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Yorkville Real Estate Attorney: Legal Tips for Selling Your House

 Posted on April 06, 2023 in Real Estate Transactions

Yorkville Real Estate AttorneyYorkville Real Estate Lawyer: Tips for Real Estate Sellers in Kendall County, Illinois

At Gateville Law Firm, we specialize in residential real estate transactions for sellers and buyers of property in Yorkville, Oswego, Plano, Newark, Leland, Somonauk, Sandwich, and nearby areas of Kendall County. Our law firm handles real estate transactions through the Chicagoland area & surrounding suburbs. If you are considering selling your home, there are three significant factors that impact the home sale process in Illinois.

A. Attorney Review and Home Inspection Periods

The first factor involves the attorney review and home inspection periods. The attorney review and home inspection periods are significant during a residential real estate sale process. The attorney review period is established under the Multi-Board Residential Real Estate Contract 7.0 (in the future referred to as "Purchase Sale Agreement") and is the standard real estate contract used in Kendall County and surrounding Chicago suburbs. The purpose of the Purchase Sale Agreement is to outline the typical real estate terms and conditions of the sale of residential property in Illinois. Commercial real estate sales have a different version of the real estate contract. The Purchase Sale Agreement includes provisions for the purchase price, closing date, financing terms and arrangements, home inspection, and attorney review periods.

The advantage of a standard real estate contract is that it simplifies the real estate contract for buyers and sellers. The terms and conditions are clear and concise for attorneys, real estate agents, buyers, and sellers. Legal representation is advisable because there are a lot of grey areas which can impact the sales process

The attorney review period is generally five business days after the date of acceptance. The date of acceptance is the date the sellers signed the Purchase Sales Agreement. The attorney review provision allows the buyers or their attorneys to seek modifications of the standard real estate terms of a Purchase Sale Agreement

Generally, buyer's real estate attorneys will make modifications to the residential real estate contract, such as the following:

  • Appraisal Provision: Add a provision that the real estate contract shall add a key term, such as an appraisal provision that guarantees that the buyers can cancel the contract if the house does not appraise for at least the sales price.

  • Earnest Money Return: Limit the legal remedies to the return of one’s earnest money funds.

  • Attorney Review Open Period: The attorney review period shall remain open until the parties can complete the attorney review and home inspection periods.

  • Homeowner’s Insurance Claims: Buyer's attorneys often ask about home owner's claims made within the last 3 to 5 years.

The home inspection period is the period that addresses home repairs. The Purchase 

Sale Agreement limits the scope of the repairs that residential buyers can request from sellers

The parties negotiate the repair credits requested by the buyers. They buyer or seller may cancel the Purchase Sale Agreement if they cannot reconcile the terms of the home inspection period. The repairs requested by the buyer must be reasonable depending on the type of loan. The seller may be required to make repairs as a condition of the buyer's loan. FHA and VA buyers have a safety inspection clause that requires sellers to make repairs as a condition of accepting a buyer that is FHA or VA-approved

Sellers benefit by having experienced real estate representation at the beginning of the real estate transaction. An experienced seller’s real estate attorney will negotiate the attorney review and home inspection periods for the sellers. Real estate transactions are significant because they represent a vast majority of the assets of most homeowners.

B. Home Appraisal Process

The second part of the real estate transaction is the home appraisal process. A home appraisal is an essential component of the real estate process. In Illinois, the home appraisal determines whether the property appraises for at least the purchase price. Banks and mortgage lenders require a licensed appraisal to decide that the real estate contract price at least appraises for the real estate contract price. The appraisal is a condition of the buyer's loan terms. The buyer has a legal right to obtain a copy of the home appraisal from their lender at least three days before the sale of the real estate.

The appraisal process considers multiple factors, such as the following:

  • Size and age of the property

  • Its location and nearby purchase prices of similar homes or properties

  • The local real estate market and the property’s condition, features, and upgrades

In most real estate transactions, the appraisal process does not create significant obstacles to the real estate transaction. However, in certain circumstances, the appraisal process can cause substantial issues if the appraisal and the contract price differ substantially. For buyers, the home appraisal process prevents buyers from entering into real estate contracts that are not fair and equitable. Therefore, a home appraisal is essential to the real estate purchase and sale process in Kendall County, Illinois. In addition, the home appraisal helps determine the value of the property.

C. Title Insurance and Real Estate Transactions

The third and most important factor in the residential real estate process is the role of title insurance. Title insurance plays an essential part for sellers of residential property in Illinois. Title insurance guarantees the buyer and their lender that the seller has satisfied all the conditions to transfer the real estate to the buyer without any defects, liens, unpaid mortgages, or tax issues.

Title insurance provides the following benefits for sellers and buyers:

  • Peace of Mind: Buyers and their lenders are protected against unknown title defects, such as unpaid mortgages, real estate taxes, or other defects.

  • Integrity to the Real Estate Process: Sellers and buyers benefit from title insurance because it ensures all parties that the real estate process is fair and equitable, and a seller will get its' bargain in consideration for selling the residential property.

  • Supports a Successful Closing: Title insurance identifies the possible defects and allows the seller's attorney to ensure that the property title is clear and transferable to the buyers.

  • Enhances Marketability: Title insurance is attractive to buyers and lenders because it assures that the title to the property is free of defects.

Title insurance is required to be purchased by sellers, and buyer's lenders need their buyers to buy a lender's policy. A lender's policy is an insurance policy that protects the lender's interest in the property. In addition, the lender's policy protects the lender's investment in the property by ensuring that the title has no defects or liens that would harm the buyer or its' lender. Generally, a buyer's lender requires a lender's policy to finance the purchase of the property.

Yorkville Real Estate Attorney for Sellers

The Gateville Law Firm Real Estate Team provides exceptional legal representation for buyers in Kendall County and nearby counties. Our team has over fifty years of residential real estate experience. Our support team has worked for multiple years at reputable title insurance companies, where they learned the ins and outs of real estate in high-volume environments. Real estate attorneys often rely significantly on their support staff because most real estate lawyers handle a significant amount of real estate transactions. An experienced real estate support team is crucial for sale transactions involving sellers because title insurance is the central issue when you are selling real estate. A seller must satisfy the terms of the title insurance company to sell their house. An experienced title insurance background is a major benefit because title insurance can place significant obstacles to a successful real estate closing. Contact Gateville Law Firm and talk with an attorney to discuss your real estate sale at 630-780-1034 or fill out the online contact form and we will call you.

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