What is a Illinois Residential Real Estate Contract?

The Illinois Residential Real Estate Contract has a new version: the Multi-Board Residential Real Estate Contract 7.0. The 7.0 was approved in 2019 as the new standard contract for purchasing residential real estate in Illinois. The Multi-Board Residential Real Estate Contract 7.0 seeks to correct what some considered shortcomings in the predecessor version (the 6.1)

What should be on the look out for when reviewing the contract with your real estate attorney?

Besides getting a good deal on the price of HUD properties, they come with several other great benefits:

• Purchase Price and Earnest Money - The most important thing to confirm with your attorney is that the amount of the purchase price and earnest money are correct. Earnest money is a percentage of the purchase price paid up front by the buyer and held in escrow by a third party called the ""escrowee."" If the deal falls through, the seller will often have the right to keep the earnest money, depending on the terms of the contract and the reason that the deal failed to close.
• Fixtures and Personal Property Included in the Transaction - The Illinois Residential Real Estate Contract that most real estate brokers use contains a section listing common appliances and other fixtures, such as refrigerator, oven, and smoke detectors, that can be checked off by the realtor to indicate that they are included in the purchase price.
• Mortgage Contingency - Many residential real estate purchases are conditional upon the buyer obtaining appropriate financing for the transaction. The key word here is ""appropriate."" The contract will often be contingent upon the buyer receiving a certain type of mortgage (fixed, adjustable, conventional, FHA, or VA) for a certain percentage of the purchase price at an interest rate not to exceed a certain percentage. If the buyer is unable to obtain a mortgage on these terms, they are often permitted to back out of the deal and have their earnest money returned.
• Tax Prorations - The purchaser will ultimately be responsible for paying the entire real estate tax bill for the year in which the transaction happened, and sometimes for the previous year. Because the amount of property taxes for the year or years in question is uncertain, the parties will try to estimate the amount that the taxes will ultimately be.
• Optional Provisions - The standard Illinois Residential Real Estate Contract contains several ""optional provisions"" that apply only if initialed by both parties such as the contract being contingent on the seller closing on a separate real estate purchase, the seller's right to continue to offer the real estate for sale prior to closing, and the property being sold in ""as is"" condition.

Sources: https://www.gardilaw.com/know-your-contract-the-multi-board-residential-real-estate-contract-7-0/, https://www.oflaherty-law.com/learn-about-law/top-5-things-to-look-out-for-in-your-residential-real-estate-contract