The legal aspects aren’t just limited to how much the property is selling for. It also includes crucial elements that make the contract legally binding. So carefully read the below terms to see what you must have in this agreement.
There are four (4) elements to a purchasing agreement that you can’t do without if you want it to be legally binding. The agreement must be written. No oral agreements will be eligible in a court of law.
The parties must mutually agree on and consent to the contract’s terms.
Only competent parties, in the eyes of the law, can enter into the agreement.
The contract may not violate Illinois’ state, local, or federal laws.
While the agreement must fulfill the above conditions, that doesn’t tell you what information you should include. Below, we state all of the legally required information you must add to this document: Add the names, contact details, and addresses of the required parties.
List property details, like the legal description and registered address.
The purchase price both seller and buyer agreed upon previously.
Contingencies that either the seller or buyer must complete before the closing.
The closing date is generally 30 to 90 days after the buyer and seller sign the contract.
Other terms that typically aren’t required by law but recommended to add to your contract are: Earnest money deposit:If you need one, you must state how much it is and the terms surrounding it. However, you don’t have to ask for one. In Illinois, these deposits range between 1% to 3% of the purchase price. However, depending on the area, it can increase to 10%.
Attorney Review: This clause states that parties can modify the agreement without legal repercussions. Once the parties sign the deal, they generally have five (5) days to have their attorney review the contract. They can then decide to terminate or modify the document.
There are also several legal disclosures you must add to this document.
Property Disclosure Report: For this report, the seller must complete the standard form about the property’s condition. They must present it to the buyer before they sign the contract but aren’t required to disclose information other than what is on the form.
Radon Testing Guidelines:The seller must provide the buyer with radon testing guidelines before moving in.
Radon Hazards: The seller must complete the radon hazard disclosure form and present it to the buyer.
Lead-Based Paint Disclosure: In this section, the seller must state whether lead-based paint is used in the building. This clause is only applicable to buildings older than 1978.
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Illinois sellers and buyers require a written contract when selling or buying real estate in this state. However, they can’t just draw up any agreement, as specific terms and disclosures are legally required. It’s essential you add all of these terms to protect both parties’ interests.
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