What Should Be Included in a Residential Real Estate Purchase and Sale Agreement?

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For most people, buying or selling a home in Orland Park is the single largest financial transaction of their lives. The initial excitement of finding the perfect property or accepting a strong offer is often quickly followed by the reality of the paperwork: a dense, multi-page document called the “Multi-Board Residential Real Estate Contract 8.0.”

This contract is not just a formality; it is the legally binding blueprint for the entire transaction. Every word matters. It dictates the price, sets the deadlines, outlines the responsibilities of both buyer and seller, and provides the “safety hatches” if things go wrong. An overlooked clause or an ambiguous term can lead to costly disputes, a delayed closing, or even the collapse of the deal.

What Is the Most Important Clause in an Illinois Real Estate Contract?

While every section is important, the most critical provision in an Illinois real estate contract is the Attorney Review Clause.

In our area, most real estate contracts are signed before all the legal details have been ironed out. The attorney review clause provides a “timeout” period—typically five to ten business days—during which your attorney can review the contract in detail, propose modifications, and ensure it fully protects your interests.

During this period, your attorney will:

  • Identify and explain any unfavorable or high-risk terms.
  • Negotiate modifications (changes) to the contract language.
  • Ensure all necessary contingencies are included and properly worded.
  • Address any legal issues specific to your property or situation.
  • Approve the contract, disapprove it (which can terminate the deal), or propose modifications.

This clause is your single greatest protection. Signing a contract without an attorney review is an enormous risk. An attorney reviews the contract to identify potential pitfalls and ensure your rights are safeguarded.

What Are the Core Components of the Purchase Agreement?

A well-drafted contract must be specific, leaving no room for misunderstanding. It should clearly define the “who, what, where, and when” of the transaction.

  • Parties: The full legal names of the buyer(s) and seller(s).
  • Property Identification: This must be precise. It includes the common street address (e.g., in Orland Park, 60462), but more importantly, the legal description and the Property Index Number (PIN). The PIN is the unique tax identification number assigned by the county (either the Cook County Assessor or Will County Supervisor of Assessments).
  • Purchase Price: The specific dollar amount the buyer has agreed to pay the seller.
  • Earnest Money: This is the “good faith” deposit the buyer provides to show they are serious about purchasing the property. The contract must state:
    • The amount of the earnest money.
    • Who will hold it in a secure escrow account (often the seller’s real estate brokerage or a title company).
    • The conditions under which the earnest money is returned to the buyer if the deal fails.

What Are “Contingencies” and How Do They Protect Me?

Contingencies are the “safety hatches” of the contract. They are conditions that must be met for the transaction to move forward. If a contingency is not met, the buyer (and sometimes the seller) has the right to terminate the contract and, in the buyer’s case, have their earnest money returned.

Contingencies for Buyers

  • Inspection Contingency: This is arguably the most-used contingency. It gives the buyer the right to hire a professional home inspector to examine the property. If the inspection reveals significant material defects (e.g., issues with the foundation, roof, plumbing, or electrical systems), the buyer typically has several options, which your attorney will negotiate:
    • Terminate the contract and get their earnest money back.
    • Request the seller to make specific repairs.
    • Request a closing cost credit to cover the cost of repairs.
    • Accept the property “as-is” and proceed with the purchase.
  • Financing (or Mortgage) Contingency: This clause states that the purchase is “contingent on” the buyer’s ability to obtain a mortgage loan for a specific amount at or below a certain interest rate. If the buyer makes a good-faith effort but is denied the loan, this contingency allows them to exit the contract without penalty. This is essential for protecting the buyer from losing their earnest money if their financing falls through.

How Does the Contract Address the Property’s Condition?

Beyond the inspection, the contract includes several key provisions related to the home’s physical state.

  • Seller Disclosures: Illinois law requires sellers to be transparent about their property. Sellers must provide buyers with:
    • Illinois Residential Real Property Disclosure Report: This is a standardized form where the seller must disclose any known “material defects” in the property. A material defect is a problem that could significantly impact the home’s value or safety.
    • Radon Disclosure: Sellers must provide information about radon hazards and any known radon tests.
    • Lead-Based Paint Disclosure: For any home built before 1978, federal law requires the seller to disclose any known lead-based paint.
  • “As-Is” Sales: You will often see a property listed “as-is.” This means the seller does not intend to make any repairs. While this limits the seller’s liability, it does not relieve them of their legal duty to disclose known material defects. An “as-is” clause makes a thorough inspection even more critical for the buyer.

What Is the Difference Between Fixtures and Personal Property?

This is a very common source of disputes at closing. The contract must be crystal clear about what is included in the sale.

  • Fixtures: These are items permanently attached to the property and are legally considered part of the real estate. They stay with the house unless a contract provision excludes them. Examples include light fixtures, built-in shelving, furnaces, and landscaping.
  • Personal Property: These are the seller’s movable belongings. They are not included in the sale unless a contract provision includes them. Examples include furniture, rugs, and decorative items.

The gray area is where conflicts arise (e.g., smart home devices, wall-mounted TVs, custom window treatments). A good contract will have a detailed section that lists exactly what fixtures are included and what items of personal property (like appliances) are being transferred to the buyer.

How Does the Contract Ensure I Am Getting “Clear Title”?

You are not just buying a house; you are buying the legal, undisputed right to own that house. This is called “clear title.” The contract outlines how the seller will prove they are delivering this to you.

  • Title Commitment: After the contract is signed, a title search is performed on the property’s history, usually by checking records at the Cook County Recorder of Deeds or the Will County Recorder of Deeds. This search looks for any “clouds” on the title, such as:
    • Liens: Legal claims for money, like mechanics liens (from unpaid contractors), tax liens, or judgment liens.
    • Encumbrances: Restrictions on the property’s use, such as easements (giving someone else the right to use part of your property).
    • Ownership Disputes: Any other person claiming a right to the property.
      The title company then issues a “Title Commitment,” which is a promise to issue title insurance once any of these problems are resolved.
  • Title Insurance: The contract will specify that the seller must provide the buyer with an Owner’s Title Insurance Policy. This policy protects you, the buyer, from any financial losses if a title problem is discovered after you have already closed on the home. (Your lender will also require a separate Lender’s Title Insurance Policy, which only protects the bank.)

What Happens at the “Closing”?

The contract specifies a Closing Date. This is the day the “closing” (or “settlement”) takes place, where ownership officially transfers. The contract dictates all the financial details of this day.

  • Prorations: The contract details how expenses will be “prorated,” or split, between the buyer and seller. In Illinois, the most significant proration is for property taxes, which are paid in arrears. The seller must give the buyer a credit for the portion of the year they owned the home, even though the tax bill won’t be due until the following year.
  • Settlement Statement (Closing Disclosure): This is the final spreadsheet of the transaction. It itemizes every single cost, credit, and fee for both the buyer and seller, including mortgage payoffs, real estate commissions, attorney fees, and transfer taxes (state, county, and municipal).
  • Deeds and Documents: At the closing, the seller signs the Deed, which is the legal document that formally transfers ownership. The buyer signs the mortgage documents. The deed and mortgage
    are then recorded with the county.

What If Someone Breaches the Contract?

A “breach” is when one party fails to fulfill their legal obligations under the contract. The agreement itself will specify the remedies (solutions) available.

  • If the Buyer Breaches: Typically, if the buyer backs out for a reason not covered by a contingency (e.g., “cold feet”), the seller’s primary remedy is to keep the buyer’s earnest money as damages.
  • If the Seller Breaches: If the seller backs out, the buyer has more powerful options. The buyer can, of course, have their earnest money returned, but they may also be able to sue for “specific performance,” which is a court order forcing the seller to complete the sale as agreed.

Protecting Your Orland Park Real Estate Transaction

A residential real estate contract is a complex and high-stakes legal document. Attempting to navigate it without legal representation is a significant risk, as an overlooked clause can lead to costly disputes or the collapse of the deal.

At Pucher & Ranucci, our attorneys have guided home buyers and sellers in Orland Park, Joliet, and across Cook and Will Counties for nearly two decades. We are committed to empowering you with clear information and sound legal advice, ensuring you understand every line you are signing.

Furthermore, our attorneys are also licensed title agents. This dual role provides a significant benefit, allowing us to provide both comprehensive legal guidance and detailed knowledge of title matters. We can handle the title search, examination, and resolution of title issues in-house, streamlining the entire process.

If you are buying or selling a home in the Orland Park or greater Chicagoland area, contact us today for a consultation to learn how we can help protect your investment.

Frequently Asked Questions (FAQs)

What is the difference between a real estate attorney and a title agent?

A real estate attorney provides legal advice, reviews and negotiates the contract, resolves disputes, and represents your legal interests throughout the transaction. A title agent conducts the title search and issues the title insurance policy. The attorneys at Pucher & Ranucci are both, which allows us to manage both the legal and title aspects of your sale or purchase seamlessly.

 

Is earnest money refundable if I change my mind?

It depends. If you back out for a reason covered by a contingency (e.g., a bad inspection or inability to get financing), then yes, your earnest money is typically refundable. If you back out for a reason not covered by a contingency (e.g., you just decided you don’t like the house anymore), you will likely forfeit your earnest money to the seller.

 

What’s the difference between a fixture and personal property?

A fixture is permanently attached to the property (like a chandelier or a built-in bookcase) and is included in the sale unless the contract explicitly excludes it. Personal property is movable (like a sofa or a lamp) and is not included unless the contract explicitly includes it. Appliances like refrigerators and washers/dryers are a gray area and must be specified in the contract.

 

What happens if the home appraises for less than the purchase price?

If you have an appraisal contingency, you have options. You can terminate the contract, renegotiate a lower price with the seller, or choose to pay the difference in cash. Without this contingency, you may be legally obligated to proceed with the purchase or risk losing your earnest money.

 

Do I still need a lawyer if I am buying a home “as-is”?

Yes, and it is arguably even more important. An attorney will ensure the “as-is” clause is drafted correctly and, most importantly, will make sure you still have a strong inspection contingency. This allows you to discover the full extent of the property’s condition and still back out if the problems are too large, even if the seller won’t pay for repairs.

 

How are property taxes handled in Cook and Will Counties?

In Illinois, property taxes are paid in arrears (meaning you pay 2024’s taxes in the year 2025). The contract will include a “proration” clause where the seller gives the buyer a credit at closing for the days they owned the home during that tax year. Your attorney will calculate this credit to ensure you are not paying the seller’s portion of the taxes.

 

Can I back out of the contract during the attorney review period?

Yes. During the attorney review period, your attorney can “disapprove” the contract for almost any reason, which effectively terminates the agreement and allows you to have your earnest money returned. This is your main window of opportunity to exit the deal if you have second thoughts. The one exception is that you cannot back out of the contract because of the purchase price.

 

Is the seller required to fix problems found during the inspection?

No. The seller is not required to fix anything. The inspection contingency simply gives you the right to request repairs or a credit. If you and the seller cannot come to an agreement on inspection issues, your remedy is to terminate the contract and walk away.

What Are Your Legal Obligations as a Landlord in Orland Park, IL?

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Owning rental property in Orland Park can be a sound investment strategy. You provide a home for a family or individual, and in return, you build equity and generate income. However, many landlords operate under a common misconception: they treat it like a passive hobby.

In Orland Park, being a landlord is running a business—a business that is heavily regulated by a complex mix of specific Village ordinances, Cook County laws, and Illinois state statutes. At Pucher & Ranucci, we have seen how a simple mistake, such as improperly handling a security deposit or failing to register with the Village, can have severe financial consequences. Understanding your full range of legal obligations is the only way to protect your investment.

The First Hurdle: Orland Park Rental Registration

Before you can even think about finding a tenant, your first obligation is to the Village of Orland Park itself. Orland Park requires landlords to obtain a rental license for their properties, and these licenses are tightly regulated.

The most significant rule is the 10% cap: Rental licenses are capped at 10% of the existing dwelling units within any single U.S. Census Block. This means you are not guaranteed a license just because you own property.

Before purchasing an investment property or converting a home to a rental, you must follow the Village’s process:

  1. Consult the Map: The Village of Orland Park provides an official Rental License Map.
  2. Verify Availability: You must input the property address and click on its census block to see if there are any “Available Licenses.”
  3. Apply (If Available): If a license is available, you must submit a Rental License Application, which can be found on the Village’s website.
  4. Submit Survey: You must also submit a current Plat of Survey with your application.

There are other strict local rules all Orland Park landlords must know:

  • Agent Location: The owner or designated agent must be located within 15 miles of the Village’s corporate limits to handle building and tenant emergencies.
  • Agent Unit Cap: A designated agent cannot be responsible for more than 8 dwelling units (unless it’s part of a large, approved rental-only development).
  • Showings: An owner or agent must be physically present any time an unleased unit is accessed by potential lessees.
  • Non-Transferable: Rental licenses are not transferable to a new owner.
  • Penalties: If you are found in violation of these regulations, you can be prohibited from applying for any rental license in the Village for one year, in addition to fines.
  • Exemptions: Certain properties are exempt from the 10% cap (like large, pre-approved rental developments or units owned by active military members), but they are still subject to the overall licensing requirement.

The Cook County Layer: The CCRTLO

Once you’ve cleared the Village’s registration hurdles, you must navigate the next layer: county law. Orland Park is in Cook County, which means most landlords are subject to the Cook County Residential Tenant and Landlord Ordinance (CCRTLO).

This is a critical, and often overlooked, layer of law. The CCRTLO provides a host of tenant protections that are in addition to and often stricter than Illinois state law. Assuming this ordinance doesn’t apply to you is one of the most expensive mistakes an Orland Park landlord can make. It applies to almost all rental units, with very few exceptions (like owner-occupied buildings with six units or less).

What Are My Obligations Before a Tenant Moves In?

Your legal duties are in full force long before you hand over the keys.

  1. Tenant Screening and Applications

Your primary obligation during screening is non-discrimination.

  • Federal Fair Housing Act: Prohibits refusing to rent based on race, color, religion, national origin, sex, disability, or familial status.
  • CCRTLO: Adds even more protected classes, including source of income, sexual orientation, and gender identity.

Your screening criteria (like credit score or income-to-rent ratio) must be objective and applied equally to every applicant.

  1. The Lease Agreement

A strong, written lease is your most important tool. This contract cannot include “unconscionable” clauses that violate Illinois law, such as:

  • A waiver of tenant rights (like the right to a jury trial).
  • A clause that lets you avoid liability for negligence.
  • Any clause that allows you to change the locks or remove a tenant’s property without a court order (this is an illegal “self-help eviction”).
  1. Required Disclosures

Before a tenant signs, you must provide several key disclosures:

  • Lead-Based Paint: For any building from before 1978, you must provide an EPA-approved pamphlet.
  • Radon Hazard: You must provide a pamphlet on radon dangers.
  • CCRTLO Summary: If your property is covered, you must provide the tenant with a copy of the CCRTLO summary along with the lease.

How Must I Handle a Tenant’s Security Deposit in Orland Park?

This is the single most common and costly area of dispute. Illinois law is extremely strict, but for Orland Park landlords, the CCRTLO rules are even tougher and apply to all units.

You must do the following:

  • Give the tenant a written receipt for the deposit.
  • Identify the bank where the deposit will be held.
  • Hold the deposit in a separate, interest-bearing escrow account.
  • Never commingle the deposit with your personal funds.

When a tenant moves out, you can only deduct for actual damage, not for “normal wear and tear.“

  • Normal Wear and Tear: Faded paint, minor scuffs, worn-out carpet from walking. These are your costs of doing business.
  • Damage: Large holes in the wall, broken windows, stained or burned carpets, excessive filth. These are deductible.

If you make deductions, state law (on properties with 5+ units) requires you to send a detailed, itemized list of repair costs within 30 days. You must return the full deposit (minus valid deductions) within 45 days. Failure to follow these rules perfectly can result in you owing the tenant double the security deposit plus their court costs and attorney’s fees.

What Are My Duties During the Tenancy?

Your responsibilities do not end once the tenant moves in. You have an ongoing duty to provide a safe and livable home.

The “Implied Warranty of Habitability”

Every Illinois lease has an “implied warranty of habitability,” meaning the unit is fit for human occupation. You are legally responsible for:

  • Functioning plumbing and hot/cold water
  • A working heating system
  • A structurally sound building (roof, walls, foundation)
  • Functioning electrical systems
  • Pest control (for building-wide infestations)

Responding to Repair Requests

When a tenant notifies you of a habitability issue (e.g., a broken furnace), you must make the repair in a “reasonable” amount of time. Under state law and the CCRTLO, tenants may have the right to “repair and deduct”—paying for the repair themselves and deducting the cost from their rent—if you fail to act.

When Can I Enter a Tenant’s Apartment?

You cannot enter a tenant’s unit whenever you please.

  • Illinois Law: Requires “reasonable” notice, generally understood as 24 hours.
  • CCRTLO: The Cook County ordinance is explicit: you must provide at least two days’ notice (48 hours) for non-emergency entry.

You can, of course, enter immediately for a true emergency like a burst pipe or a fire.

What Happens When a Tenant Violates the Lease?

This is where strict legal procedure is your only option. You cannot take matters into your own hands.

“Self-Help Evictions” Are Illegal

Any attempt to remove a tenant without a court order is an illegal “self-help eviction.” This includes:

  • Changing the locks
  • Shutting off the heat or electricity
  • Removing the tenant’s personal property
  • Removing the front door

Performing a self-help eviction will get you sued, and you will lose.

The Correct Legal Process for Eviction in Cook County

The only legal way to evict a tenant is by filing a Forcible Entry and Detainer lawsuit. The process begins with a formal, written Notice.\

  • 5-Day Notice (Non-Payment of Rent): Gives the tenant five days to pay the full amount owed. If they pay, you must accept it.
  • 10-Day Notice (Lease Violation): Gives the tenant ten days to “cure” (fix) the violation (e.g., remove an unauthorized pet).
  • 30-Day Notice (Terminating a Month-to-Month Tenancy): Used to end a month-to-month lease.

Be aware: The CCRTLO has different, often longer, notice periods for non-renewal of a lease. If the tenant does not pay or move out after the notice period, you must file an eviction suit. For Orland Park properties, this case will be heard at the Fifth Municipal District courthouse in Bridgeview. Only a Cook County Sheriff, acting on a judge’s order, can legally remove a tenant from the property.

Experienced Guidance for Orland Park Landlords

Being a landlord in Orland Park is a complex legal undertaking. You must simultaneously comply with strict Village registration laws, the detailed Cook County CCRTLO, and foundational Illinois state statutes. A simple procedural error can cost you thousands.

At Pucher & Ranucci, our attorneys have spent nearly two decades guiding landlords in Orland Park, Tinley Park, and the surrounding Cook and Will County communities. We understand the specific challenges you face, from the local registration rules to the details of the CCRTLO and the procedures at the Bridgeview courthouse.

If you are facing a difficult tenant situation or want to ensure your leases and procedures are compliant with all layers of the law, contact us today for a consultation.

Frequently Asked Questions for Orland Park Landlords

Can I charge a late fee for rent in Orland Park?

Yes, but the CCRTLO limits the amount. The fee must be “reasonable” and is capped at $10 for the first $500 of rent and 5% on any amount above that. A single $100 flat fee on a $1,200 rent, for example, would be illegal.

My tenant’s lease is up. How much notice do I need for non-renewal?

Under the CCRTLO, this depends on how long the tenant has lived there.

  • Six months to three years: You must give 60 days’ written notice.
  • Over three years: You must give 120 days’ written notice.

I served a 5-Day Notice, and the tenant offered me partial payment. Should I take it?

Be very careful. In Illinois, accepting any partial payment after a 5-Day Notice has expired can invalidate the notice and “reinstate” a lease, forcing you to start the entire eviction process over.

My tenant broke their lease and moved out. What do I do?

You have a legal duty to “mitigate damages.” You cannot just let the unit sit empty and sue the old tenant for the remaining rent. You must make a reasonable effort to re-rent the apartment, such as by actively advertising and showing it.

Can I ban smoking in my Orland Park rental property?

Yes. You are legally allowed to make your property 100% smoke-free (including tobacco and cannabis). This must be clearly stated as a material term of the lease agreement.

Why Do I Need a Lawyer When Buying a Home?

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Buying a home is an exciting time, but it can also be a daunting experience as it is usually the biggest financial decision of your life. So, it is important to know your rights and obligations, financial and otherwise, when signing a real estate contract. There are many people on your team during a real estate transaction with crucial responsibilities (e.g., real estate brokers, lenders, inspectors, etc.), but there are certain components to the transaction that only a real estate lawyer can handle for you. For example, although most real estate transactions in Illinois use some version of a form contract, not all versions include provisions that are relevant, appropriate, or even protective of your interests for that particular piece of property. And, sometimes, the form contracts are missing key provisions that could save you a lot of time, money, and headaches. A real estate lawyer will help you understand your rights and obligations under your specific contract and will attempt to negotiate more favorable terms for you in the event the contract is not in your best interest.

A real estate lawyer will also help you review your inspection report and request any necessary repairs or repair credits. He or she will review the seller’s title insurance commitment to ensure you are getting clear title to the property with no outstanding mortgages, liens, or judgments. If you are buying a condominium or a home in a homeowners association, a lawyer will help you review the mounds of documents including declarations, bylaws, financials, meeting minutes, rules and regulations, and the like to help you decide whether this association is where you want to live. A lawyer will also review all of the seller-produced closing documents including the deed, bill of sale, affidavit of title, survey, and final closing figures since it may be incredibly difficult and time-consuming to try to negotiate or change anything after the closing has been completed. And finally, a real estate lawyer will explain to you the stack of loan documents that you sign at the closing table outlining all of your rights and obligations in borrowing such a large sum of money.

Sometimes the unique and nuanced circumstances of your transaction may require a real estate lawyer’s oversight to ensure you are purchasing a home without major future complications. If you are buying a new construction, in addition to providing all of the above services, a real estate lawyer can be crucial in your understanding of your rights after the closing during the limited warranty period. Further, if the new home is on land that has been recently subdivided, a new association has been created, or is a unit in a newly constructed condominium building, it is important that a lawyer review all of the association, tax, and title documents to ensure the developer has completed everything correctly since this will be your and your association’s problem after the developer hands over the association.

Real estate lawyers are experienced in understanding how to resolve problems and can often help you avoid pitfalls before they start. If you are thinking about purchasing a home, consider contacting the real estate lawyers at Pucher & Ranucci, P.C. to explain not only the closing process, but also to explain the financial obligations associated with the home you are looking to purchase.