illonois law to have a lawyer when selling a house

Does Illinois require a lawyer at closing?

Although Illinois law does not require a real estate attorney to be present at closings, hiring an attorney when buying or selling your home is almost always a wise decision.Nov 16, 2020

Is Illinois an attorney closing state?

Idaho: Real estate attorneys are not essential for closing but may be advised by your real estate agent. Illinois: Real estate attorneys are not essential for closing but may be advised by your real estate agent; in Chicago, however, attorneys typically review and approve title documents.Apr 30, 2021

Do you need an attorney to sell a house?

Except for a few states where you are required to hire a real estate attorney to do your closing, you do not have to hire an agent or attorney to help you. Be aware, however, selling a home yourself is a lot of work.

What are attorney fees for closing a house in Illinois?

In Illinois, attorneys are an absolutely indispensable part of the closing process, taking care of lots of essential paperwork and contract negotiations. Be ready to pay between $400 and $850 in attorney's fees, depending on the type of home being sold.Jul 19, 2018

Is Illinois an attorney state?

Are You In An Attorney State?StateAttorney State?Georgia​​Yes - Attorney StateHawaii​​Yes - Attorney StateIdahoNoIllinoisNo47 more rows•Jan 4, 2022

When should I hire a real estate attorney?

A Lawyer for Real Estate will make sure that the seller has clear and transferable ownership right over the property that he or she is selling. There should be no pending litigation on the property and the title should be transferable.

How do you sell a house by owner?

How to Sell Your House For Sale By OwnerUnderstand FSBO pros and cons.Set a fair price.Prepare your house.Invest in marketing and advertising.Act like a professional.Ensure you have qualified buyers.Hire a real estate attorney.Don't rule out an agent.

Who pays real estate taxes at closing in Illinois?

Buyers of Existing Homes will be responsible for paying all real estate tax bills that come due after the closing date. Taxes in Illinois are paid in arrears, i.e., one year after they are assessed. Credits received from a Seller at a closing for taxes will be shown on your settlement statement.

Who pays closing costs in Illinois?

Seller closing costs are fees you pay when you finalize the sale of your home in Illinois. These include the costs of verifying and transferring ownership to the buyer and many are unavoidable. In Illinois, you'll pay about 1.8% of your home's final sale price in closing costs, not including realtor fees.Mar 1, 2022

What are typical closing costs for a seller in Illinois?

Overall, in a typical transaction, sellers can expect to pay around 8 percent of the sale price in total closing costs. This includes a 5 percent realtor commission, taxes and title-related fees. For example, on a $200,000 home, the seller can expect to pay around $16,000 in total closing costs.

What does it mean to tell a prospective buyer about defects in a home in Illinois?

This means anything you're aware of that affects the value, healthfulness, and safety of your property.

What is residential real property in Illinois?

The Illinois Residential Real Property Disclosure Act applies to "sellers" of "residential real property.". Both terms are defined in the law: "Residential real property" is property improved with one to four residential dwelling units, or an individual condominium or cooperative unit. A "seller" is any owner, or any beneficiary ...

What happens if you become aware of a defect in the property after delivery of the disclosure?

If you become aware of a defect in the property after delivery of the disclosure, you must send a supplemental disclosure to the buyer. ( 765 ILCS § 77/30 .)

What happens if you fail to disclose a contract?

If you fail to deliver the disclosure, the buyer may terminate the contract at any time before closing. If you knowingly deliver a disclosure that is incorrect or incomplete, you might be liable to the buyer for actual damages, court costs, and attorney's fees. (See 765 ILCS § 77/55 .) You may be held liable for false statements in a disclosure even if the buyer knew about the defects, although the buyer's knowledge may serve to reduce a damage award. (See Coughlin v. Gustafson, 772 N.E.2d 864 (Ill. App., 2002).)

What is the Illinois Radon Awareness Act?

The Illinois Radon Awareness Act, 420 ILCS § 46/1 et seq. , requires you to give two pamphlets about radon hazards to the buyer before the contract is signed. The first pamphlet is from the Illinois Emergency Management Agency and is entitled Radon Testing Guidelines for Real Estate Transactions.

Do you have to disclose a defect on an inspection report?

You have no duty to obtain an inspection to help you complete the disclosure form. That's because you need disclose only those defects within your actual knowledge. If a defect is listed on an existing inspection report, you should disclose it if it has not been fixed.

What is a listing agreement in Illinois?

Once you find a real estate agent you want to work with, you’ll sign a “listing agreement,” which gives the agent the right to market and handle the sale of your property. Most real estate agents use forms created by the Illinois Association of Realtors or a similar local realtor association.

What is disclosure form in Illinois?

State law in Illinois ( 765 Illinois Compiled Statutes Sections 77/5 and following) requires sellers to provide buyers a disclosure form, which contains details on known material defects that would affect the value of the property or health or safety of occupants, such as cracks in the foundation or a termite infestation.

What are contingencies in a home sale?

Common contingencies include the buyers’ successfully arranging loan financing, arranging and being satisfied with the results of a professional home inspection, and selling their current house. You may reject a buyer's offer outright, accept it as, or (as is more typical) respond with a counteroffer.

What does a good agent do?

A good agent will help prepare and price your house, market it to prospective buyers, review purchase offers, negotiate with buyers (or more realistically, with their agents), and otherwise help guide the deal toward closing.

Who is the escrow agent?

You will choose an escrow or title agent, a neutral third party that will serve as intermediary and supervise the process (possibly preparing title reports, as well as monitoring loan processing, removal of contingencies, and so on). The buyer typically has a lot more to do during this time period than the seller.

What is the closing of escrow?

By the close of escrow (known as the closing or settlement), you and the buyer should have fulfilled all the terms of your purchase agreement. The closing itself is sometimes a meeting of the parties, other times conducted in separate locations and even on different days.

Do you need a lawyer to sell a house in Illinois?

Working With an Illinois Real Estate Lawyer. Unlike in some states, Illinois law does not require that sellers involve a lawyer in the house-selling transaction. Even if it’s not required, you may decide to engage a lawyer at some point—for example, to review the final contract or to assist with closing details.

Why do you need an attorney?

An attorney can often help you avoid or minimize major risks in your contract if you have hired the attorney in a timely fashion. An Attorney can Advise you of Your Legal Obligations - if you are unaware of what legal promises you made in the contract, then you could risk being sued by the other party.

What can an attorney do?

An attorney can advise you of the legal promises you must perform and help you avoid a lawsuit or other action. An attorney can advise you of your rights in the contract. You may assume that you have the right to cancel the deal for a particular reason, or to post-pone the closing if you need more time to get a loan.

Can a real estate agent give legal advice?

A Real Estate Agent cannot give legal advice such as the legal ramifications of your Contract and your loan documents. Only a lawyer can give legal advice. A Real Estate Agent who is also a licensed Illinois Attorney cannot act in both roles/capacities when representing you.

What happens if you breach a contract?

If you or the other party breach the contract, then your lawyer can tell you what rights either of you may have, such as the right to bring a lawsuit against the other or to forfeit the buyer’s earnest money as liquidated damages. Protect Yourself. An attorney can often help you avoid or minimize major risks in your contract if you have hired ...

Can a real estate agent draft a contract?

A real estate agent can’t draft legal documents such as the Deed, Riders to the Contract, Attorney Approval letters, amendments to the extend the financing contingency in a contract, etc. The Supreme Court of Illinois ruled that Real Estate Agents can fill in blank lines on Standardized Contracts but cannot write in additional language, conditions, ...

Why do you need a real estate attorney?

Hiring a real estate attorney will significantly reduce the likelihood of post-closing disputes. Disputes can arise from ambiguities or mistakes in the contract, issues with the title, or problems with the condition of the property after it is received.

What are the obligations of a seller and buyer in real estate?

In a real estate deal, both the seller and the buyer have several obligations that must be met before closing. In addition to communications that must be made to one another, the parties are often required to work with the local municipality, lenders, homeowners associations, title companies, and the county tax assessor.

What happens if you miss a deadline in real estate?

Missed deadlines may allow the other party to back out of the deal and can sometimes lead to a loss of earnest money. An important part of a real estate attorney’s job is to make sure that these deadlines are met or that extensions are negotiated if necessary.

How long does it take to modify a realtor contract?

Realtors typically prepare a form contract when you agree to the purchase or sale of your home. However, these contracts typically provide for a 5-day modification period during which either side’s attorney can request modifications to the contract and revoke the contract if an agreement on such requested modifications is not reached. During this period, your attorney will explain the contract to you and make sure that the actual terms of the contract match your understanding of the deal. Your attorney will bring his or her experience to bear to ensure that the deal is fair to you. The goal is to protect your interests in case the deal falls through, unforeseen problems occur between contract and closing or after the closing, or disputes arise after closing. Often the attorney modification and review process will end up saving you significantly more than the cost of the attorney.

How to determine if an heir is inheriting a house in Illinois?

Determining whether an heir is inheriting a house in Illinois is a multi-step process. First, the type of ownership must be considered and then the terms of a will or intestate succession may need to be applied. In all cases it is best to hire a lawyer to help with the process and the cost of representation is minimal in most circumstances.

What are the rules for intestate succession in Illinois?

Illinois rules of intestate succession are set forth in 755 ILCS 5/2-1. In most families there will be close relatives of the decedent, so it is unlikely any heir beyond the third class will inherit. However, Illinois law was designed to cover all family structures and avoid property flowing to the state. My article that focuses on intestate succession addresses much more remote distribution rules and quirks. This section will provide an overview of the rules that come into play in most cases.

How to contest a will?

The validity of a will and contesting a will justifies its own series of articles, but for the purposes of this article the basic requirements of a valid will are: 1 The will must be in writing; 2 The testator (person who makes a will) must be of sound mind at the time of making the will; 3 The testator must be at least 18 years old at the time of making the will; 4 The will must be signed by the testator or by someone else at the testator’s direction and in the testator’s presence; 5 The will must be signed in the presence of at least two witnesses that are not beneficiaries of the will. They must sign in the presence of the testator and the presence of each other.

What is the first step in determining who inherits a house when someone dies?

The first, and often most important step in determining who inherits a house when someone dies (the person who died is called the “decedent”) is determining how the house was legally owned. The most common types of ownership are: sole ownership, tenancy in common, joint tenancy, tenancy by the entirety; and ownership in trust. Below, these types of ownership are discussed.

How old do you have to be to make a will?

The will must be in writing; The testator (person who makes a will) must be of sound mind at the time of making the will; The testator must be at least 18 years old at the time of making the will; The will must be signed by the testator or by someone else at the testator’s direction and in the testator’s presence;

Who is the trustee of a land trust?

In a land trust, a nominal owner serves as trustee for beneficiaries. Typically, the trustee is Chicago Title and Land Trust Company as it has taken become the successor trustee for many banks that have gone out of business or discontinued their land trust practices.

What is sole ownership?

Sole ownership is the most simple type of real estate ownership. The sole owner of real estate owns the house solely in his or her name with no co-owners. If a person dies, solely owned real estate transfers pursuant to the terms of the decedent’s will or, if no will, pursuant to the default rules for transfer of ownership called “intestate succession.”

Why do you need an attorney for real estate?

An attorney helps you protect your investment and assets while ensuring you’re conducting your side of the transaction legally — which can prevent costly missteps. Real estate attorneys are required in many states, but even if you aren’t legally required to use an attorney while selling, it can be a good idea.

What is a real estate attorney?

Real estate attorneys help oversee home sales, from the moment the contract is signed through the negotiating period (aptly called the “attorney review”) to closing. A seller’s attorney reviews sales contracts, communicates terms in a professional manner and attends closings to prevent mishaps. Selling a home is a complex process ...

How much does a real estate attorney charge?

How much does a real estate attorney cost? How much you’ll pay for real estate attorney fees depends on your market and how involved they are in the transaction, but they typically charge a flat rate of $800 to $1,200 per transaction. Some attorneys charge hourly, ranging from $150 to $350 per hour.

What to do if you inherited a home?

An attorney can help you navigate the complexities. Estate sale: If you inherited the home you’re selling, hiring an attorney to sort through ownership documents can ease the burden, which is especially helpful when you’re grieving the loss of a family member.

What is the job of a home inspector?

Their job is to make sure the buyer knows about everything that may need to be repaired on the home. Sellers also sometimes hire an inspector to do a pre-inspection so they can make any necessary repairs before putting the house on the market.

Do you need an attorney for a closing?

In 21 states and the District of Columbia, attorneys are legally required as part of the closing process. Attorney-required states include: As a best practice, if the other party in your transaction has a lawyer representing them and supporting their best interests, you should too.