5 Things to Consider When Doing Contract for Deed in Chicago
Real Estate Law: Buyer's and Seller's Recognize Need for Legal Advice for Contract for Deed3 min read
With the ever-changing nature of real estate law, buyer’s and seller’s alike are becoming increasingly aware of the importance of legal advice when doing Contract for Deed. Whether you are a small business owner, a homebuyer or a seller in Chicago, understanding the fundamental considerations of contracting a deed is a must for executing a successful transaction. From securing legal counsel to sellers’ rights and responsibilities, a Contract for Deed transaction must be carefully and thoroughly planned and executed to ensure the parties’ best interests. Whether you’re looking for short-term or long-term advice, UpCounsel can provide experienced business lawyers who can help guide you through any Contract for Deed transaction.
1. Hire an Attorney
The most critical element of entering into a Contract for Deed is acquiring reliable legal counsel. An experienced attorney who is well-versed in the regulations and statutes of Chicago, and preferably one with experience related to real estate law, will be able to provide important insight to ensure that both parties are fully protected. As an entering party to the contract, special consideration should be given related to fraudulent or potentially invalid clauses and contracts. Your attorney’s guidance will be critical in determining both the legitimacy of the contracts’ contents, and in avoiding potential pitfalls related to the transaction itself.
2. Security Arrangements
The creation of security arrangements is critical when entering into a Contract for Deed, both for the seller and the buyer. The security arrangement is an agreement that outlines the conditions of the arrangement, including due dates, default procedures, and procedures related to the transfer of the deed itself. Pursuant to the circumstances specified within the arrangement, it is paramount that all parties adhere to the obligations that they have committed to.
3. Taxes and Insurance
In a Contract for Deed transaction, the buyer is responsible for the payment of the taxes related to the property and the homeowners insurance for the duration of the transaction. In addition, applicable fees and assessments should be agreed upon prior to signing the deed. It is important to understand that while the buyer is paying for these items, the seller is ultimately responsible for them.
4. Buyer’s Rights
In a Contract for Deed, the buyer of the property does have certain rights that are held to by the seller. For example, if there are issues related to the condition of the property, or any other terms or conditions that have not been fulfilled, the buyer can report them to their attorney, who may then pursue legal remedies on behalf of the buyer.
5. Seller’s Rights
The seller of the property is also afforded certain rights in a Contract for Deed, most notably the ability to reclaim the deed in the event that the buyer is not adhering to the terms of the deed and/or is in default. The legal counsel of the seller is instrumental in understanding the recourse available to the seller, both in cases of default and non-default.
Contract for Deed transactions must be carefully planned and monitored in order to ensure that the parties are held to their respective obligations, afforded their rights, and that all terms and conditions are satisfied. Whether on the buyer or seller’s side, it’s important to retain experienced legal counsel who is well-versed in the intricate regulations and statutes of Chicago. UpCounsel provides access to experienced business attorneys who can provide valuable insight related to any Contract for Deed transaction, including understanding local regulations and protecting your rights.