Creating a real estate contract for your Illinois property should be a carefully navigated process to avoid leaving out valuable components that could destroy your success in the industry. As with many property owners, you may be wondering what should be included in your contract to protect you, your assets and your success.
According to Investopedia, some critical must-haves for a well-written and compliant contract should include the following:
- Home inspection: A home inspection allows a professional to survey your property to identify areas of the property requiring action before it is ready to sell or buy. This imperative component can prevent legal backlash if you are the seller and reduce financial strain and frustration if you are the buyer.
- Closing date: Your contract should clearly state when the closing date will occur. This way, both buyer and seller can agree and neither is left questioning when to expect closing discussions to take place.
- Finance terms: The financing portion of your real estate contract should be significantly more than disclosure of a selling price. It should also discuss interest expectations and any finance options discussed in previous meetings.
- Closing costs: You may recall that depending on the arrangement worked out between buyer and seller, the entity paying the closing costs could vary with each transaction. Your contract should clearly state whose responsibility it is to cover these costs and when they will be paid.
- Contingencies: Any contingencies you have worked out with the other party should be included in your contract for reference in upcoming meetings.
The information in this article is intended for educational purposes only and should not be taken as legal advice.