There is a lot of paperwork, but it helps a lot to be prepared for what you are in for!
It can seem tedious, but it is important to understand what the paperwork is all about!
The following is a list of many of the items to expect.
Paperwork:
- Seller disclosures concerning condition of the property
Sellers are required to fill out a form that identifies any problems with the condition of the house, especially things that may not be obvious at first glance. Examples can include water damage, material defects, etc.
As the seller, you are obligated to disclose issues that are known to you by filling out a form that is essentially a checklist of things that may be issues on the property.
If there was an issue in the past, but you have had the problem repaired or addressed so that it is no longer a problem, then that issue does not need to be disclosed. However, some sellers will choose to disclose the facts of such a situation anyway, and add in a comment to indicate how it was fixed.
- Seller disclosures concerning radon, lead, mold
The lead disclosure is only needed for houses older than 1978 because after that year, lead paint was not allowed.
Any issues with mold or radon must be disclosed if you know of them.
- Contract for property purchase (that a buyer and the seller both sign)
This is the document that the seller will use to sign off on an offer on the house. The offer document comes in signed by the buyer but it is not a contract until the seller also signs off.
It is common that the terms of the contract are negotiated back and forth between buyer and seller (via the real estate agents representing each side) to get to the point of agreement on all terms.
This is an extensive document and one that you will want to review in detail with your broker so that you fully understand all items in the contract and what they mean. You will also want to understand all the dates and timelines involved so that everything gets done in a timely fashion up to the closing.
- Land survey documents
These are official documents that the seller usually already has, and which should be made available to potential buyers.
- Home association rules and regulations (if applicable)
This is applicable only in cases where the property is part of a group of homes or units that all share something in common such as roof, common areas, or security gates, etc.
These documents also outline rules and restrctions that a new buyer will want to know about.
As the seller, you will need to make these documents available to potential buyers. It is important that the buyer knows about any restrictions early on in the process, so that they do not decide to back out of a deal due to getting surprised by some rule.
For example, something that might cause a buyer to not want a property could be a pet weight restriction or rules about the color you are allowed to paint the house.
- Contract between a seller and a real estate brokerage working on a seller’s behalf
This is a contact that you as the seller will sign when you engage the services of a real estate broker (a.k.a. agent) in Illinois to help you market and sell your house.
The contract is technically between you and the brokerage firm where your agent holds their license, and NOT actually between you and the agent.
Be sure you understand the implications of this by discussing this contract with the broker/agent you choose to work with.
Questions?
Remember – do not be shy about asking help from your real estate agent or broker to fully understand any paperwork you get, and the impacts of what you sign.
Contact us – we would love to help you understand more!