Illinois Real Estate Contract: Different Types and Key Terms to Include
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What is an Illinois Real Estate Contract?
An Illinois real estate contract is a legally binding document that outlines the terms and conditions of a real estate transaction between a buyer and a seller. It typically includes information like the purchase price, closing date, property address, and any contingencies or conditions that must be met before the sale can be completed.
The contract is usually prepared by a real estate agent or attorney and is reviewed by both the buyer and the seller before it is signed. It is vital that both parties understand the terms of the contract and any potential risks or liabilities before signing.
In Illinois, real estate contracts must comply with state laws and regulations, including the Illinois Residential Real Property Disclosure Act, which requires sellers to disclose any negative conditions or issues with the property that could affect the property value.
Common Illinois Real Estate Contracts
There are two contracts that are regularly used in real estate transactions in Illinois:
- Chicago Association of Realtors Contract . Used by realtors who are members of the Chicago Association of Realtors when selling or purchasing single family homes, townhomes, or shared community associations.
- Multi-Board Realtor Contract . A real estate contract used for any type of residential real estate transaction.
4 Essential Elements of an Illinois Real Estate Contract
Real estate contracts in Illinois must include essential elements to be considered a legal and binding agreement. The four essential elements of an Illinois real estate contract to according to Illinois state laws are:
- The contract must be in writing
- The parties need to show mutual agreement on the terms
- The parties must both be competent and legally allowed to enter a contract
- The contract cannot violate any laws
What Must Be Included in an Illinois Real Estate Contract?
All real estate contracts need to include specific information to be legally enforceable. The required information varies by state, but Illinois real estate contracts should include the following information:
- Parties involved. The contract must identify the buyer and seller by name.
- Property details. The contract must clearly describe the property being sold, including the address and legal description.
- Purchase price. The contract must state the agreed-upon purchase price for the property.
- Terms and conditions. The contract must include any contingencies or conditions that must be met before the sale can be completed, such as the buyer obtaining financing or the property passing inspection. The contract should also include the closing date and any other terms of the sale.
- Earnest money deposit. The contract must state the amount of the earnest money deposit required by the seller and should be accompanied by the deposit check.
- Disclosure. The contract must include all the disclosures required by the state of Illinois, including lead-based paint, radon gas, and any other material facts about the property that may affect its value.
- Signatures. The contract must be signed by both the buyer and the seller.
What is Attorney Review in Real Estate in Illinois?
Attorney review is a clause added to real estate contracts in Illinois that gives both parties the option of modifying or terminating a real estate contract without legal repercussions. The attorney review period is usually five business days and begins on the day that the parties sign the real estate contract.
During this time, the party’s attorneys will review the contract and decide whether to approve, reject, or negotiate terms of the contract. If there are issues with the contract, either party can choose to terminate the contract. This clause gives both parties an extra layer of protection because it provides time for a real estate lawyer to ensure that the contract is legal, fair, and in their party’s best interest.
Frequently Asked Questions
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Meet some of our Illinois Real Estate Contract Lawyers
Brett S.
I attended the University of Illinois- College of Law on a full merit scholarship. While in law school, I was a 711 Attorney at the Lake County State's Attorney's Office, specializing in traffic and misdemeanor cases. After graduation, I served as in-house counsel for one of the largest insurance companies in the world, managing thousands of cases from initial intake to trial. Upon leaving this position, I accepted a role as Legal Counsel to the Illinois Senate Minority Leader. There, I advised Senators on legislative matters, labor and employment law, and complex constitutional questions. After leaving public service, I accepted a role at a mid-size Chicago-based law firm, where I practice insurance defense and litigation. In addition to this, I also serve as outside general counsel to a food brokerage business, where I handle all of their labor and employment matters.
"Prompt and delivered project on time even with short notice."
Frank V.
Navy veteran with 15 years experience practicing law in Chicago.
"Frank was perfect! Super quick response time, highly recommend."
July 26, 2023
Charles M.
Mr. McElvenny has extensive experience handling and developing strategy for complex commercial and real estate cases. He’s drafted hundreds of complaints ranging from simple breaches of contract to complex commercial claims including breach of fiduciary duty, constructive trusts and misappropriation of trade secrets. He has an excellent record in trial, arbitration and mediation. He also has significant experience in motion practice in both state and federal court. Through his work in corporate law, Mr. McElvenny has developed considerable experience with Limited Liability Company member disputes and general corporate governance. He’s drafted a number of industry-specific documents such as Operating Agreements (for Limited Liability Companies), commercial leases, settlement agreements and employment contracts. Mr. McElvenny has also represented criminal defendants in felony matters and assisted in the defense of civil matters arising from alleged SEC violations. He has represented individuals appearing before the Illinois Department of Professional Regulation as a result of SEC proceedings. After graduating with a B.A. in Philosophy, Mr. McElvenny proceeded from Loyola University-Chicago to DePaul University College of Law, receiving his JD from that institution in 2002. In 2010, he earned his Master’s of Science in Accounting from Loyola University-Chicago’s Graduate School of Business. Mr. McElvenny was selected to Illinois’ Super Lawyers Rising Stars in 2010, 2012 and 2013.
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Timothy J.
Financial Services, Business, Corporate, Personal Injury, and Healthcare. I've represented fortune 100 companies and defended individuals in personal debt litigation. Wide breadth of experience, ready to assist.
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Dennis W.
2008 - Present: Sole Practitioner – Dennis W. Winkler, P.C. Practice primarily in finance and business transactions, as well as commercial real estate transactions. Represent developers, investors, lenders, and businesses, in such matters as: corporate entity selection, drafting and negotiating complex asset purchase agreements, corporate mergers and sales, stock purchase agreements, and various other business contracts for closely related businesses. Involved in a variety of real estate developments, multi-family apartment buildings, construction and acquisition financing, commercial leasing, sophisticated workout transactions, joint ventures, and tax-deferred exchanges. Advise on tax and other savings incentives available to business owners and real estate owners in Illinois. Advise companies involved in related real estate activities such as sales, leasing, property management, brokerage, and construction. Tax experience that includes the representation of taxpayers in State and Federal controversies including: sales/excess tax disputes and responsible parties’ tax assessment protest. Additionally, Dennis has experience in the protest of real estate taxes of commercial and multi-family real estate. As a legal and business advisor, Dennis is committed to helping clients find, develop, and close deals that further their business objectives. Dennis regularly advises entrepreneurs and closely held businesses on matters incidental to their day-to-day business operations as well as their capital raising and start-up needs, corporate structure, private equity raises, and operating agreements. Much like general counsel, Dennis’s breadth of experience allows him to not only provide strategic planning and routine business transactional support to companies, but he also regularly advises on a number of unique issues facing companies by spotting issues and engaging specialists when needed, such as intellectual property, environmental, and bankruptcy counsel. As such, Dennis has been actively involved in sales and acquisitions of manufacturing companies, trucking companies, and logistics companies.
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Ronald P.
Senior experienced contracts/transactions attorney in the Software Technology space. Also very versed in general corporate legal matters relating to business operations.
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Real Estate
Real Estate Contract
Illinois
what is better to buy land or rent for construction in US?
we are a construction company from Ukraine, we are planning to build a cottage town in the USA
T. Phillip B.
I suppose it doesn't matter if you have the lease giving you permission and the lease is long enough to justify the building expense when you won't own it. But I'd buy the land so you could eventually sell the property with the building on it.
Real Estate
Real Estate Contract
Georgia
WHAT ARE YOUR FEES TO PERFORM QUIT CLAIM DEED COMPLETE BUTTS COUNTY GEORGIA 30233
SON AND EX
Meghan T.
Hi. The cost for my practice to prepare a Quit Claim Deed is $99. The Cost for me to handle the closing is $250 plus recording fees. These costs apply for any county within the state of Georgia. Let me know if you have any more questions. Meghan K Thomas
Real Estate
Real Estate Contract
Georgia
How many years does a quick claim become effective?s
Number of years for quick claim to be effect ive
Meghan T.
A quit claim deed is effective upon execution so long as the deed is dated as of the date of signature. Execution means that the deed is signed, in front of a witness and a notary. The witness and notary must also sign the deed. Finally, the deed must be recorded. This means that the deed must be submitted to the Superior Court recording office of the County in which the property sits. Please let me know if you have any questions. Thanks, Meghan K Thomas
Real Estate
Real Estate Contract
New York
Can you purchase or refinance under a land contract?
I’ve been living here for 2 years. Currently have been working with my credit union and they are having a terrible time trying to understand the legalities of my land contract first off, and secondly they just don’t seem to know what they are doing. It’s been over 8 months, 4 different loan officers and I’m once again waiting for someone else to help finish this thing out. It’s only $60,000 with a $120,000 appraisal. So, as of now I am stuck paying 2.5x monthly under this land contract than I was promised would be an easy mortgage process. So any guidance in the right direction would be very helpful. It’s a New York home. 20 yr fixed, no balloon, with a (brace yourself) 12% apr. HELP ME PLEASE! One month I’m being told to authorize a credit check for a first time homebuyer grant method of mortgaging this property. The next it’s authorizing it for a refinance. I do have earnest money deposits for over $3,000 and another $3000 paid towards principal under this land contract also.
Jane C.
I suggest you speak with a New York real estate attorney. That attorney needs to review the documents related to the transaction.
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