In this article, you will learn:
- When to perform a title search
- Obligation for selling a home and if the home is sold as is
- How to protect yourself when selling your home
The Illinois Residential Real Property Disclosure Act is applicable to many transactions and requires that certain material defects be disclosed. In many instances, there are also disclosures that are required for things like lead, mold and radon. During the attorney review period purchasers can also request that certain information be disclosed relative to the condition of the property, insurance claims, water intrusion, and the like even if statutory disclosures are not required.
A Title Search Explained
A title search is going to disclose liens and encumbrances against the property. For instance, it will reveal mortgages, easements, tax obligations, judgments, and other items impacting the use and ownership of the property. It’s always best to get a title search right away in order to ensure that there are no surprises when you are about to get involved in a transaction. Also, the earlier that you can locate any potential title issues the more time that there is to resolve any issues.
The Legal Meaning Of Selling A Home As Is
In Chicagoland there is a standard form contract that attorneys use. Certain provisions are optional, such as the provision to sell a property “as-is”. When you buy a property “as-is” you are agreeing to buy the property and not ask that the seller make any repairs or ask for any credits after you inspect the property. With that being said, it’s not all that uncommon for a buyer to ask for repairs or a price reduction after completing their inspection. While this is something that is frowned upon, it is not terribly uncommon but, when you do an inspection as a buyer, sometimes the properties are in a much worse condition than you expect. So, even if it is an as is purchase, from time to time situations will warrant further negotiations relative to the condition of the property following inspection.
Who Is Responsible For Future Repairs For A Home Being Sold As Is
If a home is sold as is, the buyer is responsible for all repairs unless different terms are negotiated during attorney review. In the standard contract, there are five business days from the date of acceptance for the attorneys to review and suggest modifications to the contract. If you enter into an as-is contract and the condition of the property is far worse than anticipated, you can cancel the deal during attorney review or request modifications to the contract, such as asking for the seller to make repairs.
What To Do To Best Protect Yourself When Selling Your Home
Having competent representation and ensuring all of your ducks are in a row as early as possible is essential to protecting yourself from the very early stages.
How To Know If You Will Owe Taxes When Selling Your House
There are several factors that come into play in determining whether or not you will owe taxes when selling your home but, as a general rule, you will not need to pay taxes on capital gains of your primary residence up to $250,000 ($500,000 if you are a married couple). There are also ways to structure a transaction in order to minimize tax liability so it is always good to consult with an attorney and CPA with respect to tax issues.
For more information on Property Defects In A Real Estate Transaction, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (312) 313-1033 today.