Submitted by Christopher S. Nudo on
Not moving by the scheduled closing date is not really an option; the seller is going to have to figure out a way to move, as the consequences of not moving by the scheduled closing date can be rather severe. First and foremost, a buyer can hold the seller in breach of contract, and would have numerous remedies available to them. One such remedy is specific performance, which is an action brought to essentially evict a seller and demand that they sell the property as per the terms of the contract. A number of damages would also be available to the buyer, including storage fees. If a transaction does not go through and the seller is at fault, then the buyer is entitled to many different levels of damages.
What Needs to Be Carefully Reviewed Prior to Signing a Real Estate Purchase Agreement?
In the Chicago Metro Area, residential contracts should be carefully reviewed prior to signing a real estate purchase agreement. In a residential contract, there is a paragraph called attorney review; as long as the contract has an attorney review provision, and the contract is delivered to the attorney in sufficient time for the attorney to review the contract, then signing a real estate contract is not a big concern. The client should deliver the contract to their attorney immediately upon execution, after which the attorney usually has five business days to review it and make changes, including outright disapproving the contracting and canceling it.
Commercial or industrial contracts don’t typically have attorney review provisions in them. For this reason, we advise clients not to sign the contract until they have provided us with copies of the contract for review and comment; only upon our approval should they sign a real estate contract.
What Needs to Be Completed for A Closing in A Real Estate Transaction?
On the seller’s side, the necessary transfer documents such as a deed, bill of sale and an affidavit of title will be necessary for closing a real estate transaction. We prepare American Land Title Act (ALTA) statements, which reflect that there are no undisclosed liens, leases, or unpaid bills on the property. We also prepare a title report, which demonstrates who owns the property and what liens might be open on the property (e.g. tax liens, mortgage liens, mechanic liens). We will look at other things that affect the property, such as easements and taxes. Assuming that the property is a single-family home or a townhome, we will get a survey so that we can see the boundary lines and make sure there’s no encroachments on the property. When relevant, we work with the homeowner association to make sure that the assessments are paid current, and will receive a paid assessment letter and a condo disclosure (document 22.1) that discloses the health of the condominium association from a financial aspect. If there’s a mortgage on the property, then we will get a payoff.
On the buyer’s side, all of this is done in reverse, but first, we will make sure that the buyer is happy with the condition of the property based on the inspection. If there are any health or safety issues that need to be addressed, then we will bring those to the attention of the seller and ensure that they remedy those issues prior to closing. We will also check the title that the seller has provided to ensure that when we receive it, there are no remnants of the seller’s ownership on it. We will make sure all the taxes are paid current and review the survey to check for encroachments that might be problematic for the buyer. We will review the deed and all the documents provided by the selling side to ensure that the buyer is receiving exactly what those documents reflect.
For more information on Moving Prior To Scheduled Closing In Illinois, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling today.
