The Essential Role of an Attorney in a Chicago Area Real Estate Transaction

Whether buying or selling property in the Mt. Prospect, Hanover Park or Arlington Heights area, a real estate attorney is essential to ensure your rights and property interests are protected before, during and after such a complex transaction. Although opinions may differ as to whether or not an attorney is necessary during this process, one thing is certain: the cost of professional legal fees upfront will pale in comparison to legal fees incurred during litigation as the result of a breach. Because there are several legal considerations to consider in a real estate transaction, hiring an experienced Chicago real estate attorney is key to protecting your investment.

Review of Purchase and Sale Contract

A real estate attorney will review the purchase and sale contract - preferably before it is signed - to ensure the rights, obligations and remedies in the contract favor the client. Negotiating the specific terms of the contract to ensure you are protected during the entire process is just one of the legal services provided. An attorney can change legal language in a purchase contract to protect the interest of a buyer, such as requiring the purchase and sale contingent on the appraisal, financing or a satisfactory home inspection. A contingency is a condition precedent to finalizing the sale; if the matter specified in the contingency does not occur or is not resolved to the buyer’s satisfaction, the buyer has the right to terminate the sale and have the earnest money deposit returned.

Title, Financing and Legacy Concerns

Unlike other participants in a purchase and sale of a home, such as realtors, lenders, appraisers, inspectors, and title insurance company representatives, your lawyer owes an absolute duty of loyalty to you in a real estate transaction. A qualified real estate attorney can review title documents to ensure clear and marketable title to the property is conveyed at closing, explain and evaluate financing options available to the buyer, advise the seller regarding tax implications as a result of selling, and ensure all title documents are correctly prepared so that the conveyance is effective and valid. A buyer’s attorney will review title to determine if there is any interference with the client’s future property rights, such as easements, restrictions or encroachments. Furthermore, if the buyer is a couple, a real estate attorney can give advice as to the legal consequences of holding title as joint tenants or tenants by the entirety.

Representation at Closing

At closing, the attorney can assist clients by guiding them through the process of signing the large number of documents needed to convey the property, as well as ensuring all documents were satisfactorily prepared. The seller’s attorney will review the proposed settlement statement, which details all of the fees and charges the buyer and seller will incur, which is prepared by the buyer’s lawyer. This “second look” at the numbers ensures the math was done correctly because the attorney will cross check all debits and credits prior to approval. The seller’s attorney will also obtain the payoff amount from the seller’s lender and will prepare a certificate of satisfaction for the buyer, showing the loan has been paid in full. Before closing, the buyer’s attorney will communicate with the client’s lender, the realtors and the seller’s attorney to ensure all conditions have been met in order to close successfully.

The purchase or sale of a home can be one of the largest transactions during one’s lifetime. Contact an Illinois real estate attorney today if you are considering purchasing or selling a property. A small investment in legal fees upfront will save you thousands of dollars in the long run by avoiding legal consequences from mistakes or omissions during the sale. The Law Offices of Gilbert C. Schumm has over three decades of experience and serves the communities of Mt. Prospect, Hanover Park, Arlington Heights, Rolling Meadows and Roselle, among others.