the sale price and earnest money amount are correct and clearly stated. This prevents any confusion about financial terms.
  3. Clearly specify the property's legal description and address, including county, to avoid misidentification.
  4. Review and understand all conditions and stipulations, making sure they align with your agreement and expectations.
  5. Confirm that all applicable sections regarding financing, including mortgages or trust deeds, accurately reflect the agreement between the parties.
  6. Ensure the closing date and location are agreed upon and feasible for all parties involved.
  7. Sign and date the contract in all designated spots to validate the agreement legally.

7 Things You Shouldn't Do:

  1. Leave any blanks unfilled. If a section does not apply, clearly mark it as N/A to demonstrate it was not overlooked.
  2. Assume standard terms apply without verifying. Custom terms may require additional documentation or schedules attached.
  3. Forget to attach required schedules, such as the plat of survey (Schedule A) or the financing instruments (Schedule B).
  4. Ignore local, state, or federal requirements for disclosures, such as zoning or environmental conditions affecting the property.
  5. Overlook the broker's commission details, which must be precisely documented to prevent disputes later.
  6. Fail to review the tax proration agreements, which can significantly impact the final amount owed at closing.
  7. Rush through reviewing the contract without consulting a real estate attorney if there are any uncertainties or unique conditions.

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.

Misconceptions

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:

  • The earnest money is non-refundable in all situations. Many people mistakenly believe that once the earnest money is deposited, it cannot be retrieved under any circumstances. However, the contract outlines specific conditions under which earnest money may be refunded, such as if the seller fails to correct title issues or if the property does not meet certain agreed-upon conditions by closing.
  • Verbal agreements are enforceable. Another common misconception is that verbal agreements related to the real estate sale are binding. In reality, the Illinois Realtor Contract form requires all agreements and modifications to be in writing and signed by both parties to be enforceable. This requirement ensures clarity and protects both parties from misunderstandings.
  • All attached fixtures and personal property are included in the sale. Buyers often assume that all fixtures and personal property present during a showing will be included in the sale. However, the contract specifically lists the personal property and fixtures that are to be included. Anything not explicitly mentioned may not be part of the sale, highlighting the importance of carefully reviewing these details in the contract.
  • Sellers must make all repairs noted during the inspection. Many believe that sellers are obligated to make all repairs identified during a home inspection. In reality, the contract may allow for negotiation regarding which repairs will be made by the seller, if any. Some sales may proceed with the understanding that the property is being sold "as-is," with the buyer assuming responsibility for any necessary repairs.

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.

Key takeaways

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:

  • Both the buyer and seller must clearly identify themselves and agree on the sale price and terms as outlined at the beginning of the contract. This ensures that both parties are on the same page regarding the basic details of the transaction.
  • The property must be accurately described, including its location, common address, and approximate dimensions. This helps avoid any confusion about what property is being sold.
  • Seller's obligations include delivering a title via a recordable deed, subject to listed conditions such as covenants, easements, and taxes. This clause outlines the legal conditions under which the property is sold.
  • The buyer must provide earnest money as a show of good faith, which will be applied to the purchase price. This is a standard practice in real estate transactions to secure the agreement.
  • Financing terms need to be explicitly stated, including any assumption of existing mortgages or creation of new ones. This section provides clarity on how the buyer intends to finance the property purchase.
  • A current plat of survey must be furnished by the seller. This document verifies the property's boundaries and legal description.
  • The time of closing is specified to establish a clear deadline for completing the transaction. It allows both parties to prepare for the transfer of ownership.
  • The seller is responsible for disclosing any known zoning or code violations that have not been corrected. This transparency is crucial for avoiding disputes post-sale.
  • Return of earnest money is covered in case the contract is terminated. Depending on who is at fault, earnest money may be returned to the buyer or retained by the seller as outlined in the contract.
  • Title and survey issues must be addressed by the seller within a specified time frame, ensuring the buyer receives a marketable title free of unpermitted exceptions or defects.
  • Adjustments at closing for taxes, utilities, rents, etc., are clearly outlined, indicating that these financial obligations will be prorated between the buyer and seller.
  • The contract emphasizes that time is of the essence, underlining the importance of adhering to the agreed timelines for the fulfillment of contractual obligations.
  • Finally, the contract includes provisions for compliance with federal and state tax laws related to real estate transactions, including specific references to the Internal Revenue Code and the Illinois Responsible Property Transfer Act, ensuring that both parties are aware of their legal obligations.

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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