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


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