New Closing Statement Coming Soon

The settlement statement at closing will soon be significantly changing and will no longer be produced by HUD.  It will be slightly longer, but hopefully easier to understand.

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Homeowner's Insurance Required By Lenders

If you are buying a property using a mortgage, you will be required by your lender to carry homeowner's insurance.  This is because the property is acting as collateral for the loan, so if the property is destroyed or damaged, any insurance proceeds will first be paid to the lender until their interest is covered, then any additional proceeds will be payable to the buyer.

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Home Warranty Section

In the new 6.0 contract, the home warranty section was moved to the optional paragraphs. Be aware that the language is slightly different, with an actual cost to be inserted.

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6.0 Real Estate Contract Coming Soon

The new 6.0 Real Estate Contract should be available within a couple weeks. It looks like it will be approved for use all over northern Illinois.

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Purchase Contingency

If your home purchase is contingent on the sale of your prior house, be sure to indicate that on the contract.  This will enable you to terminate the contract if you are unable to sell the house. 

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Acceptance Date

When signing a contract as a seller, make sure you enter an Acceptance Date with your signature.  This is a very important date as the rest of the contract tolls from this date.

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"As-Is" Contracts

Even if the property is sold "as-is," the buyer can still terminate the contract following an inspection if it is not satisfactory.  The buyer just may not have the right to raise inspection items.

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