Skip to main content

Frequently
Asked Questions

Do I need a lawyer for a residential real estate purchase?

Yes.  You are buying one of the largest investments of your life.   It will have a complicated contract with a bunch of confusing deadlines.  At a minimum, you should review the contract with a local real estate attorney to make sure you understand what the heck you signed and what you need to do.

Is it legally required?  Nope. In Illinois, a real estate attorney is not a requirement for buying a home.  In northeastern Illinois, most Buyers and Sellers use their own attorney to help with the contract and the closing.

What Is Your Fee And What Does It Include?

For most standard residential purchases or sales, we charge a flat fee of $450.  We usually do not ask for any money down and get paid at the closing.

If you have a non-standard contract or a non-standard deal like buying a commercial property, a brand new home or a bank owned property we have to look at the contract and get some more details before we can quote a fee.

For the $450 fee, our services include:

  • Reviewing the contract and answering any of your questions about it;
  • Reviewing the public real estate records for the property;
  • Negotiating attorney review and inspection issues with the other attorney;
  • Monitor the contingency dates in the contract (home inspection, attorney review and financing);
  • Coordinating with lenders and Realtors and the title companies;
  • Reviewing the commitment for title insurance;
  • Reviewing the plat of survey;
  • Assisting with scheduling the closing;
  • Explaining the significance of the documents given you at closing;
  • Verifying all closing expenses and documents for accuracy;
  • Examining the condition of title at closing and overseeing the removal of all pertinent title objections; and
  • Obtaining the owner’s title insurance policy which will be forwarded to you for your records after closing (for Buyers).
  • Reviewing the contract and answering any of your questions about it;
  • Reviewing the public real estate records for the property;
  • Negotiating attorney review and inspection issues with the other attorney;
  • Monitor the contingency dates in the contract (home inspection, attorney review and financing);
  • Coordinating with lenders and Realtors and the title companies;
  • Reviewing the commitment for title insurance;
  • Reviewing the plat of survey;
  • Assisting with scheduling the closing;
  • Explaining the significance of the documents given you at closing;
  • Verifying all closing expenses and documents for accuracy;
  • Examining the condition of title at closing and overseeing the removal of all pertinent title objections; and
  • Obtaining the owner’s title insurance policy which will be forwarded to you for your records after closing (for Buyers).

I Am Selling My Property By Owner. Can You Help Me?

Yes, we help many homeowners sell their home by owner. It can be as easy as 1, 2, 3.

  1. The first step is to give the buyer a set of disclosures. If you need the forms for these, we can provide them to you and we can help you fill them out.
  2. The second step is preparing a contract. If you don’t have one yet, we can help you draft it. If you have one already, we can help you make any necessary changes.
  3. The third step is to coordinate all the paperwork and logistics with the title company and lenders. We can take care of all this for you and let you know what you need to do.

Can Your Office Represent Both The Buyer And Seller On The Same Matter?

We cannot.  In Illinois, a law office should only represent either the Buyer or the Seller and not both in the same transaction.  While most residential real estate transactions are collaborative and cooperative experiences, occasionally they can become contested and adversarial.  If things get tricky, it’s always best for each side to have their own attorney (at a separate law firm).

How Long Does It Normally Take To Get To The Closing Table?

Most financed deals take between 30 and 45 days from contract to closing.  If the Buyer is paying cash, most deals can close between 14 and 21 days.

What if the buyer walks away before the closing?

The answer depends on the reason why the Buyer walked away.  If the Buyer does everything that they are required to do and walks away because they can’t get their mortgage or can’t work out an agreement with the Seller on inspection issues, the Seller usually gives them back their earnest money and re-lists the property for sale.

If the Buyer did not comply with the contract and walks away, the Seller may consider suing them for the earnest money or specific performance (forcing the Buyer to purchase the home).

How long does it take from the time I accept a buyer's offer to the actual closing?

Most financed deals take between 30 and 45 days from contract to closing.  If the Buyer is paying cash, most deals can close between 14 and 21 days.

Residential Real Estate FAQs | Diamond Real Estate Law - adam diamond | McHenry, IL

What are the most common pitfalls that cause closings to fail or to be delayed at the last minute?

  1. THE BUYER’S LENDER IS NOT READY FOR THE CLOSING.

    The most common closing delay is the Buyer’s lender not being ready to close.  Most of these delays are due to the Buyer’s lender not having all of the things they need.  It is critical that the Buyers be very proactive in providing their lender with all the paperwork they need and to work with good lenders that review and prepare things ahead of time.

  2. SELLERS NOT MOVING OUT BEFORE THE CLOSING.

    Most standard residential contracts have a provision that states the Buyer gets possession at closing.  A day or two prior to closing, the Buyer needs do the final walk through to make sure everything is in order, repairs have been made as agreed, the toilets still flush, etc.  If the Seller’s worldly possessions are not completely out of the house before the closing, the Buyer can either postpone the closing or request that the Seller have their attorney or a title company hold back money from their proceeds to make sure that the Seller completely moves out and does not damage the property during the move out process.
    The last thing a Buyer wants to see at final walkthrough is evidence of some sort of chaotic packing process, with all the Seller’s stuff strewn about, including the non-working Nintendo 64, Sega Genesis and various components of other long-obsolete (albeit classic) gaming systems.  Not to mention all the bags of unwanted clothing and household goods the Seller was planning on dropping off at Goodwill, paint cans from so many years ago the names have rubbed off, cleaning supplies, garbage…..)  So, in a nutshell, Sellers need to make sure all of their worldly possessions are out of the house before the closing. No excuses! It goes without saying that this includes the garage, shed, basement and attic.

  3. SHOW ME THE MONEY!!! (A/K/A NOT “BRINGING MONEY” TO THE CLOSING)

    Some Sellers are surprised when they have to bring money to the closing.  I know you’re thinking, “Hey, I’m the Seller.  I don’t bring money to the closing…I get money.”  In a perfect world, that would be true.  But times have changed, my friend. Gone are the days where Sellers are guaranteed to make money on the house they bought five, ten or twenty years ago.  (Thank you, real estate market crash of 2008!) So, how does it happen that a Seller show up to close and find out they actually OWE money??? Usually, someone screwed up the paperwork or maybe there was simply a miscalculation somewhere, such as a cost that was omitted, a lien the Seller forgot about, confusion about HOA fees (the possibilities are almost endless).   Either way, the Seller could end up paying to close instead of getting paid to close. And, if the Seller does not have enough money, the whole deal could fall apart. Worse, the Seller could end up getting sued by the Buyer. An informed Seller knows his or her costs and expected bottom line the day the contract is accepted and also knows to be a little flexible in the event of any bumps along the way.

  4. LEFT BEHIND.

    Sellers need to make sure not to leave any of your personal belongings (lovely parting gifts) behind unless the Buyer agrees in writing.  The Seller may think that leaving the family pool table behind is going to be perceived as a “valuable gift.” At the closing, the Buyer can claim they have to pay to have it removed.  Sometimes, the Buyer will refuse to close at all, until that junky-eyesore-of-a-pool-table is gone. This can create closing delays or cost Sellers money.

Why Do I Need To Pay For A Transfer Stamp For Closing?

Transfer stamps are the taxes you have to pay whenever you sell real estate.  They are required by the county recorder to record a deed transferring property.  

In Illinois, you have to pay a transfer tax to the state of Illinois and to the county where the property where the real estate is located.  Most of these taxes are calculated based on the sale price. (Usually $1.50 per thousand dollars).  

There are some exceptions that do not require transfer taxes.  One example is a transfer of property into a trust where no money is exchanged for the transfer.

Local municipalities (cities and towns) can pass ordinances requiring additional transfer taxes.  Some cities or villages require you to purchase an actual a stamp (sticker) that has to be placed on any deed for property transferred within their corporate limits.  Some cities, like Chicago, charge a fee for the stamp based on the sale price of the property. Other cities, like Round Lake Beach, require safety inspections and final utility bills to be paid before they will issue a stamp.

Why is a title company used at closing?

Many Buyers, Sellers and lenders prefer to use a title company for a closing because they provide escrow services to hold all of the documents and money until all of the paperwork is completed and ownership of the property is transferred to the Buyer.  They also help with the issuance of title insurance for the transfer of ownership. Title companies have to comply with a lot of security and safety standards to protect people’s money and personal information. This can be a huge benefit in our modern age of cyberfraud and identity theft.

What is an attorney review & inspection letter?

An attorney review and inspection letter is a letter from the Buyer, Seller or their attorney to the other party that requests modifications to the contract, repairs or credits.  The repairs or credits are usually based on issues raised by the home inspection. The contract modifications are usually based on a provision in most standard residential contracts (in McHenry and Lake County, Illinois) that allows an attorney for the Buyer or Seller to propose modifications of the contract.

Can I Avoid Foreclosure By Paying The Delinquent Mortgage Payments?

Yes, but only if your lender (or servicer) will accept the payment.

If you are only a few months behind, or early in the foreclosure process, most lenders will let you catch up on your payments by making a lump sum payment.  This usually includes all of your late fees and/or other fees charged due to the missed payments. If you have the money to make this payment, it is always a good idea to get something in writing from your lender explaining exactly how much you owe and what will happen once you make your payment.

Your legal right to pay the delinquent mortgage payment (in Illinois) is a much more complicated question because the answer depends on where you are in the foreclosure process.  In Illinois, you have certain legal rights to avoid foreclosure by paying your delinquent payments. These rights are commonly referred to as reinstatement and redemption.

Reinstatement is when you pay all the past due amounts on your mortgage, plus all costs and fees.  This usually allows you to go back to making your regular mortgage payments. Illinois law allows you to reinstate your residential loan up to 90 days after you are served with foreclosure papers (or have otherwise submitted to the jurisdiction of the court).  Even if you are past the 90 days, some lenders will allow you to reinstate your loan prior to the foreclosure sale (sheriff’s sale).

Redemption is paying the entire loan off in full.  In most cases you can do this either 7 months from the day you were served with foreclosure papers or 3 months after the foreclosure judgement, whichever is later.

If you are in foreclosure and you redeem or reinstate your loan, the lender will usually dismiss the foreclosure lawsuit.

McHenry, IL Foreclosure Defense Attorney | Diamond Real Estate Law - adam diamond

I Am Behind On My Mortgage Payments. How Long Do I Have Before The Bank Files For Foreclosure?

Most residential lenders wait until you are at least 120 days delinquent on your payments before they file for foreclosure.  They usually do this because they are following the federal Consumer Financial Protection Bureau servicing rules enacted in January of 2014.

What Is A Deed-In-Lieu Of Foreclosure?

A Deed-In-Lieu of Foreclosure is an agreement with a lender where you, the borrower, agree to give your lender the deed (and clear title) to your property in exchange for release from the mortgage obligation.  This usually means dismissing, or not filing a foreclosure lawsuit. If you are worried about owing your lender money after you give your lender the property, it is very important to verify that the written agreement with your lender has a deficiency waiver.

A deficiency waiver is an agreement with your lender where they agree to forgive any balance you owe them beyond the value of the property.  Deficiency waivers can also have income tax consequences, so it is also important to talk to an accountant or tax consultant before you complete a deed-in-lieu of foreclosure with a deficiency waiver.

What is a short sale?

A short sale is where you sell your home for less than you owe.  Short is referring to the payoff to your lender and not the process.  A short sale usually requires a written agreement from your lender and can take anywhere from 30 days to 6 months (or even longer) to complete.

Contact Diamond Real Estate Law





    Skip to content