The Illinois Realtor Contract form, specifically the CHICAGO TITLE INSURANCE COMPANY REAL ESTATE SALE CONTRACT ILLINOIS FORM B, is a detailed agreement that sets forth the terms and conditions under which the sale and purchase of a specified piece of real estate will occur. It covers essential aspects such as the purchase price, property description, and closing details, ensuring both buyer and seller are fully informed of their obligations and the property’s status. To facilitate a successful real estate transaction in Illinois, completing this form accurately and thoroughly is crucial.
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Navigating the intricacies of real estate transactions in Illinois is greatly facilitated by the comprehensive Chicago Title Insurance Company Real Estate Sale Contract, known as Illinois Form B. This document meticulously outlines the agreement between a buyer and a seller for the purchase and sale of real estate located in the state of Illinois. Integral to ensuring clear communication and expectations, the form specifies the property details, the purchase price, terms of sale, and responsibilities of both parties. Moreover, it addresses title conveyance, including any limitations such as easements, covenants, or existing liens, ensuring the buyer is fully informed of the property's legal standing. The earnest money deposit, an essential part of securing the transaction, is detailed alongside the conditions under which it may be refunded or forfeited. The form also covers adjustments for various items at closing, seller and buyer declarations concerning tax obligations, the potential establishment of an escrow for closing, and specific legal stipulations unique to Illinois law, such as compliance with the Illinois Responsible Property Transfer Act. This contract serves as a foundational tool for delineating the rights and duties of each party in a real estate transaction, designed to protect all involved and provide a clear path to ownership transfer.
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 part-purchase money mortgage (trust deed), the latter instrument and the note to be in the form hereto attached as Schedule B, or, in the absence of this attachment, the forms prepared by _____________________________________________ and identified as
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:
Seller:Address:
*Form normally used for sale of property improved with multi-family structures of five or more units or of commercial or industrial properties.
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 30-day period, to take title as it then is with the right to deduct from the purchase price liens or encumbrances of a definite or ascertainable amount. If Purchaser does not so elect, this contract shall become null and void without further action of the parties.
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.
The Illinois Realtor Contract form, designed for real estate transactions, is a comprehensive agreement that outlines the terms and conditions of the sale and purchase of a property. This vital document requires attention to detail and accuracy in filling it out, as it governs the legal rights and obligations of both the buyer and seller regarding the property transaction. The steps to complete the form are outlined below to ensure clear understanding and correct completion, thereby facilitating a smoother real estate transaction process.
Completing the Illinois Realtor Contract form is a critical step in legally transferring property ownership. Each party should carefully review the completed form to ensure all information is accurate and complete, and consult with a real estate attorney if any questions arise during this process. Following these steps carefully will help protect the interests of both the buyer and seller, paving the way for a successful real estate transaction.
Welcome to the FAQ section on the Illinois Realtor Contract form. This will serve as a guide to understanding the intricacies of this particular form, ensuring that all parties involved in a real estate transaction are well-informed. Here, we address some of the most common questions regarding the form.
The Illinois Realtor Contract form is a detailed agreement used to outline the terms and conditions of a real estate sale in Illinois. This document underscores the agreement between the purchaser and seller regarding the sale price, property description, payment terms, and conditions that must be met for the sale to proceed. It sets forth obligations such as the delivery of a deed, the handling of earnest money, and other specifics like the survey of the property, title insurance, and closing date arrangements.
Earnest money acts as a token of the purchaser's commitment to proceed with the property acquisition. It is paid at the time of contract signing and applied to the purchase price at closing. The handling entity, typically a neutral third party, holds the earnest money for the mutual benefit of the parties. The contract specifies conditions under which the earnest money may be refunded to the purchaser or forfeited to the seller, depending on whether the contract proceeds as planned or is terminated due to a party's fault.
Yes, the seller is tasked with providing a current plat of survey, compliant with Illinois Land Survey Standards, and a title commitment for an owner's title insurance policy, issued by a recognized company such as the Chicago Title Insurance Company. These documents are pivotal for confirming the property's boundaries and ensuring that the title has no legal encumbrances that could hinder the sale. They protect the purchaser by revealing potential title or survey issues early in the transaction process.
The closing process, as outlined by the contract, is the final step in executing the property sale. It involves settling any adjustments, such as prorations for taxes, utilities, and other agreed-upon items. The specific date and location for closing are defined, along with any conditions permitting adjustments to this timing. At closing, the seller delivers the deed and any other necessary documents to the purchaser, and the purchaser completes the payment as agreed. This process concludes with the property legally transferring from the seller to the purchaser.
Any amendments to the contract, including adjustments to the purchase price or payment terms, must be agreed upon by both parties in writing. Such changes may stem from discoveries during the survey or title review, or negotiations following the initial agreement. These amendments are typically attached to the contract as addenda and become part of the binding agreement once signed by both the purchaser and the seller.
Understanding the Illinois Realtor Contract form is crucial for anyone involved in a real estate transaction within the state. It ensures that all parties have a clear comprehension of their rights, responsibilities, and the procedural steps necessary to successfully conclude the property sale.
Not accurately filling in the purchase price and earnest money amounts: This error can lead to confusion or disputes about the financial terms of the contract. It's crucial to ensure that the specified amounts for the purchase price and earnest money are correct and clearly written.
Skipping the inclusion of applicable schedules and attachments: Schedule B, C, and D contain essential terms and conditions related to the financing and security of the transaction. Forgetting to attach these schedules or not properly identifying them in the contract undermines the clarity and enforceability of the financing arrangements.
Failing to specify the handling of existing leases and tenancies: The contract requires disclosure of current leases and tenancies (as listed in Schedule A). Overlooking this requirement can lead to unexpected complications with tenants after the sale.
Omitting necessary details about the title and survey: The contract necessitates details about the title and survey, including any exceptions. Neglecting to provide a complete picture of the title status or survey details can lead to disputes or delays in closing.
Incorrectly or incompletely addressing tax responsibilities and adjustments: Taxes and their adjustments are an integral part of real estate transactions. Mishandling this section, either by not properly adjusting taxes or misunderstanding the party responsible for certain taxes, can result in financial discrepancies.
When engaging in real estate transactions in Illinois, specifically using the Illinois Realtor Contract form, parties often require additional documents to fulfill legal requirements, address specific concerns, or ensure a smooth closing process. Here is an overview of six common documents used alongside the Illinois Realtor Contract form:
Utilizing these documents along with the Illinois Realtor Contract form ensures that all parties are well-informed and protected throughout the property transaction process. Each document plays a specific role, from ensuring the property is free of hazardous materials to making sure all parties agree on any changes to the initial terms. It's essential to understand the purpose and requirements for each to conduct a successful real estate transaction in Illinois.
The Mortgage Agreement: Similar to the Illinois Realtor Contract form, a mortgage agreement outlines the terms and conditions under which a lender agrees to loan money to a borrower to purchase real estate. Like the real estate sale contract, it specifies payment terms, interest rates, and the legal recourse available to the lender if the borrower fails to make payments. Both documents ensure clear, legally enforceable agreements between parties regarding real estate transactions.
The Title Insurance Policy: This document, referenced within the Illinois Realtor Contract form, provides a comprehensive agreement between the property buyer and the title insurance company. It assures the buyer against any future discovery of title defects or legal claims against the property not listed in the policy. Similarly, the Illinois Realtor Contract form addresses the title's condition by obligating the seller to furnish a title policy that insures the purchaser against unpermitted title exceptions, thereby securing the buyer’s interests.
The Lease Agreement: Both the Illinois Realtor Contract form and a lease agreement define the terms and conditions under which property is transferred from one party to another. While a lease agreement pertains to renting property, detailing the rights and responsibilities of landlords and tenants, the Illinois Realtor Contract specifies the sale and purchase conditions of property ownership. Both contracts include terms about the property, payment schedules, the parties' obligations, and the procedure to amend or terminate the agreement.
The Bill of Sale: This document is used in the sale of personal property and is akin to the residential real estate contract in that it specifies the items to be sold, the sale price, and the terms of the sale. The Illinois Realtor Contract explicitly mentions a bill of sale for the personal property included in the real estate transaction, such as appliances or fixtures, detailing the transfer of ownership from seller to buyer much like a standard bill of sale.
The Escrow Agreement: Like the Illinois Realtor Contract, an escrow agreement involves a third party, known as an escrow agent, holding assets on behalf of the other two parties until the transaction's conditions are fulfilled. The realtor contract suggests the possibility of closing the sale through an escrow to ensure both parties meet their contractual obligations before the purchase is finalized. Both documents facilitate trust and compliance in transactions involving valuable assets.
When dealing with the Illinois Realtor Contract form, it’s important to follow certain do’s and don’ts to ensure the process goes smoothly. Here are some key points to keep in mind:
One common misconception is that the Illinois Realtor Contract is only for the sale of residential properties. In fact, it can be used for multi-family structures of five or more units or commercial or industrial properties, as indicated by the note that the form is normally used for such sales.
Many believe that earnest money is optional, but the contract specifies that a purchaser has paid a certain amount as earnest money to be applied to the purchase price, highlighting its importance in the sales agreement.
A misconception exists that closing dates are flexible and can be easily changed. However, the contract sets a specific closing date, which can only be extended under specific conditions outlined within the contract itself.
Some think that sellers are not obligated to disclose property defects. Contrary to this, the seller warrants they have received no notices of zoning, building, fire, or health code violations that have not been corrected, emphasizing the requirement for transparency.
There's a belief that buyers are responsible for survey costs. The contract, however, states that the seller, at their own expense, agrees to furnish a current plat of survey, placing this responsibility on the seller.
It is mistakenly thought that the contract does not address issues related to title insurance. In reality, the contract requires the seller to furnish a title commitment for an owner's title insurance policy, ensuring the buyer that the title is clean and insurable.
Some assume there are no provisions for terminating the contract. The document clearly provides conditions under which the contract may become null and void, giving both parties clear exit routes under specific circumstances.
Many believe that adjustments for utilities, taxes, and other items are settled after closing. The contract specifies that these are to be prorated as of the time of closing, ensuring all financial matters are settled concurrently with the transfer of ownership.
There's a misconception that property taxes are always adjusted based on the current year's tax bill. The contract details that the adjustment will be based on the most recent ascertainable taxes or other agreed-upon methods, which may not always be from the current year.
Lastly, some think that the inclusion of financing details within the contract is optional. The contract outlines specific financing arrangements that must be satisfied by the purchaser, illustrating the importance of having these details clearly stated and agreed upon.
When you're dealing with the Illinois Realtor Contract form, understanding its key components can greatly smooth the process of buying or selling property. Here's what you need to keep in mind:
Additionally, the contract covers responsibilities regarding property disclosures, adjustments of various expenses at closing, and compliance with applicable laws, such as the Illinois Real Estate Transfer Tax Act and the Illinois Responsible Property Transfer Act. It's crucial for both buyer and seller to understand these aspects thoroughly to ensure a smooth closing process. Failure to adhere to the terms can lead to the contract becoming null and void, with specific consequences depending on the party at fault.
Finally, the method of closing, whether through direct payment and deed transfer or via an escrow arrangement with a company like the Chicago Title and Trust Company, needs to be agreed upon. This decision influences the final steps of the transaction and determines how funds and documents are exchanged.
Illinois Red or Blue - Submission details, including addressing to the State Board of Elections, highlight the procedural steps for committee registration and updates.
Illinois Department of Professional Regulation - Both the applicant and their authorized insurance agent play critical roles in completing this form, ensuring accuracy and compliance.