In the Chicago area, buying or selling a home is a process in which attorneys traditionally play a central role. Unlike in many other parts of the country, it is common for both buyer and seller to hire their own real estate lawyers, and the standard contract builds in a formal attorney review period. This guide explains how that process typically works, what Illinois law requires sellers to disclose, and the closing issues that come up most often in Chicago transactions.

The contract and attorney review

Most residential sales in the Chicago area use a version of the Multi-Board Residential Real Estate Contract, a standardized form developed by area REALTOR® associations and bar groups. The contract is usually signed by both parties before either attorney has reviewed it, which is why the attorney review provision matters.

Under the commonly used form, attorney review generally works like this:

  • After the contract is accepted, each party's attorney has a short period (commonly five business days) to review it.
  • During that period, an attorney can approve the contract, propose modifications, or, in some cases, disapprove it.
  • If the parties cannot agree on proposed modifications within the time allowed, the contract may be terminated under its terms.

Always read the specific version of the contract you signed. Deadlines and procedures vary between versions and can be changed by the parties.

Inspections and repair requests

The standard contract typically includes an inspection contingency, also commonly five business days, during which the buyer can have the property inspected. Based on the results, the buyer's attorney may request repairs, credits, or price adjustments, or the buyer may be able to terminate. Inspections may cover the structure, roof, mechanical systems, radon, sewer lines, and, for older buildings, lead-based paint. In Chicago, sewer scopes are common for older homes with clay or cast-iron lines.

The Illinois Residential Real Property Disclosure Act

The Residential Real Property Disclosure Act (765 ILCS 77) requires sellers of most residential property with one to four dwelling units, including condominium and cooperative units, to complete a statutory disclosure report.

What sellers must disclose

The form asks about known material defects, such as:

  • Flooding or recurring leakage in the basement or crawlspace;
  • Defects in the roof, foundation, walls, or floors;
  • Problems with the electrical, plumbing, heating, or air conditioning systems;
  • Known radon, lead-based paint, asbestos, or mold issues;
  • Unsafe conditions in the drinking water;
  • Boundary or zoning violations and certain other conditions.

Key features of the Act:

  • Timing. The seller should deliver the report to the buyer before the contract is signed.
  • Actual knowledge. The seller must disclose defects of which the seller has actual knowledge. The seller is not required to investigate or inspect.
  • Not a warranty. The report is not a warranty and does not replace a professional inspection.
  • Late disclosure. If the report is delivered after the contract is signed and it discloses a material defect, the buyer generally may terminate the contract within five business days after receiving the report and get earnest money back. That right ends once the property is conveyed at closing.
  • Supplements. If a seller learns of a new problem before closing, the seller must supplement the disclosure. A buyer's right to terminate after a supplement is more limited and depends on the circumstances spelled out in Section 40.

Exemptions

The Act does not apply to every sale. Exemptions in Section 15 include, among others, certain transfers by court order, foreclosure-related transfers, transfers between co-owners or to a spouse or relatives, transfers by fiduciaries administering an estate or trust, and sales of newly constructed homes that have never been occupied. If you are buying from a bank, an estate, or a builder, ask whether the Act applies.

Remedies and the one-year deadline

A seller who knowingly violates the Act or makes a disclosure with actual knowledge of its falsity can be liable for actual damages and court costs, and the court may award reasonable attorney's fees to the prevailing party. A claim under the Act generally must be filed within one year of the earlier of the date of possession, the date of occupancy, or the date the deed is recorded. Illinois courts have held that this one-year period is not extended by the date the buyer discovers the defect. Other claims, such as common-law fraud, may be available in some cases and have their own deadlines.

Other required disclosures

  • Radon. Under the Illinois Radon Awareness Act, sellers of residential property generally must provide a radon disclosure and the state's radon information pamphlet before the buyer is obligated under the contract.
  • Lead-based paint. For housing built before 1978, federal law requires a lead-based paint disclosure, a federal pamphlet, and a 10-day opportunity for the buyer to conduct a lead inspection (which the buyer may waive).
  • Condominiums. Under Section 22.1 of the Illinois Condominium Property Act, a unit owner selling a condo must provide documents and information such as the declaration, bylaws, rules, the current operating budget, reserves, any pending litigation, and any known special assessments. Review these carefully for financial health and leasing or pet restrictions.

Chicago-specific closing issues

Chicago transactions have several local wrinkles:

  • Water certificate. The City generally requires a Full Payment Certificate showing water and sewer charges are paid before a deed can be recorded with city transfer stamps.
  • Transfer taxes. State, county, and City of Chicago transfer taxes apply. Who pays which portion is set by law and the contract, and rates have changed over time, so confirm current amounts with your attorney or title company.
  • Property tax prorations. Cook County property taxes are paid in arrears, so the closing statement typically includes a credit from seller to buyer based on a proration formula in the contract.
  • Permits and zoning. Unpermitted basement apartments, garden units, or additions are common in older Chicago buildings. Checking building permit history and violation records can prevent surprises.
  • Title and survey. The title company issues a title commitment listing liens, easements, and other exceptions. A survey can reveal encroachments, which are common with older lots and fences.

Wire fraud: a serious, current risk

Real estate wire fraud schemes target buyers and sellers with convincing emails that appear to come from a title company or attorney, instructing them to wire funds to a new account. Always confirm wiring instructions by phone using a number you independently verify, never one listed in the email, and be suspicious of last-minute changes.

After closing: if you discover a defect

If you find a serious problem after moving in, act promptly:

  • Document the condition with photos and professional assessments;
  • Gather the disclosure report, inspection report, contract, and communications;
  • Note the one-year deadline under the Disclosure Act;
  • Consult an attorney about possible claims under the Act, fraud, or the contract.

When to involve a real estate attorney

In the Chicago area, it is generally advisable to involve an attorney as early as possible, ideally before attorney review begins. An attorney can be especially helpful when:

  • The property is a condo with a troubled association or special assessments;
  • The inspection reveals significant defects;
  • A seller disclosure is missing, late, or inconsistent with what you see;
  • The sale involves an estate, trust, short sale, or foreclosure;
  • There are title problems, unpermitted work, or boundary disputes.

If you would like your situation reviewed by Henry Dog, a Chicago attorney, you can share a short, general description through our contact form. If it is not a matter the attorney handles, you may be pointed toward other resources.

Frequently asked questions

What is attorney review in a Chicago real estate contract?

It is a period after the contract is accepted, commonly five business days under the widely used Multi-Board contract, during which each party's attorney can approve, propose modifications to, or in some circumstances disapprove the contract. Check the version you signed for exact terms.

What happens if the seller gives me the disclosure report after I sign the contract?

If the late report discloses a material defect, the Residential Real Property Disclosure Act generally lets the buyer terminate within five business days after receiving it and recover earnest money, as long as the property has not yet been conveyed.

How long do I have to sue a seller under the Disclosure Act?

Generally one year from the earlier of the date of possession, the date of occupancy, or the date the deed was recorded.