Residential Real Estate Lawyer in Naperville IL

How to Prepare for Closing in Illinois

Closing a property transaction is the final stage of the process. By this phase, the critical aspects of the contract are completed. Some of the key complex matters may involve the title insurance issuance and acceptance, any surveys or inspections of the property, and mortgage financing. The location for the closing may be at the office of the title company, broker, or attorney. Additional attendees might include the buyer, seller, real estate agent, escrow, and lender representation.

Oftentimes, the seller is not required to attend; however, both the buyer and the seller will have great confidence if they sought experienced legal representation, despite the overwhelming volume of documents. The Law Office of Michelle T. Chase has successfully facilitated real estate transactions in Illinois since 1992.

The Many Closing Documents

Some of the documents that are required to be reviewed or signed upon closing:

• Disclosures;
• Completed property inspections or surveys;
• Title commitments/affidavit;
• Pay-off letter(s);
• Local municipality letters (if applicable) regarding inspection and/or utilities;
• Property tax statement;
• The deed document to be filed;
• Bill or receipt of sale; and
• Statement of settlement.

Real Estate Tax Proration

Your attorney will generally have reviewed the property tax information and determined an arrangement for how they will be satisfied. Transfer forms relating to taxes indicate amounts paid and transfer tax calculations. For example, Cook County property taxes are paid in arrears, meaning during the current year, payments apply to last year's taxes. When a home is sold, the seller may need to cover any remaining balance for time periods when they resided in the home.

Closing Costs

When referring to closing costs, some limit this description to costs or fees associated with the title work; however, generally these are costs encompassing a much broader scope. It is likely that the largest closing cost for the seller will be realtor commissions, varying roughly from 4 to 6 percent of the property sale price. Real estate taxes, fees involving the title, as well as local and state taxes are other expenses.

Closing costs for the buyer tend to fluctuate on a case-by-case basis more than those attributed to the seller. One key variable which creates differences is how the property is financed. Although buyers are normally not responsible for commissions to realtors, their closing costs are likely around 3% to 4% of the property sale price. Some of their costs may include lending application fees, costs of appraisal, prepayments for mortgage interest or property tax, title closing and insurance costs, recorder fees and transfer taxes.

Differences for Condominiums

Illinois law regarding condominiums is outlined by the Illinois Condominium Property Act. Condos have a unit, which is the owner's independent living space, and the remaining property is considered common elements. The closing process is different because of the terms of rights and obligations relating to common areas, as well as with the "Homeowner or Condo Association." Some of the unique documents include a Multiple Dwelling Registration, signed confirmation of by-laws, statement of association fees, and statement indicating allocation of insurance responsibility. Similarly to single-family home transactions, retaining a real estate attorney is strongly suggested.

Regardless of whether you are buying or selling residential property, the transaction is of a legal nature with potentially long-term economic consequences. For this reason, it is important to include a local real estate attorney on your team. For 30 years, the Law Office of Michelle T. Chase has guided clients in a manner that is focused on open communication, personalized service, and attention to detail. For a free consultation, please contact our office at 630-995-3812.