DGAA bLAWg

New Changes in the Multi-Board Residential Real Estate Contract 7.0

Web Admin - Friday, March 29, 2019
Inverness real estate contract lawyerWhen Illinois residents buy and sell homes, their real estate agents and lawyers generally use a standard form for the sales agreement, the 13-page multi-board residential real estate contract. The latest version, 7.0, should be used for all transactions initiated after March 1, 2019. It contains several important changes that make the contract easier to use than the 6.1e version that has been in use since 2015. 

Significant Changes in Real Estate Contract 7.0 versus 6.1e


The changes to the contract are mainly intended to help reduce errors and misunderstandings amongst all parties involved in a real estate sale. The most important changes that buyers, sellers, and real estate agents should be aware of are:

- Inspection contingency: Subparagraph (a) of the inspection paragraph has been rewritten to prevent buyers from demanding minor repairs. It now specifically states that minor repairs “shall not be a basis for the buyer to cancel” the contract. In addition, the seller can now terminate the contract and return the buyer’s earnest money if the buyer asks for repairs or credits unrelated to the major components of the property. 

- Financing contingency: The old Mortgage Contingency paragraph has been replaced by a Financing paragraph with a choice of three options: mortgage contingency, cash transaction with no mortgage, or cash transaction with mortgage allowed. The deadline for the buyer to serve notice that they did not get the specified mortgage is now fixed at either 45 days after acceptance or five business days before closing, whichever is earlier.

- Property tax representations: Two new seller representations have been added to the contract to better inform buyers about a home’s future property taxes. First, sellers must indicate if there are any home improvements that have not yet been assessed for property tax purposes, such as an addition or a new garage. Second, sellers must indicate if there have been any property improvements eligible for a home improvement tax exemption. 

- Attorney review: The language of this paragraph has been clarified so that any proposed change to the sales contract that references subparagraph (d) will be deemed a “proposal;” any other change will be deemed a counteroffer. A buyer or seller can void the contract due to disagreement over a counteroffer but not over a proposal. 

- Seller credits at closing: The paragraph stating whether the seller will pay the buyer’s closing costs has been moved from page 10 to page 1, so it is located near the purchase price.

- Fixtures and personal property included: Four more items were added to the list: hardscape, wall-mounted brackets for TV/AV equipment, water softener, and wine/beverage refrigerator.

- Foreign seller disclosure: If the seller is a nonresident alien or foreign corporation, this fact must be disclosed for federal tax reasons. 


Consult a Palatine Real Estate Lawyer


To ensure that your home sale and/or purchase proceeds smoothly and that your legal and financial interests are protected throughout the process, contact an experienced Arlington Heights real estate attorney by calling 847-934-6000. The attorneys of Drost, Gilbert, Andrew & Apicella, LLC will represent your interests in any real estate transaction. 

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.


Sources:
https://www.chicagorealtor.com/?s=new+residential+contract&submit=SUBMIT
https://chicagoagentmagazine.com/2019/02/04/understanding-biggest-changes-m…

Beware: The Illinois Rent-to-Own Law Has Changed

Web Admin - Friday, May 18, 2018
Schaumburg real estate attorney rent-to-own contractsWhen purchasing real estate property, most homeowners obtain a mortgage, which provides them with certain legal protections, including in the case of foreclosure. However, following the financial crash of 2008, many potential homeowners have purchased homes through installment contracts (also known as rent-to-own agreements), allowing them to live in their home and pay down the purchase price over time.

These types of agreements provide low-income homeowners or those who are unable to qualify for a mortgage with the ability to purchase their own home. However, since the seller retains the title of the home until all payments have been made, some predatory sellers may use rent-to-own agreements to take advantage of buyers, especially if they fail to disclose issues related to property maintenance or building code compliance.

Changes to Illinois Law Regarding Installment Contracts

On January 1, 2018, a new state law went into effect that is intended to provide buyers with protections in an installment sales contract (often referred to as an Installment Contract for Sale of Real Estate, Articles of Agreement for Deed, or Installment Agreement for Deed). The Illinois Installment Sales Contract Act applies to sellers who sell three or more residential real estate properties in a single year, and it does not apply to agricultural property that is larger than four acres. The law contains the following new provisions:

- A seller must record a contract with the county recorder of deeds within 10 days of the sale of the property. If the contract is not recorded, the buyer can rescind the contract, and the seller must provide them with a refund of all payments made.

- A contract must contain a statement in large, bold type that informs the buyer of their right to obtain a home inspection and/or appraisal from a third party before signing the contract.

- If a building on the property has been condemned, the contract must contain a statement in large, bold type informing the seller of this fact.

- A contract must include a statement of what repairs the buyer is responsible for making to the property. The seller is responsible for making any repairs not included in this statement.

- If a buyer defaults on any payments, they have 90 days to make payments and cure the default before the seller can bring any action against them. If a buyer cannot cure the default, the seller must refund them any money they spent to perform repairs on the property.

- If a buyer defaults after paying at least 20% of the property’s purchase price, the seller must follow foreclosure procedures in order to evict the buyer from the property.


Contact an Inverness Real Estate Attorney

If you are planning to use an installment contract to buy or sell a home, an experienced attorney can review your contract to ensure that your rights are protected and that the correct legal procedures are followed. To schedule a personalized consultation, contact a Mount Prospect real estate lawyer at 847-934-6000.

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.



Sources:
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3813&ChapterID=62
http://www.ilga.gov/legislation/publicacts/100/PDF/100-0416.pdf
https://www.isba.org/ibj/2017/10/lawpulse/newlawprotectsrealestatepurchaserswhobuy

What Is a Mechanic’s Lien?

Web Admin - Wednesday, March 21, 2018
Inverness real estate lien attorneyIn any real estate transaction, there are a variety of legal issues that can arise that will affect the parties’ ability to complete the sale. If there are any encumbrances on the property, they will restrict the owner’s ability to transfer the title. Mechanic’s liens are one type of encumbrance that people may not be aware of, and property owners should be sure to understand how these liens can affect them.

Mechanic’s Liens in Illinois

A mechanic’s lien can be placed on a property by a contractor, subcontractor, or supplier if they were not paid for improvements which were made to the property. This could occur because a contractor was not fully paid for the work they did or because a contractor failed to pay a subcontractor or supplier. A mechanic’s lien is a cloud on title that must be resolved before the property can be sold or refinanced.

In Illinois, a contractor must file a mechanic’s lien within four months after the work was completed. A subcontractor must record a lien within 90 days of the date that they last worked on the property. A claim must include a statement of the work performed according to the contract, the amount due to the claimant, and a description of the property. A claimant must file a lawsuit to foreclose on the lien within two years after the completion of work. If the lawsuit is successful, the claimant will be entitled to receive the amount due, as well as interest at the rate of 10% per year.

Subcontractors must meet some additional reporting requirements before they can file a mechanic’s lien. Within 60 days after commencing work on the property, they must provide a notice to the property owner specifying the name and address of the subcontractor, the type of work to be performed or the materials to be provided, the date work began, and the name of the contractor who hired the subcontractor. 

A mechanic’s lien can be removed when the claimant releases the lien, usually after receiving payment. If a claim has been filed, but a lawsuit has not been commenced, a property owner can serve notice to the claimant requiring them to file a lawsuit within 30 days, and if the claimant fails to do so within that period, they will forfeit their rights to the lien.

Contact a Schaumburg Real Estate Attorney

If you need help resolving issues related to mechanic’s liens or other encumbrances during a real estate transaction, the attorneys of Drost, Gilbert, Andrew & Apicella, LLC can help you meet your legal requirements and work with you to complete your transaction successfully. Contact our Rolling Meadows real estate lawyers today at 847-934-6000 to arrange a personalized consultation.

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.



Sources:
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2254&ChapterID=63
http://www.gorequire.com/blog/understanding-mechanics-liens-what-they-are-and-how-they-impact-property-title

Buying a Foreclosed Rental Property in Chicago? Think Twice!

Web Admin - Friday, April 22, 2016

foreclosed rental property, Illinois Real Estate Lawyers During the Great Recession, and the slow recovery thereafter, thousands of property foreclosures occurred across the country. Some individuals who were most affected by these foreclosures were renters living in a home or other dwelling where the landlord's property was foreclosed. 

In response to the harm that renters were suffering in Chicago, the Windy City specifically enacted an ordinance to help protect renters from foreclosure on properties located in the City of Chicago. 

The Keep Chicago Renting Ordinance was specifically crafted to help protect renters from foreclosures, and placed substantial obligations on landlords/property owners. However, anyone who is considering buying a foreclosed rental property in Chicago should be advised of these obligations under the law, and should be fully appraised of the potential consequences they could face as the new owner of the property. 

If you are considering purchasing a Chicago property for rental purposes, consider discussing your situation with a lawyer as soon as possible.

The Keep Chicago Renting Ordinance was enacted in the fall of 2013 and revised in the spring of 2015. When the ordinance was originally created, it carved out many protections for renters, but the amendments went further to strengthen and increase those protections. Many obligations are put onto any new owner who purchases the foreclosed rental property. 

Requirements for the Purchasing Landlord

New owners of a foreclosed rental property have many obligations to tenants under the Keep Chicago Renting Ordinance. Some of these obligations include:

- Providing written notice of new ownership to tenants. When a new owner takes over a foreclosed rental property, the new owner must provide written notice to all tenants. The notice must inform tenants of the change in ownership due to the foreclosure, identify the new owner, establish where to pay rent and how to request repairs, and must detail tenants’ rights under the Keep Chicago Renting Ordinance (an English, Spanish, Polish and Chinese translation of the Ordinance must be provided). Notice must be given within 21 days of taking ownership, or within seven days of learning a tenant’s identity. The notice can be hand delivered (to tenants over the age of 13) or mailed to the tenant’s address, and an additional notice must be posted on the primary entrance to the property. New owners must collect tenant disclosure forms. 

- Collecting tenant disclosure forms from all tenants. New owners must decide to keep renting to a tenant or to offer relocation assistance. A new owner can decide if a tenant will stay or go after gaining ownership of the property. Within 21 days of taking ownership, the owner must provide tenants with a form requesting information about the tenant. Upon return of the form from the tenant, the owner has 21 days to decide if the tenant will stay or go and must notify the tenant of the decision. 

- If the decision is to let the tenant stay, then the owner must provide the tenant with a renewal or extension of their rental agreement. Any rent increase cannot be more than 2 percent. 

- If the decision is that the tenant must go, then the owner is obligated to provide qualified tenants with a relocation fee of $10,600 within a week of the tenant vacating the rental property. 

These are just a few consideration potential buyers of foreclosed rental properties should consider. If you would like to discuss what legal obligations you might have to tenants of a foreclosed rental property upon assuming ownership, you can discuss your concerns with the skilled Illinois real estate lawyers at our firm. We serve the communities of Schaumburg, Des Plaines, Riverwoods, Kenilworth, Long Grove, Rolling Meadows, Barrington, Arlington Heights, Inverness, and Deer Park. Please call 847-934-6000 to speak to a member of our team.

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.


Sources:
http://www.cityofchicago.org/content/dam/city/depts/bldgs/general/Tenant%20Ordinance/Keep_Chicago_Renting_Ord.pdf
https://chicago.legistar.com/View.ashx?M=F&ID=3706622&GUID=A2C5368B-910F-4485-BD73-116F5F10374C

Forcible Entry and Detainer Actions

Web Admin - Friday, October 09, 2015

Illinois real estate attorney, forcible entry, eviction noticeIn some disputes involving a rental of property, it is possible for a landlord to evict a tenant. In order to successfully evict a tenant, the landlord must comply with the laws governing eviction proceedings. These laws are intended to provide for a means of obtaining evictions, while simultaneously protecting tenants from unjustified eviction attempts. 

Eviction Process 

Pursuant to Illinois law, under certain circumstances, it is possible for a landlord to file a claim, known as a forcible entry and detainer lawsuit, to evict a tenant. Some of the reasons a landlord may be justified in seeking eviction include, but are not limited to, the following: 

1. Failure to pay rent;

2. Violation of the lease terms; or

3. Remaining in the property after the agreed upon lease term has passed. 

In some cases when issues arise, the tenant may voluntarily leave the property. However, if the tenant refuses to relinquish the property, the landlord may be forced to file a forcible entry and detainer lawsuit to initiate eviction proceedings. The first step in the process is to serve notice on the tenant of the intention to terminate the lease. The best way to satisfy the service requirement is to personally hand the tenant the notice. Alternatively, it can be left with someone that lives in the property who is at least 13 years of age. The notice requirement is not satisfied if the notice is left with a guest or visitor to the property. 

If personal notice is not possible, constructive notice is also sufficient. Constructive notice can be accomplished by mailing it by certified or registered mail, return receipt requested. If there is no one in actual possession of the property, the notice can be attached to the property. After notice has been properly served and the issue has not been corrected or the tenant has not moved out, the lawsuit to evict can be filed.

A forcible entry and detainer claim seeks to obtain an “Order for Possession” from the court, which grants the landlord the right to take possession of the property. If the Order for Possession is granted, in most cases, the court will also grant a “stay of enforcement” in order to give the tenant time to find a new place to live. After the stay expires, the Sheriff’s Department will assist the landlord in removing the tenant from the property. 

In addition to the claim for the property, the landlord can join a claim to obtain rent due. However, if constructive notice was used to satisfy the service requirement and the tenant does not appear, the court can only rule on the possession claim and not whether any rent should be paid to the landlord. If the possession claim is decided, it is final, enforceable, and appealable. If the landlord wishes to continue with the rent claim, it remains pending. 

Real Estate Attorneys

Unfortunately, disputes between landlords and tenants do arise. When those issues are significant enough, eviction of the tenant may be sought. If you have questions about the rental of property, contact an experienced Illinois real estate attorney today. Our firm provides representation for individuals located throughout the northwest suburbs, including the communities of Long Grove, Arlington Heights, Schaumburg, Palatine, Inverness, Kenilworth, Riverwoods, Barrington, South Barrington, and Mount Prospect. 

About the Author: Founding partner of Drost, Gilbert, Andrew & Apicella, LLC, Colin Gilbert, received his J.D. from Chicago-Kent College of law in 2005. Colin argues cases across many practice areas including criminal defense, collections, civil litigation, real estate law, and corporate law. Colin is an active member of the Board of Governors of the Northwest Suburban Bar Association and the Illinois Creditors Bar Association. He is currently Vice President of the Arlington Heights Chamber of Commerce, and is a Commissioner for the Village of Arlington Heights. Colin has a 10.0 Attorney rating on Avvo, and was named one of the 2014 “Top 40 Under 40” Trial Lawyers in Illinois by the National Trial Lawyers Association.

Source:

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=073500050HArt%2E+IX&ActID=2017&ChapterID=56&SeqStart=66600000&SeqEnd=74400000


Considerations for Owning a Vacation Home

Web Admin - Monday, August 31, 2015

Illinois real estate lawyerWhen owning a vacation home, there are several issues that need to be considered, including estate planning, how the property will be owned, and potential tax implications. If you plan on purchasing a vacation home with a friend or a family member, deciding how the property will be owned is important. Ordinarily, this type of ownership is what is known as tenancy in common. Under a tenancy in common ownership, each owner is named on the deed, along with each owner’s respective ownership percentage.

An alternative is for all of the prospective owners to form a limited liability company (LLC) and have it purchase and own the home. While this does create the additional task of forming the LLC, the individual assets of each member of the LLC are protected. A disadvantage is that the individuals of the LLC cannot claim property tax or mortgage interest deductions.

Tax Issues

The capital gains tax applies to the portion of the proceeds (upon the sale of a home) that exceeds the purchase price of the property plus the cost of any improvements made. For most taxpayers, the tax rate for long-term capital gains is 15 percent. An important provision of the tax code is the primary residence exclusion to the capital gains tax. This exclusion allows for married couples to exclude up to $500,000 ($250,000 for single owners) in capital gains for the sale of a principal residence.

Critically, the home must have been the principal residence (where you and your spouse live) for two of the last five years. This period does not need to be consecutively; rather, the home must have been the principal residence for a total of 24 months out of the last five years. The primary residence exclusion can be used multiple times, but cannot be used more than once every two years.

In relation to vacation homes, ordinarily the primary residence exclusion cannot be used (as a vacation home is normally not the principal residence). However, if the vacation home is established as the principal residence (by satisfying the two out of the past five year rule), the exclusion can be used. This may be very beneficial if a vacation home significantly increased in value.  

Passing Home to Heirs

Often, owners of vacation homes desire to keep those homes within the family. As a result, this requires planning for how the home will be passed down. There are numerous different methods of leaving property to a beneficiary. Each of those methods has different advantages and disadvantages. It is important to keep in mind that the following only briefly describes just three of the methods for passing on property. For more detailed information about estate planning, you should speak with an attorney.

For example, property can be passed to children or other heirs upon the owner’s death. This creates a step-up in basis for the beneficiary, which is a large advantage should the beneficiary sell the property. It also allows for the owner to retain complete control until death. However, it is not a tax-friendly option for the owner.

Alternatively, an owner can give the property as an outright gift. Under this method, the owner transfers the property by deed to the beneficiary. This accomplishes an immediate transfer of ownership. However, the federal gift tax limits the amount that can be transferred. Additionally, the step-up in basis is lost.

Finally, one option that is becoming more popular is to place the property into a trust for named beneficiaries. Under this plan, the owner reserves the right to use the property for a specified period of time. After the trust term expires, the beneficiaries take ownership of the property, with significantly reduced, or eliminated, federal and state taxes. Critically, for this method to work, the person who formed the trust must out-live the trust term.

For more information about the ownership of a vacation home, reach out to an experienced Illinois real estate attorney today. Our firm proudly represents individuals throughout the northwest suburbs, including the communities of Inverness, South Barrington, Arlington Heights, Long Grove, Mount Prospect, Riverwoods, Schaumburg, and Kenilworth.

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.

Issues in Commercial Leases

Web Admin - Tuesday, April 07, 2015

commercial leases in Illinois, Inverness commercial real estate lawyerA key to the development of a successful business is finding the best possible location in which to set up your company. This is especially true when the nature of the company necessitates that the customer visit the business space. In order to obtain space, it is common for a company to enter into a commercial lease. Business owners should be aware of issues related to commercial leases when it comes time to negotiate and agree to the lease agreement.

What to Look for in Commercial Leases

A commercial lease is a contract between a business and a landlord for the rental of space in a building. Importantly, property is zoned for specific purposes, which may differ from what the landlord is advertising the space for or what the previous tenant used the space for. A property can be zoned for different types of uses, such as residential, commercial, or industrial. What the property is zoned for will determine the type of activities that can be conducted in the rental space. For example, the Schaumburg zoning ordinance divides the village into zones or districts and places restrictions on permitted uses within those designated areas. Therefore, a property owner should check with the local zoning authority to determine what the space is zoned for.

The length of a commercial lease is an important issue to resolve. For a business in its initial stages, the risk of failure is high. As a result, entering into a lengthy lease term is usually not advisable, particularly if the agreement contains an acceleration clause. An acceleration clause gives the landlord the ability to request the entire unpaid rental amount for the remainder of the lease term. A long lease term puts the company at the risk of being obligated to pay a substantial amount of money for space that it is no longer using.

For new businesses, negotiating for shorter lease terms with several renewal options can help address the possibility of the business failing. Another great option is to negotiate for an escape clause that frees the business from the rental agreement in the event the business fails. Alternatively, longer lease terms may be perfectly suitable for more established businesses. Longer lease terms can be helpful because the location of the rental space can provide value, particularly if customers frequently visit, as, for example, in the case of a restaurant or retail store.

Other Issues

Some other issues that should be addressed in the lease agreement include:

  1. 1. The right to place signs in and/or on the rental space;
  2. 2. Whether common areas or facilities (like restrooms) can be accessed by employees and customers; and
  3. 3. Whether parking areas can be used by employees and customers.

If these issues are not specifically addressed in the agreement, it is likely they will require the consent of the landlord, which may not be granted. Therefore, it is important to resolve these issues before entering the agreement.

It is important to keep in mind that these are only a few of the considerations when negotiating a commercial lease. If you are in the process of searching for commercial space, contact an experienced Illinois commercial real estate attorney today. Drost, Gilbert, Andrew & Apicella, LLC represents clients in locations such as Inverness, Palatine, and Schaumburg.

About the Author: Founding partner of Drost, Gilbert, Andrew & Apicella, LLC, Colin Gilbert, received his J.D. from Chicago-Kent College of law in 2005. Colin argues cases across many practice areas including criminal defense, collections, civil litigation, real estate law, and corporate law. Colin is an active member of the Board of Governors of the Northwest Suburban Bar Association and the Illinois Creditors Bar Association. He is currently Vice President of the Arlington Heights Chamber of Commerce, and is a Commissioner for the Village of Arlington Heights. Colin has a 10.0 Attorney rating on Avvo, and was named one of the 2014 “Top 40 Under 40” Trial Lawyers in Illinois by the National Trial Lawyers Association.

Homestead Rights in Illinois

Web Admin - Thursday, October 23, 2014

homestead rights in Illinois, Palatine estate planning lawyerWhile there are many well known government programs and policies designed to provide relief during difficult economic times, there are other laws people can take advantage of that are less commonly talked about. One of these laws is known as “homestead rights.” Homestead rights are a protection provided by Illinois law that provide certain immunities from debt collection efforts by creditors. However, these immunities are not absolute, so it is important for people exercising their homestead rights to understand the exact limitations of those rights.

What Homestead Rights Are

Homestead rights are a statutory protection against creditors designed to help people avoid becoming homeless because of changing economic circumstances. The rights allow the debtor to exempt $15,000 worth of real estate from the collection efforts of creditors or their agents. Additionally, if a married couple owns the home, then they can pool their homestead rights together to protect the same house. This gives them an exemption of $30,000. This exemption also survives the death or desertion of a spouse. The exemption can also be passed down to the children of the married couple, at least until the youngest child turns 18.

Illinois' homestead laws are also slightly different than the laws in some other states. Many states choose to restrict the amount of acreage that a person can use the homestead exemption on in addition to capping the total value of the property. Illinois has no such acreage cap. This means that the size of the property is irrelevant to the homestead rights, and that it is purely an issue of how much the land is worth.

What Homestead Rights Do Not Protect

Notably, homestead rights do not provide absolute protection against every type of creditor. For instance, the state legislature wrote an exception into the protection for the purposes of state taxes, so if the creditor is the state of Illinois then the exemption does not apply. Similarly, homestead rights are created by state law, which federal law can supersede, so they provide no protection against the federal government's collecting taxes either. The rights also do not function in many circumstances where the money owed is related to the property itself. A person who uses the house as collateral for a mortgage does not get protection if their home is being foreclosed. Additionally, if the person owes money to contractors for doing work on the home, then the homestead rights do not apply to those debts. Further, the homestead rights can be signed away in writing, which would also remove their protection.

If you have questions about your homestead rights or some other property interest, talk to an experienced Palatine, Illinois estate planning attorney today. Our firm helps clients in many northwest suburban towns including Barrington, Long Grove, and Arlington Heights.

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.

New Realtor Form Contract Comes into Use

Web Admin - Thursday, August 14, 2014

IRELA new real estate formThe Illinois Real Estate Lawyers Association (“IRELA”), along with a variety of other real estate organizations, maintains a form contract for realtors and their clients to use when selling a home. The IRELA recently released their new version of this, known as the Multi-Board Residential Real Estate Contract version 6.0, and this new contract is now in use. The new version makes a variety of changes to the old 5.0 version, many of which are technical or procedurally based. However, the contract does have some new language of which buyers and sellers should be aware.

The contract now allows for more options when dealing with escrow during the closing. It also changes how professional inspections work, requiring sellers to request portions of inspection reports. The new contract also alters how the timeline for mortgage financing affects the seller’s ability to back out of the deal. Finally, the contract changes the seller's responsibilities as far as disclosing potential issues with the home. Importantly, these are just some of the changes made during the board's updating of the contract. It is important that you consult with a real estate attorney during any real estate transaction to make sure you understand the scope of the new contract.

Version 6.0 Changes

The new 6.0 version of the Multi-Board contract contains a variety of changes from the earlier 5.0 document. First, the 6.0 document contains a new paragraph regarding who holds on to the buyer's earnest money until the closing goes through. In the prior contract, options were only available for the buyer's broker or the seller's broker to manage that. Now, the contract allows for third parties, like title companies, to hold the money in escrow.

The new contract also modifies how buyers can void the contract after a failed inspection. The contract allows buyers to hire professional inspectors to check the house for problems like radon or insect infestations. If the inspectors discover such an issue, then the buyer has the option of voiding the sale contract. However, the new 6.0 version allows the seller to request the portion of the report that the buyer is using as grounds for cancellation.

The updated document also alters the timeline for the buyer to obtain mortgage financing. The old contract used to require a “firm written commitment” from the bank that financing would be forthcoming. However, banks seldom issue such statements quickly, so the new version merely requires the buyer to prove that they have submitted the loan for underwriting by a certain date, and that the bank has given them clearance to close by another date.

The contract also requires the seller to make a variety of representations to the buyer, such as stating that the home is not currently subject to a boundary line dispute. The new 6.0 version of the contract adds extra notification duties to the seller, forcing them to make all the same representations again at closing, which means that any changed circumstances would require an update.

Contact Our Real Estate Lawyers Today

If you are currently looking to buy a new house or another piece of property, contact an experienced Illinois real estate attorney today. At Drost, Gilbert, Andrew & Apicella, LLC, our team of skilled professionals counsels clients in towns all over the northwest suburbs, including in Arlington Heights, Long Grove, and South Barrington.

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.

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.


Recent Posts


Tags

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

Archive