Lake Forest Real Estate Closing Attorney

Illinois does not require every buyer or seller to hire a closing attorney, but the Illinois Supreme Court has drawn a line between what a real estate broker may do and legal work. In Chicago Bar Ass'n v. Quinlan & Tyson, Inc., 34 Ill. 2d 116 (1966), the Court allowed brokers to insert simple factual information into customary offer and contract forms, but treated preparing deeds and other title instruments for others, and advising on their legal effect, as legal work. In Lake Forest, the Multi-Board Residential Real Estate Contract 8.0 also gives each party's attorney a five-business-day review period after acceptance to approve, disapprove, or propose modifications. The practical consequence is that a party who does not retain counsel risks allowing the attorney-review period to expire without exercising the rights provided by paragraph 13 and may lack independent legal advice concerning the contract, title commitment, and closing documents.

Paragraph 13 of the Multi-Board Residential Real Estate Contract 8.0 gives each party's attorney five business days after the Date of Acceptance to approve the contract, disapprove it (but not solely because of the purchase price), or propose modifications other than the purchase price. Proposed modifications under paragraph 13(c) are treated as counteroffers. If the parties do not reach written agreement on those modifications within ten business days after the Date of Acceptance, either party may terminate by notice; the contract does not automatically expire on day ten. Proposals specifically referencing paragraph 13(d) are not counteroffers and do not create a termination right merely because agreement on those proposals is not reached. If no timely notice of disapproval or proposed modification is served, attorney review is waived and the contract remains in effect. Attorney review is a contractual provision, not a statutory review period; calculate its deadline using the contract's Date of Acceptance, Business Day, and Notice provisions, together with any agreed amendments or extensions.

Three transfer taxes can apply. The Illinois State tax is $0.50 per $500 of taxable value, or fraction thereof, under 35 ILCS 200/31-10, and the Lake County tax is $0.25 per $500, or fraction thereof; under paragraph 18 of the Multi-Board Residential Real Estate Contract 8.0, the seller pays those stamps unless local ordinance designates otherwise. Lake Forest also imposes a municipal transfer tax. City fee schedules state a rate of $4 per $1,000 of value under Lake Forest Code Section 39.155(b), and the city's financial reports describe the tax as levied on the buyer. Under paragraph 19(a), a municipal tax is paid by the party the ordinance designates unless the parties agree otherwise. Because a county list has described the payer differently, confirm the operative ordinance and allocation with the City and address it during attorney review.

Illinois property taxes are generally billed and paid in the year after the tax year, which is commonly described as payment in arrears. As a result, the seller usually credits the buyer at closing for the seller's share of taxes that will be billed later. Under paragraph 12 of the Multi-Board Residential Real Estate Contract 8.0, prorations run through and including the closing date, and general real estate taxes are prorated using a negotiated percentage of the most recent ascertainable full-year tax bill. The percentage is a blank the parties complete; no single percentage applies to every closing. Ordinary tax prorations are final at closing unless paragraph 12(b) applies or the parties agree otherwise in writing. The practical consequence is that the proration percentage, and any exemption or reassessment issue, should be addressed during attorney review rather than at the closing table.

Lake Forest is in Lake County, and deeds are recorded with the Lake County Clerk's Recording Division, 18 North County Street, 6th Floor, Waukegan. The Lake County Clerk and Recorder of Deeds offices consolidated effective December 1, 2022, and recording services are now provided through the County Clerk's Recording Division. Electronic recording is available, and the title company should confirm the submission method and anticipated recording timing. For Lake Forest property, Lake County requires the municipal transfer stamp or a signed exemption certificate before it will record the deed electronically, together with the applicable transfer declaration or exemption documentation and other recording requirements. The practical consequence is that the stamp should be obtained before the closing date, because a missing stamp can delay recording after the parties have signed.

Sellers of estate and trust-held property should assemble the deed, any trust agreement or certification of trust, letters of office if the property is being sold from a probate estate, the most recent survey, and information about easements, shared driveways, or recorded covenants. The title company will list its requirements in the commitment, which commonly include proof of the trustee's or executor's authority and payoff of any mortgage or line of credit. Paragraph 20 of the Multi-Board Residential Real Estate Contract 8.0 requires delivery of the title commitment sufficiently in advance of closing and addresses unpermitted title exceptions and unacceptable survey matters. Those matters should be identified promptly and addressed before closing under the contract and any agreed amendments. Gathering the required documents and arranging applicable municipal steps early can reduce the risk of closing-week delays.