The following is a general outline of how a residential real estate
transaction is closed in the Chicagoland metropolitan area, using a title
company and escrow closing.
PHASE I: CONTRACTING
Buyer: Sign real estate contract and give broker earnest money check.
Seller: Sign real estate contract making it binding upon both parties.
Realtor: Gives one signed copy of contract to seller and one to buyer. Copies also forwarded to attorneys
for review. Earnest money is deposited in an escrow account.
Attorneys: Review the contract for any possible modifications (typically within 5 days of acceptance of the
contract).
Seller: Give their attorney or the REALTOR a copy of their last paid tax bill, survey and owner's title policy.
Buyer: Arrange for home inspection, if necessary.
Buyer: Make applications for mortgage; order homeowner insurance policy.
Buyer: Increase earnest money, if specified in contract.
PHASE II: PRE-CLOSING PREPARATIONS
Seller Atty: As may be necessary: (1) order title commitment and survey; (2) obtain water & zoning
certificates; and (3) request payoff letter from Seller's mortgagee. In the case of a condominium, request
paid assessment letter and release of any right of first refusal.
Buyer: Confirm that mortgage commitment is obtained as provided. Make sure Seller's attorney sends the
title policy to buyer's lender.
Lender: Prepares mortgage and note and advises buyers that they are ready for signature.
Seller Atty: Schedules closing and prepare all Seller's documents, including deed, bill of sale, transfer
declarations, etc.
Buyer: Obtain figure for the amount required to close and then obtain a certified or cashie's check for this
amount.
PHASE III: CLOSING
All Parties: Meet for closing - money and documents change hands. Grant possession in accord with
contract. Make sure all utilities have been notified and meters read.
At Closing, Sellers usually pay for:
Share of title expense
Real estate commission
State and County transfer taxes
Pro rata share of taxes
Survey, if required
Attorney's fee
At Closing, Buyers usually pay for:
Share of title expense - lender's duplicate title policy
Service charges on mortgage
City of Chicago (or other municipality) Transfer Tax
Insurance Premium
Prorated month's interest on mortgage
Attorneys fee
WARNING AND DISCLAIMER:
The information contained herein is provided solely for the reader's benefit
in becoming familiar with the legal matters discussed. Your particular facts
may be different from the points above. You should not rely on the above data without
first consulting an attorney to discuss the specific facts of your case and the law of your particular State.
