Effective October 3, 2015, there are new rules for the residential real estate closing procedure. One rule requires all forms to be ready three days prior to closing. It is recommendied you actually get everything ready seven days prior to closing, so when you go into the three-day period, you don’t have to make any changes. Because making changes as the clock winds down comes with a cumbersome set of hurdles. What this means is, you and the other settlement service providers, including the lender and title agent, are required to get everything completed earlier. The buyers and sellers have to be cooperative as well, because if last-minute changes are made, a new three-day waiting period kicks in, at least in some cases
Marder and Seidler have been representing sellers and buyers of real estate, both residential and commercial, since opening their practice in 1978.
All real estate in Illinois must be sold pursuant to a real estate contract. It is always advisable to have the contract reviewed by an attorney at the inception of the transaction whether you are buyer or seller. The real estate contract controls all aspects of the sale.
After the contract is approved and accepted, the attorneys will monitor the steps leading up to the closing. Usually, the seller’s attorney will order the title insurance policy which insures the title which the seller is giving the buyer. The seller’s attorney will also order a survey, if one is required. For the closing, the seller’s attorney will prepare all the documents necessary for the transfer of the title. The buyer’s attorney will monitor the financing dead line dates, and request extensions from the seller if necessary, and review the title report prepared by the seller. At the closing, the buyer’s attorney will review all the documents from the seller and the mortgage company.
In a commercial real estate transaction, the lawyers for both sides may need to take additional steps depending on the type of real estate being transferred.
The following are some simple definitions of common terms you may encounter in the course of a real estate transaction:
Purchase price: The total price agreed upon by the parties for the sale of the property.
Earnest money: The amount of money given by the purchaser to the seller, with the contract, to show good faith on the part of the buyer. The money is held by a third party until the closing and is credited towards the total purchase price.
Down payment: The total amount of money the purchaser actually pays out of his/her own funds towards the purchase price.
Mortgage: A loan taken by the purchaser from a third party for the balance of the purchaseprice owed by the buyer after the down payment.
Title Insurance: A policy of insurance purchased by the seller to insure that good title is passed to the buyer. The buyer will purchase a title policy for the mortgage company insuring the company’s interest in the property.
Survey: A plat of the property drawn by an independent surveyor showing the lot, placement of the building on the lot and any easements, encroachments or building lines affecting the property. Surveys are usually not required for condominiums.
Easement: A legal right given to a third party allowing the party to come onto, cross over, or use part of the land. The most common easements are for utilities.
Encroachment: Coming onto the land of another without the owner’s permission. Depending on the encroachment, it may or may not affect the seller’s or buyer’s rights.
Building line: A line established by ordinance or deeds beyond which a person cannot build on the land. The most common building line is a set back of a certain amount of feet from the street fronting the property.
If you have any questions regarding a real estate transaction in which you are now involved, or need representation, please contact Marder and Seidler at 847-985-6767. In practice since 1978. We are confident that we can make your selling or buying experience as smooth and pleasant as possible.
Visit our website at www.marderseidlerlaw.com