Understanding the Attorney Review Period in Chicago Real Estate Deals

Attorney Kamal
Oct 1
3 min read

Navigating the real estate market in Chicago can feel overwhelming for both buyers and sellers. One essential aspect to grasp is the attorney review period. This period acts as a protective measure, allowing you to ensure your interests are well-managed before finalizing a deal. In this post, we will explore what the attorney review period is, its importance, and how you can leverage it effectively to safeguard yourself in a Chicago real estate transaction.

What is the Attorney Review Period?

The attorney review period is a specific timeframe in which both parties can have their attorneys review the purchase agreement—typically five business days long. This period begins right after both the buyer and seller sign the contract. It is more than just a formality; it's a crucial chance for legal professionals to examine the details of the agreement and make sure their clients' interests are protected.

In Illinois, this review period is unique and plays an important role in real estate transactions. It allows for negotiations and modifications to the contract, functioning as a safety net for both buyers and sellers.

Why is the Attorney Review Period Important?

Understanding the significance of the attorney review period is vital for several reasons:

Legal Protection: Attorneys can spot potential legal flaws within the contract. For example, they might find ambiguous language that could create disputes later on. Nearly 60% of real estate contracts contain clauses that can be improved or clarified, making this review crucial.
Negotiation Opportunities: Both parties may wish to alter the terms of the agreement. Whether it’s negotiating a lower purchase price or extending the inspection period, this time allows for essential discussions.
Due Diligence: Buyers can spend this period reviewing critical documents such as property disclosures and title reports. For instance, one in five buyers reports discovering significant issues during this phase that could affect their decision.
Peace of Mind: Knowing that a legal expert is reviewing the contract can reduce anxiety. Around 70% of first-time buyers feel more secure with their contracts reviewed by an attorney.

How to Navigate the Attorney Review Period

To utilize the attorney review period effectively, follow these steps:

1. Hire an Experienced Real Estate Attorney

The first step is to engage a real estate attorney with expertise in Chicago transactions. They can provide detailed insights and guidance. For example, an attorney familiar with local markets can help navigate unique issues that may arise in areas like Lincoln Park or Wicker Park.

2. Communicate Clearly with Your Attorney

Once you've hired an attorney, share your goals and concerns. Be transparent about any specific issues you want them to look into, such as a contingency for financing or an unusual request in the contract.

3. Review the Contract Thoroughly

Before the attorney review period starts, read the purchase agreement carefully. Understanding the terms can help you identify problematic areas early. Research shows that buyers who take this step are 25% more likely to spot important issues.

4. Be Open to Negotiation

If your attorney uncovers problems or suggests changes, be willing to negotiate. This review phase is your chance to advocate for your best interests. For instance, if inspection results reveal necessary repairs, you can negotiate a price deduction.

5. Stay Informed

Stay involved throughout the review process. Regular communication with your attorney will help you understand any developments, enabling you to make timely and informed decisions.

Common Issues Addressed During the Attorney Review Period

Several common issues are usually addressed during the attorney review period, including:

Contingencies: Buyers often include conditions, like financing or inspection contingencies. Attorneys verify these clauses are well-defined to protect the buyer’s interests and avoid future disagreements.
Closing Costs: Attorneys closely analyze the allocation of closing costs. They ensure that both parties understand their financial responsibilities, which can prevent unexpected expenses at closing. In Chicago, closing costs can range from 2% to 5% of the purchase price.

Final Thoughts on the Attorney Review Period

The attorney review period is a vital element in real estate transactions in Chicago, offering both buyers and sellers a crucial chance to safeguard their interests. By understanding its significance and taking proactive steps to navigate this phase successfully, you will facilitate a smoother transaction process.

Remember, hiring a skilled real estate attorney and maintaining open lines of communication are essential for making the most of this period. With the right approach, you can confidently advance in your Chicago real estate deal, knowing that your interests are being protected.