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The Illinois Realtor Contract form is a critical document in real estate transactions within the state, providing a clear framework for the sale of property. This form outlines key responsibilities and rights of both the Purchaser and Seller, establishing the terms of the sale including the purchase price, property identification, and closing procedures. It specifies what the Seller must deliver, such as a current plat of survey and a title commitment for an owner's title insurance policy. The contract details earnest money requirements, outlining how much the Purchaser must initially pay and how the remaining balance will be settled at closing. It also addresses potential encumbrances on the property, ensuring that the Purchaser understands any existing obligations like mortgages or liens. Additionally, important provisions regarding closing timelines, adjustments of taxes, and responsibilities for transaction-related taxes are included. Lastly, the contract ensures compliance with state-specific regulations, such as the Illinois Responsible Property Transfer Act, ensuring all parties are aware of their obligations. Overall, the Illinois Realtor Contract form serves as a comprehensive guide, protecting both buyers and sellers while navigating the complexities of real estate transactions.

Illinois Realtor Contract Example

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.

File Breakdown

Fact Name Description
Governing Laws The Illinois Realtor Contract form is governed by the real estate laws of the State of Illinois.
Earnest Money Purchasers are required to pay earnest money as a demonstration of their commitment to the purchase.
Closing Date The closing date is typically set to occur on a specified date, which may be extended under certain conditions.
Property Description The contract necessitates a precise description of the property being sold, including its dimensions.
Title Commitment Sellers must provide a title commitment, which shows the status of the property title during the transaction.
Broker's Commission The seller is responsible for the payment of the broker's commission as outlined in the listing contract.
Disclosure Requirements The Illinois Responsible Property Transfer Act may impose specific disclosure requirements upon sellers.
Survey Requirement The seller may be required to furnish a current plat of survey, ensuring the property’s dimensions comply with Illinois Land Survey Standards.

Guide to Using Illinois Realtor Contract

Completing the Illinois Realtor Contract form is essential for facilitating the sale of real estate in Illinois. Following these steps will ensure that the form is filled out correctly and comprehensively, paving the way for a smooth transaction.

  1. Purchaser Information: Fill in the name of the Purchaser and the purchase price in the designated space at the top of the form.
  2. Property Description: Provide the specific county in Illinois where the property is located, along with its common name and approximate lot dimensions.
  3. Seller Agreement: Indicate the Seller's name and confirm their agreement to sell the property, including any necessary terms and conditions.
  4. Earnest Money: Record the amount of earnest money that the Purchaser has paid and submit details of the payment plan for the remaining balance of the purchase price.
  5. Mortgage Information: Determine whether the Purchaser agrees to assume any existing mortgage or trust deed, and note down the details accordingly.
  6. Closing Date: Specify the expected closing date on the line provided and mention the location where the closing will take place.
  7. Broker's Commission: Clearly state the broker's name and their commission amount if applicable.
  8. Property Survey: Confirm if a plat of survey will be provided and by whom, ensuring compliance with the Illinois Land Survey Standards.
  9. Condition regarding Notices: Acknowledge the Seller's disclosure regarding potential zoning or code violations.
  10. Contract Copies: Indicate how many days the Seller has to deliver a duplicate original of the contract to the Purchaser.
  11. Conditions and Stipulations: Thoroughly review and ensure understanding of all conditions and stipulations outlined in the contract.
  12. Signatures: Collect signatures from both the Purchaser and Seller, along with their addresses to finalize the contract.

After these steps are complete, carefully review the entire form to confirm all information is accurate. Double-check all financial figures and ensure that the contract reflects your agreement. It's important to keep a copy for your records and deliver a signed version to all relevant parties.

Get Answers on Illinois Realtor Contract

  1. What is the Illinois Realtor Contract form?

    The Illinois Realtor Contract form is a legal document used in real estate transactions to formalize the sale of property in Illinois. It outlines the terms and conditions agreed upon by the seller and the purchaser regarding the sale of real estate, including price, payment details, and descriptions of the property involved.

  2. Who are the parties involved in the contract?

    The parties involved in the Illinois Realtor Contract are the seller and the purchaser. The seller is the person or entity selling the property, while the purchaser is the individual or entity buying it. Accurate identification of the parties, including their addresses, is crucial for the contract's validity.

  3. What does earnest money mean in the context of this contract?

    Earnest money is a deposit made by the purchaser as a show of good faith when entering into a purchase agreement. It serves to secure the buyer's commitment to the transaction. The amount paid as earnest money will be applied to the overall purchase price at closing. If the transaction fails due to the purchaser's fault, the seller may retain the earnest money as compensation.

  4. What types of property can be purchased using this contract?

    This contract form is generally used for the sale of multi-family structures with five or more units, as well as commercial or industrial properties. The specifics of the property, such as dimensions and address, are included in the contract to clearly define what is being sold.

  5. What are the seller's obligations under this contract?

    The seller has several obligations which include:

    • Conveying good title of the property to the purchaser under acceptable conditions.
    • Providing a current plat of survey of the property if required.
    • Delivering necessary documents, including a title commitment and an affidavit of title prior to closing.
    • Correcting any title defects or survey issues that arise within a specified timeframe.
  6. What happens if the property has title defects?

    If any title defects or survey issues are discovered, the seller has a specific period to resolve these problems. Should the seller fail to correct them, the purchaser can choose to either terminate the contract or accept the title as is, potentially adjusting the purchase price accordingly.

  7. Can the closing date be changed?

    The time of closing is specified in the contract, but it can be extended if necessary. If there are delays in meeting the requirements outlined in the contract, either party may agree to change the date of closing. Open communication is crucial to navigate any changes effectively.

  8. What is included in the adjustments at closing?

    At closing, several financial adjustments occur. These include:

    • Adjustments for rents, utility charges, and prepaid services.
    • Pro-rata distribution of current taxes.
    • Handling of any outstanding assessments related to the property.

    These adjustments ensure that both parties are fairly compensated for their portion of costs incurred up to that point.

  9. What can cause the contract to become null and void?

    The contract may become null and void if certain conditions are not met, such as failure to deliver a signed duplicate original to the purchaser within a specified timeframe. If this happens, the purchaser is generally entitled to a refund of their earnest money.

  10. Under certain conditions outlined in the contract, sellers must indicate whether they are considered "foreign persons," which affects tax withholding at closing. Buyers must also certify if they meet exemption requirements under applicable tax laws. These declarations are crucial to comply with the Internal Revenue Code and avoid unnecessary tax implications.

Common mistakes

When completing the Illinois Realtor Contract form, individuals often make several common mistakes that can impact the validity and functionality of the agreement. First, failure to properly fill in personal and property details can create confusion and lead to potential disputes. Missing information regarding the buyer and seller, or incorrectly identifying the property, can result in legal complications down the line.

Second, many overlook the importance of clear pricing and payment terms. It's essential to specify the purchase price and the structure of payments, including earnest money and other relevant fees. Incomplete or vague payment descriptions can lead to misunderstandings between the parties, affecting the closing process.

Another frequent error lies in failing to address the specific conditions and stipulations regarding the property. Individuals often disregard or improperly strike language related to covenants, easements, and taxes. Such oversights can result in unexpected obligations or liabilities for the buyer post-sale.

Fourth, parties may neglect to secure a proper survey of the property. As stipulated in the contract, the seller must provide a survey that meets Illinois Land Survey Standards. Without this document, the buyer risks acquiring a property with unaddressed boundary or zoning issues.

Additionally, not fulfilling disclosure requirements regarding zoning and property violations is a common mistake. The seller is obligated to inform the buyer of any outstanding violations. If this information is omitted or inaccurately reported, it could lead to costly repercussions for the buyer.

Lastly, failing to adhere to timelines stipulated in the contract can jeopardize the transaction. The closing date, delivery of documents, and response times for necessary inspections or approvals must be strictly followed. Ignoring these timelines can cause the contract to become null and void, leaving the buyer or seller without recourse.

Documents used along the form

When engaging in real estate transactions in Illinois, multiple documents complement the Illinois Realtor Contract form. These documents provide essential information and structure to the agreement between the seller and purchaser. Below are several key forms commonly used in conjunction with this contract.

  • Earnest Money Agreement: This document outlines the specifics of the earnest money deposit made by the buyer. It details how the funds will be handled and under what circumstances they may be refunded or forfeited.
  • Title Commitment: A title commitment is issued by a title company and guarantees that the title to the property is clear of any defects or liens. It is essential for ensuring the buyer receives a clean title at closing.
  • Plat of Survey: This survey illustrates the property boundaries and structures. It is crucial for confirming legal descriptions and identifying any encroachments or easements affecting the property.
  • Real Estate Transfer Declaration: Required by law, this form provides information about the property's sale price and other relevant details to local tax authorities as part of the transfer process.
  • Disclosure Documents: These documents inform the buyer of any known issues with the property, such as lead paint hazards or zoning violations. They ensure compliance with the Illinois Responsible Property Transfer Act.
  • Broker Listing Agreement: This contract between the seller and the broker details the broker's duties and the commission structure, establishing clear expectations for both parties.
  • Closing Statement: This statement presents a detailed account of all financial transactions involved in the closing process, including fees, commissions, and adjustments. It serves as a final summary for both the buyer and seller.
  • Escrow Instructions: Should the transaction involve an escrow, these instructions detail how funds and documents will be handled, ensuring a smooth closing process.

Understanding these documents is vital for both buyers and sellers. Each plays a significant role in the transaction, safeguarding the interests of all parties involved and ensuring a legally compliant sale.

Similar forms

  • Residential Purchase Agreement: This document is similar to the Illinois Realtor Contract because it outlines the terms and conditions for the sale of a home, detailing buyer and seller obligations, purchase price, and closing processes. Both documents typically include earnest money deposits and provisions for title insurance.
  • Commercial Real Estate Purchase Agreement: Like the Illinois Realtor Contract, a commercial purchase agreement governs the sale of commercial properties. It specifies property details, pricing, and negotiations around financing and closing details, similar to the responsibilities outlined for buyers and sellers in the Illinois format.
  • Listing Agreement: This document is akin to the Illinois Realtor Contract in that it involves both a buyer's and seller's rights and responsibilities. It confirms the terms under which a real estate agent represents the seller, establishing the agent's commission and marketing efforts, paralleling clauses related to commissions found in the Illinois contract.
  • Lease Agreement: A lease agreement shares similarities with the Illinois Realtor Contract in that it lays out the terms of property occupancy, including payment amounts and responsibilities for maintenance. Both documents express the importance of clear obligations and rights for the involved parties.
  • Options to Purchase Agreement: This document is comparable to the Illinois Realtor Contract, as it includes terms under which a buyer can purchase property at a later date. Both agreements necessitate specific terms regarding pricing, including earnest money, and outline the process for eventual transfer of title.

Dos and Don'ts

  • Do carefully read the entire contract before filling it out to ensure complete understanding.
  • Don't leave any fields blank; provide all required information to avoid delays.
  • Do double-check all numbers, such as the purchase price and earnest money amount, for accuracy.
  • Don't use ambiguous language; be specific about property descriptions and terms.
  • Do sign and date the contract in the designated areas to validate it.
  • Don't forget to include any necessary attachments or schedules mentioned in the contract.
  • Do seek clarification on any sections that are unclear before submission.
  • Don't ignore deadlines, including those for earnest money and document delivery.
  • Do retain a copy of the completed contract for your records and reference.

Misconceptions

1. All contracts are the same. Many individuals believe that all real estate contracts in Illinois follow a standard template. In reality, the Illinois Realtor Contract form can vary significantly based on specific sale conditions, custom provisions, and property types.

2. Earning money is not important. Some may think that the earnest money deposit does not hold much significance. However, this deposit shows the buyer's commitment and is critical in ensuring that both parties are serious about the transaction.

3. Sellers do not have obligations. There's a misconception that sellers have no responsibilities in the process. In fact, sellers must provide necessary documents, such as a title commitment and a current survey, among other obligations, as outlined in the contract.

4. The closing date is flexible. Some view the closing date as a mere suggestion. This is inaccurate; time is often of the essence in contracts, which means that the closing date needs to be adhered to unless mutually agreed otherwise.

5. Title issues don’t affect sales. Buyers often assume that title issues are minor. However, any title defects can seriously jeopardize the sale, as they may create obstacles that prevent a clear transfer of ownership.

6. Real property transfers are automatic. It's a common misconception that upon transaction completion, ownership automatically transfers. The contract mandates specific steps and documentation to finalize this transfer properly.

7. The contract only protects one party. Some individuals think that the Illinois Realtor Contract primarily safeguards sellers. In truth, the contract is designed to protect the interests of both parties, outlining responsibilities and remedies for breaches to maintain balance.

Key takeaways

When filling out and using the Illinois Realtor Contract form, it is essential to focus on several key aspects to ensure a smooth transaction.

  • Accurate Information: Ensure that all names, addresses, and property descriptions are correctly filled out. This can prevent misunderstandings and legal complications later.
  • Earnest Money: Specify the amount of earnest money clearly. This demonstrates the buyer's serious intent and secures the transaction.
  • Closing Date: Establish a clear closing date, along with any contingencies that could extend this date. This helps both parties prepare for the transfer of ownership.
  • Survey and Title Commitment: The seller is responsible for providing a current property survey and title commitment. This ensures that the buyer understands any encumbrances or issues with the title.
  • Broker's Commission: Clarify the commission structure for agents involved in the transaction. Including this detail avoids disputes regarding payment after the sale.
  • Conditions and Stipulations: Familiarize yourself with the conditions attached to the contract. These stipulations outline the responsibilities of both the buyer and seller.
  • Understanding of Exemptions: Disclose accurately whether either party is exempt from withholding requirements as specified under Section 1445 of the Internal Revenue Code. This prevents future taxation issues.

By paying close attention to these points, both sellers and buyers will enhance the likelihood of a transparent and successful real estate transaction in Illinois.