How to Buy Real Estate in Illinois

Purchasing real estate in Illinois—whether as a first-time homebuyer or a seasoned investor—requires the completion of a series of legally significant steps. Below is a summary of the standard residential real estate purchase process in Illinois.

1. Draft Contract – You draft and sign a real estate contract and make a formal offer to the owner of the property. You (or your real estate agent) will send the contract to the seller for their review and counter-signature. Once the seller accepts the terms and returns the signed contract, the transaction enters the attorney review period.
2. Attorney Review Period  – The attorney review period lasts for five business days from the date of final contract acceptance, unless an extension is granted. It is imperative to forward the fully executed contact to our office promptly.  You do not want to have your attorney review deadline expire before we can review it. Timely submission ensures we can thoroughly review the contract and propose necessary modifications within the permitted timeframe.
3. Earnest Money Deposit – Pursuant to the terms of the contract, the buyer must deliver the earnest money deposit to the seller’s designated agent – typically the seller’s attorney or real estate brokerage . The seller’s real estate agent or attorney needs to receive it, either by check or wire transfer by the deadline listed in the contract.
4. Property Inspection and Modification Requests – During the attorney review period, the buyer has the right to have a property inspection completed which usually looks like the following:
   1. The buyer retains a licensed home inspector to evaluate the condition of the property.  
   2. Upon receipt of the inspection report, our office will review the findings with the buyer and identify material defects or safety concerns. 
   3. Our office will draft a formal attorney modification letter, which may request repairs, credits, or other contractual amendments, and submit it to the seller’s attorney.
   4. If both parties reach an agreement regarding the requested modifications, the transaction proceeds. However, if no agreement is reached, either party may cancel the contract, and the earnest money is refunded to the buyer.
5. Loan Approval Process – If you are not buying the property in cash, a loan must be obtained.
   1. It is critical to maintain open communication with your mortgage loan officer.  For a better chance for things to go smoothly, pay attention to your email and get all the documents needed to them as soon as possible.
   2. Once underwriting is complete, the lender will issue a Loan Approval. 
   3. We wait for the lender to mark your file “Clear to Close” (this is usually the biggest hold-up in the transaction).
   4. Upon clearance, a closing date, time, and location are coordinated with the lender, seller’s attorney, and a title company. 
6. Pre-Closing – While all of the above is happening, the seller must remove all of their belongings out of their property.
   1. The seller must complete all agreed-upon repairs and contractual obligations. 
   2. The buyer, accompanied by their real estate agent, conducts a final walk-through of the property (typically the day before or the morning of closing) to confirm property’s condition and the completion of repairs. 
7. Closing:
   1. All parties – including the buyer, seller, attorney’s and possible the lender’s representative attend the closing, typically held at a title company. At this time, legal ownership of the property is transferred, funds are disbursed, and final documents are signed. Most buyers have to attend the closing in person while a lot of seller’s can presign remotely.