Top Five Provisions to check before signing a Real Estate Contract!!!

Top Five Provisions to check before signing a Real Estate Contract!!!

When the time comes for you to sell your home it may seem like a very daunting process. If you are using a realtor, he or she should have the contract properly filled out before you sign anything (if you are not using a realtor, I can make sure the contract is filled out correctly for you). However, the contract is a 13 page document that you have never seen before and with which you are not familiar. What should you check before signing it? Below are the top five provisions you should review before signing your real estate contract: FIVE PROVISIONS TO CHECK BEFORE SIGNING A CONTRACT Purchase price Personal property to be transferred Real estate tax proration Plat of survey inspections Closing cost credits, if any If you review those five specific provisions and all five of them seem correct, you are safe to go ahead and sign the contract. If the seller accepts it by signing it, forward the fully signed contract to your real estate attorney as quickly as possible. There is a short time period during which your attorney can propose changes to any of the provisions that may be incorrect in the contract. This is called the attorney review period. Don’t worry if you feel this is too daunting a process to handle yourself, let us become the law firm that you know, like, and trust by handling it for you. Your time is just as important as mine, that is why all meetings are by appointment only at either one of my convenient office locations: 200 West Main Street, St. Charles, Illinois...
What is the attorney review period for a real estate transaction?

What is the attorney review period for a real estate transaction?

When you are buying real estate you have to sign a contract. Once the contract is signed by the seller time becomes of the essence. People believe that once you sign a real estate contract, everything in the contract is final. That is not true. Although I tell my clients to let me know before they sign a contact, the fact of the matter is, once you sign a real estate contract an attorney has five business days for a “review period” and to propose modifications. During the review period the attorney reviews the contract, makes sure all the appropriate signatures and initials are in the proper places, and verifies the contract states what was intended. If the contract does not state what you wanted, it may be cancelled. Also, during this time period, you (the buyer) should get an inspection on the real estate. Once we have the inspection report, we will review the inspection and use that report to ask the seller to fix any items that are covered. If you are unable to get an inspector out within five days, I am able to ask for an extension of the review period. As long as you have something scheduled, asking for an extension should not be a problem. In summary, once you sign a real estate contract you still have time to change the contract if you are within the attorney review period. When considering whether to sign a contract, please get a copy over to my office as soon as possible....
Can I get my earnest money back if I cancel my real estate contract?

Can I get my earnest money back if I cancel my real estate contract?

An earnest money deposit is a money deposit put down by the buyer in a real estate transaction that shows the seller the buyer is serious about purchasing the property. When a buyer signs a contract, they put down earnest money, anywhere in the range of $1000 to upwards of $50,000, to show how serious they are about purchasing the real estate.   The earnest money is held by a third party, (typically a lawyer or real estate agent), until the day of the closing.   When the closing day comes, the funds are released toward the buyer’s down payment.   However, what happens to the money if the deal is terminated? Basically, you have to know what the fine print of the contract you signed says. Usually, if the seller is the one that cancels the deal, there are no questions asked and the money is returned to the buyer. However, if you are the buyer and want to cancel the contract, your reason why must comply with one of two conditions in the contract for you too be able to get your money back. Either you cannot obtain financing according to the terms laid out in the financing contingency and you send a cancellation notice before the expiration of the financing contingency term; or you obtain an inspection by a certified inspector, find that one of the major components of the real estate is not functioning for its purpose, and you send a cancellation notice before the expiration of the term in the inspection paragraph of the contract.   It is very important that your attorney stay on...
What you need to know about a home inspection report…

What you need to know about a home inspection report…

When you are buying a piece of real estate, I would highly recommend getting a certified home inspection on the property. A home inspection points out various problems with the land itself and with the house. Common problems that a home inspection reveals include: 1. Water damage – the obvious and the hidden 2. Mold 3. Dangerous levels of radon 4. Structural defects 5. Unsafe electrical conditions A lot of clients believe that they should ask for everything to be fixed that a home inspector finds to be wrong. That really is not the purpose of the home inspection contingency in the real estate contract. The main purpose is too find out if there are any safety hazards and to know whether the major components of the property are functioning properly. If you do find that any of the major components of the building are not functioning properly it gives the buyer a reason to cancel the contract with no repercussions. Although a home inspection report will list every minor thing that may be wrong with the home, the seller is not required to make minor or cosmetic repairs. I am not saying you can’t use the report as a bargaining tool. What I am saying is that you are not allowed to cancel a contract if the seller doesn’t fix all of the “small stuff.” They are only legally obligated to make repairs or replace major components of the real...