Article Guide
The Illinois Realtor Contract form is a crucial document in the real estate transaction process, serving as a binding agreement between the buyer and seller. This contract outlines the essential details of the property being sold, including its location, dimensions, and the agreed-upon purchase price. Both parties, the purchaser and the seller, have specific obligations that are clearly defined within the document. The seller commits to convey the property through a recordable deed, while the purchaser agrees to pay earnest money, which is typically applied toward the purchase price. Additionally, the contract addresses important aspects such as the payment structure, the handling of taxes and assessments, and the timeline for closing. It also includes provisions for potential title issues, ensuring that the buyer receives clear ownership without unpermitted exceptions. With stipulations regarding broker commissions and the requirements for surveys and title commitments, this form is designed to protect the interests of both parties and facilitate a smooth transaction. Understanding these elements is vital for anyone involved in buying or selling property in Illinois.
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CHICAGO TITLE INSURANCE COMPANY
REAL ESTATE SALE CONTRACT
ILLINOIS FORM B *
1._______________________________________________________________________________________________(Purchaser) agrees to purchase at a price of $ __________________________________ on the terms set forth herein, the following described real estate in ___________________ County, Illinois:
commonly known as _____________________________________________________________________, and with approximate
lot dimensions of ______________ x ______________, together with the following property presently located thereon:
2.(Seller) agrees to sell the real estate and the property described above, if any, at the price and terms set forth herein, and to convey or cause to be conveyed to Purchaser or nominee title thereto by a recordable ____________________________ deed, with release of homestead tights, if any, and a proper bill of sale, subject only to: (a) covenants, conditions and restrictions of record; (b) private, public and utility easements and roads and highways, if any; (c) party wall rights and agreements, or any; (d) existing leases and tenancies (as listed in Schedule A attached); (e) special taxes or assessments for improvements not yet completed, (f) installments not due at the date hereof of any special tax or assessment for improvements heretofore completed; (g) mortgage or trust deed specified below, if any; (h) general taxes for the year _______________ and subsequent years including taxes which may accrue by reason of new of additional improvements during the year(s) ______________; and to
3.Purchaser has paid $ _____________________ as earnest money to be applied on the purchase price, and agrees to pay or satisfy the balance of the purchase price, plus or minus prorations, at the time of closing as follows: (strike language and subparagraphs not applicable)
(a)The payment of $ __________________
(b)The payment of $ _______________________________________ and the balance payable as follows:
to be evidenced by the note of Purchaser (grantee), providing for full prepayment privileges without penalty, which shall be secured by a
Nos. _______________,** and by a security agreement (as to which Purchaser will execute or cause to be executed such financing
statements as may be required under the Uniform Commercial Code in order to make the lien created thereunder effective), and an assignment of rents, said security agreement and assignment of rents to be in the forms appended hereto as Schedules C and D. Purchaser shall furnish to Seller an American Land Title Association loan policy insuring the mortgage (trust deed) issued by the Chicago Title Insurance Company.
(**If a Schedule B is not attached and the blanks are not filled in, the note shall be secured by a trust deed, and the note and trust deed shall be in the forms used by The Chicago Trust Company.)
(c).The acceptance of the title to the real estate by Purchaser subject to a mortgage or trust deed of record securing a principal indebtedness (which the Purchaser [does] [does not] agree to assume) aggregating $ ____________________ bearing interest at the rate of __________% a year, and the payment of a sum which represents the difference between the amount due on the indebtedness at the time of closing and the balance of the purchase price.
4.Seller, at his own expense, agrees to furnish Purchaser a current plat of survey of the above real estate made, and so certified by the surveyor as having been made, in compliance with the Illinois Land Survey Standards.
5.The time of closing shall be on ____________________________ or on the date, if any, to which such time is extended by reason of paragraphs 2 or 10 of the Conditions and Stipulations hereafter becoming operative (whichever date is later), unless subsequently mutually agreed otherwise, at the office of ________________________________________________________ or of the mortgage lender, if any, provided title is shown to be good or is accepted by Purchaser.
6.Seller agrees to pay a broker's commission to _______________________________________________________________ in the amount set forth in the broker's listing contract or as follows:
7.The earnest money shall be held by ________________________________________________________________ for the mutual benefit of the parties.
8.Seller warrants that Seller, its beneficiaries or agents of Seller or of its beneficiaries have received no notices from any city, village or other governmental authority of zoning, building, fire or health code violations in respect to the real estate that have not been heretofore corrected.
9.A duplicate original of this contract, duly executed by the Seller and his spouse, if any, shall be delivered to the Purchaser within
____________ days from the date hereof, otherwise, at the Purchaser's option, this contract shall become null and void and the earnest money shall be refunded to the Purchaser.
This contract is subject to the Conditions and Stipulations set forth on the following pages, which Conditions and Stipulations are made a part of this contract.
Dated:
Purchaser:Address:
Purchaser:Address:
Seller:Address:
Seller:Address:
*Form normally used for sale of property improved with
ADV. VI.O R2/95 K3773
CONDITIONS AND STIPULATIONS
1.Seller shall deliver or cause to be delivered to Purchaser or Purchaser's agent, not less than 5 days prior to the time of closing, the plat of survey (If one is required to be delivered under the terms of this contract) and a title commitment for an owner's title insurance policy issued by the Chicago Title Insurance Company in the amount of the purchase price, covering title to the real estate on or after the date hereof, showing title in the intended grantor subject only to (a) the general exceptions contained in the policy, (b) the title exceptions set forth above, and (c) title exceptions pertaining to liens or encumbrances of a definite or ascertainable amount which may be removed by the payment of money at the time of closing and which the Seller may so remove at that time by using the funds to be paid upon the delivery of the deed (all of which are herein referred to as the permitted exceptions). The title commitment shall be conclusive evidence of good title as therein shown as to all matters insured by the policy, subject only to the exceptions as therein stated. Seller also shall furnish Purchaser an affidavit of title in customary form covering the date of closing and showing title in Seller subject only to the permitted exceptions in foregoing items (b) and (c) and unpermitted exceptions or defects in the title disclosed by the survey, if any, as to which the title insurer commits to extend insurance in the manner specified in paragraph 2 below.
2.If the title commitment or plat of survey (if one is required to be delivered under the terms of this contract) discloses either unpermitted exceptions or survey matters that render the title unmarketable (herein referred to as "survey defects"), Seller shall have
30days from the date of delivery thereof to have the exceptions removed from the commitment or to correct such survey defects or to have the title insurer commit to insure against loss or damage that may be occasioned by such exceptions or survey defects, and, in such event, the time of closing shall be 35 days after delivery of the commitment or the time expressly specified in paragraph 5 on the second page hereof, whichever is later. If Seller fails to have the exceptions removed or correct any survey defects, or in the alternative, to obtain the commitment for title insurance specified above as to such exceptions or survey defects within the specified time, Purchaser may terminate this contract or may elect, upon notice to Seller within 10 days after the expiration of the
3.Rents, premiums under assignable insurance policies, water and other utility charges, fuels, prepaid service contracts, general taxes, accrued interest on mortgage indebtedness, if any, and other similar items shall be adjusted ratably as of the time of closing. The amount of the current general taxes not then ascertainable shall be adjusted on the basis of (a), (b), or (c) below (Strike subparagraphs not applicable):
(a) ___________% of the most recent ascertainable taxes;
(b)The most recent ascertainable taxes and subsequent readjustment thereof pursuant to the terms of reproration letter attached hereto and incorporated herein by reference.
(c)[Other] _________________________________________________________________________________________________
The amount of any general taxes which may accrue by reason of new or additional improvements shall be adjusted as follows:
All prorations are final unless otherwise provided herein. Existing leases and assignable insurance policies, if any, shall then be assigned to Purchaser. Seller shall pay the amount of any stamp tax imposed by State law on the transfer of the title, and shall furnish a completed Real Estate Transfer Declaration signed by the Seller or the Seller's agent in the form required pursuant to the Real Estate Transfer Tax Act of the State of Illinois and shall furnish any declaration signed by the Seller or the Seller's agent or meet other requirements as established by any local ordinance with regard to a transfer or transaction tax; such tax required by local ordinance shall be paid by the party upon whom such ordinance places 'responsibility therefor. If such ordinance does not so place responsibility, the tax shall be paid by the (Purchaser) (Seller). (Strike one.)
4. The provisions of the Uniform Vendor and Purchaser Risk Act of the State of Illinois shall be applicable to this contract.
5.If this contract is terminated without Purchaser's fault, the earnest money shall be returned to the Purchaser, but if the termination is caused by the Purchaser's fault, then upon notice to the Purchaser, the earnest money shall be forfeited to the Seller and applied first to the payment of Seller's expenses and then to payment of broker's commission; the balance, If any, to be retained by the Seller as liquidated damages.
6.At the election of Seller or Purchaser upon notice to the other party not less than 5 days prior to the time of closing, this sale shall be closed through an escrow with Chicago Title and Trust Company, in accordance with the general provisions of the usual form of Deed and Money Escrow Agreement then in use by Chicago Title and Trust Company, with such special provisions inserted in the escrow agreement as may be required to conform with this contract. Upon the creation of such an escrow, anything herein to the contrary notwithstanding, payment of purchase price and delivery of deed shall be made through the escrow and this contract and the earnest money shall be deposited in the escrow. The cost of the escrow shall be divided equally between Seller and Purchaser. (Strike paragraph if inapplicable.)
7.Time is of the essence of this contract.
8.All notices herein required shall be in writing and shall be served on the parties at the addresses following their signatures. The mailing of a notice by registered or certified mail, return receipt requested, shall be sufficient service.
9.Alternative 1:
Seller represents that he is not a "foreign person" as defined in Section 1445 of the Internal Revenue Code and is therefore
exempt from the withholding requirements of said Section. Seller will furnish Purchaser at closing the Exemption Certification set forth in said Section.
Alternative 2:
Purchaser represents that the transaction is exempt from the withholding requirements of Section 1445 of the Internal Revenue Code because Purchaser intends to use the subject real estate as a qualifying residence under said Section and the sales price does not exceed $300,000.
Alternative 3:
With respect to Section 1445 of the Internal Revenue Code, the parties agree as follows:
(Strike two of the three alternatives.)
10.(A) Purchaser and Seller agree that the disclosure requirements of the Illinois Responsible Property Transfer Act (do) (do not) apply to the transfer contemplated by this contract. (If requirements do not apply, strike (B) and (C) below.)
(B) Seller agrees to execute and deliver to Purchaser and each mortgage lender of Purchaser such disclosure documents as may be required by the Illinois Responsible Property Transfer Act.
(C) Purchaser agrees to notify Seller in writing of the name and post office address of each mortgage lender who has issued a commitment to finance the purchase hereunder, or any part thereof; such notice shall be furnished within 10 days after issuance of any such commitment, but in no event less than 40 days prior to delivery of the deed hereunder unless waived by such lender or lenders. Purchaser further agrees to place of record, simultaneously with the deed recorded pursuant to this contract, any disclosure statement furnished to Purchaser pursuant to paragraph 10(B) and, within 30 days after delivery of the deed hereunder, to file a true and correct copy of said disclosure document with the Illinois Environmental Protection Agency.
Form Specifications
| Fact Name | Description |
|---|---|
| Governing Law | The Illinois Realtor Contract form is governed by the laws of the State of Illinois, including the Illinois Real Estate License Act and the Uniform Vendor and Purchaser Risk Act. |
| Earnest Money | The contract typically requires the Purchaser to provide earnest money, which serves as a good faith deposit towards the purchase price of the property. |
| Title Insurance | Purchasers must obtain an American Land Title Association loan policy from the Chicago Title Insurance Company to insure the mortgage or trust deed. |
| Closing Timeline | The closing date is set on a specific date or may be extended, ensuring both parties have clarity on when the transaction will be finalized. |
| Disclosure Requirements | The Illinois Responsible Property Transfer Act may impose certain disclosure requirements, which the Seller must comply with during the transaction. |
Illinois Realtor Contract: Usage Guidelines
Completing the Illinois Realtor Contract form requires careful attention to detail. Each section must be filled out accurately to ensure clarity and compliance with the terms agreed upon by both parties. Following the steps outlined below will assist in properly completing the form.
- Begin by entering the name of the Purchaser in the designated space at the top of the form.
- Specify the purchase price in the appropriate field.
- Indicate the county where the real estate is located.
- Provide the common name of the property being purchased.
- Fill in the approximate lot dimensions in the specified format.
- List any additional property included in the sale, if applicable.
- Enter the name of the Seller and confirm their agreement to sell the property at the stated price and terms.
- Detail the type of deed that will be used for the title transfer.
- Specify any existing conditions or restrictions that apply to the property.
- Record the amount of earnest money paid by the Purchaser.
- Outline the payment structure for the remaining balance of the purchase price.
- Indicate whether the Purchaser agrees to assume any existing mortgage or trust deed.
- Ensure that the Seller agrees to provide a current plat of survey.
- Set the date for closing and the location where it will take place.
- State the broker's commission details, if applicable.
- Identify who will hold the earnest money.
- Confirm that the Seller has received no notices of code violations.
- Specify the timeline for delivering a duplicate original of the contract to the Purchaser.
- Both parties should sign and date the contract in the designated areas.
Your Questions, Answered
What is the purpose of the Illinois Realtor Contract form?
The Illinois Realtor Contract form is used to facilitate the sale of real estate in Illinois. It outlines the terms and conditions under which the seller agrees to sell and the purchaser agrees to buy a specified property. The form includes details such as the purchase price, property description, and responsibilities of both parties, ensuring clarity and legal protection throughout the transaction process.
What information is required to complete the contract?
To complete the Illinois Realtor Contract form, several key pieces of information are necessary. This includes the names of the purchaser and seller, the purchase price, the description of the property, and the closing date. Additionally, details regarding earnest money, any existing mortgages, and the broker's commission must also be provided. Accurate and complete information is essential to avoid disputes and ensure a smooth transaction.
What happens to the earnest money if the contract is terminated?
If the contract is terminated without the fault of the purchaser, the earnest money will be returned to them. However, if the termination is due to the purchaser's fault, the seller may retain the earnest money. This retained amount is typically applied to the seller's expenses and broker's commission, with any remaining balance considered liquidated damages. Understanding this provision is crucial for both parties to manage their financial risks effectively.
What are the seller's obligations regarding title and survey?
The seller is obligated to provide the purchaser with a current plat of survey and a title commitment for an owner's title insurance policy. These documents must be delivered at least five days before closing. If any issues arise from the title commitment or survey, the seller has 30 days to resolve them. Failure to do so may allow the purchaser to terminate the contract or proceed with the purchase while deducting any identified liens or encumbrances from the purchase price.
How are taxes and utility charges handled at closing?
At closing, various charges such as rents, utility bills, and general taxes are adjusted ratably. The parties agree on how to handle the amounts of current general taxes that are not ascertainable. This ensures that both the seller and purchaser are fairly compensated for any financial obligations related to the property up to the closing date. Proper prorations are essential for a transparent and equitable transaction.
Common mistakes
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Incomplete Information: One of the most common mistakes is failing to fill in all required fields. This includes not providing the full name of the purchaser, the complete address of the property, or the sale price. Incomplete information can lead to delays or complications in the transaction.
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Neglecting Earnest Money Details: Many individuals overlook the specifics regarding earnest money. It's crucial to clearly state the amount of earnest money being paid and who will hold it. Ambiguities in this section can create disputes later on.
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Ignoring Title and Survey Requirements: Failing to address the title commitment and survey requirements can be a significant oversight. Sellers must provide a title commitment and a current plat of survey. Not adhering to these requirements may result in unmarketable title issues.
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Missing Signatures: A simple yet critical error is neglecting to obtain all necessary signatures. Both the seller and purchaser must sign the contract, and if applicable, their spouses must also sign. Missing signatures can render the contract void.
Documents used along the form
The Illinois Realtor Contract form serves as a foundational document in real estate transactions, detailing the terms of sale between a buyer and a seller. Alongside this contract, several other forms and documents are commonly utilized to ensure a smooth transaction. Each document plays a specific role in addressing various aspects of the sale, from financing to title insurance. Below is a list of these essential documents.
- Title Commitment: This document outlines the current status of the property's title and identifies any liens or encumbrances that may affect ownership. It is crucial for ensuring that the buyer receives clear title to the property.
- Plat of Survey: A plat of survey provides a detailed map of the property, including its boundaries and any existing structures. It is often required to confirm that the property's dimensions match what is being sold.
- Earnest Money Agreement: This agreement specifies the amount of earnest money the buyer will deposit to demonstrate their commitment to the purchase. It outlines how this money will be handled in case the deal falls through.
- Disclosure Statements: These documents inform the buyer about any known issues with the property, such as zoning violations or environmental hazards. They help ensure transparency in the transaction.
- Real Estate Transfer Declaration: This form is required by the state to report the transfer of property and may include information about the sale price and the parties involved. It is essential for tax purposes.
- Loan Commitment Letter: If the buyer is financing the purchase, this letter from the lender confirms that they are approved for a mortgage, detailing the loan amount and terms.
- Broker's Listing Agreement: This document outlines the relationship between the seller and their real estate broker, including the broker's commission and the duration of the listing period.
- Closing Statement: This statement summarizes all financial transactions related to the sale, including closing costs, prorated taxes, and the final purchase price. It provides a clear breakdown of what each party owes or will receive at closing.
- Escrow Agreement: If an escrow service is used, this agreement details the terms under which the escrow agent will hold funds and documents until the sale is finalized.
These documents, when used in conjunction with the Illinois Realtor Contract form, help facilitate a comprehensive and legally sound real estate transaction. Understanding each of these forms is essential for both buyers and sellers, ensuring that all parties are well-informed and protected throughout the process.
Similar forms
Residential Purchase Agreement: Similar to the Illinois Realtor Contract, this document outlines the terms of sale between a buyer and seller for residential properties. It includes details such as purchase price, property description, and closing date.
Commercial Purchase Agreement: Like the Illinois Realtor Contract, this agreement is used for commercial real estate transactions. It covers similar elements, including earnest money and contingencies related to the property.
Lease Agreement: This document shares similarities with the Illinois Realtor Contract in that it specifies the terms under which a property can be rented, including duration, payment terms, and responsibilities of both parties.
Listing Agreement: This contract outlines the relationship between a seller and a real estate agent. It is similar in that it details the terms under which the agent will market the property, including commission and duration of the agreement.
Option Agreement: This document allows a buyer the right to purchase a property at a later date, similar to the Illinois Realtor Contract in that it specifies terms and conditions for the eventual sale.
Real Estate Purchase and Sale Agreement: This is a broader term that encompasses agreements like the Illinois Realtor Contract, detailing the sale of real estate with similar clauses regarding title, earnest money, and closing.
Joint Venture Agreement: This document may be used in real estate transactions involving multiple parties. It is similar in its structure and stipulations regarding contributions and profit-sharing.
Deed of Trust: While primarily a financing document, it is similar in that it outlines the terms of securing a loan with real estate, including the rights and obligations of the borrower and lender.
Real Estate Development Agreement: This document is similar as it outlines the terms for developing a property, including timelines, financing, and responsibilities of involved parties.
Seller Financing Agreement: This agreement allows the seller to finance the buyer’s purchase. It shares similarities with the Illinois Realtor Contract in terms of payment structure and responsibilities outlined for both parties.
Dos and Don'ts
- Do read the entire contract carefully before filling it out to ensure understanding of all terms.
- Do provide accurate information in all fields, including names, addresses, and financial details.
- Do consult with a real estate attorney or a qualified professional if you have questions about the contract.
- Do ensure that all required signatures are obtained from all parties involved in the transaction.
- Don't leave any fields blank; if a section does not apply, clearly indicate that it is not applicable.
- Don't rush through the process; take the time needed to review each section thoroughly.
- Don't assume that verbal agreements or understandings are legally binding; they should be documented in the contract.
- Don't forget to keep a copy of the completed contract for your records after it is signed.
Misconceptions
- Misconception 1: The Illinois Realtor Contract is only for residential properties.
- Misconception 2: Earnest money is non-refundable in all situations.
- Misconception 3: The Seller is responsible for all repairs before closing.
- Misconception 4: Closing dates are flexible and can be changed at any time.
- Misconception 5: The Seller must provide a survey of the property.
- Misconception 6: Title insurance is optional for the Purchaser.
- Misconception 7: The contract automatically voids if any conditions are not met.
- Misconception 8: The broker's commission is always paid by the Seller.
- Misconception 9: The Purchaser can assume any existing mortgage without consent.
- Misconception 10: All notices must be delivered in person.
This form is commonly used for various types of properties, including multi-family structures and commercial or industrial properties. It is not limited to residential transactions.
Earnest money can be returned to the Purchaser if the contract is terminated without the Purchaser's fault. It is essential to understand the specific circumstances under which the earnest money may be forfeited.
The contract does not automatically obligate the Seller to make repairs. It is important to clarify any repair responsibilities in the contract terms.
While there may be some flexibility, the contract specifies a closing date. Any changes must be mutually agreed upon by both parties.
A survey is only required if specified in the contract. If it is not mentioned, the Seller is not obligated to provide one.
Title insurance is typically required to protect the Purchaser's interests. The contract often includes provisions for obtaining title insurance as part of the closing process.
While certain conditions can lead to termination, the contract outlines specific procedures and timeframes that must be followed before it can be declared null and void.
The responsibility for the broker's commission can vary and is determined by the terms set forth in the broker's listing contract or the agreement between the parties.
The contract specifies whether the Purchaser agrees to assume any existing mortgage. Consent from the Seller is often required for assumption.
Notices can be served by mailing them through registered or certified mail. This method is deemed sufficient for legal communication between parties.
Key takeaways
- Understand the Parties Involved: The contract involves a Purchaser and a Seller, each with specific responsibilities and rights outlined in the agreement.
- Accurate Property Description: Clearly describe the property being sold, including its location and dimensions. This ensures all parties know exactly what is being transferred.
- Earnest Money: The Purchaser must provide earnest money, which is a deposit showing their commitment to the purchase. This amount is applied to the purchase price at closing.
- Title and Deed: The Seller is responsible for providing a clear title to the property, which includes delivering a recordable deed at closing.
- Closing Date: The contract specifies a closing date, which can be extended under certain conditions. It is essential to meet this deadline to finalize the sale.
- Broker's Commission: If a broker is involved, the Seller agrees to pay their commission as outlined in the listing contract.
- Survey Requirements: The Seller must provide a current plat of survey, ensuring the property boundaries are clearly defined and compliant with state standards.
- Conditions for Title Commitment: The Seller must deliver a title commitment showing the property's title is clear of defects, or they must resolve any issues within a specified timeframe.
- Tax Adjustments: The contract includes provisions for prorating taxes and other expenses at the time of closing, ensuring fair financial adjustments between parties.
- Legal Compliance: Both parties must adhere to local and federal regulations, including the Illinois Responsible Property Transfer Act, which may impose additional disclosure requirements.