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Do you need a real estate attorney?
The simple answer is No. In Illinois, there is no requirement that you have a real estate attorney to represent you in the purchase or sale of real estate. Although everyone wants to save money, the small investment of retaining an attorney to handle your transaction can prevent problems that may occur, saving you thousands of dollars in the long run. .
Typically, fees range from $500-$1,200 per real estate transaction, which is about 10% of what a realtor earns in a commission to sell you a property. It is important that you get a good deal with attorney fees but be weary of attorneys who charge $100-300 for a closing. A typical residential real estate transaction involves about 3-5 hours before closing and about 2 hours at closing-sometimes more depending on various issues that may arise. An attorney whose fees are suspiciously low may not be thoroughly and competently representing your interest to the best of his/her ability.
What does a real estate attorney do?
A real estate attorneys' objective is to protect their clients. This protection is designed around a preventive approach.
•· Step One - review your real estate purchase contract. (it is important to give the contract to your attorney immediately after it is signed by the buyer and seller)
Most contracts are drafted quickly and the client's main objective is the purchase price. However, there are many provisions and contingencies in standard real estate contracts that most clients are unaware of or tend to overlook.
•· Step Two: Attorney will discuss important contingencies and obligation the buyer and seller will have to perform under the contract.
•· Step Three: Attorney will make necessary modifications to the contract to protect your best interest in the transaction. The attorney will negotiate, with the other party, and draft modifications to the contract. The Attorney will also review the inspection report and negotiate the resolution of inspection issues. Step Four: Attorney will review the title and other documents for the property and determine if there are any liens or other items that may affect the future ownership of the property. The goal is to ensure you know exactly what you are purchasing or selling, so there are no surprises later on.
•· Step Five: Attorney will represent you at closing and review with you the financial details in purchasing the property, taxes, fees, etc as well as review your mortgage papers.
What happens if a conflict occurs?
There are many conflicts that may arise in a typical real estate transaction. There may be liens, violations, and contract drafting issues. An attorney will know how to best handle the transaction on a legal level and prevent additional conflicts from occurring, which will minimizing the likelihood of litigation,
Landlord / Tenant
Evictions
Do you need to evict your tenant?
Eviction, or Forcible Entry and Detainer, is a legal procedure to remove a tenant from your property. The laws in Illinois is designed to protect tenants from wrongful evictions. However, if you have a good reason (i.e. non-payment of rent) then a landlord must follow the legal procedures to remove that tenant. If a landlord uses a self-help eviction, then the landlord may be at fault for wrongful eviction...no matter what your lease states.
How do you evict your tenant?
Step 1: provide your tenant with proper notice. Proper notice must clearly specify the reason why the tenant is in default of his tenancy and provide adequate time to fix the default. Most laws provide that a minimum of 5-days notice must be given.
Step 2: Delivery of the notice. Notice may be delivered in one of two ways: personal delivery or by certified mail with return receipt. We highly recommend the latter as you will have a independent party confirming delivery of the notice.
Step 3: File a formal complaint. The complaint must be filed either in the county the property is located or where the defendant resides. There are two types of complaint: An action for possession and an action for rent damages Both can be combined into one complaint. A typical eviction matter can be resolved in 1 or 2 court appearances. However, if there is a legitimate dispute, then the case may last much longer.
Lease Drafting and Review
Madison Group works closely with many real estate management and investment groups in both residential and commercial leasing. We are experienced in drafting and reviewing a wide variety of leases involving retail, warehouse, restaurant, industrial, office and many other lease structures. Though most residential leases are controlled by city and state law, commercial leases are more flexible and drafted differently. Many leases are over 20 pages filled with long provisions with many hidden fees or expectations. We recommend that you consult with an experienced attorney to review and discuss potential lease terms and conditions to better understand the situation and what is expected.
1031 Exchange - Tax Deferred Exchange
There are many benefits to tax deferred exchanges. There are tax and non-tax benefits to tax deferred exchanges. Some non-tax benefits include reposition assets, change type of property, and improvement cash flow.
Exchanges provide investors with one of the best methods of preserving value for their investment. An Investor can defer capital gain taxes that would otherwise be incurred on the same of investment property.
How to qualify:
•1. Relinquished property and replacement property must be a qualified, "like-kind" property.
•2. Transaction must be structured as an exchange.
•3. A "Qualified Intermediary" must be used.
The process:
•1. A Seller (exchanger) sings a contract to sell a property to a buyer
•2. Qualified Intermediary and the Seller enter into an exchange agreement.
•3. Funds from the sold property are transferred to the Qualified Intermediary
•4. The Seller must identify potential new properties within 45 days.
•5. The Seller has maximum of 180 days to close on a new property.
•6. The Qualified Intermediary then transfers funds it is holding to the Seller of the new property at closing.
Type of Property:
•· The properties must of "like kind" meaning that they have been and will be held for productive use in the investor's trade or business or for investment
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Real Estate FAQ
