Illinois real estate closing earnest money law

While there is no requirement to have legal representation, we strongly suggest you retain an attorney. The process of purchasing a home can appear to be "routine", however, there are many variables and pitfalls for which having experienced legal representation can significantly protect your interests.

It has been our experience that the legal cost of correcting errors that may result from not having legal representation, far out-weigh the cost of having had an attorney to begin with. Should an attorney review the contract prior to my signing it? We always recommend an attorney review any document prior to execution.

This provision allows the parties to get the property "under contract" while still protecting their rights to legal representation. The Seller will want as much earnest money as possible, while you, as the Purchaser, will want to put down as little as possible, so there is a little negotiation involved.

It has been our experience that the higher the purchase price the higher the earnest money. The range for earnest money is typically somewhere between one to four percent of the purchase price. In the event I do not close on the transaction, is my total exposure to damages limited to my earnest money? Assuming that your failure to close is a default ie, any contingencies have expired, and the failure is not caused by the Sellerdamages are not limited to earnest money.

These damages can certainly exceed the amount of earnest money put down on the transaction, plus the cost of the Seller's legal fees are sometimes awarded by the court. I have a loan pre-approval from my lender, do I need a financing contingency in my contract?

Illinois real estate closing earnest money law you should have a financing contingency. Most pre-approvals from lenders are merely an indication of your general credit worthiness, and is NOT a commitment to loan you money for the particular house you are buying. Depending on your specific circumstances, these fees can vary greatly. This list is offered as an example and not as a comprehensive final list.

The process of selling a home involves the drafting, review and execution of numerous legal documents and that may be very 2 forex less pip spread for you to do on your own.

The Purchaser will want to put down as little earnest money as possible, while you, as the Seller, will want to have as much as possible put down, so there is a little negotiation involved.

The range is generally between one and four percent of the purchase price. In the earn extra money searching online the Purchaser does not close on the transaction, do I get to keep the earnest money?

Assuming that the Purchaser's failure to close is a default i. The Purchaser may be held liable for any and all reasonable stock market is a sham incurred by you to sell the home to someone else and possibly also be responsible to pay your legal fees. However, the suit to recover such damages is very time consuming and there is no guaranty that a Judge would award the damages you are requesting.

Earnest Money | Legal Advice

From a practical standpoint, most Sellers settle for the amount of earnest money or some portion thereof. Absolutely not, from a practical standpoint, most real estate transactions close. However, most contracts have contingencies whereby the Purchaser may terminate the contract and receive their earnest money back. Also, some municipalities charge the Seller a transfer tax. In the State of Illinois property taxes are paid a year in arrears, so in effect you will be pre-paying your property tax bill.

Depending on the assessed value of your home, and the time of year the closing occurs, this tax amount can be very significant. We would be happy to provide you with an estimate. The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

who gets earnest money if the buyer breaks the contract in illinois

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Residential Real Estate FAQ | Kuhn Heap & Monson | Naperville, IL Attorney

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