Buyer’s Initials _______ Seller’s Initials _______
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ILLINOIS RESIDENTIAL PURCHASE AGREEMENT
I. The Parties. This Real Estate Purchase Agreement (“Agreement”) made on
____________________, 20___ (“Effective Date”) between:
____________________ (“Buyer”) with a mailing address of ____________________,
City of ____________________, State of ____________________ who agrees to buy
AND
____________________ (“Seller”) with a mailing address of ____________________,
City of ____________________, State of ____________________, who agrees to sell
and convey real and personal property as described in Sections II & III. Buyer and Seller
shall be collectively known as the “Parties.”
II. Legal Description. The real property is a: (check one)
- Single-Family Home
- Condominium
- Planned Unit Development (PUD)
- Duplex
- Triplex
- Fourplex
- Other: _______________________________________________________________
Street Address: ___________________________________________________________
Tax Parcel Information (i.e., “Parcel ID” or “Tax Map & Lot”): _______________________
Other Description: _________________________________________________________
III. Personal Property. In addition to the real property described in Section II, the Seller
shall include the following personal property: ___________________________________
_______________________________________________________________________
The real property and personal property shall be collectively known as the “Property”.
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IV. Earnest Money. After acceptance by all Parties, the Buyer agrees to make a payment
in the amount of $____________________ as consideration by ____________________,
20___ at ____:____ AM PM (“Earnest Money”). The Earnest Money shall be applied
to the Purchase Price at Closing and subject to the Buyer’s ability to perform under the
terms of this Agreement. Any Earnest Money accepted is is not required to be
placed in a separate trust or escrow account in accordance with State law.
V. Purchase Price and Terms. The Buyer agrees to purchase the Property by payment of
$____________________ (____________________ Dollars) as follows: (check one)
- All Cash Offer. No loan or financing of any kind is required in order to purchase the
Property. Buyer shall provide Seller written third (3
rd
) party documentation verifying
sufficient funds to close no later than ____________________, 20___ at ____:____ AM
PM. Seller shall have three (3) business days after the receipt of such documentation to
notify Buyer, in writing, if the verification of funds is not acceptable. If Buyer fails to provide
such documentation, or if Seller finds such verification of funds is not acceptable, Seller
may terminate this Agreement. Failure of Seller to provide Buyer written notice of objection
to such verification shall be considered acceptance of verification of funds.
- Bank Financing. The Buyer’s ability to purchase the Property is contingent upon the
Buyer’s ability to obtain financing under the following conditions: (check one)
- Conventional Loan
- FHA Loan (Attach Required Addendums)
- VA Loan (Attach Required Addendums)
- Other: __________________________________________________________
a.) In addition, Buyer agrees, within a reasonable time, to make a good faith loan
application with a credible financial institution;
b.) If Buyer does not reveal a fact of contingency to the lender and this purchase
does not record because of such nondisclosure after initial application, the
Buyer shall be in default;
c.) On or before ____________________, 20___, the Buyer will provide the Seller
a letter from a credible financial institution verifying a satisfactory credit report,
acceptable income, source of down payment, availability of funds to close, and
that the loan approval is is not contingent on the lease, sale, or recording
of another property;
d.) In the event the Buyer fails to produce the aforementioned letter or other
acceptable verification by the date above in Section V(c), this Agreement may
be terminated at the election of the Seller with written notice provided to the
Buyer within ____ days from the date in Section V(c);
e.) Buyer must obtain Seller’s approval, in writing, to any change to the letter
described in Section V(c) regarding the financial institution, type of financing, or
allocation of closing costs; and
f.) Buyer agrees to pay all fees and satisfy all conditions, in a timely manner,
required by the financial institution for processing of the loan application. Buyer
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agrees the interest rate offered by lender or the availability of any financing
program is not a contingency of this Agreement, so long as Buyer qualifies for
the financing herein agreed. Availability of any financing program may change at
any time. Any licensed real estate agent hired by either party is not responsible
for representations or guarantees as to the availability of any loans, project
and/or property approvals or interest rates.
- Seller Financing. Seller agrees to provide financing to the Buyer under the following
terms and conditions:
a.) Loan Amount: $____________________
b.) Down Payment: $____________________
c.) Interest Rate (per annum): ____%
d.) Term: ____ Months Years
e.) Documents: The Buyer shall be required to produce documentation, as
required by the Seller, verifying the Buyer’s ability to purchase according to the
Purchase Price and the terms of the Seller Financing. Therefore, such Seller
Financing is contingent upon the Seller’s approval of the requested
documentation to be provided on or before ____________________, 20___.
The Seller shall have until ____________________, 20___ to approve the
Buyer's documentation. In the event Buyer fails to obtain Seller’s approval, this
Agreement shall be terminated with the Buyer’s Earnest Money being returned
within five (5) business days.
VI. Sale of Another Property. Buyer’s performance under this Agreement: (check one)
- Shall not be contingent upon selling another property.
- Shall be contingent upon selling another property with a mailing address of
___________________, City of ____________________, State of
____________________ within ____ days from the Effective Date.
VII. Closing Costs. The costs attributed to the Closing of the Property shall be the
responsibility of Buyer Seller Both Parties. The fees and costs related to the
Closing shall include but not be limited to a title search (including the abstract and any
owner’s title policy), preparation of the deed, transfer taxes, recording fees, and any other
costs by the title company that is in standard procedure with conducting the sale of a
property.
VIII. Funds at Closing. Buyer and Seller agree that before the recording can take place,
funds provided shall be in one (1) of the following forms: cash, interbank electronic
transfer, money order, certified check or cashier’s check drawn on a financial institution
located in the State, or any above combination that permits the Seller to convert the
deposit to cash no later than the next business day.
IX. Closing. This transaction shall be closed on ______________________, 20____ at
____:____ AM PM or earlier at the office of a title company to be agreed upon by
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the Parties (“Closing”). Any extension of the Closing must be agreed upon, in writing, by
Buyer and Seller. Real estate taxes, rents, dues, fees, and expenses relating to the
Property for the year in which the sale is closed shall be prorated as of the Closing.
Taxes due for prior years shall be paid by Seller.
X. Survey. Buyer may obtain a survey of the Property before the Closing to assure that
there are no defects, encroachments, overlaps, boundary line or acreage disputes, or
other such matters, that would be disclosed by a survey ("Survey Problems"). The cost of
the survey shall be paid by the Buyer. Not later than ____ business days prior to the
Closing, Buyer shall notify Seller of any Survey Problems which shall be deemed to be a
defect in the title to the Property. Seller shall be required to remedy such defects within
____ business days and prior to the Closing.
If Seller does not or cannot remedy any such defect(s), Buyer shall have the option of
canceling this Agreement, in which case the Earnest Money shall be returned to Buyer.
XI. Mineral Rights. It is agreed and understood that all rights under the soil, including but
not limited to water, gas, oil, and mineral rights shall be transferred by the Seller to the
Buyer at Closing.
XII. Title. Seller shall convey title to the property by warranty deed or equivalent. The
Property may be subject to restrictions contained on the plat, deed, covenants,
conditions, and restrictions, or other documents noted in a Title Search Report. Upon
execution of this Agreement by the Parties, Seller will, at the shared expense of both
Buyer and Seller, order a Title Search Report and have delivered to the Buyer.
Upon receipt of the Title Search Report, the Buyer shall have ____ business days to
notify the Seller, in writing, of any matters disclosed in the report which are unacceptable
to Buyer. Buyer’s failure to timely object to the report shall constitute acceptance of the
Title Search Report.
If any objections are made by Buyer regarding the Title Search Report, mortgage loan
inspection, or other information that discloses a material defect, the Seller shall have
____ business days from the date the objections were received to correct said matters. If
Seller does not remedy any defect discovered by the Title Search Report, Buyer shall
have the option of canceling this Agreement, in which case the Earnest Money shall be
returned to Buyer.
After Closing, Buyer shall receive an owner’s standard form policy of title insurance
insuring marketable title in the Property to Buyer in the amount of the Purchase Price, free
and clear of the objections and all other title exceptions agreed to be removed as part of
this transaction.
XIII. Property Condition. Seller agrees to maintain the Property in its current condition,
subject to ordinary wear and tear, from the time this Agreement comes into effect until the
Closing. Buyer recognizes that the Seller, along with any licensed real estate agent(s)
involved in this transaction, make no claims as to the validity of any property disclosure
information. Buyer is required to perform their own inspections, tests, and investigations to
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verify any information provided by the Seller. Afterward, the Buyer shall submit copies of
all tests and reports to the Seller at no cost.
Therefore, Buyer shall hold the right to hire licensed contractors, or other qualified
professionals, to further inspect and investigate the Property until
______________________, 20____ at ____:____ AM PM.
After all inspections are completed, Buyer shall have until ______________________,
20____ at ____:____ AM PM to present any new property disclosures to the Seller
in writing. The Buyer and Seller shall have ____ business days to reach an agreement
over any new property disclosures found by the Buyer. If the Parties cannot come to an
agreement, this Agreement shall be terminated with the Earnest Money being returned to
the Buyer.
If the Buyer fails to have the Property inspected or does not provide the Seller with
written notice of the new disclosures on the Property, in accordance with this Agreement,
Buyer hereby accepts the Property in its current condition and as described in any
disclosure forms presented by the Seller.
In the event improvements on the Property are destroyed, compromised, or materially
damaged prior to Closing, the Agreement may be terminated at Buyer’s option.
XIV. Seller’s Indemnification. Except as otherwise stated in this Agreement, after
recording, the Buyer shall accept the Property AS IS, WHERE IS, with all defects, latent
or otherwise. Neither Seller nor their licensed real estate agent(s) or any other agent(s)
of the Seller, shall be bound to any representation or warranty of any kind relating in any
way to the Property or its condition, quality or quantity, except as specifically set forth in
this Agreement or any property disclosure, which contains representations of the Seller
only, and which is based upon the best of the Seller’s personal knowledge.
XV. Appraisal. Buyer’s performance under this Agreement: (check one)
- Shall not be contingent upon the appraisal of the Property being equal to or greater
than the agreed upon Purchase Price.
- Shall be contingent upon the appraisal of the Property being equal to or greater than
the agreed upon Purchase Price. If the Property does not appraise to at least the amount
of the Purchase Price, or if the appraisal discovers lender-required repairs, the Parties
shall have ____ business days to re-negotiate this Agreement (“Negotiation Period”). In
such event the Parties cannot come to an agreement during the Negotiation Period, this
Agreement shall terminate with the Earnest Money being returned to the Buyer.
XVI. Required Documents. Prior to the Closing, the Parties agree to authorize all
necessary documents, in good faith, in order to record the transaction under the conditions
required by the recorder, title company, lender, or any other public or private entity.
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XVII. Termination. In the event this Agreement is terminated, as provided in this
Agreement, absent of default, any Earnest Money shall be returned to the Buyer, in-full,
within ____ business days with all parties being relieved of their obligations as set forth
herein.
XVIII. Sex Offenders. Section 2250 of Title 18, United States Code, makes it a federal
offense for sex offenders required to register pursuant to the Sex Offender Registration
and Notification Act (SORNA), to knowingly fail to register or update a registration as
required. State convicted sex offenders may also be prosecuted under this statute if the
sex offender knowingly fails to register or update a registration as required, and engages
in interstate travel, foreign travel, or enters, leaves, or resides on an Indian reservation.
A sex offender who fails to properly register may face fines and up to ten (10) years in
prison. Furthermore, if a sex offender knowingly fails to update or register as required and
commits a violent federal crime, he or she may face up to thirty (30) years in prison under
this statute. The Buyer may seek more information online by visiting
https://www.nsopw.gov/.
XIX. Time. Time is of the essence. All understandings between the Parties are
incorporated in this Agreement. Its terms are intended by the Parties as a final, complete
and exclusive expression of their Agreement with respect to its subject matter and they
may not be contradicted by evidence of any prior agreement or contemporaneous oral
agreement.
XX. Buyer’s Default. Seller’s remedies shall be limited to liquidated damages in the
amount of the Earnest Money set forth in Section IV. It is agreed that such payments and
things of value are liquidated damages and are Seller’s sole and only remedy for Buyer’s
failure to perform the obligations of this Agreement. The Parties agree that Seller’s actual
damages in the event of Buyer’s default would be difficult to measure, and the amount of
the liquidated damages herein provided for is a reasonable estimate of such damages.
XXI. Seller’s Default. Buyer may elect to treat this Agreement as cancelled, in which case
all Earnest Money paid by Buyer hereunder shall be returned and Buyer may recover such
damages as may be proper, or Buyer may elect to treat this Agreement as being in full
force and effect and Buyer shall have the right to specific performance or damages, or
both.
XXII. Earnest Money Dispute. Notwithstanding any termination of this Agreement, the
Parties agree that in the event of any controversy regarding the release of the Earnest
Money that the matter shall be submitted to mediation as provided in Section
XXIII.
XXIII. Dispute Resolution. Buyer and Seller agree to mediate any dispute or claim
arising out of this Agreement, or in any resulting transaction, before resorting to
arbitration or court action.
a.) Mediation. If a dispute arises, between or among the Parties, and it is not
resolved prior to or after recording, the Parties shall first proceed in good faith
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to submit the matter to mediation. Costs related to mediation shall be mutually
shared between or among the Parties. Unless otherwise agreed in mediation,
the Parties retain their rights to proceed to arbitration or litigation.
b.) Arbitration. The Parties agree that any dispute or claim in law or equity arising
between them out of this Agreement or any resulting transaction, which is not
settled through mediation, shall be decided by neutral, binding arbitration. The
arbitrator is required to be a retired judge or justice, or an attorney with at least
five (5) years of residential real estate law experience unless the Parties
mutually agree to a different arbitrator. Under arbitration, the Parties shall have
the right to discovery in accordance with Illinois law. Judgment upon the award
of the arbitrator(s) may be entered into any court having jurisdiction.
Enforcement of this Agreement to arbitrate shall be governed by the Federal
Arbitration Act.
c.) Exclusions. The following matters shall be excluded from the mediation and
arbitration: (i) a judicial or non-judicial foreclosure or other action or proceeding
to enforce a deed, mortgage or installment land sale contract as defined in
accordance with Illinois law; (ii) an unlawful detainer action, forcible entry
detainer, eviction action, or equivalent; (iii) the filing or enforcement of a
mechanic’s lien; and (iv) any matter that is within the jurisdiction of a probate,
small claims or bankruptcy court. The filing of a court action to enable the
recording of a notice of pending action, for order of attachment, receivership,
injunction, or other provisional remedies, shall not constitute a waiver or
violation of the mediation and arbitration provisions of this Section.
XXIV. Governing Law. This Agreement shall be interpreted in accordance with the laws
in the State of Illinois.
XXV. Terms and Conditions of Offer. This is an offer to purchase the Property in
accordance with the above stated terms and conditions of this Agreement. If at least one,
but not all, of the Parties initial such pages, a counter offer is required until an agreement
is reached. Seller has the right to continue to offer the Property for sale and to accept
any other offer at any time prior to notification of acceptance. If this offer is accepted and
Buyer subsequently defaults, Buyer may be responsible for payment of licensed real
estate agent(s) compensation. This Agreement and any supplement, addendum or
modification, including any copy, may be signed in two or more counterparts, all of which
shall constitute one and the same writing.
XXVI. Binding Effect. This Agreement shall be for the benefit of, and be binding upon,
the Parties, their heirs, successors, legal representatives, and assigns, which therefore,
constitutes the entire agreement between the Parties. No modification of this Agreement
shall be binding unless signed by both Buyer and Seller.
XXVII. Severability. In the event any provision or part of this Agreement is found to be
invalid or unenforceable, only that particular provision or part so found, and not the entire
Agreement, will be inoperative.
XXVIII. Offer Expiration. This offer to purchase the Property as outlined in this
Agreement shall be deemed revoked and the Earnest Money shall be returned unless
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this Agreement is signed by Seller and a copy of this Agreement is personally given to
the Buyer by ______________________, 20____ at ____:____ AM PM.
XXIX. Acceptance. Seller warrants that Seller is the owner of the Property or has the
authority to execute this Agreement. Therefore, by the Seller’s authorization below,
he/she/they accepts the above offer and agrees to sell the Property on the above terms
and conditions and agrees to the agency relationships in accordance with any
agreement(s) made with licensed real estate agent(s). Seller has read and
acknowledges receipt of a copy of this Agreement and authorizes any licensed real
estate agent(s) to deliver a signed copy to the Buyer.
Delivery may be in any of the following: (i) hand delivery; (ii) email under the condition
that the party transmitting the email receives electronic confirmation that the email was
received to the intended recipient; and (iii) by facsimile to the other party or the other
party’s licensee, but only if the transmitting fax machine prints a confirmation that the
transmission was successful.
XXX. Licensed Real Estate Agent(s). If Buyer or Seller have hired the services of
licensed real estate agent(s) to perform representation on their behalf, he/she/they shall
be entitled to payment for their services as outlined in their separate written agreement.
XXXI. Disclosures. It is acknowledged by the Parties that: (check one)
- There are no attached addendums or disclosures to this Agreement.
- The following addendums or disclosures are attached to this Agreement:
- Lead-Based Paint Disclosure Form
- _________________________________________________________________
- _________________________________________________________________
- _________________________________________________________________
XXXII. Additional Terms and Conditions. _____________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
XXXIII. Entire Agreement. This Agreement together with any attached addendums or
disclosures shall supersede any and all other prior understandings and agreements,
either oral or in writing, between the parties with respect to the subject matter hereof and
shall constitute the sole and only agreements between the parties with respect to the
said Property. All prior negotiations and agreements between the parties with respect to
the Property hereof are merged into this Agreement. Each party to this Agreement
acknowledges that no representations, inducements, promises, or agreements, orally or
otherwise, have been made by any party or by anyone acting on behalf of any party,
which are not embodied in this Agreement and that any agreement, statement or
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promise that is not contained in this Agreement shall not be valid or binding or of any
force or effect.
XXXIV. Signature
Date: ____________________ _________________________________
Seller’s Signature
_________________________________
Print Name
Date: ____________________ _________________________________
Seller’s Signature
_________________________________
Print Name
Date: ____________________ _________________________________
Buyer’s Signature
_________________________________
Print Name
Date: ____________________ _________________________________
Buyer’s Signature
_________________________________
Print Name
Date: ____________________ _________________________________
Agent’s Signature
_________________________________
Print Name
Date: ____________________ _________________________________
Agent’s Signature
_________________________________
Print Name
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