In buying or selling real estate, the contracts you sign make or break the deal. These documents detail exactly what is being sold to who for what, but the language in the contract is far more nuanced than that. One of the biggest reasons you need an experienced Illinois real estate attorney in your homebuying (or selling) process is to review the contract top to bottom to ensure common real estate contract pitfalls aren’t present. The real estate market is complicated enough, so you can’t afford to let these common loopholes exist in your contract which could cost you and your family dearly. Failure to Disclose One of the biggest issues is often not what’s in the contract but what isn’t in the contract. The Illinois Residential Real Estate Property Disclosure Act requires that all known defects and prior repairs be disclosed to any potential buyers before finalizing a real estate purchase. The seller is required to provide a disclosure statement to effectively communicate all this information to a potential buyer. Problems arise when sellers try to cut corners or when defects are discovered later in the process. A thorough inspection of the property prior to closing and updated disclosure statements whenever additional defects are discovered are imperative. Title Defects What if we told you some people sell homes they have no legal right to actually sell? In fact, some sellers don’t even know they aren’t the proper owner of the home. Title defects bring significant complications to a real estate transaction that can halt the deal in its tracks and turn into a much different legal situation. Potential title defects include clerical or filing errors, unresolved boundary disputes, and unknown liens on the property. Settling title defects looks different depending on what caused the defect in the first place. You will need what is referred to as a quiet title action which settles the title so you can proceed. In the case of clerical or filing errors, you will need to track back all the way to where that error took place and get that error remedied however possible. For unresolved boundary disputes, the current owner should work with whoever is disputing the property and ensure an accurate boundary is defined so you know what you are purchasing. Unknown liens must be settled with the creditor. The Contract Doesn’t Say What You Think It Does This is the broadest but perhaps the most common issue that arises in Illinois real estate contracts. Buyers and sellers have negotiated a contract and settled on a purchase price for the home, but the contract doesn’t match those conversations. Some buyers make the mistake of assuming the details are accurate. Most contracts have a five day attorney approval clause. You should check to confirm this and then forward the contract to the attorney as soon as possible for his review. You cannot afford to make assumptions during the real estate buying process. This is one of the most expensive assets you will ever own and you need to get it right. At Velazquez Consumer Law, LLC we regularly work with the people of Illinois in their real estate purchase process to ensure the real estate contract is accurate and legally enforceable. Contact our team for help reviewing your real estate contracts before you sign a deal that’s doomed to fall apart.
Velazquez Consumer Law
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