In Illinois, when purchasing real estate, whether it be commercial or residential, there will often be a standard provision included in the contract providing for an attorney review period. It is important for you as the buyer or the seller to understand what this provision entails as you may end up being bound to unfriendly contract terms otherwise.
If you are considering buying or selling real estate, contact M&A Law Firm, P.C. and make sure that you are protecting yourself during this substantial transaction.
What is the Attorney Review Period in a Real Estate Contract?
When there is an attorney review period clause in a real estate contract, the initial contract that you sign will only be conditional. In most cases, you are only signing to confirm the agreed-upon price and that there will be an attorney review period. The typical attorney review period is 5 business days after signing the initial contract. During the 5-day period, your attorney will need to decide whether to:
- Approve the contract;
- Reject the contract; or
- Entering into negotiations to modify the contract.
The attorney review period allows either the buyer or the seller to modify the contract to meet their particular needs. Your attorney will review the contract and suggest modifications to the contract that would be in your best interest. If the contract is not expressly rejecting or approved, your attorney will make an initial request for modification of the original contract terms within the 5-days allowed for attorney review. Maybe you want to add real estate tax provisions to the contract. You might also want to make the contract contingent on certain terms as well. The attorney review period is the time to make sure all of these terms are added to the contract.
The other party has the right to accept or reject the proposed changes. The other party may also want to counter the proposed changes and make additional proposals. During these negotiations, either party may walk away from the transaction without penalty if there is a failure to agree upon mutually acceptable terms.
If the 5-day attorney review period passes without anyone making proposed changes, then no changes will be made to the initial contract terms. Both parties will be bound by the terms of the initial contract.
Protecting Your Rights in All Real Estate Transactions
Whether you are investing in a piece of property, buying a new home or selling an old one, or going to purchase a new piece of commercial property, real estate transactions have substantial legal and financial consequences for those involved. Make sure you are protecting your best interests in a deal that can have a big impact on your future by contacting M&A Law Firm, P.C. Proudly serving Cook County and Skokie, Illinois, M&A Law Firm, P.C. is here to provide sound legal counsel for all real estate transactions.