REAL ESTATE - AN OVERVIEW

Marder and Seidler have been representing sellers and buyers of real estate, both residential and commercial, since opening their practice in 1978. 

All real estate in Illinois must be sold pursuant to a real estate contract.  It is always advisable to have the contract reviewed by an attorney at the inception of the transaction whether you are buyer or seller.  The real estate contract controls all aspects of the sale. 

After the contract is approved and accepted, the attorneys will monitor the steps leading up to the closing.  Usually, the seller’s attorney will order the title insurance policy which insures the title which the seller is giving the buyer.  The seller’s attorney will also order a survey, if one is required.  For the closing, the seller’s attorney will prepare all the documents necessary for the transfer of the title.  The buyer’s attorney will monitor the financing dead line dates, and request extensions from the seller if necessary, and review the title report prepared by the seller.  At the closing, the buyer’s attorney will review all the documents from the seller and the mortgage company. 

In a commercial real estate transaction, the lawyers for both sides may need to take additional steps depending on the type of real estate being transferred. 

The following are some simple definitions of common terms you may encounter in the course of a real estate transaction: 

Purchase price:  The total price agreed upon by the parties for the sale of the property. 

Earnest money:  The amount of money given by the     purchaser to the seller, with the contract, to show good faith on the part of the buyer.  The money is held by a third party until the closing and is credited towards the total purchase price. 

Down payment:  The total amount of money the purchaser actually pays out of his/her own funds   towards the purchase price. 

Mortgage:  A loan taken by the purchaser from a third party for the balance of the purchaseprice owed by the buyer after the down payment.    

Title Insurance:  A policy of insurance purchased by the seller to insure that good title is passed to the buyer.  The buyer will purchase a title policy for the mortgage company insuring the company’s interest in the property. 

Survey:  A plat of the property drawn by an   independent surveyor showing the lot, placement of the building on the lot and any easements, encroachments or building lines affecting the property.  Surveys are usually not required for condominiums. 

Easement:  A legal right given to a third party allowing the party to come onto, cross over, or use part of the land.  The most common easements are for utilities. 

Encroachment:  Coming onto the land of another without the owner’s permission.  Depending on the encroachment, it may or may not affect the seller’s or buyer’s rights. 

Building line:  A line established by ordinance or deeds beyond which a person cannot build on the land.  The most common building line is a set back of a certain amount of feet from the street fronting the property.