" " - Jen Corso

See What to Review in the Contract Timeline

Whether you're buying or selling a home, understanding the contract timeline is essential. A real estate contract contains important deadlines that can affect your transaction from start to finish. Missing a deadline could result in delays, additional costs, or even the cancellation of the contract.

Here's what you should review in your contract timeline:

1. Attorney Review Period

In Illinois, most residential contracts include an attorney review period, typically lasting five business days after acceptance of the contract.

During this time:

• 🟠 Attorneys review the contract terms.

• 🟠 Proposed modifications may be requested.

• 🟠 Buyers and sellers can negotiate changes.

• 🟠 The contract may be canceled if an agreement cannot be reached.

  Why it matters: This is your opportunity to ensure the contract protects your interests.

2. Earnest Money Deadline

The contract will specify when earnest money must be deposited.

Review:

• 🟠 The amount due.

• 🟠 Where the funds should be delivered.

• 🟠 The deadline for submitting the deposit.

Why it matters: Missing this deadline could put you in breach of contract.

3. Home Inspection Timeline

Buyers typically have a limited period to complete inspections.

Common inspections include:

• 🟠 General home inspection

• 🟠 Radon inspection

• 🟠 Pest inspection

• 🟠 Sewer scope inspection (Private well and Sewer)

After inspections, buyers may request repairs, credits, or choose to move forward as-is.

Why it matters: Once inspection deadlines pass, buyers may lose the ability to negotiate repairs.

4. Mortgage Contingency Date

If financing is involved, the contract will include a mortgage contingency deadline.

Review:

• 🟠 Loan application deadlines.

• 🟠 Required documentation requests from the lender.

• 🟠 Mortgage approval dates.

Why it matters: Staying in close communication with your lender helps avoid financing delays.

5. Appraisal Deadline

Lenders typically require an appraisal to verify the home's value.

If the property appraises below the purchase price, buyers and sellers may need to:

• 🟠 Renegotiate the price.

• 🟠 Increase the down payment.

• 🟠 Challenge the appraisal.

• 🟠 Cancel the contract, depending on contract terms.

Why it matters: Appraisal issues can impact financing and closing.

6. Title Commitment and Survey Review

The title company will provide documents for review, including:

• 🟠 Title commitment

• 🟠 Property survey (if applicable)

• 🟠 Easements or restrictions affecting the property

Why it matters: This ensures there are no unexpected liens or ownership issues.

7. Contingency Deadlines

Many contracts include additional contingencies, such as:

• 🟠 Home sale contingency

• 🟠 Financing contingency

• 🟠 Inspection contingency

Make sure you understand:

• 🟠 What conditions must be met.

• 🟠 The deadline for satisfying each contingency.

Why it matters: Missing contingency deadlines could limit your options.

8. Final Walk-Through

Typically completed within 24 hours before closing, the final walk-through allows buyers to verify:

• 🟠 Agreed-upon repairs were completed.

• 🟠 The home is in substantially the same condition.

• 🟠 Included appliances and fixtures remain.

Why it matters: This is your final opportunity to address concerns before closing.

I worked with a FSBO seller's and brought my buyers to the final walk-through an hour before the closing. The sellers were there. So was their stuff. My buyers and my eyes bugged out. They were told to vacant the home by the time of closing. They did not listen. The buyers had to charge them per day for 3 weeks so they could move out. So, my buyers couldn't move in until then.

I usually try to go through the final walk-through an hour or two before the closing because pipes can break during the night if you check on the home the night before. It can delay the closing, but you'd rather do that than deal with any issues after to close.

9. Closing Date

Review:

• 🟠 The scheduled closing date and time.

• 🟠 Required identification and documents.

• 🟠 Funds needed for closing.

Why it matters: Proper preparation helps ensure a smooth and stress-free closing.

Don't Navigate the Contract Alone

Real estate contracts involve numerous deadlines and details. Having an experienced real estate professional, attorney, and lender on your side can help keep your transaction on track and protect your interests every step of the way. Even in the contract is says "Time is of the essence.".

Have questions about buying or selling a home in the Chicago suburbs? Contact me today, and let's make sure you understand every step of the contract timeline.

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