Buying and selling a home in Chicago
Managing Attorney David Wang personally handles residential and commercial real estate transactions in Illinois, covering the City of Chicago and surrounding areas such as Cook, DuPage and Lake Counties. From the moment you sign the purchase contract until you get the keys or receive the sale proceeds on closing day, the attorney personally handles contract review, negotiation, title and closing documents. He communicates in English, Chinese and French, so you can work in Chinese throughout.
Unlike many other parts of the United States, in the Chicago area the buyer and the seller of a home usually each hire their own attorney. The commonly used Multi-Board residential purchase contract itself sets aside a review period for both attorneys; the later inspection negotiations, review of the title commitment and the survey, the deed and closing documents, and the review and signing on closing day are generally all completed by both attorneys working with the brokers, the lender and the title company. The broker finds the home, sets the price and negotiates price; the attorney handles the contract terms and legal documents. The roles are different. For Chinese-speaking clients who are buying in the U.S. for the first time, who live abroad, or whose funds come from overseas, having someone explain each step clearly in Chinese removes a lot of worry.
Section guides
Buying a home in Chicago
The Multi-Board contract and attorney review period, inspection and negotiating repairs or credits, the mortgage contingency, title and survey, condo 22.1 documents, property tax exemptions after closing, and whose name Chinese-speaking buyers should take title in.
Selling a home in Chicago
Seller disclosure obligations, contract review and post-inspection negotiation, paying off the existing mortgage and clearing liens, property tax prorations, transfer tax declarations and Chicago water certification, and how to sell while you are abroad.
Closing and title
How to read a title commitment, owner’s and lender’s policies, types of deeds, a comparison of ways to hold title, closing documents and recording, and preventing wire fraud.
Overseas buyers and sellers
Foreign nationals buying a home in Illinois, how buying a home relates to immigration status, signing documents outside the U.S., FIRPTA withholding principles, tax filing for rental properties, and records of funds.
From contract to closing: what the attorney does at each step
The example below is a typical Chicago-area home sale (using the Multi-Board Residential Real Estate Contract; version 8.0 is currently in common use). The specific deadlines are those in the contract you sign; the process differs for condos, new construction, short sales, foreclosures and commercial property.
| Step | What happens | What the attorney does |
|---|---|---|
| 1. Viewing and offer | The buyer’s broker helps the buyer view homes and make an offer; once the seller accepts, the contract is formed and the deadlines begin to run from the Date of Acceptance. | You can contact an attorney before making an offer to learn which contract terms can later be changed through attorney review and which deadlines start running at the same time. Before signing, the seller should give the buyer the residential disclosure report required by state law (765 ILCS 77); the attorney will remind both sides. |
| 2. Signing the contract | Both parties sign the Multi-Board contract and its riders (for example, a condo rider, mortgage contingency, inspection options). | Confirm that the purchase price, earnest money, closing date, mortgage contingency, inspection options, personal property included in the sale and so on, as filled in on the contract, match what the parties agreed, and send the contract to the other side’s attorney to start the review period. |
| 3. Attorney review period | Under the 8.0 contract, within 5 business days after the Date of Acceptance the parties’ attorneys may approve the contract, disapprove it (not based solely on price), or propose modifications; proposing modifications is treated as a counteroffer. If written agreement on all modifications has not been reached within 10 business days after the Date of Acceptance, either party may terminate the contract by written notice. If no notice is given within the period, this provision is deemed waived and the contract remains in effect. | Review the contract clause by clause and propose modifications (common ones include the closing date and possession, who holds the earnest money, the mortgage and appraisal contingencies, the scope of an “as is” sale, condo documents, and credits at closing), and negotiate with the other side’s attorney until both parties confirm in writing. |
| 4. Inspection and negotiation | The buyer hires a home inspector to examine the property. If the contract includes the inspection provision, the buyer generally must make requests or decide whether to withdraw within 5 business days after the Date of Acceptance (lead-based paint testing and similar items have separate deadlines). | Based on the inspection report, request repairs, a credit or a price reduction on the buyer’s behalf, or respond on the seller’s behalf; put the agreed result into a written modification. If the buyer decides to withdraw, send notice within the deadline under the contract. |
| 5. Loan approval | If there is a mortgage contingency, the buyer must obtain the lender’s written approval before the deadline in the contract; the property usually must also be appraised. | Follow the loan’s progress and remind you of the contract deadline; if the loan is not approved or the appraisal comes in below the purchase price, explain the options the contract gives you and send notice on time. The attorney does not recommend lenders; loan terms are decided by the lender. |
| 6. Title commitment and survey | The title company issues a title commitment listing the current state of title, exceptions, and requirements to be met before closing; a single-family home usually also needs a survey. A condo buyer must receive the documents the association provides under Section 22.1 of the Condominium Property Act. | Review the title for prior mortgages, liens, easements, building restrictions and encroachments shown on the survey, and require the other side to clear them before closing; review the condo declaration, budget, reserves, litigation and other documents, and flag risks. |
| 7. Pre-closing check | Before closing, the buyer does a final walk-through of the property to confirm its condition and the agreed repairs. | If problems arise (for example, agreed repairs were not done or items were removed), negotiate a credit at closing or another solution with the other side’s attorney. At the same time, check every item on the closing statement (ALTA settlement statement): the price, earnest money, prorated property taxes and association dues, transfer taxes, fees and amounts payable. |
| 8. Closing and recording | Both parties sign the closing documents at the title company and funds are transferred as instructed; the deed is sent for recording with the county (in Cook County, the Recordings department of the Cook County Clerk). | The seller’s attorney prepares the deed, the transfer declaration (Illinois MyDec electronic filing), payment certificates and other documents; the buyer’s attorney reviews these documents and accompanies the buyer at signing. After closing, the attorney reminds the buyer to apply for property tax exemptions on time (for example, Cook County’s Homeowner Exemption, which a new owner must apply for themselves). |
A few principles about money: Illinois state and county real estate transfer taxes are usually paid by the seller; the City of Chicago transfer tax has two parts, with the city portion usually paid by the buyer and the CTA (Chicago Transit Authority) portion usually paid by the seller. A transfer of property in Chicago also requires paying off water and sewer charges and obtaining a Full Payment Certificate for the water account from the city Department of Finance. Cook County property taxes are paid “in arrears,” so at closing the seller usually credits the buyer a prorated amount in the manner set out in the contract. Specific amounts are calculated under current rules and bills, and the allocation of each item can also be agreed otherwise in the contract.
Real estate matters we handle
All of the matters below are handled under Illinois law, by David Wang personally. For every transaction we first learn about your status, the source of your funds and whose name you plan to take title in, and then look at the contract and the title.
Representing buyers
Contract review and modifications, inspection negotiations, following up on mortgage and appraisal contingencies, title commitment and survey review, condo document review, checking the closing statement, and attending closing. Home buying guide ›
Representing sellers
Disclosure report and contract, post-inspection negotiation, paying off the existing mortgage (payoff) and clearing liens, preparing the deed and transfer declarations, obtaining the Chicago water Full Payment Certificate, and closing and receiving proceeds. Home selling guide ›
Condos
For buyers, reviewing the 22.1 documents: declaration and rules, budget and reserves, known or proposed special assessments, association litigation, and insurance; for sellers, requesting these documents from the association on time and delivering them to the buyer.
Single-family homes, townhouses and investment property
Surveys and encroachment issues for single-family homes, handover of leases and security deposits for two- to four-unit multifamily buildings, and how to hold title to and lease out investment property. For tax principles on rental income, see our tax section.
Commercial property purchases and leases
Purchase contracts and due diligence for storefronts, office buildings and small commercial buildings, and review and negotiation of commercial leases. Commercial lease guide ›
Remote transactions from abroad
If you are in China or another country, you can complete the transaction through a Power of Attorney or by signing the closing documents where you are; documents signed in China usually must be notarized in China and receive an apostille. Overseas buyers and sellers ›
Holding title in an LLC or trust
Depending on your purpose, we compare holding title individually, jointly as spouses, in a land trust, in a revocable living trust, or in an LLC, and issue the deed at closing in the chosen form. See Living trusts and Illinois LLCs.
Common situations for Chinese-speaking clients
Buying a home in the U.S. for the first time
The U.S. home buying process, terminology and division of roles are very different from those in China, for example: where the earnest money is held, when you can get out of the contract, what title insurance is, and what to bring on closing day. Before you sign, we walk you through the process in Chinese, and then tell you in advance what to do at each step.
Buying on a visa or a green card
Buying a home in Illinois does not in itself require being a U.S. citizen or green card holder. Whether you can get a loan, and on what terms, is decided by the lender based on your status, income and credit. Buying a home also does not confer immigration status; in this respect it differs from EB-5.
Funds wired from overseas
Sending funds out of China must comply with China’s foreign exchange rules; our firm does not give opinions on Chinese law. On the U.S. side: for large wires, banks and lenders may ask about the source of funds, so keep complete transfer records and move the down payment and closing funds into place as early as possible.
Wire fraud
Real estate transactions are a prime target for wire fraud: scammers send emails impersonating the attorney, broker or title company to “change the receiving account.” Before sending money on any wire instruction, call to verify using a phone number you already knew beforehand. If you have already been defrauded, contact your bank immediately and file a report with the FBI’s IC3.
Foreign sellers and FIRPTA
When a foreign person sells U.S. real property, the buyer generally must withhold part of the amount realized at closing under Section 1445 of the Internal Revenue Code and pay it to the IRS; withholding can be reduced or eliminated if certain conditions are met. Because the withholding obligation falls on the buyer, whether the seller is a foreign person matters to both buyer and seller. We explain only the principles; for specifics, please work with an accountant.
A home in a divorce or an inheritance
When dividing or selling a home in a divorce, or inheriting a Chicago property after a parent dies, you first need to establish who has authority to sell and which court documents are required before the transaction. See Divorce and property division and Cross-border estate planning.
Frequently asked questions
I already have a broker. Do I still need an attorney?
It is worth considering. The broker finds the home, sets the price and negotiates price; modifying contract terms, title issues, and the deed and closing documents are legal matters. In the Chicago area it is common practice for buyer and seller each to hire an attorney, and the Multi-Board contract specifically sets aside a review period for attorneys. The attorney works with your broker, lender and title company rather than replacing them.
I have already signed the contract. Is it too late to hire an attorney?
It depends on whether the review period is still open. Under the 8.0 Multi-Board contract, the attorney review period is generally 5 business days after the Date of Acceptance, and if no notice is given within that period, the provision is deemed waived. So contact an attorney right after you sign, and send the full contract together with all riders.
Can I get out of the contract during attorney review?
Under the 8.0 contract, the attorney may disapprove (not based solely on price) or propose modifications during the review period; after modifications are proposed, if the parties have not reached written agreement on all of them within 10 business days after the Date of Acceptance, either party may terminate the contract by written notice. The actual effect depends on the version and terms of the contract you signed; have your attorney send notice on time and in the manner the contract requires.
I live abroad. Can I buy or sell a home in Chicago?
Yes. A common approach is to sign a power of attorney so that someone you trust signs the closing documents for you, or to sign the closing documents where you are and mail them back. Documents signed in China usually need to be notarized by a Chinese notary office and receive an apostille; lenders and title companies may have their own requirements for powers of attorney and signing methods, so confirm them in advance. See Overseas buyers and sellers and Apostilles.
Whose name should the home be in? Should I use an LLC or a trust?
There is no one answer; it depends on your purpose (living in it or renting it out), marital status, whether there is a mortgage, estate plans and tax situation. A primary residence is commonly held individually or jointly by spouses, or placed in a revocable living trust; an LLC is sometimes considered for a rental property, but if there is a mortgage you must first confirm whether the lender accepts it. For a comparison of the options, see Closing and title.
About how much are attorney fees and closing costs?
Attorney fees are quoted separately and confirmed in writing once we understand the type of transaction (buyer or seller, residential or commercial, whether overseas signing or company ownership is involved). Transfer taxes, recording fees and title insurance premiums are determined by current state, county and city rules and the title company’s rate schedule; they are listed on the closing statement before closing, and we review them with you item by item.
Can we communicate in Chinese throughout?
Yes. David Wang personally communicates in English, Chinese and French. Contracts and closing documents are signed in English, and we explain their meaning clause by clause in Chinese; we handle communications with the other side’s attorney, brokers, lenders and the title company in English.
Official sources
- Illinois Residential Real Property Disclosure Act (765 ILCS 77): Illinois General Assembly
- Cook County property tax exemptions: Cook County Assessor – Exemptions
- City of Chicago real property transfer tax: City of Chicago – Real Property Transfer Tax
- FIRPTA withholding: IRS – FIRPTA Withholding
- Reporting internet fraud: FBI Internet Crime Complaint Center (IC3)
Buying or selling a home? Have an attorney look at the contract first. Book an attorney consultation, or call (312) 519-1115 or reach us on WeChat at WangLawpllc. After you sign, please send us the contract and riders as soon as possible so you do not miss the attorney review and inspection periods. We do not guarantee the outcome of any transaction.
This page is general information, not legal or tax advice. Real estate transactions are governed by Illinois law and county and city rules; contract terms, taxes, fees and closing requirements may change, and outcomes depend on the specific facts. Consult an attorney before signing and rely on official sources. Our firm provides real estate transaction services under Illinois law.