*Note, you do not need to register here to attend if you are already registered for the full 13 weeks. Agents who are not taking the full course are welcome to sign up here to attend any sessions they would like.
Week 5: Legal and Contracts Part 1
@Contract Administration will be covering the contract process – what is required and when – and the commission process – when you get paid, and how!
John E. Lovestrand, Esq. will be covering:
Iron-Clad Contracts, including contingencies, legal issues, disclosures, inspections, attornery review
1. Contracts / Overview
a. Correct Form – Condo/Townhome, Single Family, Multi-Unit Bldg, Coop, etc.
b. Complete Form – Date of Acceptance, Signed Acceptance, Insert # days blanks
2. “CASH” Offers
a. Truly “cash” buyer? GREAT
b. If not, merely strike the financing contingency period (no need to initial)
3. Real Estate Tax Credits
a. 110% Chicago / 105% suburbs
b. Better to insert than leave to AA
4. Agents Responsibilities
a. Single Family – not much
b. Townhomes – CCR’s (Declaration of Covenants, Conditions & Restrictions)
c. Condo’s – A LOT (Condo Declaration, By-Laws, Budget, Minutes, 22.1)
5. Parking – Condo’s
a. Deeded parking space UNIT? If so, it’s own PIN and its own Assessment
b. Assigned Limited Common Element? No PIN / NO Assessment (w/dwelling unit)
6. Storage – Condo’s
a. Applicable to your deal? If so, limited common element or common element
b. Assigned Limited Common Element? No PIN / NO Assessment (w/ dwelling unit)
a. Property accepted – no need to provide copy of Report / NO Attny letter
b. Property REJECTED outright – need to provide copy of Report / Attny KILL letter
c. Property concerns – need to provide copy of Report / Attny Request letter
d. Inspection contingency provision trumps “AS IS” paragraph
8. “Closing Costs” Credit Concerns
a. CAR Contract – usually penned on the face and initialed
b. Multi-Board Contract – paragraph 33 – amount inserted & initialed
c. Benefit of the Bargain – Six of one? Half a Dozen of another??
d. Lender Benchmarks – typically 3% of PP (e.g., $250 k PP = $7,500 CCC amount)
e. Inspection issues / credits – typically now lumped into same line item / category
i. Existing? Same condition, ordinary wear and tear excepted
ii. New Construction? Punch list – Agent should attend
b.Attendance at closing
i. Coop? Absolutely, especially for 1st time buyer
ii. List? Ideally yes, if schedule affords, or least send an assistant
iii. Show me the KEYS!
10. Email Concern – Beware of “acceptance” via email exchange
a. John Hancock no longer required?
b. Recent Illinois Supreme Court case
c. Always use equivocal (wiggle room) language (my client “MAY” accept…)
d. Avoid terms of art like “counter” or “agrees”