GENERAL TIME LINE
for Buying or Selling a Home in ChicagoLand
First: Buyer makes offer, Negotiations Finalize, Contract is Signed and sent to Attorneys.
WITHIN FIVE (5) BUSINESS DAYS*
(typically**) AFTER DATE OF CONTRACT ACCEPTANCE:
BUYER HAS HOME INSPECTED & ATTY SENDS WRITTEN NOTICE & REPORT TO SELLER
ATTORNEY APPROVAL (Attys for both Seller and Buyer)
BUYER SIGNS & SUBMITS WRITTEN LOAN APPLICATION TO LENDER.
BUYER’S ATTY REQUESTS ASSOCIATION DOCUMENTS FROM SELLER IN WRITING.
DURING THE PENDENCY OF THE CONTRACT:
BUYER TENDERS ALL EARNEST MONEY TO ESCROWEE BY THE CONTRACT DEADLINE.
CONDOMINIUM/TOWNHOME ASSOCIATION: (if applicable)
Seller provides all required docs to Buyer;
Buyer interviews with association, if required;
Seller pays all fees for documents & brings assessments current.
TITLE & SURVEY: Seller’s attorney orders, reviews and addresses defects for closing.
MUNICIPAL REQUIREMENTS FULFILLED BY SELLER OR BUYER AS APPLICABLE.
HOMEOWNERS’ INSURANCE: Buyers obtain policy & paid receipt for first year of ins.
BUYERS DILIGENTLY APPLY FOR LOAN AND MONITOR LOAN STATUS
OFTEN TAKES 30 DAYS - - MORE FOR FHA/VA LOANS
LENDER CONDUCTS APPRAISAL; VALUE MUST MEET PURCHASE PRICE
1-2 WEEKS PRIOR TO CLOSING:
SELLER’S ATTY SCHEDULES CLOSING TIME & LOCATION & NOTIFIES ALL.
SELLERS PRE-SIGN DOCS AT ATTY’S OFFICE IN LIEU OF ATTENDING CLOSING.
DAYS BEFORE CLOSING:
BUYER/SELLER PAY MUNICIPAL TRANSFER TAX & OBTAIN STAMP as applicable.
SELLERS MOVE OUT BY TIME OF CLOSING (not for post-closing possn.).
FINAL WALK THROUGH: Buyer re-checks property, usually 1-72 hours prior to closing.
LENDER SENDS BUYER’S CLOSING FIGURES TO TITLE CO.
SELLER’S ATTORNEY SENDS SELLER’S CLOSING FIGURES TO TITLE CO..
TITLE CO. PRODUCES PRELIMINARY SETTLEMENT STATEMENT (aka HUD-1).
BUYER’S ATTORNEY INFORMS BUYER OF AMOUNT OF $ FOR CLOSING.
TITLE CO. FACILITATES CLOSING & ACTS AS AGENT FOR BUYER’S LENDER.
BUYER BRINGS CASHIER CHECK OR WIRES MONEY REQUIRED FOR CLOSING
BUYER’S ATTY REVIEWS & BUYER SIGNS ALL LOAN DOCS.
ATTYS REVIEW & PARTIES SIGN ALL TITLE CO. DOCS.
SELLER’S ATTY PREPARES & BUYER’S ATTY REVIEWS ALL SELLER’S DOCS, e.g. Deed, Bill of Sale, Affidavit of Title & Survey.
“CLOSER” from Title Co. ENSURES BUYER’S LENDER’S REQMTS ARE MET FOR FUNDING.
TITLE CO. COLLECTS FUNDS FROM LENDER & BUYER.
SETTLEMENT STATEMENT: ATTYS REVIEW, LENDER APPROVES & PARTIES SIGN.
TITLE CO. CUTS CHECKS AS PROVIDED BY SETTLEMENT STATEMENT:
payment of all Buyer’s and Seller’s expenses;
proceeds check to Seller, if applicable;
commission checks to real estate agents.
BUYERS ARE GIVEN KEYS TO PROPERTY (not for post-closing possn.).
TITLE CO. SENDS DEED FOR RECORDING & ISSUES TITLE POLICY.
* Business days are typically defined in the contract as Monday through Friday, excluding Federal holidays. For example, if a contract is accepted on a Friday, then the first business day is Monday, and five business days thereafter would fall on the following Friday.
** Every contract is different and may be altered, however, the majority of boilerplate contract forms used by real estate agents in the Greater Chicago Metro Area, including the standard Multi-Board 5.0 Contract, provide for the number of days as outlined in the time line above.
NOTICE: This “Typical Time Line” is intended to be a useful tool as a brief, cursory, general, and non-detailed outline for residential real estate transactions in the Greater Chicago Metro Area. It may not be applicable or accurate for every transaction. Each residential real estate transaction is unique and individual legal representation is recommended. Each transation should have its own valid contract to govern the final agreement between the parties regarding their legal rights, obligations, deadlines, risks and options. An attorney can explain your legal rights, obligations, deadlines, risks and options in your real estate contract.
By Colleen L. Sahlas, Attorney
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