Outline
The Illinois Realtor Contract form serves as a crucial document in the real estate transaction process, outlining the responsibilities and expectations of both the buyer and seller. This form begins with the identification of the purchaser and seller, along with the agreed-upon purchase price for the property located in a specified county. It meticulously details the property being sold, including its dimensions and any additional items included in the sale. The seller commits to convey the property through a recordable deed, while the purchaser agrees to provide earnest money, which is a deposit demonstrating their serious intent to buy. The contract further stipulates various conditions, such as the seller's obligation to furnish a current plat of survey and title insurance, ensuring that the buyer receives clear and marketable title to the property. Closing timelines are established, along with provisions for the payment of broker commissions and adjustments for taxes and utilities. Importantly, the form incorporates conditions and stipulations that address potential title issues and the responsibilities of both parties should the contract be terminated. By clearly delineating these aspects, the Illinois Realtor Contract form aims to protect the interests of all involved, fostering a smoother transaction process.
Sample - Illinois Realtor Contract Form
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
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
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
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.
Form Information
| Fact Name | Fact Description |
|---|---|
| Governing Law | The Illinois Realtor Contract form is governed by the laws of the State of Illinois. |
| Earnest Money | The contract requires the Purchaser to pay earnest money, which is applied to the purchase price at closing. |
| Title Insurance | The Purchaser must obtain an American Land Title Association loan policy issued by the Chicago Title Insurance Company. |
| Closing Timeline | The closing date is specified in the contract, with options for extensions based on certain conditions. |
| Broker's Commission | The Seller agrees to pay a broker's commission as outlined in the broker's listing contract. |
| Disclosure Requirements | The contract may be subject to the disclosure requirements of the Illinois Responsible Property Transfer Act. |
Detailed Guide for Filling Out Illinois Realtor Contract
Filling out the Illinois Realtor Contract form requires attention to detail and accuracy. Each section must be completed to ensure that both the purchaser and seller have a clear understanding of the terms of the sale. Follow the steps below to complete the form properly.
- Purchaser Information: In the first blank, enter the name of the purchaser. This should be the individual or entity buying the property.
- Purchase Price: Fill in the agreed purchase price in the designated space.
- Property Description: Specify the county and provide the common name of the property, along with its approximate lot dimensions.
- Seller Information: In the next section, enter the seller's name and confirm their agreement to sell the property under the specified terms.
- Earnest Money: Indicate the amount of earnest money the purchaser has paid, which will be applied to the purchase price.
- Payment Terms: Detail the payment structure, including any additional payments and the balance due at closing.
- Closing Date: Specify the proposed closing date. Include provisions for any extensions if necessary.
- Broker's Commission: State the name of the broker and the commission amount as agreed upon in the listing contract.
- Earnest Money Holder: Identify who will hold the earnest money until closing.
- Seller's Warranty: Confirm that the seller has received no notices of violations from governmental authorities.
- Delivery of Contract: Note the time frame in which a duplicate original of the contract will be delivered to the purchaser.
- Signatures: Ensure that both the purchaser and seller sign the contract, including their addresses.
After completing these steps, review the form for accuracy before submission. Both parties should retain a copy for their records. This process helps ensure a smooth transaction and clarity for both the purchaser and seller moving forward.
Obtain Answers on Illinois Realtor Contract
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What is the purpose of the Illinois Realtor Contract form?
The Illinois Realtor Contract form is a legal document used to outline the terms and conditions of a real estate sale in Illinois. It serves as an agreement between the seller and the purchaser, detailing essential information such as the purchase price, property description, and closing details. This form helps ensure that both parties are clear on their obligations and rights throughout the transaction.
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What information must be included in the contract?
The contract requires several key pieces of information:
- The names of the purchaser and seller.
- The purchase price of the property.
- A detailed description of the property, including its location and dimensions.
- Details about any earnest money paid and how it will be applied to the purchase price.
- The closing date and location.
- Any existing mortgages, liens, or other encumbrances on the property.
Including this information helps to avoid misunderstandings and ensures a smoother transaction.
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What happens if the seller fails to deliver the required documents?
If the seller does not provide the necessary documents, such as the plat of survey or title commitment, within the specified timeframe, the purchaser has options. The purchaser may choose to terminate the contract or accept the title as it is, with the right to deduct any known liens or encumbrances from the purchase price. This provision protects the purchaser's interests and allows them to make informed decisions.
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What is the role of earnest money in this contract?
Earnest money acts as a deposit made by the purchaser to show their serious intent to buy the property. This amount is typically held by a neutral third party, such as a title company or real estate broker, until the closing. If the contract is terminated without the purchaser's fault, the earnest money is returned. However, if the termination is due to the purchaser's fault, the seller may keep the earnest money as compensation for their time and effort.
Common mistakes
Filling out the Illinois Realtor Contract form can be complex, and mistakes can lead to significant issues. One common error is failing to complete all sections of the contract. Each blank must be filled in accurately, including the names of the purchaser and seller, the purchase price, and property details. Omitting any of this information can render the contract incomplete and unenforceable.
Another mistake involves incorrect earnest money amounts. The contract specifies the amount of earnest money to be paid, which should be clearly stated. If the amount is left blank or miscalculated, it may lead to disputes between the buyer and seller regarding the terms of the agreement.
Misunderstanding the title and deed requirements is also frequent. The contract requires the seller to convey the title through a recordable deed. If the seller fails to provide a clear title or does not address existing liens or encumbrances, the purchaser may face unexpected complications during closing.
Buyers and sellers often neglect to specify the closing date. The contract states that the time of closing should be indicated clearly. If this section is left blank, it can lead to confusion and delays, potentially jeopardizing the transaction.
Another common oversight is failing to include the broker's commission details. The contract should specify the broker's name and the agreed-upon commission amount. Omitting this information can create misunderstandings about payment responsibilities after the sale.
Additionally, not addressing the conditions and stipulations can be problematic. The contract includes specific conditions that must be adhered to. If these are overlooked or not understood, one party may not fulfill their obligations, leading to contract disputes.
Lastly, individuals often forget to sign and date the contract. Both parties must sign the document for it to be legally binding. Failing to do so can invalidate the agreement and result in lost time and resources for both parties.
Documents used along the form
The Illinois Realtor Contract form is a vital document in real estate transactions, particularly for the sale of properties. Alongside this contract, several other forms and documents are commonly utilized to ensure a smooth transaction process. Below is a list of five essential documents that often accompany the Illinois Realtor Contract.
- Title Commitment: This document outlines the current status of the property's title and any liens or encumbrances that may affect ownership. It assures the buyer that the title is clear or specifies any issues that need resolution before closing.
- Earnest Money Agreement: This agreement details the amount of earnest money the buyer is putting down to demonstrate their serious intent to purchase. It specifies how the funds will be handled and conditions under which they may be refunded.
- Property Disclosure Statement: Sellers provide this document to disclose any known issues with the property, such as structural problems or past repairs. It helps buyers make informed decisions and protects sellers from future liability.
- Closing Statement: This document summarizes all financial transactions related to the sale, including the purchase price, closing costs, and any adjustments for taxes or utilities. It is presented at the closing meeting for both parties to review and sign.
- Deed: The deed is the legal document that transfers ownership of the property from the seller to the buyer. It must be signed and recorded to ensure that the buyer has clear title to the property.
Understanding these documents is crucial for both buyers and sellers in the real estate market. Each plays a specific role in facilitating the transaction and protecting the interests of all parties involved.
Similar forms
The Illinois Realtor Contract form shares similarities with several other real estate documents. Each of these documents serves a unique purpose but often contains overlapping elements related to property transactions. Here are seven documents that are similar to the Illinois Realtor Contract form:
- Purchase and Sale Agreement: This document outlines the terms and conditions under which a buyer agrees to purchase a property from a seller. Like the Illinois Realtor Contract, it details the purchase price, earnest money, and closing procedures.
- Lease Agreement: A lease agreement governs the rental of property, specifying terms such as rent, duration, and responsibilities of both the landlord and tenant. Similar to the Realtor Contract, it includes provisions for property conditions and obligations.
- Option to Purchase Agreement: This document grants a potential buyer the right to purchase a property at a specified price within a certain timeframe. It mirrors the Illinois Realtor Contract in its structure, detailing terms of the potential sale.
- Real Estate Listing Agreement: This agreement is between a property owner and a real estate agent, allowing the agent to market the property for sale. Both documents include terms regarding commissions and responsibilities of the parties involved.
- Deed: A deed is a legal document that transfers ownership of real estate from one party to another. While the Illinois Realtor Contract outlines the sale terms, the deed formalizes the transfer, similar in its focus on property rights and obligations.
- Title Insurance Policy: This document protects buyers and lenders from losses due to defects in title. Like the Realtor Contract, it addresses issues related to ownership and encumbrances, ensuring clear title to the property.
- Closing Statement: This document summarizes the financial aspects of the transaction at closing, including costs and credits. It parallels the Illinois Realtor Contract by detailing the financial obligations and adjustments that occur at the time of sale.
Dos and Don'ts
When filling out the Illinois Realtor Contract form, there are several important things to keep in mind. Below is a list of what you should and shouldn't do to ensure the process goes smoothly.
- Do read the entire contract carefully before filling it out. Understanding all terms and conditions is crucial.
- Do provide accurate and complete information in each section. This includes the names of the purchaser and seller, property details, and financial terms.
- Do ensure that all required signatures are obtained. Both the seller and purchaser need to sign the contract for it to be valid.
- Do keep a copy of the completed contract for your records. This will be useful for future reference.
- Do consult with a real estate professional if you have questions or need clarification on any part of the contract.
- Don't leave any blank spaces. All sections must be filled out completely to avoid confusion later.
- Don't use incorrect or outdated forms. Always ensure you are using the most current version of the Illinois Realtor Contract form.
- Don't rush through the process. Taking your time can prevent mistakes that could lead to legal issues later.
- Don't ignore deadlines. Pay attention to any timeframes mentioned in the contract, especially those related to earnest money and closing dates.
- Don't assume that verbal agreements are sufficient. All agreements should be documented in the contract to be enforceable.
Misconceptions
Understanding the Illinois Realtor Contract form can be challenging, and several misconceptions often arise. Here are six common misunderstandings:
- The contract is only for residential properties. Many believe that the Illinois Realtor Contract is exclusively for residential transactions. In fact, this form is typically used for multi-family structures and commercial or industrial properties as well.
- Earnest money is non-refundable. Some people think that once earnest money is paid, it cannot be recovered. However, if the contract is terminated without the Purchaser's fault, the earnest money must be returned to the Purchaser.
- Closing dates are fixed and cannot be changed. There is a misconception that the closing date is set in stone. The contract allows for extensions based on specific conditions, and parties can mutually agree to change the closing date.
- The Seller is responsible for all repairs before closing. Many assume that the Seller must fix all issues before the sale. While the Seller is responsible for certain disclosures, the Purchaser may have the option to accept the property as-is, depending on the contract terms.
- Title insurance is optional. Some believe that title insurance is an optional service. In reality, the contract often requires the Seller to provide a title commitment, ensuring that the Purchaser receives clear title to the property.
- All notices must be delivered in person. There is a common belief that notices must be delivered directly to the parties involved. However, the contract allows for notices to be sent via registered or certified mail, which is considered sufficient.
Being aware of these misconceptions can help both buyers and sellers navigate the Illinois Realtor Contract more effectively. Understanding the terms and conditions laid out in the contract is essential for a smooth transaction.
Key takeaways
Complete all sections of the Illinois Realtor Contract form accurately. Ensure that the names of both the Purchaser and Seller are clearly stated, along with the property details, including the address and lot dimensions.
Specify the purchase price and terms of payment. This includes the amount of earnest money paid and how the balance will be financed, whether through a mortgage or other means.
Understand the importance of earnest money. This deposit shows the Purchaser's commitment and will be applied to the purchase price at closing.
Review the conditions for title transfer. The Seller must provide a recordable deed, free of unpermitted exceptions, and ensure that the title is marketable.
Be aware of the closing timeline. The contract specifies a date for closing, which can be extended under certain conditions. This date is crucial for both parties.
Know the implications of zoning and code violations. The Seller must disclose any known issues, and the Purchaser should verify that these have been resolved prior to closing.
Ensure compliance with the Illinois Responsible Property Transfer Act. This may involve additional disclosures from the Seller and notifications to mortgage lenders.