Home Sale Contingencies in Real Estate Contracts

Web Admin - Thursday, April 10, 2014

illinois real estate contingencies lawyerBuying a new home is a complicated task that requires a lot of pieces to fall into place in just the right way. For many people, one of these pieces is the ability to sell their current home. Often, people need to sell their old home first to make sure they have enough cash on hand to afford the new one. Of course, sometimes that is not feasible, and people will want to put an offer down on a new house before they have managed to sell their old one. When this happens, people can use a “home sale contingency” clause in their contract to purchase the new home. In short, a home sale contingency clause voids the contract for the sale of the new house in the event that the buyer is unable to sell their old one.

Types of Home Sale Contingencies

There are two broad types of home sale contingencies that lawyers can build into a contract: a “sale and closing contingency” and a “closing contingency.” The sale and closing contingency is used in the event that the buyer has yet to find a prospective buyer for their own home. Conversely, buyers use closing contingencies when they have a prospective buyer who has made an offer for their home, but the sale has not yet closed. In this instance, the contingency acts as an insurance policy against the sale of the buyer’s home falling through at the last minute. While these two types of clauses function in largely the same way, both of them voiding the sale of the new house if the old one does not sell, the sale and closing contingencies are more likely to include a “kick out” clause.

Kick out clauses are a right of first refusal. They allow the seller to keep searching for other buyers for the house. In the event that one of these other buyers makes an offer, then the seller must notify the first buyer. The first buyer then has some period of time to sell their house or else the seller is allowed to make the sale to the new buyer instead.

Factors to Consider When Using a Home Sale Contingency

Buyers should consider two things when deciding whether to ask for a home sale contingency: the effect it will have on the new home’s price and the other costs of purchasing a house. For the first point, home sale contingency clauses will likely drive the price of the new home up. The buyer is asking the seller to take the risk that the buyer’s old home will not sell, and the seller will likely want compensation for bearing that risk.

For the second point, buyers can still end up sinking other costs into the attempted purchase of the new home. They can end up paying for things like home inspections, appraisal fees, and the like, even before they have sold their old house. In the event that the buyer fails to sell their home, then they have wasted any money spent on such things.

If you are in the market for a new house, find an Illinois real estate attorney to help ensure that you receive strong, fair contracts. We serve towns all across northwest Chicago including Palatine, South Barrington, and Mount Prospect.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.

A Beginner’s Guide to Applying for a Mortgage Loan

Web Admin - Thursday, February 20, 2014

illinois mortgage loan lawyerFor many first-time home buyers, the process of applying for a mortgage can seem complex. This guide will explain the basics of the process, such as the timeline for applying for a mortgage, the documents that applicants should procure and bring, and the credit score and down payment that applicants should expect.

The Mortgage Timeline

The mortgage process begins with a pre-approval application. The purpose of the preapproval process is to let the bank or lender look into the applicant’s finances, in order to make sure that they can afford a loan. This is when banks ask for most of the documentation. Often they want things such as:

- a list of addresses and landlords;
- a list of previous employers;
- pay-stubs from the previous one or two months, with a person’s year-to-date earnings included as well;
- the last two year’s W-2 forms;
- two months of bank statements for all accounts;
- a list of all debts not on the applicant’s credit report; and
- a list of all other real estate that the applicant already owns.

If the applicant has already found a house that they like, and their offer has been accepted, then the bank will also want the seller’s contact information and a copy of the contract. Being ready to provide these documents can help speed up the mortgage process.

Once a person goes through the pre-approval process and has made an offer on a house, the bank will order an appraisal on it. The appraiser will go through the house and determine the value, and then the bank will take their assessment into account when calculating how large a loan they can offer. Generally speaking, the bank will base their offer on either the appraisal value or the purchase price, depending on which is lower.

After the appraisal, the loan underwriter will look at all the documentation to make sure the loan is a good investment for the bank. From start to finish, the whole process usually takes about four to six weeks on the bank’s end, but timelines may vary, and asking the lender in the beginning may be a good idea.

Credit Scores and Down Payments

In addition to the array of documentation, lenders will also expect borrowers to have good credit scores and money available to make a down payment on the house. The rule of thumb for a conventional loan, according to U.S. News, is that a borrower would need a credit score of at least 650. Conventional loans also require, on average, a down payment of around 20 percent. Borrowers may have an alternative in the Fair Housing Act loan, which is a loan insured by the federal government. These loans offer a 3.5 percent down payment with a 580 credit score, and a 10 percent down payment with a 500 credit score.

If you are going through the process of buying a home, contact an Illinois real estate attorney today. Our team serves people in many northwest suburban areas including Inverness, Barrington and Long Grove.

About the Author: Attorney Jay Andrew is founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.

Recent Posts


elder law Chicago trucking accident attorney income distribution deducation Illinois civil litigation lawyer Illinois workplace discrimination attorney preventing accidents Inverness real estate attorney estate tax insurance claim dispute attorney Buffalo Grove corporate attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys ObamaCare underfunded trust Inverness probate lawyer Palatine estate planning lawyer deadly crashes icy parking lots dynasty trusts Crystal Lake employment attorney Barrington litigation attorney insurance adjusters financial advisors bad faith insurance claims food poisoning boating DUI Deer Park traffic lawyer Transfer on Death Instrument premises liability Illinois business law atorneys Illinois real estate lawyer Illinois insurance dispute lawyers pedestrian accidents personal injury Whistleblower Claims traffic deaths creditors Schaumburg estate planning attorney dog bites Barrington employment law attorney trucking accident lawyers Illinois Human Rights Act Buffalo Grove medical malpractice lawyers employee misclassification Illinois rollover accident lawyers Liquor Control Act Barrington real estate lawyer Inverness corporate attorney Schaumburg Jay Andrew Des Plaines civil attorney Crystal Lake personal injury attorney job lawyers GM ignition switches Des Plaines Traffic Lawyer guardianship attorney Illinois probate lawyer Buffalo Grove traffic attorney Rolling Meadows employment attorney Arlington Heights traffic attorney IRS personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Barrington personal injury attorney Schaumburg construction accident lawyer Buffalo Grove injury lawyer loopholes medical research Fair Labor Standards Act Rolling Meadows business lawyer drug crime insurance attorney Illinois tax attorney insurance denials Buffalo Grove probate lawyer Super Mario Illinois personal injury lawyers corporate law Illinois wrongful termination lawyer Arlington Heights criminal lawyer Illinois wills and trusts attorneys insurance denial appeals Employment Discrimination Law Illinois jet ski accident lawyer overtime violations Barrington boating accident attorney Illinois real estate blended families Arlington Heights TBI attorney employment lawyer vacation home employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Crystal Lake pedestrian accident lawyer Rolling Meadows insurance dispute lawyers, insurance dispute underinsured motorist Mount Prospect real estate lawyer living trust Arlington Heights wills and trusts attorney Chicago will attorney Illinois medical malpractice lawyers Illinois trucking safety LLCs Illinois defective products attorney field sobriety test denied insurance claim Arlington Heights medical malpractice lawyer federal regulations for LLCs denied insurance claims Buffalo Grove personal injury lawyer Illinois Probate Act of 1975 Schaumburg wrongful death attorney Colin Gilbert Crystal Lake personal injury lawyer motorcycle accident lawyer Rolling Meadows litigation lawyer real estate contract estate planning for college students DMV Illinois Workers’ Compensation Commission no contest clauses Legal Info Barrington estate planning attorney Rolling Meadows boating crash lawyer Crystal Lake bike accident lawyer car crash PTSD special needs trust filing a medical malpractice claim Illinois medical malpractice case employee rights boating under the influence gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys subcontractor Schaumburg corporate attorney disability benefits Exclusions Landlord Tenant Ordinance Inverness insurance attorney medical malpractice compensation involuntary manslaughter traffic accidents crossover accidents drunk driving fiduciary rule Chicago biking tips Rolling Meadows Attorney owner responsibility foreclosed rental property Illinois pedestrian accident attorney personal injury claim Crystal Lake traffic lawyer Arlington Heights Attorney commercial real estate changes to mortgage law Illinois boating accident lawyer nursing home negligence rest breaks car accidents Des Plaines motorcycle accident attorney employment attorney Schaumburg estate planning lawyer Palatine elder law attorney insurance claim delay boating accidents Barrington employment law firm cell phone tower data Palatine workers compensation lawyer Crystal Lake insurance lawyer Buffalo Grove insurance claim dispute lawyers rumble strips Des Plaines tax law firm healthcare claims DUI defense Illinois medical malpractice claim low-ball insurance settlement slip and fall drugs Arlington Heights car accident lawyer murder estate planning attorney Crystal Lake law firm trench injuries traffic offenses Schaumburg civil litigation attorney Barrington employment attorney Chicago employment attorney homestead rights Des Plaines personal injury lawyer Des Plaines insurance attorney Illinois trusts attorney Illinois workplace lawyer insurance agents Rolling Meadows traffic law firm Palatine punch death construction contracts traffic laws Palatine law firm real estate zoning Crystal Lake estate planning lawyer truck collisions personal injury accidents overtime pay investment property operating agreements Rolling Meadows estate planning attorney Buffalo Grove employment lawyer texting and driving Palatine business attorney estate planning lawyer Inverness accident lawyer liability Illinois employment law insurance disputes BAC texting while driving wrongful death Chicago car accident lawyer workers compensation eluding a police officer Palatine probate lawyer Buffalo Grove law firm commercial leases Inverness DUI lawyer insurance claim dispute Illinois home inspection living trust vs will living trust benefits defective products Deer Park motorcycle accident lawyer Des Plaines claims law firm commercial leasing child safety Arlington Heights real estate lawyer Schaumburg medical malpractice lawyer Chicago estate planning Deer Park employment law attorney traffic violations DGAA life insurance insurance claim denials estate plan Forcible Entry pedestrian-automobile accident Inverness elder law lawyer in terrorem provision Schaumburg drug defense lawyer IRA trust transfer Chicago lawyer Illinois employment attorneys Illinois driving without license unpaid assessment employees Barrington attorney revenge porn expungement Palatine real estate lawyer Arlington Heights Traffic Lawyer Family Medical Leave Act Schaumburg traffic lawyer employee discrimination products liability Illinois traffic attorney cell phone accidents Arlington Heights estate planning attorney marijuana crimes attorney Des Plaines accident attorney probate lawyer Illinois small business insurance negligence bike accident Rolling Meadows probate lawyer Inverness civil lawyer Policy Cancellation comp time healthcare Illinois traffic accident lawyer Barrington estate planning lawyer Des Plaines criminal attorney minimum wage Rolling Meadows personal injury lawyer drug crimes lawyer pedestrian accident Des Plaines collections attorney POA digital assets Rolling Meadows insurance lawyer Barrington workers compensation attorney Arlington Heights trucking lawyer bicycle dooring accidents Crystal Lake will lawyer car crash injuries golf accidents Colin H. Gilbert accidental death benefits criminal defense Palatine employment law lawyer real estate lawyer rollover car crashes reckless homicide Self-Directed IRA Accounts breathalyzer test foreclosure Schaumburg personal injury lawyer modern family estate planning Crystal Lake medical malpractice attorneys ken apicella South Barrington real estate attorney pain and suffering Illinois will lawyer personal injury attorney Barrington criminal defense lawyer Buffalo Grove car accident lawyer speeding Arlington Heights personal injury lawyer Crystal Lake traffic attorney Crystal Lake employment law attorney agent traffic violations defense Illinois corporate lawyer Crystal Lake car accident attorney hiring employees paid sick leave sole proprietorship medical malpractice wills Buffalo Grove criminal defense lawyer Illinois employment law firm Illinois injury lawyer cell phone car collision estate attorney School Visitation Rights Act Palatine construction attorney Illinois estate planning attorney hands free device Des Plaines real estate attorney caretaker rights car accident traffic tickets Illinois red light cameras underage DUI Deer Park criminal attorney real estate leasing insurance claim denial attorney fees whistleblower protections real estate attorneys Illinois insurance disputes Long Grove estate planning attorneys Crystal Lake medical malpractice law firm license institutional trustee Arlington Heights tax lawyer real estate closing Arlington Heights accident attorney construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation pet law probate process Rolling Meadows marijuana attorney license suspension Palatine injury attorney Crystal Lake pet attorney Illinois personal injury living wills Crystal Lake criminal defense attorney Affordable Care Act Illinois mortgages Illinois insurance attorney Illinois estate planning Illinois registered agent home inspection lawyer liability claims Deer Park medical malpractice attorney new real estate form Illinois business lawyer BAIID jet ski accidents startup company tax attorney estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, compensatory time mortgage Rolling Meadows DUI lawyer vacation home fines Chicago estate planning lawyer Food and Drug Administration's Food Safety Modernization Act internet Deer Park workers compensation lawyer life insurance claims Fourth of July traumatic brain injuries Illinois personal injury lawyer probate Illinois collections attorney Deer Park personal injury lawyer digital evidence Palatine traffic lawyer probate claims right to work Palatine employment lawyer Arlington Heights personal injury attorney car accident lawyers irrevocable trust consent to a search Kenilworth estate planning attorney Rolling Meadows insurance attorney criminal record employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, probate claims process trust payments Illinois employee rights attorney. breach of contract Do Not Resuscitate college kids Long Grove real estate lawyer Rolling Meadows insurance dispute lawyers Des Plaines DUI attorney Buffalo Grove personal injury attorney digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Palatine traffic accidents product liability drug possession Chicago will attorney, social media platforms, Illinois estate planning lawyer, personal injury claims trauma after an accident TBI sexual images Illinois pet lawyer dealing with problem employees Illinois wills and trusts contracts Chicago corporate attorney estate planning Deer Park accident attorney Arlington Heights car crash attorneys Des Plaines drug lawyer traffic crimes Mount Prospect wills and trusts lawyers fiduciary rule delay Barrington medical malpractice lawyers Rolling Meadows employment law attorneys Illinois insurance claim dispute lawyer Inverness estate planning lawyer capital gains tax landlord tenant law Crystal Lake medical malpractice lawyer Crystal Lake injury attorney Rolling Meadows tax attorney Illinois traffic ticket lawyer fatal car accidents Illinois Wage Payment and Collection Act Crystal Lake employment lawyer Illinois personal injury attorney DNR Des Plaines pet law attorney Illinois insurance claims lawyers Schaumburg real estate lawyer Palatine criminal defense lawyer power of attorney Illinois Transfer on Death Instrument Chicago insurance law firm estate planning trusts digital media accounts, estate planning, Arlington Heights estate planning attorney, liens Riverwoods estate planning lawyer Crystal Lake tax lawyer manufacturing condo association spinal cord injury real estate rent to own real estate contracts Illinois job attorney work unions social media after death Rolling Meadows accident lawyer Des Plaines drug crimes lawyer Rolling Meadows medical malpractice lawyers Palatine employment attorney DUI penalities wills and trusts first degree murder Palatine personal injury lawyer Deer Park traffic accident attorney natural gas explosion insurance dispute Palatine trusts lawyer marijuana anesthesia errors suspended license Illinois construction accident attorney federal crimes Des Plaines injury law firm employment law, Illinois employment laws fault based insurance Deer Park real estate law firm Illinois law Crystal lake insurance dispute attorney taxes Illinois traffic laws Arlington Heights lawyer Rolling Meadows corporate lawyer wage theft Palatine insurance lawyer Illinois Barrington criminal lawyer Palatine corporate law attorneys civil rights violation Class A misdemeanor caregiver insurance claim natural gas Schaumburg elder law lawyer defective products lawyer Arlington Heights wills and trusts lawyers Illinois Smoke Detector Act Crystal Lake car accident lawyer Des Plaines personal injury attorney South Barrington real estate lawyer Home Remodeling Repair Act Des Plaines Federal Food Drug and Cosmetic Act Attorney Ken Apicella Schaumburg estate attorney FMLA personal injury lawyer license reinstatement Arlington Heights wills and trusts attorneys Home Sale Contingencies Rolling Meadows Arlington Heights injury attorney medical malpractice claims civil litigation attorney Schaumburg personal injury lawyers unauthorized overtime Barrington Illinois estate planning lawyer Illinois estate planning law firm Deer Park DUI lawyer denial of life insurance Illinois insurance claim dispute lawyers Illinois elder law attorney Mount Prospect elder law attorney Illinois insurance claim attorney holiday statistics forming a corporation in Illinois Inverness personal injury attorney deed transfer FSLA Crystal Lake business law attorneys Crystal Lake accident attorney Barrington personal injury lawyer Palatine corporate attorney trucking accidents Retaliatory Discharge Detainer Actions Illinois Sales Representative Act Schaumburg Attorney Kenilworth estate planning lawyer criminal Rolling Meadows traffic attorney Des Plaines personal injury lawyers surgical mistakes Illinois employment laws elder abuse Long Grove estate planning attorney Crystal Lake civil litigation lawyer Buffalo Grove traffic lawyers insurance claims blood alcohol content DUI motorcycle accident dram shop law probate fees wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace clemency unpaid overtime Palatine Attorney license revocation Illinois bicycle safety medical marijuana pizza emoji comparative negligence Schaumburg injury lawyer distracted driving accidents Rolling Meadows Traffic Lawyer real estate attorney senior citizens digital information life insurance policy Palatine civil litigation lawyer Illinois LLC creation small business Schaumburg employment law attorneys workers compensation benefits distracted driving accident victims swimming pools estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers civil litigation Rolling Meadows real estate attorney Illinois living will problem employees pregnant women business litigation spinal cord injuries car accident lawyer IRA benefits independent contractor Illinois attorney Chicago insurance claim attorneys Long Grove real estate attorney Mt Prospect Attorney life insurance lawyer driving pedestrian injuries, pedestrian fatality Chicago traffic lawyer personal injury law firm Rolling Meadows criminal lawyer employment law Illinois motorcycle accident lawyer Schaumburg criminal attorney Thanksgiving Barrington civil litigation attorney back injuries severance agreements Illinois DUI attorney preventable medical errors Rolling Meadows personal injury attorney insurance agent negligence meal breaks Arlington Heights insurance attorney Arlington Heights wills and trusts lawyer uninsured motorist Schaumburg employment attorney Inverness injury lawyer car crashes Joliet general practice lawyers Buffalo Grove real estate attorney Schaumburg insurance lawyers Illinois lawyer Illinois criminal defense attorney sexual harassment IRELA Barrington business law firm Barrington Traffic Lawyer CAM Kenilworth estate planning attorneys drug crimes murder defense Illinois workers compensation lawyer Des Plaines medical malpractice attorney loss of consortium traumatic brain injury rollover accidents pet bites installment contracts Chicago attorney unfunded trust workers comp privacy laws mass shooting Illinois insurance lawyer Illinois workers compensation attorney Barrington drug crime attorney Schaumburg personal injury attorney power of attorney for healthcare advance healthcare directive Illinois medical malpractice attorney trustee Palatine drug lawyer Barrington injury attorney bicycle accidents landlord Palatine civil attorney insurance dispute attorney trusts Rolling Meadows car accident lawyers Inverness traffic law firm Arlington Heights employment attorney auto accidents workplace sexual harassment employment contract construction accidents BUI appealing an insurance claim Rolling Meadows criminal attorney ACA insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys automated cars Rolling Meadows personal injury lawyers Long Grove wills and trusts attorneys Rolling Meadows employment law attorney wrongful termination Inverness real estate lawyer Illinois speeding lawyer Illinois employment lawyer Arlington Heights employment law attorneys condo hit and run accident Illinois car accident attorney Illinois employment law attorneys Rolling Meadows drug defense attorney Illinois employment law attorney gift taxes jet ski DUI attorney Des Plaines real estate lawyer Illinois traffic attorneys Schaumburg car accident attorney Arlington Heights pedestrian accidents Schaumburg probate attorney pay when paid contract drunk driving statistics privacy residential real estate Schaumburg criminal law attorney medication errors Chicago employment lawyer brain injury controlled substance Long Grove estate planning head on collisions medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers slip and fall accidents criminal law health insurance dispute murder charges llinois Real Estate Lawyers Association