Real Estate Closing Attorney LOHSE LAW

Why does the Seller need to hire an Attorney?

The average residential transaction takes up to 15 hours. No real estate closing is "quick and easy"

Whether you are selling a parking spot, house or condo, I will:

Review the signed contract with you;
Negotiate on your behalf any changes or repair issues with the buyer’s attorney;
Ensure the buyer’s earnest money is sufficient;
Examine the buyer’s mortgage terms and ensure they are realistic;
Ensure the tax prorations are fair;
Review terms of any warranties;
Order title commitment for title insurance;
Order a survey if required;
Order association information and acquire paid assessment letters, if required;
Ensure municipal requirements are satisfied (stamps, water, inspections, etc.);
Prepare the Deed to transfer title of the property;
Prepare the Bill of Sale to transfer the personal property;
If a tenant is deceased, prepare documents necessary to transfer the property;
Attend the closing (in-person or remotely) and sign on your behalf if you choose to not attend the closing;
Prepare lease assignments and rent rolls if necessary; and
Negotiate any last minute disputes

Do I really need an attorney to help with the sale of my property?

Legally, the answer is "no," you don't have to retain an attorney. However, In Illinois the majority of buyers and sellers hire an attorney to handle their real estate transaction. Attorneys should not represent both the buyer and seller to a transaction - it is a conflict of interest.

Even though it is perfectly legal for you to handle everything, the system in Illinois is designed to have attorneys handle closings. Sellers in particular must prepare legal documents for the closing to clear the title and legally transfer the property to the buyer. What needs to be prepared is precise and often specific for Illinois. You cannot buy the required documents online or from the office store for this. Failure to prepare documents correctly to transfer title can lead to lawsuits in the future, but at the bare minimum, cause delays with the closing of days or weeks while items are corrected.

The average transaction takes me 10-15 hours, so it isn't a "quick" easy thing. And unfortunately it doesn't matter if the property is a $20,000 parking space or a $1MM home, all the same steps are taken. There aren't any shortcuts for "cheap" properties.

Information about the Contract and Closing

Which contract should the buyer use when submitting their offer?

There are several "template" contracts in the Chicagoland area. However, I believe the Multiboard contract is the best one out there right now. It was created by a couple dozen real estate attorneys and realtors and is updated regularly to reflect changing times.

People are sometimes overwhelmed by the number of pages in the Multiboard contract, but almost 1/2 of the contract is saved for optional terms that aren't always needed. Plus, it isn't written in tiny print, so it is easy to read.

In my opinion, generic contracts found on the internet or in the office store are not adequate for Illinois transactions. Those contracts do not contain many of the necessary material terms needed for a transaction in Chicagoland.

Is the document submitted to me an "offer" or an "executed contract?"

Usually Buyers will present a written offer to the seller. If you don't make any changes to the offer, you can sign and date it. That would be a fully executed contract. The "Acceptance Date" is the date that you sign and date.

However, if you make any changes to the "offer" submitted by the buyer, it has become a "counter-offer." If you change the dates, dollars, or other key-terms, this becomes a counter-offer. The acceptance date would be the date that the Buyer "initials" by any of your changes.

Can I cancel the contract (after I have accepted the buyer's offer)?

You may cancel the contract for any reason, other than purchase price, in the first five business days after contract acceptance (or as otherwise stated on the contract). If you accept an offer from a buyer and then get another offer from someone else for more money, you cannot cancel the first contract based on sales price and switch to the second buyer.

Who holds the earnest money?

Normally the realtors hold earnest money. However, if you are selling FSBO or using realtors that don't hold earnest money, the title company can hold the earnest money. If the title company holds the earnest money, a separate agreement must be signed with the title company opening a trust account. If the transaction is cancelled, there is usually a $300 fee. There is no fee if the transaction eventually closes.

Lohse Law does not hold earnest money because we understand it and interpret the law to be a conflict of interest. The conflict is simple; how can I be a fiduciary for the buyer and look out for their best interests when you, the seller, are my client? The answer is I can't.

There are a few "old school" attorneys still around that may hold earnest money. If that is the case, I don't mind. Additionally, I don't mind if the Buyer's realtor holds the earnest money. That is perfectly fine and safe too.

What title companies do you work with?

Lohse Law is an attorney-agent for several of the largest, national, title companies that have been around for many years. I work with the actual title insurer rather than smaller regional "mom-pop" title companies that are basically just an additional middle man.

Attorneys Title Guaranty Fund (ATG)
Chicago Title
Fidelity National Title
First American Title
Old Republic Title

My realtor tells me that I must use their company's affiliated title company. Is that okay?

Legally, the realtor cannot force you to use their company's title company. Burnet is one of the title companies that your realtor may ask (or strongly encourage) you use. Burnet Title doesn't have an attorney-agent program for attorneys, therefore Lohse Law does not work with Burnet Title.

What are my estimated real estate closing costs? How much money am I going to walk-away with?

Every real estate transaction is a little different and there are several variables that cannot all be included here. But for an estimate, click on the tab above for Real Estate Services and scroll down to the Estimated Sales Proceeds Worksheet.

Do you help investors "Wholesale" properties or do "Double Escrow" closings?

The short answer is NO. I do not help investors with wholesaling or double escrows. I receive several calls every week asking if I do (I'm guessing there is a real estate investing seminar or book that discusses these two "strategies").

There are several laws that really limits this type of real estate "investor" in Illinois. The Real Estate License Act of 2000 (225 ILCS 454/1-10) limits a broad range of activities. Pay particular attention to to the "Broker" paragraphs to help determine if you need a Broker's License. If you are reading this paragraph, odds are that you will fall under one or more of the categories requiring a Broker's License!

The IDFPR (Illinois Department of Professional and Financial Regulation) does allow you to do one (1) transaction without a license; but the number drops to zero (0) if this is intended to be a business or to generate a profit or commission.

Double Escrow closings is an entirely separate thing. Generally title companies will not provide title insurance for Double Escrow closings. I do not know of any legitimate title companies that will provide title insurance for a double escrow closing.

A word of caution to those of you that may try to "wholesale" or do a "Double Escrow" regardless of the laws; you may get stuck in the middle of the transaction owning a property that you didn't intend on owning! Secondly, the IDFPR may come after you with heavy fines and penalties.

Do you have questions about your property sale?

Seller - FAQs