Real Estate Attorney for Chicago and the Southwest Suburbs

Our article on what a real estate attorney does in Illinois goes step by step. The five kinds of work below each have a page of their own.

Buying a home: from accepted offer to closing

A buyer's timeline in Cook County runs from the Date of Acceptance through attorney review, inspection, the mortgage contingency, title and survey review, the walk-through and closing. The first two steps overlap and move fast: under the Multi-Board Residential Real Estate Contract 8.0, attorney review (paragraph 13) and the inspection notice (paragraph 15) each run five business days from acceptance.

Our buyer's real estate attorney page walks through each step, including what repairs can be requested, how the Closing Disclosure works and what a buyer pays in Chicago transfer tax. If the property is a condominium, we also review the association's declaration, budget, reserves and pending litigation under section 22.1 of the Illinois Condominium Property Act (765 ILCS 605/22.1) before the review period ends.

Selling a home: deed, disclosures, payoff and the closing package

The seller's attorney carries most of the paperwork in an Illinois closing. Before the contract is signed, the seller must deliver the Residential Real Property Disclosure Report (765 ILCS 77/20), the Illinois radon disclosure (420 ILCS 46/10) and, for a home built before 1978, the federal lead-based paint disclosure (42 U.S.C. 4852d). After acceptance we:

• respond to the buyer's attorney review letter and inspection requests, and keep the ten-business-day modification clock in view;
• order the title commitment with extended coverage and the plat of survey the contract requires (paragraphs 20 and 21; no survey for a condominium);
• order the mortgage payoff letter and any association paid-assessment letter;
• prepare the deed, bill of sale, affidavit of title, ALTA statement and the state, county and municipal transfer declarations through the Illinois Department of Revenue's MyDec system; and
• obtain the municipal certificates. In Chicago that means a Full Payment Certificate for water and sewer charges (Chicago Municipal Code 11-12-530) and, for a residential building of five or fewer units other than a condominium, a Certificate of Zoning Compliance. Several southwest suburbs have their own transfer stamps or pre-closing inspections. Paragraph 19 of the Multi-Board contract assigns those costs to whichever party the ordinance names, so we check the village ordinance early.

Transfer taxes are the seller's largest closing cost after the commission. The state, county and Chicago rates, and who pays each, are in the rules list further down this page.

Real estate taxes in Cook County are billed in arrears, so the seller gives the buyer a credit at closing for taxes not yet billed. Paragraph 12 of the Multi-Board contract prorates at a negotiated percentage of the most recent full-year bill; the percentage is one of the terms attorney review can change. If the assessment behind that bill looks wrong, our sister company, Cook County Tax Appeals LLC, reviews it; see our property tax appeal page.

Contract review and the attorney review period

The attorney review period is the one point in a residential deal where the terms can still change: the purchase price is off the table, but closing date, possession, credits, the tax proration percentage, personal property and the condominium document contingency are all fair game. Real estate contract review explains the five-business-day clock, the modification letter and what happens when the clock runs out.

We also review contracts that do not use the Multi-Board form: builder contracts for new construction, for-sale-by-owner contracts drafted by the other side, and commercial purchase agreements.

Deeds, transfer on death instruments and how you hold title

Not every transfer is a sale. We prepare and record deeds for transfers between spouses, into and out of revocable living trusts and land trusts, to an LLC, after a divorce, and to correct a name or a legal description. A deed in Cook County is recorded with the Cook County Clerk's Recordings Division for a flat $107, and every conveyance needs a MyDec transfer declaration even when it is exempt from tax.

The choice of deed matters. A warranty deed carries the three statutory covenants of title (765 ILCS 5/9); a quitclaim deed conveys only whatever interest the grantor has, with no warranty and no after-acquired title (765 ILCS 5/10). Our quitclaim deed guide covers the step-by-step process, the fees, the transfer-tax exemptions and the gift-tax consequences of adding a family member to title.

If the goal is to leave a home to a child without probate, a deed during life is usually the wrong tool. The Illinois Real Property Transfer on Death Instrument Act (755 ILCS 27) lets an owner record an instrument now that passes the property at death, keeps full control during life, and preserves the stepped-up basis the heir gets at death. Our transfer on death instrument guide compares the TODI with a living trust and joint tenancy. How a buyer takes title at closing (joint tenants, tenants by the entirety, tenants in common or in a trust) is a decision we make with you before the deed is drafted; whether the house should be in a trust is an estate planning question the same attorney answers. Our article on reviewing the title commitment and survey explains what to look for on Schedule B.

Commercial and investment property

Commercial purchases and sales in the southwest suburbs follow a different rhythm: a letter of intent, a negotiated purchase agreement rather than a form, a due diligence period for a Phase I environmental report, zoning, leases and estoppel certificates, and a closing that often involves an LLC on each side. We draft and negotiate those agreements and handle the closing. Our article on commercial purchase and sale agreements in Illinois walks through the provisions that matter.

Investors selling a rental or commercial building should read about the 1031 exchange before signing a listing agreement. The exchange has to be set up before the sale closes, the 45-day identification and 180-day deadlines are not extendable except by IRS disaster relief, and the attorney who represents you in the sale cannot act as your qualified intermediary.

1. Basis is set at closing and lives for decades

   The purchase price, the capitalized closing costs and the land-building allocation on a rental determine your depreciation and the gain you pay tax on when you sell. We record them correctly at the start instead of reconstructing them years later, and we weigh a deed now against a transfer on death instrument by the basis each gives the next owner (IRS Publication 551).

2. Transfer taxes, prorations and the next tax bill are one calculation

   Who pays the stamps, what percentage the taxes are prorated at, and whether the new owner must reapply for the homeowner exemption are decided in attorney review, and each one is a dollar figure on the Closing Disclosure.

3. One privileged engagement

   The tax analysis of a sale, a 1031 exchange or a transfer to a family member is done inside the attorney-client relationship rather than in a separate accounting engagement. See why one adviser for law and tax changes the advice.

• Attorney review

  Each side's attorney has five business days after the Date of Acceptance to approve, disapprove or propose changes to anything except the price; if proposals are not agreed within ten business days of acceptance, either side may terminate. Multi-Board Residential Real Estate Contract 8.0, paragraph 13

• Inspection notice

  The buyer's inspection requests are due within the same five business days and are limited to defects in the major components of the home. Multi-Board 8.0, paragraph 15

• Financing contingency

  The buyer must have written loan approval by 45 days after acceptance or five business days before closing, whichever is earlier. Multi-Board 8.0, paragraph 8

• Seller disclosures

  The Residential Real Property Disclosure Report, the radon disclosure and, for a pre-1978 home, the federal lead-based paint disclosure are delivered before the contract is signed. 765 ILCS 77/20; 420 ILCS 46/10; 42 U.S.C. 4852d

• Condominium resale

  The seller must obtain the declaration, budget, reserves, litigation and insurance information from the board, which has ten business days to furnish it. 765 ILCS 605/22.1

• State and county transfer tax

  The State charges $0.50 per $500 of price and Cook County $0.25 per $500, both customarily paid by the seller; a transfer for under $100 and a corrective deed are exempt. 35 ILCS 200/31-10; 31-45; 55 ILCS 5/5-1031; Cook County Code ch. 74, art. III

• Chicago transfer tax

  $5.25 per $500 of price, split $3.75 to the buyer and $1.50 (the CTA portion) to the seller. Chicago Municipal Code, chapter 3-33

• Transfer declaration

  A deed presented for recording carries a transfer declaration signed by a party on each side or their attorneys unless the transfer is exempt under section 31-45; the Cook County Clerk requires a MyDec declaration for every conveyance, taxable or exempt. 35 ILCS 200/31-25; 31-45; Cook County Clerk recording requirements

• Recording

  The Cook County Clerk records a deed or mortgage for a flat $107 under the fee schedule effective April 1, 2024. Cook County Clerk recording fee schedule

• Warranty and quitclaim deeds

  A warranty deed carries three statutory covenants of title; a quitclaim deed conveys only what the grantor has, with no warranty. 765 ILCS 5/9; 5/10

• Transfer on death instrument

  An owner can record an instrument now that passes real estate at death outside probate; it needs two credible witnesses and a notary and must be recorded before death. 755 ILCS 27/40; 27/45

• Closing Disclosure

  The buyer must receive the lender's Closing Disclosure at least three business days before the loan is consummated. 12 CFR 1026.19(f)

Closings for Cook County property usually take place at a title company office in the suburbs or downtown. Will County and DuPage County closings follow the same contract form with county-specific recording and transfer rules. Where a dispute reaches court, suburban Cook County matters are heard at the Bridgeview courthouse (Fifth Municipal District) or in Markham (Sixth), Chicago matters at the Daley Center, and Will County matters in Joliet.

Khatib Law LLC is in Palos Heights and serves the southwest suburbs of Cook County, including Palos Park, Palos Hills, Orland Park, Orland Hills, Tinley Park, Oak Lawn, Oak Forest, Frankfort, Mokena, Homer Glen, Lemont, Evergreen Park, Burbank, Bridgeview, Hickory Hills, Chicago Ridge, Worth, Alsip and Crestwood, as well as Chicago, especially the Southwest Side, and all of Cook County. We also handle real estate matters in Will County and DuPage County. Tinley Park and Orland Park closings are a regular part of the practice. That includes properties on the Cook-Will county line, where the recording office and transfer rules depend on which side of the line the parcel falls. Directions to the office are on the contact page.