Quick Links
- Earnest Money — refunds & disputes
- Low Appraisal — options & scripts
- Rent-Back — template
- Home-Sale Contingency — kick-out
- Escrowee & Notices — plain English
- Taxes & Prorations — how it’s split
- Seller Contribution to Buyer’s Brokerage
- Condo/HOA Docs — what to review
- Title & Survey — “clean” title
Table of contents
- 1) Parties
- 2) The Real Estate
- 3) Price, Earnest, Credits
- 4) Seller Contribution to Buyer’s Brokerage Compensation
- 5) Closing
- 6) Possession
- 7) Fixtures & Personal Property
- 8) Financing
- 9) Homeowner’s Insurance
- 10) Flood Insurance Option
- 11) Statutory Disclosures
- 12) Taxes, Prorations & Escrows
- 13) Attorney Review
- 14) “As‑Is”
- 15) Inspections
- 16) Additional Inspections
- 17) Condo/HOA Documents
- 18) Deed
- 19) Municipal Requirements & Transfer Taxes
- 20) Title Commitment & Insurance
- 21) Plat of Survey
- 22) Damage or Condemnation
- 23) Final Condition & Walk‑Through
- 24) Seller Representations
- 25) Business Days & Hours
- 26) Electronic Signatures
- 27) Directions to Escrowee
- 28) Notices
- 29) Time is of the Essence & Fees
- 30) Dual Agency Confirmation
- 31) Sale of Buyer’s Real Estate
- 32) Cancellation of Prior Contracts
- 33) Home Warranty
- 34) Alternative Energy Systems
- 35) Possession After Closing (Rent‑Back)
- 36) Specified Party Approval
- 37) Approved Addendums
- 38) Miscellaneous Provisions
1) Parties
What it says: Lists the legal buyer(s)/seller(s) and how they are signing (individual, trust, LLC, POA).
Why it matters: Only the named parties are bound. Wrong names or missing capacity can delay closing.
- Name spelling and middle initials must match ID/deed.
- Trust/LLC? Confirm who has authority and how to sign.
- POA must be approved by title/underwriter.
2) The Real Estate
What it says: Identifies the property: address, legal description/PINs, parking/storage, appurtenances.
Why it matters: Confirms exactly what you’re buying so there’s no dispute later.
- Condo: include parking/storage PINs.
- New construction: lot and model must match plans.
- Double‑check unit numbers vs. mailing address.
3) Price, Earnest, Credits
What it says: Sets the purchase price, earnest amount and due date, any credits, and balance due.
Why it matters: Earnest money timelines are short; missing them can default buyer.
- Confirm escrowee name and delivery method.
- Upload proof of deposit to all parties.
- Large credits can affect loan underwriting.
4) Seller Contribution to Buyer’s Brokerage Compensation
What it says: Seller can agree to pay a % or $ toward the buyer’s brokerage fee—or decline.
Why it matters: It changes buyer cash-to-close and overall negotiation.
- If seller won’t contribute, negotiate price/credit instead.
- State the exact % or $ to avoid confusion.
5) Closing
What it says: Target closing date/place (usually title company).
Why it matters: All other deadlines back into this date; lender and movers depend on it.
- Avoid ‘on or before’ without a written process for moving the date.
- Check municipal stamp lead times.
6) Possession
What it says: Keys/possession typically at funding unless a rent-back is signed.
Why it matters: Controls when the buyer can move in and when seller must vacate.
- If rent-back, put daily rate, deposit, move-out time, utilities in writing.
7) Fixtures & Personal Property
What it says: Built-in/attached items stay unless excluded; personal property stays only if included.
Why it matters: Prevents fights over TVs, smart devices, EV chargers, window treatments.
- Write in exact items to remain/leave.
- Clarify smart devices, hubs, and app transfers.
- TVs may go; brackets usually stay.
8) Financing
What it says: Choose contingent, cash, or financing with no contingency.
Why it matters: Determines if buyer can cancel for financing problems and by when.
- State loan type and rate caps if used.
- Denial letter must meet contract rules.
- Don’t miss the loan app due date.
9) Homeowner’s Insurance
What it says: Buyer may cancel if unable to obtain acceptable homeowner’s insurance within the window.
Why it matters: Premiums and insurability can be deal‑breakers for some properties.
- Ask agent for a quote early, especially for older roofs or prior claims.
10) Flood Insurance Option
What it says: Buyer may cancel if flood insurance terms are unacceptable within time.
Why it matters: Extra cost and lender requirement in flood zones.
- Check FEMA maps and past claims; quote early.
11) Statutory Disclosures
What it says: Illinois disclosures (Residential Real Property Disclosure Act), lead (pre‑1978), radon pamphlet.
Why it matters: Non‑disclosure can create legal issues after closing.
- Do not guess—disclose what you know.
- Buyers: read and keep copies.
12) Taxes, Prorations & Escrows
What it says: Explains how taxes, assessments, and HOA items are prorated; may require an escrow if not fully taxed.
Why it matters: Ensures each party pays their fair share for the period they own the property.
- Ask title for the proration estimate before closing.
- Improved‑but‑not‑fully‑taxed? Expect a holdback.
13) Attorney Review
What it says: Typically 5 business days after acceptance to approve, propose changes, or disapprove.
Why it matters: Allows attorneys to fix issues or exit with minimal risk.
- Day 1 is first business day after acceptance.
- Get extensions in writing.
- Track overlapping inspection/earnest deadlines.
14) “As‑Is”
What it says: If initialed, seller won’t make repairs; buyer may still inspect if the inspection right is selected.
Why it matters: Shifts condition risk to buyer.
- Pair “as‑is” with an inspection right if you want the option to cancel.
15) Inspections
What it says: Buyer selects type: full request, info‑only, as‑is with inspection right, or none.
Why it matters: Controls what buyer can ask for and the cancellation window.
- Requests usually limited to material defects affecting safety/structure/systems.
- Use credits when scope is uncertain.
16) Additional Inspections
What it says: Termite/WDI, radon, well/septic when applicable.
Why it matters: Some loans or municipalities require them.
- Plan scheduling early; labs and vendors can delay.
17) Condo/HOA Documents
What it says: Buyer receives governing docs, budgets, assessments, and key disclosures (e.g., 22.1).
Why it matters: Let’s buyer cancel if unacceptable within the review window (if allowed).
- Red flags: special assessments, low reserves, litigation.
18) Deed
What it says: Seller delivers proper deed (often Warranty Deed).
Why it matters: Transfers legal ownership free of unwanted liens.
- Name/title must match; clear exceptions before closing.
19) Municipal Requirements & Transfer Taxes
What it says: City transfer stamps, inspections, water, zoning certs, and who pays which taxes.
Why it matters: Missing a stamp can stop closing.
- Check city web pages early for checklists and fees.
20) Title Commitment & Insurance
What it says: Shows ownership and exceptions; unacceptable items must be cured or insured over.
Why it matters: Protects buyer/lender from title problems.
- Review exceptions with your attorney.
- Order payoff statements early.
21) Plat of Survey
What it says: Real boundary survey (not a quick mortgage inspection).
Why it matters: Verifies fences, sheds, easements, and encroachments.
- Ask which survey type is required for your property.
22) Damage or Condemnation
What it says: If significant damage/condemnation before closing, buyer may terminate or take insurance proceeds and close.
Why it matters: Allocates risk while property is still the seller’s.
- Define what counts as ‘significant’ under the form.
23) Final Condition & Walk‑Through
What it says: Property to be broom clean and in substantially same condition; repairs done with receipts.
Why it matters: Final check before funds release.
- Photograph meter readings and key areas during walk‑through.
24) Seller Representations
What it says: Seller promises certain facts (permits, assessments, no undisclosed easements/hazards).
Why it matters: If a representation becomes untrue, there may be remedies including termination.
- Disclose known issues to avoid post‑closing claims.
25) Business Days & Hours
What it says: Defines ‘Business Day’ and the cut‑off time for notices (e.g., 8am–6pm CT).
Why it matters: Drives all your deadlines and extensions.
- If a date lands on a weekend/holiday, it usually rolls to next business day.
26) Electronic Signatures
What it says: Electronic signatures and delivery are valid.
Why it matters: Allows fast execution via e‑sign platforms.
- Confirm email addresses for all notice recipients.
27) Directions to Escrowee
What it says: How earnest money is held and released; interpleader if parties can’t agree.
Why it matters: Clarifies what escrowee can/can’t do without mutual direction.
- Keep deposit receipts; follow release instructions exactly.
28) Notices
What it says: Lists valid delivery methods and when notice counts as delivered.
Why it matters: Using the wrong method can void your notice.
- Use the addresses/emails written in the contract; copy attorneys.
29) Time is of the Essence & Fees
What it says: Deadlines are enforceable; fee‑shifting may apply depending on form.
Why it matters: Missing a date can cost real money.
- Calendar everything on day 1; ask for extensions early.
30) Dual Agency Confirmation
What it says: Confirms buyer and seller consent to dual agency if it applies.
Why it matters: Protects the brokerage and ensures transparency.
- If you don’t consent, say so before signing.
31) Sale of Buyer’s Real Estate
What it says: Contingency allows buyer to cancel if they can’t sell their home; seller often has a kick‑out right.
Why it matters: Balances buyer protection and seller marketing.
- Know the waiver clock and extra earnest needed to waive.
32) Cancellation of Prior Contracts
What it says: Requires cancellation of any prior purchase agreements that conflict.
Why it matters: Prevents double‑contract issues.
- Set a deadline to cancel the prior contract.
33) Home Warranty
What it says: If selected, seller provides a home warranty up to a set amount.
Why it matters: Helpful for minor post‑closing issues; not a substitute for inspections.
- Confirm coverage, trade call fee, and dates.
34) Alternative Energy Systems
What it says: Discloses solar or similar systems and whether owned, financed, or leased.
Why it matters: Affects title, utility bills, and sometimes roof/siding work.
- Get the agreement and payoff/transfer terms in writing.
35) Possession After Closing (Rent‑Back)
What it says: Sets temporary use/occupancy by seller after closing.
Why it matters: Avoids chaos when seller can’t move same day.
- Daily rate, deposit, utilities, keys, move‑out time. Use a written addendum.
36) Specified Party Approval
What it says: Contract can be contingent on approval by a named person/entity within a window.
Why it matters: Gives a decision‑maker (investor/parent) a formal veto period.
- Name the party clearly and track the deadline.
37) Approved Addendums
What it says: Recognizes standard addendums incorporated into the contract.
Why it matters: Keeps all riders organized and enforceable.
- Attach the correct versions and check all boxes.
38) Miscellaneous Provisions
What it says: Catch‑all: e.g., 1031 exchange references, new construction notes, commercial provisions.
Why it matters: Picks up things not covered elsewhere.
- Read carefully for anything unusual added by either side.