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    REAL ESTATE

    Real Estate Lawyer/Attorney, Oak Lawn, Illinois 60453.

    Jawad R. Shalabi is the real estate lawyer/attorney for YOU.

    Real Estate Lawyer/Attorney - Beautiful Blue House

    My name is Jawad R. Shalabi, Attorney at Law.  I am a real estate lawyer/attorney serving Cook County, Dupage County, and Will County, Illinois.

    “Since 2013, I have worked on countless real estate closings, from Cook County, to Dupage County, to Will County, with great results.  I strive to complete all tasks well before their deadlines.  My goal is always to CLOSE.”

    Get a FREE consultation to have all your real estate questions answered by filling out the contact form on the upper left.

    Real Estate Overview

    Buying a house may be the single greatest investment you ever make in your life, but selling your house is an equally great endeavor.  Do you need a real estate lawyer/attorney?

    Every real estate transaction is unique, but the key to success is making sure you do your homework: meeting contractual deadlines, following up on your loan application, etc.

    A real estate lawyer/attorney can guide you through the process.

    Below is information I hope will assist you in your real estate pursuits.

    Real Estate Closing: What is the process for buying/selling a house in Illinois?

    Buyers and sellers of real estate have the same goal: to close.  However, the steps they take on the way to closing are different.  The next sections outline the home-buying and closing process, in general, and differentiate between the tasks of buyers and sellers, where necessary.

    Who are the key players in a real estate closing?

    The real estate closing process is more understandable if you know who the characters are, as well as their duties:

    Buyer and Seller: The easy ones.  The Buyer is the person buying the property and the Seller is the person selling it.

    Real Estate Agent/Salesperson: Anyone that has earned a real estate license can be called a real estate agent or salesperson.

    Real Estate Broker: Someone that has earned an education beyond the agent level and has passed a broker’s license exam.  Real estate brokers can work alone or hire real estate agents to work for them.

    Mortgage Lender: A financial institution that issues loans; usually a bank.  

    Mortgage Broker: Essentially, a middleman between the borrower/buyer and the mortgage lender (the bank).  They work with both the borrower and the bank.  Mortgage brokers help the borrower to determine what type of loan they qualify for, and what type of loan would be best for them.  A mortgage broker is not a necessity, as the borrower could deal with the bank directly.  

    Title Company: A title company is usually the combined agent of the insurance company and all parties related to a real estate transaction.  The company reviews title, makes sure it is legitimate, and issues title insurance.  Title insurance protects the mortgage lender and/or the homeowner from claims that arise from title disputes. The title company also facilitates closings and files/records paperwork.

    Real Estate Lawyer/Attorney: The real estate lawyer/attorney’s job in a real estate closing is to protect his/her client’s interests.  The extent of the real estate lawyer/attorney’s duties varies from closing to closing.  They review the real estate contract, conduct title searches, and apply for title insurance.  Most importantly, real estate lawyers/attorneys prepare all required closing documents, schedule the closing, and have all closing documents properly executed and recorded.

    Finalizing the real estate purchase agreement.

    A real estate contract becomes legally binding when the seller accepts the buyer’s offer to purchase a piece of real estate.  The agreement is evidenced by the signing of a real estate contract/purchase agreement.  The buyer and seller work out the purchase price and any “contingencies” to the sale going through. The sale can be contingent on the buyer obtaining financing, being able to sell his/her home, or on the home inspection.

    Attorney review and modification period.

    An important section of your real estate contract is titled “Attorney Review,” and it gives your real estate lawyer/attorney a set period of time, usually within five  business days after the date of acceptance, to review your contract. Upon review, your real estate lawyer/attorney may (a) approve of the contract, as it is; (b) disapprove of the contract; (c) propose modifications; or (d) propose suggested changes.

    As to “(c) propose modifications,” the modifications can be for anything, except the purchase price.  However, if the parties do not come to a resolution regarding the proposed modifications within ten business days of acceptance of the contract, either party may back-out of/terminate the contract.

    As to “(d) propose suggested changes,” if the suggested changes are not agreed upon, the contract remains in full force and effect.

    The attorney review section is a safety-net that allows you a way out of the contract if your real estate lawyer/attorney catches something you did not.  I highly recommend you make use of it.

    Earnest Money (Deposit)

    A deposit, referred to as “earnest money,” is paid, typically, to the title company, but may also be paid to the buyer’s real estate lawyer/attorney, buyer’s broker, seller’s broker, or, sometimes, the seller’s real estate lawyer/attorney, but not to the seller themselves.  The purpose of earnest money is to show the buyer’s good faith in the transaction. If the deal goes through, the earnest money is typically applied to the purchase price.

    If the deal does not go through for a legitimate reason, you, as the buyer, get your deposit back.  One legitimate reason for the deal to not go through is that a contingency was not met.  For example, the deal was contingent on you obtaining financing and you could not get it.

    There are also illegitimate reasons for the contract not to go through.  For one, you waive any contingencies, but still try to use them as an excuse to back out.  For another, you miss deadlines, such as the ones outlined in the “Attorney Review” section, and, therefore, waive issues that would have been found otherwise, but still try to raise those issues.  Third, you decide you do not want to go through with the deal, for personal reasons.  Finally, you make misrepresentations about your financial situation (i.e., you commit fraud).  

    In these scenarios, you would not get your deposit back.

    Disclosures

    A disclosure is information given by the seller to the buyer about anything that can negatively impact the value, enjoyment, or usefulness of the property.  In Illinois, sellers are required to make disclosures based on the Residential Real Property Disclosure Act.  Sellers must fully answer specific questions regarding the condition of the property.  The purpose of disclosures is to keep the buyer fully informed of the known condition of the property.

    Home Inspections

    The buyer has the right to have an inspection of the home performed to check for defects in major components of the real estate.  Major components include central heating and cooling systems, plumbing and well systems, electrical system, etc.  A major component is deemed to be in operating condition if it performs the function for which it is intended and is not a threat to health or safety.

    The buyer usually has five business days from the date of acceptance to report any defects to the seller that the buyer wants him/her to either fix or give a monetary credit for.  The buyer and seller must come to an agreement within ten business days of the date of acceptance.  Otherwise, either party may terminate the contract.

    If the inspection reveals that the real estate is unacceptable to the buyer, the buyer may back out of the contract. If the buyer fails to conduct an inspection and notify seller of any defects within the time frame, the buyer waives his/her right to terminate the contract based on the inspection provision of the contract.   

    Take advantage of the inspection provision of the contract.  Have your real estate lawyer/attorney give the seller’s real estate lawyer/attorney notice of any defects you want fixed.  

    The General Mortgage Process in Illinois

    This section is for buyers that need a loan to purchase their home.  The following is a step-by-step checklist of how the mortgage process is generally handled in Illinois.

    1. Buyer submits a loan application to the mortgage lender.

    You could use a mortgage broker or you could do it yourself.

    2. A mortgage lender sends a “good faith estimate” to buyer.

    A good faith estimate is a breakdown of the estimated closing costs.  The final amount of costs can, and probably will, change. 
     
    3. Buyer should get a pre-approval from the mortgage lender.

     Before the buyer makes an offer to the seller, it is best to get a pre-approval for a loan from the mortgage lender. This way, the buyer knows how much he/she is able to borrow and can make informed decisions during the real estate process.  

    The mortgage lender will require the buyer to disclose a series of personal financial documents.  These documents often include statements for bank accounts, outstanding loans, and up to two years of tax returns.  Mortgage lenders are thorough, and you should be prepared to submit updated versions of the same information you previously submitted.  

    4. Loan Commitment Letter

    If the mortgage lender approves your loan, it will issue a loan commitment letter.  The letter states that the mortgage lender is willing to fund your mortgage if certain conditions are met.  These conditions usually include an appraisal of the property (to insure that you are not paying much more money than the property is worth) and any material change in your situation.

    5. Mortgage contingency date

    If the real estate contract is contingent on the buyer receiving a loan, there is a mortgage contingency date in the contract.  The buyer must receive a written “Clear to Close” letter from the mortgage lender by that date, otherwise, the buyer or the seller may declare the contract terminated.  

    However, in practice, the buyer often asks the seller for an extension on the mortgage contingency date and the seller routinely grants it.  It has to be in writing.  Real estate lawyers/attorneys usually handle this.

    6. An appraisal of the property is ordered by the mortgage lender/broker.

    If the appraised value of the property turns out to be less than the purchase price, the mortgage lender may refuse to approve the buyer’s loan, unless a change is made to the purchase price or the amount of the down payment.

    7. Homeowner’s Insurance

    The mortgage lender will require the buyer to purchase homeowner’s insurance if it is not already included.  The buyer may be required to purchase title insurance as well.  Proof must be submitted to the mortgage lender.

    The Real Estate Closing itself.

    The closing takes place at one table, either at a title company or a real estate lawyer/attorney’s office.  The seller, or seller’s real estate lawyer/attorney, prepares all documents necessary for transferring title prior to the closing.  The buyer signs all documents regarding the real estate transaction and his/her loan, and brings a cashier’s check to pay the seller.  The seller has closing documents to sign, as well.  The buyer takes possession of the keys after all documents are signed and payment is made.

    A title search is run just before the closing to determine if there are any liens or assessments on the title.  If the title is “clear,” the closing proceeds.  A final walk-through is usually done the day of, or the day before, the closing.  The walk-through is to make sure the property is in the same condition it was in when the real estate transaction began.  

    After the closing, a representative from the title company, or a real estate lawyer/attorney, records the real estate transaction and deed with the appropriate municipality.  

    Do you have any further questions?

    My name is Jawad R. Shalabi and I am a real estate lawyer/attorney.  Feel free to contact my office by clicking on the “Contact Me Today!” button, just below.  We are happy to assist you.