A guide to selling a home in ChicagoSelling a home in Chicago

Wang Law Firm, LLC · David Wang, Managing Attorney · Attorney-reviewed · Updated October 2026

In the Chicago area, buyers and sellers of residential property usually each hire their own attorney. The seller’s attorney reviews and revises the contract, responds to the buyer’s inspection requests, clears obstacles to title (existing mortgages, liens and so on), prepares the deed and closing documents, checks the settlement statement, and finally makes sure the sale proceeds reach you safely. David Wang personally represents clients in Illinois residential and commercial real estate transactions and communicates with you in English, Chinese or French throughout.

Below, we walk through the sale step by step: the rules at each stage, what the attorney does, and situations Chinese-speaking sellers often encounter.

Before listing: sort out these points first

• Whose name is on title: an individual, spouses jointly, a land trust, a living trust or an LLC. Each form of ownership calls for different signers and different documents.
• How much you still owe: including any home equity loan or line of credit (HELOC), all of which must be paid off at closing.
• Known problems with the property: leaks, basement water, the roof, termites, unpermitted alterations and the like, which affect how you complete the disclosure form.
• Condos or homeowners associations: learn about any restrictions in the association’s governing documents on sales and rentals, and how long it takes to obtain resale documents.
• Estimate your net proceeds: the sale price minus loan payoffs, brokerage commission, transfer taxes, the property tax credit, and title and closing costs; where taxes are involved, also have an accountant estimate your capital gain.

The seller’s disclosure obligations

The Illinois Residential Real Property Disclosure Act

Under the Residential Real Property Disclosure Act (765 ILCS 77), a seller of a 1–4 unit residence, a cooperative unit or a condominium unit must complete the statutory disclosure form and give it to the prospective buyer before the contract is signed (Section 20). The form asks, item by item, whether the seller is aware of certain problems with the property, including flooding or leakage, the foundation, the roof, electrical and plumbing systems, heating and air conditioning, radon, asbestos, lead-based paint or lead water pipes, termites, underground storage tanks, boundary disputes, and uncorrected notices of violation (Section 35).

• The standard is actual knowledge: the seller must disclose material defects of which the seller has actual knowledge and has no duty to investigate specifically (Section 25). But do not conceal known problems, and do not fill in the form based on guesswork.
• Errors discovered after signing must be supplemented: if before closing the seller learns that an earlier disclosure contained an error or omission, the seller must supplement it in writing (Section 30).
• Material defects disclosed only after the contract is signed: the buyer may terminate the contract in writing within 5 business days after receiving the disclosure and recover the earnest money (Section 40).
• Limitations period: an action for violation of the Act must be brought within one year after the buyer takes possession, occupies the property or the deed is recorded, whichever occurs first (Section 60).

Section 15 lists exemptions, for example: transfers pursuant to court order (including probate and transfers between spouses in a divorce), foreclosure-related transfers, transfers by a fiduciary in the administration of an estate or trust, transfers between co-owners, transfers to a spouse or lineal relatives, transfers to or from a governmental entity, and newly built homes that have never been occupied. Whether an exemption applies depends on the specific transaction; if the buyer or the contract requires disclosure anyway, you must still comply.

Homes built before 1978: lead-based paint disclosure

Under the federal lead-based paint disclosure rule, before the contract takes effect a seller of housing built before 1978 must: give the buyer the federally approved lead hazard pamphlet; disclose any known lead-based paint or lead hazards and provide any related reports in the seller’s possession; attach a lead warning statement to the contract, signed by the parties; and give the buyer 10 days to conduct a lead inspection (the parties may change this in writing, and the buyer may waive it). The related documents must be kept for at least 3 years.

The contract and attorney review

Residential sales in the Chicago area usually use the Multi-Board Residential Real Estate Contract; the current version is 8.0 (available since February 2025). Under its attorney review clause (Paragraph 13), within 5 business days after the date of acceptance, either party’s attorney may give written notice approving the contract, disapproving it (but not on the basis of price alone), or proposing modifications (other than to price). Proposed modifications are treated as a counteroffer, and if the parties have not agreed in writing on all modifications within 10 business days after the date of acceptance, either party may give notice terminating the contract. If no notice is given within the period, the right of attorney review is deemed waived and the contract remains in effect. The text of the contract you actually sign controls.

Provisions a seller’s attorney commonly reviews and revises:

• the closing date, the possession date, and escrow arrangements if the seller will stay in the home after closing;
• the property tax proration percentage (the percentage is left blank in the contract and filled in by the parties);
• personal property conveyed with the home (appliances, light fixtures, window treatments, smart devices and so on);
• whether the buyer’s mortgage contingency, appraisal contingency and deadlines are reasonable;
• the scope of any “as-is” clause;
• whether the seller’s representations and warranties go beyond what the seller actually knows.

Negotiating after the inspection

The inspection clause of Multi-Board 8.0 generally gives the buyer 5 business days to complete inspections and limits the buyer to requesting that defects in “major components” be addressed; minor repairs, routine maintenance and cosmetic issues are not grounds for termination. If the parties have not reached agreement on the inspection issues within 10 business days after the date of acceptance, either party may terminate (based on what is actually checked and filled in on the contract). The seller usually has three ways to respond: make the repairs, give the buyer a price credit, or decline. The attorney will help you judge which requests are reasonable based on the report, the age of the home and market conditions, and will put the parties’ agreement into a written amendment so that disputes do not resurface before closing.

Clearing title: existing loans and liens

Under the Multi-Board contract, the seller is responsible for (and pays for) providing the buyer with a title commitment, and for a single-family home must also provide a plat of survey before closing. The title commitment lists the existing mortgages, liens and other encumbrances on the property. The seller’s attorney will:

• have the title company request a payoff amount from your lender, pay the loan off directly from the sale proceeds at closing, and obtain the release afterward;
• deal with unreleased mortgages, judgment liens, mechanics liens and other items shown on the commitment, communicating with creditors when necessary;
• check that the names of the titleholders match the signers: if someone changed their name after marriage, a co-owner has died, or title is held in a trust or LLC, the corresponding supporting documents are needed;
• confirm that there are no unpaid property taxes, association dues or municipal charges.

Title problems are easier to resolve the earlier they are found; see Closing and title.

Property taxes: prorated credit at closing

Illinois property taxes are paid in arrears: the taxes you pay this year are for the previous year. Cook County issues bills in two installments each year, and the first installment is estimated at 55% of the previous year’s total tax. This means that when you sell, part of the taxes usually belongs to the period you owned the home but has not yet been billed. At closing, the seller usually gives the buyer a credit, as the contract provides, equal to the most recent ascertainable full-year tax bill multiplied by the agreed percentage. The higher the percentage, the less the seller nets. Check the credit amount with your attorney and the title company; also take into account that exemptions you receive, such as the homeowner exemption, may not be available to the buyer.

Transfer taxes, MyDec filing and Chicago water certification

Transfer taxes are always calculated under current state, county and city rules, and the settlement statement controls the specific amounts; the contract may allocate them differently. The transfer declaration is filed online through the Illinois Department of Revenue’s MyDec system (which replaced the former paper filing), usually by the attorney or title company, with the buyer and seller confirming the information.

A property transfer in the City of Chicago also requires a Full Payment Certificate (FPC) from the city’s Department of Finance, showing that water and other utility charges have been paid or will not pass to the new owner. Without an FPC, you cannot obtain the City of Chicago transfer tax stamps, and the deed cannot be recorded. The FPC can be requested online; sometimes a meter reading or site inspection is required, so apply early.

Condo sellers: 22.1 resale documents

When selling a condominium unit, Section 22.1 of the Condominium Property Act (765 ILCS 605) requires the seller to provide the buyer (or make available for inspection on request) a set of documents, which the association must provide within 30 days after a written request. They mainly include:

• the declaration, bylaws and rules and regulations;
• a statement of any unpaid assessments and other charges for the unit;
• the association’s projected capital expenditures for the current fiscal year and the next two fiscal years;
• the status and amount of reserves for repair and replacement;
• the most recent financial statement;
• any pending lawsuits or judgments involving the association;
• the insurance coverage the association maintains for all unit owners;
• a statement on whether alterations to the unit comply with the condominium documents;
• the association’s principal office address or designated contact.

The Multi-Board 8.0 contract also requires the seller to request these documents within 10 business days after the date of acceptance. The association needs time to process the request, so we recommend starting when you list.

Closing and receiving payment

Closing usually takes place at the title company’s escrow office (the seller can also arrange to sign in advance and not attend). The documents the seller signs generally include the deed, the transfer declaration, the seller’s affidavits required by the title company, the settlement statement, FIRPTA-related certifications and so on. The title company deducts the loan payoffs, transfer taxes, commissions, the property tax credit and other charges from the sale proceeds and pays the balance to the seller. Before closing, the attorney checks the settlement statement line by line.

Protect your proceeds against wire fraud: scammers often pose as attorneys or title companies and send emails to “change the receiving account.” It is best to provide and confirm your receiving account information in person or through a known phone number, not just by replying to an email; if you receive any notice of a change, verify it by phone first.

What the attorney does at each stage

Common situations for Chinese-speaking sellers

Selling while you are abroad

A common approach is to sign a power of attorney appointing a relative or friend in the United States to sign the closing documents on your behalf. Keep a few points in mind: the title company usually requires the power of attorney to be reviewed in advance, so it is best to use a form the title company accepts and to identify the specific property; if it is signed outside the United States, it must be notarized and authenticated in the manner used there. For documents signed in mainland China, since China joined the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents (the Hague Apostille Convention) on November 7, 2023, the usual approach is to have the document notarized by a notary office in China and then obtain an apostille from China’s Ministry of Foreign Affairs or an authorized local foreign affairs office; authentication by the U.S. embassy or consulates in China is no longer needed. You can also book notarial services at a U.S. embassy or consulate in China. See Notary & apostille and Apostilles.

Foreign sellers and FIRPTA withholding

Under the Foreign Investment in Real Property Tax Act (FIRPTA, IRC 1445), if the seller is a foreign person under U.S. tax law, the buyer generally must withhold a percentage of the amount realized (generally 15%) and remit it to the IRS; if the buyer is purchasing the home as a residence and the price meets the requirements, a reduced rate or no withholding may apply. Withholding is not the final tax: the seller later files a tax return to settle up, and can also apply to the IRS in advance for reduced withholding (Form 8288-B). Green card holders and others who are residents for tax purposes can usually sign a non-foreign certification. Whether someone is a “foreign person” is determined under tax law and is not exactly the same as immigration status. See Foreign buyers and sellers and the tax section, and work with your accountant.

Capital gains and the home sale exclusion

When you sell your main home, you may be able to exclude part of the gain from tax if you qualify (IRC 121). In principle, if you owned the home and lived in it as your main home for 2 years during the 5 years before the sale, you can exclude up to $250,000 if single, or up to $500,000 for a married couple filing jointly. The calculation is more complicated if you have rented the home out, lived in China for long periods, or are a tax resident of another country. Our firm does not give individual tax advice; please confirm with your accountant. For the general principles, see the tax section.

Selling in a divorce or an inheritance

When jointly owned property is sold in a divorce, look at how the divorce judgment or agreement addresses the sale price, the division of proceeds and signing authority; see Divorce and property division. For inherited property, first confirm who has authority to sell (the estate representative, the trustee of a trust, or the heirs); probate may be required. For families with estates in both China and the United States, see Cross-border estate planning.

Seller preparation checklist

• Find the deed, title insurance policy and survey from when you bought the home
• List the lender and account number for every loan (including any HELOC)
• Complete the Residential Real Property Disclosure Report truthfully and give it to the buyer before the contract is signed
• Homes built before 1978: prepare the lead-based paint disclosure and pamphlet
• Condos: request the 22.1 documents from the association
• Chicago properties: apply early for the water Full Payment Certificate (FPC)
• If you are abroad: get the power of attorney notarized and authenticated early, and have the title company review it
• Foreign sellers: discuss FIRPTA withholding with your accountant and attorney early
• Verify receiving account information by phone; do not rely on email

Common misconceptions

• “Once the contract is signed, it’s final.” During attorney review either side can propose modifications, and if the parties cannot agree the contract may be terminated.
• “If I don’t mention it, there’s no problem.” Concealing known defects can lead to a lawsuit; truthful disclosure actually reduces disputes after closing.
• “The sale price minus the loan is what I take home.” Transfer taxes, commission, the property tax credit and closing costs also come out.
• “I have a green card, so FIRPTA doesn’t concern me.” What matters is your status under tax law, and you must sign the appropriate certification as required.
• “Any power of attorney form will do.” A power of attorney the title company won’t accept can delay the closing outright.

How we can help

• Represent sellers in all legal work from contract review to closing, communicating in English, Chinese or French;
• Resolve title issues: paying off existing loans, liens, and sales of property held in a trust or LLC;
• Arrange powers of attorney and remote signing for sellers abroad, and coordinate notarization and authentication;
• Condo sales: coordinate association documents and 22.1 disclosures;
• Where FIRPTA or capital gains are involved, work with your accountant.

Frequently asked questions

Official sources

• 765 ILCS 77, Residential Real Property Disclosure Act
• HUD: Lead-based paint disclosure rule
• Chicago Association of REALTORS: Multi-Board 8.0 contract
• City of Chicago Department of Finance: Real property transfer tax
• City of Chicago Department of Finance: Full Payment Certificates (FPC)
• Illinois Department of Revenue: Transfer declarations and MyDec
• IRS: FIRPTA withholding
• IRS: Exceptions from FIRPTA withholding
• IRS Topic 701: Sale of your home
• Ministry of Foreign Affairs of China: Apostille Convention enters into force for China

Related reading

• Buying a home in Chicago
• Closing and title
• Foreign buyers and sellers
• Apostilles

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.